NIBCOs decision to implement an ERP system

NIBCOs decision to implement an ERP system
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Discuss reasons behind NIBCO's decision to implement an ERP system
The case study on NIBCO identifies the reasons why an ERP system was implemented as follows: Firstly, the firm realized that it could not prosper with its current information systems (Brown, DeHayes, Hoffer, Martin, &Perkins, 2012). This realization came about during NIBCO's strategic planning endeavours that had taken place three years earlier. The problem with the firm's information systems (IS) was that they were not synchronized hence they could not communicate with each other. The Boston Consulting Group (BCG) that was hired by NIBCO recommended that the firm's current legacy system be replaced with common integrated systems (Brown et al., 2012).
Secondly, management was concerned that the company was information poor and that the firm would not be able to grow and become global without integrated information capability. The CEO, chairman and President of the firm Rex Martin therefore wanted changes to be made immediately.
Thirdly, it was established that there was widespread dissatisfaction with the current legacy system that had many errors because of lack of communication and that the data generated from the legacy system was unreliable due to multiple points of access and multiple databases. This left systems development staff using a lot of their time trying to handle problems with the systems and the systems would blow up regularly (Brown et al., 2012).
Describe the pros and cons of the approach to implementation decided upon by NIBCO.
Pros of big bang approach:
One of the pros of the big bang approach was that because implementation of the change process would be done quickly and within short span of time, there was less risk of people in the firm getting tired of the process and abandoning it altogether. The NIBCO case study points out that there was fear that a 3-5 year implementation time line as suggested by BCG could leave people saying “enough is enough without executing the entire plan” (Brown et al., 2012).
Another advantage and incentive to using the big bang approach was because senior managers had made observations of companies that had used a slower approach and had noted that the companies were not among themost successful.
The big bang approach was also convenient for the company as there were business initiatives that the company had that demanded a quick implementation programme therefore the approach was better suited.
Cons of big bang approach:
One of the major cons of the approach was that it was a high risk approach with the chances of failure being quite high. Th...