Analysis of Nibcos Big Bang Case Study Case Study

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NIBCOs Big Bang

Reasons behind NIBCO's Decision to Implement an ERP System

One of the main reasons behind the decision by NIBCO to execute an ERP system that spun across the whole organization was the need to incorporate all the operations of the company over an assimilated, single policy. This was to ensure that issues linked to matching and managing information as well as data from individual and separate systems could be disregarded. And, this in turn, would ensure that the organization could operate and function in a more efficient manner.

The prevailing systems of the company were outdated, hence not satisfactory or suitable enough to sustain the increasing needs of the organization. It was imperative for the company to strengthen the whole of its supply chain process so as to meet and sustain the needs of the consumers. As a result, it was important to incorporate a platform that was not only integrated, but also centralized.

In addition, the decision made by the organization to shift to a cross-functional, matrix structure as a way of backing its functions and procedures by executing new ERP software, was considered an effective action. This is simply because the whole process of re-engineering was essential and key to getting rid of the outdated and outmoded processes.

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And, espouse the best processes in the organization for offering support to the newfangled initiative (Brown and Vessey, 2001).

Pros and Cons of the Approach to Implementation

There are a good number of advantages and disadvantages connected to the "Big Bang" condition. One of the pros of this approach encompasses the reduced duration or time period of the project. This is beneficial because a shortened amount of time necessitates fewer resources, which are influenced by time. For instance, a shorter period implies that there would be need for fewer personnel to monitor the project. As a result, the organization was capable of decreasing costs related to project management and execution of the ERP system. Another benefit of the approach encompasses the decreased interruption of the business flow and operation. It is imperative to note that any information technology execution can interrupt the operations of a business. However, since this approach brought about a shorter time period, it implied less interruption of the operations.

One of the drawbacks of this approach is the increased level of risk, and the accompanying probable impacts. It is imperative to note that….....

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