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Nibco's Erp Implementation

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Nibco's Erp Implementation
A Miracle? – Nibco’s Successful ERP Implementation

Table of Contents

1. Executive Summary 4

2. Statement of Issues 4

2.1 The Background 4 2.2 The Need for Integration – Key Drivers for the Solution Change 5 2.3 Organizational Risks during the ERP Implementation 6 2.3.1 On Budget 6 2.3.2 The functionality must work, there was no other alternative 6 2.3.3 The Implementation had to be on time 6 2.3.4 Business Process Change 7 2.3.5 Lack of Related Knowledge 7 2.4 Technical Issues during the ERP Implementation 7 2.4.1 Delay of the Consolidation of Distribution Centers 7 2.4.2 Data Loading Difficulties 8

3. Data Analysis – the Outcome 8

3.1 Short Term Results 8 3.2 Long Tem Results 9

4. Nibco’s Solution Analysis 12

4.1 Sustained Management Support 12 4.2 Accurate Vision and Planning 12 4.3 Appropriate Usage of Consultants 13 4.4 Focus on Change Management 13

5. Nibco’s Change Management Approach 14

5.1 The Application of Kotter’s Change Management Process to Nibco 14 5.1.1 Establishing a Sense of Urgency 14 5.1.2 Forming a Powerful Guiding Coalition 14 5.1.3 Creating a Vision 15 5.1.4 Communicating the Vision 15 5.1.5 Empowering Others to Act on the Vision 15 5.1.6 Planning for and Creating Short-Term Wins 16 5.1.7 Consolidating Improvement and Producing Still More Change 16 5.1.8 Institutionalizing New Approaches 16 5.2 How to Deal with Resistance to Change 17 5.2.1 Administrator – Enhance communication, Reduce misunderstanding 17 5.2.2 Staff People – Eliminating Self-preoccupation 18 5.2.3 Foreman – Specifically Selected; Identify Changes from User’s Point of View 18 5.2.4 Operating People – Open Communication and Incentives 18 5.3 Study of Dialectics of Change 19 5.3.1 Overcoming Configuration Barrier 19 5.3.2 Overcoming



References: Collado, J. E. (2000). Towards the unification of critical success factos for erp implmentations. Annual Business Information Technology 2000 Conference. IBM, (n.d.). Nibco speeds information flow and boosts customer service with sap. Retrieved May. 08, 2005, from IBM Case Study-SAP Web site: http://www-306.ibm.com/software/success/cssdb.nsf/CS/MFRH-5TLLPJ?OpenDocument&Site=. Kotter, J. P. (1995). Leading change: why transformation efforts fail. Harvard Business Review, 59-67. Lawrence, P. R. (1969). How to deal with resistance to change. Harvard Business Review, 4-12. Nah, F. F., Lau, J. L. & Kuang, J. (2001). Critical factors for successful implementation of enterprise systems. Business Process Management Journal, 7(3), 285. Nibco, (n.d.). About nibco.. Retrieved May. 08, 2005, from Nibco.com About Nibco Web site: http://www.nibco.com/cms.do?id=4. Nibco, (n.d.). Nibco Executive Biographies. Retrieved May. 08, 2005, from Nibco.com About Nibco Web site: http://www.nibco.com/cms.do?id=7. Nibco erp implementation case study. (n.d.). Retrieved May. 08, 2005, from Enterprise Systems Web site: http://www.dis.unimelb.edu.au/staff/graeme/615-657enterprisesystems/GS%20NIBCO.ppt. Robey, D., Ross, J. W., & Boudreau M. (2000, Jun 13). Learning to iimplement enterprise systems: an exploratory study of the dialectics of change. , Retrieved May 08, 2005, from http://www.cis.gsu.edu/~drobey/Cis8160/jmisv18.PDF. Stedman, C. (1998, mar 16). Short-term sacrifices: big-bang r/3 rollout forced compromises. ComputerWorld, Retrieved May 09, 2005, from http://www.computerworld.com/news/1998/story/0,11280,30212,00.html.

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