NIBCO implemented ERP system from SAP because they would have many benefits from the program. ERP systems have been the most reliable and trusted tools that can bring the information various departments. The SAP ERP system serves as a central database that is used for information feeding for the various modules that make the ERP system. The modules operate in a common platform. With the use of ERP systems, the data will have one uniform standard and format. The ERP system, in this case, provide data which are consistent and of high integrity. One direct benefit if this feature is the fact that redundancy of data is eliminated and thus rationalization is achieved which reduces the cost of the operations within organization (Brown, DeHayesDavid, Hoffer, Martin, & Perkins, 2012).
Another benefit of an ERP system is the fact that communication is improved in the sense that the data modules which are spread across the organization are integrated to provide better communication and sharing of data.
Enterprise Resource Planning also provide companies corporate functions which are tightly integrated thus providing decisions which are already optimized for the access of accurate information; this has made ERP systems to be the essential part in the management functions of large companies in the world. There have been increased revenues with the use of ERP systems (Holland & Light, 1999).
Approach for implementing SAP ERP
The approach that the company used in implementing SAP ERP is implementing all in one day. This approach posed many challenges for company. One disadvantage of the approach is that if there is something bad which happens in the process, it will be hard to make the necessary corrections. The approach that is easy when correcting the mistakes that have been done before is gradual implementation. Another advantage of the approach that NIBCO used in the implementation of the SAP ERP is that there will be immediate use of the project because of the fast [pace of implementation. The approach that NIBCO used in the implementation has advantages and disadvantages (Hong & Kim, 2002).
One of the advantages of the process is that there will be identification of the bugs without taking long in using the program. In gradual implementation, a bug can be identified at the end of the implementation stages. This will take time before the bug is identified. With this approach that NIBCO undertook on the implementation of SAP ERP, the identification of the bugs is immediate.
Summary and recommendation
The company is a mid-sized company that deals with manufacturing of pipes and fittings. The management of the project was successful because of the planning process, cooperation with the implementers, the management of personnel and cooperation that are seen with the application providers. The company has implemented SAP ERP under the consulting group of Boston Consulting Group. The success that NIBCO has gained in the management of SAP ERP is through good management and the understanding of the project with which they were undertaking. One recommendation that can be given to the company is that there should be analysis of the business processes so that future applications will be understood and if there are any business processes that should be integrated to the ERP system, and then it will be undertaken on time. The departments should understand the flow of business processes in their businesses so that they will make the necessary recommendations of the changes that could be needed in the entire process (Brown et al., 2012).
References
Brown, C., DeHayesDavid, Hoffer, J., Martin, E., & Perkins, W. (2012). Managing information technology (7th ed., pp. 468–483). Upper Saddle River, New Jersey: Prentice Hall.
Holland, C., & Light, B. (1999). A critical success factors model for ERP implementation. Software, IEEE. Retrieved from http://ieeexplore.ieee.org/xpls/abs_all.jsp?arnumber=765784
Hong, K., & Kim, Y. (2002). The critical success factors for ERP implementation: an organizational fit perspective. Information & Management. Retrieved from http://www.sciencedirect.com/science/article/pii/S0378720601001343
