NIBCO'S " BIG BANG”
A teaching circumstance, prepared by:
Jean V. Brownish, Ph. Deb. Associate Professor of Information Devices Kelley School of Organization Indiana School 801 T. Michigan St . Indianapolis, IN 46202-5151 Mobile phone: 317-274-4871 Email: [email protected] edu
Iris Vessey, Ph. G. Professor of Information Systems Kelley School of Business Indianapolis University 1309 E. 10th Street Bloomington, IN 47405-1701 Phone: 812-855-3485 Email: [email protected] edu
Victor of the Best Instructing Case Intercontinental Conference upon Information Devices, 2000
c) Brown and Vessey 2k
NIBCO'S " BIG BANG”
December 30, 1997 was your Go Live time at NIBCO INC., a privately held mid-sized manufacturer of valves and pipe fittings headquartered in Elkhart, Indianapolis. In 1996 NIBCO acquired more than three or more, 000 staff (called " associates" ) and total annual revenues of $461 mil. Although many with the consultants they'd interviewed may not endorse a large Bang way, the plan was going to convert to SAP R/3 at all ten plant life and the several new American distribution centers at the same time. The cost for the 15month project was predicted to be $17 million. One quarter of the provider's senior managers were specialized in the project, including a management triad that included an ex VP of Operations (Beutler), the Information Services director (Wilson), and a former quality management director (Davis). One of the major motorists of the whole thing was that Rex Martin stated ‘I need it done right now. ' That basically was the determining moment—because this forced us to look down these types of implementation lovers and inform them ‘…we're doing this Big Bang and we're going to get it done fast'. Jeff Beutler, Task Co-Lead, Business Process We took ownership: it was our job, not theirs. We applied the consultants for what all of us needed all of them for which was technology skills, knowledge transfer, and extra hands. Whilst gary Wilson, Project Co-Lead, Technology It was intense. It was hard on families, although nobody leave, nobody left…. Professionally We would say it had been unequivocally the highlight of my career. Jim Davis, Project Co-Lead, Change Supervision Company Qualifications NIBCO's journey to the Go Live date began about three years earlier, every time a significant strategic planning hard work took place. At the same time a cross-functional team was charged with reengineering you can actually supply sequence processes to higher meet the customers' requirements (see Timeline in Demonstrate 1). Among the key a conclusion from these endeavors is that the organization could not prosper using its current info systems. The firm's newest major investments in information technology have been made more than five years earlier. Those systems got evolved in a patchwork of legacy devices and reporting tools that can not speak to each other. After initial reveals with many consulting firms, top administration brought in the Boston Consulting Group (BCG) in August 95 to help the business develop a ideal information systems plan to meet up with its start up business objectives.
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Cross-functional groups charged with developing NIBCO's strategic plan and reengineering supply chain processes decided that business could not be successful with its current information systems. Gary Wilson hired because new mind of IS department. Boston Consulting Group conducted tactical IT organizing study. Recommended that NIBCO replace it is legacy devices with bundled enterprise system on client-server platform on the 3- to 5-year period of time Restructured corporation into cross-functional matrix organization. Scott Beutler, former VP of Operations–Residential Division, provided responsibility for people who do buiness system strategic planning, which includes selection of an ERP deal. Committee suggested purchase of SAP R/3 and " Big Bang” setup. Approved by Exec Leadership Crew and Panel of Owners. Contracts signed with SYSTEMS APPLICATIONS AND PRODUCTS for R/3 modules and IBM since implementation spouse. Wilson, Beutler, and Davis form triad leadership crew....