(Nibco’s “Big Bang”: an Sap)

Case Write-up (NIBCO’s “Big Bang”: An SAP)

FALL 2013

Date: Nov. 03, 2013

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INTRODUCTION (5 Points)

NIBCO Inc. is a privately held midsized company manufacturing valves, cast fittings, Plumbing, heating valves, copper fittings, hangers, and struts. It was established in 1904 with its headquarters in Elkhart, Indiana. NIBCO had more than 3000 employees in 1996 and sales revenues of more than $460 million. It was on the way to implement SAP R/3 at all of its ten plants and four new North American distribution centers at the same time. To achieve this NIBCO had to modify its existing legacy system for business-led process improvement and integration initiatives.

NIBCO’s products were used in many industries including the residential and commercial construction, industrial, and irrigation markets. Because of the low growth opportunities within its commodity markets, there was a strong competition in retaining the existing customers and increasing market share. There was also a channel conflict in increasing sales of the existing products; other growth opportunities include acquisition of new commodity customers to provide value-added services and well-managed acquisition of related manufacturers.

In 1995, the firm developed a long-range strategic plan that called for radical change for its improvement and growth. NIBCO was the first midsized manufacturers in North America to plan and execute a Big Bang implementation with SAP R/3 modules by mid-1996. The company wanted to replace it Legacy systems at its 10 plants and 4 new consolidated distribution hubs. It also wanted to improve the customer satisfaction, reduce costs, and increase revenues after the Go-live event which was declared to be held by December 30, 1997.

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ISSUES/PROBLEMS (20 Points)*

There were many issues with the company as described below:

1. NIBCO had a poor Information Systems. The...