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The following analysis is done on the effectiveness of the processes NIBCO undertook in choosing SAP as its ERP system (Enterprise Resource Planning). SAP is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. NIBCO Inc., a mid-sized manufacturer of valves and pipe fittings headquartered at Elkhart, Indiana was planning to undergo a technological change in its existing legacy systems and wanted replace them with the common, integrated systems for finance, materials management, production and sales/distribution (Michelle. 2013). Boston Consulting Group (BCG) was consulted in August 1995 to help NIBCO to develop strategic information systems plan to meet its new business objectives. SAP AG was known for its software in enterprise resource planning and its R/3 was a success and thus, it was the choice which was recommended by BCG to NIBCO.
NIBCO’s plan of the Big Bang approach was not supported by many consultants, though it went ahead with it and the plan was to convert to SAP R/3 at all ten plants and the four new North American distribution centres at the same time.
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