Nestle Erp Case Study Summary

Introduction:

Nestle, which is the largest Food &Beverage company in the world, have an estimated 8,500 brands, manufactures around 10,000 various products in nearly 500 factories in 83 countries and employs some 250,00 people. The company markets its products in 130 countries across the world, with annual revenue of more than £71 billion in 2007. Nestle is one of the Fortune 500 firms is implementing one type of ES such as Enterprise Resource Planning (ERP) systems to improve the execution of their business strategy and to improve integration with its IT strategy by offering the chance to re-engineer business processes, coordinate the systems of geographically dispersed locations, consolidate data, and empower users by giving them access

They should understand the ‘terms and conditions of sale’ of the new system which it can manage the system accordingly, and negotiate for extended after sales support. Operations Feasibility The current operating procedure will be subject to change while implementing an ES. Decision making it will be subject to change as the new ERP system which will implement de-facto standards in Nestle. Also, ES should support the process designs used by Nestle Scheduling Feasibility Nestle should priorities when it comes to scheduling the ERP system. There will be some departments which will go-live early than others and that might cause problems. So, this should be planned for and employees should be made aware of this.

Methodologies they used: The switch over process is critical in the implementation of Enterprise System. However, this might lead to the failure as the employee confidence in the new system will be go down so it will be necessary to run the legacy system in parallel with the ES for a while. Therefore, the company should plan in advance by giving training to the employees, and also advisable to run a pilot test in one of the non-critical departments of the

All functions are used by a process are switched over at the same time. ‘Critical Success Factor’ are used to evaluate which processes are given priority. Nestle which has many cross functional processes can effectively implement the ES using process oriented approach.

Managing Implementation: While implementing the ES, they need to focus on people as well as the technical aspects. The ERP system will compel the employees of Nestle to change their work culture by forcing them to collaborate with various departments, obtain new skill sets and takes on new responsibilities. This will lead to insecurity, hesitation and fear in some employees which will reflect as resistance to change.

Managing Change: It is one of the most crucial tasks that Nestle should engage in if it intends to successfully implement ERP system and continuing process required throughout ERP implementation. Before implementing the change management, the company should check its communication strategy and perform an impact analysis and a skill analysis.

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