Nestle Erp Case Study
Case Study: Nestle ERP implementation
Background
Nestle is a multinational company based on Switzerland, was establish long ago in 1866 by Henri nestle which supplies different kinds of food products. Over the period nestle has grown as one of the big company. Nestle USA is a part of nestle company, having seven business divisions: beverage, confection and snacks, food service, foreign trade, nutrition, prepared food and sales. Some of Its popular products in USA were: Alpo, Nescafe, Tasters choice. Its annual revenue was 8.1 billion and 16000 employees were working. In 1992 enterprise resource planning (ERP) system provider SAP introduced the R3 system of client server architecture and Nestle USA has decided to implement R3 ERP system in 1997 and given a project name BEST ( business excellence through system technology). It had estimated cost of $210 million with total IT staff of 250 including outside consultant and estimated time to complete was 2003.To implement the ERP there are two choices; either you change your business process or customize the ERP system according to your business process. The CIO of nestle USA Jeri Dunn has consulted with the other key stakeholders from finance, supply chain, distribution and purchasing and came up with the idea of changing the Nestles business process to fit in with the ERP system. They assume that the new system would create saving through group buying and facilitate data sharing between subsidiaries.
Implementation approach and its impacts
Nestle was implementing a new system but they didn’t include the real user in stakeholder team who will have to face the change in business process. Those were the one working with the system but BEST project has ignored them. In other words, they failed to address the change management. They didn’t communicate with them to set expectation and prepare plan for the implementation. As a result Nestle faced a lot of peoples issue. Employee started to resist new system and no one wanted
Background
Nestle is a multinational company based on Switzerland, was establish long ago in 1866 by Henri nestle which supplies different kinds of food products. Over the period nestle has grown as one of the big company. Nestle USA is a part of nestle company, having seven business divisions: beverage, confection and snacks, food service, foreign trade, nutrition, prepared food and sales. Some of Its popular products in USA were: Alpo, Nescafe, Tasters choice. Its annual revenue was 8.1 billion and 16000 employees were working. In 1992 enterprise resource planning (ERP) system provider SAP introduced the R3 system of client server architecture and Nestle USA has decided to implement R3 ERP system in 1997 and given a project name BEST ( business excellence through system technology). It had estimated cost of $210 million with total IT staff of 250 including outside consultant and estimated time to complete was 2003.To implement the ERP there are two choices; either you change your business process or customize the ERP system according to your business process. The CIO of nestle USA Jeri Dunn has consulted with the other key stakeholders from finance, supply chain, distribution and purchasing and came up with the idea of changing the Nestles business process to fit in with the ERP system. They assume that the new system would create saving through group buying and facilitate data sharing between subsidiaries.
Implementation approach and its impacts
Nestle was implementing a new system but they didn’t include the real user in stakeholder team who will have to face the change in business process. Those were the one working with the system but BEST project has ignored them. In other words, they failed to address the change management. They didn’t communicate with them to set expectation and prepare plan for the implementation. As a result Nestle faced a lot of peoples issue. Employee started to resist new system and no one wanted