Implementing SAP in Nestle: Challenges and Success Metrics

Implementing SAP in Nestle
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Executive summary
This report critically investigates the Nestle case of implementing SAP system called GLOBE
across all of its affiliations around the globe. It describes Nestle and analyzes the problem and
opportunity it faced in implementing GLOBE, the nature of SAP and the process by which it was
selected and implemented, explanation and analysis of the difficulties Nestle faced in adopting
the system and assessment of the success of SAP adoption and its metrics.

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Table of Contents
Introduction......................................................................................................................................4
First: Description of Nestle and the problems and opportunities it faced.......................................4
Second: The nature of SAP and the process by which it was selected and implemented...............5
Third: Explanation and analysis of the difficulties Nestle faced in adopting the system................6
Fourth: Assessment of the success of SAP adoption and its success metrics.................................7
Conclusions......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Nestlé is the largest food company across the globe that combines global strategies and local
business processes. It depends mainly on implementing its business on trust and innovation. It
focuses on capturing opportunities to be able to offer high-quality nutrition that adds value to its
products (Nestle 2019). ERP systems have proved their efficiency in business organizations;
they are implemented to automate business processes and integrate diverse resources,
information, and functions within one application. Data is stored in one database that eliminated
repetition. The system enables fast response to management needs in taking the right decisions,
fulfilling the client needs, increasing product quality, maintaining efficiency in using the
organizational resources and enhancing the overall organizational performance (Al-Sabri & Al-
Saleem, 2013).
This following section critically analyses Nestle implementation of SAP system called GLOBE.
It starts with a description of Nestle and the problem and opportunity it faced in implementing
GLOBE, the nature of SAP and the process by which it was selected and implemented,
explanation and analysis of the difficulties Nestle faced in adopting the system and assessment of
the success of SAP adoption and its success metrics.
First: Description of Nestle and the problems and opportunities it faced
Nestlé is the largest food company worldwide; it manufactures nutrition, wellness and health
products. Its products are traded and consumed in 194 countries and it manufactures more than 6
thousand products in 86 countries in North and South America, Europe and Africa, and the
Middle East. The zones are divided into markets that offer the goods according to the customer
segmentation’ needs. The organizational structure of the company used to be decentralized that