Nestle's ERP Implementation: Problems and Successes

Running head: ENTERPRISE SYSTEM
Enterprise System
Name of the Student
Name of the University
Author Note

1ENTERPRISE SYSTEM
Executive Summary
The report aims for evaluating the problem faced by the Nestle when they intended to
implemented the ERP system. The problem that was occurred due to the incorporation of new
system in the business functions lead to many problem. SAP R/3 is utilized by Nestlé in 1992
and the main aim behind implementation of the ERP system is to use common business
processes, organizational structures and systems for all the autonomous divisions present in the
USA. The raised difficulties are the problem of adaptation power of the staff, employee turnover
and morale sank rate become 77%. It is found that in redesigning the process, it is better to
mould the project deadline of the business operation according to the competency of the
software. However, the successful areas are- adoption of the enterprise system effectively, all the
transactions of the company can be processed through this system and identification of the
financial resource required for the project. The common databases and business processes not
only makes the process of demand forecasting faster but also presented an accurate update
regarding the orders purchased and demanded by the users. Lastly the identified successes metric
are employee engagement, saving financial resources, conversion rate and technical failures.

2ENTERPRISE SYSTEM
Table of Contents
1.0 Introduction......................................................................................................................................3
2.0 Discussion........................................................................................................................................4
2.1 Problem and opportunity Nestle faced........................................................................................4
2.2 Nature of the enterprise system and process of selection and implementation...........................5
2.3 Difficulties Nestle faced in adopting the system.........................................................................7
2.4 Successful adoption of the enterprise system and success metrics used.....................................8
Successful adoption of the enterprise system................................................................................8
Success metric used by the Nestle.................................................................................................9
3.0 Conclusion.....................................................................................................................................10
4.0 Reference List................................................................................................................................12

3ENTERPRISE SYSTEM
1.0 Introduction
The case study selected is about Nestle regarding the SAP implementation in order to
align all the business function through technology for better organizational outcome. SAP refers
to Systems, Applications and Products for the purpose of data processing (Monk and Wagner
2012). SAP developed many version of their enterprise resource planning (ERP) system and the
first is known as SAP R1, which is launched in 1972, where R refers to ‘real-time’ data
processing. SAP R/2 was released in 1979 and it s a dialogue oriented data processing system.
Leon (2014) stated that the first version of SAP is developed following the one-tier structure
comprises of three layers presentation, application and data in one server; whereas, the second
version was designed as a two layer architecture in which the same three layers were present in
one server. The first serve comprised of presentation and the second server consists of
application and database. The recent version of SAP is R/3, which is three-layer architecture and
have separate server for each layer.
SAP R/3 is utilized by Nestlé in 1992 and the main aim behind implementation of the
ERP system is to use common business processes, organizational structures and systems for all
the autonomous divisions present in the USA. However this implementation of a new system
also has some associated problem which will be illustrated in the assessment. The problem and
opportunity Nestlé faced due to this incorporation of new system along with the nature of the
enterprise system will also be demonstrated. The difficulty faced by the concerned organization
while adopting the system followed by suggestions for adopting enterprise system and success
metrics will also be demonstrated.