BISY2005/ISY2005: Nestle's Enterprise System Implementation Report

This report provides an in-depth analysis of Nestle's enterprise system implementation. It begins with an introduction to Nestle, its business operations, and the rationale behind adopting an Enterprise Resource Planning (ERP) system. The report delves into the challenges faced by Nestle during the implementation of the ERP system, including technological complexities, employee training, and change management. It highlights the presence of enterprise systems within Nestle, focusing on how the SAP R/3 ERP software integrates various departments and streamlines information flow. The report also examines the impact of change management on the system's performance, emphasizing its crucial role in the successful adoption and optimization of the ERP system. The conclusion underscores the importance of strategic change management for enhancing Nestle's overall performance and productivity.

Nestlé's Enterprise System

Contents
 Introduction
 About the organization
 Business problem
 Presence of Enterprise System in Nestle
 Challenges faced by the implementation of the system
 Effect of change management on ES performance
 Conclusion

Introduction
 Global presence of Nestle is making the
Company reach to its highest success
 The implementation of the ERP system in the
company have been useful yet challenging
(Mitra and Neale 2014).
 The further presentation is bout the Nestle
Company in brief
 The problem faced by the company
 The already existing enterprise system
 Challenges faced in the implementation
 The effect that change management

About the organization
 Nestle is one of the pioneer in the beverage
production market
 It has a range of products starting producing coffee,
chocolates, Maggie and may fast food products
(Ramesh 2018).
 The overall turnover of the company by 2016 is about
90 billion
 The company was founded by Henri Nestle in 1866
 The aim is to shape the world and make a better place
for the future generation.

Contd…
 The Company is interested in the innovation
through researches
 The R&D department deals with new innovation,
ways and products that are inclusion with
newest technologies and approaches
 By the end of 2030 the company is aiming to for
Sustainable Development Goals and make a
place in UN

Business problem
 The inclusion of the local organization for conducting
activities in the company at several places
 Involvement of several information technological
devices and with that the cost on those devices added
to the annual cost on the company (Hofmann, Strewe
and Bosia 2018).
 The management of the available resources were a
point of conflict in the company.
 The manual system of managing all the operation are
a huge issues in the company

Contd..
 Nestle also thought of implementing and ERP
system and the choices were differing for
several times.
 The people operating the system has minimal
knowledge about the system and the ways to
operate that.
 The shift with the introduction of the
technologies and the transformation occurring
in the market was challenging

Presence of Enterprise
System in Nestle
 the presence of various system to coordinate
the activities across the company
 The flow of information through all the
departments are required to have an
unavoidable and smooth approach
 The connection between all the departments are
required for smooth operation of the company
(Solomon 2018).
 The enterprise system allows in resource
planning, coordinates the sales department
about the presence of products and connects
the production, logistics marketing and all the

Contd..
 It has included the SAP’s R/3 ERP software, so
that the departments and integrate together
 The features are the flow control of the screen,
helps in functioning, enterprise modelling, and
common service management and control the
transactional flow

Contd..
 Various steps were-
 Analysis of the ES requirement in the company,
 Expert hiring,
 Evaluation of the ES,
 Include change,
 Data allocation,
 Implementation of the ES,
 Monitoring of the ES,
 Training of the existing employees,
 Launching of the system,
 Maintenance of the system

Challenges faced by the implementation of
the system
 Emergence of technology is new to the entire
Nestle Company
 Faced several difficulties at several levels of the
Company (Baker et al. 2017).
 the possible challenges that have been seen
while implementing the ERP system in Nestle
are:
 Implementation of the correct system is the
basic and most important requirement of the
Company
 The implementation of the ERP system requires

Contd..
 The implementation will require a huge amount of
time.
 The inclusion of the system requires the
knowledge to handle the system further
 The cost in implementing the system and providing
proper training to all will include huge cost
 The allocation of the system with the current going
activities requires proper management
 employees may leave the company for not getting
adjusted with the new system.

Contd…
 The continuous monitoring of the system is a
challenging work to include
 The investments made on the software and
hardware will be high as the system is new and
the operations are unknown.
 The maintenance cost is required to be
managed carefully otherwise any disruption in
the system can lead to a huge loss.

Effect of change management on ES
performance
 The inclusion of new system, project and initiatives
by any organization leads to changes.
 to enhance the performance and productivity of the
Company
 Depends on the working employees and the ways
they manager their works (Richards et al. 2015).
 The management of change is about following of
guidelines and rule to adopt the changes happened
in the Company environment so that successful
outcomes can be achieved in the long run.

Contd…
 The change management was scheduled well with
company activities
 The ERP deployment is required for strategizing with the
change management across the company.
 The proper change management lead to the best
infusion of the ERP system
 The success and failure of any new system directly
depends on the effective change management
 The performance of the employees are also get affected
by the proper implementation of change management.

Conclusion
 of the ERP system in the Nestle Company will enhance
the performance of the company
 their productivity will increase gradually
 The availability of the products and services of the
company is on the global level
 the requirement of an automatic system to manage the
inventory activities are required
 The presence of strategic change management will only
effect positively on the implementation of the ES
system

Reference
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 Ramesh, R., 2018. Case Analysis III: Challenges MNCs Face in Emerging Markets: The Nestlé
Experience. Vision, 22(2), pp.237-238.
 Hofmann, E., Strewe, U.M. and Bosia, N., 2018. Concept—Where Are the Opportunities of
Blockchain-Driven Supply Chain Finance?. In Supply chain finance and blockchain
technology (pp. 51-75). Springer, Cham.
 Solomon, N., 2018. The Practices And Challenges Of Enterprise Resource Planning Project
Implementation Of Commercial Bank Of Ethiopia (Doctoral dissertation, Addis Ababa
University).
 Baker, P., Gill, T., Friel, S., Carey, G. and Kay, A., 2017. Generating political priority for
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 Richards, Z., Thomas, S.L., Randle, M. and Pettigrew, S., 2015. Corporate Social
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