Nestle Case Study: IT Savings, Stakeholder Engagement, and ERP

This case study examines Nestle's digital business transformation, focusing on two key questions: the primary source of payback (IT savings, business savings, or higher sales) and strategies for engaging individual countries in IT projects while avoiding centralized control failures. The analysis delves into Nestle's implementation of Enterprise Resource Planning (ERP) systems, particularly the GLOBE system, and its impact on operations, sales order processing, and supply chain management. The study highlights the importance of stakeholder management, change-ready culture, and strong leadership in successful IT project implementations. It explores how Nestle leverages IT savings, increases sales, and navigates cultural complexities to achieve its strategic objectives. The document explores how the company can avoid the "kiss of death" by creating an environment where individuals can thrive in a world of uncertainty, focusing on clarity, leadership, and adaptability to change.

Component B Module
case study

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.Does the biggest payback come from 1) IT savings 2) savings elsewhere in business 3)
higher sales 4) something else?..............................................................................................1
2.How to get individuals countries to take part and be involved in the project?How do you
avoid the “kiss of death” which would be bestowed on an “IT project driven from the centre”?
................................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Digital Business is basically considered to be the process of the application of the digital
technology for the objective to transform and reinvent business models and transforming the
customer experiences with the support of the innovative products and creating a new value and
connecting individuals with experiences, things and insights. In this report, the organisation
discussed is “Nestle”. In context to Nestle, the organisation is the largest publicly held food
organisation in the world and is basically measured by the other metrics and revenues. In this
report it basically involves case study and two major questions associated with it.
MAIN BODY
1.Does the biggest payback come from 1) IT savings 2) savings elsewhere in business 3) higher
sales 4) something else?
In context to Payback period, it is basically the time taken by the organisation to recoup
an investment. In context to NESTLE, it is important for the management to be acquainted with
how long it will obtain the money back from cash flow generate through various assets present in
the company. The calculation is considered to be simple and also the pay back periods are
expressed in the years. The developing organisations eventually arrive at point where
spreadsheets no longer cut it.(Luz Martín‐Peña, Díaz‐Garrido and Sánchez‐López, 2018). In
relation to Nestle, the organisation uses the resource planning software which basically works
really well in the organisation. In context to the ERP, the system basically organizes and collects
key business information which supports the company in expansion, running lean and the
efficient operations. In context to business professionals, they are well aware about the term of
ERP. In context to ERP, it is basically an app that automate organisation’s process and also
offers internal and insights control, illustration on a central data base which basically collects
inputs from through departments such as human resources, accounting, supply chain
management, sales, manufacturing and much more(Orji, 2019). In context to Nestle, the ERP
software that basically tailored for the purpose to met and fulfil the needs of the individuals
business pays that comprises of dividends and making these a very important and effective tool
fir all the sizes and the companies. In context to Nestle, the biggest pay back came from IT
savings and higher sales. In context to NESTLE, the organisation uses as well as also focuses on
the key marco strategic consequences. In reference to Nestle, the company's current example
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involves the “one size fits all” come up to which was basically second-hand for the purpose to
contract and handle the implement one system across the single company combining various 70
regional and localised implementations related to IS. In context to Nestle, the organisation
focuses on following the various approaches in its IT business operations in various of world.
In addition to that, the integrating operations with the use of Information Systems in the ERP
and general in the specific for the purpose to gain strategic advantage is basically considered to
be the key objective of the company and in various cases, wherever the IS have been
implemented there are more cases of the failure. In reference to Nestle, the company gained
success through the GLOBE's implementation and is basically like to show. In reference to
organisation, the company is a popular organisation that had different local strands of IT
utilisation across the 70 geographic destinations where the company basically operates in (Weill
and Woerner, 2018). In context to the organisation, the company uses GLOBE, for the objective
to control and monitor performance within far to contexts. In addition to that, the second
objective is to enable the use of GLOBE various efficiencies which are basically related with
the customers and the supply chain of the company's products consolidated on the worldwide
basis. In addition to that, an inductive case study approach could be adopted for the present
scenario.. In context to ERP system, it played a very important role within the IT and IS
infrastructure. In context to Nestle, it was very important for the companies to understand and
have knowledge about the 2 things at this particular stage, the one involves the Culture at that
time and the other involves how the project was basically presented(Gauthier, Bastianutti and
Haggège, 2018).
In context to Nestle, the Sales Order Processing plays a very important and essential part
of the company. The company basically itself is a manufacturer of the branded products and the
excellence in the manufacturing process is considered to be the part of the culture of the
company. In reference to IT savings, it is basically the portion of the income not spent on the
current expenditures. In context to other meaning, the money set aside for the future use and is
not spent in immediate manner. In reference to organisation, saving money plays a very
important and significant role and it provides freedom, financial security and secures you in
financial emergency. In reference to organisation, the company with the help of IT savings, can
easily avoid debts which can result in relieving stress(Beynon-Davies, 2019). Moreover, the
organisation has various benefits from the increased sales as the company continuously focuses
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on the introduction of the new services or products, improving customer service, expanding the
market and increasing the activities of the market. In addition to that, the Nestle gets various
benefits from the sales and marketing such as better marketing materials, staying ahead of
competition, accurate buyer personas, increased revenue, better qualified lead, stronger
relationships and much more(Scuotto, Serravalle, Murray and Viassone, 2019).
2.How to get individuals countries to take part and be involved in the project?How do you avoid
the “kiss of death” which would be bestowed on an “IT project driven from the centre”?
In context to Nestle, in order to improve the operations of the organisations and inviting other
individual countries to take part and get involved in the project, the stakeholder management
plan plays a very important role and is considered to be the component of the project
management plan that basically identifies the actions and strategies which is required for the
objective to promote the productive involvement of the stakeholders in the program or project
decision making and execution. In context to Nestle, the stakeholder engagement basically
comprises of the different ways to involve and attract the organizations, individuals and groups
who may be affected by the project or might basically affect the project. In context to Nestle, the
organisation can invite other countries to take part in the project through identification of the
stakeholders early and also maintaining a stakeholder register. In addition to that, getting
stakeholders talking to one another and inviting key stakeholders for the initial project meetings
and also focusing on developing the project charter(Milani, 2019).
In context to Nestle, the kiss of death is basically the event or the action that can cause
certain failure for the organisation. In reference to Nestle, the kiss of death for the organisation if
it could be proved that the food was unsafe. In reference to kiss of death, it is basically a change
resistant business culture. In order to achieve success, specially in the Covid disrupted world is
that how well the company is able to embrace and instigate changes. In context to Nestle, if the
organisation is not able to change easily and swiftly, the company will struggle to adapt the
changes. In context to NESTLE, the organisation in order to avoid kiss of death, need to focus on
creating an environment in which the individuals can thrive in a world of full of uncertainty
(Stolyarov, Petrenko, Serova, and Umuralieva, 2019). In context to NESTLE, the five step
process basically navigates all this uncertainty and creation of the change ready culture. In
reference to the organisation, it is very important to regain the company's strategic clarity and the
first step to success in the uncertain and volatile world for the purpose to regain clarity. In
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context to the company, it is very important to ensure leadership team and being crystal clear and
transparent about the business operations and its existence. In addition to that to avoid kiss of
death, it is very important to create an extraordinary leadership team and with implementation of
the right strategic clarity. In such times, it is very important for the companies, the departmental
leaders and CEO throughout the company need to be brutal when it comes to the leadership
teams, behaviour and composition. When it comes to organisations, the business cannot afford
weak links and also the business demands a genuinely collaborative leadership, strong and
unified team based on the mutual trust and respect, delivering shared objectives together and
cabinet responsibility. In addition to that, the company's leadership team responsibility basically
defines the culture that the company needs and how to transform it from where it is today.
Furthermore, it is very important to ensure that leaders are skilled at the leading change and the
company's leaders have the ability to lead change and applying the key leadership skills for the
leaders at all the level( Gupta and Bose, 2019).
It is also very important to ensure that individuals are able to embrace changes and the
only way to get success in the organisation is the willingness of the company to adapt and
embrace changes. It is very important to be equipped with the right approach, skills and mindset
for the objective to look for more opportunities and embracing changes and making the
individuals realise the importance of change. In context to change, all change is emotional and it
is very important for the organisation to over come the barriers to change. In context to the
organisation,it is very important to not let the bureaucracy in the way. In context to the company,
it is very important to make sure all the communications, HR policies, financial rules, incentives,
process of management are all redesigned for the purpose to get out of the individual's ways and
encouraging innovation and informed risk taking, celebrating the successful change and learning
from the failure. The way individuals behave and delivers basically dictates the experience of the
customers and also affects the business and its single part. In context to Nestle, the cultural
complications, user resistance, organizational complexity and change management provisions are
considered to be some of the well known burdles of the Enterprise Resource Planning systems
implementations that have been basically reported so far (Levine, 2019).
In context to the company, the study basically examines the effects of the ERP
implementation basically on the four critical facets of the supply chain of the company basically
aiming to dispel the myth of the inevitable failure that basically shrouds the contemporary
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appreciations of the ERP implementations when it comes to large multinational companies. In
context to the motivations of the company, the Enterprise Resource Planning or also known as
the Enterprise systems in the company have varied over the last decades. Before the starting of
the new millennia, the ERP systems implementation seems to have been a measure that basically
aims at addressing the concerns of the company in the Y2K. In reference to Nestle, the company
also focuses on improving communication with the suppliers and the customers is also a strategic
priority that basically has motivated multinational companies for the objective to implement ERP
systems. In addition to that, the third common driver of the ERP implementations are basically
considered to be the benefits that occur through greater data and also provided that a strategic
benefit. In context to Nestle, the integrating operations using the information systems in general
for the purpose to gain strategic advantage and becoming the major goal of the
company(Steininger, 2019). In context to the company, the role of ERP systems is considered to
be very important for the company. In the year 1990, the company took the strategic decision for
the purpose to deploy the SAP in its ERP provider. In context to the organisations, it is very
important to have deep understanding about the 2 things at this stage, which basically comprises
of the organisation's culture at that time and the various ways of presenting the project. In
reference to purchasing it is a fairly clear-cut business area which is very important for the
purpose to have deep understanding about the model from the process point of view and also
from the point of technology. For the purpose to understanding the enormous commercial
opportunity, the purchasing basically represented the company prior to the GLOBE and it is very
crucial to appreciate things.
This is the major reason behind why the nations like UK, Germany, Italy had
accumulate lot of various businesses that had their own list of suppliers. In context to Nestle, the
digital business and digitalization basically comprises of transforming the business into a digital
business through use of the digital technologies. In context to Nestle, the major objective of the
digitalization is to basically create new value added opportunities and generating higher revenue.
In context to Nestle, it is very important to keep up with the facts and the latest updates in
relation to the digitalization and in context to company, the organisation uses Machine learning,
artificial intelligence, Edge computing, Augmented reality, 5G and internet of things(Reis,
Amorim, Melão and Matos, 2018).
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CONCLUSION
From the above, it can be determined that digital business information plays a very
significant role and in reference to organisations, the digital business rely on the technologies for
the purpose to grow and operate. With the help of digital business, it helps in deeper
understanding and leveraging the AI to improve customer experience, using the the task
management systems and using productivity apps for the purpose to automate the workflows and
also capturing data for the purpose to improve business intelligence. The report helps in
understanding the company's biggest payback and how the company gets the countries to be
included in the project and take part and how the company avoiding the “kiss of death” which
basically bestow on the “IT project driven from the centre”.
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REFERENCES
Books and Journals
Beynon-Davies, P., 2019. Business information systems. Red Globe Press.
Gauthier, C., Bastianutti, J. and Haggège, M., 2018. Managerial capabilities to address digital
business models: The case of digital health. Strategic Change, 27(2), pp.173-180.
Gupta, G. and Bose, I., 2019. Digital transformation in entrepreneurial firms through information
exchange with operating environment. Information & Management, p.103243.
Levine, L., 2019. Digital trust and cooperation with an integrative digital social contract. Journal
of Business Ethics, 160(2), pp.393-407.
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J.M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic
Change, 27(2), pp.91-99.
Milani, F., 2019. Digital business analysis. Springer International Publishing.
Orji, C.I., 2019. Digital business transformation: towards an integrated capability framework for
digitization and business value generation. Journal of Global Business and
Technology, 15(1), pp.47-57.
Reis, J., Amorim, M., Melão, N. and Matos, P., 2018, March. Digital transformation: a literature
review and guidelines for future research. In World conference on information systems and
technologies (pp. 411-421). Springer, Cham.
Scuotto, V., Serravalle, F., Murray, A. and Viassone, M., 2019. The shift towards a digital
business model: A strategic decision for the female entrepreneur. In Women entrepreneurs
and strategic decision making in the global economy (pp. 120-143). IGI Global.
Steininger, D.M., 2019. Linking information systems and entrepreneurship: A review and agenda
for IT‐associated and digital entrepreneurship research. Information Systems
Journal, 29(2), pp.363-407.
Stolyarov, N.O., Petrenko, E.S., Serova, O.A. and Umuralieva, A.S., 2019, April. The digital
reality of the modern economy: new actors and new decision-making logic. In Institute of
Scientific Communications Conference (pp. 882-888). Springer, Cham.
Weill, P. and Woerner, S., 2018. What's your digital business model?: six questions to help you
build the next-generation enterprise. Harvard Business Press.
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