Strategic Information System and Nestle: Challenges and Strategies

This report provides a comprehensive analysis of Nestle's Strategic Information System (SIS). It begins with an introduction to strategic planning and its importance for organizations, particularly in the context of Nestle, a leading food and beverage company. The report delves into the challenges faced by information system planners, highlighting the need for adaptability and effective decision-making. It then evaluates the role of IS strategies in achieving competitive advantage, emphasizing the benefits of cost management and efficient data processing through accounting information systems. The discussion covers various approaches, including outsourcing, particularly IT, to streamline operations and reduce costs. The report also examines internal controls, including management of integrity, competent personnel, and record-keeping. Finally, the report concludes by summarizing the key findings and recommendations for Nestle's SIS to enhance its strategic objectives and maintain a competitive edge in the market. References cited support the analysis of the strategic information system.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
[Name of the Student]
[Name of the University]
[Author note]

1STRATEGIC INFORMATION SYSTEM
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................4
About the company:.............................................................................................................4
The Challenges and Issues Faced by The Information System Planners:...........................4
Evaluation of The IS Strategies:..........................................................................................5
The Possible Approaches:....................................................................................................7
Outsourcing for Nestle.........................................................................................................8
Strategic information System..............................................................................................9
Improving the process of Decision-Making:.............................................................10
Proper planning of future scenes:..............................................................................10
Duplication at a minimum level:...............................................................................10
ERP system can act as modulator:.............................................................................10
Adaptation of needs of the organization:...................................................................10
Better control and traceability:..................................................................................11
Integration with other partners in the same chain:.....................................................11
Internal control in Nestle...................................................................................................11
Management of Integrity:..........................................................................................11
Competent Personnel:................................................................................................12
Separation of various kinds of Duties:.......................................................................12

2STRATEGIC INFORMATION SYSTEM
Maintenance of various kinds of records...................................................................12
Safeguard:..................................................................................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................15

3STRATEGIC INFORMATION SYSTEM
Introduction:
Strategic Planning refers to the process which has been adopted by various leaders of the
organization so as to analyze the vision for future. This analysis further helps in understanding
the goals and the objectives of various organizations like Nestle. Strategic planning generally
forces different organizations to gain a general idea about various facts (Hammer 2015). These
facts generally include the ways in which the resources will be needed for the purpose of
overcoming the various opportunities and the issues. Strategic management system helps in
limiting or avoiding the organization’s in spending more time during the management of various
crisis.
This report mainly discusses about the various challenges and issues that are being faced
by Nestle. The report mainly compares and contrast the various issues which are faced by the
strategic information system planners (Peppard and Ward 2016). The report also discusses about
the accounting information system. Accounting Information System mainly refers to the method
that is mainly designed for the purpose of processing of the data by making use of a software.
These things included in the Accounting management system can also be done manually. Many
of the tasks becomes very much easy when the accounting information system is used. This also
acts in the software domain making the process of data compiling very much easy and this might
include the data related to finance, tax and payroll (Amit and Zott 2012). After this discussion
the report also discusses about the topic “IS strategy can help the organization in achievement of
the competitive advantage”, which has been broadly evaluated in this report.

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Discussion:
About the company:
Nestle is a Swiss based company which is associated with the production of food and
drinking products. Nestle has its headquarter in Vevey, Vaud, Switzerland. It is one of the largest
food manufacturing company in the world. Business management is done on a daily basis by an
executive board. The designated board members are responsible for the management of a diverge
portion of the business. Nestle was established in the year of 1975 which initially evolved to
nestle professional in the year of 2008. Nestle is having different partners who are associated
with different types of food servicing operations in and out the whole management. Various
nestle food and beverages are present in the market and this includes thigs like the Maggi, nestle
Milkmaid, nestle everyday and many more items.
The Challenges and Issues Faced by The Information System Planners:
Strategic planning has been proven itself to be one of the most important aspect for small
as well as large business. This helps in ensuring the employees that they are involved in various
types of activities. This involvement of the employees in the planning can greatly help the
organization in achieving certain goals. This will also help the organization in achieving certain
missions, vision, core strategies and also the values. Manufacturing companies like Nestle will
be greatly helped by application of this strategic planning. A number of issues are addressed by
the strategic planners. So there is an essential need for them to stay alert along with being
prepared for the purpose of handling the issues anytime. They also need to prepare a list of
methods for the purpose of addressing the issues (Deschamps and Nelson 2014). The key
challenge that is faced by the planners is during the choosing of the right person for the various
processes or during the construction of the plan. A feeling of fear often rises in the mind of

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experienced peoples when they hear the word strategic. This planning process mainly helps in
avoiding or minimizing the issues that are faced by organizations like Nestle. The benefits that
can be obtained very easily are also explained by the planners. The primary focus of the strategic
planners mainly involves the providing of a brief overview of certain activities that can help in
achieving success at a larger scale. The most challenging portion of the strategic planning is the
involvement of the people associated with the organization like Nestle (Dias 2012). Number of
issues or problems of the people belonging to various backgrounds or perspective are addressed
by the strategic planners. The consensus is considered to be little bit challenging. Besides this
there are also several tools which can be used for the purpose of running different processes and
this ranges from the brainstorming to the nominal ranking of the organization’s like Nestle. But
besides all this the biggest challenge is faced during the execution phase (Babatunde and Adebisi
2012). This phase consists of putting the plan into the right place of the organization. The main
effort should be regarding the development phase which is generally used for various purposes.
It is known to the effective strategic planners that the ultimate goal of this strategies can be
achieved by completing certain goals, objectives and strategies.
Evaluation of The IS Strategies:
Business strategy is mainly imposed for the purpose of achieving a competitive
advantage. These strategies are required by the business so as to check that this resources are
used in an efficient way. Competitive advantage mainly refers to the profits that an organization
makes, which is more than the profit that is estimated by the organization. Business world
consists of various types of strategies and this can range from managing of the employees to the
management of knowledge (Dauda and Ismaila 2013). A Manufacturing company Like Nestle
can easily gain an advantage of cost by the method of producing various products at a lower cost

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than the other similar products present in the market. These strategies mainly focus on the
various type of products, the delivery system that the company is having or any type of methods
of marketing that is used by the organizations. The above discussion helps in stating the fact that
IS strategy can be very much helpful in obtaining a competitive advantage by Nestle. Besides
this there are some other advantages which can be obtained by making use of the competitive
advantage and this includes the better understanding of the industry, stronger plan for action,
ease of communication goals. It also includes the improving of the chances for success that is
associated with the organization. For the purpose of managing the competitive advantage in an
efficient way there is an essential need of clearing out all the ideas about the industries which is
to be considered (Amrollahi Ghapanchi & Talaei-Khoei 2014). The executives or the managers
will be greatly favored while having a general idea about the organization like Nestle. This will
be ultimately helping in having all the business related information’s which will be initially
leading to the success of the organization. Competitive advantage is mainly used by various
organizations as a method or technique for implementation of competitive strategies. This can
be very much beneficial for Nestle as it provides guidelines or access to the organization towards
the way in which the organization is proceeding or towards the expected way in which the
organization will be proceeding. The chances of success are increased for various organizations
by proper use of competitive advantage.
The Accounting Information System can act as a tool of improving the efficiency and the
effectiveness of the cost. This system is also considered to be very much faster and easier during
the processing of the data (Majaro 2013). This system is generally used by the financial
department for the purpose of maintaining the finance section.

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The Possible Approaches:
There are mainly four strategies that can be used for the purpose of innovation and this
are namely “Porter’s Matrix”, “Anoff Matrix”, “Strategy for Compilation of rules” and “Blue
Ocean Strategy”. The most suited method for the purpose of adapting the strategies is by the use
of the competitive advantage. This is very much helpful for Nestle in managing the cost over any
other competitors in the market (Bidgoli 2016). Nestle needs to perform a non-stop research for
the purpose of successfully implementing of the strategies along with reducing the cost for
various parts or aspects included in the program. A high value of resistance will be provided to
Nestle when it will be entering a market of competition. Nestle can adopt this strategy very
easily so as to produce various products at a higher rate. This high rate of production will be
greatly helping in attracting mora md more customers due to various reasons like low price and
many more. The implementation of new technologies for the purpose of production can help in
better designing along with the higher rate of production and low price of the products.
Implementation of this strategies can be done for the purpose of achieving a competitive
advantage. The marketing strategy can be adopted by Nestle for the purpose of increasing the
sale of the products (Thompson Dr 2013). There is also an easy definition for diversification
strategy that is it is the state in which the various kind of business corporations starts developing
of the new products in the market. There are mainly three types of diversification which are
probably to be used for Nestle and this are namely “concentric diversification”, “conglomerate
diversification” and “horizontal diversification”.
The Blue Ocean strategy model is mainly used for the purpose of overcoming the various
types of competition in the market or the barriers and issues. Mainly four kind of actions are
included in this strategy and this are namely the creation, increasing, decreasing and the

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elimination (Topa 2014). This strategy is mainly considered as a new model which can be used
for the purpose of development of various kinds of business activities.
Outsourcing for Nestle
Nestle is considered to be world biggest food and beverage organization which have
more than two thousand brands ranging from global to locally known. Nestle is present in almost
191 countries of the globe. The ultimate goal of Nestle is to improve the quality of life of various
people and providing healthier future for upcoming generation. The organization aims in shaping
the world so that it can easily provide better or healthier kind of life to the people (Gennari and
Cassano 2014). The strategy of this organization aims in providing benefit to large number of
people through various kinds of food and beverage products which is generally provided by it.
Implementation of outsourcing can help the organization in various kinds of parameters
like decreasing of cost. IT (Information technology) can be easily considered to be an important
method for outsourcing. The outsourcing option of Nestle will help it decreasing the cost and
cutting down cost which is not for import. So the organization can easily focus on various kinds
of nucleus kinds of procedures or methods (Kruschwitz 2013). Outsourcing of IT system at
Nestle can be considered to be better because nestle is a food organization and is less functional
in comparison to organization which is in direct contact with IT system. Only IT system is not
considered to be competitive advantage for any type of food organization. So outsourcing of IT
at Nestle can help in various kinds of core business products like food production. IT provides
proper infrastructure which can be used for management of information. It will help in reduction
of complexity of supply chain.
Nestle makes use of OmPrompt EDI services which can be easily used for processing of
various kinds of orders, invoices and documents of delivery. It will also result in improvement of

9STRATEGIC INFORMATION SYSTEM
supply chain management. After the implementation of OmPrompt system it is very accurate in
tracking of orders without any kinds of mistake (Mitra 2012). Nestle has increased the number of
customer satisfaction with reduction in the number of cost of reverse logistic. RFID is a popular
kinds of technology which can be used for driving various kinds of supply management. It is a
kind of automated system which can be used for reduction of number of employees and tasks
like picking and delivery of various kinds of goods. With the help of this technology Nestle can
easily keep a track of their vehicle and can help in better management of warehouse so that it can
easily reduce the time for launching of various kinds of products and improvisation of customer
satisfaction. This technology can also help in improvisation of security, tracking of various kinds
of problems, saving of cost and energy (Mitra and Neale 2014). This RFID tag can be easily
install in various kinds of ice cream products and readers in various kinds of trucks for analyzing
the fact whether the retailer freezer is too warm or too cold. With the help of this technology
Nestle can easily track whether the refrigerator is not working and can ultimately prevent it from
any kind of spoiling of food which may result in revenue lose and various stocks of an
organization. Various expert around the globe can help Nestle in supporting of strategy and
minimizing various kinds of task.
Strategic information System
An ERP is nothing but a kind of information system which has the ability for centralizing
and unifying various kinds of data which can be collected from various departments of business
which helps in flow of proper information (Haki and Legner 2013). Various kinds of managers
can easily have real time information which ultimately helps in process or method of decision
making. There are many kinds of advantages of implementation of ERP system in Nestle.

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Improving the process of Decision-Making: ERP system generally helps in the creation
of database which can be used for higher quality which can be easily displayed on the screen in
real time streaming and improvisation of the method of decision making.
Proper planning of future scenes: With the help of better information system Nestle
can easily estimate any kind of future scenes which can occur within this organization.
Duplication at a minimum level: Companies which do not have ERP system or solution
can easily see the operation in various kinds of departments so at end they end up in creation of
duplicate records and reports for the same thing. Ultimately this thing ultimately results loss of
resource in an organization (Akeel and Wynn 2015). To overcome this issue, nestle has
implemented ERP system so that they can easily reduce the various kinds of duplication of data
in Nestle.
ERP system can act as modulator: ERP system are generally formed by various kinds
of modules which the organization needs all the time. By this method organization like Nestle
can easily implement module which is needed all the time. ERP system can be considered to be
effective for Nestle as it will grow in the near or coming future.
Adaptation of needs of the organization: The needs of organizations are different
therefore the provider of ERP system must perform an analysis on the various kinds of needs of
an organization (Fisher and Krumwiede 2012). With the help of analysis one can easily judge or
ensure that the application works as per need of the organization that is Nestle. Care must be
taken that ERP solution must fit into the needs of Nestle.

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Better control and traceability: ERP system in Nestle will help in better tracking of
products within the organization. It generally keeps track of products starting from entry of raw
materials to delivery of various kinds of products to consumers.
Integration with other partners in the same chain: The new idea or concept of ERP
system that is second helps in exceeding the limitation of an organization with addition of other
members in the same value chain (Gandini Gennari and Cassano 2014). It ultimately focusses on
the fact that the organization can easily become a strategic partner which ultimately results in
gain of competitive advantage. It will help in design and development of large number of
products. ERP will help Nestle to have better quality of information and it also help in
adjustment of purchase order of various kinds of products and needs of purchase within an
organization.
Internal control in Nestle
Internal control may refer to various kinds of process by which various kinds of
organization maintains an environment which prohibits any kind of fraudulent activity by an
employee or management (Sarpong and O'Regan 2014). The ultimate goal of internal testing is
that it generally focusses detail value or method of testing. The quality management system of
Nestle is considered to be platform which is generally used for providing guarantee of various
kinds of food items. The internal quality management system of Nestle is verified by large
number of international bodies. Nestle provides good manufacturing techniques or practices for
ensuring quality and safety of various kinds of food items (Haux et al. 2013). There are mainly
five type of internal control that is integrity of management, personnel type of component,
separation of duties, maintenance or tracking of various kinds of records, safeguarding.