Post on 30-May-2018
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NESTLE
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PRODUCTS Dairy products Soluble coffee Breakfast cereal Infant foods
Ice cream Chocolate Pet care
Cosmetics
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THE OLD WAY…
Each local organization conducted business asit saw fit
80 different information technology units
No corporate computer center
Limited Data sharing amongsubsidiaries
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INITIAL PROBLEMS
Decentralized Strategy
Inefficiencies and Extra Costs
Lack of Standard business processes
Multiple Purchasing Systems
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ERP
SAP
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MEASURES TAKEN
The project called BEST (Business Excellence ThroughSystem Technology) was undertaken.
Team of 50 top business executives and 10 senior information
system professionals.
Developed a set of best practices.
Common data structure for the whole company.
Manugistics’ module for supply chain was used.
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SAP’s modules for purchasing, financials, sales anddistribution were used.
Nestle SA also contracted with SAP to purchase anddeploy the new version called mySAP.com
They also decided to create up to five computercenters around the world to run mySAP.comenterprise financial, planning, production, supplychain, business intelligence software.
$280mn required for the SAP contract and installingall the system for the global company.
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PROBLEMS FACED DURINGIMPLEMENTATION
Project BEST( Business Excellence Through S ystems T echnology)
Corporate Culture
NOT just about software
Early planning Stage
Installation of Y2k changes
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BENEFITS The new system will not only standardize and
coordinate the whole company’s information systemsand business processes, but will also extend SAP’senterprise software to the web.
It will allow each Nestle employee to start work froma personalized web page linked to his or her jobfunction.
The employee’s job is structured to conform to the“best practices” defined by SAP for 300 wok roles.
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SOLUTIONS Project Leader Removed. 3 days retreat She decided to replace all but a couple
of parts of the Manugistics system withAPO Integrated the existing components
Decided to start over again
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Created a detailed road map for the projectby April 2001
Agreed to educate employees
Nestle achieved significant ROI and savedupto $ 325 million
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PRESENT SCENERIO
Number of employees 224,541
Total numbers of factories 479
Market leader worldwide in coffee and mineral water
Major share in pet food market
Nestle has about 260 000 shareholders
Nestlé has saved $325 million from SAP.
Wal-Mart has named the company "Vendor of the Year"for three consecutive years
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RECOMMENDATIONS
1. Don’t start a project with a deadline inmind.
2. Update your budget projection atregular intervals.
3. ERP isn’t about the software…
4. Include in the planning the peoplewhose processes you are changing.
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CONCLUSION"If you try to do it with a system first, you will
have an installation, not an implementation, andthere is a big difference between installingsoftware and implementing a solution."
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Rules & Regulations
Time given
for
presentation
15
min
Group size should not exceed 4 members
Bonus points for related video
Bonus points for answering question (when other present
Negative points for not answering the questions (when