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An Analysis of Nestle's Erp Odyssey

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Enterprise resource Planning (ERP) is any integrated cross-functional software that reengineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability.1 On an initial view, an ERP system appears to be the cure for any company’s issues. The installation of such a system offers an organization the opportunity to re-structure their procedures, to coordinate branches’ systems in other geographic locations, unify information and inspire employees via granting them permission to company information. Now these chances exist at heightened costs financially. There are also implementation horrors and labor issues with which must be dealt with. A …show more content…

This was only the beginning of Nestle USA’s problems. By early 2000, the project had already turned into a fiasco. Workers could not comprehend how to use the new system and did not comprehend the new work processes they were being coerced to accept. Divisional executives were just as perplexed as their subordinates as they were excluded from the planning and development of the new system and were reluctant to aid in rectifying the problem that had rapidly developed. The end result of this was that company morale dramatically fell and employee turnover had far skyrocketed. With the aftermath of the failure saw a new project manager assigned to restart the operation. Gathered were nineteen key stakeholders and corporate executives at an offsite retreat to discuss and aid in the direction of the project. Out of this meeting came the revelation that they would need to redefine the criteria of the project and then shape the project timeline around the criteria as opposed to shaping the timeline around a predetermined deadline. From that starting point, the project team was on track with the finish line in sight in the not to distant future. The team also began taking repeated surveys of the effect of the

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