Management, Organization, And Technology Challenges

1201 Words Apr 3rd, 2015 5 Pages
QUESTION 3: What management, organization, and technology challenges did Nestlé have to deal with to standardize its business processes and systems?

With the standardization of its core business processes and systems, Nestlé would have to effectively manage and deal with certain difficulties regarding the management, organization, as well as their own technologies.
Nestlé’s management alone faces several challenges to deal with. Some of the problems encountered by the management are the inconsistencies and inefficiencies that prevent the company to operate effectively in e-commerce. This includes, increase in costs generated by running multiple midrange computers because of the decentralized strategy of eighty different IT units and several other factors. In addition to that, fourteen Nestlé facilities in different countries were using SAP R/2, which is an older software version of their ERP system, to operate run their business. It becomes complicated when each business uses the software differently, for instance using different schemes for formatting data or different management forms. Consequently, this resulted to an overall increase in spending in information systems.
Along came another challenge with the launching of the $2.8 billion initiative proposed by the executive board to compel market heads around the globe. The initiative’s main goal is to unify all market heads to accord to a single business system and promote the use of a standard set of business processes…
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