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Navigating Change- Implementing an ERP System at Nestlé USA

Navigating Change- Implementing an ERP System at Nestlé USA

Nestle USA sought to attain specific objectives while implementing the company-wide ERP system. First, efficiency is important for Nestle’s profitability. Nestle sought to increase its efficiency in the different departments. Secondly, it sought to gain better responsiveness. Thirdly, knowledge infusion was necessary because it would update all the processes of the organization. Finally, adaptability was part of the expected benefits.

Nestle employees resisted the new ERP system because it would change the entire culture. Nestle utilized a decentralized system. The proposed ERP system would lead to centralization, which would change the whole culture of the organization. In addition, a change in culture meant that the employee’s beliefs and procedures would be altered (Worthen, 2002). This change threatened the normal environment that employees were used to. Most importantly, the organization had failed to inform employees about the change in advance. During the rollout, the employees felt left out because they did not understand its necessity and functionality.

The most effective strategy to manage employees’ resistance was by involving them. Despite using implementation much later, requiring a delay of the entire project for six months. The employees took part in surveys that led to the realization of the significant issues. The employees were given time to adapt to the new idea. The main technical problem was the failure to integrate the entire system, leading to a lack of information among departments (Worthen, 2002).

Jeri Dunn understood that software project entails more. It affects the processes and culture of an organization. Thus, the appropriate strategy would be implementing the change in phases and installing the software last. The resistance saved the company money because the system would not have achieved the expected benefits if it had gone through initially (Worthen, 2002).

Reference

Worthen, B. (2002). Nestle’s ERP Odyssey – An ERP implementation fraught with costs.

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Question 


After reading Chapter 3 – Part 1 Case: Nestle’s ERP Odyssey (Wk2_Nestle.pdf located in this week’s module), create your initial post on the DQ 3 Discussion Board in response to the following questions (answer each question in 2-3 sentences. 2 points/question):

What business objectives did Nestlé USA want to achieve by implementing a company-wide ERP system?
Why did Nestlé employees resist the new ERP system?

Navigating Change- Implementing an ERP System at Nestlé USA

Navigating Change- Implementing an ERP System at Nestlé USA

What proved effective for managing employee resistance?
What technical problems did the ERP project encounter?
What was the primary lesson that Jeri Dunn, the CIO of Nestlé USA, took away from the ERP project? Explain why.
In the end, how did ERP help save money?

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