



2. What type of global business and systems strategy did Nestle adopt? Was this strategy appropriate for Nestle's business model?According to the norm, this was not the appropriate strategy for Nestle's business model. However, it seems to be working despite IT budgeting, data capacity, and delays in implementing the system across all branches. Nestle has achieved better operational efficiencies and is much closer to standardizing all processes, data, and systems. I really didn't think this would work as I read the case study, but it looks like Nestle could reach this goal in the near future.
3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
Nestle had the overwhelming task of merging eighty different information technology units into one designed system. None of its products are considered to be a truly global brand, so standardizing its processes and systems is quite complex. The biggest challenge Nestle faced was not technical, but personal. Previous attempts in developing cooperate standards had mixed results, most branches responded to the idea in a negative manner. Branches stated how a standard system wouldn't work globally. Branch managers feared the loss of decision-making power. Initially, the project staff was not large enough to design such a system.
Then there was the time challenge, the deadline for the rollout of the new standardized IT system was changed several times. This was also a large financial investment to embark on. Nestle had to invest billions of dollars in this project and still had the challenge to stay in budget. It was challenged to implement the new business processes concurrently with the new systems while not making it noticeable to anyone outside of the company. Managers and workers had no time to train on the system before it was deployed. Finally, Nestle had to deal with some technical issues as the system rolled out across the globe. Specifically, Canada had a problem with the amount of data storage it was allotted to allow for promotion data.

This article is closely related to the material discussed in the chapter. Kropf and Scalzi explain that it can be difficult to implement new information technology. They specifically analyze IT in health care. Senior management and professional project management must work together to overcome significant obstacles during IT implementation. Kropf and Scalzi suggest that a team of trained project managers should be created to monitor the progress of the implementation and provide accessible information form all projects. Software tools can be utilized by the team to collect, analyze and communicate the information on projects.



1. What problems are hospitals and physicians encountering in diagnosing diseases and prescribing medications? What management organization, and technology factors are responsible for these problems?
3. What obstacles prevent computer systems from improving the medical industry? How can these obstacles be removed?