The essay portrays the various difficulties associated with improper implementation of systems, inadequacy of data, lack of standardization of work procedures and methods. It throws light on the fact organizations gets affected because the top management fails to understand the nuance of systems integration and merely treats the whole job as purchase of software. It also highlights the additional costs involved in debugging wrong procedures or approaches.
The essay is primarily based on the case of the food and confectionary giant Nestle, SA. Nestle, best known for its milk and chocolate products operates from more than 500 locations across the world and has its operations in more than 16 countries. The case draws our attention because it projects the need for systems integration approach, measures to be taken in selection of ERP modules and vendors, the number of difficulties a business organization can encounter in integrating some of its key activity areas such as centralized purchasing, linking the supply chain, distribution, manufacturing and sales functions. The essay critically exposes the limitations systems integrations approach can pose business units to if they fail to use the definition given by Elliot.G regarding ERP. ...Show more