* Business Area and market share
* Financial Highlights
* PROBLEM IDENTIFICATION 2,30,000 employees and 500 facilities in 80 countries to support the decentralized strategy it has 80 different information technology units that’s runs nearly 900 ibm as/400 mid range computers ,15 main frames , and 200 Unix system despite its size the company has had no corporate computer center local difference created inefficiencies and extra costs that could prevent the company from competing effectively in electronic commerce. the lack of standard business processes prevented it from obtaining lower prices for its raw material. at first project decide not to use sap’s supply chain software because that module was brand new and appeared to be risky the staff that would be directly affected by the changes were not included in the key stake holder team. the lower level worker did not understand how to use the new system and also did not understand the changes ,nobody was prepared for the new ways of doing things. Turnover among the employees who were to use the Manugistics software to forecast product demand reached 77 percent. Those who remained found it easier to use their familiar spreadsheets. the simultaneous installation of the y2k changes also caused some trouble.
A Decentralized and Aligned Organization
As a decentralized organization, Nestle pragmatically implements the following organizational principles: * Being as decentralized as possible to optimally respond to the needs of consumers, within the framework defined by our fundamental policies, strategic directions and operational efficiencies. * Ensuring collaboration of all Nestle businesses and compliance with Nestle principles, policies and standards. * Building and maintaining a structure which assures operational speed, with a strong focus on results and removing unnecessary obstacles. * Establishing flat and flexible organizations with minimal levels of management and broad spans of control, which also enable people development. * Setting a shared vision and common goals to leverage the strength of people and organizational alignment. * Defining clear levels of responsibility. Teamwork does not affect the manager’s duty towards his/her people and business results. A team must always have a leader who assumes full responsibility. [Source: Management and Leadership Principles by Nestle]
Knowledge Management in Nestle
Nestle has a unique advantage in its extraordinary Business Technology Centre (BTC), located in Switzerland. This is at the heart of the famous GLOBE business excellence programmes, with best-in-class operating methodologies and systems. GLOBE is a key element in Nestle’s massive R&D investment. It develops the technology behind the way Nestle do its business to ensure that the company identify best practices and can replicate them throughout all businesses. GLOBE offers a Best Practice Business Process and custom developments. Implementation takes into account the specific local needs. Having eight Product Technology Centres (PTC) illustrate the success of Nestle’s drive for R&D efficiency, leaders in product, process an system development. Before their creation, Nestle’s geographically dispersed R&D Centres often worked mainly for their local market. This was inefficient. Two or more centres could be working independently on the same project. The Nestle PTCs changed this with a simple principle. You get there faster with a multi-centre team rather than having small teams competing to see who gets there first. Today, each PTC is responsible for category-specific innovation aligned with one or more of the Nestle Strategic Business Units and Global Businesses. This gives a global/local framework for multi-centre and multi-market projects. The PTC drives the projects by drawing on the wealth of experience in Nestle Research Centre (NRC). The...