Question

Name one company that has realized multimillion-dollar benefits as result of installing enterprise systems. Name one other company that has suffered a multimillion-dollar disaster as result of failed enterprise system installations. What did they do right (or wrong)? How much did they spend on the ERP system (if you can find the number). Please do not usethe examples from the textbook (Steelcase, ColgatePalmolive, FoxMeyer, Hershey Foods and Nike).

Answer 1

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The companies that I have selected for the purpose of this answer is LG which is an example of good implementation of ERP system and Nestle as an example of bad implementation of ERP system

LG leveraged the use of ERP system, which essentially allowed it to centralize all its processes making it possible for the company to integrate the functioning of the company as a whole. It required the use of the implementation of a central login and data system which provided the employees with training material and performance review processes. Even at such a large scale, LG was able to successfully implement their ERP system and integrate it into their business model.

Nestle, on the other hand, spent around 200 million dollars, by Nestle America and its parent subsidiary Nestle Switzerland which spent almost 220 million dollars for the realization of a successful ERP system. They failed in their ability to provide immediate benefits to the company which essentially meant, in the long run, even if the company benefits, the short term processes were hugely affected. The ERP system hasn't shown its worth for the CO. Pay and, in this sense, their process was unable to implement due to the fact that it required a huge change to the entire company structure which was a hard task for Nestle.