1.

Q1: Compare and contrast the two ERP implementation techniques used by Nestle and
Hershey.

The drawbacks and benefits of implementing big-bang conversion are discussed below in
relation to the parallel or phased approach.

In particular, the phased approach is concerned with the incremental transition from the legacy
system to the new system. The conversion needs considerable time for this method. However,
since the conversion is incremental and is done in accordance with the current structure, it is
less disruptive. In situations where the probability of failure of the newly proposed ERP system is
high, this method is also acceptable. On the other hand, the conversion to the big bang is a
reasonably high-risk strategy. Only when the conversion is done properly is it clean and
straightforward. Companies take this method because they are sure that they will switch from
an existing system directly to the new ERP system. The overhead cost of conversion is minimized
as there is no need for the new system to work along with the legacy system.

2. Analyze both the projects in terms of Functionality, Business Strategy, and Implementation
perspectives.

Hershey:

a. Functionality:

Hershey functionality is big bang.

b. Business strategy:
Both companies have business strategy is commitment to consumers, community,
and children, we provide high-quality HERSHEY’S products.

c. Implementation perspectives:
Business switches from its existing ERP system to a new solution at a single point in time,
means all the company’s modules and offices go live simultaneously.

Nestle:

a. Functionality:
Its functionality is Phased.
b. Business Strategy: To be recognized leading Nutrition Health and Wellness
company
c. Perspectives: Rollout of the system is done in phases.

3. Discuss 3 major implementation issues with respect to each company's implementation.

Hershey chose to follow the Big Bang plan to transition their legacy system to a new ERP
system. Without proper system testing, they were in a hurry to introduce their new ERP
 system. They had to sacrifice their vital data and systems as a result. Owing to late system
integration and system monitoring, early identification of problems was not possible.
On the other hand,' phased introduction' has been used by Nestle. They had faced
employees’ resistant to adopt new ERP system. Despite having several problems in their
implementation, after solving these problems, both users have managed to resolve these
challenges.

4. Explain one strategy for each company should have adopted to avoid the implementation
issues mentioned in the study.

When moving their method using the Bing Bang strategy, Hershey should have a proper
implementation plan. The tools available and the risk assessment should have been carried
out before pursuing implementation. A strategy that would address their risk, cost, data
consistency and access should be adopted by Nestle. In order to provide a proper
implementation plan that would redefine the company criteria and become a roadmap for
the implementation team, Nestle should have met with the executives and stakeholders.
Both teams should determine their system implementation readiness, carry out risk analysis,
other financial and technological tools, timetable, etc. They can both test their
implementation in an operating environment by simulating their implantation.

5. What advice do you give to each company respectively to improve their mistakes for a
successful implementation?

Answer:

My advices for companies to improve their mistake are followings.

1. Should set exact time frame for implementation.

My first advice is to set exact time frame for implementation of every possible works.
Companies should spend time evaluating the business process reengineering that will be
done in connection with an ERP implementation. Hershey lost $100 million of sales when the
system setup failed so proper evaluation of business process is paramount of importance.
Hershey also suffered a when their huge, intricate system squeezed into unreasonably short
timeline. Another Hershey’s failure on this account is that it timed the cut-over during the
peak season. So, companies should set exact time frame for all possible task on time.

2. Should focus on system testing.

Another problem was failure to integrate modules which means different modules could not
communicate wherein can be attributed to failure of system testing. Due to rush
implementation Hershey’s implementation team made the serious mistake of sacrificing
systems testing. This resulted to critical data, process and system integration issues that may
remained undetected until it was too late. So, companies should focus on system testing
before launching their system.
 3. Enough training to all related employees:
The training plans in both cases were not successful. In fact, this was one of the factors the
ERP implementation on respective company failed in initial stage. So, it must provide proper
training for all employees. Here we can see that, by the time of implementation employees
did not understand how to use the new system and did not understand the new work
processes but they were forced to adopt. As a result, employees resisted. So, all types of
employee should be trained in their areas and should give proper regarding their tasks.

6. Why were the training plans unsuccessful in both the companies? Discuss

Training plans are unsuccessful in both companies because of following reasons.

i. Little planning about the implementation

ii. Testing not taken into consideration
iii. Rush implementation

Hershey was in a hurry to launch the device.

There was a great error in neglecting system testing, so there was a problem with the
integration system, its processes, and data, which was not discovered until the very end.
The Hershey implementation team made a big mistake in rushing the entire training
process to reach the deadline, they thus aggressively shortened the length of the
preparation. During the busy season, all this happened because workers were engaged
in their jobs and this should have been accomplished during the off season. Nestle
struggled to get its staff involved in the process of growth as well as planning, despite
having different implementation methods. This, in fact, at the end of introducing the
system, workers had uncertainty about the new system, but nestle aggressively made
their employees accept the new system, resulting in employees being resilient resulting
in the ERP system being unsuccessfully introduced.