The document discusses the opportunities and pitfalls of ERP programs in large organizations based on the author's experience over two decades working with ERP systems at multiple large companies. It covers topics such as ensuring technology fit, building effectiveness, completing thorough testing, managing the impact of learning, preparing data, controlling stabilization costs, and sustaining programs long-term. The author advocates for a three-year application and technology strategy, managing expectations of technology partners, and embedding ERP programs within business priorities.

1. Two decades ERP
“Opportunities and pitfalls with ERP
programmes in large organizations”
Patrick Dewilde
Nestlé GLOBE CIO-Office
Projects Portfolio Management Services
CONFENIS 2012

2. My 1991 – 2012 ERP journey
 Saint-Gobain
 Norske Hydro
 Rentokil
 Arcelor
 Siemens
 Campina
 Agfa
 Nestlé
 InBev
 NMBS
10 “environments” – 7 SAP-centric
9/21/2012 2 Decades ERP – Copyright P. Dewilde 2

3. Technology fit
10 Get Rights
Concept Validation
Business-IT Governance
IT Change absorption
Build Effectiveness
Testing Completeness
Learning Impact
Data Readiness
Stabilization Cost
Sustainability

4. 3 year application & technology
strategy is a must
 Core and Edge
 Next release syndrome
 Marketing hype versus sound references
 Account management of the Technology
partner
Technology fit 2 Decades ERP – Copyright P. Dewilde 4
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5. Global Master Data
Global MDR
e-recruiting Payroll & TM Report
Common Master Data Central User Global
Audit
SDR Administration HR
Finance
System Integration
Restitution EBP
Portal
(EUR only)
Regional
/ Zone Supply Operations Systems
Commercial Ops Systems
DP SNP / PPDS Supply Ops.
CRM GATP
SEM / Commercial Ops
BIW 3rd Party WMS
Local / Sub Reporting
Regional
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6. Beware the lack of experience…
 The world is flat
 Specialization versus minimum handovers
 White raves
 Benchmark and internal management
Build Effectiveness 2 Decades ERP – Copyright P. Dewilde 6
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7. Testing Completeness 2 Decades ERP – Copyright P. Dewilde 8
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8. Sending Fukushima to Mars
 From smart ass to fool proof testing
 Stabilize and automate
 Copy production (often !)
 Synergize with learning effort
Testing Completeness 2 Decades ERP – Copyright P. Dewilde 9
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9. Bridge the middle management gap
 Bottom-up and top-down
 Multi-channel
 Repeatability
 Internalize and promote-to-academy
Learning Impact 2 Decades ERP – Copyright P. Dewilde 10
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10. Data : expect the unexpected…
 Impose cleanliness & accuracy thresholds
 Process and Data owners
 Repeatability (again!)
 Apply LEAN data processes …
Data Readiness 2 Decades ERP – Copyright P. Dewilde 11
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11. SKUs & Recipes & Specifications & Raw materials...
5240722
KitKat Chunky Single (24x55g)
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12. The Day After
 Strict withdrawal
 Bug-fix fast track
 Minimize externals – Invest in new young
joiners
 Clear RACI between Business and IT
Stabilization Cost 2 Decades ERP – Copyright P. Dewilde 13
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13. 1 single Go-Live
Santiago HO Iquique
Antofagasta DC
Copiapó
Macul Factory La Serena DC
Viña del Mar DC
Maipú Factory Macul DC
I/C Logistic Operator
Graneros Factory Quilicura-Santiago DC / Lourdes
Maipú DC
San Fernando Factory Petcare DC (from April/1st)
Talca
Los Angeles Factory Concepción DC
Temuco DC
Osorno Factory P.Montt DC
P. Arenas DC
Llanquihue Factory
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14. Manuf Mexicali
DC Hermosillo DC Obregón Manuf (14)
DC Monterrey
DC Mexicali Purina
DC Chihuahua DC’s (42)
DC Monterrey Purina
DC León HO ( 1)
DC San Luis Potosí
DC Torreón
Total Sites Nestle Mexico
Manuf Querétato: Evaporated Milk
DC Tijuana
DC Querétaro
Purina
DC Querétaro Purina
DC
Tijuana
Manuf Nestlé - Purina
Cuautitlan DC
Cancún
DC Cuautitlan Purina
DC La Paz
DC DF Sur DC Mérida
DC Culiacán
DC Tequesquinahuac
DC Mérida
DC Los Cabos
Manuf Tlaxcala Purina
DC LAGOS
Manuf Coatepec
Manuf Lagos: F&B,
IceCream & CPW DC Coatepec
DC Guadalajara
DC Veracruz
DC Guadalajara
DC Vallarta
Purina DC Coatzacoalcos
Manuf. Ocotlán
DC Puebla
Manuf Toluca: Coffee, FoodServices & DC Villahermosa
Chocolates
DC Villahermosa Purina
DC TOLUCA
DC Tuxtla
DC Morelia Head Office Manuf Chiapa de Corzo
DC Naucalpan DC Chiapa de Corzo
9/21/2012 2 Decades ERP – Copyright P. Dewilde
Manuf Santa María
15
DC Ixtapa DC Acapulco DC Cuernavaca DC Manantiales DC Tapachula

15. The toughest journey is after Go-Live
 From Program to Line organization
 Accountable Key-users and Process-owners
 Change flexibility versus Compliance
 99.8%
Sustainability 2 Decades ERP – Copyright P. Dewilde 16
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16. IT Change Agenda can be huge…
3-tier approach : Global – Zone – Market
Reducing Data Centres from 80 to 4(+1)
Reducing Implementation & Support Centres to 5
Introducing Follow-the-Sun + Offshore factories
Partial outsourcing
Country focus limited to connected applications only
Centralized purchasing decisions + global contracts
Application and Solution resources report to Business
New SLAs and new cost allocation mechanisms (% of Net Sales)
IT Change absorptionCopyright P. Dewilde
2 Decades ERP – 17
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17. Embed ERP inside Business Program
Current Market Future
Benefits Benefits
Business Business
Model Process convergence Data Model
convergence GLOBE
Template
Tactical commercial Volume implementation Market
initiatives reduction processes
Process elimination / rationalisation
Market
processes
A number of processes will migrate from Market to
Regional
Regional or Global organisation processes
Shared Services Processes
Regional e.g Shared Services implementation
processes
Regionalized Processes
e.g. Tax optimisation, Demand & Supply Planning,Strategic Planning,
Factory Rationalisation, Logistics Rationalisation
Global
Global
Global processes processes
processes
e.g Global Purchasing, Strategic planning
Business-IT Governance
2 Decades ERP – Copyright P. Dewilde 18

18. ERP Technology impact
People / Experience / Skills
Technology fit
Governance / ChangeMgmt
Concept Validation
Business-IT Governance
IT Change absorption
Build Effectiveness
Testing Completeness
Learning Impact
Data Readiness
Stabilization Cost
Sustainability
19

19. Thank you !
patrick.dewilde@nestle.com
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