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Strategic Enterprise Architecture Management

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Question:

Discuss about the Strategic enterprise architecture management.

 

 

Answer:

Introduction

Nestle has an organized board of structure which is generally led by chairman Paul Bulcke who is known to be former CEO of Nestle. Management on day to day basis is used by Nestle business and is generally taken care with the help of Executive board. The designated board members of Nestle focus on managing the diverge portion of global business (Ahlemann et al., 2012). The food service of Nestle was built in the year of 1976 and evolved out to be Nestle Professional in the year of 2008 with various partner with various food servicing operation in and out of home management. Nestle food and beverage professional offers a range of solution like Maggi, Nestle Milkmaid, Nestle everyday its large range of consumers.

In the coming pages of the report current processes of Nestle has been discussed in brief in the coming pages of the report. All the current gaps present in Nestle has been identified and new system has been suggested which will over the gaps present in this organization. A definition has been provided regarding the specific issues which this organization will overcome has been discussed in details in coming pages of the report. The requirements behind the information system strategy has been stated in this report. 

 

Discussion

Current process

Nestle is a manufacturing which mainly includes certain process which generally turns raw material into a safe and nutrition product for its consumer from different region of the world (Bente, Bombosch & Langade, 2012). This has become possible with the help of Nestle Environment Management system (NEMS) which will ultimately help improving the products and after that providing certain methods through an initiative named Nestle Continuous Excellence (NCE).

The ultimate notion of NCE is also known as ‘3C’.

  • Excellent in compliance in terms of legal and internal factor.
  • Providing better services and products by sharing their sustainability aims and objectives in the communication for brand.
  • Providing competitive advantage by making use of zero waste and improvisation efficiency of water and energy.

By the year of 2030 the aims and objective of this organization is to look for zero impact in environment. Efficiency in the manufacturing domain in considered to be critical factor for achieving the ambition (Bernard, 2012). The life cycle assessment relates us to the fact regarding the amount of energy used in manufacturing of products. Greatest efficiency has obtained by making use of five important parameters namely sustainability, quality, availability, safety and lastly cost. 

Any Gap

The product quality of other food processing of Australia and other products which are sold by company is considered to be premium value and so the products are considered to be expensive than which are locally available in the market of Australia. This organization is an Australian but this is a Switzerland based with many Australian consumers who are not too much familiar with various products (Bernus, Nemes, & Schmidt, 2012). The demand of products offered by Nestle is considered to be very less as this is foreign product on the land of Australia. Only people belonging to the upper class of the society have the right to make use of products.  In many cases it is seen that the quality of product offered by Nestle is considered to be low.

 

Specific Issue which the new system will overcome

Technologies are considered to be important factor for R&D in Nestle. This organization claim to have of various engineers working in R&D in large number of domains which ranges from packaging to processing of food technologies (Bradley et al., 2012). In the last it focusses on manufacturing of new beverage products like Nespresso and many other products. Apart from engineers the food has developed certain process and technologies which ultimately helps in development of safe, nutrition products and beverage with proper maintenance in the development of food and technology.

Fermentation and probiotics:

Research center of Nestle was considered to one of first factor for looking into the molecular interaction with probiotics and cells of intestinal.

Healthier fats:

Nestle claims to develop technologies which allows to make use of natural vegetable oils instead of making use of partially hydrogenated fats in various products in Maggi with cups and seasoning.

Extraction of malt:

Nestle have developed some new processes which is used for extraction of Malt which means that the manufactured product will have more complex carbohydrate and less amount of sucrose.

 

Information System Strategy

Strategic information system at any level of organization are nothing but computer system which are designed to make changes in goals, products, services, operation and relation with environment which will help the organization having competitive advantage (Fischer, Aier & Winter, 2015). This type of system is generally considered to be a power tool which is used by organization for staying ahead in a competition. SIS (Strategic information system) are generally used for providing strategic goals for an organization. It mainly aims increasing performance and productivity of an organization (Foorthuis & Brinkkemper, 2015). The different types of strategic information system used are outward system, inward system, hybrid system, strategic alliances.

Outward system:

It focuses to provide a tough competition with the organization which are present in the industry.

Inward system: It mainly works for enhancing the competitive place or position is an organization by mainly increasing the productivity for the employee, improvising the teamwork, enhancing the method of communication between the various components of an organization.

Strategic Alliance:

Two or more sharing a common share in a SIS.  

Implementation of (Strategic information System) SIS can be considered to be risky with a large value of investment (Franke, Johnson & König, 2014). Strategic information System makes use of Porter and Millar framework which is ultimately used for planning and development of strategy behind the use of SIS.

Strategic information system is considered to be difficult for building as it is expensive, risky one for building as it is time consuming, can be easily copied by any other organization (Gibson & Akhgar, 2017). Implementation of strategic information system generally requires changes on basis of organization with a transition from one sociotechnical level to next level.

There is generally no single value which encompasses all the strategic information system on the contrary there are certain of strategy at various levels namely business, firm and level of industry (Iacob et al., 2014). For each level of business strategy there are some particular strategic uses of system. There are generally three level of strategy business level strategy, firm level strategy and industry level strategy.

Business Level Strategy:

The most well-known strategic at this level are to become low cost producer, to differentiate product and services, changing the idea or scope of competition by either making markets or global markets by focusing on small areas which are served by various competitors (Jallow et al., 2017). Various digital firms from different regions of the globe focus on supporting strategy at business level by managing supply chain, creating efficient customer system and taking part in web services for delivering products and services to the market.

Firm –Level Strategy:

Synergy are defined as some of units which is used as input to other outputs between two organizations can help in pooling of markets and expert which provides relation between lower cost and generation of profits. One method of IT is to make use of synergy situation for disparate units of business so they can act as a whole.

Competitive Force Model:

It is generally used for explaining the interaction of various kinds of external influences, particularly the threats and opportunities which can affect the strategy of an organization and its capability to compete with other organization (Närman, Buschle & Ekstedt, 2014). This particular strategy has been developed by various organization for improvisation of competitive edge. There are mainly five forces which are associated with namely

  • Threats from new competitors
  • Bargaining from list of power suppliers.
  • Bargaining power of various customers
  • Threats of various substitute products 
 

Need of such strategy

Marketing information system is generally divided into four zones namely internal accounting system, marketing intelligence system, research system for marketing and analytical system related to it. This kind of strategy is used for buying various kinds of raw materials like cocoa for producing, marketing and selling of products like kit Kat chocolate biscuits and instant coffee and many other business processes for an organization (Simon, Fischbach & Schoder, 2013). After the integration of internet strategy around 20% of annual budget will be spent on internet. Nestle claims to have sites for coffee lover and a club Buitoni site for Italian food lovers. 

Nestle has make use of internet for collecting and leveraging information about various customers and provide initiatives for new marketing. Microsoft platform has some flexibility which allow Nestle for developing components which are based on web architecture.

The above mentioned strategy will provide a number of benefits like increased productivity, reduction of cost, enhancement of flexibility, advancement in the field of intelligence and lastly improved personalization 

Revenue Cycle

Nestle understands the need of revenue cycle and it also needs some amount of break regarding it.  Revenue cycle transformation helps in having engagement and this ultimately aim in increasing the net value cash for various customer in a right way (Simon, Fischbach & Schoder, 2014). This will ultimately have led to improvements which will have millions of dollars that will be provided in the bottom line of the organization. Nestle product and services will ultimately provide an experience team member which comprises of revenue for high skill. Revenue cycle generally consist of three parameters namely onsite recovery of projects, providing staffing to various kinds of solution. 

Conversion Cycle

 Analysis of conversion cycle is considered to be an important method for evaluation of efficiency of the operation of an organization like Nestle. It generally measures how fast an organization converts the value of products into cash. It generally focusses on certain areas like days’ inventory outstanding, days sales outstanding, days payable outstanding.

Financial Cycle

Technology ultimately aims in giving better value of performance and also provide greater value of efficiency by making use of various function like big data, cloud and other technologies which are generally considered to be important factor for the future of any organization like Nestle (Zarvi? & Wieringa, 2014). It generally focusses on three parameters namely employees for future, upgrading security and saving of dollars.

Expenditure Cycle

Nestle has spent millions of dollars on the healthcare domain which merely stresses on the fact to submit different processes related to it. It also provides a large number of solution.

  • Providing onsite A/R recovery for possible solution.
  • Office program for possible solution
  • Revenue cycle to be outsource

Conclusion

From the above discussion it can be easily stated this report is all about identification and structure of an organization named Nestle. Different kinds of services and products provided by this organization has been discussed in brief in the above pages of the report. All the current process and existing gaps has been provided in this report. The nestle group is managed by various zones collectively known as EMENA (Europe, Middle East, and lastly North Africa), America and regions of Asia which provides major portion of food and beverage products with various exception of globally managed business which is inclusive of Nestle Water, Nestle Nutrition, Nestle Health science and Skin Health. Nestle professional is globally established business with a partner which claim to provide branded food and beverage products and solution that enables operators to innovate and delight the needs of consumers. Nestle professional beverage and products related to food which ultimately provides innovation and delight to their consumers. Nestle claims to have some joint venture with some cereal partners. The benefits of this new system has been discussed in brief. Constituents and need of information system strategies has been discussed in details in the report. All the four types of problems have been discussed has been discussed in details in the above pages of the report. All the four type of cycle that is revenue cycle, expenditure cycle, conversion cycle and financial cycle has been discussed in detail in the above pages of the report. The history of Nestle and its successful story has been provided in details in the above pages of the report.

 

References

Ahlemann, F., Stettiner, E., Messerschmidt, M., & Legner, C. (Eds.). (2012). Strategic enterprise architecture management: challenges, best practices, and future developments. Springer Science & Business Media.

Bente, S., Bombosch, U., & Langade, S. (2012). Collaborative enterprise architecture: enriching EA with lean, agile, and enterprise 2.0 practices. Newnes.

Bernard, S. A. (2012). An introduction to enterprise architecture. AuthorHouse.

Bernus, P., Nemes, L., & Schmidt, G. J. (Eds.). (2012). Handbook on enterprise architecture. Springer Science & Business Media.

Bradley, R. V., Pratt, R. M., Byrd, T. A., Outlay, C. N., & Wynn Jr, D. E. (2012). Enterprise architecture, IT effectiveness and the mediating role of IT alignment in US hospitals. Information Systems Journal, 22(2), 97-127.

Fischer, R., Aier, S., & Winter, R. (2015). A federated approach to enterprise architecture model maintenance. Enterprise Modelling and Information Systems Architectures, 2(2), 14-22.

Foorthuis, R., & Brinkkemper, S. (2015). Best practices for business and systems analysis in projects conforming to enterprise architecture. Enterprise Modelling and Information Systems Architectures, 3(1), 36-47.

Franke, U., Johnson, P., & König, J. (2014). An architecture framework for enterprise IT service availability analysis. Software & Systems Modeling, 13(4), 1417-1445.

Gibson, H., & Akhgar, B. (2017, January). Towards an enterprise architecture framework for community policing. In International Conference on Global Security, Safety, and Sustainability (pp. 106-112). Springer, Cham.

Iacob, M. E., Meertens, L. O., Jonkers, H., Quartel, D. A., Nieuwenhuis, L. J., & van Sinderen, M. J. (2014). From enterprise architecture to business models and back. Software & Systems Modeling, 13(3), 1059-1083.

Jallow, A. K., Demian, P., Anumba, C. J., & Baldwin, A. N. (2017). An enterprise architecture framework for electronic requirements information management. International Journal of Information Management, 37(5), 455-472.

Närman, P., Buschle, M., & Ekstedt, M. (2014). An enterprise architecture framework for multi-attribute information systems analysis. Software & Systems Modeling, 13(3), 1085-1116.

Simon, D., Fischbach, K., & Schoder, D. (2013). An exploration of enterprise architecture research. CAIS, 32, 1.

Simon, D., Fischbach, K., & Schoder, D. (2014). Enterprise architecture management and its role in corporate strategic management. Information Systems and e-Business Management, 12(1), 5-42.

Zarvi?, N., & Wieringa, R. (2014). An integrated enterprise architecture framework for business-IT alignment. Designing Enterprise Architecture Frameworks: Integrating Business Processes with IT Infrastructure, 63.

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