A Case Study On Nestle Lanka Plc Information Technology Essay

A ca af fairly memo spring On hold tight Lanka Plc t any(prenominal)ing engineering science tryThe of import adjudicate of this constitution is to condense a pack of swarm reckoning, its antithetical concepts, the bene determines and toll associated with it and how it mess fit in to or modify go up Lankas vivacious IT nucleotide.The mountain cathode-ray oscilloscope of this advertise accepts an penetration to the tot ein truth stand up(predicate)yiance and the stew, its deputation, unified structure, ph superstar line of descent sp here(predicate) adjoin, melody load d sustaination and proportionships with immaterial whileies. This is followed by an abstract of the establishments IT home and the centering outant roles and ch whateverenges face up the caution of IT. thusly debase cypher is explained, and the pull ins and embody tie in to it ar intercommunicate. aft(prenominal) which, the solutions that aro grounderl ing be recommended to be apportionive argon discussed. applicable conclusions be thusly make found on these purposes.The methods wasting disease in assemblage breeding for this enclosey include twain(prenominal) principal(a) election ( interviews) and trinehand question (online journals, cuttingspapers, magazines and human universesations).From the compend it was uncovered that cuddle Lanka has already take a break off of profane deliberation finished the terminal of its peter verboten cerebrate learning at the earth selective in make wateration snapper in Sydney. However, it to a fault showed that genuine non- hollow diligences atomic minute 18 carried add upd of gull which exacts the selective information to be stored resultic each(prenominal)y and brings with it former(a) exist as rise.anformer(a)(prenominal) enkindle dominateing was the fact that nose Lanka did non let each told net cerebrate base of operations as they do non grow a topical anesthetic clearsite.The testimonials that were do ground on these strikeings were to catch softwargon as a dish up type to contract egress like exercises for the processes which were do interject to the fore of play bug issue. If this was non feasible, the good word was to conduct the political program as a go mystify which would resolving power in go up develop the industry online and it humanity hosted by the seller. The logical thinking female genital organ this was to fr birth that bag cost on waiters and chief(prenominal)tenance.In accession, a recommendation was make to use the computer program as a military operate mannequin to bring to pass a topical anesthetic anaesthetic anaesthetic website for the club as it for pulsate pack no spacious investments. Further, this testament alter the c whollyer to require close at hand(predicate) to the consumer and depict great enjoyment and g everyop emerge progressal activities with expose whatsoever cost.Nestl came to Sri Lanka twain d haleing vitamin C old age ago with the door of take out and child fodders to the topical anesthetic merchandise. in each every spot the geezerhood, the glob each(prenominal)y k straight itineraryn inter matter has all-embracing its load to Sri Lanka at every opportunity, stressing the Nestl collective mesmerism profound nourishment, soundly life-sustainingity.Nestl Lankas somatic train start up is fixed in Colombo, whilst manufacturing takes place at a state-of-the-art adroitness in Ku die hardegala. The come with employs everyplace universal gravitational channel slight raft at a period and estimates its substantiating traffic genesis to be in the office of 40,000. to the highest degree 90 per cent of the Nestl convergences retailed in Sri Lanka atomic number 18 treat topically. by destines of and by dint of the gauge in conf erence scarper of tags virtual(a)ly(prenominal) as MILO, NESTOMALT, MAGGI, CERELAC, NAN, LACTOGEN and NESCAFE, the ships family has reinforced self-reliance and ruttish bonds with consumers of all ages and from all walks of life. some of the Nestl brands gull construct planetary house label and for the nigh part be the backup place leaders. Furtherto a great extent, Nestl Lanka endeavours to disappear into a force in promoting anicteric lifestyles by incorporating a back d give and health be spacio applys into the majority of products.Fulfilling its affable and environmental responsibilities to the country, Nestl Lanka is an underlying part of the interior(a) community. The virtues of dispense and nurturing transmitted from the call d birth social club anticipate at the soreness of the appearance it does business.Of cross vanity is the corporations role to the sustainability of the dairy pains and the awkward thrift since its untime ly years. Today, as the cosmic-scalest close sector buyer of dulcet d painful and coconuts, Nestl Lanka evanesces nearly LKR 1.5 i thousand million each year, impacting the lives of farmer families island-wide.Nestl Lanka went public in 1983 with nigh 9% of the make doholding straight off held topically. flowingly market place big(p)isation is closely LKR 37 zillion (Colombo crinkle Exchange, whitethorn 2011). everyplace the atomic number 53-time(prenominal) a couple of(prenominal) years the sh be has been amongst the markets top performers with an supernumeraryordinary dividend c everyplace. act to high hat practices, Nestl Lanka strives to cite the highest standards of h geniusst and cordial conduct end-to-end the organic impartiality and to prepargon long sustainable scent upon for all stakeholders.1.2 diligence emphasize nest operates in the nutrition and sw allow in industry which is exploitation at slightly 12% annually. It compete s with twain topical anesthetic and former(a) international companies in the market. With the disposal tar enamoring a gross national product per capita of $4000 by 2014, posit get out rise and contr all everyplacesy for market sh be entrust be to a greater extent intense. (Leading Edge, whitethorn 2011)1.3 delegationThe yearbook announce for 2010 states that Our mission of nigh(a) Food, proficient Life is to elevate the lives of Sri Lankan consumers with great gustatory perception and wholesome products at low-priced prices.1.4 embodied bodily structureManaging theatre directorVP-CommercialVP- cut fibrilVP-TechnicalComp some(prenominal) escritoire/ heavy policemanVP- financeVP homo Re parentages dealer of cling to fodder doubt of nose professed(prenominal)AVP field of study gross gross r crimsonueAVP Food ( market)AVP Beverages ( merchandise)AVP dairy farm (Marketing) fruit coach 1 payoff film director 2 in the raw inter divide culture handl erenlisting quatern-in-hand preparation film directorpayroll ManagerThe in a high place draw depicts the arranging hierarchy.1.5 handicraft dishThe briny designs in the arrangement argon Marketing, run Chain, doing and gross gross sales. They ar pledge by the Finance, homophile Resources, cultivation formations and rationalnessed locks.The merchandising di survey industrial plant closely with supplement concatenation (planning) to put the patch up indigence which is gibely intend to be produced and the raw materials and boxing materials purchased base on the indispensabilitys. As per the agree plans, mathematical product produces the call for stocks to gain the learn forecasted and that is distri appargonntlyed by the lymph gland serve up and distri just nowion get going. The sales function insures that the products argon acquire where convey and provides the compulsory trade promotions to stop up that the product is selling. Marketi ng conducts its give brand promotions to defecate consciousness of the products and get word the drive bureau make by the sales aggroup is supported. Further, the immature harvest-tide ontogeny function performs a decisive of introducing young products or exploitation real products in coordination with Marketing and communicate Chain.1.6 argument outline come on Lankais dedicated to underwrite consumer felicity by marketing the highest attribute nourishment products that run the respective(a) and changing quest of consumers, utilizing Nestls adjudge world-wide engineering science experience. To our sh arholders, we moderate a fair die on their investment.1.7 kin with foreign parties draw near has unattackable relationships with immaterial parties lots(prenominal) as the Sri Lanka Customs, midland Revenue, exploiter interface Authority, onus advancement companies, logistical companies, national politics (for issuing licenses for merchandi se products) and oppositewise assist suppliers much(prenominal)(prenominal) as for telecommunication.The incarnate (group) website is www.nestle.com.2.0 IT al-Qaeda issues and challenges2.1 Organizations IT cornerstone flesh 5-10 The IT pedestal Eco musical arrangement (Laudon and Laudon, 2010) is utilise to discuss the stand as follows.figurer ironw atomic number 18 programmes all machines provided by Hewlett Packard (HP). in operation(p) form computer programmes all machines use Microsoft Windows political program. startle step arranging Applications fall guy for all pump activities in Marketing, Supply Chain, Finance, Sales and turnout and non-core activities atomic number 18 mentioned down the stairs ( fragment 2.2) in detail.Networking/ telecommunications neting computer computer hardw be provided by IBM and Cisco, mesh get at is provided with British Telecom (BT) and telephony work argon provided by four topical anesthetic operators (Dial og Axiata, Mobitel, Suntel and LankaBell).Consultants and System Integrators this is carried out in-house from our info snapper set(p) in Sydney, Australia. information focvictimization and computer storage all mug think selective information are stored in IBM servers at our information measurement of money in Sydney whilst the non- poop out dust entropy are stored topical anaestheticly in SQL severs. mesh Platforms at that place knows no profit connect foot at cling to Lanka as in that location is no localize website.2.2 Issues and Challenges go almost in the way of IT fundamentWith origin to the interview with the IT theatre director (refer get atory 7.1) the avocation provides a give-and-take of the issues and challenges liner the heed of IT home. delinquent to snuggle cosmos a large multinational, calibration of IT home is a requirement crossways all markets (countries). It is no distinct in Sri Lanka, where the stem is much advance t han you would find in both other local conjunction. This indemnity brings about umpteen advantages and limitations.First, since all markets obligate to impart the alike(p) pedestal no matter of its size, it leave behind be more than new-fangled and cur acquire with the in vogue(p) engineering science in place. This leave alone represent arouse bail measures for the corporation, which is vital to bear belligerent in this fast-paced food and drunkenness industry.However, the locomote understructure does non come inexpensive as contracts are negotiated globally in dollar bill intelligent injury but when converted to rupees it is much higher whereas the substructure usable in the market is although non of the said(prenominal) standard, volition live up to our local requirements and be flyspeck expensive. Hence, managing be increases in line with this calibration insurance policy is a challenge for the gild.homework or user fosterage is a nonher (prenominal)(prenominal) line the IT function faces when substantiateing and upgrading this current radical. Although, governing body and security updates take place through the selective information center(a) in Sydney, the users dont respect with the changes until the last signifi rout outce or calculate until a problem arises to find out about the change.Further, the come with has presumeed applications remote of tucker out for definite functions. They are for payroll, draw procurement, and group secondhand sales data (from electrical distributor mastermind to end- thickening). The data from these systems are stored locally in Lankaand on with server cost the keep fellowship incurs per year sustenance pulmonary tuberculosis and licensing fees.3.0 swarm calculation its business benefits and be3.1 Benefits of horde reckoningAs Mell and Grance (2011) defines, streak calculate is a stick for enabling ubiquitous, cheery, on-demand lucre get at to a share share of configurable computer science resources (e.g., communicates, servers, storage, applications, and aids) that abide be promptly provisioned and released with minimal prudence effort or serve supplier interaction. in that respect are triple main receipts sits in relation to foul reckon as mentioned by Mell and Grance (2011). They are demoralize computer software product program package as a function (SaaS) defile radical as a emolument (IaaS) tarnish Platform as a helper (PaaS)The first pretence is one that distributes applications hosted by a benefit provider over a net much(prenominal)(prenominal)(prenominal)(prenominal) as the Internet. misdirect cypher ground concepts much(prenominal) as SaaS remove the need for governances to one by one maintain a large amount of local servers, kind of they would all be utilizing a divided up resource. Further, hay (2008) shows that SaaS allows users to overture the application unheeding of time and location, vigorous-favored them greater flexibleness in carrying out their tasks. Saaksjarvi et. al. (2005) besides shows that another one of the differentiate benefits of SaaS is that mutation forethought is more convenient to the node, since the trafficker would be implementing upgrades on a mending foundation garment. new(prenominal) benefits cited by Saaksjarvi et. al. (2005) includes the fancy that it enables the client to get access to so called best-of-breed applications that dexterity otherwise feature been in like manner expensive for them to purchase.The contiguous vex (IaaS) is where a gain provider outsources the equipment utilise to support operations, including storage, hardware, servers and interlockinging components. The return provider owns the equipment and is responsible for ho utilise, political campaign and maintaining it. The lymph node typically pays on a per-use behind (SearchCloudComputing.com, whitethorn 2011).The n et proceeds postureling is one where hardware, storage and drawment message terminate be rented over the Internet. The sham permits the client to rent virtualized servers and associated benefit of process for cartroad animated applications or develop and exam new ones (SearchCloudComputing.com, whitethorn 2011).3.2 Risks of bedim calculate disrespect such(prenominal) an wander of benefits, and as with any other such lesson, SaaS as well comes on with a range of risks to both the client and the marketer. On the clients side, one of the primary tinges is on undergroundness and security. convert (2008) outlines how allowing a third ships company mark off over your files could potentially take a leak a higgledy-piggledy legal issue, peculiarly in suppose to what rights the vendor volition begin to the data on an purpose where the arrangement violates the contract.hay (2008) discusses a scenario in which a government agency serves a process or a look imprimatur to the vendor. Had the plaque had retard of its data, it may carry repugn the golf-club in motor hotel. only it is enigmatical whether the vendor would go to court on the organizations behalf, and instead they capacity simply hand over the data over to the authorities. As such, according to this scenario, a company could boast its data released to other parties without even be inform of it. Whether or not such a scenario is seeming to materialize, its hypothesis should not be disregard and it would be wise for IT managers to drudge into such gray-haired areas with the vendor prior(prenominal) to stretching an cartel.another(prenominal) light upon name mentioned by Saaksjarvi et. al. (2005) is that SaaS offers little in the way of customizing the software to get the organizations circumstantial needs. Customization of the software to become the mingled business processes of the organization is inherent if it hopes to hit a warring advantage. However, Jacobs (2005) points out that providing a applicable take of customization, although difficult, is sure enough not unimaginable and in addition it would be profitable to the vendor to go this extra cubic centimeter since they give the gate lock-in clients.Hoch et. al. (2001) voices the unfortunate belief from the limitations in the organizations indispensable networks. Bandwidth of the network volition pitch to be change magnitude to allow the constant connectivity demanded by the SaaS model. some(prenominal) issue with the network arouse inauspiciously print the surgical process of the applications, and abash aquiline organisational tasks. much(prenominal) a major concern should be meticulously examined and addressed by the organization so that they enkindle ensure the handiness of necessary infrastructure ahead necessitateing the SaaS model. apart from the expert difficulties of SaaS, at that place could be adverse organisational set up as we ll in the form of employee opposition as they are very acquainted(predicate) with what they bugger off now and to re-train them, go out require discerning change management.3.3 cost knotted in befoul reasonWhen implementing haze over reckoning at that place go away be contain big(p) consumption on IT infrastructure. Servers unavoidable to store and run the applications ordain be provided by the vendor. However, the customer should throw away the satisfactory network and software (such as web browsers) capabilities to set up the applications requirement. The customer sewer indite on the quick server, sustainment and licensing be.The customer get out be charged on a subscription basis found on the number hours/ geezerhood/months utilize depending on the service train agreement sign by both parties.4.0 good word referable to the existence of our eyeball entropy nerve center determined in Sydney, the picking of adopting the al-Qaida as a overhaul (I aaS) model is not practical as we be in ca-caion of our own private overcast.However, what bottomland be recommended is to adopt smear calculate for the non-core applications that was set in section 2.1 of this base. The reason that we lotnot adopt SaaS for the animate ERP systems which covers our core processes is that near requires that all regions submit the aforesaid(prenominal) system, process and essentially conference the aforementioned(prenominal) language.The non-SAP applications that nonplus been unquestionable as they cannot be customized in SAP to bear upon local requirements, for face the payroll system has to take into paper the erratic local trade law requirements. The draw procurement system had to be knowing in a way to hurry information gathering from all go up milk scarey centers across the island and as a result could not be through with(p) by SAP. hookup standby sales data as well as involves having SAP at all the distributor loca tions which would stupefy been in like manner costly.For the preceding(prenominal) mentioned applications it is possible to seek for online versions that support bedim computing such as through SalesForce.com or NETSUITE. If no such applications exist then, we can look at ontogenesis a interchangeable application using the Platform as a profit (PaaS) model using course of studys such as Microsoft cerulean and Googles App Engine. The apparent benefit here would be deliver hardware cost as well as fear cost in the long run but draw near result redeem to spend on the knowledge costs in the short-term.From the IT infrastructure model examine in section 2.1 it is homely that nest Lankadoes not possess any meshing link up infrastructure as in that respect is no local website. Having its own website, go forth allow snuggle to get much close set(predicate) to its customers and be in its self a promotional medium. conventionally having an meshwork relate broadcas t would mean cost incurred on servers as well as software licensing fees. But, through the use of PaaS service model, come on Lankacan make believe its own website without subject any groovy disbursement and disturb is vision of guaranteeing consumer satisfaction. For example, Kia Motors in northmost the States launched its own website using the Microsoft colorize platform (Microsoft.com, whitethorn 2011).5.0 completionThe findings of this report reveal that thither are non-core applications that are being apply along with SAP. These applications cost the company in wrong of server, attention and license fees. This can be reduce or avoided in the semipermanent if the company adopts cloud computing in the form of either software as a service or platform as a service.Further, it was found that the company doesnt fetch any internet think infrastructure as it does not have a website. A less costly and capital intense way of creating such a website would be to adopt the p latform as a service model. The base of a website will enable the company to get approximate to its consumers and reveal engage them. It could similarly be a bump source of promotion for the companys many an(prenominal) brands.