Group H:

Krista, Christine, Sara, Dorothee

Agenda

3 Goals of Our Presentation

•To better understand how ERP has impacted Celestica’s operations

•To draw similarities and differences between the ERP systems at Celestica and Nestle

•To view the website

Who is Celestica?

•An electronics manufacturer based in Toronto

•Offices across Asia, Europe and North America

•A recognized leader in quality, technology and supply chain management, Celestica provides a competitive advantage to its customers by improving time-to-market, scalability and manufacturing efficiency.

Systems at Celestica

•ERP systems worldwide are not identical ~ best-of-breed approach

•Asia: SAP/R3 Other Offices: System Software Associates Inc.

Locations Nestle Celestica Worldwide SAP’s ERP System

mySAP.com SAP R/3 mySAP CRM my SAP SCM mySAP HR mySAP Business

Intelligence mySAP Product

lifecycle management

N/A

North America/Europe

N/A * SSA’s Business Planning and Control System * SAP’s ERP Product data management software * i2 Technologies Inc. * Manugistics Inc. * Matrix, from Matrix One ESource from Aspect Development * IBM e-business software

Asia N/A * SAP’s R/3 Modules Financial Accounting Controlling Materials Management Sales and Distribution Production Planning

Hardware: Compaq Alpha servers Database: Oracle 8.04 Operating System: Windows NT4

Purpose

•Improving Overall Organizational Performance

•Previously it had a segmented database ~ need for integration

•Improving Service Delivery

•‘maternal velocity’ ~ moving material and products through the system

•Objectives

Foster Integration between:

•Systems in Asia, Europe and North America

•Companies that Celestica had merged with

•The various ERP system within each region

Environmental Forces

Managerial:

•Each system had to be ‘mission matched’ to Celestica’s mission and activities

Technological:

•Short product life cycle of 6-9 months

Organizational:

•Many recent acquisitions = many new factories & growing range of products

Market Competition

•Volatile market ~ quick response needed to remain competitive

Comparison

Reasons for Change

Nestle: Management Team was the driving force ~ vision of a single system for all locations = economies of scale

Celestica: Technology was the driving force ~ need for efficiency in its processes so it could focus on its core activity of manufacturing high tech parts. = integration

Outsourcing

Celestica North America implemented an IBM WebSphere Portal Experience

Celestica N.A chose the outsourcing option because:

- Celestica is an IBM spin-off- Rapid application development- Cost efficiency, ease of integration

Celestica Asia implemented the SAP R/3 because:

- Strength SAP Hong Kong’s implementation team- Support of local partner, Oasis- Also use the consulting support

Reason for Success

Celestica North America succeeded in integrating their operations with its own since:

- It met with new staff to discuss the task and explain what was negotiable

- The new IT teams trained new employees in the new facilities

Celestica Asia succeeded in the implementation of the SAP solution because:

- The project team included managers from different department

- Good coordination between the project team and consultants

- The project team was supported by the top management

Managerial reasons:

Reason for Success

Celestica North America succeeded because:

- The absorption was fast

- It standardized the business process and requirements before implementing the software

Celestica Asia succeeded because:

- Analyzed the business needs, process before implementing the software

- Fast implementation, 9 months

- Project realized on time and within budget

Organizational reasons:

Nestlé USA Celestica Asia

SAP’s ERP System SAP R/3

Use outsourcing SAP team Use SAP in-house team, outsourcing with Oasis consultants and SAP

consultants

Implementation in USA Implementation in Hong Kong, China, Thailand and San Jose

Don’t involve their employees in the business process, team formed by top

business executives and senior IT people

Involve employees, team formed by managers from different departments

No relationship, communication between team and employees

Close relationship, coordination and communication between team,

employees and consultants

Long implementation, 5 yearsDon’t respect deadline and off budget

Fast implementation, 9 monthsOn time, within the budget

Implemented software before analyze change management and business

process

Analyzed business needs and process before software implementation

Comparing Nestlé USA and Celestica Asia SAP implementation

Managerial Challenges

•Time constraints

•One face to the customer

•Clear lines of communication

Technological Challenges

•Big- bang approach

•Integrating acquisitions

•Technological capabilities of their suppliers

Organizational Challenges

•Transition process for employees

•Leverage the skills

Comparison Between Nestle and Celestica

•Both companies are known for acquiring new firms

•Volatile and fast paste environment

•Worldwide over a span of 5 years vs. particular regions with much shorter timelines

•Similar benefits and downfalls for both companies

•Efficiencies and improving competitive advantages

Celestica’s Results

•Efficient information infrastructure

•ERP system will make procurement more efficient and drive down material costs.

•Employee empowerment

•Ability to foster growth in the market

Thank You