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ERP and Change Management at Nestle

A year after signing a $200 million contract with SAP and over $80 million for consulting services and maintenance, Anne Alexandre, an analyst for HSBC securities in London, downgraded her recommendation on Nestlé SA stock. Although the Enterprise Resource Planning (ERP) project will probably provide long-term benefits, she was concerned with what short-term effect the project will have on the company. She believes “It touches the corporate culture, which is decentralized, and tries to centralize it. That"s risky. It"s always a risk when you touch the corporate culture.”