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Essay / Research Paper Abstract
This 3-page paper provides a case study of Novartis, and the issues the company has had with implementation of enterprise software. Bibliography lists 5 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTnovainfo.rtf
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Unformatted sample text from the term paper:
arm) and the new SAP enterprise system installed worldwide. The U.S. accounts payable and strategic sourcing departments blamed an upgrade to the SAP R/3 financial modules for the source of
its financial woes, which was including the holding of payments and a backlog of overdue bills. Novartis IT staff, on the other hand, felt that the unpaid invoices werent entirely
the fault of the new SAP software, pointing to the fact that the companys existing process for invoicing was getting in the way. It wasnt a true requisition-to-pay process, which
meant glitches kept cropping up. After IT and Novartis Pharmaceuticals spent months together, trying to cooperate and understand the others needs. The results involved centralization of the Novartis purchasing
departments to streamline the process and obtain larger discounts from suppliers. The second involved a new collaboration for accounts payable, IT and strategic sourcing to work together for a better
and more rapid business transformation. The Novartis case is a classic situation of a company enthusiastically updating all of its software and enterprise
systems, without taking into account the fact that the corporate culture around these brand, spanking new systems havent changed (Burns et al, 2009). Its also classic in the sense that
not enough time or effort was dedicated to training or planning (Chen and Yang, 2009). Novartis problems with the requisition-to-pay process was due, in part, to the new upgrade. But
it was also due to the fact that the old system of requisition, logging and invoicing was still in use, despite the SAP R/3 upgrade. The older, more settled, culture
didnt change, though the software did. Throughout the process, management, technology and organizational factors were involved, so its difficult to put the blame
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