Case Study: Cisco ERP

Implementation

Background

Running a UNIX-based software package to

support its core transaction processing

Financial

Manufacturing

Order entry systems

Each department was working independently

Background-Problems

The application didn't provide the degree of

redundancy, reliability, and maintainability

Too customized software

Even an upgradation from their current

software vendor, could not suffice for their

changing needs.

The current system was not going to be

sufficient to keep up with the company’s rapid

growth

ERP

Less time

high priority low customization

Requirements from new system

Did Cisco spend enough time to

configure the ERP system?

1. They were in a hurry

Choosing the candidate,

Oracle

1. Better manufacturing capability,

2. Number of promises

3. Motivation

Budgeting

Develop a formal business case

Focus on the issues

Cisco had little choice but to move.

Did the compressed configuration

phase negatively impact the quality of

the system?

Implement as fast as possible

Compress 5 day two 16-hour trainings

“Tiger team”

Impossible to avoid changes during CRP0

Incomplete testing

Performance below expectations

Did the compressed configuration

phase negatively impact the quality of

the system?

CHALLENGES

Business processes which were to be supported

Costs drove-up

Aftersales support with ERP

Data warehouse

Was Cisco smart or lucky with its ERP

implementation?

Smart because

Clearly defined goal

Enrollment of competent employees

Wise selection of business partner (KPMG)

Cautious choice of vendor (Oracle)

Skipping approvals

Use Rapid Prototyping method

Was Cisco smart or lucky with its ERP

implementation?

Lucky because

Approval by the board

Not diligent financial analysis

Contract concept in favor of Cisco

Commitment of partners

Mostly smart, and a bit lucky

What can top managers do to

maximize chances for success here ?

What was done

Giving a high priority to the project

Created strong synergy among the departments

Teambased desicisions

Focused on keeping the team motivated

What can top managers do to

maximize chances for success here

What could be done

Extended trainings

Improve testing phase

Realize the problem sooner

Should they have customized the

package to match business processes?

Customization can be also userfriendly and mitingate

risk for the longterm approach

Altough, it is difficult to control the project scope by

turning down customizations.

Customizing ERP system adds risk, time, and cost to

the project.

ERP Successful implementation

Top

management

support

Using

foreign

knowledge

Trainings

Employees

engageme

nt

High priority

Testing

Vendor

Support

Summary

How well?

• On time

• Within budjet

• According to the requirements

What had gone wrong

• Insufficient testing

• Vendors lost a lot of time and money

Would they be able to do it again

• Smart top management

• Convenient employees