erpimplementationatcisco-120923024304-phpapp02

8/12/2019 erpimplementationatcisco-120923024304-phpapp02

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A D I T Y A T R I P A T H I ( 1 2 1 2 0 2 0 2 2 )S . N . L A V A N Y A ( 1 2 1 2 0 2 0 6 4 )

ERP Implementation at CISCO


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CISCO Systems Inc.

It was founded by two Stanford computer scientistsin 1984.

It subsequently went public in 1990.

It manufactures routers. With rise in internet usage, the demand for Cisco

products grew rapidly.

Fortune 500 ranked Cisco among top 5 for return onrevenues and assets. Microsoft and Intel were theother big companies in this list.


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Company Structure

John Morgridge was appointed CEO in 1988.

He thought the firms in Silicon Valley decentralizedtoo quickly and subsequently lost control.

He maintained a centralized organization. Only product marketing and research and

development were decentralized.

Finance, human resources, manufacturing, IT,customer support, etc. were centralized.


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IT at Cisco

Cisco was a $500 million company using a UNIX-based software package for its core transactionprocesses.

This software package was suitable for companieswith $50 million to $250 million revenue and not$500 million.

Finance, manufacturing and order entry weresupported by this software package.

CIO knew the companys growth prospects were verygood. So thought the software package wasntenough.


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Apprehension towards ERP solutions

CIO thought the budgetary decisions IT expenditureshould be taken by the functional areas not the ITdept.

Unless they ask, IT wont do anything.

ERP solutions implementations often turned intomega projects and take up lot of time and money ofthe organization.


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Problems faced with the legacy applications

Companys annual growth rate was 80%.

Transaction rate had increased drastically.

The legacy systems did not have the capacity tohandle the load.

Any attempt to improve the applications would crashthe system.

IT department would spend its time repairing the

legacy systems. One day, it was corrupted and thus shut down for 2

days.


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Expected Benefits of ERP Implementation

They wanted an ERP that could maintain centralizedstructure of the company.

They wanted to put manufacturing, order entry and

finance in one place. They wanted an ERP that coulddo it.

Capacity of the ERP could be improved in the long-run as the size of the business increases.

They wanted an ERP that wouldnt have to bemodified according to the business needs.


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Pre-implementation Steps

Select a good integration partner to help in selecting agood ERP solution and vendor.

They chose KPMG. Do market research and ask other companies what they

know about ERP systems. Based on market research and KPMGs advice, they

selected Oracle. Decide a price and time needed for implementing the

ERP.

Get board approval for funding the project. Build ERP implementation team one each from KPMG,

Oracle and Cisco.


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Critical Success Factors

They tested it thoroughly and made the requiredmodifications immediately wherever needed.

They knew what the software could or couldnt support.

They worked together in a tight team and stuck to theschedule.

Employees gave their 100% in the project to make surethey did quality work


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Areas Where Cisco Was Lucky

On the day of the presentation to board for projectapproval, the legacy system crashed. It helped the ITdept. to convince the board members faster.

Ciscos contract with the hardware vendor for capabilityof hardware rather than specific configuration helped inkeeping costs low.

The Oracle and KPMG teams were always with them andput in their 100% even when they werent required to.

Hardware companys president sponsored the final stage.All the additional costs were borne by the hardwarevendor company from its own pocket.


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THANK YOU

Documents

erpimplementationatcisco-120923024304-phpapp02