Cisco Systems, Inc Final

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Cisco Systems, Inc.Implementing ERP

Group 1 :

Ajesh G.S.

Akanksha GuptaAlekhya Kasturi

Anagh Dutt

Anuj Singla


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INTRODUCTION

Founded by two Stanford computer scientists in 1984 It subsequently went public in 1990 Primary product was Router With rise in internet usage, the demand for Cisco products grew ra In 1997 entered into elite club of fortune 500 Among top 5 companies in return on investment and in return on a Microsoft and Intel were the other big companies in this list Exceptional growth in 1998 as companies market capitalization passed

$100 billion mark (15 times 1997 sales)

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CISCO SYSTEMS INC.


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IT Department at Cisco

Pete Solvik joined as CIO in January 1993

Running a Unix based software package to support core operating transactional process of the company Package was majorly supporting three functional areas

Financials Manufacturing Order Entry

Biggest customer of the software vendor

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Key StakeholdersPete Solvik, CIO

John Morgridge, CEO

Carl Redfield, SVPRandy Pond, Director, Manufacturing

INTEGRATION PARTNER

Mark Lee, Program Manager

ERP VENDOR


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Why ERP? Legacy system running on Unix Functional areas supported by different packages

Largest customer for its software vendor Legacy system unable to handle 80% annual growth; heavily customised Higher degree of reliability needed; band-aids

Solvik didnt want to implement ERP Each functional area would have freedom however these would have a common architecture and databases Concerns about ERP Implementations becoming a Mega Project Implementation of ERP often requires tweaking of core business processes to match the system requirements The modifications required in the ERP system from time to time add to the already high project expenditure

High cost, High risk involved (chance of being fired), so no one wanted to volunteer Failure in January, 1994 leading to a two-day shutdown was the last straw

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ERP Implementation Solvik & Redfield brought in KPMG as the integration partner for selecting th

ERP solution 20 member team created and did MR; Oracle selected finally after 75 days sin

inception of project Expected project cost: 15 million USD Expected time to go live: 3 quarters Team formed; one each from KPMG, Oracle and Cisco

Wanted it to be implemented before End of FY 95, i.e. before auditing began Legacy system could not support day to day operations any longer Unnecessary diversion of resources

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Key Success Factors Announcement of ERP implementation as a top priority project (one of top seven

by the CEO Best people in the industry involved in the project including KPMG and Oracle Systematic and Structured approach in selection of vendor and software Early involvement of service engineers in the requirement planning resulted in

successful adoption of the new applications by the users Correct estimation of time, money required for the project along with superior pro

management

Lessening customization was a crucial success factor and resulted in risk mitigatio Involvement of KPMG, one of the best consultancies in business Avoiding Phased Implementation which enabled quick and efficient implementati Hardware contract was not a function of amount of hardware but was a function o

capability. Hence the risk was transferred to the vendor

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Learning

QA teams could have been effectively used Stress tests should have been done System integration testing should have been done

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THANK YOU

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Documents

Cisco Systems, Inc Final