cisco erp implementation
TRANSCRIPT
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
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