GROUP 8

BELINDA FERNANDES (121202044)ABHISHEK NULI (121202024)

NAGENDRA BHARADWAJ (121202094)GURURAJ PATIL (121202074)

ADITYA TRIPATHI (121202022)S.N.LAVANYA (121202064)

ERP Implementation at CISCO

CISCO Systems Inc.

It was founded by two Stanford computer scientists in 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 on revenues and assets. Microsoft and Intel were the other big companies in this list.

Company Structure

John Morgridge was appointed CEO in 1988.He thought the firms in Silicon Valley

decentralized too 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.

IT at Cisco

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

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

Finance, manufacturing and order entry were supported by this software package.

CIO knew the company’s growth prospects were very good. So thought the software package wasn’t enough.

Apprehension towards ERP solutions

CIO thought the budgetary decisions IT expenditure should be taken by the functional areas not the IT dept.

Unless they ask, IT won’t do anything.

ERP solutions’ implementations often turned into “mega” projects and take up lot of time and money of the organization.

Problems faced with the legacy applications

Company’s annual growth rate was 80%. Transaction rate had increased drastically.The legacy systems did not have the capacity

to handle the load.Any attempt to improve the applications

would crash the system.IT department would spend its time repairing

the legacy systems. One day, it was corrupted and thus shut

down for 2 days.

Expected Benefits of ERP Implementation

They wanted an ERP that could maintain centralized structure of the company.

They wanted to put manufacturing, order entry and finance in one place. They wanted an ERP that could do it.

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

They wanted an ERP that wouldn’t have to be modified according to the business needs.

Pre-implementation Steps

Select a good integration partner to help in selecting a good 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 KPMG’s 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.

Critical Success Factors

They tested it thoroughly and made the required modifications immediately wherever needed.

They knew what the software could or couldn’t support.

They worked together in a tight team and stuck to the schedule.

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

Areas Where Cisco Was Lucky

On the day of the presentation to board for project approval, the legacy system crashed. It helped the IT dept. to convince the board members faster.

Cisco’s contract with the hardware vendor for capability of hardware rather than specific configuration helped in keeping costs low.

The Oracle and KPMG teams were always with them and put in their 100% even when they weren’t required to.

Hardware company’s president sponsored the final stage. All the additional costs were borne by the hardware vendor company from its own pocket.

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