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6/3/12
Cisco Systems:Implementing
Customized ERP inNine Months
By:Rahul Ahuja
Monika SinghArun Kumar
Shilpi Jain
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CISCO SYSTEMS
INCType Public
Founded San Francisco, California, U.S.(1984)
Headquarters San Jose, California, U.S.
Area served Worldwide
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Analyze the Problem inExisting System:
Existing System: UNIX-basedsoftware package.
Problems:
i. Unable to meet the requirements ofcompanys rapid growth.
ii. Did not provide: Degree of
redundancy, reliability &
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va ua e er a veSolutions:
Decision of new systemimplementation was made based on
the factors - Less time, Lowcustomization & High priority.
The company had two optionsavailable:
To purchase single ERP system
Upgrading the existing legacy
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What is ERP?
Enterprise Resource Planning (ERP) isa system which brings all the decisionmaking information from all the
departments in a company into onesingle place in order to increaseefficiency, productivity and profit of
the company.
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ERP Block Diagram:
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Benefits of ERP:
Streamlining processes and workflowswith a single integrated system.
Reduce redundant data entry andprocesses and in other hand it sharesinformation across the department.
Establish uniform processes that arebased on recognized best businesspractices
Improved workflow and efficiency
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delivery, increased quality, shorteneddelivery times
Reduced inventory costs resulting frombetter planning, tracking andforecasting of requirements
Turn collections faster based on bettervisibility into accounts and fewerbilling and/or delivery errors
Decrease in vendor pricing by takingbetter advantage of quantity breaks
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Select Consulting:
Cisco decided to involve a consultingpartner that would:
Provide consulting services. Also help to choose ERP vendor.
KPMG appeared to be the idealpartner.
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Select ERP Vendor:
Through a rigorous process ofselection, Oracle was chosen forfollowing reasons:
Better manufacturing capability.
Promises of long-term functionalitydevelopment.
Geographical closeness to Cisco.
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u e , c e u e eOutlook:
Budget: Approximately $15million.
Schedule: Nine months.
Outlook:
Institutionalize a business model
for the organization.
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Implementation Team:
Executive Steering CommitteeComprised of management from Cisco, Oracle
& KPMG
Project Management Office(PMO)
Comprised of Ciscos Business Project Manager,KPMGS Project Manager & the Projectmanagement Team from Oracle
Order Entry
Cisco BusinessLeader.Cisco systemleader.10-20Personnel fromCisco.1 IT consultant
from KMPG.1 IT consultant
Cisco BusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 IT consultantfrom KMPG.1 IT consultant
Cisco BusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 IT consultantfrom KMPG.1 IT consultant
CiscoBusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 ITconsultant
CiscoBusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 ITconsultant
Manufacturing
Finance
Sales/reporting
Technology
MonitoredProgressof PMO
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Develop the System inPrototype:
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Implementation as broken into aseries of phases called ConferenceRoom Pilots.
CRP0:
i. Training Ciscos Employees onOracle Package.
ii. Spelling out 80 % of the
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CRP 1 (Built on CRP 0):
Customization of CRP 0, accordingto the requirements of thedepartments, supported by Oracles
5 modules (Order Entry,Manufacturing, Finance,Sales/reporting, technology).
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CRP 2 (Enhancements,Perfection & Testing):
Enhancement of CRP 1 to addfollowing features:
Incorporation the new after salessupport package.
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CRP 3:
Load testing the entire project.
Assessing the date when the systemcould start operation.
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a s a y sCorrection:
Initial Instability:
v On an average, system went downonce a day due to followingproblems:
Primary Problem: HardwareArchitecture
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Correction:
Need to purchase additionalhardware, but this increased theproject expenditure.
Cisco pulled an attractive deal topurchase a promised capability,
rather than specific configuration