Cisco System Inc Implementing Enterprise Resource Planning ERP
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Cisco System, Inc.: Implementing Enterprise Resource Planning (ERP)
Cisco faced the need for information systems replacement based on its significant growth potential and its reliance on failing legacy systems. This case chronologically reviews the diverse, critical success factors and obstacles facing Cisco during its implementation of ERP. In evaluating Cisco System's approach to implementing Oracle's Enterprise Resource Planning (ERP) software product - I will focus on where management was particularly savvy in contrast to where it was the beneficiary of good fortune. I will also, discuss the complexities of implementing large-scale information systems as well as, to illuminate some of the positive and negative steps taken by a leading company in its own implementation.
History of Cisco
Cisco System, Inc. was founded in 1984; became public in 1990
Primary product is the "router":
hardware & software that control Intranet & Internet traffic
Rise of the Internet made Cisco one of the top companies
History of IT at Cisco
Cisco relied on Unix-Based software package to support its operations: Financial, Manufacturing & Order Entry
The system lacked reliability and the ability to expand
Cisco's CIO (Chief Information Officer) Pete Solvik knew they needed a change however he wanted to avoid an ERP project
Initial Approach:
Let each functional area determine when and how it would upgrade.
Cisco Defining Moment
Little progress was made in following Solvik's approach
Finally Cisco's entire system failed leaving the company out of operation for over two days.
Cisco realized that simply "Band-Aiding" the system wasn't going to work, an ERP project was the only way.
An Investigation team was put together
Regardless of what they did, it had to be quick (Big-Bang) and as simple as possible (Standardization)
ERP is an extremely challenging and costly venture, which traditionally runs over budget and behind schedule...