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    MFT5SEIM07 Enterprise Resource Planning: MBA (FULL TIMЕ) 2019-21

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    Yashashvi Rastogi
    Cisco Systems implemented Oracle's ERP software to replace its legacy UNIX-based system that was unreliable and experiencing failures. The $15 million ERP project was led by Cisco's CIO and functional heads to integrate departments and enable consistent data transfer. The transition was well-managed and employees were committed to the new system. Cisco selected Oracle due to its manufacturing processes and proximity. The implementation was completed on time and budget through a phased "conference room pilot" approach and strategic vendor agreements.

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    MFT5SEIM07 Enterprise Resource Planning: MBA (FULL TIMЕ) 2019-21

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    Yashashvi Rastogi
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    Cisco Systems implemented Oracle's ERP software to replace its legacy UNIX-based system that was unreliable and experiencing failures. The $15 million ERP project was led by Cisco's CIO and functional heads to integrate departments and enable consistent data transfer. The transition was well-managed and employees were committed to the new system. Cisco selected Oracle due to its manufacturing processes and proximity. The implementation was completed on time and budget through a phased "conference room pilot" approach and strategic vendor agreements.

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    Cisco Systems implemented Oracle's ERP software to replace its legacy UNIX-based system that was unreliable and experiencing failures. The $15 million ERP project was led by Cisco's CIO and functional heads to integrate departments and enable consistent data transfer. The transition was well-managed and employees were committed to the new system. Cisco selected Oracle due to its manufacturing processes and proximity. The implementation was completed on time and budget through a phased "conference room pilot" approach and strategic vendor agreements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views3 pages

    MFT5SEIM07 Enterprise Resource Planning: MBA (FULL TIMЕ) 2019-21

    Uploaded by

    Yashashvi Rastogi
    Cisco Systems implemented Oracle's ERP software to replace its legacy UNIX-based system that was unreliable and experiencing failures. The $15 million ERP project was led by Cisco's CIO and functional heads to integrate departments and enable consistent data transfer. The transition was well-managed and employees were committed to the new system. Cisco selected Oracle due to its manufacturing processes and proximity. The implementation was completed on time and budget through a phased "conference room pilot" approach and strategic vendor agreements.

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    MBA (FULL TIMЕ) 2019-21

    MFT5SEIM07 Enterprise Resource Planning

    Learnings of CISCO Case Study

    SUBMITTED TO:
    Prof. Nityesh Bhatt

    SUBMITTED BY:

    Harisankar R : 191225
    Bhanu Pratap Singh Rathore : 191318
    Nili Vachhani : 191336
    Yashashvi Rastogi : 191365
    Srinivas Padmanabhan : 191454

    Date of Submission: 1st September 2020


    CISCO SYSTEMS INC. IMPLEMENTING ERP

    The case reviews the approach taken by Cisco Systems to implement Oracle’s ERP
    software. Cisco’s legacy environment encountered failures and reported short comings on a
    regular basis. Unauthorized accessing of data in the core application led to database malfunction
    and corrupted Cisco’s entire database. This led to a 2-day complete shutdown which initiated the
    requirement of implementing a software that could integrate different functional heads and
    enabling consistent data transfer and uninterrupted operations. Cisco was foreseeing itself as a $5
    billion company and the current UNIX based software was redundant, unreliable and needed
    continuous maintenance. Initially, Pete Solvik, CIO, Cisco was of the opinion that
    implementation of software and its budgetary decisions must be directly made by respective
    functional areas and the IT department would only act as a pivot. Later, Randy Pond, director of
    manufacturing pointed out that spending $5-$6 million in buying a package and taking more than
    a year to implement the same would disrupt the entire service levels of Cisco and was not
    justifiable. In order to tackle these shortcomings, Pete Solvik, CIO of Cisco along with other
    functional heads implemented a $15 million ERP project.

    KEY LEARNINGS:

    ✓ A UNIX based software was initially used for all the transactional processes. All the
    functional departments have been using this system since the inception of Cisco. The
    shift to a completely new integrated ERP software from the legacy system was managed
    with precision by the implementation leaders. The transition was in fact one of the
    objectives for Cisco and all the employees were made fully aware about the project. As a
    result, the resistance to change was very limited and every employee involved was
    committed to attain the objective

    ✓ The authorities recognized the problem and developed a realistic plan of attack. They
    maintained an ideal balance between time, cost and scope of the software. Even after
    having unclear and unplanned ad-hoc request in the modification, they limited the
    customization and stayed within the initial project budget. Even though the design phase
    was planned poorly, the entire project was completed within the duration of 15 months

    ✓ The strategical implementation and selection of Oracle proved to be a win-win situation


    for both the companies. Cisco selected Oracle due to its strong manufacturing process
    and close geographical proximity. This removed any communication gap and helped in
    fast implementation of the software. Also, this offer resulted into a long-term partnership
    between both the companies

    ✓ One of the reasons for the successful implementation of ERP software was that all the
    areas of the company were involved in the selection process. A team of 20 people did
    thorough research about ERP software providers and decided on Oracle’s ERP software
    after 75 days of proper research

    ✓ The entire approach in the implementation of ERP was focused on cost and time. Initially
    with the help of KPMG, Cisco managed to narrow down their requirement to five
    packages in two days and then shortlisted Oracle and one other company as prime
    candidates. Cisco was then determined to complete the implementation within the
    stipulated budget of $15 million

    ✓ The implementation was carried out in phases called “Conference Room Pilots” which
    drastically reduced clutter and unwarranted emergencies. Different teams simultaneously
    worked on different levels of implementation thereby reducing wastage of time

    ✓ Another major implementation advantage was that Cisco had a strategic agreement with
    one of its hardware vendors. Cisco purchased hardware on the basis of promised
    capabilities rather than on specific configurations. Due to this the responsibility of
    bugging and fixing was on the vendor. This agreement drastically reduced the
    implementation expenditure

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