Presented By:- 

Cisco Systems Inc. Group 10

Group 11

Case Study
INTRODUCTIO
N
Cisco was founded Corporate Principle product
in 1984 by Leonard headquarters from inception was
Bosack and Sandra located in San the internetworking
Lerner Jose, California  router

Secured investment
First product shift in Don Valentine, first by demanding a
1986 major investor controlling interest
in company

Promptly hired John

Morgridge as CEO
GROWTH

1990’s companies began Adopted strategy of

John Chamber took over
installing local area Systematic Acquisitions
in 1995
networks (LANs) and Strategic Alliances

Leading supplier of
As of 1993, Cisco had
products capable of
acquired 70 companies -
handling voice, data and
50% of the company 
video
 • Assemble a broad product line so Cisco can serve as one-stop
shopping for business networks.
• Systematize acquisitions as an efficient business process. 
BUSINESS • Set industrywide software standards for networking. Cisco
STRATEGY issued IOS (Internetwork Operating System) licenses.
• Pick the right strategic partners. Cisco worked with Microsoft to
create an industry standard for security over the network; with
MCI to deliver premium Internet services; and with HP to
develop and sell Internet-based corporate computing systems
built with HP and Cisco products.
 Key Challenges

Cisco’s Information
The current systems could
Technology (IT)
not scale to support Cisco’s
department was too
growth, nor were they
traditional in being viewed
flexible nor robust enough
as a cost center reporting
to meet management
through the finance
requirements.
department.
 • IT-reporting relationship was changed
from accounting to the Senior Vice
President of Customer Advocacy.
• IT budget pertaining to the functions
were returned to the functions, leaving
Changes made to just a small portion in the G&A (General
and Administrative) account.
address challenges • The central IT steering committee was
disbanded and replaced with a
structure whereby IT investment
decisions on application projects were
pushed out to the line organization but
still executed by central IT.
What factors led to
implementation of ERP?
• Failure of Cisco’s legacy environment showed the short comings
in existing systems
• An unauthorized method for accessing the core application
database malfunction, corruption Cisco’s central database
• The company was largely shutdown for two days, this major
shutdown made the company realize that its systems were on the
brink of total failure
• It would take too long to get applications in place by making
decision and implementation separately within group
 Cisco realized implementing ERP will require very strong
team to work for the and would also need strong partners

Cisco required a partner with great technical skills and

business knowledge, so they select KPMG as their
integration partner
What factors led
to Team of 20 people were formed to identify the best software

implementation packages

of ERP?
The team’s strategy was to build as much knowledge as
possible by leveraging experience of others

By tapping research sources such as Gartner group, Cisco

narrowed the field to five packages within two days
Selecting ERP
Product
After week of evaluating the packages at a high level, team
decided on two prime candidates: Oracle and other major plyers
in ERP market

After Cisco’s analysis of the request for the proposals (RFP)

responses, each vendor was invited for three-days software
demonstration

The selection of Oracle was based on three major decision points:

• The project was being driven pretty strongly by manufacturing and Oracle had
better manufacturing capability than other vendor
• Oracle made number of promises regarding long term developments in the
functionality in the packages
• Flexibility offered by the Oracle as the headquarters of both were 20 miles away
from each other
Going onboard – • Two major questions:
Implementing the ERP • Time?
• Cost?
Targeted
deadlines
Estimated Budget

• Instead of financial analysis,

CISCO focused on the
benefits derived by
implementing the ERP
system.
Reasons behind successful
Implementation
• No.1 agenda of the company, gave priority across all
functional areas. 
• Company believe in standardisation.
• Best people across all the industry in the project.
• Team organisation and culture.
• Systematic and structured approach in selection of
software and vendor.
• Correct estimation and high-class project of management.
• High centralization and top to bottom approach of the
company. 
 Web development began in 1990 with Mosiac 

Move to Netscape 

Web enabled applications 

INTERNET AND Interactions with customers, partners and suppliers were network based 

INTRANET: From Cisco connection online user navigated to the information work.
APPLICATION Contribution of information directly to do business.

Business process built around its global intranet . Interaction through

intranet to address business issues and customer needs. 

Links to strategic vendors and customers allowed Cisco to collaborate

efficiently outside the company 

Intranet a solid ground for new Cisco product and technology 

INTERNET AND INTRANET: APPLICATION
  Employee self service :
• Centralized access to information , tools and resources
streamlined process, facilitated knowledge and increased
employee productivity via CEC ( Cisco Employee Connection) 
• Creation of end-to-end capabilities, web integrated data and

INTERNET tools from a variety of sources under a unified user interface and
work force optimization. 

AND  Communication and Distance learning 

INTRANET •
•
Improved communication 
New training dimension and distance learning modules 
BENEFITS • Cisco tailored version of " My Yahoo" for employees, personalized
home pages, using push technique to retrieve information from
internet
• Live viewing or delayed broadcast of Chamber's address in
meetings. Strengthening the Cisco culture . 
 Electronic Connections with Customers:
•Cisco.com : a comprehensive, web based online resource
for information and networked applications.
•Website delivered responsive and around the clock
INTERNET support.
•About 80% of technical support for customers and
AND resellers delivered electronically.

INTRANET •Critical List

BENEFITS Shipping over the Internet:

•Internet commerce-based revenue: 92% of total revenue.
•Over 90% of software upgrades delivered via internet at
much lower cost in shorter time.
•Productivity Gains: 60% for Cisco, 20% for customers and
resellers.
 Cisco’s Supply-Chain
Management Initiative
•Single Enterprise: integrates suppliers into its production processes
using networked applications, establishing a “single enterprise”.

•New Product Introduction: The method for collecting product data

information was automated, reducing the time needed from as much
as one day to less than 15 minutes.

•Autotest: started building test cells in 1992 that automatically

conducted tests with minimal labor and standardized product tests.

•Direct Fulfilment: contributing to the first step towards global direct

fulfilment 60% manufacturing partners transitioned completely.

•Dynamic Replenishment: Without any distortion or delays, this

model allowed the market demand signal to flow directly to the
contract manufacturers and contract manufacturers to control the
stock levels in real time
IT AND CISCO’s NETWORKED BUSINESS
MODEL

•Simplified its processes both internally and externally to cut costs , more efficient
delivery of products by direct shipment to customers and improved customer
experience; distribution of upgraded software and manuals via internet.

•Proving up to date technical support to customers and resellers electronically.

•Simplification of business processes supported by corresponding increase in complexity

of internal IT , e- commerce and internet applications .

•Although, this comes at high cost in terms of it spending on Cisco’s part, but these
investments are reducing its inventory and overall functioning of the organization .
 Work Stream Description

Conduct site assessments Evaluate the physical and network infrastructure and
security at the site.

Plan and design IT connectivity Design and implement network connectivity and order
laptops and network equipment.

CISCO IT Align policies and service offerings Resolve any differences in IT services delivered to the
WORKSTREAMS company e.g., for security and mobility. Transfer IT
FOR contracts.
INTEGRATING AN
ACQUIRED Integrate sites Migrate voice and data circuits, computers, telephony,
and mobility solutions.
COMPANY
Implement IT solutions Create user accounts, transfer email service,
implement domain changes, and integrate security
systems.

Integrate business systems Transition applications and data; decommission legacy

infrastructure.
 CISCO’S INVESTMENT IN KPMG’S
GLOBAL CONSULTING ARM
 KPMG will hire or train 4,000 internet integrators over the next 18
months. those integrators will provide services to customers brought in
by cisco's direct sales force.
 It will also build six technology centers -- four in the united states and
two abroad. in return for its investment, cisco will own a stake of less
than 20 percent in KPMG's united states unit.
 With the deal, KPMG would become, in effect, cisco's "dedicated SI
team’” .
 How the Cisco-KPMG alliance will work: if a corporate customer wants
to transfer business functions like accounting or financial reporting to
the web, cisco will provide the hardware and KPMG will set up and
maintain the computer and software systems needed.
 Strategy behind the alliance, executives from the two companies said,
rests on the conviction that dominance in the internet economy will be
achieved not by being the first to notice a trend, but by being the first to
exploit it effectively.
• OPTIMZED OPERATIONAL INFRASTRUCTURE : acquired companies migrate to the cisco corporate
network , standard IT infrastructure and application architecture which reduces operational costs as well
as management and support requirements

• MAXIMIZED SALES STRUCTURE AND CHANNELS : can expand its customer base and sales
opportunities by consolidating sales forces and channels

• SOLID FOUNDATION FOR ACQUISITIONS : well defined integration process can help cisco
build a solid foundation to pursue more deals , more quickly and at lower risk
BEYOND CISCO

❏ Cisco’s successful journey

❏ Chambers’ and Solvik’s views
❏ What future holds?
● New opportunities
● Pioneer the development and use of the Internet
● Provide Leadership to traditional companies

No. of companies adopting internet based

Infrastructure Cisco’s Growth
 CONCLUSION
• Company to unify voice, data and video into one
network
• Despite competitions, Cisco was able to grow
with its products
• Leadership’s response to adversity
• Successful implementation of ERP Software
Package
• Clear direction from top management
• Experienced team
• Dedication of every member from every unit
 THANK YOU

GROUP 10: GROUP 11:

Jyotirmoy Majumdar Adityaroop Pathak
Mohit Singh Ahire Ajinkya Suresh
Nitesh Waskale Bhawana Mutneja
Satish Sagar Debopriyo Roy
Shubham Mittal Zulfaquar Ali Haidar