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