Cisco Systems, Inc.

Implementing ERP
Group 1 :
Ajesh G.S.
Akanksha Gupta
Alekhya Kasturi
Anagh Dutt
Anuj Singla

INTRODUCTION
Founded by two Stanford computer scientists in 1984
It subsequently went public in 1990
Primary product was Router
With rise in internet usage, the demand for Cisco products grew rapidly
In 1997 entered into elite club of fortune 500
Among top 5 companies in return on investment and in return on assets
Microsoft and Intel were the other big companies in this list
Exceptional growth in 1998 as companies market capitalization passed
$100 billion mark (15 times 1997 sales)

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CISCO SYSTEMS INC.
IT Department at Cisco
Pete Solvik joined as CIO in January 1993
Running a Unix based software package to support core operating and
transactional process of the company
Package was majorly supporting three functional areas
Financials
Manufacturing
Order Entry
Biggest customer of the software vendor
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Key Stakeholders
Pete Solvik, CIO
John Morgridge, CEO
Carl Redfield, SVP
Randy Pond, Director, Manufacturing
INTEGRATION PARTNER
Mark Lee, Program Manager
ERP VENDOR
Why ERP?
Legacy system running on Unix
Functional areas supported by different packages
Largest customer for its software vendor
Legacy system unable to handle 80% annual growth; heavily customised
Higher degree of reliability needed; band-aids

Solvik didnt want to implement ERP
Each functional area would have freedom however these would have a common architecture and databases
Concerns about ERP Implementations becoming a Mega Project
Implementation of ERP often requires tweaking of core business processes to match the system requirements
The modifications required in the ERP system from time to time add to the already high project expenditure

High cost, High risk involved (chance of being fired), so no one wanted to volunteer
Failure in January, 1994 leading to a two-day shutdown was the last straw
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ERP Implementation
Solvik & Redfield brought in KPMG as the integration partner for selecting the right
ERP solution
20 member team created and did MR; Oracle selected finally after 75 days since
inception of project
Expected project cost: 15 million USD
Expected time to go live: 3 quarters
Team formed; one each from KPMG, Oracle and Cisco

Wanted it to be implemented before End of FY 95, i.e. before auditing began
Legacy system could not support day to day operations any longer
Unnecessary diversion of resources

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Key Success Factors
Announcement of ERP implementation as a top priority project (one of top seven goals)
by the CEO
Best people in the industry involved in the project including KPMG and Oracle
Systematic and Structured approach in selection of vendor and software
Early involvement of service engineers in the requirement planning resulted in
successful adoption of the new applications by the users
Correct estimation of time, money required for the project along with superior project
management
Lessening customization was a crucial success factor and resulted in risk mitigation.
Involvement of KPMG, one of the best consultancies in business
Avoiding Phased Implementation which enabled quick and efficient implementation
Hardware contract was not a function of amount of hardware but was a function of
capability. Hence the risk was transferred to the vendor






































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Learning
QA teams could have been effectively used
Stress tests should have been done
System integration testing should have been done


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THANK YOU

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