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Enterprise IT at Cisco

Rohit M*** Click to edit Master subtitle style Katerina M*** Bo ***

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Agenda
History & Background IT at Cisco (1993 - 2001) IT at Cisco 2001 Discussion on IT at Cisco after 2001 Discussion on Proposed Call Center Network.

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History & Background


Founded in 1984 by two Stanford computer scientists Rapidly growing through acquisitions; ability to make quick decisions and seize new market opportunities Largest developer of networking and communication products for transporting data, voice and video Global company, 40% of its sales are outside Americas marketplaces

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History & Background

Cisco designs and develops its products but does not manufacture them Sells directly (larger customers) and indirectly (distributors and VARs) Cisco relies on its IT network transmit orders, have time and accurate data for manufacturing timelines, order status and customer inquires Cisco was organized in 9 business functions, 7 technology groups and 4

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IT at Cisco (1993 - 2001)

CIO Peter Solvik

Changed reporting relationship of the department. Reallocation of the IT budget - Client Funded Project (CFP). Disbanded central IT steering committee. Implementation of Oracle ERP system in 1994, primarily for inventory and manufacturing processes. Changed reporting relationship of the department. Intranet for employees & Website for customer.

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Highs & Lows of IT (1993 2001)

Highs

Change of perception of IT as overhead ERP provided a strong foundation for Cisco to build out its Internet Capabilities. Doubled revenues between 1999 and 2001.

Lows

Multiple databases and tools leading to redundancies. No centralized group to check for conflicts. Series of extensions, additions and interfaces made the up gradation of ERP difficult.
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IT at Cisco after 2001


The

end of 2001 turning point, sales growth slowed dramatically CIO Brad Boston Analysis ConclusionConflicts & Redundancies Centralized IT governance

Stop new projects Threes initiatives Rebuild steering committee - BPOC

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Centralized IT Strategy or Not?


Pros:

Improve whole company management Solve the problems of conflicts and redundancies Reduce the costs

Cons:

Change the companys culture Reform Cost


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Three initiatives
Oracle

ES up gradation

Why? - Original ERP did not meet the specialized needs of all the business functions. Expected Benefits - Standardization of all the business functions.

Enterprise

Reporting & Business

Intelligence

Why? - Different tools are used that are not linked. Expected Benefits - Consistent application to get
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Three Initiatives
Single

Comprehensive Database

Why? - Disparate data spread all over the globe. Expected Benefit Rationalize all existing data.

Cons
Not necessary, no cross-functional Not affordable, Can not do everything, leave space for reseller

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Proposed Customer Interaction Network


Centralize

all incoming calls.

Expected Benefits:

Improving the customer experience Reducing expenses Wide-scale impact

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Approve or Disapprove?
Why

Yes:

Costly, inefficient call handling Inconsistent service Limited operational flexibility Lack of standards Migration to Cisco products

Why

No:

High Cost with no real need for it. Not necessary for cross functional and cross borders. Aggravation the current complicated organization.
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Thank You Questions??

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