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Cisco Systems Inc Implementing Erp Essay

1906 words - 8 pages

John Morgridge joined Cisco as a CEO in the year 1988. The very first thing he notices in the organization was the lack of professional management team. Initiation for professional management team was the first kick off for the organization. Professional management is considered to be the foundation of any big organization and Cisco started with this thereby sticking with the fundamentals. The professional team clashed with the founders ending up them leaving the company and giving a free hand to Morgridge to handle the organization in a disciplined manner in terms of management. Cisco as an organization started off with a very positive note thereby centralizing the functional areas. Except ...view middle of the document...

Also it has been mentioned that the software vendor was serving companies which are in $50 million to $250 million in terms of revenue. On looking through the resistance to Cisco’s growth Solvik (Cisco’s CIO) really wanted to put something new in place. Going with new ERP system was still in a confused state for Cisco. Slovik’s denial for an ERP system was clearly seen. Instead of that he was very much interested for individual application for all the functional area and thought of given them to decide on this. Cisco's tradition of standardization was always kept in mind and hence Emphasis was given to the use of common architecture and databases. From the case given it was clearly seen that functional areas were responsible for the budgetary decision on IT expenditures while the IT organization directly reports to Solvik. The IT won’t do anything unless they ask for something new. Also Solvik was concerned about the complexity of mega ERP implementation projects. All this were the concerns raised at the early stage and yes was very much required for the company to land up with a safe decision.

All this discussion comes under picture due to the malfunctioning of the legacy system. The company’s was growing with an annual growth rate of 80%. Also the rate for transaction in the company was increased drastically. Legacy systems proved to be a big failure in handling the load. Desperate efforts were taken in order to put the system in place, but it eventually leads to system crash. Finally, January, 1994 Cisco experienced shutdown for 2 days due to the legacy system failure. The autonomous approach of system replacement was not good enough. They concluded this as a big problem for the failure. The plan to start and come with a single integrated system was decided. SVP of manufacturing Carl Redfield with an experience in PC manufacturing took the initiative and decided to investigate what manufacturing, order entry and financial group in the company wants to come with a single integrated replacement rather than going individually. Phased conversion was neglected. They planned to go in one shot. Emphasis was given to prioritize tasks accordingly. The need of strong team was highlighted. As it was not an IT project. It requires both IT and business people to work simultaneously on the project. The need of best people was very much needed and was properly addressed in the company’s plan. Strong need of partner was required. They wanted an integration partner to assist in selection and implementation of the solution with which the company should go with. Technical skills and business knowledge was meant to be the important pre-requisite. KPMG was selected as an Integration partner. KPMG responded to the opportunity and took it very seriously. KPMG Appointed Mark Lee who was director of IT Company in Texas and got experience in impregnating ERP systems. Working together with KPMG, a specialize team of 20 people were formed which were looking for the...

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