Preview

Cisco Systems, Inc.: Implementing ERP

Good Essays
Open Document
Open Document
359 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cisco Systems, Inc.: Implementing ERP
Cisco Systems, Inc.: Implementing ERP The root cause of issue with the outdated ERP system ended up being exactly what they instilled into the Oracle system yet no red flags were raised. Before CRP0 was complete, the team had already broken one of its main goals of not modifying the new ERP. Their key was to setup Cisco operations to work with the ERP system so that fluctuations in scale wouldn’t have any adverse effects as they had experienced with UNIX. Instead, they made the same cardinal sins of modifying the Oracle system to meet Cisco’s way of business. In altering Oracle, they placed a ceiling on the scalability of the new system without realizing it and this should have been discussed further with more emphasis being placed on changing internally to meet Oracles structure. With Cisco installing their “most seasoned personnel” on the team, CRP3 tests should have been handled differently. The Cisco team fooled no one but themselves by defining their CRP3 trials as “full system” encompassing. Cisco ran their key processes consecutively separate versus all of them running at the same time in their tests. To exacerbate the issue or hide the weakness, depending on which way you look at it, Cisco also only opted to test these separate processes with a “partial info. load”! How this could be accepted as fully operational is incomprehensible. With the amount of experience on the team, Cisco should have foreseen the problems they experienced. How this thinking and mindset went as far as it did should be studied further to prevent these critical miscues in future ERP implementation sites.
Cisco realized and sought to execute a radical process redesign which can be technically defined as business process reengineering. I saw this as the ideal application for BPR due to the nature of Cisco needing to run cross-functional processes in Oracle. I believe the internal resistance that comes with BPR was mitigated by selecting key players for the implementation team, which

You May Also Find These Documents Helpful

  • Powerful Essays

    At the beginning, people realised the incompatibility in practices logics once the system rolled-out. Technology alone cannot force practice change, especially when the original design logic is misaligned with the legacy practice logics. Where such incompatibility exists resistance is often encountered (Berente et al., 2007). The system was not able to carry out legacy functions and satisfy the flexibility that management accounting demanded. People may not be able to get the accounting information that they need or expected to be able to get via the ERP system. When the users can no…

    • 2343 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Erp Systems

    • 979 Words
    • 4 Pages

    1. For a small company like NDI, why is an ERP better than SCM applications?…

    • 979 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Despite I did not stay here for this one and a half month to monitor the whole process of running the new system and had very limited information relating the failure, I figured out the main failure may be disconnection of the four components of information system. Besides technology itself, dropping any one of people, process and structure would harm…

    • 711 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Prior to Solvik, IT was always an internally oriented cost center, but Solvik moved Cisco’s IT organization out of finance and into the customer advocacy group. (Case study, p. 3). This meant that IT spending was no longer thought of as “overhead” and now each business unit manager was responsible for their own investment decisions; it became a client-funded project system. However, Oracle didn’t have all the functionality required by each segment of the business and even though ERP systems are “designed to plan and integrate processes, enforce data integrity, and better manage resources”, managers needed to customize it to their needs. (Bendoly, p.79). Managers remained enthusiastic because they were given the freedom to purchase and install whatever they wanted to sit on the Oracle platform. As a result, inconsistencies developed between different business units and even within the different regions of a specific segment. (McAfee, p. 104). For example, the sales team in Europe and the sales team in the US each created different tools for the same process but they…

    • 1397 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Cisco went through many issues during their implementation of ERP through three phases of CRP; which is not inherently unusual when a company goes through the testing phase. However, the company encountered major challenges when the new system lacked the capacity to process the required load and make modifications.…

    • 292 Words
    • 2 Pages
    Good Essays
  • Good Essays

    What could have done otherwise to avoid the SAP AG’S R/3 ERP implementation failure at Hershey’s Food Corporation?…

    • 1364 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    We can assume that Bombardier was not a fully integrated company at that time because there was a clear lack of coordination and…

    • 1877 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    This interpretive case study of FoxMeyer Drugs ' ERP implementation is based on empirical frameworks and models of software project risks and project escalation. Implications of the study offer suggestions on how to avoid ERP failure. warehouses, the transition to the first automated warehouse was a disaster. Disgruntled workers damaged inventory, and orders were not filled, and mistakes occurred as the new system struggled with the volume of transactions. $34 million worth of inventory were lost (Jesitus 1997). Second, the scope of the project was risky. FoxMeyer was an early adopter of SAP R/3. After the project began, FoxMeyer signed a large contract to supply University HealthSystem Consortium (UHC). This event exacerbated the need for an unprecedented volume of R/3 transactions. Although, prior to the contract, testing seemed to indicate that R/3 on HP9000 servers would be able to cope with the volume of transactions, in 1994 R/3 could process only 10,000 customer orders per night, compared with 420,000 under FoxMeyer 's original mainframe system (Jesitus 1997). Third, the execution of the project was an issue due to the shortage of skilled and knowledgeable personnel. FoxMeyer did not have the necessary skills in-house and was relying on Andersen Consulting to implement R/3 and integrate the ERP with an automated warehouse system from Pinnacle. Although at the height of the project there were over 50 consultants at FoxMeyer, many of them were inexperienced and turnover was high (Computergram International 1998). Finally, the environment quadrant of the risk framework includes issues over which project management has little or no control (Keil, Cule, Lyytinen and Schmidt 1998). Although FoxMeyer must have realized the project was in trouble, its perceived dependence on consultants and vendors prevented it from seeing…

    • 2060 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Powerit Case Study

    • 1011 Words
    • 5 Pages

    An example of a company that failed with their ERP system is PowerIT Ltd., an autonomous company of about 200 employees whose job is to produce and repair power conversion supplies. The mid-size company decided to replace their existing materials resource planning(MRPII) legacy system with an enterprise resource planning(ERP) system to “modernize practices and provide an integrated software solution” to match the growth of their customer base.…

    • 1011 Words
    • 5 Pages
    Better Essays
  • Good Essays

    implementation ERP

    • 964 Words
    • 4 Pages

    They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and processes. Management must be part of the new vision and must pass this message to employees in order for this to work. Involvement of employees must be considered and planned in order to succeed.…

    • 964 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The technology factor that contributed to the control problems at RBC was not simply a programming error leading to a glitch in the system. Programming errors made by individuals are common. RBC had a rule to test software upgrades, but that rule was not followed. Testing the software upgrade before fully implementing it would have prevented the problem, this was the main technology factor. Another factor was that the upgrade was installed on the back up facilities at the same time it was implemented on the primary computer facilities, virtually made the backup facilities useless in the first place. The procedure that was followed for installing the upgrade simultaneously on both the primary and backup systems was actually part of RBC policy. That policy should be reviewed and possibily changed.…

    • 633 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Based on this was Tesla ready to introduce, and implicate the ERP systems to the organization? Did they have the management, budget, allowed time to install successfully? Also, was the ERP system the right system for their business plans? If they were why, and if they weren’t why.…

    • 760 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Tata Motors Limited is India's largest automobile company, with revenue of Rs. 1,88,818 crores in 2012-13. It was established in 1945 and is present across the length and breadth of the country. Today, it is world’s second largest manufacturer of commercial vehicles, fourth largest truck manufacturer and second largest bus manufacturer.…

    • 3588 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    SAP enterprise software was not a good foundation for Brady’s new systems creating problems in various areas of the company.…

    • 1066 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    2) The old system, prior to SHOROUQ, was completely at the mercy of the mainframe platform. After many years of using and adopting in the business, the system became the home of many costumed applications. The maintenance of those applications, as well as the hardware, after many years and further enhancements became too costly and time consuming. This is why the new NBK system SHOROUQ became an advantage due to its new features and its ability to overcome many of the shortcomings of the old system, particularly the costs of maintenance. However, SHOROUQ suffers from a conventional disadvantage that faces all ERP systems. The SHOROUQ system was costly to develop and establish. The NBK invested too much time and money to make SHOROUQ a reality…

    • 252 Words
    • 2 Pages
    Satisfactory Essays