Report of Findings and Recommendations
CISCO Systems, Inc.
Table of Contents
Table of Contents1
Background and Scope2
ERP Implementation scenario2
Conclusion and Recommendations4
Background and Scope
Cisco System, Inc is a Computer Technologies company that was founded in 1984. The company’s primary product is the “router.” The router is hardware and software that control Intranet and Internet traffic. With the growth of the Internet, Cisco products became in high demand. In 1997 Cisco was ranked among the top five companies in return on revenues and on assets. Cisco has been classified in the same category of successful companies as Microsoft and Intel. With the growth of Cisco, their computer systems were unable to handle the increase volume. The Cisco legacy system was a Unix-Based software package that supported its operations of: Financial; Manufacturing; and Order Entry. The system lacked reliability and the ability to expand. Eventually in January 1994, Cisco’s legacy computer system malfunctioned corrupting Cisco’s central database. The company was practically shutdown for two days. As Cisco struggle to recovered from the major shutdown, the company realized that they needed to act quickly and elected to implement an ERP system. Little over a year later, Cisco successfully implemented an ERP system from Oracle. This report has been requested by and prepared for Mr. Peter Solvik, chief information officer CIO) at Cisco System, Inc. Mr. Solvik has retained Blue Demons Consulting (BDC) to analyze Cisco’s ERP Implementation and provide a recommendation on items that still need to be accomplished for the ERP system. BDC composes this review report by conducting an analysis on the activities surrounding the ERP Implementation project at Cisco System, Inc. ERP Implementation scenario
BDC found out that in early 1994, Mr. Solvik put together an investigation team to select an ERP product. Mr. Solvik did not want the project to be just an IT-only initiative. The team would include internal and external resources. The internal resources were of people from all areas of the business community. To compliment the internal resources, Cisco needed a strong partner to help them with the selection and implementation. Cisco selected KPMG as their partner because KPMG’s people were very experienced with the industry. The investigation team was about 20 people including KPMG. They conducted an information search built on the experiences of others. The team contacted large corporations and the “Big Six” accounting firm to obtain information on ERP systems. Also, the team reviewed documents from research companies such as the Gartner Group. A Request for Proposal (RFP) was constructed and sent to vendors. The vendors were given two weeks to reply. After Cisco reviewed the RFPs, vendors were invited for a three-day demonstration of their software. From the process, Oracle ERP product was selected based on Oracle’s: * Emphasis on manufacturing.
* Promises of a long-term development of functionality of the package. * Flexibility since Oracle was close to them.
Mr. Solvik took the investigation team’s findings to Cisco’s board of directors for approval. The team concluded that one ERP system from Oracle be installed which the entire company would use. The project would cost $15 million and take 9 months. The 9 months was based on working into Cisco’s financial calendar rather than diligence planning. The board approved the project and the core ERP setup a structure for implementation. The implementation team consists of 100 members that were a cross-section of Cisco’s business community. The implementation strategy was “rapid iterative prototyping”, which was broken into four “Conference Room Pilots” (CRP). Each CRP was built on previous...