Management and Project

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Why did Cisco need an ERP solution? When Solvik joined Cisco in January 1993 as the company’s CIO, he realized that the company was growing significantly. And according to his experience he realized that the present system did not provide the degree of redundancy, reliability and maintainability that Cisco needed. He also knew that the system will not be able to handle the growth of Cisco from a $500 M to a $5B company. This is when he decided to change a few things to satisfy the needs of the company growth. Changes Solvik made: - 1) Made functional areas to decide their IT budgets on their own. 2) Made IT organization report him directly. These changes didn’t quite solve the legacy problem. Instead a year later functional areas were facing trouble with the system. Finally, during the month of January 1994, Cisco’s legacy system failed completely. This is when the need of ERP as a solution aroused. 2. Why was no manager willing to step forward and lead the effort to replace CISCO’s failing systems? Managers were scared about the risk involved in replacing Cisco’s legacy system. They had in their mind the possibility of the project being unable to take off due the enormous size and duration it would require. It was very difficult to convince their top management. Difficulty in convincing the management was due to lack of justifications for the amount of time, money and resources required for the project. 3. Explain the motivation behind "doing it all at once" as opposed to a phased implementation of ERP. Do you agree with their reasoning? Motivation: - Solvik didn’t want to wait casually till order entry, finance and manufacturing went out and made 3 separate decisions. It was a time of emergency due to corrupt data and shut-down of the company. Solvik wanted to take a faster action. With the help of SVP of Manufacturing, Carl Redfield, Solvik decided “to do all at once” instead of “phased implementation”. My Views: - According to me any kind of ERP...
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