Cisco Systems, Inc.: Implementing ERP
Cisco Systems, Inc.: Implementing ERP
- Himabindu Donga
At the start of the case, Cisco's information systems are failing, yet no one steps forward to lead the effort to replace them. Why is this? Why were no managers eager to take on this project?
The managers at Cisco were apprehensive about the risk involved in converting the existing legacy systems with ERP systems. They were worried because they thought that the implementation of ERP systems would turn out to be a “mega project†consuming lot of time and resources. Also, they preferred not to choose ERP systems in order to maintain Cisco’s strong tradition of standardization and consistency in budgetary structures which were in place in Cisco. The managers who were asked to make their own decision regarding the software packages were not ready to try any packages individually as they considered it a huge risk financially and in terms of time and so they preferred to keep going with their existing legacy systems by updating/repairing it when needed until it completely failed.
Cisco was highly successful with its enterprise resource planning (ERP) effort. What accounts for this success? What were the most important things that Cisco did correctly?
The Cisco’s ERP effort was highly successful because of the efficient planning and highly qualified resources involved in the effort. The Cisco’s action team was chosen to include only the very best of the people from each department. They just didn’t leave all the burden of installing and implementing the new ERP system on IT and oracle teams. Every department was involved and the changes were closely tracked to match the existing legacy system. Every person in the action team, not only Cisco employees but also the KPMG, Oracle and the hardware provider know the importance of the job they are performing and they were passionate and gave their best to make it work. The estimates were drawn accurately and the contracts were chosen appropriately.
- Himabindu Donga
At the start of the case, Cisco's information systems are failing, yet no one steps forward to lead the effort to replace them. Why is this? Why were no managers eager to take on this project?
The managers at Cisco were apprehensive about the risk involved in converting the existing legacy systems with ERP systems. They were worried because they thought that the implementation of ERP systems would turn out to be a “mega project†consuming lot of time and resources. Also, they preferred not to choose ERP systems in order to maintain Cisco’s strong tradition of standardization and consistency in budgetary structures which were in place in Cisco. The managers who were asked to make their own decision regarding the software packages were not ready to try any packages individually as they considered it a huge risk financially and in terms of time and so they preferred to keep going with their existing legacy systems by updating/repairing it when needed until it completely failed.
Cisco was highly successful with its enterprise resource planning (ERP) effort. What accounts for this success? What were the most important things that Cisco did correctly?
The Cisco’s ERP effort was highly successful because of the efficient planning and highly qualified resources involved in the effort. The Cisco’s action team was chosen to include only the very best of the people from each department. They just didn’t leave all the burden of installing and implementing the new ERP system on IT and oracle teams. Every department was involved and the changes were closely tracked to match the existing legacy system. Every person in the action team, not only Cisco employees but also the KPMG, Oracle and the hardware provider know the importance of the job they are performing and they were passionate and gave their best to make it work. The estimates were drawn accurately and the contracts were chosen appropriately.