Cisco System, Inc: Implementing ERP

1. 2013
Cisco System, Inc:
Implementing ERP
Submitted By
Gaurav Singh
(12120)

2. About CISCO
Established in 1984
Primary product was Router
In 1997 entered into elite club of fortune 500
Among top 5 companies in return on investment and in return on assets
Exceptional growth in 1998 as companies’ market capitalization passed $100 billion
mark (15 times 1997 sales)
Financial year divided into four quarters starting from 1st August
IT Department at CISCO
Pete Solvik joined as CIO in January 1993
Running a Unix based software package to support core operating and transactional
process of the company
Package was majorly supporting three functional areas
o Financials
o Manufacturing
o Order Entry
Biggest customer of the software vendor
WHY ERP
Company was able to sustain an annual growth rate of 80% and legacy system was not
able to handle such load
Frequent system outages
Due to inability of system to perform a workaround caused corruption of database which
resulted in SHUT DOWN OF COMPANY for two days
This was the defining moment for the company as after this top management decided to
implement ERP. About a month after the shutdown they created a team to do an investigation to
replace the application.
Gauarv Singh
12120
ERP 2

3. IMPLEMENTATION OF ERP – APPROACH
1) Selection of an ERP Product
Major decision which they took and reason behind that:
a) Whom to give responsibility from company
i.
It was critically important project
ii.
Requires heavy involvement from business community to make project successful
iii.
DECISIONCISCO management pulled out very vest people from their team to
do the work
b) How and how many partner to select from Industry
i.
There help was needed for the decision of selection and implementation of
software
ii.
Great technical skills and industry knowledge was must
iii.
DECISIONChose KPMG as integration partner. KPMG gave their best people
for this project. i.e. Program manager for this project was their director of IT.
c) Which software to select
i.
One of the most important decision
ii.
Approach 
i. Took help from large corporates
ii. Guidance of research sources like Gartner group
iii. By tapping existing user of package
iii.
Vendor selection process
i. Systematic and standard procedure
ii. RFP
iv.
DECISION Oracle was selected as vendor
i. Strong and better manufacturing capability
ii. Promise Long term sustainable relationship
iii. Flexibility as office was very near by
Gauarv Singh
12120
ERP 2

4. 2) Approval from Board
Two key decisions need to be taken before approaching board
i.
COST of the project
ii.
Timeline / END – DATE of the project
By Systematic thinking and involvement of all partners, taking all factors into consideration they
approached board and convinced for project.
Cost: $15 million
Duration: 9 months
3) Implementation of Building team
Factors need to be considered
Size of the team
Role and responsibility of the team
Organization of team
DECISION
They picked best and brightest from the firm
FIVE Tracks
TRACK
o Cisco Information system leader
o Cisco business leader
o Business and IT consultant (Oracle / KPMG)
o Additional personnel from business as team member
o Project Manager
Gauarv Singh
12120
ERP 2

5. Implementation of Oracle
1. CRP0
Training on oracle to understand technical specification of project
Two week training
One small tiger team working on getting application up and running
Result at the end of phase
Some changes are required in product to fulfil the gap
Priority of changes
2. CRP1
Each track to make system work within specific area
Generate detailed documentation for each process/issue/workaround
Finding of gaps
Result at the end of phase
Identified what all modification were required
Standard document to understand the product
Feasibility of product to handle the modification
3. CRP2 and CRP3
Include major modification
Decide on after sales support package
Result at the end of phase
A centralize data warehouse to use all CISCO application
Changed company structure and process according to product
o Renumbered the product
o Changed Bill of material structure
Gauarv Singh
12120
ERP 2

6. o Changed most of the data according to new system
Green signal to System GO-LIVE
4. GO LIVE
Issue of hardware
Inability of software to handle volume of transaction
Workaround and solution by Team
Responsibility of vendor to solve hardware issue (Didn’t increase cost)
Stress testing was not done which resulted in data leak
All IT team worked together for next two months to solve all technical issues
Key Reason Behind success
1. No.1 agenda for the company, gave priority across all functional area
2. Company believe in standardization
3. Best people across the industry in the project
4. Team organization and culture
5. Systematic and structured approach in selection of vendor and software
6. Correct estimation and high class project management
7. Highly centralized and top to bottom approach by the company
8. Company adaptability  changed its process where it was difficult to modify the
software
9. GAP Analysis, except volume testing they did a good gap analysis
Gauarv Singh
12120
ERP 2

7. Gauarv Singh
12120
ERP 2