Cisco Systems, Inc.
: Implementing ERP
1. What factors had made the difference between success and failure of the Cisco ERP project?
The factors that made the difference between success and failure of the Cisco ERP project are:
1. ERP project was number one agenda for the company and was given priority across all
functional area.
2. Company believe in standardization which was beneficial for ERP project
3. The company had some of the best people across the industry working 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 changed its process where it was difficult to modify the software, thus its
adaptability played a key role in success of project
9. GAP Analysis and testing proved good for the company
10. The team recognized the problem & developed a realistic plan of attack
2. Where had the ERP team been smart?
In the Conference room pilot 2 (CRP2), the implementation team found itself in the most tricky
part of the implementation. The project scope had extended to include major modifications and
new after sales support packages. To acknowledge this in most efficient way, a new approach
was employed by the team in which all data communication took place by "data warehouse".
Utilization of a data warehouse allowed all of Cisco’s applications to access a solitary source for
their information needs.
3. Where had the ERP team been plain lucky?
The ERP team was plain luck on the day of the presentation to board for project approval, the
legacy system crashed. It helped the IT dept. to convince the board members faster. Cisco's
contract with the hardware vendor for capability of hardware rather than specific configuration
helped in keeping costs low. The Oracle and KPMG teams were always with them and put in
their 100% even when they weren't required to. Hardware Company’s president sponsored the
final stage. All the additional costs were borne by the hardware vendor company from its own
pocket
4. Do you think that the Cisco team could do such a project again if they had to? Why? Why not?
The environment has definitely changed and the current environment is not as same as the
environment back then when Cisco decided to develop and implement an ERP system to replace
its failed UNIX. With the same conditions, the failure or success of implementing another ERP
system would be 50:50 because back then Cisco’s success depended on good planning and luck.
Good managers are good planners and Cisco’s planning was good but the failure to integrate
both formal business case planning that is financial in nature and only dwelling on what
triggered the need for the ERP system is not enough. Good management planning systems
usually take every variable affecting a project and incorporate into consideration in decision
making.
If Cisco’s project managers conduct a complete SWAT analysis and PEST analysis and they are
to carry out the same project, then their chances of success are more likely to be certain. If the
company will most likely succeed the team should sit down together and create a Gantt chart for
the project and proof financial statements then Cisco will definitely succeed in the project. The
existence of good leadership and a bright team of 100 staff who are good at planning activities
make it easy for the company to effectively carry out its duties. Additionally, if the company
teams up/partner up with the same partners who are dedicated such as KPMG and Oracle then
Cisco will definitely succeed.
5. How important is ERP in the overall architecture?
ERP assists in improving information sharing, enhance business performance, and promote
service efficiency. Its importance in overall architecture is as follows:
1. Allow companies to better understand their business.
2. Helps companies standardize business processes and more easily enact best practices.
3. More proficient processes enable companies to concentrate their efforts on serving their
customers, maximizing profit, and building a competitive benefit.
