Case Study 2: Cisco System Architecture: ERP and Web-enabled IT
Cisco System Inc. is the leading company in the computer communications and networking industry. It became a public company since 1990, was founded in 1984 by two Stanford computer scientists, and the core business began with multi-protocol routers. It later continued to dominate the “Internetworking” market, which in turn reflected in its first year on Fortune 5000 in 1997 and its market capitalization passed $100 billion in 14 years’ establishment. Once John Chambers became CEO in 1995, he noticed the signals of accelerated trend of transmitting three independent phone network, data network and broadcast network into one integrated IP-based network. So he continued to execute 4 elements plan, which are 1) broad product line 2) systematize acquisition 3) set industry software standards for networking 4) choose the right partners. In consistent of goals, when Pete Solvik became CIO, in order to build Cisco’s IT infrastructure, he repositioned IT department internally and also work with KPMG as an integration partner in helping of choosing Oracle and implementing ERP project. The completion of the IP-based architecture also provided the foundation of web-enablement. Cisco developed both Intranet and Internet application involved business partners, suppliers, customers and also employees. Over the years, it increased customer satisfaction, shareholder values and strengthened competitive advantage.
Cisco is fundamentally different from other Industrial-Age Companies; it has several factors that define itself as Information-Age Company.
First of all, it has a different business interaction process. The web-enabled Intranet and Internet interface allow interactions with customers, business partners, employees and suppliers, who can navigate to the information needed and contribute directly to do business in hence