Cisco
Table of Content
Executive Summary 3
Case Synopsis 4
Strategy Analysis Error! Bookmark not defined.
Problems Analysis 6
Firm-Based Value Chain Model 6
Model Application at Cisco 8
Implementation Opportunity Analysis 9
Implementation Effectiveness 13
Tangible and intangible cost estimation. 13
Tangible and intangible benefit estimation. 14
Conclusions 15
References 16 Executive Summary
Cisco Systems made the decision to implement a new company wide ERP system. Cisco initially was running a UNIX-based software package to support its core transaction processing. However, the legacy system in place constantly needed maintenance and the available upgrade was much too small for Cisco, which was growing at a rate of 80% per year. Our analysis details Cisco’s choices during the implementation process, and the circumstances involving decisions associated with the success of the project. Also, discussed is the degree of success the implementation had in terms of cost and performance. And finally, our analysis contains summaries of the major success drivers and flaws in place, which contributed to the successful rollout of Cisco’s 15 million dollar ERP project in only nine months.
Case Synopsis
Cisco Systems, Inc. perhaps the biggest name in the data communication business had only one keystone product its router. Founded by two Stanford computer scientist in 1984, by 1997 Cisco became a fortune 500 company. The following year Cisco’s market capitalization was over $100 billion dollars (Cisco Case, 2002).
Around 1993 Cisco was a $500 million company and running a UNIX-based software package to support its core transaction processing. The functional areas supported by the UNIX package included financial, manufacturing, and order entry systems. CIO Solvik said “We want to grow to $5 billion-plus company”. He analyzed the current UNIX-based software package, and found that it did not provide the degree of redundancy, reliability, and
Executive Summary 3
Case Synopsis 4
Strategy Analysis Error! Bookmark not defined.
Problems Analysis 6
Firm-Based Value Chain Model 6
Model Application at Cisco 8
Implementation Opportunity Analysis 9
Implementation Effectiveness 13
Tangible and intangible cost estimation. 13
Tangible and intangible benefit estimation. 14
Conclusions 15
References 16 Executive Summary
Cisco Systems made the decision to implement a new company wide ERP system. Cisco initially was running a UNIX-based software package to support its core transaction processing. However, the legacy system in place constantly needed maintenance and the available upgrade was much too small for Cisco, which was growing at a rate of 80% per year. Our analysis details Cisco’s choices during the implementation process, and the circumstances involving decisions associated with the success of the project. Also, discussed is the degree of success the implementation had in terms of cost and performance. And finally, our analysis contains summaries of the major success drivers and flaws in place, which contributed to the successful rollout of Cisco’s 15 million dollar ERP project in only nine months.
Case Synopsis
Cisco Systems, Inc. perhaps the biggest name in the data communication business had only one keystone product its router. Founded by two Stanford computer scientist in 1984, by 1997 Cisco became a fortune 500 company. The following year Cisco’s market capitalization was over $100 billion dollars (Cisco Case, 2002).
Around 1993 Cisco was a $500 million company and running a UNIX-based software package to support its core transaction processing. The functional areas supported by the UNIX package included financial, manufacturing, and order entry systems. CIO Solvik said “We want to grow to $5 billion-plus company”. He analyzed the current UNIX-based software package, and found that it did not provide the degree of redundancy, reliability, and
References: 1. Cisco, Our Value Chain, (2010) retrieved by http://www.cisco.com/web/about/ac227/crs 2010/our -value-chain-index.html 2. Cisco Systems, Inc.: Implementing ERP, (May 6, 2002). Retrieved from Harvard Business School 3. Enterprise Resource Planning, (January 2010). Wikipedia, the free encyclopedia retrieved from http://en.wikipedia.org/wiki/Enterprise_resource_planning 4. Martin, M. (Enterprise Resource Planning. About.com Guide retrieved by http://logistics.about.com/od/supplychainglossary/g/ERP.htm 5. Martin, M. (Enterprise Resource Planning. About.com Guide retrieved by http://www.implement-erp.com/cisco-erp-implementation.html