Cisco Implementing Erp
Cisco Systems, Inc.: Implementing ERP
Case Summary
This case describes the deliberations, process, problems, solutions and outcome of Cisco Systems’ implementation of an Enterprise Resource Planning (ERP) system. In 1993, Pete Solvik, Cisco Systems CIO, was convinced that the company needed to move away from its UNIX-based software package in order to prepare the company for growth. Initially, he was inclined not to consider an ERP implementation, concerned about the overall costs and scope of such a project. However, in 1994, after a major crash of Cisco’s legacy environment, Solvik concluded that not only should they initiate a major ERP implementation, but that they should do it all at once rather than in phased manner. Solvik and his team secured KMPG as its integration partner, and KMPG aided the team in narrowing the candidate software packages to Oracle and another player in the ERP market. Due to its strength in manufacturing capability, its promise to develop the ERP functionality over the long-term, and its proximity to Cisco, Oracle was chosen, a mere 75 days after the inception of the project. With Oracle chosen, Solvik and his team needed the approval of Cisco’s board to proceed. At an estimated cost of $15 million, the Cisco’s CEO and board were concerned, but ultimately approved the project. With the green light, the core ERP team expanded from 20 to 100 members and was organized into five tracks managed by a Project Management Office that was overseen by an Executive Steering Committee. Implementation of the ERP system occurred in phases called Conference Room Pilots (CRP). CRP0 involved the training of the implementation team and setting-up the technical environment. In CRP0, it was determined that the ERP software would need to be modified substantially. CRP1 involved each track ensuring that the ERP stem worked within its specific area. In CRP1, gaps in the system were identified and developers worked to modify the system. In
Case Summary
This case describes the deliberations, process, problems, solutions and outcome of Cisco Systems’ implementation of an Enterprise Resource Planning (ERP) system. In 1993, Pete Solvik, Cisco Systems CIO, was convinced that the company needed to move away from its UNIX-based software package in order to prepare the company for growth. Initially, he was inclined not to consider an ERP implementation, concerned about the overall costs and scope of such a project. However, in 1994, after a major crash of Cisco’s legacy environment, Solvik concluded that not only should they initiate a major ERP implementation, but that they should do it all at once rather than in phased manner. Solvik and his team secured KMPG as its integration partner, and KMPG aided the team in narrowing the candidate software packages to Oracle and another player in the ERP market. Due to its strength in manufacturing capability, its promise to develop the ERP functionality over the long-term, and its proximity to Cisco, Oracle was chosen, a mere 75 days after the inception of the project. With Oracle chosen, Solvik and his team needed the approval of Cisco’s board to proceed. At an estimated cost of $15 million, the Cisco’s CEO and board were concerned, but ultimately approved the project. With the green light, the core ERP team expanded from 20 to 100 members and was organized into five tracks managed by a Project Management Office that was overseen by an Executive Steering Committee. Implementation of the ERP system occurred in phases called Conference Room Pilots (CRP). CRP0 involved the training of the implementation team and setting-up the technical environment. In CRP0, it was determined that the ERP software would need to be modified substantially. CRP1 involved each track ensuring that the ERP stem worked within its specific area. In CRP1, gaps in the system were identified and developers worked to modify the system. In
References: 1. Highsmith, J. Adaptive Software Development. New York: Dorset House, 2000