Cisco Systems, Inc.: Implementing Erp
1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
Below are reasons Cisco hesitated to take on an ERP project:
a) Fear of decentralization
b) Fear of “mega-projects” that ERP implementation often becomes
c) Disruption to the business
d) Need for strong internal team and strong partners
e) Balancing standardization versus proprietary functionality
f) Cost
Fear of decentralization
Cisco’s CEO believed that Silicon Valley firms had a tendency to decentralize too rapidly while not appreciating the functional organization’s ability to grow. In this case, Cisco had many decentralized divisions, whereas the ERP solution would drive centralization.
Mega-projects
As the name implies, a “mega” project is a large project which draws a large amount of resources in order to complete. Such projects also usually entail long and complex implementation schedules. In this case, a prospective ERP solution was tasked with conjoining vast and different functional business teams in a fast moving technology-based company — a complex endeavor. Disruption to the business Cisco was a rapidly growing company utilizing a Unix-based software legacy package to support its core transaction processing. Given their desire to grow from a $500M to a $5B company, each functional area was tasked with deciding which applications were appropriate based on their individual need. Implementing an ERP system impacts all functional teams, and in this particular case, did result in daily outages which impaired Cisco’s ability to conduct business.
Need for strong internal team and business partners In integrating an ERP solution, which impacts all functional areas, Cisco was concerned that whether they would be able to successfully
Below are reasons Cisco hesitated to take on an ERP project:
a) Fear of decentralization
b) Fear of “mega-projects” that ERP implementation often becomes
c) Disruption to the business
d) Need for strong internal team and strong partners
e) Balancing standardization versus proprietary functionality
f) Cost
Fear of decentralization
Cisco’s CEO believed that Silicon Valley firms had a tendency to decentralize too rapidly while not appreciating the functional organization’s ability to grow. In this case, Cisco had many decentralized divisions, whereas the ERP solution would drive centralization.
Mega-projects
As the name implies, a “mega” project is a large project which draws a large amount of resources in order to complete. Such projects also usually entail long and complex implementation schedules. In this case, a prospective ERP solution was tasked with conjoining vast and different functional business teams in a fast moving technology-based company — a complex endeavor. Disruption to the business Cisco was a rapidly growing company utilizing a Unix-based software legacy package to support its core transaction processing. Given their desire to grow from a $500M to a $5B company, each functional area was tasked with deciding which applications were appropriate based on their individual need. Implementing an ERP system impacts all functional teams, and in this particular case, did result in daily outages which impaired Cisco’s ability to conduct business.
Need for strong internal team and business partners In integrating an ERP solution, which impacts all functional areas, Cisco was concerned that whether they would be able to successfully