Analysis on Cisco ERP Implementation

CONTENTS
Cisco ERP Implementation (Background)
Analysis - Performance Dip
Analysis Smart or Lucky (General)

Analysis Smart or Lucky (Literature)

Analysis Smart or Lucky (Theoretical)
Cisco Case Perspective -Smart Or Lucky ?
Change The System Or Change The Process?

CISCO ERP IMPLEMENTATION

Successful project with $15 million and 9 months timeline

Not an exception, like many companies ERP implementations issues

Effective collaboration with partners, vendors
Committed internal management

CISCO ERP IMPLEMENTATION

Major Decisions
De-Centralization to Centralization
Rapid Iterative Prototyping
Promised Capability rather than Specific Configuration (Hardware
Vendor)
Service Support Package ( Oracle )

ANALYSIS - PERFORMANCE DIP

Observed after the implementation of an ERP system
Decrease in Process and Organizational performance immediately
due to issues with adopting to new system after GO-Live
Increases performance above the initial level several weeks or
months after the dip

ANALYSIS SMART OR LUCKY

(GENERAL)

ANALYSIS SMART OR LUCKY

(GENERAL)
Smart
More likely to be able to repeat than luck
Able to discern patterns and trends
Able to discern not just the trends, but they can see that the trend
will not last

Lucky
Neither care about trends nor changes in trends
What they choose works

ANALYSIS SMART OR LUCKY

(LITERATURE)

ANALYSIS SMART OR LUCKY

(LITERATURE)

Insider's look at the combination of luck and smarts

Success = Smart + Luck
Smartest people with excellent technology may fail
A company with same idea may become a huge
success
Companies lucky enough to be at the right place at
the right time can fail - if unable to figure out a way to
sustain

Combine right timing with a well-conceived strategy

to continually innovate for the long run.

ANALYSIS SMART OR LUCKY

(THEORETICAL)

Specific ( 6 W Questions)
Measurable ( H Questions)
Attainable (attitudes, abilities, skills, and financial capacity)
Realistic (willing and able to work)
Timely (no time frame no sense of urgency)

CISCO CASE PERSPECTIVE

-SMART OR LUCKY ?

SMART RESEARCH AND

PLANNING
PROJECT SELECTION TEAM Best people from the company,
employees of KPMG- strong integration partner to aid the overall selection
and implementation process

Looked at experiences of other companies implementing ERP systems

Selection of an ERP vendor which had the capacity to suit Ciscos goals
of significant future growth
Thorough Understanding
Ciscos team members also visited other companies which implemented an
ERP system
three-day software demonstration

SMART RESEARCH AND

PLANNING (Cont..)
ERP Implementation was one of the seven top
priorities of that year
Strong end-user involvement

Users received intense training from Oracle

Top Management support can be considered as
very high, which is one of the keys to successful
ERP implementation.

LUCK
They were in a very good bargaining position with Oracle
On the day of presentation to the board the IT system
crashed this helped them convince the board members
faster
All the changes made after the implementation regarding
the hardware had to be made out of the hardware vendors
pocket
Extensive support from KPMG and Oracle

SIX KEY POINTS FOR CISCOS

SUCCESSFUL ERP
Maintaining a focus on core business objectives and integrating ERP
implementation with overall business strategy
Selection of the hungry and financially strong vendors
Compilation of the best staff on Steering Committee, and put the best
people on team
Full support of top management from the very early beginning, but
threat to fire CIO upon failure
ERP project was the top priority
Perfect diffusion of consultancy and vendor

CHANGE THE SYSTEM OR CHANGE

THE PROCESS?

CHANGE THE SYSTEM

Advantages
Existing System can be used readily in less time.
Better technical support from the vendor.
Existing systems are more robust and technologically proven
Less downtime in case of failure

Incorporates best practices in the industry

CHANGE THE SYSTEM

Proven track record

Can provide the business with a greater competitive

advantage that a bought solution.
Allows you to differentiate from your competitors (as the
system is developed for your specific needs.
It gives you full control over the system and its functionality

CHANGE THE PROCESS

Reduce the cost on customization
It helps to reorganize business functions, identify the core
activities and processes as well as inefficient or obsolete ones.
ERP can be implemented easily with shorter time frame.
Gives you full control over the process
Fits exactly to the Software specification

CASE OF CISCO
Size of the organization :Focus on core processes
Processes to be standardized
Shorter time frame
Budget Constraints
Long term solution