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Cisco Systems: Implementing Customized ERP in Nine Months

By: Rahul Ahuja Monika Singh Arun Kumar Shilpi Jain

6/3/12

Type

INC

CISCO SYSTEMS
Public San Francisco, California, U.S.

Founded (1984) Headquarters Area served

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San Jose, California, U.S. Worldwide

Analyze the Problem in Existing System:

Existing System: UNIX-based software package.

Problems: i. ii.

Unable to meet the requirements of companys rapid growth. Did not provide: Degree of redundancy, reliability &

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Evaluate Alternative Solutions:

Decision

of new system implementation was made based on the factors - Less time, Low customization & High priority. company had two options available: To purchase single ERP system the existing legacy

The

Upgrading 6/3/12

What is ERP?

Enterprise Resource Planning (ERP) is a system which brings all the decision making information from all the departments in a company into one single place in order to increase efficiency, productivity and profit of the company.
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ERP Block Diagram:

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Benefits of ERP:
Streamlining Reduce

processes and workflows with a single integrated system. redundant data entry and processes and in other hand it shares information across the department. uniform processes that are based on recognized best business practices workflow and efficiency

Establish

Improved
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Contd
delivery,

increased quality, shortened delivery times inventory costs resulting from better planning, tracking and forecasting of requirements collections faster based on better visibility into accounts and fewer billing and/or delivery errors

Reduced

Turn

Decrease

in vendor pricing by taking 6/3/12 better advantage of quantity breaks

Select Consulting:
Cisco

decided to involve a consulting partner that would: Provide consulting services. Also help to choose ERP vendor. KPMG appeared to be the ideal partner.

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Select ERP Vendor:

Through

a rigorous process of selection, Oracle was chosen for following reasons: Better manufacturing capability. Promises of long-term functionality development. Geographical closeness to Cisco.

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Budget, Schedule & the Outlook:

Budget:

Approximately $15

million.
Schedule:

Nine months.

Outlook:

Institutionalize a business model for the organization.

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Managing the Implementation Team:

Comprised of management from Cisco, Oracle & KPMG

Executive Steering Committee

Project Management Office (PMO)

Comprised of Ciscos Business Project Manager, KPMGS Project Manager & the Project management Team from Oracle Sales/reporti Manufacturi Financ ng ng e Cisco Business Leader. Cisco system leader. 10-20 Personnel from Cisco. 1 IT consultant from KMPG. 1 IT consultant Cisco Business Leader. Cisco system leader. 10-20 Personnel from Cisco. 1 IT consultant from KMPG. 1 IT consultant Cisco Business Leader. Cisco system leader. 10-20 Personnel from Cisco. 1 IT consultant

Monitored Progress of PMO

Order Entry
Cisco Business Leader. Cisco system leader. 10-20 Personnel from Cisco. 1 IT consultant from KMPG. 1 6/3/12 IT consultant

Technolo gy
Cisco Business Leader. Cisco system leader. 10-20 Personnel from Cisco. 1 IT consultant

Develop the System in Prototype:

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Contd
Implementation

as broken into a series of phases called Conference Room Pilots.

CRP0:

i. ii.

Training Ciscos Employees on Oracle Package.

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Spelling out 80 % of the

Contd
CRP

1 (Built on CRP 0):

Customization of CRP 0, according to the requirements of the departments, supported by Oracles 5 modules (Order Entry, Manufacturing, Finance, Sales/reporting, technology).

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Contd
CRP

2 (Enhancements, Perfection & Testing):

Enhancement of CRP 1 to add following features:

Incorporation the new after sales support package.

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Contd
CRP

3:

Load testing the entire project. Assessing the date when the system could start operation.

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Initial Instability & Its Correction:

Initial

Instability:

On an average, system went down once a day due to following problems: Primary Problem: Hardware Architecture

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Contd
Correction:

Need to purchase additional hardware, but this increased the project expenditure.

Cisco pulled an attractive deal to purchase a promised capability, rather than specific configuration. 6/3/12