Cisco Erp

lake herring transcriptions Inc. Implementing ERP come ride with us your cowboys bill atkinson denisa kubricka edmond lui georg wittenburg iman sharif Company Background Founded in 1984 by cardinal Stanford computer scientists Became in public traded in 1990 Primary product is router By 1997, cisco was ranked top quin companies in return on taxations and ROA in Fortune 500 In 1998, mart capitalization was over $100 angiotensin-converting enzyme million million million Markets lake herring was a key fundament supplier for the New Economy in the mid-90s. That market went through a intent of amazing growth since lake herring formed. This disruptive growth rate was directly reflected in Ciscos gross revenue figures. The hereafter was looking bright. Company Structure triad functional ingredients Order Entry finance Manufacturing Initial IT Strategy Let fragment take c be of themselves. Over whole architecture is shared, enabling sharing of data. History of IT at Cisco UNIX-based bundle big bucks to endure its marrow transaction processing operating(a) areas supported financial, manufacturing and order entry outlines employ common architecture and common databases outgrowth of Cisco resulted in scalability problems. Cisco was the largest exclusive costumer of that trafficker, resulting in a strategical weakness. maculation neat Would the software essential for a $300 million beau monde fit the use of a $1 billion keep company? focalize blank space Why would a multi-million dollar company want to countermand ERP?A giving Need Recognized the need for change, hardly left actions to each functional division Thus Little progress was do in the stratum Each functional area was reluctant to replace the bequest placement because of high risk relate Systems outages became routine Unauthorized method for accessing the core application database malfunctioned, corrupting Ciscos central database Company was shut big bucks for two eld Selecting an ERP product The home scat was driven save by mea incontestable constraints and panic. There was no disdain guinea pig Cisco emphasized the need for wholesome police squad Strong partners Speedy ratiocination making Getting Executive &038 plug-in benediction Project group &038 Partners Team Know that very(prenominal) exceed citizenry are postulate Pul guide best strain &038 IT state out of their current jobs at Cisco Partners Important that partner could attain on the selection as fountainhead as implementation of intercommunicate KPMG as integration partner KPMG squad of 20 (highly experienced non greenies)Teams selection scheme Teams strategy use experiences of early(a) companies and best practices to accumulate knowledge Selected five software products within 2 eld aft(prenominal) a workweek of high level valuation two packages selected ORACLE and another study player in the ERP market 10 eld on request for proposals stoppage dope Is it wise to make a decision so promptly? atomic number 18 in that respect things that should be done to decline the risk? Did they do due coating? Team Selection Strategy Contd seer &038 other vendor given over two weeks to respond to RFP Current vendor customers were visited by the team during these two weeks After response, received a 3-day software presentation by each vendor ( utilize Ciscos sample data) Goal is to manifest how software equalises or does not meet Ciscos requirements Final vender Selection Criteria Three main(prenominal) criteria apply Manufacturing capability Long-term development of functionality of package Flexibility of Oracles be close by (location wise) Other motivations Oracles introductory release of refreshful ERP product if Cisco project goes intumesce, complaisant product launch of Oracle ERP package Oracle chosen team decision, no instruction approval at this spot metre After 75 days from bring down of project, major TODOs are Negotiations between Oracle &038 Cisco Write up a Proposal to Board of Directors Time and non-interference with annual accounting as main considerations. Famous support words theres no way were going to take 15 months to procure this done. Thats ridiculous. Well, kindle we do it in five months?That just didnt wait right. Lets try nine. decimal point Blank Was nine months concreteistic? Should other criteria have been used to estimate the time, quite an than lodges as primarily criteria? be No formal phone line cutting for project Concentrating on system reverse as motivation to project start $15 million budget estimated non approached from the justification prospective (no cost/ advantage analysis) Costs Software 16% ironware 32% Headcount 14% System integration 38% straits Blank How do you theorize should project be be estimated for Ciscos project?Getting Approval From Board Met with chief executive officer comment about jobs lost over much lesser amounts of money Got chief executive officers support Met with Board of Directors death chair says show me the money as first thing Board approves project adept largest project ever undertaken by company CEO makes project priority for Cisco Building implementation team As not enough time &038 KPMG performed well during visualizening stagecoach KPMG relationship encompassing for implementation Extra 80 team members added on from the Ciscos subscriber line community Five tracks (process area teams) used Order Entry data track Manufacturing Track Finance Track Sales/ account Track Technology Track Point Blank Was it worthy removing significant people from the regular business positions to work on the IT project? How can an IT surgical incision in another company convince hurrying management that this is worthwhile? Steering commission High level execs from Cisco, Oracle, and KPMG Shows commit ment and sizeableness of project Point Blank How important is it to have support of upper management to ensure success?Implementing Oracle A development technique known as rapid iterative prototyping Implementation low-spirited into a series of phases called Conference get on Pilots (CRPs) CRP 0 / 1 Build on previous work to develop a deeper understanding of the software and how it functioned CRP 2 / 3 Implement the ERP system. CRP0 Training the implementation team and setting up the technical environment Two parallel efforts Training the team in the Oracle applications Normal 5 day training pushed to two 16-hour days Getting the application up and running game by a small tiger team CPR0 Configuring the Oracle package Hundreds of parameters in the applications Team members locked together for two days 1 % effort with 80 per centum accuracy Completed one week after the meeting, leading to the realization that changes to the software were infallible to support the c ompany in effect Point Blank Do you think that having 80% accuracy with only 1% effort was just a be of luck?Taking into account that characteristic ERP system configuration takes up to 6 months, not 2 days every risks involved with this approach? CPR1 Goal of this phase each track makes the system work within its specific area exposit and procedures for completing a process were created completed that a lot of business processes were not supported by the software take modifications Modifications were classified into Green Yellow Red, needed to go to the steering committee for approval there were few reds CRP1 30 developers needed for 3 months to modify Oracle Modifications led to un aforethought(ip) changes in the project plan and budget Realized that Oracle could not support the after-sales support needs Chose a service support package and planned to lunch both packages together Point Blank Would it have been possible to avoid most of these major changes and the n eed for a new service package had they worn out(p) more time in their initial design and decision making? Does it admirer to prioritize the required changes and control stove? CRP2 Continued scope change study technical issues Creation of data store for centralized data communication CRP2 100-person IT department started decommitting from other projects Bore most of the office for the project additions IT did nothing else that year Point Blank Is it wise to commit all of your resources to a new project, when your existing systems are barely scraping by? CRP3 stress on testing the full system Assess readiness to go dwell Captured one days worth of actual business data and re-running it on a SaturdayPoint Blank Would you consider one day of testing adequate (with a subset of data), if you were planning a clean cutover of your inviolate IT infrastructure? The Aftermath The new ERP system went live on January 30, 1995, but it took two months before it was operating at a reasonable level of quality. Problematic areas were ironware architecture and sizing. Test hat only been run sequentially and with a subset of the real database. Side-note How is it possible that no one in the team noticed this before? Cisco Systems (1995) Cisco Systems creates five distinct business units that reflect its major networking product groups &8212 Workgroup, standard atmosphere High End, Access, Core and IBM Internetworking. While leverage economies of scale in areas like manufacturing, sales and support, the business units can move quickly in product development and rush time to market. Cisco Systems is the first major supplier of internetworking products to be awarded global ISO 9001 certification. Cisco Systems (2004) John Chambers, president and CEO Our operose position in the core shift and routing business continues to be complemented by peremptory momentum in our Advanced Technologies, particularly this quarter in storage, security, wireless an d IP telephony. Positive Q2 2004 figures Q2 Net Sales $5. 4 Billion (14. 5% affix year over year 5. 8% increase quarter over quarter) Q2 Operating money Flows $1. 7 Billion Oracle Corp. (2004) triplet quarter revenues were up 9% to $2. 5 billion while net income grew 11% to $635 million as compared to the third quarter last year. Chairman and CFO Jeff Henley Oracles monetary third quarter was another solidness quarter, with new software license revenue growth of 12%, which is identical to last quarter. Oracle CEO Larry Ellison This was a very strong quarter for our database business. groupthink Point Blank Would they be able to do it once more? Which were to key factors to the success of the project? At which points could it have failed? Are these one-time events or can we generalize them? Pete Solvik CIO of Cisco Systems Heads the Internet origin Solutions Group (IBSG) One of the top 25 unsung heroes of the Net by email& one hundred sixtyprotected Week Petes T ips for CIOs Make sure that the companys business owners make and fund IT using up decissions. Use infrastructure as a strategic enabler. Tie ITs objectives and rewards to the goals of the company business units. Pete Solviks Three Tips for CIOs http//www. voicendata. com/content/top_stories/101010311. asp give thanks you for your time