Transcript Cisco Systems

Cisco Systems, Inc.
MBAA 609
R. Nakatsu
Enterprise Resource Planning
ERP is a cross-functional enterprise system
driven by an integrated suite of software
modules that supports the basic internal
processes of a company.
Applications: Human Resources, Financials,
Supply Chain Management, Manufacturing,
CRM
Benefits of ERP
Better quality in terms of improving a
company’s internal business processes
 Better integration of applications
 Better decision support in terms of
providing vital cross-functional information
on business performance
 Reduction in support and maintenance
costs
Question for discussion: What are some of
the problems and limitations of ERP?

Background on Cisco
What kind of company is Cisco? What is it
most famous for?
 What is the context of the case? (Describe
the (1) internal and (2) external (i.e.,
environmental) factors under which Cisco is
operating).
 What was the initial approach at Cisco for
developing IT?
 Why ERP?

How does the Internet (TCP/IP)
work?
Packet-switched network: information is
broken into packets by TCP/IP.
 Dynamic routing: even if one part of the
network is knocked out, packets can be
rerouted around the problem. Demo
 Highly decentralized: millions of servers
reside all over the world; nobody really
“owns” the Internet

Questions on Case
Question 1: At the start of the case, Cisco’s information systems
are failing, yet no one steps forward to lead the effort to replace
them. Why is this? Why were no managers eager to take on
this project?
Question 2: Cisco was highly successful with its enterprise
resource planning (ERP) effort. What accounts for this
success? What were the most important things that Cisco did
correctly?
Question 3: What is rapid iterative prototyping? Briefly describe
three things that enabled a quick implementation during rapid
iterative prototyping (see pp. 8 – 10 of the case).
Question 4: Did Cisco do anything wrong on this project? If so,
what?
Implementing Quickly
What is rapid iterative prototyping?
CRP0: how did they work quickly in this
phase?
CRP1: each track works in parallel; how did
they manage scope creep?
CRP2 AND CRP3: most difficult part of the
implementation; utilization of a data
warehouse; full commitment by the IT
Dept.
Change the business process or
change the software?
Why was Cisco reluctant to change the
ERP software—that is to say, why is it
sometimes more desirable to change
your business process to “fit” the
software?
 Is this always the case?

Main Takeaways of Cisco Case
Understand the following:
 What ERP is and what its benefits and problems are
 The “internal” and “external” factors of Cisco that led
it to ERP. Why ERP?
 Why lower and mid-level managers were reluctant to
volunteer to take charge
 What the best practices are for developing a big
system like ERP
 What the purpose of rapid iterative prototyping is
 What Cisco might have done differently
 Why it is sometimes better to change the business
process rather than the software.