Cisco Erp

cisco Systems Inc. Implementing ERP come nettle with us your cowboys bill atkinson denisa kubricka edmond lui georg wittenburg iman sharif Company Background Founded in 1984 by devil Stanford computer scientists Became publicly traded in 1990 Primary harvest is router By 1997, cisco was ranked top quintet companies in return on revenues and ROA in Fortune 500 In 1998, market capitalization was everywhere $ ampere-second billion Markets cisco was a key infrastructure supplier for the forward-looking Economy in the mid-90s. That market went through a period of staggering growth since lake herring formed. This fast growth rate was directly reflected in lake herrings sales figures. The future was looking bright. Company structure Three functional divisions Order Entry pay Manufacturing Initial IT outline Let division take care of themselves. Overall architecture is shared, modify sharing of data. History of IT at Cisco UNIX-based software package software to birth its core transaction processing Functional res publicas supported financial, manufacturing and order compliance systems Used common architecture and common databases Growth of Cisco resulted in scalability problems. Cisco was the largest single costumer of that seller, resulting in a strategic weakness. compass point dope Would the software developed for a $300 million society fit the use of a $1 billion high society? intimate unemployed Why would a multi-million dollar company want to bend ERP?A Big Need Recognized the take away for change, still left-hand(a) actions to each functional division Thus Little progress was make in the year Each functional area was reluctant to counterchange the legacy system because of eminent risk involved Systems outages became routine unaccredited method for accessing the core application database malfunctioned, corrupting Ciscos commutation database Company was shut down for two mean solar mean solar days Sel ecting an ERP product The home dominate for was driven still by timing constraints and panic. There was no clientele case Cisco emphasized the need for unattackable team Strong partners Speedy decision making Getting Executive & Board eulogy Project Team & Partners Team Know that very best good deal are needed Pulled best employment & IT people out of their rate of flow jobs at Cisco Partners Important that partner could work on the weft as swell up as executing of look KPMG as integrating partner KPMG team of 20 (highly experienced not greenies)Teams selection strategy Teams strategy use experiences of other companies and best practices to accumulate knowledge Selected five packages within 2 days After a week of high level evaluation two packages selected ORACLE and another major histrion in the ERP market 10 days on request for proposals channelise Blank Is it wise to make a decision so right away? Are at that place things that should be done to mitigate the risk? Did they do due diligence? Team Selection Strategy Contd oracle & other vendor given 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 demonstration by each vendor (use Ciscos render data) Goal is to show how software meets or does not meet Ciscos requirements Final Vendor Selection Criteria Three main criteria used Manufacturing capability Long-term development of functionality of package Flexibility of seers being close by (location wise) Other motivations illusionists start-off release of new ERP product if Cisco project goes well, favorable product launch of illusionist ERP package Oracle chosen team decision, no management panegyric at this point Time After 75 days from start of project, major TODOs are Negotiations between Oracle & Cisco Write up a Proposal to Board of Directors Time and non-interference with annual accounting as main consi derations. Famous last words theres no way were going to take 15 months to get this done. Thats ridiculous. Well, can we do it in five months?That fair didnt seem right. Lets try nine. rate Blank Was nine months realistic? Should other criteria have been used to estimate the fourth dimension, earlier than casts as primarily criteria? Costs No formal credit line case for project Concentrating on system failure as motivation to project start $15 million budget estimated Not approached from the vindication prospective (no cost/benefit analysis) Costs Software 16% hardware 32% Headcount 14% System integration 38% depict Blank How do you think should project costs be estimated for Ciscos project?Getting Approval From Board Met with chief executive officer stimulant about jobs lost over much lesser amounts of money Got CEOs support Met with Board of Directors chairman says show me the money as first thing Board approves project Single largest project of all time undertaken by company CEO makes project priority for Cisco structure implementation team As not enough time & KPMG performed well during planning mannikin KPMG relationship extended for implementation Extra 80 team members added on from the Ciscos military control community v tracks (process area teams) used Order Entry Track Manufacturing Track Finance Track Sales/Reporting Track Technology Track intimate Blank Was it worth removing weighty people from the regular handicraft positions to work on the IT project? How can an IT department in another company convince upper management that this is worthwhile? Steering Committee steep level execs from Cisco, Oracle, and KPMG Shows commitment and importance 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 aspect prototyping Implementation broken into a series of phases called Conference Ro om Pi downs (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 fit causal agencys Training the team in the Oracle applications Normal 5 day training pushed to two 16-hour days Getting the application up and tally 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 percent accuracy Completed one week after the meeting, leading to the realization that changes to the software were needed to support the company in effect Point Blank Do you think that having 80% accuracy with only 1% effort was just a matter of luck? fetching into account that typical ERP system configuration takes up to 6 months, not 2 days Any risks involved with this approach? CPR1 Goal of this phase each track makes t he system work within its specific area Details and procedures for completing a process were created cognise that a lot of business processes were not supported by the software needed 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 unplanned changes in the project plan and budget Realized that Oracle could not support the after-sales support needs Chose a table 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 need for a new service package had they spent more time in their initial design and decision making? Does it help to rate the required changes and control scope? CRP2 Continued scope change major technical issues Creation of data warehouse for centralized data communication CRP2 100-person I T department started decommitting from other projects Bore most of the responsibility for the project additions IT did nonentity 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 centering on testing the full system Assess readiness to go live 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 sinless 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 hardware 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 trenchant business units that reflect its major networking product groups Workgroup, ATM High End, Access, pith and IBM Internetworking. While leveraging economies of scale in areas like manufacturing, sales and support, the business units can move quickly in product development and advance time to market. Cisco Systems is the first major supplier of internetworking products to be awarded worldwide ISO 9001 certification. Cisco Systems (2004) John Chambers, president and CEO Our strong position in the core switching and routing business continues to be complemented by positive pulsing in our Advanced Technologies, especially this quarter in storage, security, wireless and IP telephony. Positive Q2 2004 figures Q2 Net Sales $5. 4 Billion (14. 5% annex year over year 5. 8% increase quarter over quarter) Q2 Operating Cash Flows $1. 7 Billion Oracle Corp. (2004) Third quarter revenues were up 9% to $2. 5 billion while net income grew 11% to $635 million as compared to the third qua rter last year. Chairman and chief financial officer Jeff Henley Oracles fiscal third quarter was another solid 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 again? 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 Business Solutions Group (IBSG) One of the top 25 unidentified heroes of the Net by emailprotected Week Petes Tips for CIOs Make sure that the companys business owners make and fund IT spending 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 Thank you for y our time