Cisco implemented an ERP system and web-enabled architecture to address limitations in its legacy system and enable greater collaboration, scalability, and integration to support its growth strategy. Key factors that allowed implementation within nine months included adopting a standard ERP system for training, prioritizing the project, and limiting customization. The web architecture provided benefits like improved customer service, training, and supply chain integration but required $100 million investment with security risks. As CIO, justifying costs based on standardized processes, scalability, time/cost savings, competitive advantage, and breakdown of implementation costs.

1. CASE REPORT
Cisco Systems Architecture:
ERP and Web-enabled IT
BY-
NIKITA SHAH
PRINCE KUMAR
SANJEEV SAHU
SHEKHAR BARDIA
Cisco Systems
Architecture
:ERP and Web-
enabled IT
BY-
 SANJEEV SAHU
 PRINCE KUMAR
 NIKITA SHAH
 SHEKHAR BARDIA

2. Was the decision to implement ERP justified for CISCO?
1. Repairing the existing Legacy System: Failure of the legacy system led to
business losses and constrained the company in scaling upwards. Repair to the
existing system had already been done before but to no avail. So, repairing the
existing system was not sufficient. Existing system could not handle the high growth
rate which the company was experiencing
2. Requirement of a robust system: CISCO wanted to create a broad product line as
per its CEO’s business strategy. So, they required a robust system to support its new
business requirements.
3. Growing recognition of the power of cross-functional collaboration and internal
demand for systems and processes that facilitate better interactions.
4. Increasing demand for collaboration with suppliers, distributors, partners and
customers.
5. Opportunities for enhancing ERP systems in support of online business models
6. Supply chain automation through ERP system allow market demand signal to flow
directly to contract manufacturer without any distortion or delay.
What were some of the key factors that enabled them to implement the
system in nine months?
a. Opting for standard ERP system- They adopted standard ERP system by
which everyone was trained and not a system that would allow a lot of
customization. A customized system would have stretched the time as it
would require training in every department as in their respective method of
operation.
b. Prioritization of goal- The project was assigned as one of the top goals of the
company. Every department was picked up and asked to implement the
system in a quick and efficient way.
c. Cisco correctly anticipates a surge in demand for their products. The current
operational infrastructure would simply not accommodate this flux of
volume. That level of growth could literally choke the organization. Therefore,
it was necessary to find a feature rich and scalable solution to bring in all the

3. data silos, compartmentalized operations, and disparate sales methods and
product lines .This paved the way for the replacement of existing systems “big
bang” with one ERP solution in an estimated time period of nine months.
d. Less customisation in the system: They adopted a standard ERP system by which
everyone was trained and not a system that would allow a lot of customisation. A
customised system would have stretched the time as it would require training every
department as per their respective method of operation.
What are the benefits of the Web Enabled architecture at CISCO? What are the
drawbacks of the architecture? As CIO, would you have done anything
differently?
Benefits to employees
 Training and distance learning module are provided
 CEC provides access to information tools, resources and services like HR
 Intranet: employees can use video of CISCO’s quarterly meeting on their PC
 Personalized home page for employees provides information about worldwide
finance market-My Yahoo!
 EIS and DSS- internal methods of sales tracking and reporting provided
information about booking, backlog, revenue, not booked, forecast and plans
for all products, customers, channels, geographic and market.
Benefits to customers
 CISCO.com- To answer questions, diagnose network problem, provide
solution and expert assistance.
 Through CISCO connection online, the customer navigated to the information
needed for the interaction work, or published and subscribed. (i.e. )the
customer directly contributed information request to do business with CISCO’s
intellectual asset base
 Provide 80% of CISCO’s technical support, saving $506 million annually
 Customer service became efficient and transparent
Supply Chain Mechanism
 Integrate suppliers into its production system to respond to customer demand
in real time
 New product introduction reduce time and cost due to web enablement
 Auto test allow quantity issue to be deleted at the source
 Direct order fulfilment from partner to customer by passing CISCO reducing
delivery time
DRAWBACKS:
a. Security breach was a danger as this interconnected model was suspect
ready to web programmers

4. b. Investment of $100 million in supplanting the framework was gigantic in
connection to the expense of execution of ERP, which was $15 million as
it were
SUGGESTION:
As a CEO, we would ensure that the security issues are given a top priority
and a firewall is installed to make it hacking proof.
How would you justify the expenditure that CISCO incurred in implementing
the web enabled architecture? You do not have enough information to actually
do a cost-benefit analysis. However, you can discuss what approach you
would use to justify the expenditure.
Cisco wanted all their process to be standardized and robust so that the
scalability is improved. They accept to replace systems with one ERP solution
in 9 months for $15M.Project completed successfully on time. Formed
centrepiece of the 2-yr $100 million series of initiatives to replace all IT
applications and platforms worldwide. The following advantages were the
result of this decision.
. It gave Cisco a direct upper hand over others as execution of web
business arrangements put them early and made them innovatively extremely
progressed.
. Workers could be prepared in practical way using self-administration
application.
. Dynamic recharging diminishes postponements and blunders, and
spared them $275 million through increment productivity.
Breakdown of Implementation costs for Cisco ERP Implementation
. Hardware 32%
. Headcount 14%
. System Integration 38%
. Software 6%