2. Justification for implementation of ERP at
cisco
Key factors for the speedy implementation
Benefits and drawbacks of web enabled
architecture
Cost incurred for web enabled architecture
AGENDA
3. Was the
decision to
implement
ERP justified
forCISCO?
Why, or why
not?
Yes, the decision to implement ERP was justified
The IT architecture of Cisco was standardized
Gave a high level of flexibility
Enabled them to use current technology- no mainframes,
no mini-computers, no legacy technology
Very low-cost/high-value technology architecture
Provided the foundation for web enablement
4. What were
some of the
key factors
that enabled
them to
implement the
system in nine
months?
Strong integration partner in KPMG
KPMG brought people with great technical skills and
business knowledge
Built knowledge by leveraging the experience of Big 6
accounting firms
Replaced the existing IT infrastructure instead of upgrading
Narrowed the field to 5 packages in 2 days
Had to choose between oracle and other player
Project was manufacturing driven and Oracle had better
manufacturing capabilities
Implemented using a new release of the Oracle ERP
product
5. What are the
benefits and
drawbacks of the
Web Enabled
architecture at
CISCO?AsCIO,
would you have
done anything
differently?
BENEFITS
Made majority of internal applications web enabled
Provided centralized access to information, tools, resources for
employees
Enhanced the ability to communicate with employees
Distance learning modules could be made available
cisco.com; electronic communication with customers
E-commerce; Productivity gains of 60% for Cisco and 20% for
customers
EIS and DIS
DRAWBACKS
As the company and contractors were interconnected - Cisco’s data
could be compromised
High cost for web- enablement when compared with implementation for
ERP($15 millions v/s $100 millions)
6. Justification for
expenditure for
web-enablement
Web enablement expenditure- capital expenditure
Increase in year-on-year net sales by 57% in
1997,31% in 1998, 43% in 1999, 80% in 2000
As the business was growing fast due to moving
into new IT architecture, its IT expenses were
significantly lower, this enabled them to invest in
R&D
CISCO gained competitive advantage increased
shareholders value due to implementing internet
business solutions
Technical support to the customers delivered
electronically saved Cisco $506 millions annually
