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Cisco Systems:Implementing

Customized ERP inNine Months

By:Rahul Ahuja

Monika SinghArun Kumar

Shilpi Jain

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CISCO SYSTEMS

INCType Public

Founded San Francisco, California, U.S.(1984)

Headquarters San Jose, California, U.S.

Area served Worldwide

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Analyze the Problem inExisting System:

Existing System: UNIX-basedsoftware package.

Problems:

i. Unable to meet the requirements ofcompanys rapid growth.

ii. Did not provide: Degree of

redundancy, reliability &

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va ua e er a veSolutions:

Decision of new systemimplementation was made based on

the factors - Less time, Lowcustomization & High priority.

The company had two optionsavailable:

To purchase single ERP system

Upgrading the existing legacy

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What is ERP?

Enterprise Resource Planning (ERP) isa system which brings all the decisionmaking information from all the

departments in a company into onesingle place in order to increaseefficiency, productivity and profit of

the company.

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ERP Block Diagram:

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Benefits of ERP:

Streamlining processes and workflowswith a single integrated system.

Reduce redundant data entry andprocesses and in other hand it sharesinformation across the department.

Establish uniform processes that arebased on recognized best businesspractices

Improved workflow and efficiency

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delivery, increased quality, shorteneddelivery times

Reduced inventory costs resulting frombetter planning, tracking andforecasting of requirements

Turn collections faster based on bettervisibility into accounts and fewerbilling and/or delivery errors

Decrease in vendor pricing by takingbetter advantage of quantity breaks

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Select Consulting:

Cisco decided to involve a consultingpartner that would:

Provide consulting services. Also help to choose ERP vendor.

KPMG appeared to be the idealpartner.

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Select ERP Vendor:

Through a rigorous process ofselection, Oracle was chosen forfollowing reasons:

Better manufacturing capability.

Promises of long-term functionalitydevelopment.

Geographical closeness to Cisco.

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u e , c e u e eOutlook:

Budget: Approximately $15million.

Schedule: Nine months.

Outlook:

Institutionalize a business model

for the organization.

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Implementation Team:

Executive Steering CommitteeComprised of management from Cisco, Oracle

& KPMG

Project Management Office(PMO)

Comprised of Ciscos Business Project Manager,KPMGS Project Manager & the Projectmanagement Team from Oracle

Order Entry

Cisco BusinessLeader.Cisco systemleader.10-20Personnel fromCisco.1 IT consultant

from KMPG.1 IT consultant

Cisco BusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 IT consultantfrom KMPG.1 IT consultant

Cisco BusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 IT consultantfrom KMPG.1 IT consultant

CiscoBusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 ITconsultant

CiscoBusinessLeader.Cisco systemleader.10-20Personnelfrom Cisco.1 ITconsultant

Manufacturing

Finance

Sales/reporting

Technology

MonitoredProgressof PMO

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Develop the System inPrototype:

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Implementation as broken into aseries of phases called ConferenceRoom Pilots.

CRP0:

i. Training Ciscos Employees onOracle Package.

ii. Spelling out 80 % of the

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CRP 1 (Built on CRP 0):

Customization of CRP 0, accordingto the requirements of thedepartments, supported by Oracles

5 modules (Order Entry,Manufacturing, Finance,Sales/reporting, technology).

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CRP 2 (Enhancements,Perfection & Testing):

Enhancement of CRP 1 to addfollowing features:

Incorporation the new after salessupport package.

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CRP 3:

Load testing the entire project.

Assessing the date when the systemcould start operation.

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a s a y sCorrection:

Initial Instability:

v On an average, system went downonce a day due to followingproblems:

Primary Problem: HardwareArchitecture

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Correction:

Need to purchase additionalhardware, but this increased theproject expenditure.

Cisco pulled an attractive deal topurchase a promised capability,

rather than specific configuration