cisco erp analysis

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    Analysis on Cisco ERP Implementation

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    CISCO

    ERP IMPLEMENTATION Successful project with $15 million and 9 months timeline

    Not an exception, like many companies ERP implementations issues

    Effective collaboration with partners, vendors

    Committed internal management

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    CISCO

    ERP IMPLEMENTATION Major Decisions

    De-Centralization to Centralization

    Rapid Iterative Prototyping

    Promised Capability rather than Specific Configuration (Hardware

    Vendor)

    Service Support Package ( Oracle )

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    Observed after the implementation of an ERP system

    Decrease in Process and Organizational performance immediately

    due to issues with adopting to new system after GO-Live

    Increases performance above the initial level several weeks ormonths after the dip

    ANALYSIS - PERFORMANCE DIP

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    ANALYSIS

    SMART OR LUCKY(GENERAL)

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    ANALYSIS SMART OR LUCKY

    (GENERAL) Smart

    More likely to be able to repeat than luck

    Able to discern patterns and trends

    Able to discern not just the trends, but they can see that the trendwill not last

    Lucky Neither care about trends nor changes in trends What they choose works

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    ANALYSIS SMART OR LUCKY

    (LITERATURE)

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    ANALYSIS SMART OR LUCKY

    (LITERATURE) Insider's look at the combination of luck and smarts Success = Smart + Luck Smartest people with excellent technology may fail A company with same idea may become a huge

    success Companies lucky enough to be at the right place at

    the right time can fail - if unable to figure out a way tosustain

    Combine right timing with a well-conceived strategyto continually innovate for the long run.

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    Specific ( 6 W Questions )Measurable ( H Questions )Attainable ( attitudes, abilities, skills, and financial capacity )Realistic ( willing and able to work )Timely (no time frame no sense of urgency )

    ANALYSIS SMART OR LUCKY

    (THEORETICAL)

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    CISCO CASE PERSPECTIVE

    -SMART OR LUCKY ?

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    SMART RESEARCH AND

    PLANNINGPROJECT SELECTION TEAM -Best people from the company,employees of KPMG- strong integration partner to aid the overall selectionand implementation process

    Looked at experiences of other companies implementing ERP systems

    Selection of an ERP vendor which had the capacity to suit Ciscos goalsof significant future growth

    Thorough UnderstandingCiscos team members also visited other companies which implemented anERP systemthree-day software demonstration

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    SMART RESEARCH AND

    PLANNING (Cont..)ERP Implementation was one of the seven toppriorities of that year

    Strong end-user involvement

    Users received intense training from Oracle

    Top Management support can be considered asvery high, which is one of the keys to successful

    ERP implementation.

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    LUCKThey were in a very good bargaining position with OracleOn the day of presentation to the board the IT system

    crashed this helped them convince the board members

    fasterAll the changes made after the implementation regarding

    the hardware had to be made out of the hardware vendorspocket

    Extensive support from KPMG and Oracle

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    SIX KEY POINTS FOR CISCOS

    SUCCESSFUL ERPMaintaining a focus on core business objectives and integrating ERPimplementation with overall business strategy

    Selection of the hungry and financially strong vendors

    Compilation of the best staff on Steering Committee, and put the bestpeople on team

    Full support of top management from the very early beginning, butthreat to fire CIO upon failure

    ERP project was the top priority

    Perfect diffusion of consultancy and vendor

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    CHANGE THE SYSTEM OR CHANGETHE PROCESS?

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    CHANGE THE SYSTEMAdvantages

    Existing System can be used readily in less time.

    Better technical support from the vendor.Existing systems are more robust and technologically proven

    Less downtime in case of failure

    Incorporates best practices in the industry

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    CHANGE THE SYSTEMProven track record

    Can provide the business with a greater competitiveadvantage that a bought solution.

    Allows you to differentiate from your competitors (as thesystem is developed for your specific needs.

    It gives you full control over the system and its functionality

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    CHANGE THE PROCESSReduce the cost on customization

    It helps to reorganize business functions, identify the coreactivities and processes as well as inefficient or obsolete ones.

    ERP can be implemented easily with shorter time frame.

    Gives you full control over the process

    Fits exactly to the Software specification

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    CASE OF CISCOSize of the organization :Focus on core processes

    Processes to be standardized

    Shorter time frame

    Budget Constraints

    Long term solution

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