Cisco Systems, Inc. Implementing ERP

ALSO, INITIATION OF PROJECTS, etc.

FROM LAST WEEK

In a commercially disruptive technology, you are better off to find a market that will accept your product "as is" than you are to create a market to accept your product.

Customer input can be very misleading in emerging markets.

FROM LAST WEEK

Don't ever, even come close to thinking about assuming anything (it’s among the dumbest things you will ever do in your life!!).

Avoid allowing your performance (or the performance of your product) to be based on things outside of your control.

FROM LAST WEEK

If you rely on the success of underlying (or other people), your probability of success is based on the product of their probabilities i.e. if 1 = 0.8, 2 = 0.75, 3 = 0.65 and 4 = 0.85, the probability of your success is 0.8 x 0.75 x 0.65 x 0.85 = 0.33 !! Not so good!!

FROM LAST WEEK

If/when a new technology actually does foster the development of a new market, an incubation period often exists through which potential customers need to work in order to understand how they might incorporate this new technology into their product base.

Project Initiation

•Absolutely believe in the importance of your project

•Do all of the groundwork yourself, i.e. do not rely on purchasing to find sources for whatever it is that you want.

Prepare an Information Checklist

This checklist is to be certain you have all of the bases covered, such as;

•Cost

•Justification

• Is a disposal required

Prepare an Information Checklist

•Are there any ongoing costs associated with the project such as a maintenance contract, manpower, supplies, etc.

•If a replacement, why (age, obsolete process, etc.)

If this project is for a piece of equipment etc. that replaces something, prepare the asset disposal request accordingly.

ASSET DISPOSAL REQUEST

Hip-Pocket Information for those not as smart as you!

•Hard as it is to believe, some workers report to bosses that are not that bright in the area of technology!!

Hip-Pocket Information for those not as smart as you!

It should include, but not be limited to:

Background

Financial Info

Tax info, etc..

Finally, The Grand Slam

Funds of x$ are requested to purchase a something. Prior to the purchase of this something, (life was rough) because of y.

Purchasing this thing will allow your department to function more efficiently (define) . . . Be careful not to even come close to implying a manpower cut unless you really believe it can be because that’s what is being thought!!

Finally, The Grand Slam

•If we don’t get this thing, the world will end because of something else.

•Let me repeat that you must actually believe in the importance of this “thing” which ultimately results in spending funds of the company that you may be retiring from some day, so if you don’t really need it, don’t buy it!!

Finally, The Grand Slam

•The final statement on your request for funds should include information about utility costs, disposal costs, training costs/time, keeping up with the rest of the industry, whether the price is F.O.B. , is it environmentally friendly(er) etc.

One Last Thing

Prepare an Executive Summary to Include:•Background

•Purpose

•Approval Required

•Funding (how many $ in what years)

•Any additional information

•Estimated Presentation Time

Another Last Thing:

A lot of people within the organization are competing for these funds. The person that wins will have the most complete package with the greatest amount of credibility . . . the first time the projects are presented!!

What were the factors that made a difference between

success and failure during the project?

CISCO, ERP Put best people on

team? “Can-do” team

attitude? Well communicated

Top Management Commitment

Middle Management Commitment

High priority in Company

Rapid Implementation Schedule

“Big Bang” Implementation (Vs. phased approach)

Rapid, Iterative Prototyping to Build Knowledge

CISCO, ERP

Initial “No-modification” Strategy

Tight Controls on Proposed Modifications

Strong Vendor Alliances

Select “Hungry” Vendors

Financially Strong Vendors

High-level Vendor Personnel on Steering Committee

CISCO, ERP

Structure of Hardware Contract (capability- based)

“Seasoned”, Experienced Consulting Support

Well Defined Project End Date

OBSTACLES OVERCAME

Poor Testing Strategy Immature Software Undersized Technical Architecture

BUT: Did they really do it for $15 million?