Cisco Case Study

Helen Boyle
Information Systems
Andrew Schwarz
133 October 2015
Cisco was highly successful with its enterprise resource planning (ERP) effort. What accounts for this success? What were the most important things that Cisco did correctly?
Cisco was highly successful with its ERP implementation for many reasons. One of the reasons was their attention to detail. They tested every aspect, and modified issues right away so they could test the new process. Another reason for the success was hiring KPMG and made sure to gain as much knowledge as possible from their experienced consulting team. The 1% efforts that gave Cisco 80% accuracy on how the application should be run was a large success because it made sure Cisco did not overanalyze the ERP system and second guess themselves. One of the most important things that Cisco did correctly was giving the their top employees from all over the company responsibility to make sure this system was implemented on time and without a glitch. Hiring the people that had a "no quit" attitude allowed for the company to trust what needed to be done would get done. Another important thing that Cisco did correctly was creating small teams that followed the schedule and worked together towards a common goal.
Did Cisco do anything wrong on this project? If so, what?
Cisco made an error when implementing the ERP system by not testing the system with the full load. It was not fully prepared to take on all of the tasks that Cisco planned for it to do. They should have tested all of the many individual processes at the same time instead of separately. Cisco also did not plan on having to modify the ERP software at all. It is very rare that a company, especially one as big as Cisco, would be able to implement a system and not have to modify it for how their particular company is run.
Cisco went live with ERP in a big bang fashion, which is inherently risky. How did Cisco mitigate this risk?
The big bang fashion Cisco used to go live with ERP was risky, but Cisco had complete control and therefore that lowered the risk. They may have taken a shorter amount of months to go live with the system, but the hours that the entire company put into the successful implementation of the system made up for the lack of days in the schedule. Working as much as 16-hour days allowed for the company to be prepared for every aspect of implementing this process. They also mitigated the risk by keeping the Steering Committee, Oracle, and KPMG involved with every phase. Anytime there was a big issue that would normally set back other companies a few weeks, these three solved the problem within a few days. Cisco also made the implementation of this system a top priority throughout the company. Very seldom did a meeting happen in which the new ERP system was not mentioned. In a sense the company revolved around implementing this strategy, which allowed for it to be executed so quickly.
Was Cisco smart or lucky with its ERP implementation?
Cisco was very smart with their ERP implementation, but they did have a few lucky breaks. One of their smart ideas was using the development techniques, "rapid iterative prototyping." Each of the "Conference Room Pilots" were a large success because they had specific goals that were achieved. They allowed Cisco to catch problems early and build on the work of the previous CRP's so they could have a deeper understanding of the system. They were lucky that their contract with the hardware vendor worked in their favor and allowed for new parts and hardware fixes without driving up the costs. Cisco was also very lucky that everyone working on the project, whether it was a Cisco employee or and Oracle or KPMG employee, was very dedicated and gave 100% effort even when they did not have too.
What one concept from the lecture or the book did you find applicable to this case?
One concept that I found applicable to this case that came from the lecture was governance. In the lecture we learned that a company must break down the walls and have company alignment, which cannot be done without governance. Without governance processes cannot be executed right. Cisco had a strategy for success and they used governance to make sure their strategy was a success. The IT department needed help from all of the business departments, and vice versa. High-level executives in Cisco were involved in most decisions, and worked with the teams to make the implementation a large victory. This allowed for Cisco to be high IT governance performers.