SAP-LAP
Situation:
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Cisco Systems faced challenges with their existing UNIX-based software package.
Frequent outages and an 80% annual growth rate added pressure to find a solution.
Initially, CIO Pete Solvik hesitated to implement an ERP system.
However, due to system failures and growth projections, an ERP solution was
considered.
The ERP team evaluated multiple software packages and selected Oracle for its
manufacturing capabilities and potential for success.
The project was estimated to take 15 months but aimed to go live in 9 months.
The project budget was estimated at $15 million, which raised concerns with the board
initially.
The proposal was approved, and a phased implementation approach with Conference
Room Pilots (CRPs) was adopted.
Technical difficulties and system instability were encountered during the cutover to
Oracle.
Collaborative efforts and vendor commitment resolved the issues.
The ERP implementation ultimately succeeded in supporting company growth and
improving business performance.
Actors:
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Pete Solvik: He was Cisco Systems' Chief Information Officer (CIO) and played a vital
role in choosing and putting the ERP solution in place.
ERP Team: Pete Solvik put together this team to pick the right software (Oracle) and
make sure the ERP system worked well.
Don Valentine: He's from Sequoia Capital and helped invest in Cisco, bringing in
experienced management under John Morgridge.
John Morgridge: The former CEO of Cisco who organized the company's management
structure.
Randy Pond: He's from Cisco's manufacturing team and co-led the ERP project.
Elizabeth Fee: She was brought into the ERP team for her expertise.
Process:
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Identifying the need for ERP implementation
Assembling the ERP team
Selecting the ERP software
Estimating project requirements
Presenting the proposal to the board
Implementing oracle
Facing difficulties
Stabilizing and improving performance
Successful ERP implementation
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Continued monitoring and improvement of the the system
Learning:
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Recognizing the need for change
Choosing the right software
Agile implementation approach
Addressing technical challenges
Teamwork
Proper testing and scalability
Continuous improvement
Suggested Action:
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Pre-implementation analysis
Phased implementation of the plan
Vendor collaboration
Involvement of experienced personnel
Rigorous evaluation of software packages
Regular updates and maintenance of the software
Board approval
Investment in integration partners
User involvement and feedback
Risk mitigation strategies
Possible Outcome:
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Enhanced system stability is anticipated as a result, reducing instances of downtime and
disruptions to business operations.
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Given Cisco's remarkable 80% annual growth rate, a successful ERP implementation is
likely to furnish a scalable solution to accommodate the company's expanding
requirements.
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The overall business performance is expected to see improvements following the
successful implementation of the ERP system.
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Although the cutover to Oracle initially encountered technical difficulties and system
instability, these issues were eventually resolved through collaborative efforts and the
commitment of the vendor.
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The ERP implementation should ensure data integrity and accessibility, enabling
employees to retrieve accurate and current information for making well-informed
decisions.