CISCO SYSTEMS, Inc.

: Implementing ERP
GROUP NO-10

Businesses should realize when their legacy system has become outdated and when is the
time to go for Big bang reforms.
Businesses should align their IT requirements in accordance to their future growth and
the goal their aim to reach (CISCO aimed to become $5billion Company from $500
million).
Businesses should be open and adaptive to new changes. (Initially CISCO was redundant
to change but later they had to change some things in their system too).
Businesses should be based on Top down model rather than bottom up. ( The initiative for
ERP came from lower level and the senior level was skeptical about it.)
Managers should be able to think beyond his biases and he should be able to identify the
need for change in their current IT solutions in line to the problem being faced by them
(CISCO identified ERP as solution to their crashing server problem).
Managers should be proactive and well aware about the problems before hand rather than
waiting for the failure to occur. (2 day crash led to a large loss)
Managers should have an idea about the expenses and time frame of implementation of a
particular IT solution (estimation of $15mn and time frame of 9 months).
Managers should try to incorporate and hire in the best fit required for a particular
project/ problem solving.(best of the best from each departments were pulled in for the
project)
Managers should take into consideration all the possible alternatives and choose best
option available to them. (CISCO consulted big six accounting firms and Gartner Group)
Managers should keep in mind the scale and complexity of the project and choose the
business partners accordingly.(CISCO chose Oracle as their partners)
Managers should always have the requirements of any project in his mind and he must try
to optimize it to the best of he can. (Management chose 9 months instead of 15 months
for the project)
Leaders should be visionary and they should look at the bigger picture and future scope
rather than looking only for short term.
Leaders should have faith in the vision the team is working for and should constantly
motivate his/her team members.
Leaders should have some risk taking abilities and believe in the capabilities of his team.
(CEO Morgridge said that careers are lost at money much less than this to Solvik but in
spite of this he moved forward.)
Managers should form the team in such a manner that each team has members from all
the concerned functions so that small difficulties are tackled and they do not create a
hindrance. (Executive steering committee had all the members from different domains.)

Managers should be pre-prepared thoroughly before presenting his ideas in front of his
senior members and should be prepared for all type of queries to satisfy them. (They did
not take into account proper financial calculations before presentation.)
Managers should try and implement such type of systems which has the flexibility to
incorporate changes in later stage. (RIP system implemented by the team)
Leaders should try to keep the enthusiasm and fire in people alive by constantly
reminding and motivating them especially when the project span is log. (CRP method
adopted by the team)
Managers should always take the worst case scenario while planning for anything in spite
of taking the ideal conditions. (CISCO tested the system on a one day data but later the
new system crashed when the load increased.)
Managers should always have a contingency plan ready to tackle the difficulties that
come in their course of action.
Managers should know which tasks are of primary importance and are needed to be given
high priority and which all tasks can be delayed without affecting the outcome. (Red
modifications were given high priority than any other modifications.)
Managers should not put undue pressure on the team members in case of failures rather
he should motivate them to brainstorm and find the best solution. ( To find solutions to
Red modifications employees were allowed on a vacation and brainstorm the solution.)
Leaders should not panic if some unexpected problems come rather they should patiently
try to think on the solutions. (At beginning stage there were failures but they worked on it
patiently.)
Leaders should suitably reward his team members on the successful completion of
projects. (A sum of $200000 was to be given to ERP team.)