Cisco Systems Architecture:

ERP and Web Enabled IT

____________________________
Group 3
Aadil Katyal - 03 || Ankit Gupta - 29 || Chetan Metkar - 55 || Himadri Singh - 73
Agenda
Companys History & Growth
Strategy
Building IT infrastructure
Selection of ERP Product
Internet and Intranet Applications and
Benefits
Supply Chain Management Initiatives
Integrating Acquisitions into the IP-based IT
architecture
Conclusion


Mission & Vision
Vision
Change the way world works, lives, plays
and learns.

Mission
To shape the future of the Internet by
creating unprecedented value and
opportunity for its customers, employees,
investors and ecosystem partners.

History
Cisco was founded in 1984 by Leonard Bosack
and Sandra Lerner
Principal product from inception was the
internetworking router.
First product shipped in 1986
In 1997,Cisco ranked in the top five companies
in return on revenues and return on assets in
FORTUNE 500
Don Valentine, first major investor
Secured investment by demanding a
controlling interest in company
Promptly hired John Morgridge as CEO
Growth
1990s companies began installing local area
networks (LANs)

Tremendous growth opportunities

John Chambers took over in 1995

Adopted strategy of Systematic Acquisitions
and Strategic Alliances

As of April 2008 Cisco had acquired 127
companies 50% of the company

Growth
The largest acquisition as of April 2008 was
Scientific Atlanta

Arguably the most important Acquisition was
StrataCom, Inc.

$4.67 billion acquisition completed in April
1996

Leading supplier of products capable of
handling voice, data and video
Growth
Strategy
Guided by Market Transition
1990-1997
End-End and IP based
networks
1997-2000
All-in-one
(Voice/Video)
2000-2006
Network of
Networks
2006-2008
Network as
Platform
2008-Current
Collaboration
Web 2.0
Borderless
networks
Mobile IP
Business Strategy
Provide Networks and Communication Solutions

Strategic Objectives
Lead Cisco entry into key market
Invest in strategic technologies and partners
Partner with business units a strategic advisor
Talent Management

Business plan
Assemble a broad product line so Cisco can serve as one-
stop shopping for business networks.
Systematize acquisitions standards for networking
it make more than 70 acquisitions and key strategies to fill out its
product line
Set industry wide software standards for networking.
It issued IOS(Internetwork Operating system) licenses to
Ericson, Compaq, HP, Microsoft, Intel and 12 Japanese
companies
Pick the right strategic partners
Worked with Microsoft to create industry standard for security
over network
Worked with MIC to deliver premium Internet services
Worked with HP to develop and sell Internet-based corporate
computing systems



Goal & Culture
Goal
Become lead architect and provider for new
Internet-based infrastructure
Change the way companies and industries
operate
Culture



Sustainability Stretch Goals/
Continuous Improvement
Quality team Trust/Integrity/Giving
Back
No technology religion Drive change
Teamwork Fun
Thank You!
Current Application Assessment
Poorly implemented original software platform.

Unix-based software package to support Financial,
manufacturing & Order Entry.

Care System

Metrix System

Calico foundation technology


Current Application Assessment
Initial approach to
Upgrading

Functional area
responsibility

Band-Aiding

January 1994 system
crashed
ERP Solution

Robust

Reliable

Efficient
Connectivity Needed?
Connectivity & Mobility
What is needed
Standardization
Flexibility
Extensibility

What are the options
Custom Integrated Systems Architecture
ERP
Connectivity
Integrated Architecture
Separate lines of development - EAI
Systems Integration Plan
Low-level Connectivity
IT Infrastructure
Advantages
Custom solution
Potentially highly efficient
Disadvantages
Building a patchwork architecture
Middleware


Connectivity
ERP
Systems Integration Plan
Advantages
All-in-one solution
IT infrastructure and connectivity baked in
Less middleware
Disadvantages
Limited customization
Difficult (and expensive) to extend


Connectivity
Keys to Success

Open standards

Proper planning and involvement

Scalability testing



Business Process
Integrated systems and real-time environment
Infrastructure Challenges
Traditional IT department did not operate optimally
Inflexible current systems couldnt support Ciscos growth
Solution
IT reporting relationship changed from Accounting to Senior VP of
Customer Advocacy
Conduct IT budgets at functional level (better funding for all IT projects)
Disbanded central IT steering committee
IT investment decisions on application projects pushed to line
organizations but executed by central IT


Business Process
Business Process
Convincing Management and many engineers Change Management
End-to end and big bank approach - a great risk
Need to access the impact of the change and manage user expectations
Solution
Internal Involvement
Heavy involvement from the business community Not just IT initiative.
Get very best people and who know the business.
External Involvement
Strong partner to help the selection and implementation KPMG
Get knowledge and experiences from other Big Six firms Team training
Business Process
Analysis and Process Design
External Partners KPMG
Best people who knows the business
Oracle ERP training
System Integration
Set the parameters for
Oracle to be integrated
Focus on getting the
application up and running
Pilot & Testing
Conference Room Pilot
Review & enhance
Unable to handle the
load
3 months to enhance
and stabilize the system
Milestones for the Project
Process
Oracle ERP
Manufacturing capability
Long-term development of functionality of package
Flexibility of Oracles being close by (location wise)
15 million budget and 9 month to implement



Oracle ERP
Analysis & Recommendations
No proper Business case or Cost Analysis
Downtime not considered
ERP Implementation time frame of 9 months?
Big bang approach of critical systems
1% effort gave 80% accuracy
Impact of pulling key resources from the projects?
Oracle first implementation of the new product?
Thank You!
IT at CISCO
Cisco was a $500 million company using a UNIX-
based software package for its core transaction
processes.
This software package was suitable for companies
with $50 million to $250 million revenue and not
$500 million.
Finance, manufacturing and order entry were
supported by this software package.
CIO knew the companys growth prospects were
very good. So thought the software package wasnt
enough.

Problems with the legacy systems
Companys annual growth rate was 80%.
Transaction rate had increased drastically.
The legacy systems did not have the capacity to
handle the load.
Any attempt to improve the applications would crash
the system.
IT department would spend its time repairing the
legacy systems.
One day, it was corrupted and thus shut down for 2
days.

You know, careers
are lost over much
less money than
this.
Applications and Benefits
Internet & Extranet
Began development in early 90s
Shifted from Mosaic to Netscape
browser
3 year investment
$115 million
$100M for web enablement
$15M for ERP
Cisco connection online
Ciscos global intranet
Intranet Applications
EIS & DSS
Executive & decision
support, sales tracking &
reporting went through the
intranet
Employee self service
Cisco Employee Connection
(CEC)
Resources for 40k+
employees
Web browser interface

Contd.
Collaboration &
workflow management
Web-enabled legacy
systems
Communication and
Distance learning
Distance Learning
modules
Cisco-tailored version of
My Yahoo
Live streaming of
quaterly meetings

Internet Applications
Customer self service
through website
80+% tech support delivered
electronically
Saved $506M annually
Translated into 17 languages
70% employees have a
bonus multiplier that are
attached to customer
satisfaction surveys
Marketing through web

Any place access through
the web
Net commerce through web
92% of the revenue base
90% software upgrades via
internet
Productivity gains of 60%
for Cisco & 20% for
customers

Thank You!
Ciscos Supply chain management initiative
A central part of Ciscos policy was removal of barriers that would
impede the flow of information within the company and its
business partners
- Outsourced much of their manufacturing to contract
manufacturers while only performing final assembly & testing

- Recently, realised that their core competencies are in design
and fulfilment processes rather than physical transformation of
product.

- Formed partnerships with suppliers that performed physical
transformations as their core competency
5 Initiatives to automate
Single enterprise They used networked applications to integrate
suppliers into its production system creating a single enterprise
New product introduction It automated the process for gathering
data information, thereby reducing NPI time and cost by $49 million
Auto test They build test cells to perform tests automatically with
minimal labor and standardized product test. It allowed quality
issues detected at source
Direct Fulfillment Originally 2 shipping legs of 3 days each. Now
60 % of orders are filled by its partners
Dynamic replenishment Before automation, Cisco and partners
lacked real time information sharing resulting in delays and errors. It
allowed the market demand signal to flow directly to contract
manufacturers.
Results
Cisco turned into one of the most efficient supply
chain models.
Improved profitability by $275 million
Network-enabled applications were key to value
maximization and that is why it was referred to as
Global Networked Business Model
Integrating Acquisitions into IP-based
IT Architecture
2/3 technology internally developed
1/3 from partnerships/ acquisitions
70% CEOs from acquired companies were retained at Cisco
Acquired companies for their R&D
Acquisitions integrated in 60-100 days

KPMG acquisition
Purchased ~20% KPMGs global consulting arm
1.05 Billion
KPMG was part of the decision process with Oracle so it was only natural
for the acquisition.


Conclusion
- It was clear that Ciscos ERP implementation and use of
web enabled IT architecture was successful








Business is open 24*7
Improved Customer
Service
Reach new markets with
global audience

Automation, Productivity
and Profitability
Customer Feedback
Improved Advertising
Advantages
The opportunity for Cisco to continue growing as a
company is highly linked with the adoption of internet based
infra by other companies. They believe that they can continue
to pioneer in the development and use of internet, and
provide leadership to most traditional companies. These
companies will find the same benefits that Cisco has enjoyed

CEO Speaks
Thank You