Cisco Systems Architecture:

ERP and Web Enabled

IT
Agenda
About Company
Strategy
Current Application assessment
Connectivity & Mobility
Business Process
Web presence
Customer Relationship Management
Conclusion
  Cisco was founded in 1984 by
Leonard Bosack and Sandra
Lerner

 Principal product from inception

About was the internet working router.

Company  First product shipped in 1986

 Don Valentine, first major investor

 Secured investment by demanding a
controlling interest in company
 Promptly hired John Morgridge as
CEO
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 Strategy

Business plan
Assemble a broad product line so Cisco can
serve as one-stop shopping for business
networks.
Systematize acquisitions standards for
networking.
Set industry wide software standards for
networking.
Pick the right strategic partners.
Current Application Assessment
Poorly implemented original software
platform.

Unix-based software package to support

Financial, manufacturing & Order Entry
separately
Separate decision making by all three-
financial, manufacturing & order entry
Cisco’s IT department was too traditional
Current Application Assessment

 Initial approach to ERP Solution

Upgrading

◦ Functional area ◦ Robust

responsibility-
1. Established
proper IT structure ◦ Reliable
2. IT budget
allocation
◦ Efficient
pertaining to a
function returned
to the function

Connectivity Needed?
◦ January 1994 system
crashed
Connectivity & Mobility
What is needed
◦ Standardization
◦ Flexibility
◦ Extensibility

What are the options

1. Custom Integrated Systems
Architecture
2. ERP
 Connectivity
Integrated Architecture- covers business, information, IT &
technology infrastructure

◦ Separate lines of development – EAI- Enterprise Application

Integration- enable data integration using software & computer system within an organisation
Systems Integration Plan
Low-level Connectivity
IT Infrastructure- integration of multiple IT components
◦ Advantages
Custom solution
Potentially highly efficient
◦ Disadvantages
Building a patchwork architecture
Middleware(Integration middleware represents software systems that offer runtime services for
communications, integration application execution, monitoring and operations)
Connectivity
Integrated Architecture
◦ Separate lines of development – SOA or service
oriented architecture- which deals with linking enterprise applications so they can
communicate with one another (by means of an intelligent reasoning engine) and carry out
“batch” data transfers
Systems Integration Plan
Low-level Connectivity
IT Infrastructure
◦ Advantages
Custom solution
Potentially highly efficient
Less middleware
◦ Disadvantages
Building a patchwork architecture
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 couldn‟t support Cisco‟sgrowth

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” fir ms.
Team training
Business Process
Analysis and Process Design
• External Partners – KPMG
• Best people who knows the business
• Oracle –ERP training

Review & enhance
•Unable to handle the load
•3 months to enhance and
stabilize the system
System Integration
•Set the parameters for
Oracle to be integrated
•Focus on getting the
application up and running

Pilot & Testing

• Conference Room Pilot
Process
Oracle ERP
◦ Manufacturing capability
◦ Long-term development of functionality of package
◦ Flexibility of Oracle‟s being close by (locationwise)
15 million budget and 9 month to implement
Oracle ERP
Analysis
Standardization promoted flexibility
◦ R&D and marketing reorganized from multiple business units to 3
lines of business
◦ Changes completed in less than 60 days for less than $1M
◦ Completion of IP-based open standards architecture initiative
provided centerpiece of Cisco IT architecture
◦ Next phase of strategy - incorporating the “Internet”
Web Presence
Internet Strategy
◦ To create a business ecology
◦ To coordinate a virtual organization
Concentrate on product innovation
Outsource other functions
◦ To showcase its own use of the internet
as a marketing tool
Web Presence
Benefits
◦ 24*7
◦ Improved customer service
◦ Reach new markets
◦ Automation, Productivity and Profitability
◦ Customer feedback
◦ Improved advertising
Web Presence
Cisco‟s web-based applications
Intranet
Employee self-service for
travel, benefits, product
information
Communication and distance
learning
Collaboration and workflow
management
Executive information
systems and decision support
systems
Extranet
Supply chain integration,
sharing of forecast, order and
inventory information
New product development
sharing of design, test ramp-
up, quality specification
information
Internet
marketplace for net
commerce
by customers,
resellers, partners
Technical Assistance,
software
Library and Open Forum
for customers, resellers,
partners
Customer service for non-
technical issues
Internetworking Product
Center online ordering by
authorized customers and
resellers
Collapse of 2001
Reasons
◦ Collapse of many internet companies.
◦ Decline in demand for IT equipment
Analysis
◦ took time to pick up the market
changes.
◦ Inability of sales forecasting system
to offer any advanced warnings.
Customer Relationship
Management

CRM is a business strategy directed to

understand, anticipate and respond
to the needs of an enterprise's current
and potential customers in order to grow
the relationship value
CRM – Key Problems
Acquire

• Competition
• Targeting smaller customers
• Cost effective solutions
• Compatibility issues
CRM – Key Problems
Retain

• Antiquated solutions
• Delays in integration
• Accelerated innovation lacking
CRM – Key Problems
Extend

• Innovation
• Moving beyond legacy solutions
• Adaptability
Conclusion

 ERP and web enabled applications ledto

+$550 million in savings

 $2.5 billions write off in parts inventory in its

warehouse
References
http://www.technewsworld.com/story/35961.html
Cisco Systems company SEC filings 1995-2011
www.cisco.com
http://www.forbes.com/sites/panosmourdoukoutas/2011/09/13/two-
strategy-lessons-for-cisco-systems/
http://newsroom.cisco.com/dlls/2009/ekits/PublicCorporateOverview_Bl
ackBackground_Eng_2010Q1.pdf
http://airccj.org/CSCP/vol1/csit1235.pdf
http://gsbapps.stanford.edu/cases/documents/EC%2015.pdf
http://www.personal.psu.edu/users/b/j/bjb261/ist110_bjb/In%201994-
2.html
http://www.cisco.com/web/about/ciscoitatwork/business_of_it/erp_manu
facturing_and_finance.html
http://hbswk.hbs.edu/archive/3141.html
http://www.ciol.com/Networking/Feature/HP-3Com-merger-marks-end-
of-Cisco-dominance/121109127626/0/
http://www.huffingtonpost.com/2011/04/06/ciscos-ceo-vows-bold-
changes_n_845623.html
http://marketingteacher.com/lesson-store/lesson-crm-business-
strategy.html
Thank You!