Cisco Case Digest
Submitted by: Submitted by Rolro
Views: 496
Words: 1417
Pages: 6
Category: Business and Industry
Date Submitted: 01/29/2011 01:42 PM
Individual
Case
Assignment:
Cisco
Systems,
Inc:
Implementing
ERP
Systems
are
failing,
no
one
take
an
action?!
Cisco’s
legacy
environment
failed
to
support
its
substantial
growth.
However,
managers
just
kept
band-‐aiding
the
existing
systems.
Until
the
systems
failed
dramatically
in
January
of
1994,
they
started
to
seriously
bring
up
this
issue
on
table.
Why
take
so
long?
• Status-‐Quo
Trap
in
Management
Decision
According
to
organization
behavior
research,
“In
business,
where
sins
of
commission
(doing
something)
tend
to
be
punished
much
more
severely
than
sins
of
omis-‐
sion
(doing
nothing),
the
status
quo
holds
a
particularly
strong
attraction.”
For
a
risky
ERP
project,
whoever
propose
it
will
need
to
take
the
huge
risk.
If
the
project
fails,
most
likely,
this
person
will
have
to
end
his/her
career
in
the
company.
• Huge
Risk
&
Big
Investment—Too
Much
To
Justify
Bring
in
a
new
ERP
system,
nobody
can
guarantee
its
success.
For
such
a
risky
project,
company
needs
to
invest
tremendously—both
in
capital
resource
and
human
resource
to
implement
the
plan.
Whoever
proposes
it
will
need
to
justify
the
ROI
to
upper
level
management
and
the
board.
Considering
the
challenges
of
going
through
all
the...
