Cisco Systems, Inc.: Implementing Erp

For each of the independent functions of the company, it is hard for the director to stand up and announce manufacturing/finance/sales/technology now has to start a new information systems replacement project. On one hand, there is a high cost associated with new systems it, including both software and hardware equipment. On the other hand, it takes a long time to plan and the implement the replacement project, other than the members form its own department, the project will need plenty of IT support. Also, much efforts must be made in order to train end users to get used to the new systems, during the period of training and system trial, the daily works could be seriously delay and mistakes could be made more than usual. Most importantly, there is no guarantee that the new systems could work well, and certain risk must be taken by the department manager. Due to the large input, including money, time and human resources, the cost of failure is considerably high. As a result, all of above reasons make managers not willing to take the initiative in making systems replacement project. As long as the legacies are still working, even with routine system outages, none of the managers will take the risk to make such a big change.

There are several things that Cisco did correct for the project. First, they performed detailed research for selecting the ERP product. After getting KPMG involved with the consulting services, they sent out request for proposals (RFP) to see which vendor could provide products that fit their needs best. They selected Oracle for the following reasons based on carefully considerations: the company size, relatively strong manufacturing industry experience, better long term development of functionality package offering and the location advantage. Also, Oracle showed great ambition for making the project successful so that they can have an major example to launch new business opportunities.

Second, they knew that one of the most important factors...