Cisco Harvard Case Study Solution

 

MBA (EE2) Program ± DubaiInformation Technology ManagementAhmed Elghannam

Company information

Cisco Systems is a leader in the information technology (IT) world. Cisco founded by twoStanford scientists in 1984 / went public in 1990. In 1997 Cisco ranked in the top five companiesin return on assets and revenues. In 1999, over 75% of Internet traffic traveled through one or more of Cisco¶s products. In March, 2000, Cisco overtook Microsoft as most valuable businesson earth (market cap of $531 billion). Cisco Started by producing routers. Then startedchallenging world of three independent proprietary networks Phone networks (voice), Local andwide area networks (data) and broadcast networks (video) Cisco emphasis on maintainingstructure through periods of growth it follows two methodologies. First decentralized model inthe three ³lines of business´ (enterprise, small/ medium business and service provider) which are product marketing and R&D department and centralized model in Manufacturing, Customer support, Finance, Human resources, Information technology, Sales organizations Cisco mainstrategy was 1. Assemble a broad product line so Cisco can serve as one-stop shopping for  business networks. 2. Systematize acquisitions as an efficient business process. 3. Set industrywide software standards for networking. 4. Pick the right strategic partners.

Industry information

Industry has many trends. First

digitization

enables convergence of three networks. Internet actsas ³Global Network´ of networks that allows for transmission of voice, data, video over onenetwork. Internet¶s open standard creates competitive battleground for incumbent telecoms.Second is

 IP-based networks

that has a cost advantage over traditional phone networks IP based Network is highly equipped to address performance & security issues. The whole industry benefits from Silicon Valley location that acts as hotbed for innovation. In the future, companieswill compete to develop

hybrid product 

. Companies also strive to create a product with the speedand efficiency of a router and the precision of a telephone switch. Juniper Networks competedwith Cisco by providing a new generation of router that used by service provider. They floatedtheir IPO with revenue of $100 m in 1999.

De

fining mom

e

nt

Cisco¶s legacy environment failed (January 1994) that lead to corrupted Cisco¶s central DB(Two-day company shutdown). It was a must for them to implement an integrated stable ERPsystem. Cisco manage to get best people by pulling best people out of their jobs into the project.They also choose strong business partner which is KPMG. KPMG brought very experienced people into the project.

eam strategy

was to build as much knowledge as possible (leverage experience of others), ask for help from large corporations and big 6 accounting firms and tap research sources (ie. Gartner)ERP selection Cisco narrowed field to 5 packages in 2 days. They evaluated packages at a high-level, and then chose between Oracle and another major player. Cisco didn¶t want a companysmaller than Cisco.

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Harvard Business Case Analysis
Cisco Systems, Inc.: Implementing ERP
Management Information Systems
2014 SU – 18531 - MGMT 6352

Christine Nada
July 30, 2014

Table of Contents

Executive Summary………………………………………………………………….. 3
Case Synopsis………………………………………………………………………... 4
Strategy Analysis…………………………………………………………………….. 5
Problems in Business Processes and Operations…………………………………….. 6
Firm Based Value Chain Model……………………………………………………... 7
Model Application…………………………………………………………………… 7
Implementation Opportunity Analysis………………………………………………. 9
Implementation Effectiveness……………………………………………………….. 11
Conclusion………………………………………………………………………….... 11
References…………………………………………………………………………… 13…show more content…

They also chose KPMG, a global auditing, tax, and advisory firm, to participate in both the product selection and implementation processes. This original team was created to carefully and strategically choose the vendor whose product would best meet the needs of Cisco’s rapidly growing business.
The next thing that the management did was outline clearly defined goals by setting a timeline and cost for the completion of the project. It was determined in the early stages of the project that the entire system should be switched over in 9 months with a cost at roughly $15 million. The planning of Milestone Implementation Dates (See Appendix) served as a benchmark to ensure that substantial progress was being made (Austin). After selecting the right vendor and setting a deadline for the “big switch”, the management at Cisco was ready to tackle the most difficult part of the project. The implementation phase would prove to be unapologetically challenging. In order for the switch to go smoothly, this piece of the project would have to be well planned and executed by a team of experts (See Appendix). The implementation team consisted of 100 members split into 5 different tracks. Each track consisted of a business lead, an IT lead, a business consultant, and an IT consultant. Representatives from Cisco,

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