Cisco Essay

Brittany Fontenot

BSAT 518- Management of Information Technology

Case Study #4: Cisco

Submitted: March 26, 2015

1. At the start of the case, Cisco’s information systems are failing, yet no one steps forward to lead the effort to replace them. Why is this? Why were no managers eager to take on this project?

Though there was a clear misalignment between the capability of their IT system and business demand based on growth, no one within the company stepped forward to lead an effort to replace the outdated system. This may have been due to the lack of direction necessary for such a large-scale project, perpetuated by the self-governing management approach that was implemented throughout the company. The CIO originally instructed each business unit to select its own application and to set a time for implementation. This type of decentralized decision-making may have been confusing, as it was unfamiliar at Cisco, which is a company that historically thrived on standardization and centralization. This break from traditional business operations may have stifled the managers’ motivation for fear of failure. As such, no one wanted to be the first to present a new application before the board for approval, who would then in turn invest a large sum of time and money. This may have been too much pressure and seemed too risky, especially since the old system could still be utilized.

2. Cisco was highly successful with its enterprise resource planning (ERP) effort. What accounts for this success? What were the most important things that Cisco did correctly?

One of the primary contributing factors of Cisco’s success with the ERP effort was the creation and implementation of a strong cross-functional task force that was able to facilitate the project according to the systems development life cycle approach. The makeup of the team was essential to the success of the project. They pulled together a team composed of the very best people they could find, which had a suite of skills. They recognized that the team needed to have both IT professionals as well as business professional from all ends of the spectrum. This partnership between IT and the business users ensured that the ERP would formulate a plan that not only worked technically, but could also be implemented in the business setting. Once formed, the team was able to complete the project in a timely and organized fashion. Some other important things that Cisco did correctly were:

• “Big Bang” implementation: Instead of a phased implementation, they performed the switch all at once
• Made it a priority: Top management made the project one of the company’s top 7 goals
• Implemented responsibilities at two levels: Executive Steering Committee and Project Management Office
• Strict scheduling: Formulated a schedule that was doable and defined by business practices, then stuck with it, tracking the progress of the project at executive meetings
• Formulated a “dream team”: Selection of a strong integration partner, KPMG, as well as a software vendor, Oracle, which both had a vested interest in the success of the project
• Standardized package: They did not allow for a great deal of customization to the new system, they wanted a standard package that was ready for implementation

3. Did Cisco do anything wrong on this project? If so, what?

A major problem during the initial cut over to Oracle was with the software’s ability to handle the high transaction volume required in Cisco’s work environment. This problem indicated a lack of fore site in the development and testing of the system. During the initial testing phase, Cisco ran individual processes sequentially, rather than at the same time. They also only used a partial database. Once the system went live and all of the processes were running together, the system failed to operate with the required load.