Case Analysis “Cisco Systems”Implementing Erp”
Pete Solvik made a very good decision to upgrade the existing information system by implementing ERP when the company encountered a major shutdown for two days. One reason the project became successful was because of internal recruiting. The team consisted of the best business people. The company just did not rely on IT department, instead IT and business people worked together to meet the core objectives. The estimated costs and time to complete to the project matched closely with the initial estimation which is a key attribute of a project. Another competitive advantage Cisco had was the purchase of an unusual contract.
Both Oracle and other hardware vendors agreed to contracts for long-term functionality of the software and hardware. Because of the promised capability, the vendors bared the costs of fixing the equipment. This action resulted in a decrease in total project expenditure. Cisco went through many issues during their implementation of ERP through three phases of CRP; which is not inherently unusual when a company goes through the testing phase. However, the company encountered major challenges when the new system lacked the capacity to process the required load and make modifications.
Being a Fortune 500 company, Cisco faces high level of competition.