Question 1 : What was the model for IT Management in Cisco prior to January, 1994?

What were the weaknesses of that model?

Cisco was running a centralized UNIX-based software package to support its core transaction processing. Package included financial, manufacturing and order entry systems. The package was implemented using common architecture and database for each of the modules. Weakness of the model: Redundancy, lack of reliability and maintainability required Multiple customization has made the package complex and slow Not possible to make changes to the application to meet the changing business needs Was ideal only for organizations with turnover of around $300 million

Question 2 : Why did Pete Solvik initially want to avoid an ERP solution? What was done to address concerns of Solvik and Redfield regarding ERP projects?
Solvik initially wanted to avoid an ERP solution because: He planned to let each functional make its own decision regarding the application and timing of the move He was concerned about the types of mega-projects ERP implementations often became He strongly felt that budgetary decisions be made by each functional areas To address these concerns Cisco took following decisions: They would implement ERP in one go rather than in a phased manner Not to allow a lot of customization, instead retrain the people to do things the way ERP system intended them Create a schedule that was doable and make it a priority in the company

Question 3 : Why do many general / functional managers resist Information Systems such as ERP? Why wasn't anyone willing to lead the ERP project?
Implementing ERP solutions would engage huge amount of resources and costs and time. project like ERP might spin out of control and deliver sub standard results Risky approach; implementing ERP would mean institutionalizing a business model for the organization. All the other business processes(eg: accessing database) would be dependent on ERP(centralized). If the system crashes accidentally, the overall efficiency would be negatively affected. Anyone wasnt willing to volunteer to lead the ERP project because: Risky: a single person would be responsible for any discrepancies occurring upon the implementation of ERP high probability of losing the job. Implementing ERP is a complex, time consuming and difficult process; requires a skilled team to operate rather than an individual person. Any difficulties emerging out while dealing with the project would require skilled personnel with a pool of different expertise and prior experiences to handle them responsibility to be shared among the team members and not on individual level. More energy, time and resources(on individual basis) would be spent. It is also tough and stressful. Failure in the project would lead to losing the job as well as wastage of these.

Q4. What are the advantages and disadvantages of 'big-bang' ERP implementation approach?

Advantages
Lesser time required for implementation Clarity of changeover date to everyone Comparatively less costlier drawn out implementation. than

Disadvantages
Details may be overlooked in the rush to change Lesser time for employees to learn new system long Full testing is difficult to be done prior to implementation

Relatively lesser implementation difficulties A failure in one part of the system could and pains affect others Training is needed only on new system and Users struggle in initial period not changeover period. implementation hence causes dip organizational performance No special interfaces needed to be able to No time for addition of extra features get used to the new system of in

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Q5. Was Cisco smart or lucky with the ERP implementation project? Why was there a performance dip after cutting over to ERP system?
Cisco was smart with the ERP implementation project due to the following reasons Cisco deployed a very strong and able team for this project consisting of the best people from each business area. The initial planning and study of project scope, vendors, partners etc was meticulous. Cisco team along with KPMG, diligently followed a structured process in the selection of the ERP product which suited their requirements (manufacturing oriented) Diligent vendor/consultant selection The vendor selection was done in a structured manner. Also, hardware was purchased on promised capability rather than specific configuration due to which the onus of fixing the errors was on the vendor. Cisco also made ERP implementation the top priority across the organization and it was projected as an opportunity for career advancement of the employees, hence motivating them. The implementation team was headed by the high level executives from Cisco, Oracle and KPMG. This sent out a signaling effect regarding the seriousness of the project

There was a performance dip after cutting over to the ERP system because of the following factors Database lacked capacity to process the required transaction load/volume within the Cisco environment. The faulty design of application exacerbated hardware problems, by inefficiently processing common tasks The hardware architecture and sizing was insufficient to handle such large volumes