Cisco Systems Inc Implementing Erp

1863 Words Feb 23rd, 2014 8 Pages
John Morgridge joined Cisco as a CEO in the year 1988. The very first thing he notices in the organization was the lack of professional management team. Initiation for professional management team was the first kick off for the organization. Professional management is considered to be the foundation of any big organization and Cisco started with this thereby sticking with the fundamentals. The professional team clashed with the founders ending up them leaving the company and giving a free hand to Morgridge to handle the organization in a disciplined manner in terms of management. Cisco as an organization started off with a very positive note thereby centralizing the functional areas. Except product marketing and research and development …show more content…
On looking through the resistance to Cisco’s growth Solvik (Cisco’s CIO) really wanted to put something new in place. Going with new ERP system was still in a confused state for Cisco. Slovik’s denial for an ERP system was clearly seen. Instead of that he was very much interested for individual application for all the functional area and thought of given them to decide on this. Cisco's tradition of standardization was always kept in mind and hence Emphasis was given to the use of common architecture and databases. From the case given it was clearly seen that functional areas were responsible for the budgetary decision on IT expenditures while the IT organization directly reports to Solvik. The IT won’t do anything unless they ask for something new. Also Solvik was concerned about the complexity of mega ERP implementation projects. All this were the concerns raised at the early stage and yes was very much required for the company to land up with a safe decision.

All this discussion comes under picture due to the malfunctioning of the legacy system. The company’s was growing with an annual growth rate of 80%. Also the rate for transaction in the company was increased drastically. Legacy systems proved to be a big failure in handling the load. Desperate efforts were taken in order to put the system in place, but it eventually leads to system crash. Finally, January, 1994 Cisco