Cisco Systems Architecture: ERP and Web-enabled IT

Case Analysis

Set the Stage• Cisco is frequently cited as an information

Age company in contrast to an Industrial Age company.

• What are the key factors that differentiate Cisco as an Information Age company? Who Cisco is? What are their competency?

• How would you characterize the role of Pete Solvik as CIO?

ERP Implementation• How was the decision made to implement

ERP?• Evaluate the analysis made to recommend

ERP to the Board, and the quality of the justification.

• What were the key factors that enabled the team to implement ERP in 9 months at Cisco?

• To what extent can Cisco experience in ERP implementation be applied to other companies?

I-Net Applications and Benefits

• How did Cisco build out their I-Net at Cisco to electronically connect with the customer? Identify the benefits that were enabled by this initiative.

• Identify the main benefits of the strategic I-Net at Cisco, and estimate the range and type of benefits you think that they achieved.

Reduction in Operating Costs (FY 2000)

• Single enterprise $170m

• New Product Introduction $402

• Autotest $108

• Direct Fulfillment $15 m

• CCO Commerce $65 m

• Total $760m

Financial Impact of Internet Business Solutions (FY ’00)

• Supply Chain Management ($695 m)– Cost ($307 m); Income– Income: Faster time to market ($388m)

• Customer Care ($506m)

• Workforce Optimization ($86m)

• Total Financial Impact ($1,352m)

New Challenges Beyond 2000

• What new challenges does Cisco have to address? Identify these challenges in terms of technology, economy, and market competition.

• How would Cisco’s past success affect its future?

• What should the CIO recommend?