1. Cisco Systems, Inc.
MBAA 609
R. Nakatsu

2. Enterprise Resource Planning
ERP is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal processes of a company.
Applications: Human Resources, Financials, Supply Chain Management, Manufacturing, CRM

3. Benefits of ERP
Better quality in terms of improving a company’s internal business processes
Better integration of applications
Better decision support in terms of providing vital cross-functional information on business performance
Reduction in support and maintenance costs
Question for discussion: What are some of the problems and limitations of ERP?

4. Background on Cisco
What kind of company is Cisco? What is it most famous for?
What is the context of the case? (Describe the (1) internal and (2) external (i.e., environmental) factors under which Cisco is operating).
What was the initial approach at Cisco for developing IT?
Why ERP?

5. How does the Internet (TCP/IP) work?
Packet-switched network: information is broken into packets by TCP/IP.
Dynamic routing: even if one part of the network is knocked out, packets can be rerouted around the problem. Demo
Highly decentralized: millions of servers reside all over the world; nobody really “owns” the Internet

6. Questions on Case
Question 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?
Question 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?
Question 3: What is rapid iterative prototyping? Briefly describe three things that enabled a quick implementation during rapid iterative prototyping (see pp. 8 – 10 of the case).
Question 4: Did Cisco do anything wrong on this project? If so, what?

7. Implementing Quickly
What is rapid iterative prototyping? CRP0: how did they work quickly in this phase? CRP1: each track works in parallel; how did they manage scope creep? CRP2 AND CRP3: most difficult part of the implementation; utilization of a data warehouse; full commitment by the IT Dept.

8. Change the business process or change the software?
Why was Cisco reluctant to change the ERP software—that is to say, why is it sometimes more desirable to change your business process to “fit” the software?
Is this always the case?

9. Main Takeaways of Cisco Case
Understand the following:
What ERP is and what its benefits and problems are
The “internal” and “external” factors of Cisco that led it to ERP. Why ERP?
Why lower and mid-level managers were reluctant to volunteer to take charge
What the best practices are for developing a big system like ERP
What the purpose of rapid iterative prototyping is
What Cisco might have done differently
Why it is sometimes better to change the business process rather than the software.