Essay About Erp System And Ciscos It Department

Cisco
Before using the ERP system, Ciscos IT department was running UNIX-based software package to support core operating and transactional proceeds of company. The package was majorly supporting the functional areas: Financial, Manufacturing, and Order Entry. However, the IT system was not satisfy Ciscos needs such reliability, degree of redundancy and maintainability, so that the system was not standardized. Moreover, the scale of IT system was limited to support Ciscos growth, company was able to sustain an annual growth rate of 80% but legacy system was not able to handle such load caused frequent system outages. In January 1994, since the system inability to perform a workaround caused corruption of database which resulted in shut down of company for two days. All the above shortcomings of legacy system make management to groups all the application of company, and decide to implement the ERP system.Peter Solvik’s role as CIO can be summed up as a critical visionary maverick. He has the ability to see potential problems and opportunities and apply unconventional wisdom. In 1999, Solvik’s first year at Cisco, he noticed inefficiencies in the reporting structure of the IT department. He also recognized the deficiencies in the company’s current systems. He was able to address and change the reporting structure to a more customer focused, client funded department reporting through the Senior Vice President of Customer Advocacy. Even though he recognized the current systems inability to scale, he was unable to address it in time. The company’s demands on the system caused it to fail dramatically in 1994. Slovik and his team performed two amazing feats in replacing the system. First, they proposed the largest IT project in the company’s history. Second, they completed the project on time and within budget. The project would cost $15 million and was slated to be completed in an aggressive 9 month timeframe. The successful project completion created the centerpiece for a two-year $100 million series of initiatives to replace every piece of technology in the company.