ERP Implementation at

CISCO
P R E S E N T E D BY G R O U P 6

PRITI BANSAL (C007)

ROHAN JAIN (C022)
R ID D H I KU N D U ( C 0 2 6 )
A B H I N AV M I S H R A ( C 0 2 9 )
M AY U R P U R O H I T ( C 0 4 0 )
N I S H A N T VAT S ( C 0 5 6 )
 Enterprise Resource
Planning
Suite of integrated
applications Inventor
y

Marketin
Real time view of core g and Purchase
business process Sales

ER
Consistent look and feel
across applications P
Manufacturi
Treasury ng

Common database to
support all applications
HR
 ERP Statistics
in billion $
ERP Industry Size
80
70.89
70
60
50
40
30
20
10
0

ERP Industry Overview

ERP Industry reached $47.5
billion in 2011 with 7.9% CAGR
1 out of every 10 software
dollars is spent on ERP
Average Cost of ERP $6.5 million
9% of ERP projects perform no
customization
ERP Vendor
Top 5 ERP vendors control 55%
market share
Panaroma Survey: 45% businesses
satisfied with their vendors
 ERP Statistics

Reasons for Type of ERP

Implementing ERP
Improve Business Performance
Better Integrate systems
across multiple locations
Better Serve customers
On Premise is leading the
deck
Cloud Computing will
remould the ERP industry
business from 2012-2017
 Vendors based on Size of Firms

Large Enterprises Medium Small Enterprises

Dominated by SAP, Enterprises Vendors include
Microsoft, Oracle Vendors include Exact Globe, Syspro,
Infor, Sage, QAD, NetSuite, Visibility,
Lawson, Epicor, IFS Consona, CDC
Software and
Activant Solutions
 CISCO (Introduction)

Worlds largest maker of computer networking

gear

Products for transporting data, voice and

video
Network industry Integration of
rapidly evolving products, services
& software
FOCUS ON
platforms
1984 Founded by two Stanford Computer
Scientists in California to capitalize on expanding
internetworking market

1990 Became Public

1993 First acquisition : Crescendo Communication

1997 Featured in list of Fortune 500 Companies

1998 Market Capitalization crossed $100 Bln Mark

1999 Internet Traffic Share > 75%

Product Portfolio Categories Switching,

Routing, Service Provider Video,
Collaboration, Security, Wireless, Data
Center & Services
 IT The driver of every
business

Role of IT at CISCO

As an enabler of business through e-commerce, supply chain management,

customer relationship management and employee self-service applications
in Ciscos business strategy of providing innovative business solutions,
achieving operational effectiveness, maintaining low cost and staying
competitive.

IT systems and networks enable rapid transmission of data between

contract manufacturers, customers, employees, and business partners such
as acquired companies.
 LEGACY IT SYSTEM

EXISTING BUSINESS FOR DAILY OPERATIONS

 Legacy
System
system

What did the

outages
too rigid

management
Intense
Competiti
Time
Pressure !!
on
do ??? !
 Need for ERP

Unix based s/w package for

Jan 1993, The Final Stew 1994
transaction processing
Valuation: US Financial, Manufacturing & Order Outage
$ 500 million Entry systems Independent units backfired due to lack of
coordination and consistency

Routine outages, incremental

modifications & product shortcoming

Key Redundancy, Reliability and

Challenges: Maintainability & Customization
US $5 Billion System failure resulting into a
company shutdown for two
days

Allow each functional unit to

Initial make their own decisions
Approach: No Consistent with CISCOs strong
ERP !! tradition of standardization and
budget structures Upgrade or Purchase?
Big Bang implementation
strategy
 ERP Implementation

Why ORACLE?
Better manufacturing
capability
Process Long term association
Extensive research : 5 promise
vendors Flexibility
Team 10 days for RFP draft Brand, Reputation and
CISCO employees 3 day Onsite demos Size
KPMG Consultants
ERP Software Vendor
(ORACLE)
Key Areas :Order Entry,
Finance, Sales/Reporting &
Technology

Timeline:
Projected
9 Months Cost: US $
15 million
 ERP Deployment/Rollout

CRP0
Technical training on Oracle application Configuration & setup of the ERP packages

Ensuring system CRP1

Detailed documentation & Red, Yellow , Green
consistency with functional
modelling modification classification
units

CRP2
Include major modifications and technical Integrated data conversion, Data
issues warehouse acted as a bridge

CRP3
Integrations and full system testing, front to back with full
Go Live
transactional load
 ERP Implementation at CISCO

Implementation Costs LESSONS LEARNT

Importance of defining strong governance and

metric management for program health, overall
readiness, and solution stability
Headcount; 14%
System Integration; 38%
Inclusion of multiple end-to-end test cycles with
Hardware; 32% increasingly strict exit criteria ensured the
Software; 16% appropriate level of go-live quality

Focused on business and system readiness

Software configuration best practices management

Total Implementation Cost = $15million
 ERP Implementation at CISCO

BENEFITS RESULTS

Enterprise Class Platform Disaster Recovery

The technical support solutions Redundancy is built in at many
provide a single platform for levels for prevention of loss of data
product and service teams,
optimizing cross-functional
Supportability
efficiencies and
and information
sharing Stable Platform for Users
Reliability
Standard software replaces highly Chance of disruptions to users has
customized software, providing a been greatly minimized
more stable foundation for future
Users can do their jobs with tools
growth and enhancements, and
introduces secure access that provide stability and
capabilities productivity.
 Flexib
le

Produ IT
ct archit
config ectur
urator
Siebel e
Functi
People CRM onal
Soft Stren
JD Financ gths
Edwards e and
accoun E-
ting portal
functio
nality
Invent
ory
Contr
Weakness ol
Harder to enforce
standardized
processes across a
larger
Implementation organization
Duration
 SAP SAP
NetWeaver Business All- Business
in-One One

Multip
le
Curren
cy
Featur Qualit
es y
Contro
Global
Integra
l and Weakness
Qualit
tion
y
Functi Assur Contract
onal
ance signature till
Streng Expensive expiry
ths Visibili
ty to Longer
Versat goods Implementation
ile -in- Processes
transit
Make- orders
To-
Order
proces
sing
 V
s
Best of breed functionality vs. more tightly
integrated modules.

Product roadmap

Flexibility

Business benefits and satisfaction

Implementation cost, duration, and risk

 Future Scope

Business Needs
System Needs
-- Acquisition of new
businesses Environment Needs
-- Expanding business in -- New Versions
new geographies -- System performance
-- Economic considerations
-- Simplified system -- Data quality
processes -- Business obligations
-- Bottleneck on System
capabilities
-- Disparate systems
-- Technology obsolescence
 Top ERP Trends in Future
Cloud ERP Open Source ERP

SaaS
The hardware is shared by
many customers and the
Costs
model is sold on rental or Free Licensing but customization
subscription basis
costs
Flexibility
Hosted ERP
Hardware is dedicated to a Low Flexibility, less customizable
customer
Security
Hybrid ERP
ERP Solution maintains on- Vulnerable security, not god
premise software with cloud enough for large businesses
services
 Top ERP Trends in Future

Mobile ERP Social ERP Analytics

Financial Decision-
Boost the collaboration Ready Analytics
MOBILITY AND
among business peers
INSTANT Human Resource
ACCESS Analytics
Capture in real time the
OFFLINE
GOAL Information Stream
from the Business Big Data Analytics
AVAILABLITY S
AND
Processes
SYNCHRONIZA
BLE
Get the best
MOBILE
information
HARDWARE
INTEGRATION
 Insights and Conclusion

Technolog Top Vendors need

y Lighter to relook at their
Advances Apps pricing models

Multi hardware,
Multi Database
supporting ERP

Newer
Business Security and
Models Privacy on ERP
Systems
THANK YOU