Cisco Systems, Inc. Implementing ERP

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Cisco Systems, Inc. Implementing ERP

• ALSO, INITIATION OF PROJECTS, etc.

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FROM LAST WEEK

• In a commercially disruptive technology, you are
  better off to find a market that will accept your
  product "as is" than you are to create a market
  to accept your product.
• Customer input can be very misleading in emerging
  markets.

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FROM LAST WEEK

• Don't ever, even come close to thinking about
  assuming anything (its among the dumbest things
  you will ever do in your life!!).
• Avoid allowing your performance (or the
  performance of your product) to be based on
  things outside of your control.

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FROM LAST WEEK

• If you rely on the success of underlying (or
  other people), your probability of success is
  based on the product of their probabilities i.e.
  if 1
  0.8, 2 0.75, 3 0.65 and 4 0.85, the
  probability of your success is 0.8 x 0.75 x 0.65
  x 0.85 0.33 !! Not so good!!

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FROM LAST WEEK

• If/when a new technology actually does foster the
  development of a new market, an incubation period
  often exists through which potential customers
  need to work in order to understand how they
  might incorporate this new technology into their
  product base.

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Project Initiation

• Absolutely believe in the importance of your
  project

• Do all of the groundwork yourself, i.e. do not
  rely on purchasing to find sources for whatever
  it is that you want.

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Prepare an Information Checklist

• This checklist is to be certain you have all of
  the bases covered, such as
• Cost
• Justification
• Is a disposal required

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Prepare an Information Checklist

• Are there any ongoing costs associated with the
  project such as a maintenance contract, manpower,
  supplies, etc.

• If a replacement, why (age, obsolete process,
  etc.)

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ASSET DISPOSAL REQUEST
If this project is for a piece of equipment etc.
that replaces something, prepare the asset
disposal request accordingly.
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Hip-Pocket Information for those not as smart as
you!

• Hard as it is to believe, some workers report to
  bosses that are not that bright in the area of
  technology!!

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Hip-Pocket Information for those not as smart as
you!

• It should include, but not be limited to
• Background
• Financial Info
• Tax info, etc..

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Finally, The Grand Slam

• Funds of x are requested to purchase a
  something. Prior to the purchase of this
  something, (life was rough) because of y.
• Purchasing this thing will allow your department
  to function more efficiently (define) . . . Be
  careful not to even come close to implying a
  manpower cut unless you really believe it can be
  because thats what is being thought!!

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Finally, The Grand Slam

• If we dont get this thing, the world will end
  because of something else.

• Let me repeat that you must actually believe in
  the importance of this thing which ultimately
  results in spending funds of the company that you
  may be retiring from some day, so if you dont
  really need it, dont buy it!!

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Finally, The Grand Slam

• The final statement on your request for funds
  should include information about utility costs,
  disposal costs, training costs/time, keeping up
  with the rest of the industry, whether the price
  is F.O.B. , is it environmentally friendly(er)
  etc.

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One Last Thing
Prepare an Executive Summary to Include

• Background
• Purpose
• Approval Required
• Funding (how many in what years)
• Any additional information
• Estimated Presentation Time

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Another Last Thing
A lot of people within the organization are
competing for these funds. The person that wins
will have the most complete package with the
greatest amount of credibility . . . the first
time the projects are presented!!
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What were the factors that made a difference
between success and failure during the project?
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CISCO, ERP

• Put best people on team?
• Can-do team attitude?
• Well communicated Top Management Commitment
• Middle Management Commitment

• High priority in Company
• Rapid Implementation Schedule
• Big Bang Implementation (Vs. phased approach)
• Rapid, Iterative Prototyping to Build Knowledge

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CISCO, ERP

• Initial No-modification Strategy
• Tight Controls on Proposed Modifications
• Strong Vendor Alliances

• Select Hungry Vendors
• Financially Strong Vendors
• High-level Vendor Personnel on Steering Committee

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CISCO, ERP

• Structure of Hardware Contract (capability-
  based)
• Seasoned, Experienced Consulting Support

• Well Defined Project End Date

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OBSTACLES OVERCAME

• Poor Testing Strategy
• Immature Software
• Undersized Technical Architecture
• BUT Did they really do it for 15 million?