Individual Case Study #1 -‐ Cisco (1) According to Cisco’s CIO Pete Solvick, “The application didn’t provide the degree of redundancy, reliability, and maintainability we needed. We weren’t able to make changes to the application to meet our business needs anymore.” The reason for this was because top management maintained a centralized structure within the organization. The CEO John Morgridge, believed that many Silicon Valley firms decentralized too quickly and therefore lost appreciation for the proven ability of the organization to grow without sacrificing control. Management at Cisco wants to grow the company to a $5 billion plus size, but does not want to settle for an upgrade of their current software version. Therefore, Solvik decided to keep Cisco’s strong tradition of standardization and require all functional areas to use the common architecture and databases. By doing this, a new system design was nearly impossible to achieve because of strong legacies of the old system design. Upper management continued to ignore the shortcoming of the existing system believing that the budget would be too large and the time it would take to implement would be too long.
Solvik states this clearly, “Anything we did would just run over the legacy systems we had in place. It turned into an effort to constantly band-‐aid our existing system. None of us was going to throw out the legacies and do something big.” The company was disappointed and ready move on from their original program, but was hesitant to pull the trigger on such an expensive and time consuming project. The complacency of upper management also did not allow the company to be flexible and upgrade their software to a better more lucrative system. (2) Cisco’s management team understood that in order to implement a new program that meets the business needs, it could not just be an IT-‐initiative but that it would also need to include the business community in the decisions. Solvik stated, “We pulled people out that the business absolutely did not want to give up.” Cisco also knew the importance of having strong partners that could assist in both the selection and implementation of whichever solution the company choses. Their strategy was built on leveraging the experiences of others including large corporations and the “Big Six” accounting firms. The team learned that the project would be driven primarily by manufacturing and therefore selected Oracle for their vendor since they were better equipped in manufacturing than other vendors, they promises regarding the long term development of package
1 GEB1011 Professor Baine Cisco case July 19, 2014 1. What was the primary issue facing Cisco in 2001 that led to their poor performance and large stock price drop? The top executives of Cisco believed that they were immune to domestic and international economic forces and had continued to build their inventory believing business would not slow down. 2. Analyze and evaluate this issue as well as other issues identified in the case study that Cisco did not address…
1. Study the networked supply chain concept as implemented by Cisco. What are its strengths and weaknesses? Cisco Systems, Inc. is an IT company that specializes in the selling of networking and communication products and services. It is a B2B company where they sell its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers such as routers, modems, and home network management software. The products…
Discussion Questions Cisco Case Questions 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? At the beginning of the case, Cisco’s information systems were failing because they were experiencing exponential growth and the IT systems that were in place could not provide the reliability and maintenance for this magnitude of growth. Companies that experience…
1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project. Below are reasons Cisco hesitated to take on an ERP project: a) Fear of decentralization b) Fear of “mega-projects” that ERP implementation often becomes c) Disruption to the business d) Need for…
Cisco was founded in 1984 by two employees of Stanford University and became a public company 6 years later. After the company became public, the founders of Cisco decided to sell their shares and leave the company. This allowed the company to have a more receptive environment for growth and new management. Cisco became a fast growing and fast moving company due to the consistency of strategy, goals, organization and management that was implemented. Cisco’s goal was to become a leader in technology…
Logistics INDIVIDUAL CASE REPORT Cisco Systems Inc.: The Viking Challenge Submitted to: Mr. Dave Swanston Submitted by: Vishal Gupta ID: 125821880 20th March 2013 Executive Summary Cisco Systems Inc. is a $100 B technology company which provides internet networking solution to telecommunication and broadband service provider corporations. Cisco is leader in developing the networking equipment for the industry. Cisco wants to develop a new generation…
New Media Project Lab Educational Goals are important for every student around the world. These goals determinate which course of action we should take in our student live. However, My case is a bit complicated. I cannot be full time student since my personal life interferes with school hours. Right now, I cannot graduate from LGCC because some of the classes are not available in the schedule I can take them. I have been searching for schools, which provide me a flexible schedule, but it is…
Time was a big issue for Cisco and as a result the ERP project implementation needed to be finished within fifteen months, which is a very short time period considering that on average an ERP implementation takes twenty-three months (Wheatley, 2000). The time constraint also resulted in the decision against the development and use of a business case. An ERP system installation will, almost certainly, change the way in which Cisco is performing its daily business, and hence it…
John Morgridge joined Cisco as a CEO in the year 1988. The very first thing he notices in the organization was the lack of professional management team. Initiation for professional management team was the first kick off for the organization. Professional management is considered to be the foundation of any big organization and Cisco started with this thereby sticking with the fundamentals. The professional team clashed with the founders ending up them leaving the company and giving a free hand to…