Presented By Group 2 Ayush Garg Mayank Sharma Savya S Yadav


Founded by 2 Stanford computer scientists in 1984  1997 – First year in Fortune 500  Brought public in 1990  Passed $100 billion in 14 years  Core focus is routers  CIO Peter Solvik vision – “Internet Experts – The Global Internet Company


Cisco Challenged world of three independent proprietary network
 Phone

network for voices  The local and wide area network for data  Broadcast network for videos

Digitization enabled the convergence of three networks  Made it possible to transmit voice, data and video over the same network

initial VC for Cisco  Reserved right to bring in professional management  After 1990 IPO both founders sold their stock and left Cisco  John Chambers became CEO in1995 after coming from Wang Laboratories in 1991  .TOP MANAGEMENT Don Valentine.

HP to sell corporate systems Goals   Become lead architect and provider for new Internet-based infrastructure Change the way companies and industries operate  Ultimate focus is on customer success .BUSINESS STRATEGY      Assemble a broad product line so that Cisco can serve as one stop shopping for business network Systematic Acquisitions – 2/3 of product line was in house and 1/3 by acquisitions Set industry wide standards for networking – Issued networking licenses to major telecom majors Pick the right strategic partner : Partnered with Microsoft for security over network .„dedication to customer success‟ . MCI for premium internet services.

Service Provider  Manufacturing  Customer support  Finance  Human resources  Information technology  Sales organizations .CISCO STRUCTURE  Emphasis on maintaining structure through periods of growth  Three “lines of business” (decentralized)  Product marketing  Research and Development  Centralized organizations  Enterprise. Small/Medium Business.

 Current system could not scale to support Cisco‟s growth nor robust enough to manage managements expectations.  The .DIGITAL TRANSFORMATION Entry of Peter Solvik in 1993 from Apple  Discovered two challenges for Cisco  Cisco IT system was too traditional – viewed as cost center reporting to accounting.

 .PROPOSALS IT reporting went to Senior VP of customer advocacy  IT budget was returned to functions with a very small portion going to General and Administration Expenses.  Central IT steering committee was disbanded. the IT implementation/investing decisions to be taken by LOB.

 Shutdown for 2 days.CRISIS Cisco‟s legacy system failed in 1994  Unauthorized method for accessing core application database.  Corrupted central database.  Exposed need for alternative approach (autonomous approach to systems replacement deemed insufficient)  .

DECISION ANALYSIS  Manufacturing perspective  Have order entry and financial groups perform a single integrated replacement of all applications  Monolithic IT projects could take lives of their own  Cisco wanted to act quickly (no phased implementation/little customization)  Create a doable schedule that was a company priority  Don‟t mirror existing inefficient practices (instead. retrain people to do things according to new system)  Decision to implement ERP was Technology Driven  Implementation would not be done phased – “Big Bang Approach” .

 A team of 20 put to market research for identifying the best software package  .  KPMG chosen as implementation partner – Experienced and saw opportunity to build in ERP implementation.  Pulled best people from various departments to give direction to product.SELECTING AN ERP PRODUCT Could not make project as IT Only initiative.

SELECTING AN ERP PRODUCT   10 days writing Request for Proposals  Given 2 weeks to respond sample data Invited in for 3 days to demonstrate software  Given  • • Entire decision process took 75 days Cisco narrowed field to 5 packages in 2 days Oracle won project – stronger manufacturing capability. made long term promises regarding functionality. flexibility offered by closeness .

SELECTING AN ERP PRODUCT Oracle wanted to win badly – Cisco implementation first major implementation of new ERP product by Oracle  Cisco believed that Oracle was motivated to make the project a success • Cisco project is 1st major implementation of a new release of the Oracle ERP product • Oracle touting new version as having major improvements  Success would be favorable for both parties  .

Next step was to incorporate the internet GOING TO THE BOARD . but started in Q3 and wanted to be stable by Q4 Officially committed 9 months and $15 million for the project  Negative initial reactions Board eventually approved the project.QUESTION PROPOSED  BOARDS REACTION     How much would it cost and how long would it take? Original proposal was 15 months. then 5.

TOTAL BENEFIT ANALYSIS     Project completed successfully on time Formed centerpiece of the 2-yr $100 million series of initiatives to replace all IT applications and platforms worldwide In two year replaced legacy architecture/ Systems.  IT platform architecture  Standardized throughout Cisco 100% UNIX at service level  100% Windows NT at LAN level  100% Windows Toshiba and HP PCs at the client level  100% Oracle at DB level  100% TCP/IP for worldwide network  . High value/low cost architecture.

TOTAL BENEFIT ANALYSIS  Standardization  R&D promoted flexibility and marketing reorganized from multiple business units to 3 lines of business  Changes completed in less than 60 days for less than $1M  Completion of IP-based open standards architecture initiative provided centerpiece of Cisco IT architecture  Foundation for next phase of strategy -> incorporating the Internet .

INTERNET AND INTRANET APPLICATIONS AND BENEFITS Cisco‟s web development began when it discovered Mosaic.  Initial 3 year investment cost : $115 million ERP cost : $15 million Web-enablement cost : $100 million  .  They shifted from Mosaic browser to Netscape Browser after one year.

KEY COMPONENTS OF INTRANET & INTERNET Intranet  EIS and DSS  Employee Self Service Communication and Distance Learning  Collaboration and workflow Management Web-enabled legacy Systems Internet Extranet Supply Chain (information Transparency Customer self-service through website Net commerce through the web Marketing through the web Any place access through the web .

 Intranet of Cisco Links to Vendors and Customers allowed Cisco to collaborate more efficiently with those outside the company. The intranet also provided a proving ground for New Cisco technologies and products . This allowed others to do business more efficiently and effectively with Cisco.INTERNET AND INTRANET APPLICATIONS AND BENEFITS  Cisco Connection Online (CCO) With this program the user directly contributed information required to do business with CISCO or enriched Cısco‟s Intellectual asset base.

Cisco Employee Connection provided centralized access to the information. virtually every application in the company used a web browser as the only user interface. Because the web integrated data and tools from a variety of sources under a unified user interface. training. DSS. facilitate knowledge exchange etc. tools and resources needed to streamline processes. By 2001.EMPLOYEE SELF SERVICE: INTERNAL APPLICATIONS     Majority of Cisco‟s internal applications were webenabled. Cisco‟s intranet was a key enabler of its workforce optimization . self-service HR Cisco Systems‟ corporate intranet. i. .e EIS.

COMMUNICATION AND DISTANCE LEARNING Network enhanced ability to communicate with employees and added important dimension to training  Distance learning was made available to Cisco employees  Activated with relative ease (at employee‟s desktop)  Easily tracked to determine extent of usage   Tracking capability effective as a measure of as organization‟s changing needs. .

( enabled Cisco save nearly $506M.CUSTOMER SELF SERVICE: ELECTRONIC CONNECTION WITH CUSTOMERS Customer was the focal point of Cisco business.8 million times answer customers‟ question diagnose network problems provide solutions expert assistance worldwide  Over 80 % of technical support delivered electronically.  The centerpiece of this strategy was  590.) .425 active registered users visits approximately 3.

.Website has been modified into different languages 2.CUSTOMER SELF SERVICE: ELECTRONIC CONNECTION WITH CUSTOMERS  Improved customer Satisfaction 1. Customers who use Cisco‟s systems show higher levels of satisfaction and a lower cost of doing Business than those who do not use it.

 Today. 92% of Cisco total revenue is Internet commerce based revenue.)  Orders can be placed at any time from any where throughout the world.NET COMMERCE-SHIPPING PRODUCT OVER THE INTERNET Cisco is a pioneer in using the internet for full electronic commerce.  . ( 25 billion annually.  Through online commerce Cisco gains 60% productivity and customers and resellers gain 20% productivity.

As a result . . Cisco choose to form partnerships with suppliers that performed physical transformation as their core competency.CISCO’S SUPPLY CHAIN MANAGEMENT INITIATIVES By 1992. Cisco outsourced its manufacturing to contract manufacturers while performing assembly and test . Cisco decided that its core competencies were in design and fulfillment processes rather than physical transformation of product.



Network enabled applications were key to value maximization in Cisco‟s supply chain. Cisco outsourced its manufacturing to contract manufacturers while performing assembly and test . Cisco choose to form partnerships with suppliers that performed physical transformation as their core competency.CISCO’S SUPPLY CHAIN MANAGEMENT INITIATIVES By 1992. As a result .    Network related applications improved profitability by $275 million. . This model of managin SC was referred as Global Networked Business Model. Cisco decided that its core competencies were in design and fulfillment processes rather than physical transformation of product.

( 2000 users worldwide)  It provided summary and drill down Bookings. Backlog revenue.  Sales Tracking and reporting done over the Internet. not booked.  .EXECUTIVE INFORMATION SYSTEMS AND DECISION SUPPORT SYSTEMS Employees use web browser as front end access to all executive and decision support information in the company  EIS was used by all sales managers and executives worldwide. forecast and plan for all types of products.

The R&D and product organizations of each acquired company were integrated to Cisco‟s product side. The Manufacturing. Sales and distribution parts of acquired organizations were integrated to Cisco‟s functional organization. Cisco has a Group of IT professional who handled integration of acquired organizations. Most acquisitions could be fully integrated To Cisco‟s IT architecture within 60 to 100 days.INTEGRATING ACQUISITIONS INTO IPBASED IT ARCHITECTURE. .      Cisco uses a documented and repeatable process for every acquisition for integration.

$450 million would be invested in the new unit. ) Cisco would provide the hardware and software for customers who want to transfer business fuctions to the web. KPMG planned to use the capital from the deal to build six technology centers( Of the $1.05 billion .9% of KPMG‟s global consulting arm for $1.CISCO & KPMG     In 1999.05 billion. . And KPMG would install and maintain its systems Cisco‟ alliance with KPMG filled a gap to help its customers install and maintain its system. Cisco announces that it will purchase 19.

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