Cisco Systems Architecture

ERP and Web Enabled IT

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Summary • Company vision • Pioneer ”New World Network” where voice calls are free over the Internet Cisco = “Internet experts: the Global Internet Company” • • Company background • Founded by two Stanford scientists in 1984 / went public in 1990 Dominates “Internetworking” Market March 27. Cisco overtook Microsoft as most valuable business on earth • • Cisco core technologies 4/21/12 Began with routers (what make the computer work) • • . 2000.

Summary • Industry Trends • Digitization enables convergence of three networks • Internet acts as “Global Network” of networks • Internet’s open standard creates competitive battleground for incumbent telecoms • IP-based networks • Cost advantage over traditional phone networks Better equipped to address performance & security issues Benefit from Silicon Valley location • • The Future 4/21/12 • • Companies compete to develop hybrid product .

Cisco Business • Cisco structure: • • Emphasis on maintaining structure through periods of growth Three “lines of business” (decentralized) • Product marketing Research and Development • • Business Plan (4 elements) • Assemble a broad product line (one-stop shopping for business networks) Systematize acquisitions as an efficient business process Set industry wide software standards for networking • • • 4/21/12Pick the right strategic partners .

Autonomous approach to systems replacement was slow and insufficient Monolithic IT projects could take lives of their own • • ERP Product (enterprise resource planning) • Critical to get best people involved .Defining Moment and ERP • Cisco’s legacy environment failed (January 1994) • Corrupted Cisco’s central DB. Exposed need for alternative approach.Oracle won project Selection process took Cisco team 75 days Recommendation was to replace systems with one ERP solution in 9 months for $15 million Cisco • • • IT 4/21/12 platform architecture was standardized throughout .

Internet and Intranet and Acquisitions • Cisco began web development in the early 1990s. Cisco would web-enable all of their applications Benefits • • • • • • • Employee Self-Service – Internal Applications Communication and Distance Learning Customer Self-Service – Electronic Connection with Customers Net Commerce – Shipping product over the Internet Cisco’s Supply Chain Management Initiative Automating supply EIS (executive information systems) and DSS (decision support systems) Employees use web browser as front end access to all executive and decision support information in the company 4/21/12 • .

Decision to Implement ERP • Critical to get best people involved / strong partner Worked with business community (not an IT-only initiative) • • • KPMG = integration partner Internally. Cisco 4/21/12team researched on client past performance (reference clients) . Cisco pulled best people out of their jobs into the project • Team strategy • build as much knowledge as possible (leverage experience of others) • Cisco narrowed field to 5 packages in 2 days RFPs (request for proposals) • • Spent 10 days on RFP. vendors had 2 weeks to respond.

Cisco built business process on its own global internet • Benefits • Employee Self-Service – Internal Applications • Majority of internal applications web-enabled Corporate Intranet (Cisco Employee Connection. maximized employee productivity .000+ employees. provided tools and resources needed to streamline processes. CEC) • • 4/21/12 addressed unique needs of 40. facilitated knowledge exchange. interaction with the company is network based and begins at Cisco’s home page . provided centralized access to information. supplier. partner.Benefits of WEB enablement • Cisco would web-enable all of their applications • high percentage of Cisco customer.

Allow customers to place orders from anywhere in the world • Cisco’s Supply Chain Management Initiative • (1992) Outsourced much of its manufacturing to contract manufacturers while performing final assembly and test Automated supply chain involved 5 initiatives • • • • • “Single Enterprise” New Product Introduction (NPI) Autotest Direct Fulfillment Dynamic Replenishment 4/21/12 • .Benefits of WEB enablement • Net Commerce – Shipping product over the Internet • Pioneer at using internet for full electronic commerce.

Contribution of IT to Cisco • IT business solution across all functional areas led to increased competitive advantage and shareholder value Examples of IT contributions • • • • Addressed unique needs of 40. 20% for customers and resellers through online commerce • Cisco’s SCM Initiative led to catching of 98% of manufacturing 4/21/12issues upfront and reduced total cost of NPI by $49 million in • .000+ employees Provided centralized access to information Customer Self-Service – Electronic Connection with Customers resulted in $506M in annual savings Productivity gains of 60% for Cisco.

Click icon to add picture Thank YOU 4/21/12 .

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