07_Cisco_Hide - 07 Cisco Systems Architecture Class 3 IT Internal Organization ERP and Web-Enabled IT Case Summary by Hide Kondo Main Takeaways The main

07_Cisco_Hide - 07 Cisco Systems Architecture Class 3 IT...

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07 Cisco Systems Architecture Class 3 : IT & Internal Organization ERP and Web-Enabled IT Case Summary by: Hide Kondo Main Takeaways The main takeaways from this case have to do with how significant an impact IT can have on companies today. Cisco’s competitive advantage and increased shareholder value are a direct result of the implementation of Internet solutions across all functional areas. Once Cisco had determined that implementing ERP would be the solution to its various IT problems, it conducted research carefully and chose which software package to implement. The results were almost immediate. Increases in both efficiency and effectiveness were evident from the beginning. Net sales increased from just under $2 billion in July of 1995 to almost $19 billion in July of 2000. During that same time period, net income increased from $421 million to over $2.6 billion. Cisco automated its supply chain in order to improve efficiency. In 1999 alone, the total cost of New Product Introduction (NPI) was reduced by $49 million. IT has enabled Cisco to achieve explosive growth. As of March 27, 2000, Cisco was the most valuable business on Earth.
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