Case Summary - Cisco Systems Architecture.docx - Cisco Systems Architecture ERP and Web-enable IT Cisco Systems Inc is the worlds largest maker of

Case Summary - Cisco Systems Architecture.docx - Cisco...

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Cisco Systems Architecture: ERP and Web-enable IT Cisco Systems Inc. is the world’s largest maker of computer networking gear. Cisco provides a broad line of products for transporting data, voice and video around the world, which transforms how people connect, communicate and collaborate. Since the networking industry is rapidly evolving, Cisco is focusing on delivering intelligent networks and technology and business architectures built on integrated products, services, and software platforms to its customers. ERP and IT Implementation Cisco Systems decided to implement an Enterprise Resource Planning (ERP) application after a defining moment when their legacy system failed and became inaccessible for two days in January 1994. Even before this dramatic failure, the CIO, Peter Solvik, realized he faced two major challenges when he joined Cisco a year earlier. One, the IT department was treated as a cost center and therefore, focused only on internal issues. Two, the existing system was not scalable to support Cisco’s tremendous growth. Solvik oversaw three changes to address the issue of the traditional structure of Cisco’s IT. First, the company restructured the organization so that IT reported to the Senior Vice President of Customer Advocacy. Second, the IT budget was largely determined by the individual functional groups and not treated as General and Administrative expense so that IT application projects could be client funded. Finally, the line organizations decided IT investments in application projects but continued to be implemented by the central IT group. Still, these changes could not overcome the dramatic failure of the legacy systems. The shutdown highlighted the issue that Cisco might witness total failure of their entire system.
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