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Enterprise Resource Planning (ERP) - Essay Example
Cisco Systems has been widely acclaimed as an early adopter of ERP and being successful at it. Cisco has been credited with timely adoption of the e-mail, Internet and ERP technologies at the perfect opportunities that contributed to its growth and made it a widely acclaimed company…
While in college, they found that the inefficiencies of the existing infrastructure led to great difficulties in being compatible with the numerous mail clients in operation and served to go from there. They took their idea with them when left the campus and Cisco Systems was born.
Cisco grew rapidly and to cater to the company and product information distribution, launched an official website in 1991. It had a 50% share of the networking market and struggled to keep up with the calls it was receiving.
By 1993, Cisco boasted a growth of an astounding 270%, but its IT department was sorely lacking to cope with a half billion-dollar company growing by 50% each year. The initial budget was for funding IT was 0.75% of sales and this was inadequate. CIO Pete Slovik and Senior Executive, Doug Allred, brought a revolutionary concept that entailed that the IT spending was linked to the business units that in turn necessitated close alignment to the company goals. Cisco's internal network would play a strategic role in providing the connectivity needed for the business units to build applications creatively.
This new concept signified that a major upgrade to the existing infrastructure was needed if Cisco managers were to meet the customer satisfaction goals. Because it was a major decision that would cost millions, cash-strapped Cisco will find it quite complex. ...