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Enterprise Resource Planning Case Study : Cisco

Decent Essays

1.) Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
Cisco was founded in 1984 by two computer scientists which quickly became a publicly traded company in 1990. Cisco was known for its router. (Austin, Nolan, & Cotteleer, 2002) However, their legacy systems were beginning to deteriorate but the organization was hesitant to implement an Environment Resource Planning software. Management wanted to avoid decentralization. Mega-Projects would take too much away from departments. Implementing an ERP would be a major disruption to the organization along with the time and costs.
Initially, the CEO, John Mordridge was unsure about implementing the Enterprise Resource Planning (ERP) project. Mordridge had an opinion that many Silicon Valley organizational firms quickly decentralized. He believed that companies will lose the ability to grow if Cisco were to take this path. When Mordridge joined Cisco, he was already a seasoned executive with years in the computer industry. He put a professional management team in place with the intent to install a well-organized management configuration. Solvik, the new CIO in January 1993 wanted to avoid an ERP solution as well. His preference was to have the functional areas of the Cisco

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