Posted at 11.18.2018
Ciscos focus on completing the procedure without modifications brought clarity about the type of improvements needed. The modifications were not viewed as showstoppers and a strategy was developed to keep the job moving.
Also the fact that the checks performed before Go-Live weren't sufficient. In spite of this, it's the forward thinking of cisco that allowed problems to be fixed without additional expenditure for the job. Both Oracle and other hardware vendors agreed to deals for long-term functionality of the software and hardware and because the agreements were based on promised capacity, the sellers bared the expenses of fixing the equipment. This formed the basis for the reduction in total project expenditure.
Another important reason was the support from the very best management esspecially the CEO who made it clear to the organization how important this job was for CISCO thus having an organization vast support.
The most significant reason however, that the project became successful was because of inside recruiting. The team contains the best business people. The company just did not rely on IT team, instead IT and people worked along to meet up with the core objectives. It was very important to load a sense of pleasure in the individuals associated to the task to entice the best people and company was mainly successful in achieving that. On top of that company laid emphasis on involving the suppliers and consultants even in the steering committee that helped bring concentrate into the task from all the stakeholders involved
Efficient Decision-Making- The business did not spend quite a lot of time debating. A number of the needs were immediately known and company required and acted on those decisions very fast.
Focus on Central business - The company held its emphasis while in execution towards manufacturing that was the key of operations
Strong Cross practical teams - The task was viewed as a Business relevant task rather than IT initiative. This helped broaden the perspective and bring in more contribution.
Reputed Partner - KPMG was known to be building specific knowledge around the topic and their knowledge helped Cisco identify the right seller.
Committed merchant - Cisco rightly discovered the main concern that is the first major release of oracle which company wished to use as the show off and therefore it might be in the best interest of Oracle to follow the success of the task.
Aggressive Implementation agenda - Cisco established extremely aggressive timelines that retained all the stakeholders on the vigil leading to timely recognition of the issues and their image resolution mechanisms.
Smart contract on Performance- Cisco entered the deals on the assured performance rather than the package.
Top Management Support- A defining minute for every project. ERP implementation was seen as one of the strategic assignments in 1994.
Focus on limited customization of the bottom deal- Limited customization procedure that could help in easier enhancements.
Project end night out chosen by Business Factors- to be able to have least impact on the due course of business
Firstly Cisco find the double Bang strategy and travelled for complete implementation in one go. This may adversely have an effect on the operations. There are temporary glitches but their size that was much smaller at the time of implementation offered them such overall flexibility.
They could actually achieve an extremely aggressive execution time range which everyone though unrealistic to get started on with.
They didn't perform any cost benefit analysis to estimate the ROI. After a few years it turns out that they had immense cost savings credited to ERP implementation but at that time no work was made to understand this.
It was an initial major release of oracle ERP solution. As a new software it might have been problem prone. It proved to be relatively secure.
They didn't test the info in a full substantiation manner, and in fact they examined the procedures sequentially somewhat than all together. However, this did not cost them due to the dynamics of the contract.
The cost/timeline predictions and the real were much in-line regardless of many roadblocks.
They did the due dilingence for the configurations in only 2 days, something that normally takes upto six months for implementation of this size yet could actually achieve 80% reliability. Cisco contained their existing jobs within their new ERP system, not framing the look system within carefully organized, desired operations.
The execution team was sorted out in functionally somewhat than by process. Although this resulted in some primary problems but eventually everything was quite stable by Q4 of 1995 as forecasted.
Cisco's potential for replicating the execution is very thin to none of them because a number of parameters that can partly be related to success (as explained above), dropped into place during the first project. The strong connections produced for the job were the result of good timing in the sense that Oracle was really looking for a major win and agreed upon a unique contact predicated on performance amidst limited time lines and with high levels of interest. A big part of the success of the project originated from the timing which would be practically impossible to reproduce as Oracle nd almost every other vendors have grown to be sizeable now. Another part of the relationships that cannot be replicated was the expense of the overall execution. Some of Cisco's companions used a lot of their best resources in this project, but didn't charge Cisco for this use. This allowed for the systems price to remain on the smaller side. Again, without the interactions and timing, the cost of execution and resources would be difficult to reproduce.
Lastly, how big is the company was then quite advantageous to move the implementation. Due to enormous progress of the business, the organizational mass will come into play in commencing such projects and will cause significant problems in future.
Also, Cisco's procedure would be difficult for other companies to reproduce. The primary reason for this would be the fact that the management of the company was willing to invest nearly every necessary amount for the execution. Without strong backing from upper management a huge project cannot make it off the ground. Some parts of the way that can work for companies are discussed in the opening paragraphs of the examination section. Overall, the probability for the any business to reproduce the approach of Cisco's implementation would be difficult.
The idea of waves allowed the employees to see the progress happening which retained them energized and prepared to undertake the forthcoming issues.
The implementation of each wave allowed the team to study from the past flaws and get both complex as well as managerial skills to be developed within the team
This snowball procedure empowered the team to validate the business enterprise model and to de-risk from the issues arising out of doing a major -bang rollout. This also triggers minimal disruption to the business at any point of time.
In using the approach of staged implementation they could distinguish the complex issues from the genuine business related problems. This greatly reduces the risk of a intricate implementation
Regular feedback can be provided and reviews of the program and schedule after every phase can be given. This encourages learning from earlier experience and mistakes
The expertise of the team get improvised plus they become more efficient in planning the future phases and their common sense and foresight enhances greatly
Stage wise reporting supplies the modularity to manage and survey on the various issues which is critical to guarantee the top management commitment to the task.
Since the project is integrated in phases the timelines are also monitored effectively. Prioritizing the duties and ensuring that the objectives are kept in mind while making the choices are possible in this approach
The perspective and command of the job : Neun was a visionary head in the sense that he could assume that changes have to be done which too quickly in order to turnaround the business and transform it profitable. The perspective assertion that he came up with was very simple and each one in the organization could understand it easily and connect themselves with it. The changes that he wished to bring about was not incremental but was radically not the same as the prior systems which were being followed. His execution of this project demonstrates his mantle as a visionary leader.
Backing from the very best Management: The task of implementing this new system was changing every aspect of just how things were being done. From an actually useful way to an activity focused way needed a change to the culture of the business which is very difficult to use. Questions regarding the authority of the person in-charge would have caused this effort to fail miserably. Instead the way in which the bigger levels dealt with this by giving unquestioned control to Neun and his decisions provided a critical factor.
The initiative was not cared for as only a Technology change: The criticality of the change was communicated correctly and was seen to have no alternative no short-cuts to the process. The rules were well identified and exceptions weren't entertained. The advantages of getting the required level of visibility into the daily operations and advantages were unambiguously described. Hence the buy-in from the employees was assured plus they didn't have two intellects to the adoption of the new functions.
Long term project Momentum: It's very crucial to keep up the worker morale for a permanent project to have success. The phased methodology helped the employees with short-term wins and a sense of fulfillment. By incorporating the right skills the team as a whole combined with the cross-functional experts and the business enterprise partners took possession and responsibility for the success of the entire implementation.
Tektronix lacked the expertise and experience in putting into action a project of the size. They overcame that by partnering with Aris and other consultants to supply them with the required expertise
All the key Players in each useful and geographic area were discovered and their buy-in was guaranteed. They acted as negotiators when business change was needed. This fixed issues by way of a combination of specialized and functional talents.
The Implementation risks were handled by creating a thorough plan that was backed by the top management. All issues and hurdles were noted in great depth. They used this documentation to fully assess the business enterprise and the real need to focus on. They could identify the areas which were critical to the success of the execution and the business as a whole. The geographic pass on of the firms created additional obstacles but they were able to find a thread across all units
Sharing of services and set up between all the devices enabled them to further reduce the risk of having multiple setups and other dependencies that happen out of the. They shared AR, GL, Graph of Accounts and the same item professional table which would be common for all your divisions.
Getting task buy in from each of the divisional leaders, as well as the IT office management was important to apply challenging decisions like downsizing of the Western employees, imposing English as the worldwide inside company vocabulary.
De-motivation risk in a long term project like this was managed by using the snowball methodology. Each milestone was acknowledged and felicitated. This increased the assurance of people focusing on the project
Vendor management was completed very strategically. They didn't give a chance for owner at fault anybody else as they ensured they created a network of Oracle consultants who could get in touch with the merchandise team and sort out issues arising in the application implementation. This also guaranteed that the latest areas and insect fixes would be produced available at the initial. This sort of team would take responsibility and focus on the issue rather than just blaming another person for the problem.
The Roll-out was timed well and the order where they preferred the divisions made certain they could de-risk any complicated issues arising. First the US CPID was picked accompanied by US VND and lastly US MBD. The dialect issues arising in localized implementations was kept to the finish and ensured that they didn't hamper the initial roll-out. Simultaneously they kept working on the method of be implemented in the most complicated unit which acquired many products and was not dealing only with a couple of products that was easier to take care of.
The company thought we would buy a total system rather than rendering it in-house. They thus didn't have to deal with all issues of producing software. They recognized it had not been their core strength to generate it at home and instead thought it easier to leverage the external organization's R&D attempts which would have yielded a better product over much iteration as they would have set all conditions that arose in their prior implementations. They also chose a solitary ERP vendor instead of adopting a best of breed strategy. This helped them to reduce support, maintenance and integration issues.
They deployed multiple instances to meet the objectives of different divisions. However they didn't standardize unconditionally and thought we would retain the specific customizations which got a competitive advantages for the business unit.
The company leveraged all the shared services to the maximum. In addition, it provided a way of bringing in a common program to compare the several business unit to evaluate their performance on certain aspects.
They decided to stay as ordinary vanilla as possible in order to further reduce any upgrade issues. Customizations make maintenance and upgrades difficult. Only where it is just a competitive gain for the business would exceptions be produced. This kind of a universal guideline enabled them to enforce certain decisions which could have encountered significant amount of resistance if taken over a case by case basis.
Tektronix chose to wthhold the same team on whom they had built their assurance and ensured a continuing Romantic relationship. This further reduced the implementation risks and better the execution. Tektronix chose to use a period and Material approach in which they could choose the sort of resources to satisfy the roles required for the team at that time with time and also rotate the same resources for different job with regards to the phase of implementation.
The ERP implementation at Tektronix seems successful and well been able. There were many right decisions taken to help in the success of the implementation however couple of additional points might have been considered in greater depth.
The decision to go with Oracle needed an effective justification. Have to evaluate the solution to embark on alternatively than jump direct in to Oracle ERP. Alternatives may also have to be considered besides using ERP.
The decision to Outsource needs to be assessed from multiple perspectives. A dependence was created on Aris and other consultants for all the technical and useful knowledge and Tektronix employees handled only the business requirements. They however downplayed the knowledge transfer aspects that have been required to de-risk the dependency on any particular company providing the answer. Swiftness of execution would be performed at the cost of staking the entire implementation.
Also Tektronix should have considered hiring a few of the consultants as employees to ensure that the retention of knowledge is quick and also get some visibility into the technical aspects
Budget was not a factor whatsoever. It's important somewhat to have give attention to the job rather than the cost. But in this case there was no person entrusted the responsibility of justifying any expenses and also have control on any of the expenses that were unwarranted. This sort of freedom could be misused and any advantages arising from the act could be washed out in this manner. Tektronix had not been in a good financial state and hence the risk associated with this process was higher. The harm done by this execution if it hadn't been successful would be way in the limit where it could have been reversed.
Approach of utilizing a standard way execution across - The flexibility of the business could be lost by imposing the standardization across all the units and could bring about the organization being worse off. Any kind of creativity could be lost in this and everything divisions would be forced to operate in a specific manner. While going for a decision of this magnitude we need to pay more focus on the details and therefore the aim of speed of execution could have negative influence on the homework that need to own been done in every case.
Cisco Procedure: CISCO Execution is specified by the fact that it was a large bang approach, an obvious case of accelerated implementation. They are recognized to possess completed this task in nine calendar months at estimated cost of $15 million. This exemplary success was made easy by the fact that these were much smaller then in 1994thead wear gave them extra flexibility. Also they had a simpler Legacy system that they could turn to replace. Complimenting this is the actual fact that at the time they were growing exponentially and and their legacy systems were not able to keep pace with the expansion resulting in outages as well. They have many things right to get the machine selected, integrated, and stabilized in a comparatively short period of the time.
Tektronix Way: Tektronix faced a lttle bit different implementation task. As an older company, mainly a company of measurement equipment and color printers, they had a much more intricate legacy environment in comparison to Cisco, Larger Selection of products and product families, and a far more geographically distributed execution rollout. Within the light of the differences arising out the character/size of businesses, Tektronix provides an excellent example of how functionally and geographically phased implementation can work.
Extra Information: Just as much as their implementation techniques, what sets these two companies apart is exactly what they were in a position to do post-implementation. Cisco has been able to document vast amounts of us dollars in value that stem, in large part, from other ability to make off a good, integrated information technology infrastructure. Tektronix was able to leverage their new infrastructure not only to improve data visibility across the venture, but also to clearly identify operating associations in support of their technique for business acquisition and divestiture.