Cisco Case Study Example | Topics and Well Written Essays - 1000 words

Cisco - Case Study Example Secondly, he reallocated the IT budget distribution system with the intention that each functional department can control their budget according to their needs instead of gathering all the IT expenses under one head, that is, G&A expenses. Each department could fund their projects according to its priority. He dispersed a central IT leading committee and changed it with a structure which gave the line organization authority to take IT investment decisions on application projects. At network level, the customer advocacy group wanted to establish a customer interaction network which could use Cisco’s technology to route calls. Pete Solvik also established an intranet network for the employees. A web based online resource at Cisco.com was also developed for the customers. ERP system was introduced in Cisco by Pete Solvik to manage Cisco’s manufacturing process and inventories. Further up gradation to the ERP was done by Boston for integrating all the functional units of the organization. By the end of 2001, CISCO faced a turning point. CISCO’s had a decline in its sales growth. People started spending less on technological products due to the internet bubbles burst and also due to the terrorist attack of 11th September. Pete Solvik also left the company and a new CIO, Boston was appointed. The need for change in the company’s IT strategy was felt due to the dynamic business environment (The Pennsylvania State University, â€Å"Personal PSU†). The intention behind the implementation of ERP system was to standardize the information which was being used in the company. Nevertheless, as a result of the IT liberty given to the different functional areas of the business, they programmed their own non-standard functional applications to interact with the ERP system. With the amalgamation of these new modified applications onto the ERP system, it was no longer possible to