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with Cisco Systems |
The world's largest implementation of Oracle Applications runs at Cisco Systems, Inc., supporting the company's finance, information technology, market management, product development, customer service, order fulfillment, and human resources operations. |
From its inception in 1988, Cisco Systems Inc., the leading producer of internetworking solutions for enterprise-wide computer systems, managed its operations with a set of first-generation UNIX manufacturing and financial applications. That was fine when the company's sales were $50 million. Six years later, as sales approached $2 billion and its operations spanned the globe, Cisco found that its information systems were becoming inadequate. "The legacy applications would not scale to our rapid growth," says Peter Solvik, Cisco's chief information officer. "We simply outgrew them." So in 1993 Cisco standardized on the Oracle DBMS for all business applications worldwide, and put together a plan to phase in a new enterprise-wide system over a couple of years. But a crisis ensued that convinced executives that they needed the new system as soon as possible: the company's information system crashed for two and a half days, throwing Cisco into momentary chaos. During the outage employees had to manually control key functions, such as manufacturing and order entry. As a result, Cisco shipped some products late and missed customer deadlines. The new information system could wait no longer. "We were putting together a plan to migrate over a couple of years," Solvik says. "Then came the outage, and along with it the realization that the current system would become an impediment to our growth. That's when we decided to look at the feasibility of a rapid implementation." Once the decision to install a new system was firm, Cisco decided to do the implementation in nine months. In fact, Cisco's installation of Oracle Applications turned out to be the fastest ever and today is the largest in the world, spanning the company's headquarters and its operations throughout the United States, 12 European countries, Australia, and Japan. The Big Bang Systems for corporate and financial operations in the U.S., Canada, Europe, and Australia, plus manufacturing and order processing and distribution, with more than 1,200 users, all came up at the same time in what Solvik refers to as "a big bang implementation." Solvik's team selected Oracle Applications because the company needed open interfaces and ease in customization, and because of Oracle's experience and installation base in manufacturing operations. The team selected KPMG Peat Marwick as the lead consultant, along with Oracle Services. Altogether, the project involved more than 100 people. Cisco implemented Oracle Applications 10.4, using the Oracle7 Release 7.1 DBMS. The company also used Oracle Forms 4.0 and Oracle CASE to develop several other systems, including a Training Registration System. Supporting Macintosh Users The system supports 1,200 users, most of whom use Apple Computer Inc. Macintosh computers, of which about 450 are running simultaneously. The system handles order entry and credit checking, then schedules shipments based on commitments from Cisco's suppliers. The orders are then released to manufacturing, which is exploiting the new assemble-to-order capabilities in Oracle Applications. Products are then built and shipped. The system processes all billing and invoicing, along with accounting functions such as general ledger, accounts payable, and fixed assets. A Smart Move In addition to facilitating Cisco's rapid growth, the new system also improves the company's order fulfillment cycle and its customer service. The system has made Cisco's international operations more efficient by supporting multiple currencies and languages and making it possible to more easily meet complex reporting requirements. The company has also been able to reduce by 75 percent the number of redundant reporting databases, bolt-on applications, and point-to-point application interfaces. Cisco has tripled in size since it began the evaluation phase of the project. It has doubled in size since the new system came online. Solvik notes: "Our rapid growth would not have been possible had we not been successful in this rapid implementation project." |
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