Cisco systems case study and Errnst & Young case study
Cisco systems: using the web for internal Efficiency
With over $21 billion sales and over 38,000 employees, cisco systems is one of the most valued companies in the world. It had a good fortune of providing routers and other companies of the internets infrastructure as the internet was taking off. Other firms were in the same kind of business, but cisco found distinctive methods for servicing its customers, performing its internal operations, coordinating with its suppliers, and successfully acquiring and assimilating firms whose products complemented those cisco already had. Cisco places some emphasis on customers that customer satisfaction is an explicit part of ther personal goal majority of its employees. Cisco actually outsources much of its production, and in many cases passes orders on to suppliers who send the product directly to customers withoutadditional handling by cisco. One part of ciscos success is related to the way it uses informaiton systems, both its Oracle enterprise software and internet based systems that provided data and communication links for customers and employees. One advantage Cisco had in this regard was that it was founded in 1984 and therefore was not encumbered by the remnants of incompatible and programmed data processing systems from the 1970s.
Despite its central role as a maker of internet equipment, Cisco discovered the power of the Internet almost by accident. In the early 1990 Cisco created created a simple text bullettin board for customer questions and comments. In late 1993 Cisco engineers looking for a better way to interact with customers turned to mosaic, the first web browser. Cisco began using using mosaic, but there was nop commercial webCustomers had to dial into Ciscos computers directly. Cisco begun using the internet for selling in 1995. By 2000, customers, suppliers, distributors and other partners had access to portions of Ciscos internal web site. Then, in Feb 2000 97% orders arrived via ther internet. Ciscos employees have come to expect tht everyday data proccessing tasks annoy and frustrate employees of most companies will be done quickly and efficiently thru we b applications. E.g engineers, sales people and others who need to travel to customer can enter their esxpense reports using the internet instead of turning in handwritten reports to certainly involve delays and will have a higher chance of misinterpretaioh and errors. Cisco uses a system of top-down transparehcy in wihich managers at every level in the company have extesive up to date infor4mation on sales and other important buisiness transactions. Cisco sales database is updated 3 times a day, alloowig cisco management to keep tabs on whether sales goals are being met. At any time cisco chief financial officer can obtain companys revenues, margins, orders giveh on those orders and top ten customers for the previous day. Financial data that once took weeks to gather and verify are now obtained automatically as part of doing business.
This helps the company react more quickly to shifts and competitive threats. It also allows cisco executives to maintain tight control without suffocating employees entrepreneurial spirit. Cisco has even shortened the time it needs to close its books at the end of each quarter from the ten days four years to one day toaday while cutting spending on finance 2% to 1%
1. This briief description of cisco mentioned a number of different business processes. Identify at least 3 of these. For each process, identify several possible performance variables and related measures of performance.
2. Identify the different types of integration that seem to apply at cisco and identify any ways in which cisco might be more integrated than already is. Also identify any possible personal or organizational dowhnsides to its current degree of integration.
3. Compare cisco to another organization with which you are familiar. What would that organization have to do to operate its important processes in a style more similar to the way cisco operates.