TJX Cisco systems implementing erp harvard case study effectively implemented barcode scanners and kiosks to speed up business operations. I was quite surprised with the extremely tight schedule of the vendor selection. Cisco Systems, Inc Annual Report. TJX must also secure its physical assets to ensure that they cannot be tampered.
Not only did it shortened the implementation time significantly and reduced the risk of the project, it also made it a lot easier to benefit from future system upgrades by the vendor.
TJX should also look at having independent IT security audits on a quarterly basis. When I was working at Chemistdirect. The decision to completely replace the legacy system instead of a phased implementation was also a good decision as it would create less confusion for the IT team for having to support the legacy system and they could focus on the ERP implementation.
The scope of the project grew too large and with the budget limitations, the project had to be abandoned after 6 months.
The IP based architecture also enabled Cisco to quickly and effectively integrate the acquired company through a documented and repeatable process for integration. Cisco Systems - Annual Report The action plan for the immediate future must be to contain the security breach and implement steps to fix the vulnerabilities.
Internet applications and benefits The success of the ERP implementation provided the groundwork for the next phase of Cisco IT architecture — web-enablement and incorporating internet and intranet applications.
There are no business processes defined for monitoring and regular internal audits. An effective risk management process will provide reduced cost of operations, predictability, transparency and confidence, avoidance of security breaches, and enhanced capabilities .
Cisco will also need to take measures to secure the web pages and restrict access to eligible employees. Management should promote employee rewards for exposing IT systems or network vulnerabilities. Recommendations To align the organizational strategy with the business strategy and information strategy, the management at TJX will need to seriously focus on establishing an IT governance, risk mitigation and management strategy.
Minimizing customization was probably the most important element that contributed to the success and risk mitigation. Through its internal applications for employees, people deployed around the world were able to interact and address business issues and customer needs.
It is important for the business to see strategic value in the ERP implementation and not just view it as a good-to-have feature of IT. From my experience working in the e-commerce industry, being responsive to customers greatly improves customer satisfaction. There should be training conducted throughout the organization to increase awareness about the importance of basic IT security measures such as not sharing passwords or leaving computer systems unlocked, to prevent internal security breaches.
Also, forming an executive Steering Committee provided high level sponsorship for the project, to ensure visibility, and to motivate the team. Even though the ERP implementation would have a high cost to the company, management was able to see value in implementing the ERP product and was not looking at cost avoidance.
TJX should implement firewalls to control access of kiosks to the system. It should also not store any customer data that is not required or against PCI standards. At an organizational level, TJX should create formal procedures for risk management and use a RACI Responsible, Accountable, Consulted and Informed matrix to assign key responsibilities such as network security scans and upgrades, internal PCI audits, firewall scans and ensure that these activities are carried out as planned.
TJX management must drive the organizational strategy for a secured IT framework to meet its strategic goals. What did Cisco do that contributed to its success? The fact that the ERP project was completed on time and within budget suggests that the project team did a good job of preparing initial estimates and project management was able to avoid scope creeps and keep the project on track.
In such applications, it is important to restrict access based on authority.
What did it do wrong? TJX must ensure that process and access logs are maintained at each and every system. Failed to design the system to handle correctly its full load Did not test the system in full load In testing the system, Cisco had run individual processes sequentially rather than at the same time.
The vendor had to absorb the cost associated with its under sizing mistake. However, its organizational strategy is not in-line with its business strategy of providing a secure foundation. With thorough evaluation criteria defined up front, the project team was able to objectively evaluate and score five vendors of relevant application packages .
It is not so much a problem with the orders or late delivery, but a lack of response that affects a returning customer. There is a clear lack of ownership and authority in terms of IT network and systems security. What would I have done differently?Cisco Systems, Inc.: Implementing ERP 3 We knew we were in trouble if we did not do something.
Anything we did would just run over the legacy systems we had in place. Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online Case Study # (Rev: May 6, ) Austin, Robert, “Cisco Systems, Inc.: Implementing ERP”, Harvard Business School Online Case Study # (Rev: May 6, ) Executive Steering Committee Project Management Office Sales/Reporting.
Minimizing customization was probably the most important element that contributed to the success and risk mitigation. Not only did it shortened the implementation time significantly and reduced the risk of the project.
11/4/ 1 Case Study: Cisco Systems, Inc.: Implementing ERP, by Mark Cotteller BY NIRALI THHAKAR JUDITH SOBOTIE Outline Brief History Question/Answers Final thoughts 2. May 15, · Harvard Business Review: Case Analysis - ERP Implementation at CISCO (PDF-ENG) from Strategic Role of IT perspective Presenting an analysis of the HBR case ERP Implementation at CISCO (PDF-ENG) from Strategic Role of IT perspective.Download