Cisco Case Writing Essay

953 WordsAug 6, 20124 Pages
Cisco Case Writing Cisco was the world’s largest developer of networking and communication products for transporting data, voice, and video over long and short distances. Cisco’s IT governance model was changed over time in order to better exploit its existing capabilities. Some key points of the model before 2001 are listed as follows. * IT organization reported to customer advocacy group. * IT budget were allocated based on a client-funded-project system, which meant that each department had the flexibility to select and fund the deemed most valuable projects. * IT investment decisions on application projects were pushed out to the line organizations but still executed by the centralized IT organization. * Cisco spent whatever was needed on IT as long as it made the business more productive. The main claim of this model was that business groups independently selected and funded their IT projects, which encouraged employees’ independent, creative, and entrepreneurial spirit. However, the model also affected Cisco in many negative aspects. * Customized tools did not provide the desired output, because functions underestimated the training and change management requirements of new software. * Multiple databases and fuzzy definitions from different groups resulted in conflicting data circulating around the company. * Cisco had several applications that performed similar functions. Such redundancies led to a waste of money and human resources. * It became extremely difficult for the company to upgrade its most important ERP system. In 2001, Cisco’s IT governance model was changed to centralize IT planning and spending. * Required all teams to stop new applications, and customized projects. * Invoked support of senior leaders across the company to recognize the importance of central governance. *

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