Why did Cisco need an ERP application?

Every company needs an ERP to simplify and rationalize business processes and procedures. This includes processes such as pricing, invoicing, taxation, inventory management, order management etc. With an ERP, business processes can be streamlined and you need not spend millions to build a custom application grounds up. As an ERP ties all departments across organization together it can lead to lead to efficiency and reduce duplication of effort. Specific to CISCO, they were running a legacy system and there was a system failure back in January 1994 and company was shut for a couple of days. The cost of customizing their legacy system and maintaining their system was overshooting every year. So it was decided to replace the system with a big bang approach. Following an RFP, several rounds of demos and visiting vendor reference sites, they choose Oracle as their ERP vendor. The several possible benefits realized by Cisco back then would be:

Improve productivity
Reduce duplication of effort
Increase customer demand and sales
Better management of orders
Increase competitive advantage
Reduce maintenance cost of the systme

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