Week two case # 2-4
OAD 40264 Planning and Budgeting
July 15, 2013
1. Can other corporations benefit from investing in e-business functionality to the same extent that Cisco has?
Cisco launched its official Internet site to provide company and product information. In 1992 Cisco set-up electronic bulletin boards to provide information to their customers. The Telnet site for tech support allowed customers to log on and download updates, check manuals and email the Cisco employees. In 1994 Cisco realized the need to upgrade and invest in the Oracles ERP ...view middle of the document...
Customers were still forced to call a rep and order what they needed. Because of the manual entry of all orders, they had an error rate of 25%. That changed in 1999 when they added the ability to order online. This dropped their error rate from 25% to 1%, which improved customer relations. Cisco also set up an employee connection intranet site. This allowed the company to have an internal newsletter and allowed employees to communicate with each other. It was eventually expanded to include expense reports and all HR forms. The manufacturing Connection Online was created in 1998. They sought integrated partners thus allowing the suppliers the same information Cisco had. Once on order was placed online the information went directly to the suppliers who then built the product to order without the need to waste time calling in the order. As seen from Cisco’s success any corporation can benefit from investing in e-business functionality as Cisco has.
2. What can other corporations learn from Cisco’s approach to guiding the e-business transformation?
Other business’s can learn that sometimes you have to take risks to move technology forward. E-business not only saves time but e-business time but also money, money that can then be reinvested into new areas of the company. E-business is not just a way of buying and selling but communicating across every aspect of your business.