T+Wilson+Page

CISCO Case Study - Questions:

//What was Pete Solvik's// //approach// //to IT decision making at Cisco? Did he think that line managers should get to make all IT decisions? If not, which ones did he want the IT functions to make, and which did he want the business units to make// //?// //How well did Solvik's model of IT governance work//?


 * Solvik's approach to IT decision making was that functional (department) leads should be responsible for their budget and expenditure decisions. He didn't think that line managers should make 'all' IT decisions but rather the decisions linked directly to their lines. This model of governance morphed into less of a republic as the burden of responsibility fell squarely on his shoulders. He still successfully motivated and valued the managers but the approach was less emphatic as the project progressed.

//How did Cisco// //find// //itself in such trouble with regard to its internal IT in 2001? Why didn't the single ERP system help? Why didn't it ensure more consistency?// ** ** The problem was that there were too many departments delving into custom applications to achieve their functional requirements. Because of this there was proprietary data that would be lost during any ERP upgrade.**

//Why did Boston pick the three big projects he did?//
 * Each of these three projects were of highest priority from a strategic initiative perspective. Additionally, they offered the path of least resistance after the team listed the 'inhibitors' for each project.**

//What is 'Shadow IT'? Why should a CIO want to control / minimize it? Are there effective ways to do so? Do you think Boston's amnesty program will work? Does it stand a good chance of uncovering all or most of Cisco's shadow IT projects?//


 * Shadow IT is the outside IT staff / contractors that work in conjunction with the internal Cisco IT staff. These external teams completed projects for the company (and their customers) but were not governed with the same fortitude. These teams also didn't work by the same motto/agenda as the internal Cisco staff...which led to situations where mixed signals were being sent to customers and management. The CIO should identify the particular projects that are 'Shadow' ready and allow this staff to handle these....otherwise leave the strategic projects for the internally bread project teams. I am not sure if Boston's amnesty program will work...I would like to see the details of the program.**

What is BPOC ' s role? How much formal authority does it have? Would you approve the call center project? Why? Do you think that Cisco can easily transition to a more horizontal, process-oriented company as described on pages 8-10. Why?


 * __Interview with IT Staff (paraphrasing from conversations with IT):__**

1. **Organizational structure of IT:** CIO reports to CFO. I have two functional managers that report to me. One for the application/internal side and one for the external side (website, extranet, etc..). 2. **Thoughts on outsourcing IT functions, being done**? Not being done. We handle all of our functions internally. Not a fan of outsourcing - especially for internal IT functions. 3. **Most successful IT projects**: Roll out of Saleforce.com for salesteam and now for other related department (support, development, administration, HR). 4. **Failed IT projects**: Haven't been around long enough to accurately answer this question... 5. **Upcoming IT projects:** Deployment of new enterprise email/web server and app. Application TBD.


 * Questions from CIO - Lynne Wilson @ Perceptive Software**

1) What are the 5 most important IT issues from your perspective? - Strategic linkage with the business - Ability to consistently meet or exceed key performance indicators (systems availability, customer satisfaction, first call resolution, completing projects on-time and within budget, etc.)  - Security (logical and physical)  - Disaster avoidance/recovery  - Delivering effective and efficient solutions that meet the requirements of the business 2) What do you like or dislike about the way that IT is governed (not necessarily at Perceptive Software...but in general)? - IT should be viewed as a strategic component of an enterprise versus just a cost center. This is sometimes hampered based upon where it reports within the organization (CFO / Finance versus CIO/COO) - Customers oftentimes view required structure as a challenge getting things completed from an IT perspective - without the structure it is challenging to maintain highly available, secure systems. It is also challenging to deliver technology projects