Cisco was already experience first two stage before Peter Solvik joined Cisco as its CIO in 1993.1984, Cisco Systems was founded in the United States, the founders are two computer scientists from Stanford University. Computer was introduced when the company was founded. Computer is a necessary equipment for the company because the products and computer are complement in the production line. However, there were only a few individuals can use the computer, for example, the two computer scientist founders. After the expansion of Cisco, Enterprises had a certain understanding of the computer. They would like to use computers to solve problems at work, such as more data processing, management and business to bring convenience. Thus, the application began to increase demand, IT applications began to generate interest in enterprises, and the development of software enthusiasm, investment began to increase significantly. It is easy to blindly purchase, blind development of custom software phenomenon, the lack of planning and planning, so the application level is not high, the overall effectiveness of IT cannot be highlighted as Nolan (1974) has been discussed on his paper.
Until Peter Solvik joined Cisco, he recognized the problem from the second stage(Contagion), such as data redundancy, data inconsistency, and the date was hard to share. Business managers realized that the use of computers applications was out of control, IT investment growth was fast, but the benefits were not satisfactory. He tried to begin to control the overall development of computer systems, such as the reorganize the IT budget planning, replaced committee and change the reporting relationship. However, Cisco was still stunning in the beginning of the third stage.
The third stage: Control
Boston joined Cisco as a new CIO after Solvik left in 2001. He finds that there is an ineffectiveness investment on the customized tools. There were nine different tools to access the customer order which create multiple data and different definition on explanation with the order. He thought the conflicts and redundancies is occur because there were not centralized team checking for the company systems which lead to a rise of unnecessary tools. As Nolan (1974) discuss, for the need to control the cost of data processing, managers began to convene users from different sectors of the Committee, to jointly plan the development of information systems. The management information system became a formal department to control its internal activities and launched a project management plan and a system development methodology. The current application began to formal, and lay the foundation for the future development of information systems. In the Cisco case, Boston stopped the investment of the new tools applications and upgraded its ERP (Enterprise Resource Planning) system, solving the reporting and intelligence problem and developing its customer database.
The fourth stage: Integration
Boston also focused on funding IT project. It makes the company process to the fourth stage, which is Integration stage. Organizations from the management of computer management information resources. From the first stage to the third stage, usually a lot of independent entities. Based on control, enterprises began to re-planning and design, the establishment of basic database, and build a unified information management system. Enterprise IT construction began by the scattered and single-point development into a system. At this point, corporate executives began unified different enterpri
