Cisco totally committed to one industry which is computer networking industry  Key core competence  Adopted innovative techniques and technology  Further develop and expand its market presence  Boston Consulting Group (BCG)’s the portfolio matrix model. forces are weak  Higher entry barrier.Summary  In Corporate-level strategy. in Cisco condition.  Limited number of competitor and substituted product  The power of supplier and customer are weak too . Cisco fall in Winners category  High level industry attractiveness  Strong business strength  Porter’s Five Forces Model.

 E-business initiative by Cisco  Maximizing customer satisfaction  Minimizing the cost  Support customers and directly increase sale  Employees do everything to support the customer  Delegated Authority for IT expenditures  Extended telephone support hours  Customer Training Programs  Educate customers &build customer loyalty  Electronic dissemination of information  Support large number of customers .Contd.

However. the implementation and the execution may not same  Every company have own strategy and the infrastructure and the program must design based on that strategy .1) Can other corporations benefit from investing in e-business functionality to the same extent that Cisco has?  Yes  The infrastructure and program is in the market right now  The company just chooses the right ones are match with the requirement.Q.

Q.  With Efficient use of technology   Cisco can develop system that ease the employee works each other Make the business process simple .2) What can other corporations learn from CISCO’s approach to guiding the e-business transformation?  Flexibility is critical  No systems are adequate with the situation over time  Revision.  Human resource  Other company can learn how Cisco treats the employee. adaptation and change  The flexibility also comes from decision making process  The business units have independent position to relate with cost and strategy  Because the business unit face own unit unique environment and the business unit itself know to deal with it.


Summary  Cisco’s efforts in the area of standardized B2B commerce  Company’s innovation process  Automated processes  Cisco Systems : The most sophisticated e-business  Image a critical driver of its sales success  Demonstrate cutting-edge e-business practices  Cisco is far from complacent about being able to maintain its leadership position .

co-design.Summary  Initiatives generated within business units : narrow in scope  “white space” opportunities being overlooked to an extent  Extra initiative plus the involvement of senior executives required initially  Opportunities to co-develop. and co-engineer  Not clear exactly how to approach these possibilities or how to make them routine  Cisco combines its knowledge of networking technologies  Focus on :    with its organizational acumen Image a critical driver of its sales success Mutual Respect Open Active Communication “Raise the capacity” .

often overlooking impacts on sales  Customer satisfaction. or employee retention  Cross functional team working on R&D  Decentralized IT investments  New “Client Funded Model (CFM)”  IT reported to a new group called Customer Advocacy  Automated processes .Q1) What do you think of the way Cisco funds new e-business initiatives?  Initially funding came through the IT department  A cost center that accrued as administrative overhead (G&A)  The department was funded at 75 % of Cisco’s revenues  Cisco took steps to align the objectives of the IT department with the strategic goals of the company  e-business initiatives were all evaluated on the basis of :  Cost reduction.

it becomes more complex  Current option available is some sort of centralized organization that focuses on innovation .Q2)Do you think Cisco should centralize any aspect of the innovation process? Which of the three possibilities above seems most appropriate (or can you suggest a different one)? Why? How would you define the specific charter of the new organization?  Up to some extent it is advisable  Decentralization has proved to be successful but its not perfect  As the company grows.

Cisco executives are tossing around at least three possibilities:  A Technology Research and Training Team centralized :  “Think-tank” that studies emerging technologies  A “Venture Engineering Team”:  Centralized technology research and implementation team  An Internal Venture Capital Group :  Centralized technology business analysis and funding team  According to me the first option is the best as  Technology research and training team help in developing as well as discovering new Innovations which is ultimately beneficial to CISCO .  At a conceptual level.Contd.

.Contd.  There are any number of ways in which the charter of this new organization could be configured.  What specific activities would it be responsible for?  Who would staff it?  How would it be funded?  How would it be evaluated?  Can it be configured in such a way that efficiencies and elusive “white space” opportunities are captured without destroying the innovative spirit at Cisco or its decentralized (Internet-like?) culture?  Losing either could outweigh any benefits of centralization.

is developing protocols and platforms that will simplify this process and obviate the need for (painful.Q3)Can Cisco measures its innovative efforts? Tie compensation to these efforts? If so. Cisco. brute-force) custom solutions. Cisco has automated the purchasing process for its largest customers  To extend this functionality to far more customers. . how?  Cisco’s efforts in the area of standardized B2B commerce platforms  In the past. in conjunction with an industry consortium known as RosettaNet.

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