Working Smarter:
W ki S      t
Why we need to be better than ever
Nitin Kawale
President/CEO Cisco C
P id t/CEO – Ci     Canada
                        d
December 2011




© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   1
The future is NOW
                           But are you ready?



© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   2
The way we work, where and when its done, and by who,
has fundamentally changed
h f d       t ll h      d

                                                                                              Social        • Transparency
              • Increasing diversity in the
                                                                                                            • Immediate, open information
                workforce                                          Multigenerational     Collaboration        sharing
              • Skilled employees nearing                          Aging, Millennial   Social Communities   • Federated command & control
                transition
                                                                                           & Networks       • Non-employee workers




                                                           Expectations                              Knowledge            • Insufficient talent and
  • Technology
                                                                                                                            apprenticeship in the
  • Generational                                           Time, Style,                           Transfer, Losses,         leadership pipeline
  • W k / life balance
    Work lif b l                                           Place,
                                                           Place, Tools                              Retirements          • Competition for talent




                                                                       Mobility           Workplaces        • Workforce demands
                                  • Personalization                                                           & expectations
                                  • Multiple Devices                  Anywhere,          Configurable,      • Significant ecological footprint
                                                                       Anytime          Remote Centers      • Under-utilized




© 2010 Cisco and/or its affiliates. All rights reserved.                                                                           Cisco Confidential   3
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   4
Who are
                     The Next Generations?



© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   5
Students                                                Employees
   Age
   A 18 t 24
        to                                                 Age
                                                           A 24 t 29
                                                                to
   Surveyed 1,441 from around the                          Surveyed 1,412 from around the
   world                                                   world
   Countries: United States, Canada,                       Same 14 countries
   Mexico, Brazil, United Kingdom,
   France, Spain, Germany, Italy,                          College graduate or higher
   Russia India China Japan and
   Russia, India, China, Japan,                            Employed full time in non-IT role
   Australia
                                                           Works for organization that employs
   Statistical accuracy of 95%                             at least 10 people worldwide
   Even distribution of completes by                       Even distribution of completes by
   gender                                                  gender




© 2010 Cisco and/or its affiliates. All rights reserved.                                 Cisco Confidential   6
Laptops are th primary
                                                           L t          the i
                                                           way of getting information –
                                                           not TV, radio or print
                                                           Most access Facebook
                                                           at least once a day
                                                           Seven in 10 employees
                                                           Facebook “friend”
                                                           managers and/or
                                                           co-workers
                                                                 k
                                                           Four in 10 students are
                                                           typically distracted or
                                                           interrupted by some type
                                                           of social media 3 or
                                                           more times per hour
                                                                        p

© 2010 Cisco and/or its affiliates. All rights reserved.                        Cisco Confidential   7
A thi d of respondents say
                                                             third f         d t
                                                           the Internet is as important
                                                           as water, food, air and
                                                           shelter
                                                           Nearly half of remainder
                                                           consider the Internet to be
                                                           “close” in importance to
                                                           these
                                                           62% could NOT li
                                                                     ld       live
                                                           without the Internet – an
                                                           integral part of their lives
                                                           64% of students prefer
                                                           Internet access vs. a car


© 2010 Cisco and/or its affiliates. All rights reserved.                           Cisco Confidential   8
Workplace Challenges
                         g
                                                           in Canada
                                                           i C    d


© 2010 Cisco and/or its affiliates. All rights reserved.               Cisco Confidential   9
"For too long, we as a country depended on a lower dollar,
we used it as a crutch. We've got to get over that, and live
with a dollar at par, or close to it, and find more innovative
ways to do things."
- Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont.


"Canada's recovery i progressing, b t it i relying h
"C   d '             is         i   but is l i heavilyil
on sweat and toil, and not on brains and innovation."
- Douglas Porter, Bank of Montreal economist




© 2010 Cisco and/or its affiliates. All rights reserved.                 Cisco Confidential   10
• Declining productivity means we’re missing opportunities
            Productivity investment per Canadian worker is 60% of US levels
            14th among OECD nations for innovation performance and productivity

• Canada’s capacity for innovation and ability to absorb
       and deploy technology ranked 18th in the world
• Canada labour productivity growth is declining:
            1.9%
            1 9% annual average each year during the 1990s
            0.7% annual average from 2000-2009

• Canada needs 4X current rate of productivity
                                             y
       and sustain it for 15 years to close to Canada-US gap




© 2010 Cisco and/or its affiliates. All rights reserved.                      Cisco Confidential   11
100%


                                                           Standard of Living
                                   5%                      Doubles in 14 Years
    75%


                                                                    Standard of Living
    50%
                                                             3%     Doubles in 24 Years

                                                                                 Standard of Living
    25%
                                                                          1%     Doubles in 72 Years


                  0                              9           18    27     36     45       54   63                72
                   Source: Net Impact Study                             Years
© 2010 Cisco and/or its affiliates. All rights reserved.                                            Cisco Confidential   12
We N d to Collaborate
               W Need t C ll b t
                   in Order to Accelerate


© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   13
External sources of ideas and innovation
                                                           Business partners

                                                                 Customers

                                                                Consultants

                                                                Competitors
                                                                C    tit

                          Associations, trade shows, etc.

                                                                  Academia

                                                                           0%   5%   10%   15%   20%   25%   30%   35%   40%


                  Internal sources of ideas and innovation
                        Employees (general population)

                                                  Sales or service units

                                                               Internal R&D

                                                                           0%   5%   10%   15%   20%   25%   30%   35%   40%

© 2010 Cisco and/or its affiliates. All rights reserved.                                                                  Cisco Confidential   14
How                                             Who We      When we   Where     What tools
          we work                                          Work With    work     we work    we use




               Collaboration is more critical than ever



© 2010 Cisco and/or its affiliates. All rights reserved.                                      Cisco Confidential   15
• 70% use social media

• C
  Canadians among the b i
      di           h busiest users
       of social media
• LinkedIn has more than 2 million
       Canadian members
• 16 million Canadians on Facebook

• 47% use Twitter

• 58% of Canadians say they have
       blogged
• 61% of businesses track what’s being
       said about them online

© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   16
Traditionalist
     T diti    li t                                               Boomer
                                                                  B                   Generation X
                                                                                      G     ti            Generation Y
                                                                                                          G     ti

• Conformity                                                • Personal and social   • Free agency and   • Hope about future
                                                              expression
                                                                     i                independence
                                                                                      i d    d
• Stability                                                                                             • Collaboration
                                                            • Idealism              • Street-smarts
• Upward mobility                                                                                       • Social activism
                                                            • Health and wellness   • Friendship
• Security                                                                                              • Tolerance for diversity
                                                            • Youth                 • Cynicism
• Economic success                                                                                      • Family centricity

     Born 1928–1945                                          Born 1946–1964/5         Born 1965–1980      Born 1980–2000

                                                                      Four generations co-existing
                                                                                       co-

 © 2010 Cisco and/or its affiliates. All rights reserved.                                                            Cisco Confidential   17
• Highly virtual – 85% of Cisco
 employees regularly work
 from home or on the road
                                                                                      Conferencing
                                                                                         62k users
                                                                                       533m mins/qtr.
                                                                                      62% growth Y/Y

                                                                  Wikis                                      TelePresence
                                                                378k pages                                       802 units
                                                               561k edits/qtr.                              84.5k meetings/qtr.
                                                              58% growth Y/Y                                 62% growth Y/Y

                                                                                     Growth in
                                                                                    Collaboration
                                                                                         IWE
                                                                                     Services is
                                                                                     84 Communities
                                                                                 Exploding!
                                                                                      1.2m hits/qtr.
                                                                                     95% growth Y/Y
                                                             Video                                              Instant
                                                                                                                I t t messaging
                                                                                                                            i
                                                     25k videos                                                       103k users
                                                   111k views/qtr.                                                  14m IM chats/qtr.
                                                  38% growth Y/Y                                                    65% growth Y/Y




                                                                                                   Directory 3.0
                                                                            Forums
                                                                                                    27k Expertise
                                                                           6k threads               profiles 4 9m
                                                                                                             4.9m
                                                                        22k messages/qtr.           searches/qtr.
                                                                                                   13% growth Y/Y


  © 2010 Cisco and/or its affiliates. All rights reserved.                                                                              Cisco Confidential   18
GSX                                Virtual Global Annual Sales Conference
                                                           • 20,000 global participants
                                                               - 90 countries, 270 cities
                                                           • 211 million air miles avoided
                                                           • 88 hrs of consecutive events
                                                               - Streaming video
                                                               - Integration of 7 technologies
                                                           • 90% cost savings
                                                           • Highly engaged employee
                                                             experience
                                                               p




© 2010 Cisco and/or its affiliates. All rights reserved.                                         Cisco Confidential   19
Cisco Benefits: $691M* Net
                                                      (* Based on $772 million gross contribution minus costs of $82 million)

                                                                                  $239M
                                               • Reduce real estate
                                               • Avoid travel
                                                                                   Reduce
                                                                                  costs to
• Create new
                                                              $61M                improve
                                                                                  i                     $380M                   •   Reduce travel
                                                                                 profitability
  revenue streams                                                                                                               •   Reduce commuting
• Scale expertise                                           Transform                                                           •   Find people faster
                                                                                                        Save time
• Increase customer                                        business to
                                                                                                       to increase              •   Find information faster
                                                             increase                                   efficiency
                                                                                                         ffi i
  intimacy
  i ti
                                                              growth
• Enhance executive
  communication                                                                    Speed
                                                                                 process to
                                                                                  increase
                                                                                    agility
                                                                                      ilit             • Shorten sales cycle
                                                                                                       • Speed time to market
                                                                                                       • Reduce decision-making delays
                                                                                   $92M



© 2010 Cisco and/or its affiliates. All rights reserved.                                                                                       Cisco Confidential   20
Cost                                              Employee      Customer    Competitive
        Reduction                                          Productivity   Intimacy   Differentiation   Innovation




© 2010 Cisco and/or its affiliates. All rights reserved.                                                  Cisco Confidential   21
• Start NOW

• U d
  Understand your employee b
           d         l     base
• Figure out social media

• Think distributed

• More with less

• Empower and engage

• Accommodate




© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   22
The Road Ahead
• Knowledge work will be a key occupation

• T l t is everywhere and anywhere and must b connected
  Talent i       h      d     h      d    t be      t d
• We live in a collaborative world of social media users – that’s
       changing work-life fundamentals
• Enrich your ability to collaborate
            Your business future depends on it
            It delivers measurable value
            It drives success – through empowering employees, customers and partners.
            Allows you to draw the innovation and talent from your organization
            It will be the difference maker




© 2010 Cisco and/or its affiliates. All rights reserved.                                Cisco Confidential   23
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   24
© 2010 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential   25

Working Smarter: Why We Need to be Better Than Ever

  • 1.
    Working Smarter: W kiS t Why we need to be better than ever Nitin Kawale President/CEO Cisco C P id t/CEO – Ci Canada d December 2011 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  • 2.
    The future isNOW But are you ready? © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • 3.
    The way wework, where and when its done, and by who, has fundamentally changed h f d t ll h d Social • Transparency • Increasing diversity in the • Immediate, open information workforce Multigenerational Collaboration sharing • Skilled employees nearing Aging, Millennial Social Communities • Federated command & control transition & Networks • Non-employee workers Expectations Knowledge • Insufficient talent and • Technology apprenticeship in the • Generational Time, Style, Transfer, Losses, leadership pipeline • W k / life balance Work lif b l Place, Place, Tools Retirements • Competition for talent Mobility Workplaces • Workforce demands • Personalization & expectations • Multiple Devices Anywhere, Configurable, • Significant ecological footprint Anytime Remote Centers • Under-utilized © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  • 4.
    © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 4
  • 5.
    Who are The Next Generations? © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  • 6.
    Students Employees Age A 18 t 24 to Age A 24 t 29 to Surveyed 1,441 from around the Surveyed 1,412 from around the world world Countries: United States, Canada, Same 14 countries Mexico, Brazil, United Kingdom, France, Spain, Germany, Italy, College graduate or higher Russia India China Japan and Russia, India, China, Japan, Employed full time in non-IT role Australia Works for organization that employs Statistical accuracy of 95% at least 10 people worldwide Even distribution of completes by Even distribution of completes by gender gender © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
  • 7.
    Laptops are thprimary L t the i way of getting information – not TV, radio or print Most access Facebook at least once a day Seven in 10 employees Facebook “friend” managers and/or co-workers k Four in 10 students are typically distracted or interrupted by some type of social media 3 or more times per hour p © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
  • 8.
    A thi dof respondents say third f d t the Internet is as important as water, food, air and shelter Nearly half of remainder consider the Internet to be “close” in importance to these 62% could NOT li ld live without the Internet – an integral part of their lives 64% of students prefer Internet access vs. a car © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • 9.
    Workplace Challenges g in Canada i C d © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
  • 10.
    "For too long,we as a country depended on a lower dollar, we used it as a crutch. We've got to get over that, and live with a dollar at par, or close to it, and find more innovative ways to do things." - Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont. "Canada's recovery i progressing, b t it i relying h "C d ' is i but is l i heavilyil on sweat and toil, and not on brains and innovation." - Douglas Porter, Bank of Montreal economist © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
  • 11.
    • Declining productivitymeans we’re missing opportunities Productivity investment per Canadian worker is 60% of US levels 14th among OECD nations for innovation performance and productivity • Canada’s capacity for innovation and ability to absorb and deploy technology ranked 18th in the world • Canada labour productivity growth is declining: 1.9% 1 9% annual average each year during the 1990s 0.7% annual average from 2000-2009 • Canada needs 4X current rate of productivity y and sustain it for 15 years to close to Canada-US gap © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
  • 12.
    100% Standard of Living 5% Doubles in 14 Years 75% Standard of Living 50% 3% Doubles in 24 Years Standard of Living 25% 1% Doubles in 72 Years 0 9 18 27 36 45 54 63 72 Source: Net Impact Study Years © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
  • 13.
    We N dto Collaborate W Need t C ll b t in Order to Accelerate © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
  • 14.
    External sources ofideas and innovation Business partners Customers Consultants Competitors C tit Associations, trade shows, etc. Academia 0% 5% 10% 15% 20% 25% 30% 35% 40% Internal sources of ideas and innovation Employees (general population) Sales or service units Internal R&D 0% 5% 10% 15% 20% 25% 30% 35% 40% © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
  • 15.
    How Who We When we Where What tools we work Work With work we work we use Collaboration is more critical than ever © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
  • 16.
    • 70% usesocial media • C Canadians among the b i di h busiest users of social media • LinkedIn has more than 2 million Canadian members • 16 million Canadians on Facebook • 47% use Twitter • 58% of Canadians say they have blogged • 61% of businesses track what’s being said about them online © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
  • 17.
    Traditionalist T diti li t Boomer B Generation X G ti Generation Y G ti • Conformity • Personal and social • Free agency and • Hope about future expression i independence i d d • Stability • Collaboration • Idealism • Street-smarts • Upward mobility • Social activism • Health and wellness • Friendship • Security • Tolerance for diversity • Youth • Cynicism • Economic success • Family centricity Born 1928–1945 Born 1946–1964/5 Born 1965–1980 Born 1980–2000 Four generations co-existing co- © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
  • 18.
    • Highly virtual– 85% of Cisco employees regularly work from home or on the road Conferencing 62k users 533m mins/qtr. 62% growth Y/Y Wikis TelePresence 378k pages 802 units 561k edits/qtr. 84.5k meetings/qtr. 58% growth Y/Y 62% growth Y/Y Growth in Collaboration IWE Services is 84 Communities Exploding! 1.2m hits/qtr. 95% growth Y/Y Video Instant I t t messaging i 25k videos 103k users 111k views/qtr. 14m IM chats/qtr. 38% growth Y/Y 65% growth Y/Y Directory 3.0 Forums 27k Expertise 6k threads profiles 4 9m 4.9m 22k messages/qtr. searches/qtr. 13% growth Y/Y © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
  • 19.
    GSX Virtual Global Annual Sales Conference • 20,000 global participants - 90 countries, 270 cities • 211 million air miles avoided • 88 hrs of consecutive events - Streaming video - Integration of 7 technologies • 90% cost savings • Highly engaged employee experience p © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
  • 20.
    Cisco Benefits: $691M*Net (* Based on $772 million gross contribution minus costs of $82 million) $239M • Reduce real estate • Avoid travel Reduce costs to • Create new $61M improve i $380M • Reduce travel profitability revenue streams • Reduce commuting • Scale expertise Transform • Find people faster Save time • Increase customer business to to increase • Find information faster increase efficiency ffi i intimacy i ti growth • Enhance executive communication Speed process to increase agility ilit • Shorten sales cycle • Speed time to market • Reduce decision-making delays $92M © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
  • 21.
    Cost Employee Customer Competitive Reduction Productivity Intimacy Differentiation Innovation © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
  • 22.
    • Start NOW •U d Understand your employee b d l base • Figure out social media • Think distributed • More with less • Empower and engage • Accommodate © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
  • 23.
    The Road Ahead •Knowledge work will be a key occupation • T l t is everywhere and anywhere and must b connected Talent i h d h d t be t d • We live in a collaborative world of social media users – that’s changing work-life fundamentals • Enrich your ability to collaborate Your business future depends on it It delivers measurable value It drives success – through empowering employees, customers and partners. Allows you to draw the innovation and talent from your organization It will be the difference maker © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
  • 24.
    © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 24
  • 25.
    © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 25