Working Smarter: Why We Need to be Better Than Ever

Working Smarter:W ki S tWhy we need to be better than everNitin KawalePresident/CEO Cisco CP id t/CEO – Ci Canada dDecember 2011© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

The way we work, where and when its done, and by who,has fundamentally changedh 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

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

"For too long, we as a country depended on a lower dollar,we used it as a crutch. Weve got to get over that, and livewith a dollar at par, or close to it, and find more innovativeways to do things."- Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont."Canadas recovery i progressing, b t it i relying h"C d is i but is l i heavilyilon 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

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

• 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

• 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

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Working Smarter: Why We Need to be Better Than Ever

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