NEW WORLD, NEW RULES             SURVIVING, LEADING & THRIVING IN OUR NEW WORLD                        Carlos Dominguez   ...
Role                                IC @ F                             OFFRSE OCISCO                            YEA       ...
“                                   ”               SELF-PROCLAIMED           TECH NOWIST   Leveraging the Present        ...
AGENDA                        EXPLORE                        OUR NEW WORLD                                IMPLICATIONS    ...
Agenda     EXPLORE     OUR NEW WORLD    4  Forces    Defining Our New WorldMonday, July 25, 2011
EXPLORE           OUR NEW WORLD            FORCE #1             Rate & Speed of ChangeMonday, July 25, 2011
POLL QUESTION?                               “The World Is Changing at a                                  Comfortable Pace...
SPEED AND PACE OF CHANGE: FACT OR FICTION                               If Facebook were a country it would be the world’s...
PREDICTIONMonday, July 25, 2011                           THAN THE PREVIOUS   25                        MORE CHANGE NEXT 3...
FORCE #2             Social Networking - “Power to the People”Monday, July 25, 2011
Who Was Time Magazine’s                        Person of the Year in 2006?Monday, July 25, 2011
Who Was Time Magazine’s                        Person of the Year in 2010?Monday, July 25, 2011
The Power of WE                              2006        2010Monday, July 25, 2011
Oscar Morales   1 Million People  Against the FARC        12 MILLION PEOPLE IN 120 COUNTRIES PROTESTMonday, July 25, 2011
Egypt                                   Youth Organized                                Leveraging Social MediaMonday, July...
FORCE #3             Contribution & Co-Creation RevolutionMonday, July 25, 2011
17Monday, July 25, 2011
How Many Man                             a) 3 Million        Hours Are Invested   b) 10 Million          In Wikepedia?    ...
Interesting Fact:                          *100 M Hours = The number of hours American spend                          ever...
TYPES                                The Contribution Revolution - “Co-Creation Era”                             New Busin...
Companies Born Into Change - “Crowdsourcing”                                              Facts:                          ...
FORCE #4             Net Generation - “100% Digital, All the TimeMonday, July 25, 2011
1980 -1995 (80 M)                            The New People Come Infected                                 With The New Wor...
EXPLORE             OUR NEW WORLD            SUMMARY              Rate & Speed of Change              Social Networking - ...
Agenda     IMPLICATIONS     ON BUSINESS & LEADERSHIP      CURRENT      ENVIRONMENTMonday, July 25, 2011
What is your current business environment?                        Challenges?Monday, July 25, 2011
CEO                IBM SURVEY OF                        SURVEY          1500 CEOs GLOBALLY                        KEY FIND...
Organizations are experiencing significant upheaval               69%                                                      ...
Organizations are experiencing significant upheaval               69%                                                      ...
Organizations are experiencing significant upheaval               69%                                                      ...
Organizations are experiencing significant upheaval               69%                                                      ...
Expected level of complexity     CEOs agree complexity will only continue to rise              60%                        ...
Expected level of complexity     CEOs agree complexity will only continue to rise              60%                        ...
Todayʼs complexity is only expected to rise,           and more than half of CEOs doubt their ability           to manage ...
A Telecommunications CEO in Brazil predicted       “        The services that account for 80 percent of our revenue today ...
NAME THE 3 EXTERNAL FORCES WHICH WILL HAVE THE                      BIGGEST IMPACT ON YOUR ORGANIZATIONS?Monday, July 25, ...
Agenda   SUGGESTIONS   SURVIVE, LEAD & THRIVEMonday, July 25, 2011
IN10 YEARS                          OVER 40% OF THE                          FORTUNE 500                          WILL NO ...
NEW                        SUCCESS     WHAT DO YOU THINK?                        CRITERIA?Monday, July 25, 2011
POOR CUSTOMER                           SERVICE                         OUT OF SYNC                          CUSTOMER     ...
Female Executive Challenged The Male Dominated Company                             CHALLENGE: Only 16% of its customers ar...
Jim Keyes            Reed Hastings                        CEO of Blockbuster   CEO of NetflixMonday, July 25, 2011
Physical stores   DVDs mailed to you   Internet Video Streaming                                               no late fees...
Cinematch                                 Improve our movie recommendation                                  ratings by 10%...
Bennett S. LeBow          Jeff Bezos                        CEO of Borders            CEO of Amazon.com                   ...
Sergio Marchionne                     Alan Mulally                          CEO of Chrysler                       CEO of F...
COMMON CHARACTERISTICS                        PRODUCT LEADERSHIP      CUSTOMER SERVICE                                    ...
“Tech Nowist”4 STEP PROCESS                              Someone who   EMBRACES CHANGE,                              under...
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGEMonday, Ju...
Change is easy Intellectually                        “Who Likes Change?”                                 But... Very hard ...
“If you had to change your life patterns                        to   avoid death could you do it?”Monday, July 25, 2011
QUESTION?                          WHAT % OF PATIENTS CONFORM TO A HEALTHY                              LIFESTYLE AFTER A ...
20%                        LACK OF URGENCY                        CHANGE CHALLENGE 1Monday, July 25, 2011
Is it easier to change during                        a crisis or during good times?Monday, July 25, 2011
CHANGE             SUMMARY              Lack of urgency              Don’t see it              Familiarity              Wr...
CHANGE           “            IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVES, NOR                                   ...
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
WHAT’S YOUR                        POLICY ON SOCIAL                             MEDIA?Monday, July 25, 2011
GUIDE YOUR EMPLOYEES                            http://wwwin.cisco.com/cisco/ccoe/Monday, July 25, 2011
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
EXAMPLEMonday, July 25, 2011
TIMELINE                        2000 - Kodak vows to lead in digital                        2005 - Kodak ranked #1 in digi...
WHAT HAPPENED?                        Low margins on camera’s / high margin on film                              Crushing ...
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
Arthur C. Clark                        Predicting the future                              in 1964Monday, July 25, 2011
IMAGINE THE FUTURE                        1. Conduct research - hire / buy                        2. Brainstorming session...
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
Experimentation is key:                        Prototype a lot, fail often, and fail earlyMonday, July 25, 2011
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
Monday, July 25, 2011
7                  SUGGESTIONS                   SURVIVE, LEAD & THRIVE                        1. EMBRACE CHANGE          ...
“KILLER APP”                          CollaborationMonday, July 25, 2011
“ A power shift is underway, and a tough                                                                            busine...
“WHY COLLABORATE?”                        The goal of collaboration is not collaboration, but great results.Monday, July 2...
TECHNOLOGY                          FRAMEWORK FOR                             EFFECTIVE                          COLLABORA...
Hunt for Value Across I.C.E. - Cisco Examples                                                          Cross-unit product ...
Thank you.Monday, July 25, 2011
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IT Executive Forum, Cisco LIve 2011

  1. 1. NEW WORLD, NEW RULES SURVIVING, LEADING & THRIVING IN OUR NEW WORLD Carlos Dominguez Cisco Systems Senior Vice President DRIVING BUSINESS EVOLUTION Office of the Chairman and CEO TECH NOWISTMonday, July 25, 2011
  2. 2. Role IC @ F OFFRSE OCISCO YEA 19+ AIRMAN & CEO CHMonday, July 25, 2011
  3. 3. “ ” SELF-PROCLAIMED TECH NOWIST Leveraging the Present Preparing for the FutureMonday, July 25, 2011
  4. 4. AGENDA EXPLORE OUR NEW WORLD IMPLICATIONS ON BUSINESS & LEADERSHIP SUGGESTIONS SURVIVE, LEAD & THRIVEMonday, July 25, 2011
  5. 5. Agenda EXPLORE OUR NEW WORLD 4 Forces Defining Our New WorldMonday, July 25, 2011
  6. 6. EXPLORE OUR NEW WORLD FORCE #1 Rate & Speed of ChangeMonday, July 25, 2011
  7. 7. POLL QUESTION? “The World Is Changing at a Comfortable Pace?”Monday, July 25, 2011
  8. 8. SPEED AND PACE OF CHANGE: FACT OR FICTION If Facebook were a country it would be the world’s third largest and 2 times the size of the U.S. population. 1 in 5 couples meet online; 1 in 5 divorces are blamed on Facebook. More video was uploaded to Youtube in the last 2 months than if had been airing new content 24/7/365.............. Since 1948 More people return home for their cell phone than their wallet Carlos Dominguez is usually confused with Elvis...... not the fat one!Monday, July 25, 2011
  9. 9. PREDICTIONMonday, July 25, 2011 THAN THE PREVIOUS 25 MORE CHANGE NEXT 3 YEARS 9
  10. 10. FORCE #2 Social Networking - “Power to the People”Monday, July 25, 2011
  11. 11. Who Was Time Magazine’s Person of the Year in 2006?Monday, July 25, 2011
  12. 12. Who Was Time Magazine’s Person of the Year in 2010?Monday, July 25, 2011
  13. 13. The Power of WE 2006 2010Monday, July 25, 2011
  14. 14. Oscar Morales 1 Million People Against the FARC 12 MILLION PEOPLE IN 120 COUNTRIES PROTESTMonday, July 25, 2011
  15. 15. Egypt Youth Organized Leveraging Social MediaMonday, July 25, 2011
  16. 16. FORCE #3 Contribution & Co-Creation RevolutionMonday, July 25, 2011
  17. 17. 17Monday, July 25, 2011
  18. 18. How Many Man a) 3 Million Hours Are Invested b) 10 Million In Wikepedia? c) 30 Million d) 100 MillionMonday, July 25, 2011
  19. 19. Interesting Fact: *100 M Hours = The number of hours American spend every weekend watching television......Commercials *Clay Shirky NYU Professor, Writer - Cognitive SurplusMonday, July 25, 2011
  20. 20. TYPES The Contribution Revolution - “Co-Creation Era” New Business Models Emerging - Change Everything Expertise: Software Code: Creative Expression: Opinions & Ratings: Wikipedia Firefox & Linux YouTube, Flickr Zagats Social Connections: Specialized Design & Capital Goods: Facebook, Twitter Connections: Developments: Resource: eBay Craigslist Threadless, Ryz Skype Platforms That Allow Users To ContributeMonday, July 25, 2011
  21. 21. Companies Born Into Change - “Crowdsourcing” Facts: - Founded 2000 - 50 Employees - 30+ M Revenues - Double Digit Growth - 500,000 Community Members - 120,000 Designers - 10,000 orders / day - 288,753 Likes on Facebook - 1.6 M Twitter Followers - 30 Avg. Age Employees “Crowdsourcing“…a focus group on a grand scale 21Monday, July 25, 2011
  22. 22. FORCE #4 Net Generation - “100% Digital, All the TimeMonday, July 25, 2011
  23. 23. 1980 -1995 (80 M) The New People Come Infected With The New World. NEW WORKERMonday, July 25, 2011
  24. 24. EXPLORE OUR NEW WORLD SUMMARY Rate & Speed of Change Social Networking - “Power of the People” Contribution & Co-Creation Revolution Net Generation - 100% Digital, All the TimeMonday, July 25, 2011
  25. 25. Agenda IMPLICATIONS ON BUSINESS & LEADERSHIP CURRENT ENVIRONMENTMonday, July 25, 2011
  26. 26. What is your current business environment? Challenges?Monday, July 25, 2011
  27. 27. CEO IBM SURVEY OF SURVEY 1500 CEOs GLOBALLY KEY FINDINGS?Monday, July 25, 2011
  28. 28. Organizations are experiencing significant upheaval 69% More volatile Deeper/faster cycles, more risk 65% More uncertain Less predictable 60% More complex Multifaceted, interconnected 53% Structurally different Sustained change Source: IBM 2010 Global CEO Study To a large/very large extent © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 28 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  29. 29. Organizations are experiencing significant upheaval 69% More volatile Deeper/faster cycles, more risk 65% More uncertain Less predictable 60% More complex Multifaceted, interconnected 53% Structurally different Sustained change Source: IBM 2010 Global CEO Study To a large/very large extent © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 29 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  30. 30. Organizations are experiencing significant upheaval 69% More volatile Deeper/faster cycles, more risk 65% More uncertain Less predictable 60% More complex Multifaceted, interconnected 53% Structurally different Sustained change Source: IBM 2010 Global CEO Study To a large/very large extent © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 30 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  31. 31. Organizations are experiencing significant upheaval 69% More volatile Deeper/faster cycles, more risk 65% More uncertain Less predictable 60% More complex Multifaceted, interconnected 53% Structurally different Sustained change Source: IBM 2010 Global CEO Study To a large/very large extent © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 31 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  32. 32. Expected level of complexity CEOs agree complexity will only continue to rise 60% Currently experiencing high/very high level of complexity 79% Source: IBM 2010 Global CEO Study © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 32 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  33. 33. Expected level of complexity CEOs agree complexity will only continue to rise 60% Currently experiencing high/very high level of complexity Expect high/very high 79% level of complexity over five years Source: IBM 2010 Global CEO Study © 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36 33 © 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMonday, July 25, 2011
  34. 34. Todayʼs complexity is only expected to rise, and more than half of CEOs doubt their ability to manage it. Source: IBM 2010 Global CEO StudyMonday, July 25, 2011
  35. 35. A Telecommunications CEO in Brazil predicted “ The services that account for 80 percent of our revenue today ” will only be our second largest source of revenue in five years. With few expectations, CEOs expect continued disruption in one form or another. Source: IBM 2010 Global CEO StudyMonday, July 25, 2011
  36. 36. NAME THE 3 EXTERNAL FORCES WHICH WILL HAVE THE BIGGEST IMPACT ON YOUR ORGANIZATIONS?Monday, July 25, 2011
  37. 37. Agenda SUGGESTIONS SURVIVE, LEAD & THRIVEMonday, July 25, 2011
  38. 38. IN10 YEARS OVER 40% OF THE FORTUNE 500 WILL NO LONGER BE HERE* *Babson Olin School of Business Advertisement, Fast Company April 2011, page 121.Monday, July 25, 2011
  39. 39. NEW SUCCESS WHAT DO YOU THINK? CRITERIA?Monday, July 25, 2011
  40. 40. POOR CUSTOMER SERVICE OUT OF SYNC CUSTOMER DIDN’T VALUE EMPLOYEES LACK INNOVATION Philip Schoonover Brian Dunn CEO of Circuit City CEO of Best BuyMonday, July 25, 2011
  41. 41. Female Executive Challenged The Male Dominated Company CHALLENGE: Only 16% of its customers are women What it’s doing: tapping its female employees for ideas on how to sell to women Set up “Women’s Leadership Forums” - Groups of female workers who meet regularly ‣ increase appliance sales by re-designing showrooms to resemble kitchens ‣ new focus on women for smart phone sales ‣ market to moms who buy video games for kids ‣ Best Buy Mobile - mall-based, gadget stores to access female shoppers in malls ‣ focused on women in Home Theater salesMonday, July 25, 2011
  42. 42. Jim Keyes Reed Hastings CEO of Blockbuster CEO of NetflixMonday, July 25, 2011
  43. 43. Physical stores DVDs mailed to you Internet Video Streaming no late fees (and DVDs) Good partnering! Securing licensing deals with content producers Reed HastingsMonday, July 25, 2011
  44. 44. Cinematch Improve our movie recommendation ratings by 10% and win $1 million 85% Crowd source Innovation 95% 35,000+ contestants, 180 countries IRONMAN Participate & Contribute After ultrarich inventor and weapons maker Tony Winners: 3 rocket scientists from AT&T Labs in NJ Stark (Robert Downey Jr.) escapes from kidnappers using makeshift power armor, he turns his invention to good by using it to fight crime. But when he must (8.4% improvement rate) face the evil Iron monger, his skills are stretched to the limit. Based on the Marvel comic, this captivating superhero tale from director John Favreau co-stars They’ve sinced gotten to 9.6% Gwyneth Paltrow, Jeff Bridges and Terrence Howard.Monday, July 25, 2011
  45. 45. Bennett S. LeBow Jeff Bezos CEO of Borders CEO of Amazon.com Predict the future Leverage AssetsMonday, July 25, 2011
  46. 46. Sergio Marchionne Alan Mulally CEO of Chrysler CEO of Ford Bailout No bailout - Increase in share priceMonday, July 25, 2011
  47. 47. COMMON CHARACTERISTICS PRODUCT LEADERSHIP CUSTOMER SERVICE NIMBLE OPER ATIONAL EXCELLENCE ORGANIZATIONS HARNESS ASSETS EMPOWERMENT ACROSS ORGANIZATION &VALUE EMPLOYEES FOCUS ON INNOVATION CUSTOMER EXPERIMENT CONTRIBUTION CONSTANTLY LEVERAGE & FEEDBACK DIVERSITY LEVERAGE CULTURE OF TECHNOLOGY REWARDS CHANGE IMAGINE THE FUTURE CREATIVITYMonday, July 25, 2011
  48. 48. “Tech Nowist”4 STEP PROCESS Someone who EMBRACES CHANGE, understands what technology is available, EXPERIMENTS with it, LEARNS from the experiments & 4 LEVERAGES it for a competitive advantageMonday, July 25, 2011
  49. 49. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGEMonday, July 25, 2011
  50. 50. Change is easy Intellectually “Who Likes Change?” But... Very hard emotionally!Monday, July 25, 2011
  51. 51. “If you had to change your life patterns to avoid death could you do it?”Monday, July 25, 2011
  52. 52. QUESTION? WHAT % OF PATIENTS CONFORM TO A HEALTHY LIFESTYLE AFTER A HEART ATTACK? A)10% B)20% C)30% D)40%Monday, July 25, 2011
  53. 53. 20% LACK OF URGENCY CHANGE CHALLENGE 1Monday, July 25, 2011
  54. 54. Is it easier to change during a crisis or during good times?Monday, July 25, 2011
  55. 55. CHANGE SUMMARY Lack of urgency Don’t see it Familiarity Wrong perceptionMonday, July 25, 2011
  56. 56. CHANGE “ IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVES, NOR ” THE MOST INTELLIGENT, BUT THE ONE THAT IS MOST RESPONSIVE TO CHANGE -CHARLES DARWINMonday, July 25, 2011 ATTENTION
  57. 57. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIAMonday, July 25, 2011
  58. 58. WHAT’S YOUR POLICY ON SOCIAL MEDIA?Monday, July 25, 2011
  59. 59. GUIDE YOUR EMPLOYEES http://wwwin.cisco.com/cisco/ccoe/Monday, July 25, 2011
  60. 60. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATIONMonday, July 25, 2011
  61. 61. EXAMPLEMonday, July 25, 2011
  62. 62. TIMELINE 2000 - Kodak vows to lead in digital 2005 - Kodak ranked #1 in digital camera sales - Surged 40% to $5.7B - Film fell 18%Monday, July 25, 2011
  63. 63. WHAT HAPPENED? Low margins on camera’s / high margin on film Crushing profit disappointmentMonday, July 25, 2011
  64. 64. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTUREMonday, July 25, 2011
  65. 65. Arthur C. Clark Predicting the future in 1964Monday, July 25, 2011
  66. 66. IMAGINE THE FUTURE 1. Conduct research - hire / buy 2. Brainstorming sessions - inside and outside 3. Listen, listen, listen 4. Dialogue with cutting edge thinkers 5. Understand technology - what’s available and what’s coming 6. Attend conferences 7. Constantly ask - what if? 8. Be curious 9. Be enthusiastic 10. Take time to think..... quietlyMonday, July 25, 2011
  67. 67. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROIMonday, July 25, 2011
  68. 68. Experimentation is key: Prototype a lot, fail often, and fail earlyMonday, July 25, 2011
  69. 69. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROI 6. LEVERAGE TECHNOLOGYMonday, July 25, 2011
  70. 70. Monday, July 25, 2011
  71. 71. 7 SUGGESTIONS SURVIVE, LEAD & THRIVE 1. EMBRACE CHANGE 2. EMBRACE SOCIAL MEDIA 3. FOCUS ON DISRUPTIVE INNOVATION 4. IMAGINE THE FUTURE 5. EXPERIMENT VS ROI 6. LEVERAGE TECHNOLOGY 7. IMPLEMENT EFFECTIVE COLLABORATIONMonday, July 25, 2011
  72. 72. “KILLER APP” CollaborationMonday, July 25, 2011
  73. 73. “ A power shift is underway, and a tough business rule is emerging. Harness the new collaboration or perish. Those that fail to grasp this will find themselves ever more isolated. ” Don Tapscott Author of Wikinomics 14184_11_2007 © 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 73Monday, July 25, 2011
  74. 74. “WHY COLLABORATE?” The goal of collaboration is not collaboration, but great results.Monday, July 25, 2011
  75. 75. TECHNOLOGY FRAMEWORK FOR EFFECTIVE COLLABORATION PROCESS CULTUREMonday, July 25, 2011
  76. 76. Hunt for Value Across I.C.E. - Cisco Examples Cross-unit product innovation New business creations INNOVATION PRODUCT - TELEPRESENCE / WEBEX INTEGRATION NEW BUSINESS -IPRIZE - CROWDSOURCING Cross-selling, better coordination Better customer service by coordination CUSTOMERS CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICE CROSS SELLING - DATA CENTER - PARTNER COMMUNITY Costs/investments savings by coordinating/sharing Better decisions by getting input EFFICIENCY WEBEX MORTEN HANSEN - “COLLABORATION”Monday, July 25, 2011
  77. 77. Thank you.Monday, July 25, 2011
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