Introduction• 1984 - Computer scientists, Len Bosack and Sandy Lerner, from Stanford University, found Cisco Systems. They invented technology to link their disparate computer systems together.• 1988 - John Morgridge joins Cisco as President and CEO.• 1989 – Revenues reach $27 million.• 1990 – Revenues reach $69 million. Cisco goes public on February 16, listed as “CSCO” on the NASDAQ• Cisco Systems, Inc. (NASDAQ: CSCO) is an American multinational corporation headquartered in San Jose, California, United States, that designs, manufactures, and sells networking equipments.• Cisco has more than 60,000 employees and annual revenue of US$ 40.0 billion as of 2010.• The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ 100 Index and the Russell 1000 Growth Stock Index
Cisco’s Vision Changing the way they work, live, play, and learn. Cisco’s Mission To shape the future of the Internet by creating unprecedented value and opportunity for customers, employees, investors, and partners.
Cisco Global Facts Incorporated on December 10, 1984 in California Went public on February 16, 1990. NASDAQ NM: CSCO (Common Stock) Q1 FY12 Employee Count: 63000+ John T. Chambers is the Chairman and Chief Executive Officer, Cisco FY’11 Revenue: $43.2 billion
Business Segments Routers (20.3% of total revenue) Switches (41.9% of total revenue) Advanced Technologies (29.7% of total revenue) IP Telephony Home Networking Wireless Storage Networking Security Optical NetworkingServices (8.1% of total revenue)
Corporate Finance Connect buy-side and sell-side financial firms and corporate clients with Cisco collaboration tools and partner applications. Financial Markets Cisco is addressing the electronic trading and new regulatory requirement changes by investing in a high- performance trading solution portfolio. It helps enable low-latency, high-speed automated trading, as well as the next-generation human trader platform. Financial Services Industry-Wide Cisco provides business solutions that respond to issues common to all segments of financial services. These solutions include architectures and Cisco-validated designs specifically tailored for the industry. Insurance Cisco helps non-life, life, and health insurance firms connect with their customers, agents/brokers, and partners by optimizing business processes, improving collaboration, and enabling anytime, any device access for policy sales, renewals, claims, and services. Payments Cisco provides an integrated platform that financial institutions can employ to transform their payment environments. Retail Banking Through the Collaborative Customer Experience solution portfolio, Cisco is improving the customer experience in retail banking by helping banks integrate their delivery channels, streamline operations, accelerate product and service delivery, and match experts with consumers needs in real time.
There are about 71000 employees working in Cisco across the globe Cisco has strong culture of valuing employees Collaboration lies at the heart of Cisco people strategy which focuses on five key areas: • Working together: Embedding a collaborative working culture • A safe and healthy work environment: Focusing on people’s safety and promoting their physical and mental well being • An open and diverse culture: Engaging employees and promoting diversity
• Employee opportunities: Realizing the potential of the employees through development and training opportunities • Rewarding people: Rewarding employees through competitive, performance-based compensation and benefits Onsite child care Cisco virtual office Cisco’s condition management
Roadways Improve utilization, reduce traffic, and lower operating costs. Cisco Intelligent Roadways increases operational efficiency, improves traffic ﬂow, and enhances security by providing a highly responsive, service-centric environment based on a ﬂexible, scalable, intelligent information network. Cisco Intelligent Roadways consists of a secure uniﬁed intelligent network and application-enabling network services designed to securely connect intelligent transportation systems. Rail Transport Enhance customer service and create intelligent terminals, trains, and buses.• Connected Signaling Upgrade trackside transmission networks to a highly resilient IP infrastructure to enable better utilization and lower operational costs.• Connected Stations Turn stations into smart buildings that improve the passenger experience and increase operational efficiency
Airports Improve security and operations while streamlining collaboration and enhancing operations. Cisco AirNet Wireless LAN solution, using Cisco Borderless Network Architecture to protect and integrate with existing airport IT investment Better co-ordination of operations and workflow management across the apron Process streamlining and business automation, through fast provisioning of IT services Easier to collect statistics and measure performance With the new wireless solution, planes now spend more time in the air and less time on the tarmac.
Cisco India With sales and marketing operations spread across key cities in India and a software development centre in Bangalore, Cisco leads the networking market in core technologies of routing and switching, as well as WLAN and network security.
Cisco India Facts Cisco India commenced operations in 1995 Cisco has 7 Sales Offices in the region - New Delhi, Mumbai, Bangalore, Chennai, Pune, Kolkata and Hyderabad. India headcount is 7800+ including R&D, sales and business support staff Cisco Global Development Center is in Bangalore, this is the largest outside of the US i. Joint Development Centers with Wipro Technologies and Infosys Technologies in Bangalore; HCL Technologies in Chennai and Zensar Technologies in Pune
Cisco’s go-to-Market strategy isthrough partners 2000+ Partners 10 Gold Certified Partners - Accenture Services Pvt Ltd, British Telecom India Pvt ltd, Bharti Airtel Services Ltd, Dimension Data India Ltd, HCL Comnet , HCL Infosystems Ltd, IBM, Orange Business Services, Wipro and TCS 9 Silver Certified Partners - Velocis (formerly Integrix), Proactive, Locuz, PC Solutions , Nirmal Datacomm, SK International, Allied Digital Services Ltd, Netplace Technologies Pvt Ltd and Central Data Systems P.Ltd 4 Distributors- Ingram Micro, Redington, Compuage and Comstor Support and Service - Extensive support system for customers with 18 logistics centers (premium depots). Besides that, Cisco is the only vendor to have a support program called ARNBD (advance replacement next business day) for its resellers Cisco Capital was launched in 2005 to offer flexible leasing and financial services to customers and partners Currently, there are 194 Active Cisco Networking Academies across 24 states &
India Market Share Leadership Core Technologies Router: 57.4% Switch: 61.2% Total LAN: 60% (CY Q311, IDC LAN Tracker, December 2011) Advanced Technologies WLAN: 28.2% (CY Q311, IDC, January 2012) Security: 35.2%(CY Q3’11,Frost & Sullivan, January 2012) Enterprise Telephony: 28.1%(CY Q311, Frost & Sullivan, January 2012) IP PBX: 43%(CY Q311, Frost & Sullivan, January 2012)
Questions –case study Describe Cisco’s use of the internet to build competitive advantage? How can a large company established company use the internet as a strategic weapon?