OEM CISCO presentation

© 2009 IBM Corporation
SALES TRANSACTION SUPPORTSALES TRANSACTION SUPPORT
CISCO OEM ORDERING TEAMCISCO OEM ORDERING TEAM

Agenda
 Cisco History
 IBM & Cisco Alliance
 Supported Countries
 STS OEM Cisco Ordering Team
 Cisco Products
 Other Suppliers
 Types of Orders
 Discounts Applied
 Cisco Programs
 Systems and Tools
 Shopping Methods
 Cisco Maintenance
 Cases
 Scorecards
 E2E Process
 Questions

Cisco History
 Cisco Systems, Inc. multinational corporation, headquartered in San Jose, California that
designs and sells consumer electronics, networking, voice, and communications technology
and services. Due to lower-than-expected profit in 2011, Cisco was forced to reduce annual
expenses by $1 billion. The company cut around 3,000 employees with an early-retirement
program who accepted buyout and planned to eliminate as many as 10,000 jobs (around 14
percent of the 73,400 total employees before curtailment).
 Cisco Systems, Inc. was founded in 1984 by a married couple Len Bosack and Sandy
Lerner. Cisco’s name is derived from the city San Francisco. The logo of the company
symbolizes the Golden Gate Bridge.
 The Chairman of the Board and CEO of Cisco Systems, Inc. is John T. Chambers. He
joined Cisco in 1991 as senior vice president.

IBM & Cisco Global Alliance
 Why Cisco & IBM?
 IBM & Cisco Global Alliance: the IBM and Cisco alliance helps the customers maximize
business results by uniting IBM's vast industry, business process and implementation
expertise with Cisco's world-class unified communications and networking technologies.
IBM – the best solution and servicer provider, a business partner of Cisco in 38 countries
Cisco –one of the best technical providers

PLVSARLVT
AUSTRIA
BELGIUM
DENMARK
FINLAND
FRANCE
GERMANY
GREECE
IRELAND
ITALY – IGA ONLY
NETHERLANDS
NORWAY
PORTUGAL
SPAIN
SWEDEN
SWITZERLAND
UK
Supported Countries
BULGARIA
CROATIA
CYPRUS
CZECH Rep
ESTONIA
HUNGARY
LATVIA
LITHUANIA
POLAND
ROMANNIA
SLOVAKIA
SLOVENIA
SERBIA
TURKEY
UKRAINE

Supported Countries
GYPT
MOROCO
UNISIA
OUTH AFRICA

DUBAI
ISRAEL
PAKISTAN
RUSSIA
Supported Countries

 Network Systems
* Routers
* Switches
* Network Management
* Cisco IOS Software
* Interfaces and Modules
* Optical Networking
 Collaboration, Voice and Video
* Voice and Unified Communications
* WebEx Collaboration
* TelePresence
http://www.youtube.com/watch?
v=cRGHokZtaf0
* Video, Cable and Content
Delivery
• Cisco StyleMe Virtual Fashion Mirror
http://www.youtube.com/watch?
v=jDi0FNcaock
* Universal Gateways and Access
Servers
 Security
* Security
* Physical Security
* Virtual Private Networks (VPN)
* Firewall
* Security Management

 Data Center
* Application Networking
Services
* Storage Networking
* Data Center Switches
* Blade Switches
 Mobility / Wireless
* Wireless
* Access Points
* Outdoor Wireless
* Wireless LAN Controllers
* Service Exchange

• Cisco acquired a variety of companies to spin products and talent into the
company. In 1995–1996 the company completed 11 acquisitions
• During the Internet boom in 1999, the company acquired Cerent Corporation
for about US$7 billion, acquisition of Scientific Atlanta has been larger.
• The latter came as result of Cisco acquiring Linksys in 2003 and in 2010 was
supplemented with new product line dubbed Cisco Valet
• Cisco announced on March 15, 2012 that it is acquiring NDS Group for $5B.
This transaction was completed on July 30, 2012.
• In January 2013, Cisco Systems acquired Israeli software maker Intucell for
around $475 million in cash, a move to expand its mobile network management
offerings. In the same month, Cisco Systems acquired Cognitive Security, a
company focused on Cyber Threat Protection. Cisco also acquired
SolveDirect (Cloud Services) in March 2013 and Ubiquisys(Modile Software) in
April 2013.
List of acquisitions by Cisco Systems

Other Suppliers

Types of Orders
 The purpose of the Cisco OEM Ordering Team is to process internal, external and SO
(strategic outsourcing) orders from OEM suppliers (Cisco but also others) for supported
countries. In general, on the basis of the requests which come to OQS, we place the order
through Bond - web application.
 External orders – equipment will be owned and used by an external customer.
 Internal orders – equipment will be owned and used by IBM internally.
 SO (strategic outsourcing) orders – equipment will be owned by IBM but used
by an external customer.
 We also process Cisco Renewal orders – services which are going to be expired and
need to be renewed.

Discounts Applied
External orders – standard discount is 42%
Internal and Strategic outsourcing orders - standard discount is 49%
Orders with Deal ID – Deal ID number is arranged between the IBM Sales
Representative and Cisco Account Manager. This number allows to apply higher
discount than the standard one. There are several types of Deal IDs:
 Identifying and developing new opportunities (OIP)
 Investing in business solution practice development (SIP)
 Selling to public sector customers (PSPP)
 Promoting product migration (CTMP)

Cisco Programs
 Trade-in Orders: The Cisco Technology Migration Program (CTMP) is an innovative
sales program enabling Customers/Partners to trade in their existing Cisco products in
exchange for a trade-in credit towards the purchase of new Cisco products
 Try and Buy Program (TAB): allows customers to try, then buy the equipment. The
end-customer will have 80-days to purchase the equipment or send the equipment back
before the 90th day. If the end-customer keeps the equipment even after 90 days he will
receive an Invoice for the cost of the equipment
 Cisco Certified Refurbished Equipment program: Remanufactured to like-new
condition and backed by same Cisco warranty as new products. Fully licensed and shipped
with valid Cisco IOS Software license. Certified to meet all regulatory and safety compliance
requirements.
 All these programs are available only through the network of Cisco Authorized Partners.

Systems and Tools used by OEM CISCO Team
IBM Tools:
 1) OQS Database (Order Qualification Status) – is the receipt, validation, tracking and
repository tool for all OEM orders processed by the OEM ordering team. It's a set of two Lotus Notes
databases:
 OQS OEM database for all active documents
OQS OEM ARCHIVE for all archived documents
 2) Buy on Demand – is a web-based application developed by IBM Procurement as IBM's
strategic tool for the creation and submission of purchase requisitions. It is used for preparing,
tracking and managing electronic purchases; from the point of origin through approval, receipt and
payment. Bond is the front-end for purchasing non-production goods and services worldwide.
 3) Procurement application tool – it is included in the Sametime tool. It provides Clients with
non-sensitive info regarding purchase orders and Buy on Demand (BoND) shopping carts.

Systems and Tools used by OEM CISCO Team
3rd
Party Tools:
 The new Cisco Commerce Workspace(CCW) ordering and quoting
tool
 UPS Tracking Tool: provides tracking details, such as: tracking number, type of
shipment, status of delivery, scheduled delivery, shipped to place, weight, carton ID, time &
date of final delivery, signature, proof of delivery.

Shopping Methods
 Shop by contract:
 All OEM orders are done via B2B Process, only some exceptions when we use
non B2B. For shop by contract we use BSAPs. BSAP is the name given to the
hands free process where clients/end users select items from a supplier contract
in Bond or Global Catalog Facility (GCF) and bringing the item information creating
an automatic purchase order and issued to the supplier upon full approval of the
Bond cart.
 Catalog shopping:
 GCF (Global Catalog Facility) - A cloud supporting Buy on demand (Bond)
purchases. An on-line marketplace containing millions of products and services
from thousands of suppliers across thousands of catalogs; all supporting the
indirect purchase activity of IBMers and contractors from around the world.
 Shop by commodity:
 It is used for other suppliers (non Cisco) when BSAP is not available, or not complete. It is
also used for PO uplifts. We can only use H4 Family (Connectivity) commodity codes -
Network Cabling and Installation, Networking Equipment (Routers, Switches, Hubs, Modems,
Wireless Networking Equipment), Voice & Telephony Equipment, Uninterruptable Power
Supplies and related services.

Cisco Maintenance
There are two types of Cisco maintenance: PSS & CBS (Smartnet)
PSS maintenance is provided by IBM and Cisco together. Cisco provides replacement
parts, IBM provides technicians to repair the broken machine.
PSS Maintenance Types:
PS2P - COLL 24x7x2 INT
PSOE - COLL 8x5x4 INT
PSUP - COLL 24x7x4 INT
PSRT - COLL 8x5xNBD INT
Maintenance Discounts:
1 year – 52%, 2 years – 53,92%, 3 years – 55.36%

Cisco Maintenance
Smartnet Maintenance: is provided only by Cisco. Cisco provides replacement
parts as well as technicians to repair the broken machine.
Smartnet Maintenance Types, called CBS(Cisco Brand Services)
S2P - 24x7x2
SNTE - 8x5x4
SNTP - 24x7x4
SNT - 8x5xNBD
Smartnet Maintenance Discounts:
1 year – 35%, 2 years – 37.60%, 3 years – 39.55%

Cases
At any level of the E2E process, the order can face all kind of case from the customer’s request till the delivery
and even billing. Here are some of it :
During raising the cart - Invalid products-Mismatch quantities-mismatch maintenance type-Inactive Project
number.
After submitting the cart , it can get rejected by the Bond approvers, Procurement or the Supplier for a reason
or another.
When the order reaches Cisco, there are many holds can be placed for the order to prevent it from moving
forward till it gets fix :
IC Special Discount Hold - Export Hold – Order Review – New Product Hold – Expedite – VP expedite.
Order change - Order cancellation - PO Uplift (alteration for other suppliers, only if the buyer agreed)
During the delivery – Missing products – Refusing the delivery – Dead on Arrival (DOA)– Return products
(RMA) - request a Credit memo from the supplier.

OEM Scorecards
 A brand new Cisco OEM ordering team initiative for year 2011. After 8 years existence of the CISCO
OEM ordering team the new scorecard has been created to measure the main activities performed by
Cisco OEM ordering team as per the team's DOU. New scorecard is fully automated pulling out data
from the OQS database based on a BRIO report. Putting in place the scorecard gives us a great
opportunity to identify process and operational defects and ways for their improvement. On a monthly
basis results of the team are presented with focus on Cisco OEM ordering team's turn around time
(TAT).
 Main measurements:
 Average TAT of all countries
 SAT (% of orders with OEM TAT < 2 working days)

Cisco OEM Ordering Team E2E Process

Customer
requirements
Pre Sales

Customer
requirements
Customer initiates deal
with IBM
Pre Sales

Customer
requirements
with IBM
Finance prepares the prices
Pre Sales
Deal Hub

Customer
requirements
with IBM
Proposal/Contract
Pre Sales
Deal Hub

Deal is agreed. Contract is signed. Expectations are formalized.
Order can be placed…

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Pre Sales
Deal Hub
PBS

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Order entered in OQS
Pre Sales
Deal Hub
PBS

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cartPre Sales
Deal Hub
PBS - PA
OEM Team

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entry
Pre Sales
Deal Hub
PBS
OEM Team

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entryPO
Pre Sales
Deal Hub
PBS
OEM Team
Procurement

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entryPO
Scheduling
Pre Sales
deal hub
PBS
OEM Team
Procurement
Cisco

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entryPO
Scheduling
ProductionPre Sales
Deal Hub
PBS
OEM Team
Procurement
Cisco

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond Cart
Order entryPO
Scheduling
Production
Transit to DC
Pre Sales
Deal Hub
PBS
OEM Team
Procurement
Cisco

San
Francisco
Houston
Guadalajara
Atlanta
Boston
Bangkok
Hong Kong
Penang
Singapore
Tiszaujvaros
Pardubice
ELC
Toronto
The European Logistics Centre (ELC) receives orders from all origins in Europe, North
America and Asia
The European Logistics Centre

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entryPO
Scheduling
Production
Transit to DC
Shipment
Pre Sales
Deal Hub
PBS
OEM Team
Procurement
Cisco

Explanation Time in Transit UPS SCS
UPS SCS
Warehouse
Herkenbosh
(NL)
UPS SCS
distribution
center
Amsterdam
(NL)
Destination
airport
Delivered (Time in
Transit ends)
Standard service
level: Time in
Transit max. 4 -5
working days
Express service
level: Time in
Transit max. 2 - 3
working days
Received at Origin
Service Centre (Time in
Transit starts)

In case of need, 24h delivery can be used (airfreight, or special courier e.g. Fedex)

Customer
requirements
Customer initiates deal with IBM
Proposal/Contract
The Contract is
registered in CFTS
Bond cart
Order entryPO
Scheduling
Production
Transit to DC
Shipment
Delivery
Billing
Pre Sales
Deal Hub
PBS
OEM Team
Procurement
Cisco

Customer
requirements
with IBM
Proposal/Contract
The contract is
registered in CFTS
Bond cart
Order entryPO
Scheduling
Production
Transit to DC
Shipment
Delivery
Billing
Invoices
Pre Sales
Deal Hub
PBS
OEM Team
Procurement
Cisco

QUESTIONS?
http://www.youtube.com/watch?v=pY8VV-5OZrchttp://www.youtube.com/watch?v=pY8VV-5OZrc

Thank you for your attention!

OEM CISCO presentation

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