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Cisco's Digital Transformation Strategy
- 2. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco‘s Transformation and Strategy Creating a Platform for Continuous Innovation Luong Thi Le Thuy Country Managing Director, Cisco Systems Vietnam
- 3. Thank you to all sponsors | HCM
- 6. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential What is the Digital Transformation Today? Create New Customer Experience Increase Loyalty Increase Revenue Transform Processes and Business Models Respond Faster to Market Changes Efficient Operations Digital Transformation requires a Digital Ready Infrastructure Empower Workforce Efficiency and Innovation Increase Productivity Attract and Retain Talent
- 7. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential How many “startups” were created in 2017 ? 50 million new businesses were formed globally (137,000 per day) Interesting Facts
- 8. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential of companies feel pressure from changing business models Gartner Harvey Nash/KPMG CIO Survey NSA Companies compete over customer experience89% Lost annually due to cybercrime$1T of CIOs face an IT skills shortage65% 68% Accenture IDC FutureScape: Worldwide Big Data and Analytics 2016 Predictions Extra productivity benefits to organizations who can analyze all relevant data $430B
- 9. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Simple Intelligent Automated Secure Millions of Connections Dynamic and Distributed Interconnected Processes Open Ecosystems Digital Engagements Contextual and Adaptive Predictive and Prescriptive Numerous Tasks due to Scale Rapidly Changing Business Needs Attributes of a Digital Ready Infrastructure
- 10. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential CISCO CONNECT 2018 . IT’S ALL YOU For 30 years, we’ve focused on helping to change the way the world works, lives, plays, and learns. Our vision
- 11. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential CISCO CONNECT 2018 . IT’S ALL YOU We create solutions built on intelligent networks that solve our customers’ challenges. Our strategy
- 12. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential #1or #2 Market Leadership $6B Annual R&D Spend +200 Acquisitions 300K+ Strategic Partners 19,000 Patents Customers are always at the heart of everything we do 28,000 Engineers
- 13. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential CISCO CONNECT 2018 . IT’S ALL YOU Market leadership matters #1 SP Routing 47% #1 Access Routing 81% #1 Telepresence 53% #1 Wireless LAN 46% #1 Switching modular & fixed managed 60% #1 Voice 43% #1 SaaS Web Conferencing 53% #1 x86 Blade Servers 33.4% #1 Storage Area Networks 46% #1 Network Security 29%
- 14. Intelligent Secure Simple Automated Digital Ready Infrastructure Cisco. Your Foundation for Digital Transformation We Bring Everything Together Engagement, Productivity Holistic Code to Consumer Visibility Trust = InnovationAgility, New Business Models Cisco is building an Infrastructure that is Simple, Intelligent, Automated, and Secure to accelerate Digital Transformation
- 15. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential CISCO CONNECT 2018 . IT’S ALL YOU
- 16. Shape the Future of VIETNAM
- 17. IT’s All You
- 18. Thank You
Editor's Notes
- This presentation IS about the change we are seeing in the marketplace, including trends and dynamics. It also speaks to what this digital disruption means to Cisco and how we are transforming as a company. This presentation IS NOT about Cisco’s vision and strategy. While they complement each other, they are different.
- Depending on who you talk to, there are many definitions What is digital transformation from analyst firms to acamedicia to strategy consulting firms However when we looked at about 60 of these the common thread across these are Building Personalized and New Customer Experiences Transforming Existing Process through Innovative business models And Empowering your workforce for innovation So why these three? The consensus among the many definitions from industry analysts, CEO’s of leading transformational companies and academia is that To transform into a successful digital business in today’s world, you will need 3 critical capabilities New customer experiences which lead to increased customer loyalty and greater insight to predict future purchases Why so? - Accenture surveyed ~13,000 consumers in 33 different countries and found that 66% i.e 2 out of every 3 consumers switched providers due to poor customer experience and by 2016 Gartner predicts that “89%i.e 9 out of every 10 companies will compete primarily on the basis of the customer experience Innovative business models which leads to faster time to market and leaner operations Why so? Explosion of connected devices disrupts value chains paving the way for Business Model disruption. By 2020, one million new devices will go online every hour which enabling quicker automated decisions driving efficiencies to a new level Empower workforce innovation which leads to increased productivity and better employee retention Again, why does this matter? - Gallup surveyed over 1000 employees each in about 142 countries representative of 98% of the world population and found that about 87% of employees are disengaged and when companies address this dissatisfaction and bring it town to 10%, their earnings per share jumps by a whopping 50% Source: Digital Business Definition Gartner IT Glossary - http://www.gartner.com/it-glossary/digital-business/ 18M quote Gartner G00293702, 30 Oct 2015, Forecast Alert: Internet of Things — Endpoints and Associated Services, Worldwide, 2015 “…Gartner is now projecting shipments of 6.6 billion Internet of Things (IoT) endpoints in 2020 …” Logic In 2020 devices shipped = 6600 million 365*24 hours = 6600 Devices shipped every day in 2020 = 6600/365 = 18.082 M 87% quote Gallup 2013, State of the Global Workplace: Page 7 “…Overall, among the 142 countries included in the current Gallup study, 13% of employees are engaged in their jobs, while 63% are not engaged and 24% are actively disengaged…” 1.5x quote Gallup 2013, State of the Global Workplace: Page 7 “…Organizations with an average of 9.3 engaged employees for every actively disengaged employee in 2010-2011 experienced 147% higher earnings per share (EPS) compared with their competition in 2011-2012. In contrast, those with an average of 2.6 engaged employees for every actively disengaged employee experienced 2% lower EPS compared with their competition during that same time period…” 66% quote Accenture 2013 Global Consumer Pulse Survey – Page 10 “…Globally, there is a 4 percent increase in switching due to poor customer service to 66%...” Sample size: 13168 consumers in 33 countries 89% quote Gartner Survey Finds Importance of Customer Experience is on the Rise; Marketing is on the Hook, Jake Sorofman, Laura McLellan, Sep 2014 Actual quote – “…The trend is clear: the percentage of companies competing primarily on the basis of customer experience is rising from 36% two years ago to 58% today to a whopping 89% two years from now. The implication is that customer experience has become a strategic imperative.”
- The task at hand is daunting. You must master new business models, new processes, and new threats—in ever shorter time frames. Yet you can’t even hire the talent required to take on such a task. Security is an imperative. And yet the benefits are outstanding. We all know. If you don’t keep pace, someone else will. Data Sources: 68% of you are overwhelmed. (Source: Accenture) Up to $1 trillion annual loss due to cybercrime (NSA - https://www.cisco.com/c/dam/en/us/solutions/collateral/digital-business-transformation/digital-business-infographic.pdf) 71% of executives said that concerns over cybersecurity are impeding innovation at their organization [Cisco Cybersecurity survey, pg 4] By 2020, organizations able to analyze all relevant data and deliver actionable information will achieve an extra $430 billion in productivity benefits over their less analytically oriented peers. [IDC FutureScape: Worldwide Big Data and Analytics 2016 Predictions] 65% of CIOs said that an IT skills shortage – the biggest since the Great Recession rocked the global economy – is stymying their efforts to keep up with the pace of technological change. The most in-demand IT skill is data analytics (39 percent). Digital strategy and security also saw big jumps in demand of 21 percent and 17 percent, respectively, since last year. Harvey Nash/KPMG CIO Survey reported in Datamation (June 2016) "From grappling with an increasing cyber security threat, to working with the board on innovation and digital transformation, CIOs in 2016 are dealing with a more varied range of challenges than ever before, many of which are far, far away from traditional IT," said Albert Ellis, CEO of the Harvey Nash Group, a talent recruitment specialist, in a statement. Adaptability, influencing skills and an ability to keep a clear head in uncertain times are becoming increasingly important business skills for today's CIO.” Harvey Nash/KPMG CIO Survey reported in Datamation (June 2016)
- The task at hand is daunting. You must master new business models, new processes, and new threats—in ever shorter time frames. Yet you can’t even hire the talent required to take on such a task. Security is an imperative. And yet the benefits are outstanding. We all know. If you don’t keep pace, someone else will. Data Sources: 68% of you are overwhelmed. (Source: Accenture) Up to $1 trillion annual loss due to cybercrime (NSA - https://www.cisco.com/c/dam/en/us/solutions/collateral/digital-business-transformation/digital-business-infographic.pdf) 71% of executives said that concerns over cybersecurity are impeding innovation at their organization [Cisco Cybersecurity survey, pg 4] By 2020, organizations able to analyze all relevant data and deliver actionable information will achieve an extra $430 billion in productivity benefits over their less analytically oriented peers. [IDC FutureScape: Worldwide Big Data and Analytics 2016 Predictions] 65% of CIOs said that an IT skills shortage – the biggest since the Great Recession rocked the global economy – is stymying their efforts to keep up with the pace of technological change. The most in-demand IT skill is data analytics (39 percent). Digital strategy and security also saw big jumps in demand of 21 percent and 17 percent, respectively, since last year. Harvey Nash/KPMG CIO Survey reported in Datamation (June 2016) "From grappling with an increasing cyber security threat, to working with the board on innovation and digital transformation, CIOs in 2016 are dealing with a more varied range of challenges than ever before, many of which are far, far away from traditional IT," said Albert Ellis, CEO of the Harvey Nash Group, a talent recruitment specialist, in a statement. Adaptability, influencing skills and an ability to keep a clear head in uncertain times are becoming increasingly important business skills for today's CIO.” Harvey Nash/KPMG CIO Survey reported in Datamation (June 2016)
- Simple: Digital Tranformation requires connecting millions of endpoints, disparate types of data sources and convergence between IT and OT. Business and Infrastructure is becoming more dynamic and distributed with cloud, mobile and social trends. All this leads to complexity and that’s why you need simplicity in your infrastructure. Intelligence: Contextual Awareness of apps, users, threats and location is required to unlock the value of data and understand the customer and business better. Predictive and Prescriptive insights as well as an adaptive infrastructure are necessary to respond to market changes faster. All this requires an intelligent infrastructure. Automation: Millions of endpoints, thousands of virtual machines and humdreds of applications are being connected for Digital Transformation while the IT staff is not growing. Its becoming almost impossible for IT to manage anything manually due to scale, complexity and need for a real time response. Rapidly changing business demands requires you to be highly responsive. Automated Infrastructure is the engine that propels digital transformation. Secure: Digitally interconnected processes are the lifeline of business and you need to protect them end to end. Companies are more open than before and are embracing open ecosystem. This increases chances of attacks. Digital Engagement is becoming the norm and online transactions & intellectual property are more vulnerable to attack. A Secure Business requires a secure infrastructure.
- Our vision has never wavered. Not in 1985, 1995, 2005, 2015 and not now. For 30 years, we’ve been steadfast in our commitment to help change the way the people work, live, play, and learn. And we do this by staying close to market shifts, new phases of the Internet, economic conditions, you name it. Anything that impacts our customers is top of mind for us at Cisco.
- Our strategy is to solve our customers’ most important business challenges. How do we do it? We deliver intelligent networks and technology architectures built on integrated products, services, and software platforms. This means that our customers can run lean and mean today, while preparing for the future. It means they have the investment protection they need. And a partner that is unrivaled in the industry.
- 19K patterns 201+ acquisition
- <Contact Dean Eyers (deeyers@cisco.com) for more information on Market Share> *Switching = Modular + Managed Cisco is the only company with market share leadership across all industry segments as shown on this slide. We have a diverse product portfolio from collaboration to data center to cloud to security to Unified Computing. And this touches on just a few of our product categories—all of which we deliver as integrated architectures, creating a platform for long-term stability and success. Not only for our Cisco, but our customers and partners as well. We also offer a range of Services from strategic planning to superior product support—helping your plan, build, and manage the solutions you need to win in your market. We also touch the enterprise, service provider, and public sector. Plus, our unmatched expertise in networking technology transitions makes us uniquely positioned to help customers capture the value of the Internet of Everything. And only Cisco connects the unconnected with an open standard, integrated architecture from the cloud to end devices. Based on our rich history—and success in the market—connecting the unconnected is what we do best. And we will continue to strive to be No. 1 in all of our markets
- Only Cisco provides the foundation for Digital Transformation by bringing everything together into a Simple, Intelligent, Automated and Secure Infrastructure. Cisco makes things simple by providing cloud-ready products and services with flexible consumption models. Our infrastructure solutions provide intelligence at the edge, and help you unlock the value of data, so you can make faster, better decisions. Cisco also provides efficiency and agility through its automated services. Our solutions also secure your infrastructure from end to end, enabling the trust that’s essential for fueling collaboration and innovation.
- Cisco is your foundation for digital transformation. Together with our partners, we provide the technology, the services, and the expertise to make it happen. For the last year years, you’ve depended on the network as the platform – but today’s business models require a new network – a network that delivers the capabilities required to be competitive in the digital era.