1、Leveraging the Global Networked Business ModelMarketingAgendaMarketingAgendaOverview of Cisco Systems, Inc History of Cisco Main products History of Cisco SystemsCore TechnologyRoutingSwitchingSoftware and StandardsMain Products New TechnologiesSecurityVoiceWirelessStorage NetworkingMain ProductsOve
2、rview of Cisco Systems, Inc Market share Strategy Operation model External competition IT-based operationCompetitive EnvironmentCompany1997 Market Share1992 Market ShareCisco19.33.93Com15.33.8Bay Networks5.7n.a.Fujitsu4.49.3Cabletron4.4n.a.IBM3.912.0Hewlett-Packard3.8n.a.Toshiba3.57.3Ascend3.2n.a.Mo
3、torola3.05.2Newbridge Networks3.0n.a.Racaln.a.5.0AT&Tn.a.3.6All Others30.949.9Total Market$36 billion$12 billionWorldwide Datacom Equipment Market Shares (%)MarketingAgendaCompetitive EnvironmentExternal environmentMain competitorsMarket opportunitiesCompetitive EnvironmentFirm1997 Total Company Rev
4、enues1997 Datacom RevenuesDatacom as Share of Total Company RevenuesCisco$7.3$7.3100%3Com5.85.8100Bay Networks2.32.3100Lucent26.4n.a.n.a.Nortel/ Bay Networks15.4n.a.n.a.Fujitsu28.81.65Cabletron1.41.4100IBM76.61.42Newlett-Packard36.81.44Toshiba13.21.310Ascend1.21.2100Motorola4.31.126Newbridge Network
5、s1.21.2100Racal0.90.9100AT&T1.41.4100Datacom Revenues as Share of Total revenues (in $ billions)CEO of CiscoDedication to Customer SuccessMarketingAgendaVision and GoalCiscos vision is to provide an end-to-end single vendor solution that provides more value as an integrated set than any best-of-bree
6、d implementation from multiple vendors.Ciscos goal is to be the market leader in all of the markets in which it operates.Business Strategy-5 Key Elements Customer satisfaction Product leadership Strategy acquisitions Business partnerships Global networked business modelMarketingAgendaOrganization of
7、 Business Activities Centralized VS. Decentralized Product lines VS. Business Lines Direct sales VS. Indirect channels Education and Training MarketingAgendaFigure of Cisco IS organization President & CEOLOBs & Product MarketingResearch & DevelopmentGlobal SalesManufacturing & LogisticsCustomerAdvoc
8、acyIS Director,Application DevIS Director,Application DevIS Director,Application DevIS Director,Application DevSr. Manager, OperationsSr. Mgr, Architect Advanced TechnologyIS Director,Strategic ServicesIS Director,Networks & TelecommunicationsCIO & VP ISThe IS OrganizationFigure of Cisco IT Spending
9、 Cisco SystemsAll manufacturingComputer, peripheral & network equipment manufacturersAverageMedianAverageMedianIS budget / % revenue6.5%1.811.602.201.60IS budget / employee ($000s)$36,666$5,479$3,543$6,118$7,567Percent IS employees in user departments70%8%n.a.7%n.a.Revenue / IT employee ($million)$6
10、.8$14$9.6$7.1$9.6Revenue / employee$566,000$384,928$218,845$285,081$370,370IT InfrastructurelDuring 1994, Cisco replaced its traditional financial, manufacturing and order entry systems with Oracle ERP applications and Oracles Database at a cost of USD15million.lIn the follow-on two years, USD100 mi
11、llion series of initiatives to replace all IS applications and platforms worldwide.lThe high degree of standardization is Ciscos architecture gives the company a high degree of flexibility and efficiency.Web-based ApplicationlAim to use the network as a foundation for applications linked to the core
12、 business systems.lAn Intranet supports employees at all levels.lAn Extranet links order processing to availability, to demand forecasting, to procurement, to production scheduling.lThe internet links configuration to order placement to billing to order tracking, and links customers to on another th
13、rough problem-oriented use groups.lThus, the information sharing supports Ciscos own inventory and production processes, the forecasting needs of suppliers, and the order and tracking needs of customers.Web-based ApplicationlMarket place for net commerce by customers, resellers, partners.lTechnical
14、Assistance, Software library, and Open Forum for customers, resellers, partners.lCustomer Service for nontechnical issues.lInternetworking Product Center online ordering by authorized customers and resellers. Internet- Cisco Connection Online (CCO) Web-based ApplicationWhat Cisco benefits from CCO?l
15、Customer satisfaction is Ciscos ultimate focus. lThe close tie with the customer is the foundation of its business model and the source of it market power.lLinkages between the order processing applications and Ciscos IT Infrastructure not only meet the customer needs timely and effectively, but als
16、o enables Cisco to forecast demand and react very quickly, essentially act as the extensions of Ciscos own internal systems. Web-based ApplicationWhat Cisco benefits from CCO? lCost saving and avoidancelIn mid 1999, 77% of all sales were via the Internet.lAnnually $550 million achieved in reduced co
17、st from transferring most of its business to the internet.lCiscos sales increased four-fold between 1995 and 1998, but its support engineers only doubled. Another 1,000 support engineers have to be hired at $75 million annually without the web Technical Help Application. (Cont)Web-based Applicationl
18、Supply Chain Integration or sharing of forecast, order and inventory information.lNew Product Development sharing of design, test, ramp-up, quality and product specification information.Extranet- Cisco Supplier Connection (CSC) Supply Chain ManagementSupply Chain ManagementResultsWeb-based Applicati
19、onIntranet-Cisco Employee Connection (CEC) lEmployee self-service for travel benefits.lCommunication and distance learning.lCollaboration and workflow management lExecutive Information Systems and Decision Support SystemsSuperior Employee ProductivityMarketingAgendaBusiness ModelThe “value web” or s
20、trategic network modelBusiness Modell Pioneered by the direct sales, build-to-order strategies of Dell and been imitated by others in PC industry.l Cisco forged a critical relationship to its customers, by which it gain leverage over components suppliers and manufactures through its market power.Bus
21、iness Modell At the hub of this strategic network is Cisco and its Customers, surrounded by companies and providing components, manufacturing, logistics, distributions and service, all coordinated by Cisco thereby increasing its market power. Business Modell The key relationship is between Cisco and
22、 Customers in this network.l The role acted by Cisco is a coordinator.lCisco takes advantages of low production costs provided by market transactions while simplifying its supplier and distribution networks to reduce coordination and costs.Ciscos Strategic Use of ITlIt demonstrate to customers, supp
23、liers, and business partners the concept, the operating reality and the benefits of the global networked enterprise which Cisco promotes as the solution for all enterprise, public and private, large and small, local or global.Six Principles for IT InnovationslHelp your customers business and you wil
24、l help your own business.lEncourage self - help.lProvide end to end integration of infrastructure.lShare information with your key constituencies.lUse web-based recruitment and training to extend your reach.lUse sourcing for IS applications and services whenever possible.p 经常不断地学习,你就什么都知道。你知道得越多,你就越有力量p Study Constantly, And You Will Know Everything. The More You Know, The More Powerful You Will Be学习总结结束语当你尽了自己的最大努力时，失败也是伟大的，所以不要放弃，坚持就是正确的。When You Do Your Best, Failure Is Great, So DonT Give Up, Stick To The End演讲人：XXXXXX 时 间：XX年XX月XX日
