calt insead-cisco by mgirardo in 2007

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1 Marc Girardot – [email protected]

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This presentation on the Cisco model and its relevancy in today's complex world was given at part INSEAD's CALT by Marc Girardot in 2007.

TRANSCRIPT

Page 1: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1Marc Girardot – [email protected]

!"#$%&'($)*$+(,(-.('(#/(!"#$%&$'()**+

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!"#$%&'#"#()*!"+",'+,%-'#.$*)#/%012& 34*)5)*'6.%&7)8"7%9#"$*'$.:';$)%2<;*.5;

Page 2: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2IMD June 27th 2006 Marc Girardot – [email protected]

!"#$% &"'()*+,'-.(')*/((0('12*&34. &34.+,5-('! "#$% &'(&)* +,-$%.+'/0,1$)+/2(3$#4),&( +,%+*4(1#$% $5,-6+'7&'7%+#8*1(0,1*-6'$4$7&*(0,-9(1$%*#(0+') .#$)9-1( 16+1 +#*,36&#4&'7 ($ 5+(1 16*/ :9(1 -+'21 ;*$#)*#*) &',+,%+'+7*#2( %&')< =

>*$55#*/,?$4@&'0"$#19'*,A*'&$#,B)&1$#

Page 3: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3IMD June 27th 2006 Marc Girardot – [email protected]

!"#$%&'(%)**+,-%$./#0%#12.))%$"*%3.24/%5&6

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Page 4: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4IMD June 27th 2006 Marc Girardot – [email protected]

!"#$%&'(%)**+,-%$./#0%#12.))%$"*%3.24/%5&&6

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Page 5: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5IMD June 27th 2006 Marc Girardot – [email protected]

7*#1"+,-%#%892,+,-%:.+,$%;

! !"#$%"&'%(&#)*+%,*+%--.)./**! !0..)*+%,*1&)%""2*3%45+(*4-*! 67.05&)5*7%08.(,*+%9.*.7.05./! :.3+)#"#52*%9%"%)3+.*+%,*,(%0(./

!"#$%&'()*+%"(,-!.(/0/12+*+

Page 6: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7IMD June 27th 2006 Marc Girardot – [email protected]

<=*23"*4(*/%>0%?.(@4*A+$0

nmodelsxNcombinationsxxcompaniesxktechnologiesxpcountriesComplexityFactor= timeAcceleration

!"#$%&'()*+%"(,-!.(/0/12+*+

Page 7: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8IMD June 27th 2006 Marc Girardot – [email protected]

:2./91$+=+$0%1#,,.$%B.44.3%?.(@4*A+$0! C$#*,-$%.4*D&1/,-$%;&'*),3&16,4*((,#*($9#-*(,+55*-1,7#*+14/,3$#84$+)(E! F#$)9-1&@&1/,7+&'(,+#*,&'(955&-&*'1,1$,-$%.*'(+1*E! ?$%.+'&*(,'**),1$,-6+'7*,16*&#,3$#8&'7,%*16$)(,1$G

! "#$%&'()*&+)(,-./$0$/12&! "#$%&'()*&*33$.$*%.12&#%,&! "#$%&'()*&*33*./$0*%*445

Worklo

ad Imp

act

!"#$%&'()*+%"(,-!.(/0/12+*+

Page 8: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9IMD June 27th 2006 Marc Girardot – [email protected]

82#/+$+.,,#4%1.(@#,+*)%"+,/*2*/%>0%?94$92*! ?$%%+'),H,?$'1#$4! I$1,J#9(1K;+(*)! L&%&1*),B%.$3*#%*'1! M51*',A&4$*)! L+-8(,)&@*#(&1/! B'7&'**#&'7,.#*K)$%&'+'-*! A$%*36+1,F+1*#'+4&(1&-! ?$9'1#/,N$$1(,F#*)$%&'+1*

J#+)&1&$'+4,O91$,?9419#*

!"#$%&'()*+%"(,-!.(/0/12+*+

Page 9: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11IMD June 27th 2006 Marc Girardot – [email protected]

8"*%C9$.(.$+=*%&,/9)$208.3#2/)%D.2*%E(@.3*2(*,$! 6'+(7*)*,&8&9)-4/:;#4*,! <+*%&=(''-%$.#/$(%! 6%/)*+)*%*-)$#>! 6?#'+>#)&8&@#$)! A:3-%./$(%#>&9*#'7()BC=#)**)4! @#$>-)*&9(>*)#/*,! D$0*)4*&8&E>(;#>! =(%/$%-(-4&F'+)(0*'*%/! D)$0*&G#),

I*D1,>*'*#+1&$',?9419#*

!"#$%&'()*+%"(,-!.(/0/12+*+

Page 10: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12IMD June 27th 2006 Marc Girardot – [email protected]

F+#$C,%EA#(@4*%.B%C%?94$92*%.B%E(@.3*2(*,$! B'1#*.#*'*9#&+4! J+4*'1,@(,P&*#+#-6/,$#,#*4+1&$'(6&.! I$,;+#$''&*(! P+#),3$#8&'7! A$4&)+#&1/! Q&@*#(&1/,,! R$4),H,O%;&1&$9(! J6&'8,$91,$5,16*,;$D

!"#$%&'(3"$4#0&5()*+%"(,-!.(/0/12+*+

Page 11: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13IMD June 27th 2006 Marc Girardot – [email protected]

6$*,*&"'(*,$/*&"'(*4"&07(8*($9#'"$&($-)*437-3'(*:(4"&(5*,$*#$4'(,5#$%7;*#&0"'-,$-*7(9('Time acceleration Globali-zation Innovation

Complexity(Explosion of Decision)

Process Structure & Systems People

Standardization & Simplification

Culture

!"#$%&'"&() *$++,-$',).$(

Time acceleration Globali-zation Innovation

Complexity(Explosion of Decision)

Process Structure & Systems People

Standardization & Simplification

Culture

!"#$%&'"&() *$++,-$',).$(

Page 12: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14IMD June 27th 2006 Marc Girardot – [email protected]

<37-3'(*#5*,*&(4.,$#5&*-"*5-,$/,'/#=(*,$/*,54('-,#$*:(.,9#"'*:,5(/*"$*5.,'(/*9,73(5*

Structure & Process

Culture

Empowerment

Explicit Control

! "#$%&&'()! *+,+-&.$/0&(-+1+-)! *+,+-&.$.+1&02+-) ! 3+45$.+1&02+-)! 3+45$&,6#'&0,&7-! "&&.$8#0$+7.+0&/-$/#72+2-&7/)

!"##$%&'(!"%)*"+

!"++$,"*$)-"%

Page 13: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15Marc Girardot – [email protected]

!"#"$%&'(&)*+"),(*"$("*)'()*+")-./0

Page 14: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16IMD June 27th 2006 Marc Girardot – [email protected]

G.%".3%/+/%?+)1.%/.%+$HQtrly Rev

FY02FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY03 FY04 FY05

Boom Recovery Buildout

RevenuePre-Tax Profit

$7$6$5$4$3$2$1$0 FY06

In Billion $

4k

48k44k

34k

20k

Page 15: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17IMD June 27th 2006 Marc Girardot – [email protected]

IJ%FK'LM%N+-"4+-"$)!"#$#%"$&'()**$+,!"#$#%"$&'()**$+,! N*@*'9*,$5,+..#$D<,ST<URE,9.,VW<XY,/Z/! F#$)9-1,;$$8,1$,;&44,3+(,7#*+1*#,16+',V! I$'K>OOF,I*1,['-$%*,$5,S\<]RE,9.,+..#$D<,TY,/Z/,! >OOF,I*1,['-$%*,$5,SV<URE,)$3',^Y,/Z/!

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-./0+'!"#$#%"$&'1"2/&"2/.3-./0+'!"#$#%"$&'1"2/&"2/.3! ?+(6,54$3,5#$%,$.*#+1&$'(,$5,S]<WR! S\<WR,$5,-$%%$',(1$-8,#*.9#-6+(*)! S\X<XR,&',-+(60,-+(6,*_9&@+4*'1(0,+'),&'@*(1%*'1(

1. Includes $246M or $0.04 per diluted share charge related to our intent to acquire the remainder of Nuova Systems

Page 16: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19IMD June 27th 2006 Marc Girardot – [email protected]

?+)1.%G0)$*()O%!.24/3+/*%P*#/*2%+,%Q*$3.2R+,-%B.2%$"*%&,$*2,*$

Cisco Products Power the Internet

Cisco Runs Its Business on the Internet

Page 17: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20IMD June 27th 2006 Marc Girardot – [email protected]

Enable disparate campus networks to talk … multi-protocol router born

4./0+.5#6'74Sandy Lerner and Len Bosack

?+)1.')%S*-+,,+,-; TUMV

Page 18: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21IMD June 27th 2006 Marc Girardot – [email protected]

&,,.=#$+.,%D+4*)$.,*)Started at Stanford Shipped MultiportCommunications Interface (MCI)

Entered service provider market; released Gigabit Switch Router (GSR)

IPO; 192 employees Released Catalyst switchShipped first router; developed IGRP protocol

Released wireless LAN products

200619921984 1986 1988 1990 1994 1996 1998 2000 2002 2004 2005

First acquisition—Crescendo; released 3000, 4000 & 7000 series routers

Developed CRS-1 Carrier Routing System

Shipped first IP telephone; developed optical strategy

Acquired Andiamothrough spin-in; acquired Linksys

Introduced integrated services router; acquired Scientific Atlanta

Catalyst 6500 >$20B salesShipped 8 millionth IP phoneSurpassed 3M wireless access points installed

2007

Acquired WebExCisco TelePresence Shipped

Page 19: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 22IMD June 27th 2006 Marc Girardot – [email protected]

John Chambers, Chairman and CEO

“Customer success and satisfaction are at the heart of Cisco’s business strategy and key drivers of our current and future success”

Page 20: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23IMD June 27th 2006 Marc Girardot – [email protected]

?+)1.%#$%[email protected]#$*%?94$92*

Page 21: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24IMD June 27th 2006 Marc Girardot – [email protected]

>7":,7*!'#9(*+"'*<.,$%()*?'"/34-#9#-; 2*@++#4#($4;!

!

!

!

Simplified Processes &Organizations

Automation

Out-taskingIndustrializedprocesses

EmpoweredExecution

EnhancedCommunication& Collaboration

EnrichedLearning

Internet technologies change the context in which traditional trade-offs are made, enabling to erase parts of processes, or to create much simpler organizations.

Trained employees have the right information, at the right time with the ability (tools) and empowerment (governance) to act on it at their level.

Redundant entries of data are consolidated into one entry/trigger, machines automatically trigger and push information or receive information to be processed.

Select tasks or sub-processes are entrusted to specialized partners whose core business is those specific bits of process with remote web-based controls of quality of service. Processes are systematically standardized and scaled globally through web-enabled tools and training.

E-Learning is web-enabled training, synchronous and/or asynchronous, through a variety of combinations of rich media, video-on-demand, audio-on-demand, on-line test, virtual classroom, web simulations etc…

Pervasive communication and collaboration through permanent connectivity, full mobility and a variety of communication tools including VOIP, VOD, IPTV, video-conferencing, email etc…

Page 22: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25IMD June 27th 2006 Marc Girardot – [email protected]

G+(@4+B0%@2.1*))*)%+,)+/*%#,/%.9$)+/*%.B%?+)1.

Virtual Close!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20

Page 23: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26IMD June 27th 2006 Marc Girardot – [email protected]

Employee Transfer!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

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C9$.(#$*%3"*,*=*2%@.))+>4*

Page 24: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27IMD June 27th 2006 Marc Girardot – [email protected]

?.,$2.44*/%.9$).921+,-%R*0%$.%?+)1.')%(#,9B#1$92+,-Extended Entreprise

!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20

Page 25: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30IMD June 27th 2006 Marc Girardot – [email protected]

MISSIO

N-CRIT

ICAL

NOT M

ISSION

-CR

ITICAL

?.,$2.44*/%.9$).921+,-2*/+)$2+>9$+,-%0.92%#1$+=+$0%@.2$B.4+.CORE CONTEXT

KeepIn-house Out-task

OutsourceOut-task

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7:,3;-<=2">-20

Page 26: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32IMD June 27th 2006 Marc Girardot – [email protected]

A0(',-#"$,7#=(>7":,7*B3$4-#"$5*,$/*>7":,7*?'"4(55(5

CUSTOMERADVOCACYHR

FINANCE

MANUFACTURING

ENGINEERING

IT & STRATEGIC FOUNDATION)IT & STRATEGIC FOUNDATION)

US Americas Asia Japan EMEAOne Sales & Channels Organization

MARKETING

!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20

Page 27: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 33IMD June 27th 2006 Marc Girardot – [email protected]

C%X4.>#4%F9,1$+.,#4%<2-#,+Y#$+.,

FIELD INTEGRATION

SEGMENTED GO TO MARKETENT

COMSP

MARKETINGCHANNELS IBSG

TECHNOLOGY

SERVICES / SUPPORTMANUFACTURING

SALES

FINANCE / LEGAL / HR

BUSINESSDEVELOPMENT / ALLIANCES

Segment CouncilsSegment Councils

Page 28: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 34IMD June 27th 2006 Marc Girardot – [email protected]

<@*2#$+.,#4+Y#$+., *Z9#$*)%$.%29$"4*))%*A*19$+.,%#>+4+$0Acquisitions

!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20

Page 29: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35IMD June 27th 2006 Marc Girardot – [email protected]

E(@.3*2(*,$%[%)*4B\)*2=+1*%2#/+1#440%+(@2.=*/%1+)1. @2./91$+=+$0

Sales Portal!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20

Page 30: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 36IMD June 27th 2006 Marc Girardot – [email protected]

E,"#,1*/%1.((9,+1#$+.,%+)%R*0%$.%#4+-,+,-%$"*%-2.9@%

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Page 31: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 37IMD June 27th 2006 Marc Girardot – [email protected]

7:,3;-<=2">-20!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

S.$$.(\9@%[%$.@\/.3,%%1.((9,+1#$+.,

Page 32: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 38IMD June 27th 2006 Marc Girardot – [email protected]

D.>+4+$0%#,/%2*(.$*%3.2R+,-%

Enhanced Communication!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

Change Drivers

Page 33: Calt Insead-cisco by mgirardo in 2007

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39IMD June 27th 2006 Marc Girardot – [email protected]

C11*4*2#$*/%[%+(@2.=*/%4*#2,+,-%R*0%$.%?+)1.

!"#$%"&'()*+#,*-.)*/*,01.$-2,*"+3,%"4-5#$+6-27+##)3"8,*-9-,23

7:,3;-<=2">-20