Calt Insead-cisco by mgirardo in 2007

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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.

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 5IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 8IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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Worklo

ad Imp

act

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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Complexity(Explosion of Decision)

Process Structure & Systems People

Standardization & Simplification

Culture

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Time acceleration Globali-zation Innovation

Complexity(Explosion of Decision)

Process Structure & Systems People

Standardization & Simplification

Culture

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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Structure & Process

Culture

Empowerment

Explicit Control

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 19IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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Cisco Products Power the Internet

Cisco Runs Its Business on the Internet

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 20IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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

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

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

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

&,,.=#$+.,%D+4*)$.,*)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

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 22IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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”

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 23IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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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…

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 25IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 26IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 27IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 30IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

MISSIO

N-CRIT

ICAL

NOT M

ISSION

-CR

ITICAL

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OutsourceOut-task

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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CUSTOMERADVOCACYHR

FINANCE

MANUFACTURING

ENGINEERING

IT & STRATEGIC FOUNDATION)IT & STRATEGIC FOUNDATION)

US Americas Asia Japan EMEAOne Sales & Channels Organization

MARKETING

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 33IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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FIELD INTEGRATION

SEGMENTED GO TO MARKETENT

COMSP

MARKETINGCHANNELS IBSG

TECHNOLOGY

SERVICES / SUPPORTMANUFACTURING

SALES

FINANCE / LEGAL / HR

BUSINESSDEVELOPMENT / ALLIANCES

Segment CouncilsSegment Councils

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 34IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 36IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 37IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 38IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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Change Drivers

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 39IMD June 27th 2006 Marc Girardot – mgirardo@cisco.com

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