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Cisco Systems (A

)
Arranged by Group 5 – MCS Course, International Program, MM GMU

Case Evidence
Cisco is a network vendor for many institutions – yet they now also provide products
and services for home networking. At the beginning history of Cisco, the corporation’s goals
were to build-up easiness in accessing the information using various electronic information
channels, especially computer, inside the Stanford campus. Along with the growth of the
firm, the management hired many talented employees. They formalized their business plan
covering four strategic goals (provide complete solution for businesses, make acquisitions a
structured process, define the industry-wide networking protocols, and form the right
strategic alliances). Based on that strategy, they want to become “e-business” leaders in their
industry.
Cisco use several distribution channels to deliver its products and services such as
personal selling, third-party distributors, resellers, service providers, and system integrators.
Since Cisco plays in the networking products, they try to provide customers with a great
possible flexibility of product or service development when designing customer’s networks.
Therefore, customers can save time and money when they want to change their existing
networks.
Cisco differentiate its customers into four major segments i.e. enterprises, service
providers, small/medium-sized businesses, and home consumers. Cisco has been rendering
networking solutions for its customers. Moreover, it also use internet and internet-related
technologies to handle business activities. Cisco build several internet initiatives for its e-
business functionality such as Cisco Connection Online (CCO), Cisco Employee Connection
(CEC), and Manufacturing Connection Online (MCO). As an addition to those initiatives, the
result is an increase in automated functions within several Cisco’s operation departments.
These e-business initiatives has brought the company to benefit a considerable flexibility in
managing the dynamic of the organization.

Main Problem/Issue
1. Can other corporations benefit from investing in e-business functionality to the same
extent that Cisco has?

FAQ and up-to-date information. Employee of Cisco will do everything possible to support the customer. With delegated authority for IT expenditures to individual business unit. the information just only about company and product information. software and even service) that enable the sharing of information across disparate network. Cisco manages complete information technology solution for business. customers were able to access more information like manual. Cisco also has strong business strength. acquired more than 70 companies to further develop and expand its market presence. It looks on Cisco achievement that mention above. It brings more customer satisfaction to achieve customer loyalty. It’s . would support customers and directly increase sale. Especially with the boost widespread of internet make the demand of networking hardware and software increasing rapidly. the company has used this competency to provide variety product (such as optical switches. Since then. in Cisco condition. The purposes of E-business initiative by Cisco are to maximizing customer satisfaction and minimizing the cost. integrating system between Cisco and its supplier is a perfect move. when it was integrated into sophisticated and costly ERP system. the power of supplier and customer are weak too. Another thing is Cisco save more than $800 million a year from re- inventing in e-business. Cisco achieved average growth rate over 40 percent a year.2. Because there are limited number of player. According to Porter’s Five Forces Model. It allows Cisco implemented Just-In-Time process that saves cost and time. For instance. In early stage. It causes higher entry barrier. IT industry now on is attractive industry. It used this competency to produce simple bridges and routers. Based on Boston Consulting Group (BCG)’s the portfolio matrix model. What can other corporations learn from Cisco’s approach to guiding the e-business transformation? Analysis In Corporate-level strategy. To minimize the cost. Because that. the forces are weak. Cisco fall in Winners category with high level industry attractiveness and string business strength. Later on. Cisco is main player that witch one initiate the standard of hardware and software. Cisco’s key core competence is computer networking know- how. limited number of competitor and substituted product. Cisco has long history with maximizing customer satisfaction. Cisco also adopting innovative techniques and technology to service customer and streamline its own business process with efficiently and effectively. Cisco totally committed to one industry which is computer networking industry.

the implementation and the execution may not same. There are must be some revision. However. Cisco can develop system that ease the employee works each other and made simpler the business process. It is significant move from Cisco to educated customer and builds customer loyalty. other company can gain benefit from investing e- business functionality same extent with Cisco. Conclusion and Recommendation Related with problem statement. Flexibility was as critical as functionality to Cisco e-business system. adaptation and change.begun with extended telephone support hours. Every company have own strategy and the infrastructure and the program must design based on that strategy. Cisco realize that with its large market share. Other company can learn how Cisco treats the employee. With electronic dissemination of knowledge could ease that burden. . using information technology to provide much information to customer and provided customer-training programs. The company just chooses the right ones are match with the requirement. Human resource was critical factor to. There are no system are adequate with the situation over time. Because the business unit face own unit unique environment and the business unit itself know to deal with it. With help from technology. The flexibility also comes from decision making process. The business units have independent position to relate with cost and strategy. The infrastructure and program is in the market right now. have large burden to support large number of customer.