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1、Leveraging the Global Networked Business Model,Marketing,Agenda,Marketing,Agenda,Overview of Cisco Systems, Inc,History of Cisco Main products,History of Cisco Systems,Core Technology,Routing,Switching,Software and Standards,Main Products,New Technologies,Security,Voice,Wireless,Storage Networking,M

2、ain Products,Overview of Cisco Systems, Inc,Market share Strategy Operation model External competition IT-based operation,Competitive Environment,Worldwide Datacom Equipment Market Shares (%),Marketing,Agenda,Competitive Environment,External environment,Main competitors,Market opportunities,Competit

3、ive Environment,Datacom Revenues as Share of Total revenues (in $ billions),CEO of Cisco,Dedication to Customer Success,Marketing,Agenda,Vision and Goal,Ciscos vision is to provide an end-to-end single vendor solution that provides more value as an integrated set than any best-of-breed implementatio

4、n 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 model,Marketing,Agenda,Organization of Business

5、Activities,Centralized VS. Decentralized Product lines VS. Business Lines Direct sales VS. Indirect channels Education and Training,Marketing,Agenda,Figure of Cisco IS organization,Figure of Cisco IT Spending,IT Infrastructure,During 1994, Cisco replaced its traditional financial, manufacturing and

6、order entry systems with Oracle ERP applications and Oracles Database at a cost of USD15million. In the follow-on two years, USD100 million series of initiatives to replace all IS applications and platforms worldwide. The high degree of standardization is Ciscos architecture gives the company a high

7、 degree of flexibility and efficiency.,Web-based Application,Aim to use the network as a foundation for applications linked to the core business systems. An Intranet supports employees at all levels. An Extranet links order processing to availability, to demand forecasting, to procurement, to produc

8、tion scheduling. The internet links configuration to order placement to billing to order tracking, and links customers to on another through problem-oriented use groups. Thus, the information sharing supports Ciscos own inventory and production processes, the forecasting needs of suppliers, and the

9、order and tracking needs of customers.,Web-based Application,Market place for net commerce by customers, resellers, partners. Technical Assistance, Software library, and Open Forum for customers, resellers, partners. Customer Service for nontechnical issues. Internetworking Product Center online ord

10、ering by authorized customers and resellers.,Internet- Cisco Connection Online (CCO),Web-based Application,What Cisco benefits from CCO?,Customer satisfaction is Ciscos ultimate focus. The close tie with the customer is the foundation of its business model and the source of it market power. Linkages

11、 between the order processing applications and Ciscos IT Infrastructure not only meet the customer needs timely and effectively, but also enables Cisco to forecast demand and react very quickly, essentially act as the extensions of Ciscos own internal systems.,Web-based Application,What Cisco benefi

12、ts from CCO?,Cost saving and avoidance In mid 1999, 77% of all sales were via the Internet. Annually $550 million achieved in reduced cost from transferring most of its business to the internet. Ciscos sales increased four-fold between 1995 and 1998, but its support engineers only doubled. Another 1

13、,000 support engineers have to be hired at $75 million annually without the web Technical Help Application.,(Cont),Web-based Application,Supply Chain Integration or sharing of forecast, order and inventory information. New Product Development sharing of design, test, ramp-up, quality and product spe

14、cification information.,Extranet- Cisco Supplier Connection (CSC),Supply Chain Management,Supply Chain Management,Results,Web-based Application,Intranet-Cisco Employee Connection (CEC),Employee self-service for travel benefits. Communication and distance learning. Collaboration and workflow manageme

15、nt Executive Information Systems and Decision Support Systems,Superior Employee Productivity,Marketing,Agenda,Business Model,The “value web” or strategic network model,Business Model,Pioneered by the direct sales, build-to-order strategies of Dell and been imitated by others in PC industry. Cisco fo

16、rged a critical relationship to its customers, by which it gain leverage over components suppliers and manufactures through its market power.,Business Model,At the hub of this strategic network is Cisco and its Customers, surrounded by companies and providing components, manufacturing, logistics, di

17、stributions and service, all coordinated by Cisco thereby increasing its market power.,Business Model,The key relationship is between Cisco and Customers in this network. The role acted by Cisco is a coordinator. Cisco takes advantages of low production costs provided by market transactions while si

18、mplifying its supplier and distribution networks to reduce coordination and costs.,Ciscos Strategic Use of IT,It demonstrate to customers, suppliers, 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 Innovations,Help your customers business and y

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