Strategic Partnerships: Cisco's Approach

Strategic Business Partnership Ayelet Baron WW Sales Strategy & Planning March 2003

Agenda Case Studies Strategies For Success Q&A About Cisco Becoming A Strategic Partner

History of Cisco Systems Started at Stanford IPO; 192 Employees End-to-End Solutions Provider Cisco Routers Power the Internet; LAN/WAN Switching, Remote Access #1 Communications Equipment Supplier Shipped First Router $18.9 Billion Revenue; 34,000 Employees; IP Telephony, Security, Wireless, Networked Home 1998 1984 1986 1990 1994 2002 2003

Cisco Products ,[object Object],[object Object],[object Object],[object Object]

Foundational Principles Profit Contribution Market Transitions Open Communication Empowerment Trust/Fair/Integrity/Giving Back Teamwork Drive Change Fun

CEC: Cisco Culture and Business Ownership Cisco University The New Cisco Employee Connection (CEC) – worlds coming together: Content, Tools, Communication and Technology

Executive Communication – Senior Leaders Are Seen and Heard ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Video on Demand

Global Communication Portals Inform All Employees ,[object Object],[object Object],[object Object],[object Object]

Multiple Role-based Portals for Varying Audience Needs ,[object Object],[object Object],[object Object],[object Object],[object Object],Benefit: Ensures access to information for each role and function

“ I’m never having kids. I hear they take nine months to download.”

Cisco’s Financial Benefit from IT Financial Impact FY ’95 FY ’03 FY ’96 FY ’97 FY ’98 FY ’99 FY ’00 FY ’01 FY ’02 ,[object Object],[object Object],[object Object],[object Object],$1B Departmental $3B ,[object Object],[object Object],[object Object],$1.9B $2.1B $1.7B Inter-Enterprise $2B ,[object Object],[object Object],[object Object],[object Object],[object Object],$900M Enterprise

Core and Context Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Contributes Directly to Competitive Advantage Required to run the business and fulfill commitments Shortfall risks company's operations

Out-Tasking Versus Out-Sourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2004 Cisco Systems, Inc. All rights reserved.

Investment and Partnering Strategy Core Context © 2004 Cisco Systems, Inc. All rights reserved. Mission Critical Non-Mission Critical Invest Retain In-house Drive Productivity Strategic Partners (Few, Tightly Coupled) Focused Investment Specialist Partners Control Costs Vendor Management (SLAs Driven)

Relative Cisco Functional Out-Tasking Manufacturing Sales HR Finance % Out-Tasked © 2004 Cisco Systems, Inc. All rights reserved. 8712_09_2003 IT Customer Service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What is A Strategic Business Partner? Business Alignment Strategy Process Change Agent Trusted Advisor Productivity Customer, Employee and Shareholder Value

Necessary Transition Order Taker ,[object Object],[object Object],[object Object],[object Object],[object Object],Trusted Advisor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2003, Cisco Systems, Inc. All rights reserved. Change Agent Language Relationships Business Impact

Roadmap Set It up Right Prove the Value Get Invited Create the vision, determine the approach and get the right people on board Show success through bottom line results Be there when the strategy & initiatives are decided and scoped Change the Way You Work ,[object Object],[object Object],© 2003, Cisco Systems, Inc. All rights reserved.

Case Study #1 Collaborative Problem Resolution

Business Problem Inconsistent global methodology to identify, prioritize and address complex business problems resulting in inefficiency, productivity loss and lack of cross-functional teaming, and issues not getting resolved Our Opportunity: Having the methodology in place to solve complex, cross functional business issues in a short window of time © 2003, Cisco Systems, Inc. All rights reserved.

What is the Collaborative Problem Resolution (CPR) Process? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2003, Cisco Systems, Inc. All rights reserved.

Key Elements of CPR The 4P’s P latform P roblem P rocess P eople

Key Components of CPR Identifying the Right Problems to Focus on the Highest Prioritized Business Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Getting the Right People Organized in the Right Way is Key © 2003, Cisco Systems, Inc. All rights reserved.

Key Strategic Drivers Results and People Should Be Showcased at the Right Platforms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Getting the Right Process in Place that Can Be Leveraged and Scaled Globally is Critical © 2003, Cisco Systems, Inc. All rights reserved.

CPR Benefits © 2003, Cisco Systems, Inc. All rights reserved. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Business Problem Checklist ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2003, Cisco Systems, Inc. All rights reserved.

Cisco’s IT Evolution ,[object Object],[object Object],[object Object],[object Object],IT as Cost Center CFP& ERP Internet Enabler Outcome Defined Trusted Business Partner Value Creation Proactive Reactive 2000 1997 1993-95 1991 IT Supports Business Strategy IT Enables New Capabilities and Roles Business Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Business Challenge ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Change Management Framework DESIRED STATE SPONSOR COMMITMENT SKILLS CULTURAL ALIGNMENT RESISTANCE P A I N COMMITMENT TIME SYNERGISTIC RELATIONSHIP R EM E D Y PLAN TRANSITION RISK AREAS Frame of Reference PRESENT STATE

IT Strategic Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Stages Transform Implement Plan & Engage Assess 1999 2002 2000 Focus & Investment

Client Feedback IT Performance vs. Business Need Example 0.8 0.9 0.7 1.1 0.8 1.0

Change Readiness Assessment—Internal Key Risk Areas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],S P O N S O R S H I P RESISI TANCE COMMUNICAT ION SKI LLS

Internal Assessment Risk Area: Sponsorship IT Senior Staff ... IT Senior Staff Supports This Change... Example

Behavior Change Commitment ,[object Object],Understanding Translation Commitment Internalization

Communication Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SYSTEMS/PROCESSES MEDIA LEADERSHIP

IT Connection Mission ,[object Object]

IT Connection Roadmap ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Client Satisfaction Mean 4.2 Mean 3.8

Partnership Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sponsorship & Communication Where are we now? Where do we want to be? How will we get there? Who must do what? How are we doing?

Engagement Model Business Partnership is a relationship of mutual trust and influence built on shared ownership of and complementary contributions to business results Ensure Successful Implementation Assess Business Needs & Gaps Identify key Initiatives Leverage Resources Create Actionable Game Plans

The New Agenda ,[object Object],[object Object],[object Object],[object Object]

Questions to Consider ,[object Object],[object Object],[object Object]

Questions to Consider ,[object Object],[object Object],[object Object],[object Object]

“… chance favors only the prepared mind.” — Louis Pasteur FY’04 FY’05 FY’06 FY’07

Strategic Partnerships: Cisco's Approach

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Strategic Partnerships: Cisco's Approach