1. NEW WORLD, NEW RULES
SURVIVING, LEADING & THRIVING IN OUR NEW WORLD
Carlos Dominguez
Cisco Systems
Senior Vice President DRIVING BUSINESS EVOLUTION
Office of the Chairman and CEO
TECH NOWIST
Monday, July 25, 2011

2. Role
IC @ F
OFFRSE OCISCO
YEA
19+ AIRMAN & CEO
CH
Monday, July 25, 2011

3. “ ”
SELF-PROCLAIMED
TECH NOWIST
Leveraging the Present
Preparing for the Future
Monday, July 25, 2011

4. AGENDA
EXPLORE
OUR NEW WORLD
IMPLICATIONS
ON BUSINESS & LEADERSHIP
SUGGESTIONS
SURVIVE, LEAD & THRIVE
Monday, July 25, 2011

5. Agenda
EXPLORE
OUR NEW WORLD
4 Forces
Defining Our New World
Monday, July 25, 2011

6. EXPLORE
OUR NEW WORLD
FORCE #1
Rate & Speed of Change
Monday, July 25, 2011

7. POLL QUESTION?
“The World Is Changing at a
Comfortable Pace?”
Monday, July 25, 2011

8. SPEED AND PACE OF CHANGE: FACT OR FICTION
If Facebook were a country it would be the world’s third largest and
2 times the size of the U.S. population.
1 in 5 couples meet online;
1 in 5 divorces are blamed on Facebook.
More video was uploaded to Youtube in the last 2 months than if
had been airing new content 24/7/365.............. Since 1948
More people return home for their cell phone than their wallet
Carlos Dominguez is usually confused with Elvis...... not the fat one!
Monday, July 25, 2011

9. PREDICTION
Monday, July 25, 2011
THAN THE PREVIOUS 25
MORE CHANGE NEXT 3 YEARS
9

10. FORCE #2
Social Networking - “Power to the People”
Monday, July 25, 2011

11. Who Was Time Magazine’s
Person of the Year in 2006?
Monday, July 25, 2011

12. Who Was Time Magazine’s
Person of the Year in 2010?
Monday, July 25, 2011

13. The Power of WE
2006 2010
Monday, July 25, 2011

14. Oscar Morales
1 Million People
Against the FARC
12 MILLION PEOPLE IN 120 COUNTRIES PROTEST
Monday, July 25, 2011

15. Egypt
Youth Organized
Leveraging Social Media
Monday, July 25, 2011

16. FORCE #3
Contribution & Co-Creation Revolution
Monday, July 25, 2011

17. 17
Monday, July 25, 2011

18. How Many Man
a) 3 Million
Hours Are Invested b) 10 Million
In Wikepedia? c) 30 Million
d) 100 Million
Monday, July 25, 2011

19. Interesting Fact:
*100 M Hours = The number of hours American spend
every weekend watching television......Commercials
*Clay Shirky NYU Professor, Writer - Cognitive Surplus
Monday, July 25, 2011

20. TYPES
The Contribution Revolution - “Co-Creation Era”
New Business Models Emerging - Change Everything
Expertise: Software Code: Creative Expression:
Opinions & Ratings:
Wikipedia Firefox & Linux YouTube, Flickr
Zagats
Social Connections: Specialized Design & Capital Goods:
Facebook, Twitter Connections: Developments: Resource: eBay
Craigslist Threadless, Ryz Skype
Platforms That Allow Users To Contribute
Monday, July 25, 2011

21. Companies Born Into Change - “Crowdsourcing”
Facts:
- Founded 2000
- 50 Employees
- 30+ M Revenues
- Double Digit Growth
- 500,000 Community Members
- 120,000 Designers
- 10,000 orders / day
- 288,753 Likes on Facebook
- 1.6 M Twitter Followers
- 30 Avg. Age Employees
“Crowdsourcing“…a focus group on
a grand scale
21
Monday, July 25, 2011

22. FORCE #4
Net Generation - “100% Digital, All the Time
Monday, July 25, 2011

23. 1980 -1995 (80 M)
The New People Come Infected
With The New World.
NEW
WORKER
Monday, July 25, 2011

24. EXPLORE
OUR NEW WORLD
SUMMARY
Rate & Speed of Change
Social Networking - “Power of the People”
Contribution & Co-Creation Revolution
Net Generation - 100% Digital, All the Time
Monday, July 25, 2011

25. Agenda
IMPLICATIONS
ON BUSINESS & LEADERSHIP
CURRENT
ENVIRONMENT
Monday, July 25, 2011

26. What is your current business environment?
Challenges?
Monday, July 25, 2011

27. CEO IBM SURVEY OF
SURVEY 1500 CEOs GLOBALLY
KEY FINDINGS?
Monday, July 25, 2011

28. Organizations are experiencing significant upheaval
69% More volatile
Deeper/faster cycles, more risk
65% More uncertain
Less predictable
60% More complex
Multifaceted, interconnected
53% Structurally different
Sustained change
Source: IBM 2010 Global CEO Study To a large/very large extent
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
28
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

29. Organizations are experiencing significant upheaval
69% More volatile
Deeper/faster cycles, more risk
65% More uncertain
Less predictable
60% More complex
Multifaceted, interconnected
53% Structurally different
Sustained change
Source: IBM 2010 Global CEO Study To a large/very large extent
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
29
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

30. Organizations are experiencing significant upheaval
69% More volatile
Deeper/faster cycles, more risk
65% More uncertain
Less predictable
60% More complex
Multifaceted, interconnected
53% Structurally different
Sustained change
Source: IBM 2010 Global CEO Study To a large/very large extent
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
30
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

31. Organizations are experiencing significant upheaval
69% More volatile
Deeper/faster cycles, more risk
65% More uncertain
Less predictable
60% More complex
Multifaceted, interconnected
53% Structurally different
Sustained change
Source: IBM 2010 Global CEO Study To a large/very large extent
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
31
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

32. Expected level of complexity
CEOs agree complexity will only continue to rise
60%
Currently experiencing high/very high level of
complexity
79%
Source: IBM 2010 Global CEO Study
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
32
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

33. Expected level of complexity
CEOs agree complexity will only continue to rise
60%
Currently experiencing high/very high level of
complexity
Expect high/very high
79% level of complexity over
five years
Source: IBM 2010 Global CEO Study
© 2009 Cisco Systems, Inc. All rights reserved. Carlos Dominguez, SVP Cisco Systems 36
33
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential
Monday, July 25, 2011

34. Todayʼs complexity is only expected to rise,
and more than half of CEOs doubt their ability
to manage it.
Source: IBM 2010 Global CEO Study
Monday, July 25, 2011

35. A Telecommunications CEO in Brazil predicted
“ The services that account for 80 percent of our revenue today
”
will only be our second largest source of revenue in five years.
With few expectations, CEOs expect
continued disruption in one form or another.
Source: IBM 2010 Global CEO Study
Monday, July 25, 2011

36. NAME THE 3 EXTERNAL FORCES WHICH WILL HAVE THE
BIGGEST IMPACT ON YOUR ORGANIZATIONS?
Monday, July 25, 2011

37. Agenda
SUGGESTIONS
SURVIVE, LEAD & THRIVE
Monday, July 25, 2011

38. IN10 YEARS
OVER 40% OF THE
FORTUNE 500
WILL NO LONGER BE HERE*
*Babson Olin School of Business Advertisement, Fast Company April 2011, page 121.
Monday, July 25, 2011

39. NEW
SUCCESS WHAT DO YOU THINK?
CRITERIA?
Monday, July 25, 2011

40. POOR CUSTOMER
SERVICE
OUT OF SYNC
CUSTOMER
DIDN’T VALUE
EMPLOYEES
LACK INNOVATION
Philip Schoonover Brian Dunn
CEO of Circuit City CEO of Best Buy
Monday, July 25, 2011

41. Female Executive Challenged The Male Dominated Company
CHALLENGE: Only 16% of its customers are women
What it’s doing:
tapping its female employees for ideas on how to sell to women
Set up “Women’s Leadership Forums”
- Groups of female workers who meet regularly
‣ increase appliance sales by re-designing showrooms to resemble
kitchens
‣ new focus on women for smart phone sales
‣ market to moms who buy video games for kids
‣ Best Buy Mobile - mall-based, gadget stores
to access female shoppers in malls
‣ focused on women in Home Theater sales
Monday, July 25, 2011

42. Jim Keyes Reed Hastings
CEO of Blockbuster CEO of Netflix
Monday, July 25, 2011

43. Physical stores DVDs mailed to you Internet Video Streaming
no late fees
(and DVDs)
Good partnering!
Securing licensing deals
with content producers
Reed Hastings
Monday, July 25, 2011

44. Cinematch
Improve our movie recommendation
ratings by 10% and win $1 million
85%
Crowd source
Innovation
95%
35,000+ contestants, 180 countries
IRONMAN
Participate & Contribute
After ultrarich inventor and weapons maker Tony
Winners: 3 rocket scientists from AT&T Labs in NJ
Stark (Robert Downey Jr.) escapes from kidnappers
using makeshift power armor, he turns his invention
to good by using it to fight crime. But when he must
(8.4% improvement rate)
face the evil Iron monger, his skills are stretched to
the limit. Based on the Marvel comic, this captivating
superhero tale from director John Favreau co-stars
They’ve sinced gotten to 9.6%
Gwyneth Paltrow, Jeff Bridges and Terrence Howard.
Monday, July 25, 2011

45. Bennett S. LeBow Jeff Bezos
CEO of Borders CEO of Amazon.com
Predict the future
Leverage Assets
Monday, July 25, 2011

46. Sergio Marchionne Alan Mulally
CEO of Chrysler CEO of Ford
Bailout No bailout - Increase in share price
Monday, July 25, 2011

47. COMMON CHARACTERISTICS
PRODUCT LEADERSHIP CUSTOMER SERVICE
NIMBLE
OPER ATIONAL EXCELLENCE
ORGANIZATIONS
HARNESS ASSETS EMPOWERMENT
ACROSS ORGANIZATION &VALUE EMPLOYEES
FOCUS ON INNOVATION
CUSTOMER EXPERIMENT
CONTRIBUTION CONSTANTLY LEVERAGE
& FEEDBACK DIVERSITY
LEVERAGE
CULTURE OF TECHNOLOGY REWARDS
CHANGE IMAGINE THE
FUTURE CREATIVITY
Monday, July 25, 2011

48. “Tech Nowist”4 STEP PROCESS
Someone who EMBRACES CHANGE,
understands what technology is available,
EXPERIMENTS with it,
LEARNS from the experiments &
4
LEVERAGES it for a competitive advantage
Monday, July 25, 2011

49. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
Monday, July 25, 2011

50. Change is easy Intellectually
“Who Likes Change?”
But... Very hard emotionally!
Monday, July 25, 2011

51. “If you had to change your life patterns
to avoid death could you do it?”
Monday, July 25, 2011

52. QUESTION?
WHAT % OF PATIENTS CONFORM TO A HEALTHY
LIFESTYLE AFTER A HEART ATTACK?
A)10%
B)20%
C)30%
D)40%
Monday, July 25, 2011

53. 20%
LACK OF URGENCY
CHANGE CHALLENGE 1
Monday, July 25, 2011

54. Is it easier to change during
a crisis or during good times?
Monday, July 25, 2011

55. CHANGE
SUMMARY
Lack of urgency
Don’t see it
Familiarity
Wrong perception
Monday, July 25, 2011

56. CHANGE
“ IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVES, NOR
”
THE MOST INTELLIGENT, BUT THE ONE THAT IS MOST RESPONSIVE
TO CHANGE
-CHARLES DARWIN
Monday, July 25, 2011
ATTENTION

57. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
Monday, July 25, 2011

58. WHAT’S YOUR
POLICY ON SOCIAL
MEDIA?
Monday, July 25, 2011

59. GUIDE YOUR EMPLOYEES
http://wwwin.cisco.com/cisco/ccoe/
Monday, July 25, 2011

60. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
Monday, July 25, 2011

61. EXAMPLE
Monday, July 25, 2011

62. TIMELINE
2000 - Kodak vows to lead in digital
2005 - Kodak ranked #1 in digital camera sales
- Surged 40% to $5.7B
- Film fell 18%
Monday, July 25, 2011

63. WHAT HAPPENED?
Low margins on camera’s / high margin on film
Crushing profit disappointment
Monday, July 25, 2011

64. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
Monday, July 25, 2011

65. Arthur C. Clark
Predicting the future
in 1964
Monday, July 25, 2011

66. IMAGINE THE FUTURE
1. Conduct research - hire / buy
2. Brainstorming sessions - inside and outside
3. Listen, listen, listen
4. Dialogue with cutting edge thinkers
5. Understand technology - what’s available and what’s coming
6. Attend conferences
7. Constantly ask - what if?
8. Be curious
9. Be enthusiastic
10. Take time to think..... quietly
Monday, July 25, 2011

67. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI
Monday, July 25, 2011

68. Experimentation is key:
Prototype a lot, fail often, and fail early
Monday, July 25, 2011

69. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI
6. LEVERAGE TECHNOLOGY
Monday, July 25, 2011

70. Monday, July 25, 2011

71. 7 SUGGESTIONS
SURVIVE, LEAD & THRIVE
1. EMBRACE CHANGE
2. EMBRACE SOCIAL MEDIA
3. FOCUS ON DISRUPTIVE INNOVATION
4. IMAGINE THE FUTURE
5. EXPERIMENT VS ROI
6. LEVERAGE TECHNOLOGY
7. IMPLEMENT EFFECTIVE COLLABORATION
Monday, July 25, 2011

72. “KILLER APP”
Collaboration
Monday, July 25, 2011

73. “ A power shift is underway, and a tough
business rule is emerging.
Harness the new collaboration or perish.
Those that fail to grasp this will find
themselves ever more isolated.
”
Don Tapscott
Author of Wikinomics
14184_11_2007 © 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 73
Monday, July 25, 2011

74. “WHY COLLABORATE?”
The goal of collaboration is not collaboration, but great results.
Monday, July 25, 2011

75. TECHNOLOGY
FRAMEWORK FOR
EFFECTIVE
COLLABORATION
PROCESS CULTURE
Monday, July 25, 2011

76. Hunt for Value Across I.C.E. - Cisco Examples
Cross-unit product innovation
New business creations
INNOVATION
PRODUCT - TELEPRESENCE / WEBEX INTEGRATION
NEW BUSINESS -IPRIZE - CROWDSOURCING
Cross-selling, better coordination
Better customer service by coordination
CUSTOMERS
CUSTOMER SERVICE - WEB PROPERTIES - / SELF SERVICE
CROSS SELLING - DATA CENTER - PARTNER COMMUNITY
Costs/investments savings by coordinating/sharing
Better decisions by getting input
EFFICIENCY
WEBEX
MORTEN HANSEN - “COLLABORATION”
Monday, July 25, 2011

77. Thank you.
Monday, July 25, 2011