23
State of California CIO Academy I ti Bi B ldi T h Ti Innovation – Being Bold in Tough Times Gary Christofferson Senior Manager 1 Senior Manager California Public Sector [email protected]
State of California CIO AcademyI ti B i B ld i T h TiInnovation – Being Bold in Tough Times
Gary ChristoffersonSenior Manager
1
Senior ManagerCalifornia Public [email protected]
Innovation at Cisco
Technology and ProductsPeople and CultureProcesses and Business Models
2
Cisco Technology Innovation – Build, Buy, Partner
Develop New TechnologyDevelop New TechnologyR&D TeamR&D Team::$$5.3 5.3 B B annuallyannually23,000+ 23,000+ employeesemployees
TelePresenceIP Telephony Unified Computing
TelePresenceIP Telephony Unified Computing
Vblock EMC and VMWareVblock EMC and VMWare
Partner w/ Other CompaniesPartner w/ Other CompaniesStart New Business ModelsStart New Business Models
LinksysLinksys
,, p yp y
Vblock – EMC and VMWareFlexPod - NetAppVblock – EMC and VMWareFlexPod - NetApp
Linksys, WebEx/Meeting PlaceVirtual Computing Environment
Linksys, WebEx/Meeting PlaceVirtual Computing Environment
Design New ProductsDesign New Products
CRS-1 CRS-1
AcquisitionsAcquisitions
140+ Acquisitions140+ AcquisitionsASRISRNexus
ASRISRNexusAndiamo (SAN)
NuovaAndiamo (SAN)Nuova
Spin in InvestmentsSpin in Investments
3
Wharton Study: Evolution of the Components of Innovation
Cisco’s innovation
BuildBuild PartnerPartner
model has evolved beyond the 3 “Build –Buy – Partner” pillars
Collaborationinternally and CollaborateCollaborateinternally and externally with customers and partners is essential
CC
BuyBuyfor innovative leadership going forward
4
Cisco’s Cultural Transformation
Lines Of
Business
DynamicNetworked
Organization
Culture of
Business
CEOCEOCEOCEO
Organization
Culture of Competition
Culture of Shared Goals
EnterpriseSP Commercial Small
5
01 02 03 04 05 06FY00 07 08 09 FY10
Organizational ModelCouncils/BoardsCouncils/Boards
CDO
Operating CommitteeOperating Committee
Emerging Solutions CouncilEmerging Solutions Council
CDO
Sales5 Segment CouncilsCustomer Relevance
EntEnt SmallSmall ConsConsCommComm SPSP
Innovation
4 Cross-Segment Councils
Connected Architecture CouncilConnected Architecture CouncilOps
Svcs
Operational Excellence
Connected Business Operations CouncilConnected Business Operations Council
Emerging Countries CouncilEmerging Countries Council
Fin
Mktg
6
Innovation at Cisco Processes and Business Models ExamplespBusiness Transformation
Evolution of Management ModelLines of Business to Boards and Councils
– Accelerate growth, share and expedite decision makingg
– 9 Councils – 40+ Boards (Public Sector => Enterprise Council)
VSE + M Facilitates Effective CommunicationA b l– A common vocabulary
Enhanced Engagement Builds Trust– TelePresence(TP) Systems established with Top
Customer Accounts– TP Systems established with global Contract
Manufactures within our supply chain• Cisco Supply Chain Inter-company
Telepresence Exchange Program – TP Systems established with Research Partners
7
TP Systems established with Research Partners
Innovation at CiscoCollaboration Accelerates the Process
Find FilterOC
Go-to-MarketOC
CouncilsAccelerate
Boards
Cross FunctionalTi T
• Team building science
Tiger Teams
• All relevant functions• Open to entire company
C ll b ti k
• Open to entire company
C ll b ti k
I-Zone WikiI-Zone Wiki ALF PartnershipALF Partnership Tiger TeamsTiger Teams
• Two teams per idea –keeps hope alive
• Shared advocacy as a team to take a position to
• Exposure to SVPs
• Facilitated meetings so diverse expertise is heard
• Collaborative workspace: employees create, comment and/or modify ideas
I Prize Contest
• Collaborative workspace: employees create, comment and/or modify ideas
I Prize Contest
8
team to take a position to “jury” (SVPs)
I-Prize Contest• Open to public• http://www.cisco.com/web/solutions/iprize/index.html
I-Prize Contest• Open to public• http://www.cisco.com/web/solutions/iprize/index.html
T lLeveraging Collaboration to Accelerate Innovation
Telepresence
T l D t ( i 11/1/2009)Telepresence Data (since 11/1/2009)980+ rooms at Cisco235 cities across 60 countries850K+ meetingsg177,000 trips avoided$776M travel cost avoided $291M productivity cost savings
9
419 Metric tons of emissions avoided64% Avg. Utilization (8 hr. business day)
Cisco Internal Beta Program - ACECisco Internal Beta Program ACE
Advanced Communications EnvironmentP t hi b t P d t BU IT d S l– Partnership between Product BU, IT, and Sales
– Pre-production deployment of new voice and video technology– Feedback to IT and BU requiredq
10
WebEx w/ VideoIP T l h / Vid I t tiIP Telephony w/ Video Integration
11
Thank You
12
Changing the Way We WorkChanging the Way We Work
How Cisco Employees’ Work Is Changing63% of time is spent communicating and collaboratingCollaborative work is more often virtual (35%) than face-to-face (28%)
Cisco Technology Enabling Mobile, Collaborative Work “Styles” 56% of work is done away from their Cisco desk43% have a remote managerg85% telecommute part of the time24% of work is done from home, 48% outside business hours
Mobility Maximizes Productivity and Achieves Work/Life IntegrationAverage commute time is 1.4 hours a dayEmployees report being more productive outside the office
13
Employees report being more productive outside the office70% would prefer to work from home at least two or more days a week
Why Collaboration?Productivity GainsProductivity Gains
$1 OPEX =$1 OPEX
1997-2001 2002-2009
T h lT h l
Revenue $2.06 $2.42
TechnologyTechnologyNet
Income $.18 $.46
ProcessProcess CultureCulture
Market ShareLeadership
2Categories
9Categories
14
Cisco Video Services Offerings
Experience TypeExperience Type Video End Point SelectionVideo End Point SelectionImmersive Three Screen TelePresence
CTS3010, CTS T3Three Screen TelePresenceImmersive Single screen TelePresence
CTS 1100, CTS T1, CTS 500
Immersive Multipurpose CTS1300 Profile 65Immersive Multipurpose TelePresence
CTS1300, Profile 65
Multipurpose TelePresence Profile 52, Profiles 42
Desktop Video Conference (Shared)
EX90 , MXP1700, EX60
S ft Cli t MOVISoft Client(Shared)
MOVI, Connect w/ UC Video
IP Video Telephony(Sh d)
Cisco 9951 / 9971
15
(Shared)Cius
Urban Entertainment Institute at LAUSD
16
http://urbaninst.com/ http://il.youtube.com/watch?v=DkUSf134B74
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 17
Innovation at Cisco The Cycle of InnovationThe Cycle of Innovation
MMDeployDifferentiation
at Scale
DeployDifferentiation
at Scale
ManageMission-criticalProcessesat Scale
ManageMission-criticalProcessesat Scale
AdvancedAdvancedTechnologyTechnology
FoundationFoundationTechnologyTechnologyat Scaleat Scale
2. Deploy2. Deploy
1 Invent1 Invent
3. Manage3. Manage
4 Offload / Repurpose4 Offload / Repurpose
gygy gygy
InventDifferentiated
InventDifferentiated
ExtractResourcesExtractResources
1. Invent1. Invent 4. Offload / Repurpose4. Offload / Repurpose
EmergingEmerging ReinventReinventFundingFunding
Differentiated Offering
Differentiated Offering to Reinvest
for Coreto Reinvestfor Core
TechnologyTechnology TechnologyTechnology
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 18
Innovation at CiscoOverview
Patents* – 6,000+ patents granted worldwide to date– 9,000 pending patent applications worldwide to date, p g p pp– In FY09 H1, 500 patents granted worldwide and 500 applications filed
worldwideCisco R&D Spend as % of Revenue is above average vs. Peers
13%
8 4%
14%12.8%
15.2%
CiscoCisco
8.4%
3.4%6%
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 19
IBM Microsoft Google IntelInnovationInnovationAvaya
* As of the end January 2009• Source: Yahoo Finance, Company Financial Statements FY08
Apple
Innovation at Cisco Product and Technology: Silicongy
Cisco develops custom silicon ascustom silicon as advanced as recognized industry leaders
We have developed QFPchip
siz
e)
We have developed over 150 customized ASICs and 10 on the CRS-1 alone
QFP800M transistors
UltraSPARC T2500M transistorsili
tym
etal
laye
rs,
The Cisco Quantum Flow Processor (QFP) is a market leader with over 800M transistors
Pentium442M transistors
Athlon
500M transistors
ssor
Cap
abi
nsis
tors
, # m
Company & Processor
37.5M transistorsUltraSPARC III29M transistors
Proc
es(#
tran
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 20
p y
QuantumFlow / QFP comprises 2 chips: ‘Spinach’ and ‘Popeye’ that result in the totals displayed.
Cisco Innovation Drives Industry Standards
HSRP Tag
RSRBHSRP
InlineP
CDPISLNetFlow
TagSwitchingMISTP
EtherChannel
iSCSI
1990 1992 1998 200019961994 2002 2004
S
DLSw 802.1qVRRP
Power
802.3af
ISL
MPLS802 1
MISTP
iSCSIDLSw VRRP LLDIPFix
802.1s802.3ad
BGP BGP
iSCSI
BGP BGPPAGP LACPQ-in-Q 802.1adGCM 802.1ae
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 21
GCM 802.1aeCDL 802.3ah
Cisco Technology Innovationgy
Cisco creates new technology based on customer requirements including features where no standard exists.equ e e s c ud g ea u es e e o s a da d e s sExample Cisco feature innovations and what they became:
Cisco Feature (Pre-standard) What Standard they BecameCi IGRP / EIGRP OSPF d RIP 2Cisco IGRP / EIGRP OSPF and RIP v2Cisco Inter Switch Link (ISL) 802.1QCisco UplinkFast/BackboneFast 802.1wCisco Multiple Instance Spanning Tree (MIST) 802.1sCisco CGMP IGMP SnoopingCisco HSRP VRRPCisco Tag Switching MPLSCisco EtherChannel 802.3adCisco EtherChannel 802.3adCisco Virtual Trunk Protocol (VTP) GVRPDPT / SRP Resilient Packet Ring (RPR)
NetFlow Version 9 IPFIX
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 22
• Cisco also supports all standards based features in products when they are ratified.
23© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential
