James Macaulay
Director
How the CDO enables Cisco to deliver new value to customers in a digital world
Cisco Digitization Office
Disruption Demands Business Model Innovation
Cost Value Experience Value Platform Value$
*Disruption = Substantial change in market share among incumbents
Nearly
40%market incumbents
displaced
3years
expected time to
disruption*
… and Operating Model Reinvention Every 18-24 Mos.
Network
Data Center – IoT Infrastructure – Cloud
Orchestration – Data & Analytics
Collaboration – IoT Apps – Security
New Customer Value
Te
chn
olo
gy F
ou
nd
atio
nB
usin
ess E
nab
lers Partner
Ecosystem
Business
Processes
Physical
Assets
Culture &
Talent Offerings
The CDO Role at Cisco
Business Model Innovation
Operating Model Reinvention
EXECUTION
RELATIONSHIPS
CULTURE
CRITICALTHINKING
KellyKramer
Chief FinanceOfficer
JoeCozzolino
SVP, Services
ChrisDedicoat
SVP, WorldwideSales
Kevin Bandy
Chief DigitalOfficer
FrancineKatsoudas
Chief PeopleOfficer
Dr. Ruba Borno
VP GrowthInitiatives &Chief of Staff
Karen Walker
Chief MarketingOfficer
HiltonRomanski
Chief Strategy Officer
Biri Singh
Chief TechnologyOfficer
PankajPatel
Chief DevelopmentOfficer
CHUCKROBBINS
CEO
VISIONAUTHENTICITYEXECUTION
TEAM RESULTS
TRUST
OPERATIONALEXCELLENCE
DIGITIZATIONPASSION
DISRUPTION
TECHNOLOGY
INNOVATION
Cross-FunctionalInterlock
Mark Chandler
SVP & GeneralCounsel
RebeccaJacoby
SVP, Operations
Reimagine Value
for Our Customers
Reimagine Work
at Cisco
Stages of Digitization
Differentiate
New User Experiences, Products, Services
Accelerated Product, Services, and Business Process Innovation
Distributed Connectivityand Intelligence
2.0
Redefine
Business Model Innovation / Industry Transformation
Machine 2 Machine / Augmented Decisions /Self Learning Analytics
New Growth andConstant Innovation
Enable
IT Agility and Increased Productivity
Reduced Tech Costs(Opex and Capex)
Faster Response Timesto Customer Needs
7 Standard Customer-facing Business Models
Consumption Options Fuel Customer Business Outcomes
On-premise Hardware +
Features
1 Perpetual Software (with
Annuity)
Subscription Software
2
3
Software as a Service
Managed Services / Services as a
Service
4
5
Hybrid (SaaS, HW, SW, Services)
Embedded Solutions (SaaS, HW, SW,
Services)
6
7
Our Approach to Building the New Operating Model
SecuritySimplification AutomationMonitor &
AdaptContinuous Innovation
Articulating Digitization Roadmap for Customers
The Market Is Recognizing Our Momentum
“Cisco jumps after forecast signals success in
business shift.”
“Cisco profit margin outlook bullish as business
model shifts.”
“The company had incredible earnings and
investors were thrilled… with deferred product
revenue up 9% driven largely by subscription-
based and software revenue.”
“Cisco is continuing to move in the right direction
highlighted by solid margin performance and
improving business mix.”
“Cisco continues to execute a multiyear
shift to a software-centric, subscription
business model.”
Revenue
3%
Earnings Per Share
6%
Software & Recurring
Subscription Business
36%
Lessons Learned