CISCO – INNOVATION AS THE

ENGINE OF GROWTH
 Introduction

• Cisco Systems Inc. is one of the worlds leading technology

companies.
• It was founded in 1984.
• It had a reputation of being one of the most innovative
companies.
• Introduced the first ever multi-protocol router which fueled the
growth of the internet.
• Cisco’s model of innovation consisted of four pillars :- Build,
Buy, Partner and Integrate.
• Fortune magazine placed Cisco at 49th place on the list of the
‘Most admired companies’ where innovation was a major
criteria for listing.
 Background
• Cisco was founded by Len Bosack and Sandra Lerner.
• The name “Cisco” was derived from “Francisco”, the
company being incorporated in the San Francisco Bay area.
• In 1986, the company introduced its first product, a multi-
protocol router called the “Advanced Gateway Server” for
the TCP/IP protocol suite.
• In 1987, Cisco received funding from “Sequoia Capital”.
• In 1989, the company offered three products and made
annual revenue of US$ 27 million.
• In 1990, the company had its IPO and achieved a market
capitalization of US$224 million.
• Len Bosack and Sandra Lerner sold their stock for US$
100 million and quit the company.
• In 1991, Jon Chambers joined as a Senior Vice President
(worldwide sales and operations) and later went on to become
the CEO in 1995.
• In 2000, Cisco achieved a market capitalization of US$ 450
billion, making the third most valuable company in the world.
• Cisco classed its technologies into three categories namely,
Foundation Technology (FT)(routing and switching),
Advanced Technology (AT)(wireless, optical, security etc.)
and Emerging Technology (ET)(telepresence, digital media
etc.).
• As of 2013, the company had an annual revenue of US$ 48
billion and market capitalization of US$ 95 billion.- It has
more than 10,000 US patents and more than 13,000 patents
worldwide.
 PRODUCT LINE
CISCO

Wireless &
Networking Security Collaboration Data center Analytics
Mobility
Switches Access Email Storage
Conferencing Data
Point Security networking
• Catalyst 9400 • Aironet Analytics
• MDS 9700
• MDS 9000 2800
• Meraki Web Customer • MDS 9100
Routers MR55 Scurity Care Data
Outdoor & Virtual
• ASR 1000 Centre
industral networking
• ISR 4000 Analytics
Wireless • Aironet • Nexus 1000
1540
• Antennas
• Aironet
• Mobile
1570
Internet
 Building Innovation
• Cisco Spent around US$ 5.5 Billion on Research &
Development.
• Employees needed to work and develop products in
collaboration with each other.
• Collaboration with an Israeli telecom service provider.
• Cisco Research Center(CRC).
• Reverse Innovation.
R&D and Manufacturing for Life Sciences

Improve research productivity Streamline operations and processes

Improve the patient experience Mitigate security risks

 Employee Driven Innovation

• Company took measures.

• Innovation academy setup.
• Developed an innovation portal.
• 3 C’s of Cisco.
• ‘Builders of Tomorrow’ initiative.
• ‘Accelerated Development Program’.
 Innovation Through Spin-In
• Cisco encourage innovative and entrepreneurial spirit
• Cisco allowed its employees to leave the company and set up
their own company and produce innovative products and
technologies.
 Innovation Through Partnership

• Cisco leveraged partnership with external programs

• Cisco undertook several innovation programs and innovation
centers
 Innovation through acquisition
• The next billion dollar idea can come from anywhere and thus
Cisco started cultivating ideas internally and externally
• New technologies and business models
• Bring assets to the company in the form of technology, great
talent, products and solutions.
• Cisco segments acquisition into three categories :-
 Market acceleration
 Market expansion
 New market entry
• Getting large part in technologies through acquisitions rather
than developing them in house
 Entrepreneur in residence
• Cisco’s EIR is a investment platform to lookout for the new
potential talent
• Cisco’s EIR is designed to support the early stage startups
working on the new ideas and technologies in the IOT
• The Venture Capitalists were fearful to tread in this business
ideas
• Cisco EIR, at its core, solves the three fundamental challenges
– the “ABC” – of startup-corporate partnerships
 A - Agility
 B – Business model
 C – Continuity
• The BIG programme in the UK help set up 150 startup
companies in the UK and it brought a initiative of the
“National Virtual Incubator”.
 Innovation through integration

• After acquisitions and supporting the startups the next step is

to integrate them with the Cisco's ecosystem.
• Formalized and centralized integration management through a
designated team in Cisco Business Development group.
• Cross functional teams for each acquisition that plan, manage
and monitor integration activities across Cisco.
• SOP, metrics, tools and methods that can be repeatedly applied
to new integration
 Competitions and Challenges
• Cisco organize numerous competition by which it leveraged
the “ Wisdom of the crowds”.

• Also in 2007 Cisco started the I-prize competition with one

mission to harness innovation and growth for better business
opportunities.

• Cisco organized “BIG AWARD COMPETITION” to support 3

promising startups in the UK.

• In 2014 company conducted “Cisco IOT Innovation Grand

Challenge” & also conducted “IOT Security Grand Challenge”
on similar lines.
 Looking Ahead…

• Cisco claimed that around 70% of the internet was run using
its technology.
• In 2011, Cisco had a turnaround plan to boost profit by cutting
jobs.
• Also the company focus on new areas of business which
includes teleconferencing and cloud computing.
• Cisco planned to focus on IOT- ready networking standards &
gear.
• Also for 2015-16 Cisco have planned to spend US£ 150
million on theme based investments on various areas.
PRESENTED BY :-

BHAWESH AGARWAL – 18BSP3472 (LEADER)

SWAPNIL KELGINMATH – 18BSP3364
SUMIT GUPTA – 18BSP3353
HASAN SAIF NURANI - 18BSP4136
NIKITA BHARGAVA – 18BSP4127
NIHAR RANJAN – 18BSP3553