CIO Strategies for The Next Generation Customer …...John’s Measures of Success •Growth/Flexibility (markets) •Experience (key processes) •Next Wave of Productivity •Time

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

CIO Strategiesfor The NextGeneration CustomerExperience

Rebecca JacobySVP, Chief Information Officer


John’s Measures of Success

• Growth/Flexibility(markets)

• Experience (key processes)

• Next Wave ofProductivity

• Time to Capability

ENABLE SPECIFICALLY

• Global Network andDate CenterStrategy

• Network as thePlatform

• New BusinessModels

FIX/Raise The Game

• OperationalExcellence

• Leadership Team• IT as a Strategic

Partner


Cisco’s Unique Value Proposition

Business Architecture

Technology Architecture

Network as the Platform


Business Architecture

Technology Architecture


Cisco IT Value Proposition

Enable Every Move We Make With IT


The Three Eras of IT at Cisco

Motivator

Technology

Network

Transaction

Internet

Network ofNetworks

Empowered UserProcessWebEra



Motivator

Technology

Network

Transaction

Internet

Network ofNetworks


Transformational

E-Commerce

EmployeeSelf-Service

Virtual Close



Motivator

Technology

Network

Transaction

Internet

Network ofNetworks

Interaction

Convergence

IntelligentInformationNetwork


Transformational

E-Commerce


Virtual Close



Motivator

Technology

Network

Transaction

Internet

Network ofNetworks

Interaction

Convergence



Transformational

E-Commerce


Virtual Close

Sustainable

UnifiedCommunications

Supply ChainEcosystem



Motivator

Technology

Network

Transaction

Internet

Network ofNetworks

Interaction

Convergence


Experience

Web 2.0

HumanNetwork


Transformational

E-Commerce


Virtual Close

Sustainable





Motivator

Technology

Network

Transaction

Internet

Network ofNetworks

Interaction

Convergence


Experience

Web 2.0

HumanNetwork


Transformational

E-Commerce


Virtual Close

Sustainable



Transformational

Commerce andServices OrientedArchitecture

Enterprise ClassCollaborationTechnologies

Service OrientedData Center


Differentiating IT: Strategic Levers

Value Center

Architecture

Collaboration



Value Center

Architecture

Collaboration


Productivity

Growth

Experience

Positioning the IT Organizationto Execute for Value

Measuring Success

Strategies

BusinessCapabilities

OperationalFunctionality


CIOs Can Change the Ratio

Business Capabilities

Strategies

Operational Functionality

Source: Cisco Adapted from Gartner

61%

18%21%% of IT Budget

2007


CIOs Can Change the Ratio


Strategies


Source: Cisco Adapted from Gartner

55%

21%24%% of IT Budget

2010


Cisco IT Goal


Strategies


Source: Cisco

33%

33%33%

% of IT Budget

Cisco 3-5 Years


Cap

abili

ties

Arc

hite

ctur

eCIOs Value Proposition: Communication

Technology/Business Architectures

New BusinessProcess

Growth/Productivity Strategies

Vision/Strategy

IT/Program Progress,Capabilities

CIO CEO


Cap

abili

ties

Arc

hite

ctur

eCIOs Value Proposition: Communication

Technology/Business Architectures

New BusinessProcess

Growth/Productivity Strategies

Vision/Strategy

IT/Program Progress,Capabilities

CIO CEO

CIOSynchronizer


What Does the BusinessReally Want?Q:

More. Faster.


Accelerating Value Over Time:Unified Communications

Strategy

1 Year 2 3 4 5 6 7 8


OperationalExcellence

• 40,000Phones

• IPT

• 60,000Phones

• Unity

• 60,000Phones

• Unity

MeetingPlace

VideoCUVA

• MeetingPlace

• VideoCUVA

• 60,000Phones

• Unity• Meeting

Place

• 60,000Phones

• Unity

• Video Meeting Place• IP Communicator• Cisco Uniformed

Presence Server• Orative

Unified Communications Revenue Unified Communications Cost


Accelerating Value Over Time:Unified Communications

Strategy

1 Year 2 3 4 5 6 7 8



• 40,000Phones

• IPT

• 60,000Phones

• Unity

• 60,000Phones

• Unity

MeetingPlace

VideoCUVA

• MeetingPlace

• VideoCUVA

• 60,000Phones

• Unity• Meeting

Place

• 60,000Phones

• Unity

• Video Meeting Place• IP Communicator• Cisco Uniformed

Presence Server• Orative

Unified Communications Revenue Unified Communications Cost


Accelerating Value Over Time:TelePresence

1 Year 2 3 4 5 6 7 8

• 210 Cisco TelePresenceGlobally (multi-point)

• B2B Certifications for 3 SPs• B2B Five Customers/Partners

• Cisco 3.0

Timeframes are

Shrinking

Strategy



• 110 CiscoTelePresenceGlobally (single point)

• Multi-point pilotcomplete


ValueCenter

The Journey from Cost Centerto Value Center

CostCenter

Faster

Give Them WhatThey Want

Understand theBusiness



Value Center

Architecture

Collaboration


Architectural Transformation

Architecture Isthe Blueprint thatDetermines TIMEto BusinessCapability


Governance,Standardization

IT Enablement Architecture

Flexibility,Personalization

Consumer

Globalization Regulatory

SecurityLegacy Systems





Consumer


SecurityBusiness ProcessCommon Business

Services





Consumer


Security


Service Oriented Arch.

Collaboration Tools


Procter and Gamble: Example

35%of New ProductsHave Elements thatwere DevelopedOutside of P&G

45%of Initiatives inDevelopment HaveElements that wereDiscovered Externally

60%Increase in R&DProductivity

1.5M People Outside


Procter and Gamble: Example

35%of New ProductsHave Elements thatwere DevelopedOutside of P&G

45%of Initiatives inDevelopment HaveElements that wereDiscovered Externally

60%Increase in R&DProductivity

1.5M People Outside“Our global networks are the platform for the activitiesthat, together constitute “the connect and develop”strategy. But networks themselves don’t providecompetitive advantage…Its how you build and usethem that matters.”Procter and Gamble from Harvard Business Review, March 2006


How Do You Get People toUse Technology to AchieveBusiness Results?

Q:

Enable Them to Do it the Way They Want



Value Center

Architecture

Collaboration


InnovationProductivity Growth

Why is Collaboration Relevantto the Enterprise?

Accelerates Accelerates Accelerates

Collaboration


Views of Collaboration Technologies

Control Chaos


Leadership Beyond Technology

Process

Technology

Culture

Web-Services Video Unified Communications TelePresence Wikis Blogs

Business Success Metrics Scaleable and Efficient

Processes Common Services Core vs. Context

Invite Participation Pervasive Accountability On-Line Social Networking


CrossFunctional

Tiger Teams

Collaboration:Product Ideas to Launches

I-Zone WikiAction

LeadershipForum

Partnership

Find Filter GTM


Collaboration:Product Ideas to Launches

CrossFunctional

Tiger TeamsI-Zone Wiki

ActionLeadership

ForumPartnership

Find Filter GTM

In One Year:

400 Contributions to I-Zone since August, 2006

12 Have Reached Project Stage

4 Business Units Formed: Media Services,TelePresence, Physical Security, Safety andSecurity Systems


Summary

Synchronize Businessand Technology,Shrink Time toCapability

CollaborationAcceleratesProductivityThrough Growthand Innovation.Lead and Win.

Value Center Collaboration

ArchitectureDefines the Ability toRespond to BusinessOpportunities andRisks. NOW is theTime to Transform

Architecture


Documents

CIO Strategies for The Next Generation Customer …...John’s Measures of Success •Growth/Flexibility (markets) •Experience (key processes) •Next Wave of Productivity •Time