CISCO SYSTEMS - THE SUPPLY CHAIN

STORY

Knowledge Management

Jennifer ForbesJinelle Adams

Nwakego IsikaNickkisha Farrell

Aminath Shayaan

Cisco Systems – Supply Chain Case Study

Overview The Organization – CISCO Systems Key Success Factors PEST Analysis SWOT Analysis Porters Five Forces Recommendations Conclusion

Cisco Systems – Supply Chain Case Study

Cisco Systems – Supply Chain Case Study

The Organization: Cisco Sys.

World leader in networking equipment for the Internet. Cisco aims to empower the Internet generation.

Transnational Public Company

Headquarters – San Jose, California, USA Number of Empoyees – 65, 545

Offices in the United States, Canada, European Markets, Emerging Markets, Asia Pacific, and Japan.(Cisco Annual Report, 2009).

Cisco Systems – Supply Chain Case Study

Core Competencies & Key Success Factors

Strong and strategic industry partners

Customer Relationship Management

Innovativeness

Ability to manufacture and design new products with new world processes

Cisco Systems – Supply Chain Case Study

PEST Analysis

Cisco Systems – Supply Chain Case Study

- UNFAVORABLE ECONOMIC CONDITIONS

- US ANTITRUST LAWS

- DIFFERING GEOPOLITICAL ENVIRONMENTS

- UNSTABLE GLOBAL ECONOMY:HESITANTANCY TO INVEST

- UNCERTAIN INVESTMENT

RETURNS

- EXCHANGE RATES

- CULTURAL DIVERSITY

- EMPLOYMENT AND UNEMPLOYMENT REGULATIONS & MEDIA VIEWS

- THE COMPANY BRAND, IMAGE

- PATENTS AND INTELLECTUAL PROPERTY

- COMPLEX INFORMATION SYSTEMS

- EMERGING TECHNOLOGICAL TRENDS

- RELIANCE ON THE INTERNET

P E

S T

Cisco Systems – Supply Chain Case Study

Porter’s Five Forces

Competitive Rivalry

DISPERSED SEGMENTS

NICHE PROVIDERS

RAPID PACE OF CHANGE

Buyer Power

ALTERNATIVE PRODUCTS

HIGH SWITCHING COSTS

TECHNOLOGIES ARE A NECESSITY

Threat of Substitutes

FEW COMPETING TECHNOLOGIES

MINIMAL ALTERNATIVES

HIGH SWITCHING COSTS

Mod Mod.

Barriers to Entry

EASE OF INTERNET BASED PROVIDERFEW START-UP ELEMENTS

TECHNOLOGICAL KNOW-HOWMERGERS/TAKEOVERS

Supplier Power

HIGH INDUSTRY DEPENDENCE

UNDIFFERENTIATED INPUTS

CISCO LINKS SUPPLIERS

Low Low

High

Cisco Systems – Supply Chain Case Study

SWOT Analysis• ADVANCE TECHNOLOGY• STRONG FINANCIAL POSITION• FLEXIBILITY• STRONG MANAGEMENT TEAM• MARKET SHARE LEADERSHIP• STRONG BRAND IMAGE

• OUTSOURCING TOO MANY BUSINESS PROCESSES

• STRONG RELIANCE ON TECH.

• HIGH PRICING

• DISRUPTIONS OF PROCESS

CAUSED BY ACQUISITIONS

• INFO. TECH INFRASTRUCTURE ATTACKS

• UNSUSTAINABLE PRODUCT GROSS MARGINS

• CYBER CRIME

• UNCERTAINTY OF GLOBAL ECONOMY

• THE GLOBAL FINANCIAL CRISIS (FUTURE INVESTMENTS)

• POOL OF EXPERT WORKERS IN THE INDIAN MARKET

• EXPANSION IN CHINA AS OTHER GLOBAL COMPANIES EXPAND TO THIS MARKET

STOW

Cisco Systems – Supply Chain Case Study

Recommendations Problem 1:

The Supply Chain Management Inefficiency

Cause (According to case)

Over reliance on complex technologies Pyramid Structure of Supply Chain (Reliance

on multitude of suppliers and manufacturers) Errors in Forecasting product demand

Result Billions of dollars lost on overstocking of

Inventory

Cisco Systems – Supply Chain Case Study

Recommendations

Continuous assessment of “mediating variables such as supplier performance and industry impacts”.

Solution : Supply chain Integration

Solution : Inventory Management & Outsourcing Principles

Decide on specific levels to include in supply chain integration process

Hence flattening of the pyramid structure of Supply Chain outlined in the case

Cisco Systems – Supply Chain Case Study

Recommendations

• Involvement of staff in making decisions (through structures and processes) which involve the sharing of authority and responsibility in the workplace

• Give Employees a Piece of the Pie without giving away the Bakery

• Shareholder Agreement to Supervise Process

• Added Benefits: productivity improvement such as service delivery, increased job satisfaction

Problem 2: HRM – Disgruntled Ex-Employees

Solution : Industrial Democracy

Cisco Systems – Supply Chain Case Study

Recommendations

• Employees will have direct access to customer information

• Better monitor customers changing needs and emerging trends.

Problem 3: CRM – Anticipating User Demands

Solution : Integration of HR and CRM Systems

Solution : Extension of CRM to Channel Partners

• Include Acquisitions in CRM

Cisco Systems – Supply Chain Case Study

Recommendations Problem 4: Security Attacks

Solution : Culture of Research and Development

Strategically choose locations of offices

Access cutting edge technology as these institutions have in the past, proven to be the ones pushing the boundaries of technological achievements.

Enrichment of Potential Job Recruitment and Selection Process

Cisco Systems – Supply Chain Case Study

Conclusion

Cisco Systems – Supply Chain Case Study

Streamlined SCM processes, through restructuring

(CIP) Continuous improvement processes will enable Cisco to be meticulous in combating external threats

Enhanced HR practices Revised CRM Strategic Execution of R&D

Cisco Systems – Supply Chain Case Study

Thank You!!! The End

Questions???

Cisco Systems – Supply Chain Case Study