Knowledge Management

CISCO SYSTEMS THE SUPPLY CHAIN

STORY
Jennifer Forbes
Jinelle Adams
Nwakego Isika
Nickkisha Farrell
Aminath Shayaan

Overview

The Organization CISCO Systems

Key Success Factors
PEST Analysis
SWOT Analysis
Porters Five Forces
Recommendations
Conclusion

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

Ability to manufacture and design

new products with new world
processes

Strong and strategic industry partners

Customer Relationship Management

Innovativeness

Cisco Systems Supply Chain Case Study

PEST Analysis

-- UNFAVORABLE
UNFAVORABLE ECONOMIC
ECONOMIC
CONDITIONS
CONDITIONS

-- UNSTABLE
UNSTABLE GLOBAL
GLOBAL ECONOMY:
ECONOMY:
HESITANTANCY
TO
HESITANTANCY TO INVEST
INVEST

-- US
US ANTITRUST
ANTITRUST LAWS
LAWS

-- UNCERTAIN
UNCERTAIN INVESTMENT
INVESTMENT
RETURNS
RETURNS

-- DIFFERING
DIFFERING GEOPOLITICAL
GEOPOLITICAL
ENVIRONMENTS
ENVIRONMENTS

-- CULTURAL
CULTURAL DIVERSITY
DIVERSITY
-- EMPLOYMENT
EMPLOYMENT AND
AND
UNEMPLOYMENT
UNEMPLOYMENT REGULATIONS
REGULATIONS &
&
MEDIA
VIEWS
MEDIA VIEWS

-- THE
THE COMPANY
COMPANY BRAND,
BRAND, IMAGE
IMAGE

-- EXCHANGE
EXCHANGE RATES
RATES

-- PATENTS
PATENTS AND
AND INTELLECTUAL
INTELLECTUAL
PROPERTY
PROPERTY
-- COMPLEX
COMPLEX INFORMATION
INFORMATION SYSTEMS
SYSTEMS
-- EMERGING
EMERGING TECHNOLOGICAL
TECHNOLOGICAL
TRENDS
TRENDS
-- RELIANCE
RELIANCE ON
ON THE
THE INTERNET
INTERNET

Cisco Systems Supply Chain Case Study

Porters Five Forces

Lo
w

Lo
w

Supplier Power
Barriers to Entry
EASE OF INTERNET BASED
HIGH INDUSTRY
PROVIDER
DEPENDENCE
FEW START-UP ELEMENTS
UNDIFFERENTIATED
TECHNOLOGICAL KNOW-HOW
INPUTS
MERGERS/TAKEOVERS
CISCO LINKS SUPPLIERS
Competitive Rivalry Hig
DISPERSED SEGMENTSh
NICHE PROVIDERS

RAPID PACE OF CHANGE

Mo
d

Threat of Substitutes
FEW COMPETING
TECHNOLOGIES
MINIMAL ALTERNATIVES
HIGH SWITCHING COSTS

Mo
d.
ALTERNATIVE PRODUCTS
Buyer Power

ALTERNATIVE PRODUCTS
HIGH SWITCHING COSTS
TECHNOLOGIES ARE A
NECESSITY

Cisco Systems Supply Chain Case Study

SWOT Analysis
AD
AD VAN
VAN C
CE
E T
TE
EC
CH
HN
NO
OL
LO
OG
GY
Y
S
ST
TR
RO
ON
NG
G F
F II N
N AN
AN C
C II AL
AL P
PO
OS
S II T
T II O
ON
N
F
FL
LE
EX
X II B
B II L
L II T
TY
Y
S
ST
TR
RO
ON
NG
G M
M AN
AN AG
AG E
EM
ME
EN
NT
T T
TE
E AM
AM
M
M AR
AR K
KE
ET
T S
SH
H AR
AR E
E L
LE
E AD
AD E
ER
RS
SH
H II P
P
S
ST
TR
RO
ON
NG
G B
BR
R AN
AN D
D II M
M AG
AG E
E

O
OU
UT
TS
SO
OU
UR
RC
C II N
NG
G TO
TO O
O M
M AN
AN Y
Y
B
U
S
I
N
E
S
S
P
R
O
C
E
S
S
E
S
BUSINESS PROCESSES
S
ST
TR
RO
ON
NG
G R
RE
EL
L II AN
AN C
CE
E O
ON
N T
TE
EC
CH
H ..
H
H II G
GH
H P
PR
R II C
C II N
NG
G
D
D II S
SR
RU
UP
PT
T II O
ON
NS
S O
OF
F P
PR
RO
OC
CE
ES
SS
S
C
C AU
AU S
SE
ED
D B
BY
Y AC
AC Q
QU
U II S
S II T
T II O
ON
NS
S

S W
O T
THE
THE GLOBAL
GLOBAL FINANCIAL
FINANCIAL CRISIS
CRISIS
(FUTURE
(FUTURE INVESTMENTS)
INVESTMENTS)
POOL
POOL OF
OF EXPERT
EXPERT WORKERS
WORKERS IN
IN THE
THE
INDIAN
MARKET
INDIAN MARKET
EXPANSION
EXPANSION IN
IN CHINA
CHINA AS
AS OTHER
OTHER
GLOBAL
COMPANIES
EXPAND
GLOBAL COMPANIES EXPAND TO
TO THIS
THIS
MARKET
MARKET

INFO.
INFO. TECH
TECH INFRASTRUCTURE
INFRASTRUCTURE ATTACKS
ATTACKS
UNSUSTAINABLE
UNSUSTAINABLE PRODUCT
PRODUCT GROSS
GROSS
MARGINS
MARGINS
CYBER
CYBER CRIME
CRIME
UNCERTAINTY
UNCERTAINTY OF
OF GLOBAL
GLOBAL ECONOMY
ECONOMY

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

Solution : Supply chain Integration

Continuous assessment of mediating variables such as

supplier performance and industry impacts.

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

Problem 2: HRM Disgruntled Ex-Employees

Solution : Industrial Democracy

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
Cisco Systems
Supply Chain Case Study

Recommendations

Problem 3: CRM Anticipating User Demands

Solution : Integration of HR and CRM Systems

Employees will have direct access to

customer information
Better monitor customers changing
needs and emerging trends.

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
Cisco Systems
Supply Chain CaseJob
Study
of Potential

Conclusion

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

Cisco Systems Supply Chain Case Study