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© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 1
Collaboration: Collaboration:
Ron RicciVice President, Corporate PositioningCisco
Ron RicciVice President, Corporate PositioningCisco
Collaboration is the Six Sigma of
the 21st Century Organization
Collaboration is the Six Sigma of
the 21st Century Organization
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 2
Collaboration: Collaboration:
Ron RicciVice President, Corporate PositioningCisco
Ron RicciVice President, Corporate PositioningCisco
Collaboration is the Six Sigma of
the 21st Century Organization
Collaboration is the Six Sigma of
the 21st Century Organization
John ChambersChairman and CEO John ChambersChairman and CEO
“If you agree with everything I say, I have clearly failed.”
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 3
Economic benefits of
a large enterprise
Economic benefits of
a large enterprise
Economies of Scale
Global Reach
Global Brand
Agility of a very small
organization
Agility of a very small
organization
Decentralized Decision-Making
Speed, Creativity, Flexibility – Closest to Customer
Motivated Workforce
Collaboration = Speed, Scale, Flexibility
+
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 4
Collaboration = Speed, Scale, Flexibility
OperationalExcellenceOperationalExcellence
Agility of a very small
organization
Agility of a very small
organization
Economic benefits of
a large enterprise
Economic benefits of
a large enterprise
+
InnovationInnovation+
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 5
Second Wave Productivity / InnovationEnabled By Collaboration / Web 2.0
2%
3%
5%
50%+50%+
5%5%
3%3%
4%4%
2%2%
1%1%
19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006
2007200719971997 20082008 20092009 20102010 20112011 20122012 20132013
Collaboration / Collaboration /
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 6
Power of Collaboration / Web 2.0 to Transform Organizations…
ProcessProcess
TechnologyTechnology
CultureCulture
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 7
Power of Collaboration / Web 2.0 to Transform Organizations…
ProcessProcess
TechnologyTechnology
CultureCulture
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 8
Power of Collaboration / Web 2.0 to Transform Organizations…
ProcessProcess
TechnologyTechnology
CultureCulture
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 9
Power of Collaboration / Web 2.0 to Transform Organizations…
ProcessProcess
TechnologyTechnology
CultureCulture
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 10
Web 2.0Technologies
WidgetsWidgets
FacebookFacebook
WikisWikis
PodcastsYouTubeYouTube
SMS/TextSMS/Text
VlogsVlogs
TwitterTwitter
BlogsBlogs
TelePresenceTelePresenceWebExWebEx
PowncePownce
ForumsForums
Second Life
Second Life
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 11
WidgetsWidgets
FacebookFacebook
WikisWikis
PodcastsYouTubeYouTube
SMS/TextSMS/Text
VlogsVlogs
TwitterTwitter
BlogsBlogs
TelePresenceTelePresenceWebExWebEx
PowncePownce
ForumsForums
Second Life
Second Life
Web 2.0Technologies
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 12
Collaborative Thinking and Behavior…
RESILIENTPASSIVE-AGGRESSIVE
Unhealthy27% of Organizations
Healthy17% of Organizations
Decision MakingDecision Making
OpaqueOpaque TransparentTransparent
Source: Harvard Business Review
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 13
Cisco’s Market AdjacenciesCisco’s Market Adjacencies
No Increase in Sr. Executive TimeNo Increase in Sr. Executive Time
Executive Participation on Councils/Boards Executive Participation on Councils/Boards
• FY07 -> 2 Adjacencies • FY08 -> 20 Adjacencies
• FY09 -> 30 Adjacencies
• FY07 -> 2 Adjacencies • FY08 -> 20 Adjacencies
• FY09 -> 30 Adjacencies
• FY07 -> 60 Days• FY08 -> 60 Days
• FY09 -> 60 Days
• FY07 -> 60 Days• FY08 -> 60 Days
• FY09 -> 60 Days
• FY07 -> 100 Executives• FY08 -> 500 Executives
• FY09 -> 750 Executives
• FY07 -> 100 Executives• FY08 -> 500 Executives
• FY09 -> 750 Executives
10X (FY08)10X (FY08)
1X1X
15X (FY09)15X (FY09)
5X (FY08)5X (FY08)
7.5X (FY09)7.5X (FY09)
Power of Collaboration / Web 2.0 to Transform Organizations…
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 14
Priority Cascade Process Priority Cascade Process • 17/20 Priorities thru OC• No Priority to B-o-D w/out going thru OC• 12 / 20 thru Board
• 17/20 Priorities thru OC• No Priority to B-o-D w/out going thru OC• 12 / 20 thru Board
Executive Participation on Councils/Boards Executive Participation on Councils/Boards • FY07 -> 100 Executives• FY08 -> 500 Executives
• FY07 -> 100 Executives• FY08 -> 500 Executives
Cross-Company PrioritiesCross-Company Priorities• FY07 -> 2 Priorities • FY08 -> 20 Priorities • FY09 -> 28 Priorities
• FY07 -> 2 Priorities • FY08 -> 20 Priorities • FY09 -> 28 Priorities
10X
No Increase in Sr. Executive TimeNo Increase in Sr. Executive Time• FY07 -> 60 Days• FY08 -> 60 Days
• FY07 -> 60 Days• FY08 -> 60 Days 1X
13XDecision-Making
Resource Alignment/Flexibility
Executive Collaboration: Productivity Gains
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 15
Cross-Company PrioritiesCross-Company Priorities
No Increase in Sr. Executive TimeNo Increase in Sr. Executive Time
Executive Participation on Councils/Boards Executive Participation on Councils/Boards
• FY07 -> 2 Priorities • FY08 -> 20 Priorities
• FY09 -> 28 Priorities
• FY07 -> 2 Priorities • FY08 -> 20 Priorities
• FY09 -> 28 Priorities
• FY07 -> 60 Days• FY08 -> 60 Days
• FY09 -> 60 Days
• FY07 -> 60 Days• FY08 -> 60 Days
• FY09 -> 60 Days
• FY07 -> 100 Executives• FY08 -> 500 Executives
• FY09 -> 750 Executives
• FY07 -> 100 Executives• FY08 -> 500 Executives
• FY09 -> 750 Executives
10X (FY08)10X (FY08)
1X1X
13X (FY09)13X (FY09)
5X (FY08)5X (FY08)
7.5X (FY09)7.5X (FY09)
November 2008 - January 2009
$500 Million Re-AlignedTo FY09 Priorities
90 Days
February 2008 - August 2008
$500 Million Re-AlignedTo FY09 Priorities
180 Days
Power of Collaboration / Web 2.0 to Transform Organizations…
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 16
Common Vocabulary:Increasing Executive ProductivityCommon Vocabulary:Increasing Executive Productivity
• Drive Revenue• Expand Markets• Disrupt Architectures
5+ Years5+ Years
• Revenue• Productivity• Cost Avoidance
12-18 Months12-18 Months2-4 years2-4 years
Resources / Acquisitions
to Sustain Differentiation
VisionVision StrategyStrategy ExecutionExecution
AgreementAgreement AlignmentAlignment AccountabilityAccountability
Market Transition
Market Transition
Sustainable DifferentiationSustainable
Differentiation ResultsResults
LessMore
Degree of Collaboration
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 17
3,000+ Cisco Leaders:Virtual Strategic Leadership Offsite
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 18
Cisco’s Top 3,000 LeadersVirtual Strategic Leadership Offsite
90% reduction in time spent traveling giving backan average 10.86 hours (a day) back to each attendee
90% reduction in carbon emissions – even with the use of our technology from 45 to 4 tons of carbon
$2.8 million cost reduction due to reduced travel and hotel expenses
Attendance/Entries 24,387
Chats Accepted 484
Moderated Chat Questions 10,000+
WebEx Views 9,844
Video Views 48,350
Downloads 35,683
Briefcase Adds 11,081
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 19
Cisco’s Top 3,000 LeadersVirtual Strategic Leadership Offsite
Attendance/Entries 24,387
Chats Accepted 484
Moderated Chat Questions 10,000+
WebEx Views 9,844
Video Views 48,350
Downloads 35,683
Briefcase Adds 11,081
90% reduction in time spent traveling giving backan average 10.86 hours (a day) back to each attendee99% reduction in carbon emissions – even with the use of our technology from 45 to 4 tons of carbon$2.8 million cost reduction due to reduced travel and hotel expensesAlignment I understand the FY10 Vision,
Strategy & Execution Plans 4.3/5.0
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 20
Collaboration: Collaboration:
Ron RicciVice President, Corporate PositioningCisco
Ron RicciVice President, Corporate PositioningCisco
Collaboration is the Six Sigma of
the 21st Century Organization
Collaboration is the Six Sigma of
the 21st Century Organization
John ChambersChairman and CEO John ChambersChairman and CEO
“If you agree with everything I say, I have clearly failed.”
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential13020_10_2006_c6 21
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