1© 2003 Cisco Systems, Inc. All rights reserved.
Cisco Innovation
Patrick Wetterwald
Cisco Technology Center France
2© 2003 Cisco Systems, Inc. All rights reserved.
Overview of Disruptive Innovation
333© 2003 Cisco Systems, Inc. All rights reserved.
Disruptive InnovationBusiness Models and New Markets, not Technology
• Sustaining innovation – anything that makes current products and services better, faster or cheaper
• Disruptive innovation – creates new markets or offers more convenience or lower prices at the low end of an existing market
444© 2003 Cisco Systems, Inc. All rights reserved.
Disruptive Innovation and “Overshoot”A Key Driver of Market Transitions
Perf
orm
an
ce
Time
Performance that customers
can utilize or absorb
Sustaining
innovations
Disruptive Innovations
Entrants nearly always win
Incumbents nearly always win Pace of
Technologica
l
Progress
Source: Innosight
555© 2003 Cisco Systems, Inc. All rights reserved.
Non-c
onsu
mer
s or
Non-c
onsu
min
g
occa
sions
Time
Low-End Disruption
Target over-served customers
with lower-cost business modelP
erfo
rman
ce
Time
Diff
ere
nt
Perf
orm
an
ce M
easu
re
Sustaining Innovation
Bring better products into
established markets
New Market Disruption
Compete against non-consumption
Two forms of Disruptive Innovation
Wal-Mart, Costco
PC, Wireless Telephony
Company improvement trajectory
Customer demand trajectory
Source: Clayton Christensen
666© 2003 Cisco Systems, Inc. All rights reserved.
Why Disruption is So Powerful
• Predictive and Pragmatic
Can determine if (and when) a market is ripe for disruption
• Enables firms to tap new growth markets
Low-end of existing markets (over-served customers)
Brand new markets (non-consumers)
• Disruption is about business model innovation
Much harder for incumbents to change their business models than adopt to new technology
• Creates “double bottom line” impact
As disruptions improve, growth AND margins expand
777© 2003 Cisco Systems, Inc. All rights reserved.
Cisco – History of Disruption“Leading Supplier of Enterprise Internetworking”
• Late 1980s – Multi-Protocol Router enables LAN internetworking to become Enterprise Internetworking
New market disruption that empowers departmental users of IT and eventually displaces interoffice mail and “sneaker net”
• 1991 – Cisco Blue – low-end disruption of SNA
SNA over IP replaces dedicated SNA private line networks
• 1993-95 – Cisco acquires LAN switching
Cisco Fusion was Cisco’s strategy for hybridizing routing and switching, capturing the growth potential of a low end disruption
888© 2003 Cisco Systems, Inc. All rights reserved.
Cisco – History of Disruption (cont.)“Worldwide leader in networking for the Internet”
• Late 1990s – Ethernet+IP vs. ATM internetworking
Low cost, “good enough” Ethernet + IP disrupts ATM in the battle for Enterprise D/V/V convergence
• 2003 – Cisco acquires Linksys
Captures growth of new market disruption (home networking)
• 2006 – Cisco TelePresence
Integrated system that delivers “in person” experiences, simply
9© 2003 Cisco Systems, Inc. All rights reserved.
Technology Center
101010© 2003 Cisco Systems, Inc. All rights reserved.
Organization: who we are
Technology GroupsAccess
AggregationEthernet AccessInternet Routing
Internet Switching & ServicesIOS Technologies
Network Edge Aggregation & RoutingNetwork Management
OpticalStorageVoice
Wireless
Staff of :Engineers
BizDev MgrProgram Mgr
Chief Development Officer Horizontal Business FunctionsFinance - HR
ManufacturingSales - Marketing
Tech Center EMEA
Technology Center
Corporate Business Development
Office of the President
111111© 2003 Cisco Systems, Inc. All rights reserved.
Innovation @ Cisco : organizational view
121212© 2003 Cisco Systems, Inc. All rights reserved.
Technology Center : Mission
NascentTech/business
trends
Initiate Incubate Accelerate
DisruptiveAdjacentmarkets
AdoptionProduct enhancement
• Idea generation
• Idea portfolio
• Idea Traction
• Patents
• Ideas becoming Products
• New businesses
131313© 2003 Cisco Systems, Inc. All rights reserved.
Technology Center : Background
…1997 1998 1999 2000 2001…
PartnersEngineering
PartnersEngineering
GlobalAlliances
GlobalAlliances
TechnologyCenter
TechnologyCenter
…2006
Products
Partners
Standards
141414© 2003 Cisco Systems, Inc. All rights reserved.
Growth/Innovation bets
Healthcare 2.0 Connected Life
Innovation Pipeline Emergent Collaboration
151515© 2003 Cisco Systems, Inc. All rights reserved.
Emergent Collaboration
http://www.secondlife.com
161616© 2003 Cisco Systems, Inc. All rights reserved.
Emergent Collaboration - Enterprise focus
An Enterprise focused immersive environment, using network intelligence to simplify all forms of communications and enhance collaboration.
171717© 2003 Cisco Systems, Inc. All rights reserved.
Healthcare : partnership platform
DevicesPeople
Nurse@Home
Telehealth
SystemsMed 2.0ACCESS, Network PACS
MDCInternet
181818© 2003 Cisco Systems, Inc. All rights reserved.
Wireless: MuniMesh
Point-to-Point
Bridging
Point-to-Multipoint Bridging
Wireless Mesh Networking
Outdoor Wi-Fi
Extension
191919© 2003 Cisco Systems, Inc. All rights reserved.
Sensor Network today
• Current situation:
Sensor / sensor gateway
Connected to PC/patch panel over serial/RS 232
PC is collocated with GW
202020© 2003 Cisco Systems, Inc. All rights reserved.
Internet
Sensor Network tomorrow
sensor
sensor
sensor
sensor
Gateway
Gateway
Gateway
Gateway
Sensor
Network
MeshNetwork
Controller
Controller
SensorApplication
Controller CorpNetwork
MissionApplication
sensor
sensor
Management
Networking
sensing
Sensor
Router
212121© 2003 Cisco Systems, Inc. All rights reserved.
222222© 2003 Cisco Systems, Inc. All rights reserved. 222222© 2003 Cisco Systems, Inc. All rights reserved.
Recommended
