Management Information Systems Case Study
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Transcript Management Information Systems Case Study
Cisco Systems: Systems,
Products, Forecasting Models,
and Costs of Errors
By:
Ann Mesavage
Richard McManus
Background
Largest manufacturer of switches and
routers
Briefly was the most valuable company in
2000- ($555 billion company worth, stock
price $80/share)
Is thought to have 85 percent of the switch
market for the internet
Cisco’s success
Large outsourcer
Many acquisitions- between $20 billion to
$30 billion between 1993 and 2000
Sell many items over internet
Website- Cisco Connection Online (CCO)
“Cisco uses the Web more effectively than any
other big company in the world. Period.” Fortune Magazine
Cisco’s Success (cont’d)
Internet: supply chain extranetManufacturing Connection Online (MCO)
Cisco Employee Connection - four fifths of
technical training online
Online quotas
Customer service
Job applications
Accounting- closing accounts, “virtual
close”
Problems
2000-2001 recession
Fall in technology related stock
Dotcom companies- sales down, affect on
Cisco
Sales fell: $22.3 billion (2001) to $18.9
billion (2003)
Effects on Cisco
Oversupply in inventory (unsold)
Competitors/suppliers cut back on money
Share price down by 80%, stock closed at
$14
Competition with smaller companies
Slow down in Asia and Europe
Affects on Cisco (cont’d)
Large layoff (6,000-8,000 employees)
CIO Peter Solvik
CFO Larry Carter
CEO John Chambers
Errors in Forecasting
Did not factor growth into models
Too much inventory
Over reliance on technology
Wrong economic factors
- focused more on orders, than big picture
“Do our systems do a great job of telling us
where we are today? Yes, but they don’t tell
the future.” – CEO John Chambers
Cisco Restructured
Centralized engineering and marketing
organization
Track products and profitability
Improving “virtual close” system
Improve brand recognition
“Cisco is not as familiar to people as some of the
other large IT players… there is definitely the
opportunity to increase awareness.” - Sue
Bostrom, Cisco’s chief marketing officer
Poll
Website
Very User Friendly
Gives Up to Date
News
Broken Into Many
Categories like
“Products &
Services”, “Ordering”,
and “Support”
http://cisco.com/
Website
Allows the User To Create An Account
– Accounts:
Purchases Made Online
Tracks Products that the User Purchases
Also Provides Training And Events
– Allows users to learn about the business value of
networking solutions and get best practices for
deploying and managing the latest technologies
– Provide live Webcasts or on-demand sessions in
video or audio-only formats for “students”
Website
Provides Users with Product Literature
– Brochures
– Bulletins
– Case Studies (How Products Have Helped Out
–
–
–
–
–
Businesses With IT)
Customer Success Stories
Data Sheets
Presentations
Press Coverage
Q & A Forum
Products
Specialize In Many Products And Services
List of Products from A-Z
– Examples:
Switches
Network Routers
Optical Networking
Interfaces And Modules
Universal Gateways And Access Servers
Provides Information On All Products
Switches
Cisco switches help
maximize network
value by providing
optimal support for
business requirements
while delivering
superior investment
protection.
Switches
Many Different Varieties For Different
Applications
– Examples:
ATM Switches
Blade Switches
LAN Switches
WAN Switches
Network Routers
Provide Routers for
Small, Midsized, and
Large Businesses
Each Have Different
Features To Meet the
Requirements of
Different Types of
Businesses
Network Routers
Provides Routers for Network Providers
Optical Networking
Service providers can
optimize networks by
integrating intelligent
optical transport,
flexible bandwidth
management and
converged
voice/video/data
services
Fiber Optics
Interfaces And Modules
Deploy data and voice
capabilities in an
integrated routing
platform to help
increase productivity,
decrease costs, and
lower the cost of
ownership
Interfaces And Modules
Variety of Interfaces And Modules
– Transceiver Modules
– Ethernet Switching Network Modules
– Line Cards
– Network Modules
– Optical Services Modules
– Voice Modules And Interface Cards
Universal Gateways And
Access Servers
Current market
conditions enable
service providers to
increase revenue by
offering wholesale
Voice over Internet
Protocol (VOIP)
services
Universal Gateways And
Access Servers
Voice Over IP Solutions (VoIP)
– ASP Termination Services
– Dial Access Solution For Service Providers
– National And International Transport Services
– Prepaid And Postpaid Calling Card Services
– Voicemail/Unified Messaging
Questions
What is the “virtual close” system?
Questions
Short Answer:
Why is Cisco.com so successful on the
international market?
Questions
Cisco was briefly the mot valuable
company on Wall Street
Questions
Who uses Cisco.com?
A) International Businesses
B) Small Local Businesses
C) Network Providers
D) All Of The Above
Questions
What does VoIP stand for?
A) Voice Internet Packaging
B) Voice Over Internet Protocol
C) Voice Interpreting Packages
D) None Of The Above
Questions
Another name for Cisco’s website is:
References
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Case Study- “Cisco Systems: Poster Child for the Digital Firm?” Managing the Digital
Firm.
(2001, Mar 21). Behind the Tech Slump. The Economist Newspaper Ltd., 1. Retrieved
October 11, 2006, from ProQuest database.
(2001, Mar 10). An Old-Fashioned Price War. The Economist Newspaper Ltd.,1.
Retrieved October 11, 2006, from ProQuest database.
Morrissey, P., Boardmen B., Franklin, C., MacVittie, D., Molta, D. (2004, Oct 28). The
State of Cisco. Network Computing, Vol. 15, pg. 68. Retrieved October 11, 2006, from
ProQuest database.
Boyle, D. (2006). Cisco Systems, Inc. Better Investing, Vol. 55, 43. Retrieved October
15, 2006, from ProQuest database.
Tribble, S. (2006, Oct 5). Cisco Introducing Itself to Consumers: Campaign Aims to
Improve Brand Recognition. Knight Ridder Tribune Business News, 1. Retrieved
October 19, 2006, from ProQuest database.
Berinato, Scott. What Went Wrong at Cisco. 1 Aug. 2001
http://www.cio.com/archive/080101/cisco.html.