ppt mcs .pptx - U N D E R S TA N D I N G S T R AT E G I E S IN CASE CISCO SYSTEMS(B AMANDA CITRA NABILA 17312070 INTRO OF MCS IN CISCO • Q 1 What do

ppt mcs .pptx - U N D E R S TA N D I N G S T R AT E G I E S...

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UND ER STAN D ING STR ATEGIES IN CASE CISCO SY STEMS ( B) A M A N D A C I T R A N A B I L A 1 7 3 1 2 0 7 0
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INTRO OF MCS IN CISCO Q. 1 What do you think of the way Cisco funds new e-business initiatives? The Cisco funds its new e-business initiative is very ideal.• What Cisco did? – Initially, Funding came through the IT department. – Due to this the e- business initiatives were all evaluated on the basis of cost reduction, often overlooking impacts on sales, customer satisfaction, or employee retention. Hence Cisco bought new funding mechanism in action.
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CASE BACKGROUND Cisco is web business specially dedicated for the corporate customers Large savings and 100% quality assurance Outsourcing of manufacturing and web-based replenishment system Robust and efficient aftersales support on net Sales increases by 6 times in 5 year (1990-1994) Till March 2001, Cisco has been on the top position in E-business The company worry about innovation that not long lasting in this era of technology development Issues regarding how to continue the business the way Cisco doing it for the past few years Change is also reluctant
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CONTD Innovation at Cisco In spite of being a huge organization with more that 30.000 employees, Cisco encourages their employee to work as an entrepreneur Give more emphasis on risk taking, initiatives and responsibility values E-business initiatives were considered as overall organizational goal Decentralize business unit
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PROS AND CONS CFM-Client Funded Model was formed Incentives systems that focuses on customer satisfaction Customer intimacy Still not the most recognize e-business company Innovations are appreciated and created different small business units which are accountable Strategy to remain short term focused, worked well but how long Cisco would continue to do that Didn’t have the philosophy of “when to pull the plug” for small projects which are not paying off Managerial decision based on the compensation structure depends on : Revenue growth, earning growth and customer satisfaction
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PROBLEMS WITH CISCO CURRENT SYSTEM It is not perfect for cisco having decentralize system and staying close to customer simulatneously
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