© 1999, cisco systems, inc. 1 filevoice/video/data convergence (1998-2003) ... internet explosion....
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2Presentation_ID © 1999, Cisco Systems, Inc.
Winds of Change:Agents of Change and
Key Trends Shaping Businessesand Organizations Today
Choi Chik Choy
Senior Manager, Systems Engineering
3Presentation_ID © 1999, Cisco Systems, Inc. www.cisco.com
The business climate used to belike a cruise liner on the ocean.
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Today business is changing.4F0_4665_c1 © 1999, Cisco Systems, Inc.
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Change is happening.
Agile companies will always havethe competitive advantage and win.
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Three Drivers of ChangeThree Drivers of Change
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The Internet is changingthe way we………..
The Internet is changingthe way we………..
Work Learn
Live Play
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Adoption of the Internet …….The New Paradigm Shift
Adoption of the Internet …….The New Paradigm Shift
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Years to 50 Million Users
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0 10 20 30 40
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16
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4Web
Internet Adopted Faster thanAny Previous Technology
Internet Adopted Faster thanAny Previous Technology
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The Internet Tornado WavesThe Internet Tornado Waves
Web Browser (1994-1997)
E-Commerce ( 1997- 2002 )
Voice/Video/Data Convergence(1998-2003)
Internet Broadcasting( 2001-2005 )
Transformed Old to New World Economy
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E-Commerce$300B by 2002
65,000 NewWeb-sites/Hour
100 M Users 1997$1B by 2005
InternetInternetTraffic Doubles Traffic Doubles Every 100 Days Every 100 Days
186 CountriesConnected
Source: PacBell, MCI Communications, Network Wizards
© 1999, Cisco Systems, Inc. www.cisco.com
Internet ExplosionInternet Explosion
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The Internet Changes BusinessThe Internet Changes Business
Business RequirementsBusiness Requirements
Network RequirementsNetwork Requirements
ProductivityProductivity CompetitiveAdvantage
CompetitiveAdvantage GlobalizationGlobalization
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E-BusinessCritical Success Factors
Low-medium flexibility12-16 months in time to market
Slow adaptation / businessextension
Local approach to enter new markets
Competition from limited players
Controlled growth of businesspartners / users
Traditional business E-business
Agility to extend or shift
Competition from alldirections
Global approach cross-frontiers
Potential for explosivegrowth of customers
High flexibility3-month to set new E-business
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PurchasingPurchasing(Manufacturing)(Manufacturing)
Sourcing bySourcing byFax and PhoneFax and Phone
PurchasingPurchasingCostCostReducedReducedby overby over$700 M over$700 M over3 Years3 Years
BookstoresBookstores
Bricks and MortarBricks and Mortar
2.5 Million Virtual2.5 Million VirtualCustomersCustomers
Traditional Business Internet Business
IntermediationIntermediation(Broker) Fees(Broker) Fees
$120 Billion in Assets $120 Billion in Assets
BrokerageBrokerage
EvolutionEvolution
Traditional to E-Business Migration
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The Agile Internet-EnabledEnterprise
Your CompanyYour CompanyYour Company
E- LearningE- Learning
Employees
WorkforceWorkforceOptimizationOptimization
ERPERP
Your Company
E- LearningE- Learning
Employees
WorkforceWorkforceOptimizationOptimization
ERPERP
Your Company
Channel/Distribution
Customer
CustomerCustomerCareCare
Business-to-Business-to-CustomerCustomer
E-CommerceE-Commerce
E- LearningE- Learning
Employees
WorkforceWorkforceOptimizationOptimization
ERPERP
Your Company
Channel/Distribution
Customer
CustomerCustomerCareCare
Business-to-Business-to-CustomerCustomer
E-CommerceE-Commerce
E- LearningE- LearningSuppliers/
Manufacturers
Partners
Supply ChainSupply ChainManagementManagement
Business-to-Business-to-BusinessBusiness
E-CommerceE-Commerce
Employees
WorkforceWorkforceOptimizationOptimization
ERPERP
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Internet and IntranetInternet and Intranet
CustomerCustomerCareCare
Enterprise Agility
Supply ChainSupply ChainManagementManagementE-LearningE-Learning E-CommerceE-Commerce
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Business Drivers
Profitability andProfitability andProductivityProductivity
CompetitiveCompetitiveAdvantageAdvantage
New Business ModelNew Business Model
OrganizationOrganizationStructureStructure
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• Build walls aroundcorporate informationand systems
• Limit access toselected few
The Traditional Modelof doing Business
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EmployeesEmployees
PartnersPartners
CustomersCustomers
SuppliersSuppliers
Traditional Business
EnterpriseEnterprise
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• Informationsilos withaccesslimitedto select few
• Lack ofuniversalaccess torelevantinformation
• Duplicationof effort
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Definitions
A A Global Networked Business Global Networked Business is anis anenterprise, of any size, thatenterprise, of any size, that
strategically uses its network tostrategically uses its network toshare information and operationalshare information and operational
systems, fostering strong,systems, fostering strong,interactive relationships withinteractive relationships with
all its key constituencies.all its key constituencies.
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• Open up Enterprise,internal systemsand information toprospects,customers, partners,suppliers,employees
Global Networked BusinessThe New Model of Doing Business
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The Global Networked Business
Ubiquitous Connectivitywhere the Business
Runs on the Network
Enterprise
Employees
Partners
Customers
Suppliers
• Higher customersatisfaction
• Lower costs
• Competitiveagility
• Acceleratedtime to market
• Higher employeeefficiency
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Definitions
• Global
The Internet gives businesses of all sizes andconsumers access to information, ideasand resources from around the world
• Networked
Being connected is not enough; an intelligentlynetworked business is required
• Business
Business-to-business commerce will be theengine driving development of the Internet
24Presentation_ID © 1999, Cisco Systems, Inc. www.cisco.com
GNB Model Based onThree Assumptions
• The relations a company maintains with itskey constituents can be as much of acompetitive differentiator as its core productsor services
• The manner in which a company sharesinformation and systems is a criticalelement in the strengths of its relationships
• Being connected is no longer adequate
Business relationships and the communicationsthat support them must exist in a networked fabric
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Why Is the GNB Model Important?
“How companies use information“How companies use informationtechnology will define their successtechnology will define their successand competitive edge in the comingand competitive edge in the coming
era of new world business.”era of new world business.”
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How Is the GNB Model Applied?
• Through networked applicationsfor prospects, customers, partners,suppliers, and employees that enable:
Marketing
Sales
Support
Human Resources
Finance
And more…
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Global Networked Business
• Personalized service and support
• Improved customer satisfaction
• Enhanced productivity
• Cost reduction
• Generate revenue
• Competitive advantage
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Global Networked BusinessesLeverage Their Network to:
• Increase revenues
• Lower costs
• Improve productivity
• Enhance customersatisfaction andsupport
Costs
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‘Global Networked Business Model’
Building Interactive Relationships, between…
ProspectsProspects ResellersResellers SuppliersSuppliers
EmployeesEmployeesCustomersCustomers
Reduce CostReduce Cost
Shrink TimeShrink Time
ImproveImproveSatisfactionSatisfaction
CompeteCompeteGloballyGlobally
Build SynergiesBuild Synergies
in order to...
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Change As aCompetitive Advantage
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••New Businesses Based Upon Electronic ChannelsNew Businesses Based Upon Electronic Channels
New Channels/Customers for Existing EnterpriseNew Channels/Customers for Existing Enterprise
New/Stronger Relationships for Existing EnterpriseNew/Stronger Relationships for Existing Enterprise
Networked Commerce Today
Networked Commerce Is a Secure, Mainstream Wayto Conduct Business Transactions Today
Networked Commerce Is a Secure, Mainstream Wayto Conduct Business Transactions Today
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1993 199919981997199619951994
AcquisitionsAcquisitions
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Open Operations PartnershipOpen Operations Partnership