growth and innovation
DESCRIPTION
Inder Singh; Cisco VP, Corporate Portfolio Management, Long-Range Planning, Mergers & Acquisitions. http://blogs.cisco.com/author/inder%20singh/ https://twitter.com/#!/CiscoInderSingh http://about.me/indersinghcisco http://www.flickr.com/photos/cisco_pics/sets/72157627062481756/TRANSCRIPT
Growth and Innovation
Haas Business School Tech Speaker Series
November 29, 2010
Inder SinghVice President
Corporate Portfolio Management, Long-Range Planning, andMergers & Acquisitions
Agenda
text
Why Innovation Matters
text
Q&A
Enabling Innovation
Portfolio Framework
Source: Connecting Cities: Achieving Sustainability Through Innovation Nicola Villa and Wolfgang Wagener, Cisco IBSG
Many people get Internet or a phone, before running water
100 new cities with one million residents by 2025
Innovations for Emerging Mkts Likely to Disrupt
300M connected devices in ~2001, growing to Billions in next few years
A World in Transition
At Least 3 Key Implications for Technology
1) Video & Collaboration
Video could rise from 4% today, to >64% of carrier traffic next few years
Web
Cloud
Client Server
MinicomputerMainframe
Data Center capex shifting towards virtualization and cloud
2) New Consumption Models
3) Reverse Innovation
“Built for Developing World, Sold Back into Developed”
Innovations Often Disrupt Incumbents
Christiansen, Clayton: “The Innovator’s Dilemma”
PERFORMANCE
TIME
High End
Low End
DisruptiveInnovation
DevelopNew Technology
Start New Business Models
Pursue Acquisitions
Partner with Other Companies
Investments
Design New Products
A Broad Approach to Innovation
Weighing Competing Investment Needs
Core Business
• Routing• Switching• Architectural
approach
30 Market Adjacencies
• Smart Grid• Cloud• Video
M&A• Deal 1• Deal 2• Deal 3
OPPORTUNITIES …
Investment Requests
AvailableCapital
GAP
DEMAND… & ...SUPPLY
Capital• Stock buybacks• Dividends
Agenda
text
Why Innovation Matters
text
Q&A
Enabling Innovation
Portfolio Framework
Find
Internal Venture Framework
Filter
Business Unit Formed
Graduate
Eliminate
Accelerate
Ideas
Incubate
Initiate
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12
Agenda
text
Why Innovation Matters
text
Culture
Enabling Innovation
Portfolio Framework
Targeting a Balanced Corporate Portfolio
1 2 3
4 5 6
7 8 9
Product Extensions
New
er
Bu
sin
esses
Current Business
Adjacencies
New Markets
1–2 years 2–3 years 3+ years
Long Range Planning Process
Final Plan
Updated strategies
Council/ Function alignment readouts
Key strategic decisions
Alignment finalization
Long-term business strategies
Strategic growth scenarios
Portfolio performance deep-dives
Business momentum updates
Final P&L and investments
Communicate funding decisions
Portfolio Exchange
Strategy Onsite II
OperationsReview
Strategy Onsite I
Understand business environment
Identify top “trends” and Cisco wide imperatives
Business Environment
Review
Investment Scenario are Modeled
Data not actual
Cisco Priority Assessment Dashboard-- A Management Framework
CPAD is used to manage identified Cisco corporate adjacencies in their early life cycle.
CPAD Steering Committee
Phase 5Phase 4Phase 3Phase 2Phase 1
TH
E C
HA
SM
Re
ve
nu
e G
row
th
Fully Managed Jointly Managed Monitor
CPAD Overview
© 2010 Cisco Systems, Inc. All rights reserved.
TH
E C
HA
SM
Jointly Managed
Phase 1 Phase 2 Phase 3
Managing Investment with CPAD
Biz CasePrototype
EarlyCustomers
Commit
ManyProductionCustomers
Productize
BroaderAdoption
6 12 18 30 42 48
Months
3624
18
Invest
Check
Points
Adjacent Direct
0 1.1 1.2 1.3 2.1 2.2 2.3 3.0
Agenda
text
Why Innovation Matters
text
Q&A
Enabling Innovation
Portfolio Framework