W ki S tW ki S tWorking Smarter:Working Smarter:Why we need to be better than everWhy we need to be better than everWhy we need to be better than everWhy we need to be better than everNitin KawaleP id t/CEO Ci C dPresident/CEO – Cisco Canada

December 2011

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

The future isThe future is NOWNOWBut are you ready?But are you ready?

Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 2

The way we work, where and when its done, and by who,h f d t ll h dhas fundamentally changed

SocialSocial • TransparencyMultigenerationalMultigenerationalAging, MillennialAging, Millennial

SocialSocialCollaborationCollaboration

Social CommunitiesSocial Communities& Networks& Networks

• Increasing diversity in the workforce

• Skilled employees nearing transition

• Transparency• Immediate, open information

sharing• Federated command & control• Non-employee workers

ExpectationsExpectationsTime, Time, Style,Style,

KnowledgeKnowledgeTransfer, Losses, Transfer, Losses,

• Technology• Generational

W k / lif b l

• Insufficient talent and apprenticeship in the leadership pipeline

PlacePlace, , ToolsTools RetirementsRetirements• Work / life balance leadership pipeline• Competition for talent

MobilityMobilityAnywhere,Anywhere,

AnytimeAnytime

WorkplacesWorkplacesConfigurable,Configurable,

Remote CentersRemote Centers

• Workforce demands& expectations

• Significant ecological footprint• Under-utilized

• Personalization• Multiple Devices

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Who areWho areThe Next Generations?The Next Generations?

Who areWho are

Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 5

A 18 t 24 A 24 t 29StudentsStudents EmployeesEmployeesAge 18 to 24

Surveyed 1,441 from around the world

Age 24 to 29

Surveyed 1,412 from around the world

Countries: United States, Canada, Mexico, Brazil, United Kingdom, France, Spain, Germany, Italy, Russia India China Japan and

Same 14 countries

College graduate or higherRussia, India, China, Japan, and Australia

Statistical accuracy of 95%

Employed full time in non-IT role

Works for organization that employs at least 10 people worldwide

Even distribution of completes by gender

Even distribution of completes by gender

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

L t th iLaptops are the primary way of getting information –not TV, radio or print

Most access Facebookat least once a day

Seven in 10 employees Facebook “friend” managers and/or

kco-workers

Four in 10 students are typically distracted ortypically distracted or interrupted by some typeof social media 3 ormore times per hour

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

p

A thi d f d tA third of respondents say the Internet is as important as water, food, air and sheltershelter

Nearly half of remainder consider the Internet to beconsider the Internet to be “close” in importance to these

62% ld NOT li62% could NOT live without the Internet – an integral part of their lives

64% of students prefer Internet access vs. a car

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

i C dWorkplace Challenges

in Canadag

Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 9

"For too long, we as a country depended on a lower dollar, we used it as a crutch. We've got to get over that, and live with a dollar at par, or close to it, and find more innovative ways to do things."- Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont.

"C d ' i i b t it i l i h il"Canada's recovery is progressing, but it is relying heavily on sweat and toil, and not on brains and innovation." - Douglas Porter, Bank of Montreal economist

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

• Declining productivity means we’re missing opportunitiesProductivity investment per Canadian worker is 60% of US levelsProductivity investment per Canadian worker is 60% of US levels14th among OECD nations for innovation performance and productivity

• Canada’s capacity for innovation and ability to absorband deploy technology ranked 18th in the world

• Canada labour productivity growth is declining:1 9% annual average each year during the 1990s1.9% annual average each year during the 1990s0.7% annual average from 2000-2009

• Canada needs 4X current rate of productivityyand sustain it for 15 years to close to Canada-US gap

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

100%

5%5%75%

Standard of Living Standard of Living Doubles in Doubles in 1414 YearsYears

3%3%50%

Standard of Living Standard of Living Doubles in Doubles in 2424 YearsYears

1%1%

50%

Standard of Living Standard of Living Doubles inDoubles in 7272 YearsYears1%1%

25%

0 9 18 27 36 45 54 63 72

Doubles in Doubles in 7272 YearsYears

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

0 9 18 27 36 45 54 63 72Source: Net Impact Study Years

W N d tW N d t C ll b tC ll b tin Order toin Order to AccelerateAccelerate

We Need to We Need to CollaborateCollaboratein Order to in Order to AccelerateAccelerate

Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 13

External sources of ideas and innovationBusiness partners

Customers

Consultants

C titCompetitors

Associations, trade shows, etc.

Academia

Internal sources of ideas and innovation

0% 5% 10% 15% 20% 25% 30% 35% 40%

Employees (general population)

Sales or service units

Internal R&D

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

0% 5% 10% 15% 20% 25% 30% 35% 40%

Wherewe work

When we work

What toolswe use

Who WeWork With

Howwe work we workwork we useWork Withwe work

Collaboration is more critical than everCollaboration is more critical than everCollaboration is more critical than everCollaboration is more critical than ever

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

• 70% use social media

C di h b i• Canadians among the busiest users of social media

• LinkedIn has more than 2 millionLinkedIn has more than 2 million Canadian members

• 16 million Canadians on Facebook

• 47% use Twitter

• 58% of Canadians say they have blogged

• 61% of businesses track what’s being said about them online

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

said about them online

BB G ti XG ti X G ti YG ti YT diti li tT diti li t

• Personal and social i

BoomerBoomer

• Free agency and i d d

Generation XGeneration X

• Hope about future

Generation YGeneration Y

• Conformity

TraditionalistTraditionalist

expression

• Idealism

• Health and wellness

Youth

independence

• Street-smarts

• Friendship

Cynicism

• Collaboration

• Social activism

• Tolerance for diversity

• Stability

• Upward mobility

• Security• Youth

Born 1946–1964/5

• Cynicism

Born 1965–1980

• Family centricity

Born 1980–2000

• Economic success

Born 1928–1945

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

Four Four generations cogenerations co--existingexisting

• Highly virtual – 85% of Cisco employees regularly work from home or on the road

62k users533m mins/qtr.

62% growth Y/Y

ConferencingConferencingfrom home or on the road

Growth in

802 units84.5k meetings/qtr.

62% growth Y/Y

TelePresenceTelePresence378k pages

561k edits/qtr.58% growth Y/Y

WikisWikis

Growth in CollaborationServices is

Exploding!Exploding!I t t iI t t i

84 Communities84 Communities1.2m1.2m hits/qtr.hits/qtr.

95% growth Y/Y95% growth Y/Y

IWEIWE

25k videos111k views/qtr.

38% growth Y/Y

VideoVideo103k users

14m IM chats/qtr.65% growth Y/Y

Instant messagingInstant messaging95% growth Y/Y95% growth Y/Y

27k Expertise profiles 4 9m

Directory 3.0Directory 3.0

6k threadsForumsForums

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

profiles 4.9msearches/qtr.

13% growth Y/Y22k messages/qtr.

Virtual Global Annual Sales ConferenceVirtual Global Annual Sales ConferenceGSX

• 20,000 global participants- 90 countries, 270 cities

• 211 million air miles avoided• 88 hrs of consecutive events

- Streaming video- Integration of 7 technologies

• 90% cost savings• Highly engaged employee

experiencep

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

Cisco Benefits: $691M* Net (* Based on $772 million gross contribution minus costs of $82 million)

Reducecosts to i

• Reduce real estate• Avoid travel

$61M

$239M

$380M

Save time to increase

ffi i

improve profitability

Transform business to

increase

• Create newrevenue streams

• Scale expertise• Increase customer

i ti

• Reduce travel• Reduce commuting• Find people faster• Find information faster

$61M $380M

efficiencyincrease growth

Speed process to increase

ilit

intimacy• Enhance executive

communication

• Shorten sales cycleagility • Shorten sales cycle• Speed time to market• Reduce decision-making delays

$92M

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

Cost Cost ReductionReduction

EmployeeEmployeeProductivityProductivity

Customer Customer IntimacyIntimacy

CompetitiveCompetitiveDifferentiationDifferentiation InnovationInnovationReductionReduction ProductivityProductivity IntimacyIntimacy DifferentiationDifferentiation

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

• Start NOW

U d d l b• Understand your employee base

• Figure out social media

• Think distributed

• More with less

• Empower and engage

• Accommodate

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

The Road AheadThe Road Ahead• Knowledge work will be a key occupation

T l t i h d h d t b t d• Talent is everywhere and anywhere and must be connected

• We live in a collaborative world of social media users – that’s changing work-life fundamentals

• Enrich your ability to collaborateYour business future depends on itIt delivers measurable valueIt delivers measurable valueIt drives success – through empowering employees, customers and partners. Allows you to draw the innovation and talent from your organizationIt will be the difference maker

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25