28-07-2012, 12:50 PM
Case study of CISCO
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OVERVIEW OF Cisco.
The company “CISCO” was founded in 1984 as “cisco” by Len Bosack and his wife Sandy Lerner, who both worked in Stanford University as computer operations staff alongside Richard Troiano.
The company was founded in San Francisco and this led to the engineers’ decision to call is “cisco” an all capital letter spelling at the initial stage.
By 1990, “NASDAQ” stock exchange listed CISCO in their stock exchange.
The company applied for a U.S. trademark of “Cisco” in June 13, 1988.
This trademark was granted the following year on the 6th of June, 1989. In March 2000, when the internet business was booming, CISCO was quoted as the most valuable company in the world with a market value of over 0 billion (USD) and in July 2009, with a market capitalisation of roughly 8 billion it is still rated as one of the most valuable companies.
WHY RE-ENGINEER IN CISCO?
Re-engineering is a necessity for companies and organisations that want to increase their customer base which further results in profit, dominance of the market and a role in the competitive market which is what the world has finally turned to.
These are achievable because re-engineering focuses on some vital aspects which affect the performance of the organisation. These aspects are: -
CUSTOMERS
REQUEST: - often the pattern of request from customers usually calls for a re-engineering of which a failure to do this could be detrimental to the organisation. Usually when a product or service begins to gain popularity, there is need for an increase in customer demand and this usually put a lot of pressure on the company because in an attempt to meet customer request, they often end up producing sub-standard products due to lack of available materials and time but with a business process re-engineering in place, they would re-structure the organisation to be able to accommodate such requests and in turn they maintain their customers and even acquire more and this would be an accomplishment of the organisations goals regarding to customers.
SUPERIORITY: - a desire and need from sophisticated and high standard goods and services is also a call for re-engineering. This is because existing systems including processes and staff might not be able to meet up the sophistication in demands and this might be a source of breakdown or failure to the organisation.
CHANGE IN CUSTOMER DESIRE: - in most cases, customer satisfaction is usually the sole aim of any organisation. Non satisfaction of customers means that the production cycle isn’t complete and the entire business process would be stuck since there are no consumers for the product.
COMPETITION
LOCALLY: – local competition in the market would also be a reason for re-engineering as because as each day passes, the market becomes a competitive ground for all participants as they have to re-structure, overhaul, remodel etc. to meet up with the standards of other competitors in the market and it is only re-engineering that can provide such room.
INTERNATIONALLY : -products and services which have gone internationally and needed seamless communication channels irrespective of location made Cisco as a company thick of such in its re-engineering design. This led to Cisco’s modification of conference calling with its product called ”TELE PRESENCE”. This product enables a conversation involving a large number of people across the globe to communicate with each other in video and with high speed. This is part of Cisco’s re-engineered process towards communication and uniting the entire populace.this was as a result of Cisco’s understanding the need for international competition and satisfaction and after strategically studying the market and comparing it with what it needs, it came out with this product and this has made Cisco a name to reckon with when it comes to telecommunication as a recent survey among companies saw that 89% of them had at least a Cisco phone in their organisation while some entirely depended on Cisco for their communication needs.
A NECESSARY CHANGE
IN TERMS OF INFORMATION TECHNOLOGY AND SYSTEMS: - with the drastic turn around in technology and the globe gradually becoming a networked and wireless world, there is a crucial need for organisations to re-engineer the process to accommodate this trend as a proper business process re-engineering process well implemented would definitely cost a fortune to establish but would bring a lasting reduction in cost of production. This could be evident in Cisco’s launch of its product called “MCO” (manufacturing connection online) in 1999.
The manufacturing connection online directly and immediately channelled orders from customers to manufactures as well as suppliers. This in turn drastically reduced operational costs for Cisco, reduced cycles involved in payment to the suppliers, eradicated cost of papers used for paper based purchases and this brought a total savings of million (USD) for material costs and another savings of million normally spent on labour and this also made a whooping 45% inventory reduction.