Shri Ram College of Commerce September 20, 2019

CISCO
| MPA: Control Techniques and Information Technology |

About
Cisco Systems, Inc. is an
American multinational
technology conglomerate
headquartered in San Jose,
California, in the center of
Silicon Valley. Cisco develops,
manufactures and sells
networking hardware,
telecommunications
equipment and other high-
technology services and
products.

Brief
Control Techniques
Cisco Systems was founded in A widely used device for managerial control is the budget.
December 1984 by Leonard Budgeting refers to the formulation of plans for a given future
Bosack and Sandy Lerner, two period in numerical terms, budgets are therefore statements of
Stanford University computer
anticipated results, either in finances terms or in capital budgets.
scientists. They pioneered the
concept of a local area
Budgeting
network (LAN) being used to
connect geographically As such, budgets are statements of anticipated results, either in
disparate computers over a financial terms - as in revenue and and expenses as well as capital
multiprotocol router system. budgets or in non-financial terms, as in budget of direct-labour-
hours, materials, physical sales value etc. In aspects, budgeting is
By the time the company went
public in 1990, Cisco had a
often seen as tool for accomplishing charge over managerial acts. 

market capitalization of $224
million. By the end of the dot-
com bubble in the year 2000,
Cisco had a more than $500
billion market capitalization.

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Shri Ram College of Commerce September 20, 2019

How CISCO does it?

Being a strongly engineering driven company it takes up several
engineering projects and breaks it down into a number of events,
such as completion of preliminary drawings, an experimental
model, a package design, a packaged prototype, and a production
design.

On several occasions, CISCO also breaks down projects into

What CISCO builds?
Cisco’s main office is based off in
San Jose, California, United
States or what is commonly called
Silicon Valley. Cisco works in 7
key product domains particularly
• Networking
• Wireless and Mobility
• Security
vertically viable subproject-for example, the design of a circuit, a
networking gear, a sensing device, a signal feedback device, and
similar components-that can be completed individually, in a time
sequence so that components are ready when when they may be
needed to them.
Milestone budgeting-breaks a project down into controllable
pieces and then carefully follows them, it effectively allows a
manager to see a complex program as a series of simpler parts
and thus to maintain some control through knowing whether a
program is moving towards the ends of success or sheer failure.

• Data Centers

• Analytics

• IoT (Internet of Things)

Connectivity

• Software

Cisco offers the following

services to its clients all across the
globe:

• Technical Advisory

• Implementation (IT Methods)

• Training

• Technical Consistency

• Managed Technical Skills

A high tech laboratory in CISCO, San Jose where all data packets
are tested, and security checks are conducted for authenticity.

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CISCO & the IT Industry

Cisco, in today’s time is regarded as a networking giant, with

little competition in this big world. By 1997, Cisco sales rep had
breezily usurped and adopted IBM’s old mantra, and had started
to boast about it.

John Chambers Cisco had successfully established itself as the Gold Standard in
networking gear. Since Chambers had assumed title of CEO,
John Chambers is regarded as Cisco’s market capitalisation had skyrocketed from $4 billion to
one of the best managers there more than $43 billion.
has been at Silicon Valley, CA,
United States of America. He is Cisco had started to pickup very successful in the market and
the former Executive Chairman could now slash prices drastically and enter into strategic
and CEO of Cisco Systems Inc. partnerships and alliances to grow itself into a multi billion dollar
company that it is today-by establishing dominance in global data
Chambers joined a startup Cisco
communications.
founded in 1983 as senior vice
president, worldwide sales and
operations.1990–1994, senior
vice president of worldwide During the expansion period, the key priority management
operations,1994–1995, executive principle rules laid down by John Chambers, for a strategic
vice president. alliance were threefold:
Since January 1995, when he was
1. It has to benefit the customers. The alliance needs to make
46 years old he assumed the role
sense to the customers. They need to understand the goals of
of CEO, the company grew from
$70 million in annual revenues to
the alliance.
a run-rate of approximately $40
2. It must result, within 3 years, in $500 million to $1 billion in
billion in 2007. In November
incremental revenue, per year.
2006, he was named chairman of
the board, in addition to his CEO 3. It needs to be a competitive landscape change for both
role. In October 2016, he was partners
reported to own over 1.7 million
Cisco shares worth approximately
US$54 million.
By 1999, Cisco had well won the data-networking race, Cisco’s
In December 2017, Chambers share had gone up substantially, the data com industry was
stepped down from his role as
rattled and independent survivors lived in a Cisco-dominated
chairman of Cisco's board,
world, selling low margin or niche products while Cisco
officially leaving the company. He
holds the honorary title of
continued to enjoy high profits and rapid growth. Cisco had then
Chairman Emeritus, but holds no entered the Telecommunication market, and was ready to take it
authority within the company. down.

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Things you didn't know
about Cisco Systems
• Cisco is short for San Francisco
• The logo represents the
Golden Gate Bridge
• Cisco has 71,500 employees
world wide
• Cisco has acquired more than
170 companies
• Cisco has more than 70,000
channel partners to assist them
in their operations
• 380 Cisco worksites all across
the globe
• Presence in more than 160
countries of the world
• After dozens of turndowns from
venture capitalists, Cisco nailed
$2.5 million in funding in 1986
• 21. Today's market cap: $152.5
billion
• Cisco's first acquisition came in
1993, with the purchase of
Crescendo Communications
• Cisco calls its strategy "build,
buy and partner
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September 20, 2019
CISCO and Convergence
Technology undergoes rapid changes as illustrated with the
concordant convergence which means the integrating computers,
entertainment systems, and the Internet.
Many players in the market ranging from Apple to Hewlett-
Packard to Microsoft, to Sony, and to Cisco.
Cisco’s extremely major competitive strength is to play around
with networking gear, with other companies in this sector, for
e.g. Linksys. To focus on the customer, Cisco introduced the
Linksys Wireless Home Audio multi-room studio. Other Cisco
brands include large-screen TV setup boxes by Scientific Atlanta
and Flip by Pure Digital producing very simple video cameras.
By combining their strengths in networking, the company moves
forward taking advantage of their current networking trend.
Keeping the Leaders
One of Cisco’s amazing strengths is its ability to hold onto top
level managers-especially those acquired from other and
competing companies.
En route to creating the technology that will change the future of
communications , Cisco seems also to be dead set on changing
the rules for managing an organization.
The business models of command-and-control organization, like
that at Wang in the 1980s is passe in contrast.
In the high-tech world, where management seems to usually turn
over in two “Internet years” - one actual calendar year for seven
Internet years-Cisco seems to hold onto its executives for
eternities. The secret lies in the foundation of Cisco’s way of
being to imbue the executives-and their teams-with a strong
sense of ownership of their mutual assets.
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Shri Ram College of Commerce September 20, 2019

Bibliography

Making the Cisco Connection by Wiley

Essentials of Management by Harold Koontz and Heinz Weihrich


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Shri Ram College of Commerce September 20, 2019

Lorum Ipsum Dolor 6