Ciscos Organizational Change

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Cisco

Background

Cisco is an IT enterprise that was founded in 1984 by Leonard Bosack and Sandy Lerner. Bosack and Lerner eventually got married and were the first to develop a multi- protocol router. McJunkin and Reynders (2000) describes the multi-protocol router as “a specialized microcomputer that sat between two or more networks and allowed them to talk to each other by deciphering, translating, and funneling data between them” (Mcjunkin & Reynders, 2000). The organization was responsible for opening and linking all the computer networks around the world together. This linking of all the computer networks was much like the way telephone networks are linked around the world.

The local-area network (LAN) was the first market Cisco competed in and offered quality routers which became the “traffic cops of cyberspace” (Mcjunkin & Reynders, 2000). Cisco eventually became the leaders in this market with their data networking equipment and by 1997, McJunkin and Reynders (2000) states “80% of the large scale routers that powered the Internet were made by Cisco” (Mcjunkin & Reynders, 2000). As the global Internet grew Cisco began to expand its product line, which included a wide range of networking solutions. Website management tools, dial-up and other remote access solutions, Internet appliances, and network management software were all apart of this expansion. In 1990 Cisco market value was an astonishing $222 million and the organization continued to grow into a multinational corporation with over 10,000 employees. Cisco revenues had more than tripled by 1997 and “revenues had increased over ninety-fold since the IPO, from $69.8 million in fiscal 1990 to $6.4 billion in fiscal 1997” (Mcjunkin & Reynders, 2000). Organizational Problem

Cisco is now a large IT enterprise with over 300 locations in 90 countries with a framework that makes its operation more efficient and responsive. The structure of Cisco is comprised of “46 data centers...
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