Cisco Systems, Inc. is an American multinational corporation that designs, manufactures, and sells networking equipments around the globe which is considered as the giant in networking. Cisco headquarters locate in San Jose, California, United States. Cisco hardware, software, and service offerings are used to create the Internet solutions that make these networks possible, giving individuals, companies, and countries easy access to information anywhere, at any time. Cisco has pioneered the use of the Internet in its own business practice and offers consulting services based on its experience to help other organizations around the world. Cisco was founded in 1984 by Leonard Bosack and Sandy Lerner, a married couple who worked as computer operations staff members at Stanford University. Richard Troiano joined later with them. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ 100 Index and the Russell 1000 Growth Stock Index. John Chambers is the current Chairman and CEO of the Cisco. Company revenue was US$ 46.061 billion in 2012, while its operating income was US$ 10.065 billion. Net income US$ 8.041 billion 2012 while it has US$ 91.759 billion 2012 of total assetsand total equity of US$ 51.301 billion in 2012. E – Business Innovation at Cisco
Cisco’s e-business innovation has begun in early 1990s. Cisco’s annual revenues increased from $1.5 million to $340 million in 1992. Their market share rose from 50% to 85%. It was a big challenge to meet the high demands generated by rapid growth of their sales. In order to serve their customers they had to •Hired engineers as quickly as possible, growing the engineering staff at over 160% per year. •Extended telephone support hours.
•Invested in a system to prioritize calls.
•Built the technology to remotely diagnose problems customers had with their products. •Offered training courses and consultations services to customers. During early 1990s companies invest a fixed portion of their annual budget on IT. It was 0.75% in Cisco 1993. In 1994 board of directors approved to invest on implementing $15 million Oracle ERP system. It was 2.5 % of 1993 revenues and more than 3 times the previous year’s IT budget. Company also approved total budget exceed $100 million to upgrade IT in the company. That upgrade integrated all of Cisco’s systems, and provided the company with a centralized information source. Cisco tried to use information technology to overcome the issues involve with high demand. It launched an official Internet site Cisco.com, primarily dedicated to company and product information as a result of that in 1991. It also launched the Cisco Connection Online for Cisco’s customers, which include a Technical Assistance Center where customers could easily solve their technical problems, and a list of product faults and remedies for faults. It also set up electronic bulletin boards. These initiatives forced online technical assistance which simplifies the burden on Cisco's engineers and customer service representatives. Customers could download software updates, check manuals and email Cisco employees with questions by the 1993. Cisco E-Business Models
Cisco involve in Business-to-Business (B2B) e-commerce as well as the Business-to-Consumer (C2C) e-commerce. B2B
Businesses can gain significant financial returns, can attract and retain customers, reduce their expenses and uplift their reputation, brand name and corporate identity with favorable return on investment with the use of the Internet and e-business strategies. It helps to increase employee productivity, support for decision-making etc... B2B facilitate electronic transactions to happen between businesses. The Internet and business's dependency on other businesses for their supplies, utilities, and services has enhanced the popularity of B2B e-commerce. Extranets are the most commonly used for...