Secondly, Cisco found distinctive methods to service its customers, performing its internal operations, coordinating with its suppliers, and successfully acquiring and assimilating other firms whose products complemented those that Cisco already had. This indicates the activity rate is high and the consistency is going well, since the company can handle several activities in a short time. For instance, Cisco is the only vendor to create a flexible and innovative suite of support programs that customers can select individually or in any combination that is right for their network. Unlike other company¡¯s single-focus support strategies, Cisco takes advantage of resources across multiple areas of expertise¡ªresources available through the Cisco partner network as well as from Cisco. (Moore, retrieved 11th Sept. 2006) Cisco¡¯s sales database is updated three times a day, allowing Cisco management to keep close records on whether sales goals are being met. Additionally, financial data that once took weeks to gather and verify are now collected automatically as part of doing business, this helps the company react more quickly to market shifts and competitive treats.
Thirdly, Cisco outsources much of its production, in many cases, suppliers send the product directly to customers without additional handling by Cisco. It outsources as much of its production as it can focus instead on the higher-margin interface with the customer. Cisco outsources its research and product development essentially, allowing small high-tech startups to shoulder unproductive costs, swallowing them whole when these little guys develop solutions that meet Cisco customer needs, and washing their hands of those that don't. (i2 Powers New Economy, retrieved 11th Sept. 2006) Outsourcing activities leverage the company¡¯s competitive advantage, and then it can achieve maximum shareholder value. Outsourcing allows Cisco to focus its entire energies on its core business¡ªthose activities at the center of its expertise, and that are the most critical to its competitive and financial success. Here outsourcing can save the time for customers since it cut the time it will take to get newly developed products into the marketplace; it also improve the output rate and reduce the downtime. Moreover, activities can be performed cheaper and better, it also reduces the company¡¯s risk exposure to changing technology.
Question 2:
Integration is mutual responsiveness and collaboration between distinct activities or processes. (Alter 2002:100) In general, there are five different levels of integration between different business processes, including common culture, common standards, information sharing, coordination, and collaboration. In this case, Cisco Systems provides five levels of integration.
Firstly, Common culture is met at Cisco, which means sharing understandings and beliefs. In this level, people involved in two independent processes share the same general beliefs and expectations about how people communicate and work together. These shared beliefs make it easier to work together and resolve conflicts whenever necessary. (Alter 2002:102) Here, Cisco¡¯s employees have to come to expect everyday data processing tasks will be done quickly and efficiently through web-based applications, such as engineers, salespeople, and others who need to travel to customer sites can either their expense reports using the Internet instead of handwritten reports. This helps improve the company¡¯s internal efficiency.
Secondly, Cisco in this case also meets the level of common standards, which means using consistent terminology and procedures to make business processes easier to maintain and interface. (Alter 2002:102) In specific, customers and employees can use information systems, both its internal Oracle enterprise software and Internet-based systems that provided data and communication links. By integrating data, voice, and video over the network, it can provide customers with essential information at anytime and anywhere. Customers will enjoy benefits like an immediate ability to identify non-standard network software, increased network inventory knowledge, increased effectiveness and focus of operations teams, and faster problem resolution through shared network knowledge. (Pinto, retrieved 12th Sept. 2006)
Then information sharing is achieved at Cisco, which is the least obtrusive way to attain responsiveness between processes. This level of integration is accessing to each other¡¯s data by business processes that operate independently. (Alter 2002:102) In particular, Cisco uses a system of top-down transparency in which managers at every level in the company have extensive, up-to-date information on sales and other important business transactions. At any time, Cisco¡¯s chief financial officer can obtain the company¡¯s revenues, margins, orders, discounts given to those orders, and top ten customers. This helps the company react more quickly to market shifts and competitive threats.
Next, Cisco achieved coordination that means negotiation and exchange of messages permitting separate but interdependent processes to respond to each other¡¯s needs and limitations. (Alter 2002:102) For example, Cisco found distinctive methods for coordinating with its suppliers. Sometime, customers don¡¯t want to just order from a web site and receive goods a few days later, they want to order online and pick up items at the stores. They also want an integrated account for online and offline transactions. To meet these customer needs, the company needs to coordinate with its suppliers.
Finally, the level of collaboration is also met at Cisco, which is so strong interdependence that the unique identify of separate processes begins to disappear. (Alter 2002:102) At Cisco, it successfully acquiring and assimilating other firms whose products complemented those that Cisco already had. Cisco Systems and Microsoft Corp. announced they are working together to provide collaborative real-time capabilities for businesses through the integration of Microsoft® Office Communicator 2005 and the open Session Initiation Protocol (SIP)-based Microsoft Office Live Communications Server 2005 with the new SIP-based Cisco Unified Communications system. Cisco and Microsoft have agreed to work together to create a converged solution that will provide desktop Internet Protocol (IP) telephony call control. Cisco¡¯s SIP interface allows customers to build solution sets to meet their business needs with flexibility and simplicity. To enable this solution, Microsoft Office Live Communications Server and Microsoft Office Communicator will interoperate with the new Cisco Unified Call Manager. (Cisco and Microsoft Collaborate to Enhance Real-Time Business Communications, retrieved 12th Sept. 2006)
I agree with the different levels of integration listed as above that Cisco already has adopted. Although Cisco has done well by using the web for Internet efficiency, it should pay attention to the security issues caused by the Internet. For instance, it should often update the technology and procedure; moreover, the company should take some actions to prevent the information from being lost.
When the company faces any organizational downsides, this will have an impact in the level of information sharing of integration. The financial officer cannot obtain the company¡¯s financial reports right now if the information system is no longer used; in addition, if the sale¡¯s database is not updated as soon as possible, the management can¡¯t keep close records on whether sales goal are being met. These activities will all influence the profits of the company. One level of integration falls down, others falls down as well in the following.
Question 3:
EMC Corporation is the world leader in products, services, and solutions for information management and storage. EMC¡¯s mission is to help customers get the most value from their information and their relationships with the company. It also uses the web for internal efficiency. In some ways, the company operates its important processes in a style similar to the way Cisco operates.
Firstly, EMC also uses information systems for customers, it provides eServices serving customers, which is a powerful array of online support tools. With EMC eServices the customers get the advanced self-help tools they need to address issues quickly and easily at anytime, anywhere. Available to customers who have registered on the EMC Powerlink extranet, these powerful tools help customers resolve hardware, software, and performance issues faster and easier than ever. In brief, EMC eServices help customers rapidly resolve issues and get on with business. (EMC Support Services, Retrieved 13th Sept. 2006) For example, customers get fast access to EMC knowledgebase, an invaluable repository of thousands of solutions to potential issues. EMC knowledgebase provides the detailed information the customers need to rapidly resolve issues and gives them fast answers to their specific questions. (EMC eServices, retrieved from 13th Sept. 2006)
Additionally, like Cisco Systems, there are some collaborative processes at EMC as well. To ensure customers get the most value from their information infrastructure, EMC have created some of the industry¡¯s strongest groups of business partners. This can extend the company¡¯s capabilities and advance business objectives to meet customer requirements. For instance, Authorized Services Network (ASN) Solution Alliances Partners integrate with new EMC solution offering to meet more complex customer requirements. Partners can leverage the strength of the EMC brand and offer mutual customers the industry¡¯s most complete information infrastructure solutions. ASN Solution Alliances Partners supplement core EMC skills in areas where EMC branded solutions may require essential adjunct partners services. Solution Alliances Partners deliver solutions and services in the following four categories:
Integrator Partners resell EMC solutions with their own wrapper.
Consultant Partners provide solution-specific consulting and assessment services that are part of the EMC solution.
Specialist Partners provide solution-specific design and implementation services that are part of the EMC solution.
Developer Partners help develop IP and methodologies for an EMC solution in areas where supplemental technical expertise is required.
(Authorized Services Network Partner Program, Retrieved 13th Sept. 2006)
In conclusion, EMC adopts some similar operations in business processes as Cisco. Technology has been the great tool for these two companies, the Internet, network-to-network computing, switching and routing, and other networking technologies allow information to move at a high speed. These technologies allow companies to compete against much larger companies. After using the web for internal efficiency, these two companies will have very good prospects.
References:
Alter, S. 2002, Information Systems, 4th Edition, Pearson Education
Elfrink, W. 2006, Cisco Services Accelerating Customer Success, Retrieved 11th Sept. 2006 from http://newsroom.cisco.com/dlls/tln/exec_team/elfrink/perspectives.html
Moore, G. B. 2006, Advanced Services, Retrieved 11th Sept. 2006 from http://newsroom.cisco.com/dlls/tln/exec_team/moore/perspectives.html
i2 Powers New Economy, Retrieved 11th Sept. 2006 from http://www.fool.com/portfolios/rulebreaker/2001/rulebreaker010104.htm
Pinto, J. 2006, Technical Support - Creating Customer Value, Retrieved 12th Sept. 2006 from http://newsroom.cisco.com/dlls/tln/exec_team/pinto/perspectives.html
Cisco and Microsoft Collaborate to Enhance Real-Time Business Communications, Retrieved 12th Sept. 2006 from http://www.microsoft.com/presspass/press/2006/mar06/03-06CiscoRTBCPR.mspx
EMC Support Services, Retrieved 13th Sept. 2006 from http://www.emc.com/global_services/support/index.jsp
EMC eServices, Retrieved 13th Sept. 2006 from http://www.emc.com/global_services/support/eServices/
Authorized Services Network Partner Program, Retrieved 13th Sept. 2006 from http://www.emc.com/partnersalliances/programs/asn.jsp