Cisco and Web 2.0

Have you ever wondered what it would be like to work from home and feel like you we’re at the office? How about having that board meeting without getting on a plane to meet face-to-face? At Cisco, that is exactly what they have been doing for some time. What started as a way to telecommute is turning into a way to feel like that colleague is still in the next office. They are using video and telecommunication technology to create the look and feel that person is right there with you. If the old adage holds true that ‘time is money’, then this is a giant step for the business world because companies will be saving both.

Cisco began in 1984, founded by a group of computer science majors. The first push at the firm was to get businesses connected to one another. Next, Cisco looked for information technology to drive productivity gains. Now they are looking to transform the business with TelePresence, a video conferencing system that uses three screens, surround sound, and HD video. This push is being driven by the CIO Rebecca Jacoby, who envisions this being used in the future of doing business. Also, using wiki, video blogs (vlogs), IM, and other collaborative efforts the company has changed the way they do things and created a more free flow of ideas.

Furthermore, Cisco has realized the benefits of a collaborative workplace and the flow of ideas from the bottom up as well as top down. This collaboration technology has led to multibillion dollar projects being undertaken resulting from this new way of communicating vision and ideas. We will investigate and analyze this technological change and its implications for businesses. This will include a discussion on the benefits to business and the economy, as well as the specific savings it creates. Cisco is focusing their work on a proprietary technology and we will evaluate that decision with comparisons to similar business decisions. Lastly, an analysis of the Cisco created ‘I-Zone wiki’ to examine how the generation and sharing of ideas through the technology is helping Cisco’s business.

Collaboration Technologies and its Benefits

“What are the main business benefits of the collaboration technologies described in the case? How do these go beyond saving on corporate travel? Provide several specific examples.”

There are many business benefits of using the collaboration technologies mentioned in this case study. One of the obvious benefits is that the cost of doing business decreases. A good example the case provides is how the executive assistant, Margaret Hooshmand, is able work at two places at once by using telepresence to do her job. Using this type of technology saves the company the cost of hiring another employee and freeing up the funds so they can be used elsewhere. This is a pretty creative use of the technology and depending on how frequently it is used in this regard would probably increase Cisco’s revenue stream (O’Brien, Marakas).

The use of video blogs and other video communication technologies such as telepresence and video conferencing within a company can be of major importance in international companies because people from various locations can be within the same development/project team. Video blogs are useful to the employees of a business because the video can be saved and uploaded onto the company’s intranet so it can then be easily accessed at a later time. Collaboration technologies have allowed us to not only overcome geographical distances, but time constraints. Instant messengers are used all the time within the business environment for co-workers to communicate with each other. I use instant messenger at work regularly for short questions and answers or if my manager needs to be made aware of any defects that need to be solved.

Another benefit of using Web 2.0 technology such as wikis, blogs, and various instant communication applications is that it provides a medium for new or existing ideas to be submitted, reviewed, and supported. Collaboration technologies allows for greater interactivity and decision making regardless of the differences in location between participants. This method can be both effective and efficient allowing for increased productivity in the research and development phase of creating and supporting products. Also mentioned in this case study is that collaboration technologies provide business benefits by the frequent use and in-house testing of collaborative products that allow Cisco, or any other company, to refine, innovate, and create new and better products (O’Brien, Marakas).

Cisco’s Strategy

“Michelle Damrow of Polycom notes Cisco is betting on a proprietary standard for its TelePresence product, while competitors are going with interoperability. Do you agree with Cisco’s strategy? Why or why not? Defend your answer.”

I agree with Cisco’s strategy for betting on a proprietary standard for its Telepresence product for several reasons. Cisco is one of the most recognizable and reputable companies in developing enterprise networking equipment. Their business model and operating strategy has always been based on leveraging proprietary products for customers that’s become the standard in the market. A proprietary strategy also allows Cisco to maintain control over their products in terms of its functionality and compatibility. Since most enterprises already utilize Cisco networking products it would be ideal for them to use Cisco’s Telepresence product to ensure it functions from a compatibility perspective. The proprietary strategy ultimately would have a huge impact on the amount of revenue that Telepresence could add to the company. As video conferencing becomes more of the norm in terms of how companies collaborate and communicate, Cisco Telepresence will only grow with the demand. In conclusion, the proprietary standard of Telepresence will be beneficial in numerous ways. It allows Cisco to maintain their business model and standards, it allows for control of the product, and it will become a huge revenue booster as the demand grows.

The I-Zone

“Think about the I-Zone wiki described in the case, Cisco’s forum for new business ideas, and its seeming success in that regard. Why do you think that is the case? Do these technologies foster creativity, provide an opportunity to communicate already existing ideas, or both? Defend your answer.”

The I-Zone wiki has really taken off for Cisco mainly because Cisco believed in it from the top down. Everyone from the CIO down was using and promoting the use of I-Zone. They quickly realized that “to lead the next phase of the Internet” they must reinvent themselves, and what better resource to achieve this goal then employees. They know the product, the market and hopefully want the best for the company. I think with upper management support these technologies (wiki’s, vlogs (Video Blogs), etc…) can be very beneficial and be a hot bed for creativity and not for just technology industries.

We already know that Cisco, IBM, Microsoft, etc… use these technologies and they flourish. But these also can also provide a great deal for non-technology centered industries (finance, etc…). If given the proper support from upper management they cannot just thrive they can really help bring ideas to the next level. I have experience where these technologies have both flourished and have fallen by the way side and one of the main contributing factors was upper management support and implementation.

Just as these technologies thrived in Cisco, their CIO and her direct reports had to live, breath and implement this new technology and everyone else will follow.

Moreover, the telepresence and collaborative technologies pioneered by Cisco are in their grassroots phase with large potential impacts on the future of business. There are myriad benefits to business in utilizing these new technologies including significant cost reduction, increased speed of doing business, and fostering new and innovative ideas. In our increasingly global world separated by significant distances this new technology presents significant cost savings. Cisco, with their market share and leadership, is well positioned to implement their proprietary platform allowing them to control the technology and create barriers to entry into the telepresence market. As for the collaborative environment that Cisco has fostered from a top down approach: Cisco has created a medium that has been utilized to prove that great ideas can come from any level of the organization. The future is bright for telepresence and collaboration technologies. We look forward to the business of the future.

Works Cited

[1] O’Brien, James A., and George M. Marakas. Management Information Systems. Boston: McGraw-Hill Irwin, 2010. 302-03. Print.