Ginna Raahauge, Vice President

Customer Value Chain Management IT

The Network is the Platformfor Logistics Optimization

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 2

The Cisco Vision changing the way we

to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners

The Mission

work, and learn. SMlive, play,

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 3

Cisco’s Value Chain… Systems Evolution

Cisco Owned Manufacturing

Outsourced Manufacturing

Lean Manufacturing

Customer Value Chain

1980s 1990 – 2000 2003 – 2009 2010+

Core vs. Context Separation of Activities

Pull-Based Mfg. andInventory Reduction

Web 2.0Collaboration

Market Transition Market Transition Market Transition

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 4

Cisco’s Value Chain … Complex, Global

CVCM

CVCM IT

Manufacturing Team By the Numbers

Hybrid production model

95% outsourced

IT = 69% outsourced

~9,000 employees

90+ locations/32 countries

9 functional groups

$32B Division

>1,000 suppliers

35,000 components

33,000 PIDs

IT = ~4% of spend

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 5

The World is Changing

New Business Models

Social Networking and Mass Collaboration Sustainable

Development

Globalization/New Markets

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The Customer Value Chain is Changing

From Lack of Visibility in Shipments to Optimized

Shipments Through Transparent Visibility

From Single Mode of Transportation to Flexible Mode of Transportation

From Customized System and Processes to

Standardized Systemand Processes

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Logistics Optimization will be a transformational engine at Cisco. We will drive flexibility through standardization. We will improve system agility. We will have a world-class toolset and world-class processes. We will give something back.

“

”Vision for Next Generation Logistics Optimization

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Mapping Needs to Capabilities

Flexibility

Customization

Optimization

OTM Solution

Joint Roadmap

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Mapping Needs to Capabilities

Flexibility

Customization

Optimization

Cisco and Oracle: Realizing the Vision

The Whole Offer

Flexibility

Customization

Optimization

OTM Solution

Joint Roadmap

OTM Solution

Joint Roadmap

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 10

OTM on Cisco’s UCS

The network is the platform for delivering the

virtualized logistics program of the future

Oracle Certified First of it’s kind to deploy on Cisco’s UCS: Unites computing, networking,

storage access, and virtualization

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Realizing Results

Shipment Consolidation

Reduction Cost

Increase Control

Higher Visibility

Faster Decision Making

Estimated Cost Savings

15%

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Capabilities Rollout

Q4FY10 Q1FY11 Q2FY11 and Beyond

FOUNDATIONAL RELEASE

OPTIMIZATION RELEASE

FUTURE STATE

Shipment Planning

Shipment Capabilities: Execution, Rate Management, Customer Pricing

Drop Shipments

Multiple Itineraries

Itinerary Schedules

Oracle R12-enabled Capabilities

Promise to Deliver

Transit Time Calculation

Freight Estimation

Pilot site Global roll-outIncreasing sites by 50%Increasing partners by ~50%

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 13

For Our Customers

work live play learn