Come Together: Business Transformation and Success Achieved Through Collaboration
Nitin Kawale, President
Cisco Canada
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 2
The Productivity Crisis
"Canada's recovery is progressing, but it is
relying heavily on sweat and toil, and not on
brains and innovation." - Douglas Porter, Bank of Montreal economist
"For too long, we as a country depended on a lower dollar, we
used it as a crutch. We've got to get over that, and live with a dollar
at par, or close to it, and find more innovative ways to do things."- Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 3
Productivity in Decline
Declining productivity means we’re missing opportunities
Productivity investment per Canadian worker is 60% of US levels
14th among OECD nations for innovation performance and productivity
Canada’s capacity for innovation and ability to absorb and deploy technology ranked 18th in the world
Canada labour productivity growth is declining:
1.9% annual average each year during the 1990s
0.7% annual average from 2000-2009
Canada needs 4X current rate of productivity and sustain it for 15 years to close to Canada-US gap
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 4
Source: Net Impact Study
Standard of Living Doubles in 14 Years
100%
25%
50%
75%
Years
Compound Productivity Growth
Standard of Living Doubles in 72 Years
Standard of Living Doubles in 24 Years
Productivity Drives Standard Of Living
0 9 18 27 36 45 54 63 72
5%
3%
1%
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 5
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 6Source: Forrester Research
2001 20062002 2003 2004 2005 2008 2009 20102007
300 million connected devices
The Internet Of “Things”
14 billion connected devices
Everything is connected – cars, buildings, hospitals, schools, government
50 billion by 2020
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Social Media and Canadians
70% use social media
Canadians among the busiest users of social media
LinkedIn has more than 2 million Canadian members
16 million Canadians on Facebook
47% use Twitter
58% of Canadians say they have blogged
61% of businesses track what’s being said about them online
Source: Marketing Breakthroughs, 2009
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 8
Implications For The Future Of Work
COLLABORATION IS MORE CRITICAL THAN EVER
Where we workWhen we
work
What tools we
use
Who We Work
With
How we work
COLLABORATION IS MORE CRITICAL THAN EVER
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Business ImperativesDuring Challenging Times
Boundaryless Organization
Competitive Differentiation
Customer Intimacy
Employee Productivity
CostReduction
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 10
103k users14m IM chats/qtr.65% growth Y/Y
Instant messaging
6k threads22k messages/qtr.
Forums
27k Expertise profiles 4.9m searches/qtr.
13% growth Y/Y
Directory 3.0
802 units84.5k meetings/qtr.
62% growth Y/Y
TelePresence
62k users533m mins/qtr.62% growth Y/Y
Conferencing
25k videos111k views/qtr.38% growth Y/Y
Video
378k pages561k edits/qtr.58% growth Y/Y
Wikis
Growth in Collaboration Services is
Exploding! 84 Communities
1.2m hits/qtr.95% growth Y/Y
IWE
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 11
Cisco’s Collaboration InitiativesFY09 Benefits from 7 Distinct Collaboration Programs
In FY09, Cisco Achieved $1.052B in Net Benefits from Web 2.0 Collaboration Solutions, up from $691 M in FY08
Innovation
Growth
Productivity Remote Collaboration (TP / WebEx / UC) $601.3 M
Telecommuting $298.7 M
Connected Workspace $11.5 M
Mac Wiki $ 5.5 M
C-Vision and Video Blogs $11.1 M
Expertise Locator (SOAR) $108.6 M
Sales Productivity (NEW) $ 15.4 M
Total: $1.052 B
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 12
Cisco on Cisco Proof PointsTransforming How We WorkProductivity
Virtual Global Annual Sales Conference
• 20,000 global participants
• 90 countries, 270 cities
• 211 million air miles avoided
• 88 hrs of consecutive events
• Streaming video
• Integration of 7 technologies
• 90% cost savings
• Highly engaged employee
experience
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 13
Case Study: An Energy Company
12 telepresence facilities
Usage: 5 out of 8 hours* each business day
Travel avoidance:
40%* of meeting avoid travel
30%* of participants would have travelled
Travel costs saved:
$1.15M* in 2009 (actual)
$2.09M* in 2010 (projected)
$2.23M* in 2011 (projected)
Payback:
<90 days* for a 500 unit
Three-year net economic benefit = $3.09M*
*This is data that comes from the customer
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 14
Video
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Cost
ReductionInnovation
Collaboration Drives Business Value
Customer
Intimacy
Competitive
Differentiation
Employee
Productivity
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The Road Ahead
Enrich your ability to collaborate
It delivers measurable value
It drives success – through empowering employees, customers and partners. Allows you to draw the innovation and talent from your organization
Our world is changing fast
We live in a collaborative world of social media users
We can’t afford not to be part of the conversations taking place about our brands
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“Generally, most people want to be effective, productive, and feel as though they contribute. As a company, you need to provide the means (foundation). Do that, and people will
individualize what they’re given. They’ll embrace it and show you some fantastic things.”
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 18