Leverage technology

Our
Changing

MY
World

OBSERVATIONS
And How To LEVERAGE
Technology!

Carlos Dominguez
Cisco Systems
Senior Vice President
Ofﬁce of the Chairman and CEO

Wednesday, April 21, 2010

Presentation Topics
18 Years at Cisco
Focus Areas:
Innovation and Collaboration
Future of Work
Social Media
Change Management /
Leadership
Emerging Technology
Nowist

Background Information
14184_11_2007 © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential
2


Goal Today - Make You All - Nowist

ittle Different
k @ World A L
Loo
Take Action

Have Fun
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3

Roadmap Today
Embrace Change
Our Changing World
New Rules
Strategic Trends
Experiment
Game Changing Technology
Things to Know and Monitor

Learn
CREATE A PLAN
Leverage

Ice Harvesting
from lakes

1850s
Ice Industry

Ice factories on
a mass scale

1850s 1900
Ice Industry

Home
Refrigeration

1850s 1900 1927
Ice Industry

Market Leaders Never Transitioned
To Next Technology

Ice Harvesting Ice factories on Home
from lakes a mass scale Refrigeration

1850s 1900 1927


What Is the Average Lifespan of a
Fortune 500 Company?
A.25 Years
B.40 Years
C.60 Years
D.75 Years
E.100 Years

98% of American companies disappear within 11 years

The average lifespan of a company in Japan & Europe is 12
years*

© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential
*The Living Company, de Geus, 1997 10

Change

“It is not the strongest of the species that survives,
nor the most intelligent, but the one that is most
responsive to change”
- Charles Darwin

11


Life Lessons
Develop an Attitude For Personal
Lifelong Change - Embrace It!
Develop A Culture That Is Accepting
Of Change and Rewards Those That
Do.


Speed and Pace of Change
Trend Are Accelerating


SPEED AND PACE OF CHANGE:
2010
- added 200 million new users last year
200M

2009
Christmas 2009 - Amazon sold more electronic books than paper books

A day’s worth (24 hours) of content is uploaded every minute to YouTube

More people return home for their cell phone
than their wallet

American children spend 7.5 hours a day absorbing and creating media ...
as much time as they spend in school.


Technology Has
AProfound

Impact
On Business
16


Innovation and technology
have always been the ﬂashpoint of debate
and concern over productivity
The telephone
The water cooler
Desktop PCs and eventually personal notebooks
Email
Web 1.0
Minesweeper and Solitaire
Cell phones
Telecommuting


Trend Consumers Are the
“New” Innovators


There has been a Role Reversal:
Consumers Are Now Driving the Innovation Circle

New Technology
Technology
Investments

Past:
Business

‣ PCs /
Laptops Innovation
‣ Networking circle
‣ E-mail
‣ IP Telephony

Consumer and Large
Mass Adoption Corporations

Source: Cisco IBSG


New Technology
Technology
Investments Present:
Consumer

Past: ‣ Instant
Business Messaging
‣ Mobility
‣ PCs /
Laptops Innovation ‣ Blogs
‣ Networking circle ‣ Wikis
‣ E-mail ‣ Social Media
‣ IP Telephony ‣ You Tube
‣ Twitter
Large ‣ Virtual World
Corporations Consumer and
Mass Adoption ‣ Gaming
Source: Cisco IBSG


New Technology
Technology
Investments Present:
Consumer

Past: ‣ Instant
Business Messaging
These Are Your New Customers ‣ Mobility
‣ PCs /
These Will Be Innovation
Laptops Your Future Employees
‣ Blogs
‣ Networking Expectations are Different ‣ Wikis
circle
‣ E-mail Decisions Criteria Changing‣ You Tube
‣ Social Media
‣ IP Telephony
‣ Twitter
Large ‣ Virtual World
Corporations Consumer and
Mass Adoption ‣ Gaming
Source: Cisco IBSG

Life Lessons
Observe Your Children
Develop Generation Y Expert in Company.
Target Them as a Group
Early Adopters of Technology


Trend Contribution Revolution


TREND The Contribution Revolution
Letting Volunteers Build Your Business

Everyday Millions of People Make All Kinds of
Voluntary Contributions To Companies

Revolutionizing The Economies Of Entire
Industries


TYPES The Contribution Revolution

Opinions & Ratings: Zagats
Expertise: Wikipedia
Software Code: Firefox & Linux
Creative Expression: You Tube, Flickr
Social Connections: Facebook, MySpace
Specialized Connections: Massify (Film)
Design & Development: Threadless, Ryz
Capital Resource: Skype
Goods: eBay


BENEFITS The Contribution Revolution

Cost Advantage: Free Raw Materials

Scalability: Wikipedia 10X More Articles
eBay- 120 M Items
Craig’s List - 30 M New Classiﬁeds/mo

Competitive Advantage: Network Effect
The More People Contribute the More
Useful it Becomes.


Companies Born Into Change - “Crowdsourcing”

The Customer is the Company
Product innovations come from the people who use the product

“Crowdsourcing“…a focus group on
a grand scale

28

Companies Born Into Change - “Crowdsourcing”

The Customer is the Company
Product innovations come from the people who use the product
Winner gets $1,000 plus $1 for
every pair sold THE HUMAN
NETWORK SHOE
BY CARLOS DOMINGUEZ

Hopes for $40M in revenue
by 2012

“Crowdsourcing“…a focus group on
a grand scale

29

Life Lessons
How Do You Leverage the Contribution
Revolution?
How Do You Get the World to Contribute
to Your Business?


Trend Information Overload


How Many
Block Facebook
On Corporate
Intranet?


Who Owns Social
Media In Your
Company?


Twitter like technology will
be how we predominantly
receive news in the future.

Prediction
36


home proﬁle ﬁnd people settings help sign out

What are you doing? 140

Latest: Great Site with accurate update Swine Flu: Sunday, 4-26 |
update carlosdominguez
7:00 PM Press conference; WHO pandemic ale... about 14 hours ago
28 2143 30
following followers updates

Stock Twits
n. an investment idea and
information service.

37


Name: carlosdominguez
Location: New York

carlosdominguez Web: http://www.cisco.com
Bio SVP @ Cisco - Office of CEO
and Chairman, Love to track how
tech is used in innovative ways.
Follow 20 2132
following followers

Great News...Obama promises major investment in science
http://usat.me/?24889424
11 minutes ago from TwitterFon
Pope Benedict XVI names 5 new saints sorry...i’m not one of them
14 minutes ago from TwitterFon

Technology is deconstructing this industry...Newspaper circulation decline picks up speed
2 hours ago from TwitterFon

Apple and Verizon consider iphone deal, http://usat.me/?34883118
about 2 hours ago from TwitterFon

73 cases of swine fle confired: 100s more feared. http://www.cnn.com/2009/hea...
about 3 hours ago from TwitterFon

Interesting find. ‘Pickled’ baby mammoth opens window to Ice Age http://usat.me/?34822226
7:12PM Apr 21st from TwitterFon 38


Chambers RSA Search Advanced Search

40


Chambers RSA Search Advanced Search

41


“Swine Flu” OR Flu Search Advanced Search

42

Pope to Priests: Go Forth and Blog
Pope Benedict XVI urges priests to integrate social
networks into church
A strong proponent of social media,
the Pope has a web site, YouTube
channel ...and 6 months ago, started
using Facebook and iPhone apps
to spread the gospel.


Establish Guidelines

To prevent information leaks and other liabilities, companies are drafting
guidelines for social media interaction.


PR IR Corporate

HR

Finance Who Owns
Social Media? Sales

Customer Product
Service Development

2010:
The Year of the Tablet PC


Alert:Prediction
Profound Effect On How We Use
Computers

Change How We Interact With
Information

Create A New Genre Of Business
Models


By 2014
90% of all consumer internet traffic
and HALF of all mobile traffic will be

VIDEO
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Cisco VNI


Deﬁning Video

Any Content, Anytime, Anywhere On Any Device

HDTV Mobile PC Tablet

PERSONAL

Video User
Applications Generated

Non-Realtime

Personal Video

‣ Portal for Talent & Ideas
‣ Vast Amount of Content
‣ Educational Portal
‣ Languages
‣ Dance
‣ Math
‣ Entertainment


Khan Academy
Online Video Education for Everyone

Founder Salman Khan (former Investment Banker)
Started out by helping his niece with math

900+ videos on YouTube covering basic arithmetic to chemistry

All courses are free
Accessed on demand at a student’s own pace


The Search for Gollum
Unofficial Prequel to Lord of the Rings

✦ 40 minute independent film
✦ Non commercial production by volunteer film
maker and Tolkien fans
✦ Produced solely for viewing over the web
✦ 3 M+ Viewers
✦ Inexpensive


The Top 3 Most Watched Web Series
January 2010
Rank Title True Reach View Count Sample

1 Fred 2,471,955

2 Happy Tree Friends 17,697,316

3 Deca TV 13,151,356

‣ Teenager from Nebraska plays
American Idol ﬁctional Fred Figglehorn
9th season premiere in a weekly YouTube series
30 million viewers
Lost ‣ The “Fred” channel launches
6th season premiere in 2005
12 million viewers
‣ First YouTube channel to hit
1 million subscribers
‣ Some of his video’s have 7M+ views

Personal Video (User Generated)


Deﬁning Video

Any Content, Anytime, Anywhere On Any Device

HDTV Mobile PC Tablet

PERSONAL BRANDED COMMUNICATIONS

Video
Applications

Non-Realtime Realtime

Work: Cisco TelePresence
Transforming the Way Business Gets Done

“You forget there’s any technology going on between
you and the people you’re meeting with.” - Gartner

“The Best of 2006” “This is a dream come true.”
- BusinessWeek


December Company Meeting:

Entirely Virtual 6 locations:

‣ Canada, Israel, United
Kingdom, North Carolina, Texas
and live in San Jose, CA

‣ 11,000+ watching

Virtual Company Meetings 60


Cisco TelePresene
Launched in October 2006

712 units deployed
150 cities
5,000 weekly meetings
350,000+ Meetings to date
Used 67% or 6-7 hours of a 10-hour day

Saved $260M in travel costs

Run it all with 8 people

550 customers worldwide

Who’s Using Business Video
‣ Video has doubled from two years ago
‣ Education sector has the highest current percentage of video trafﬁc
‣ Video is expected to double gain one year from now
‣ Manufacturing expects the sharpest increase over the next two years

30.0

22.5
Two Years Ago
Last Year
Current 15.0
Expected in One Year
Expected in Two Years
7.5

0
Finance Retail Manufacturing Education Other

*Business Video Study, Cisco Systems, November 2008

Video
Applications
CONSUMER COMMUNICATIONS


In 5 years our primary mode
of communications will be
via video.

Business Travel will be 50 -
75% Less

User Generated Video Will
be Common in Business

Video will enable more
collaboration and
innovation.

My Prediction
67


Augmented Reality
Making products come alive
Fashionista - virtual dressing room via your laptop

68


Carlos Dominguez
carlosdominguez.cisco.com
carlosd@cisco.com
http://twitter.com/carlosdominguez
Facebook: carlosdominguez


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