- Good background and theory into B2B e-commerce
- The impact increases and organizations all over the world are using e-commerce solutions
- Improve ability to attract and retain customers, reduce expenses, & reinforce their brand
Introduction
Business to business (B2B) e-commerce can be defined as an enabling service or services that assist business to consumer (B2C) e-commerce transactions. However, this definition is not confined to the supply chain. In addition, B2B does not include buying to resale. Moreover, this action must be customer initiated. For example, a person would like to purchase more checks. If this person goes to their bank to acquire more checks, depending how the bank gets their checks, this service could be a business to business transaction. Once the customer puts in their check order to the bank, the bank then goes to a check printing company to construct the check. The printed check will then be directly sent to the customer from the check printing company without going through the bank. Therefore, B2B transaction is the transaction between the bank and the printing check company to the customers.
In this case study, the role of the bank can be thought of as the intermediary, the customer as the client and the check printing company as the supplier. Figure 1 illustrates the transactions visually. Furthermore, the transaction must be client initiated and the transacted path must occur in the same path as the arrows. With this in mind, Cisco has a role as all three positions in business-to-business e-commerce transactions.
As the Internet and Intranet continues to grow exponentially, the impact increases and organizations all over the world are using e-commerce solutions in an increasing rate. Organizations used Internet and Intranet for cost savings, efficiencies, budgeting, resources research, and customer service and sales staff and others. B2B processes such as purchasing, supply chain management, manufacturing, human resources, sales and contact management are really uncommon right now among the growing companies as both the buyers and sellers can reap the advantages of the effect of the Internet and Intranet.
By taking advantage of e-commerce and the Internet, businesses can reap significant financial returns, improve their ability to attract and keep customers, reduce expenses, and reinforce their branding and corporate identity, while gaining a better return on investment. At the same time, they can enjoy operational gains in employee productivity, decision-making, employee retention, and streamlined processes.
The benefits of e-commerce extend to participants of all sizes, from small, growing organizations to industry giants. Armed with efficient B2B e-commerce capability, even small and mid-size suppliers can potentially establish trading partnerships with the more build bigger corporations by placing their product and service information online.
Cisco Systems, the leader in networking solutions for the Internet is one company that took such advantage. Cisco not only makes hardware that allows B2B to work (routers, switches, and the like) but also serves as a model of how companies can best exploit the Internet. Cisco customers can visit its web site to check out product specs and make their orders. That information is then routed on the Internet through Cisco to its suppliers. A full 65 percent of the orders move directly from the supplier to the customer. Cisco never touches them. The products are built only after they are ordered, so puny, if any, inventory is kept in warehouses (Holstein, 2000).
Cisco History
Leonard Bosack, Sandra Lener along with three other colleagues founded Cisco Systems in 1984. Bosack developed the technology to link his computer lab’s network with his wife’s network in Stanford University. To anticipate the market for networking devices, Bosack and Lener mortgaged their house, bought a used mainframe, put it in the garage, and exhaust their home to invent new products. In 1984, Cisco hosted 1,000 computers on the Internet. One of the first business-to-business transactions that Cisco has participated is as the supplier. Businesses outsourced this need to Cisco when those companies felt their customers’ demand for it.
In 1986, Cisco ships its first product, the AGS router. Their valuable product, the internetworking router, automatically selects the most effective route for data to paddle between networks. The routers support for multiple protocols or data transmission standards and could link together different kinds of network with different architectures and different hardware such as IBM-compatible personal computers, Apple Macintosh computers, UNIX workstations, and IBM mainframes. The AGS network router was sold for the TCP/IP (Transmission Control Protocol / Internet Protocol) protocol suite. A year later, Cisco was selling $250,000 worth of routers per month.
Sales originally targeting universities, aerospace industry, and the government, the company, in 1988, expanded its marketing to include larger corporations. In 1988, a venture capitalist Donald Valentine of Sequoia Capital bought a controlling stake and became chairman of the company. With his entry, he brought unusual management to handle the company. However, in 1990 this brought conflict between the founder and the unique management that led to the founders to leave the company.
Sales leaped from $1.5 million in 1987 to $28 million in 1989. In 1990, Cisco made their initial public offering with the initiate of the World Wide Web. From 1990 to 1997, fiscal year earnings would almost double every year. In 1993, Cisco started acquiring as many companies as they could. Acquisition strategy began from 1993 onwards. Cisco started purchasing companies such as networking company Crescendo Communications, Ethernet switch maker Kalpana (1994), asynchronous transfer mode (ATM) switch maker LightStream (1995). In 1996, Cisco’s 1996 acquisition of ATM product maker StrataCom began a chain of consolidations within the networking industry. From 1993 through 1997 they acquired 21 different companies spending $6.9 billion in acquisitions. In 1997, Cisco signs a multi-tiered partnership with Alcatel, GTE, HP, Intel, and Microsoft. In fiscal year 1997, sales were $1.5 million, and the company had only eight employees at that time.
CISCO’s Business-to-Business: 1984-1997
1997 Electronic Data Interchange (EDI)
Cisco handles business-to-business electronic commerce by providing applications for their consumers. Their applications “allow companies to sell products and services and manage customer and partner relationships over the Internet” (Cisco, 2001a, Solutions). They not only make hardware that enables business-to-business transactions (routers, switches), but they also serve as a model of how companies can best utilize the Internet. Customers can visit Cisco’s web spot to check out product specifications and make their orders. That information is then routed on the Internet through Cisco to its suppliers. A full 65 percent of the orders go directly from the supplier to the customer. Cisco never touches them. Things are built only after they are ordered, so exiguous, if any, inventory is kept in the warehouses (US News, 2001).
Unfortunately, one business transacting with another business, does not qualify as a business-to-business relationship in this paper. With the technology and infrastructure that Cisco possesses, they do not desire or obtain many business-to-business relationships. Cisco sees suppliers as a time and labor intensive expense (Cisco, 2001c). Instead, Cisco has realized that the “traditional” business model can be changed or helped along. They have declared the “traditional” business model outdated. Whether it is outdated or not, is a different paper. With the creation of Cisco’s Global Network Business model, they have created the demand for a product that can ease and speed up business to business transactions.
Therefore, the creation of Electronic Data Interchange (EDI) was created. Cisco tries to cut down any intermediaries to increase profit margins and competitive advantages. Cisco has gained real-time access to supplier information; experienced lower business costs in processing orders (an estimated $46 per order); improved the productivity of its employees enthusiastic in purchasing (78% increase); and as seen order cycles reduced substantially. In 1995, for example, Cisco saved $250 million per year in business expenses through its networking applications (Cisco, 2001c).
The closest business-to-business relationship that Cisco had was to provide a networking services and solutions to users, via their multi-tiered partnership with Alcatel, GTE, HP, Intel, and Microsoft. However, the transactions between these companies stretch the definition of business-to-business as defined in this paper. It became even more difficult for Cisco to transact in such relationships as they acquired more and more companies.
CISCO’s SWOT Analysis as in 1997
Strengths
One of the strengths that Cisco possesses is solid management. Cisco’s management team is headed by John T. Chambers. They were named number four in Business Week Top 50 best overall performers of the S&P 500 (Cisco, 2001b). In addition, since 1994, revenues had exceeded $1 billion, essentially, allowing Cisco to catch most of their competition. Since their competition was smaller companies, the companies could derive a niche and specialize and improve in that area. Cisco was so big to concentrate on specialization or did they have the time or patience to specialize. As for its image, Cisco Systems Inc. was the king of the networking world (Cisco, 2001b). With this image, Cisco could strategically choose their alliances.
Weaknesses
The lickety-split acquisition that began since 1993 may indicate the lack of management depth. The expansion of the companies that have different management style may produce different outcomes when merged with Cisco. As they try to get adjusted as one company, some of the management depth may be lost due to the need to comply with the parent company. Consistency throughout the company may dwindle. In addition, although, Cisco created their new global network business model, they failed to consider the economic impacts. By acquiring these companies, Cisco fails to identify other market segments and fails to realize potential supply chain strategy.
Opportunities
Vertical and horizontal expansions of Cisco business are one of Cisco’s biggest opportunities. Cisco has created the need for networking solutions; they should build on top of that. They have the opportunity to offer the entire package of network solutions, from the software to the hardware. With new companies such as Crescendo Communications, StrataCom, and NetSpeed give Cisco the ability to offer a wider range of products.
Threats
While Cisco dominates the router market, it still faces a threat from competitors. This is because with the large expansion to new markets, existing businesses in those markets will become Cisco’s new competitors. Small companies can take over a specific niche market. This can either be a threat if Cisco does not keep their eyes on their competitors.
Considerations and Concerns
The goal of Cisco Systems is to develop business solutions using Internet technologies to help businesses improve productivity and maximize profits. If I were heading up Cisco, I would expand Cisco to include the little businesses that want to develop an Internet presence as well. A separate web site can be set up as a portal for small businesses. Cisco employees are consultants to businesses, which will continue to utilize that consulting experience.
Streamlining business practices translates to all areas of the organization, not just customers and suppliers, but within the company as a whole. Cisco should assist Human Resources departments by developing Intranets for companies to further optimize their workforce. It is all about leveraging Internet technologies to maximize people’s time so they can focus on their main job responsibilities. Intranets are a network of computers within a company using Internet technologies such as web browsers and e-mail. Workforce optimization and training are just one component of HR. Cisco can also utilize their experience with the Internet to develop recruitment strategies.
To expand on the e-learning share of the business I would develop a “virtual university” where businesses can send there employees to one web status called virtualuniversity.com, for their training and development needs. Cisco is well recognized and respected by the business community for their knowledge of Internet technologies. Cisco employees are keen to support programs such as this. In fact, Cisco employees have been known for coming together and contributing gigantic sums of money to inaugurate a web situation, such as the netaid.org web site. These efforts will be Cisco’s way of preparing the world’s workforce to participate in the Internet economy.
Acquisitions
With the acquisitions, Cisco should prompt these companies to accumulate and specify particular niche markets. They should search for at accomplishing economies of scale in this manner. Cisco has the money and revenues to sustain acquisitions. However, it should be strategically designed to accomplish economies of scale. In addition, they need to execute distinct that they are not growing too big too hastily. Management should be solid and structurally sound as the company changes. This will abet the company as the company grows.
CISCO 1998 to the Present
Cisco acquired several niche companies in 1998, and its market capitalization passed the $100 billion milestone. In 1999, Cisco approved to invest $1.5 billion for a 20 percent stake in KPMG’s consulting business, and it teamed with Motorola to acquire the fixed wireless assets of Bosch Telecom. This formed a joint venture with SpectraPoint Wireless to provide high-speed networking services to businesses. On the other hand, most of Cisco’s acquisitions are aimed towards being the king of networking equipment. The largest acquisition thus far is Cerent (fiber-optic network equipment) for $7 billion. In the same year, Cisco and Qwest communications began to collaborate on what will be the biggest Internet-based network in the U.S. In 2000, Cisco teamed up with GTE, Whirlpool, and Sun Microsystems to develop the “home gateway”, a device that will tie together PC’s in a network. Another product that will be introduced from this team is the “Smart Appliances” over a home’s phone line. Other acquisition includes Pirelli’s fiber optic telephone equipment operations for more than $2 billion, Arrow Point Communications, a network switches maker, for about $5.7 billion.
Cisco’s Business to Business Today
Currently, Cisco serves customers in three target markets: enterprise, service providers, and commercial sector. The enterprise customers are “large organizations with complex networking needs, usually spanning multiple locations and types of computer systems, [which includes] corporations, government agencies, utilities, and educational institutions” (Cisco, 2001, Facts). Service providers can be defined as “companies that provide information services, including telecommunication carriers, Internet service providers, cable companies, and wireless communication providers” (Cisco, 2001, Facts). Cisco defines their commercial target market as “companies with a need for data networks of their own, as well as connection to the Internet and/or to business partners” (Cisco, 2001, Facts).
Currently, Cisco offers business-to-business solutions through their web site. Although it is unclear how they transact with one another, the companies are differentiated enough to seize that these companies are acting as the supplier. These companies include Ariba, Great Plains, J.D. Edwards, Lawson, NetObjects, NetSales, OneCore, PeopleSoft, QuickMarketing, and Works.com.
Cisco uses their business-to-business e-commerce by acting as an intermediary. Cisco “eliminates multiple layers of wasted misfortune from a vast array of transactions” (Cisco, 2001a, Solutions). Ariba, Inc. is one of the businesses that act as a supplier to Cisco in their business-to-business relationship. Ariba is a business-to-business electronic commerce software and network services platform provider. They provide software, network access and commerce services that enable corporations to electronically automate and optimize business. “Customers can do this by both automating their existing relationships with their buyers and suppliers and by building a marketplace that brings buyers and suppliers together to buy and sell electronically” (Market Guide, 2001, Description). “In addition, the Company offers commerce services such as content management, electronic payment, electronic sourcing and electronic logistics, among others” (Yahoo, 2001, Profile). “The Ariba B2B Commerce Platform consists of four primary components: Ariba Buyer, the Company’s Internet-based procurement application, Ariba Commerce Services Network, its Internet-based commerce services application” (Yahoo, 2001, Profile).
Cisco is also a customer and the supplier in their relationship with Spirent Communications. Cisco purchases network test system from Spirent. Spirent then outsources this to Adtech; Inc. Adtech Inc. is a company that creates indecent broadband testing. They then work directly with Cisco to create the network system tester for Cisco’s software. The product that they provide for Cisco is the AX/400 Broadband Test System. In this example, Cisco is the client, Spirent is the intermediary, and Adtech is the Supplier. Between Spirent and Adtech, there is a business-to-business relationship.
Conclusions
Currently, Cisco is dramatically downsizing and reorganizing and restructuring their company. Their stock plummeted, along with the other technical stocks. Recovery will be tough, but not impossible with their company. This reorganization is an indication of weak management and strategy. Cisco should still strive for their ideal economies of scale. However, this time it should be carefully managed. This industry is a volatile industry where only the stable will survive. Cisco should increase their supply chain and business-to-business relationships until they are back on their feet. In addition, Cisco should consider some of the considerations and concerns in this paper.
From 1998 to 2001, Cisco grew too big, too fast, with out the right management. Although they created their own global network model, they failed to understand the traditional business model and how it relates to international business. It doesn’t matter if their model is wrong, it mattered that they didn’t realize the fundamentals.
References
Cisco. (2001a). Business Solutions. Retrieved [on-line] at: http://www.cisco.com/warp/public/779/ibs/solutions/supply. March 15, 2001.
Cisco. (2001b). Cisco System Fact Sheet. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/corpfact.htm March 15, 2001.
Cisco. (2001c). The Global Networked Business: A Model for Success. Retrieved [on-line] at: http://www.cisco.com/warp/public/756/gnb/gnb_wp.htm March 12, 2001.
Cisco (2001d). Manufacturing on the Pulse. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/iq/man/fea/pul/man_fea_pul_0004/man_fea_pul_0004_1.shtml. March 15, 2001.
Cisco. (2001e). Manufacturing on the Pulse cont…. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/iq/man/fea/pul/man_fea_pul_0004/man_fea_pul_0004_3.shtml. March 15, 2001.
Holstein, W. (2000, April 4th). Rewiring the ‘old’ economy Retrieved [on-line] at: U.S. News Available: http://www.usnews.com/usnews/issue/000410/b2b.htm
Hoover’s Inc. (2000). Hoover’s Handbook of American 2001. Austin, Texas: Hoover’s Business Press.
Market Guide (2001). Business Description. Retrieved [on-line] at: http://yahoo.marketguide.com/mgi/busidesc.asp? rt=busidesc&rn=A1EDD. March 15, 2001.
Pederson, J. (2000). International Directory of Company Histories. Farmington, MI: St. James Press.
U.S. News. (2001). Rewiring the ‘old economy.’ News and Views. Retrieved [on-line] at: http://www.usnews.com/usnews/issue/000410/b2b.htm March 12, 2001.
Yahoo. (2001). Profile of Ariba, Inc. Retrieved [on-line] at: http://biz.yahoo.com/p/a/arba.html. March 15, 2001.
Related Posts
Filed under small business phone system reviews by on May 9th, 2011. Comment. 
- Good background and theory into B2B e-commerce
- The impact increases and organizations all over the world are using e-commerce solutions
- Improve ability to attract and retain customers, reduce expenses, & reinforce their brand
Introduction
Business to business (B2B) e-commerce can be defined as an enabling service or services that abet business to consumer (B2C) e-commerce transactions. However, this definition is not confined to the supply chain. In addition, B2B does not include buying to resale. Moreover, this action must be customer initiated. For example, a person would like to purchase more checks. If this person goes to their bank to assume more checks, depending how the bank gets their checks, this service could be a business to business transaction. Once the customer puts in their check order to the bank, the bank then goes to a check printing company to manufacture the check. The printed check will then be directly sent to the customer from the check printing company without going through the bank. Therefore, B2B transaction is the transaction between the bank and the printing check company to the customers.
In this case study, the role of the bank can be thought of as the intermediary, the customer as the client and the check printing company as the supplier. Figure 1 illustrates the transactions visually. Furthermore, the transaction must be client initiated and the transacted path must occur in the same path as the arrows. With this in mind, Cisco has a role as all three positions in business-to-business e-commerce transactions.
As the Internet and Intranet continues to grow exponentially, the impact increases and organizations all over the world are using e-commerce solutions in an increasing rate. Organizations used Internet and Intranet for cost savings, efficiencies, budgeting, resources research, and customer service and sales staff and others. B2B processes such as purchasing, supply chain management, manufacturing, human resources, sales and contact management are really uncommon factual now among the growing companies as both the buyers and sellers can reap the advantages of the enact of the Internet and Intranet.
By taking advantage of e-commerce and the Internet, businesses can reap significant financial returns, improve their ability to attract and retain customers, reduce expenses, and reinforce their branding and corporate identity, while gaining a better return on investment. At the same time, they can enjoy operational gains in employee productivity, decision-making, employee retention, and streamlined processes.
The benefits of e-commerce extend to participants of all sizes, from small, growing organizations to industry giants. Armed with efficient B2B e-commerce capability, even miniature and mid-size suppliers can potentially establish trading partnerships with the more establish bigger corporations by placing their product and service information online.
Cisco Systems, the leader in networking solutions for the Internet is one company that took such advantage. Cisco not only makes hardware that allows B2B to work (routers, switches, and the like) but also serves as a model of how companies can best exploit the Internet. Cisco customers can visit its web site to check out product specs and make their orders. That information is then routed on the Internet through Cisco to its suppliers. A full 65 percent of the orders move directly from the supplier to the customer. Cisco never touches them. The products are built only after they are ordered, so little, if any, inventory is kept in warehouses (Holstein, 2000).
Cisco History
Leonard Bosack, Sandra Lener along with three other colleagues founded Cisco Systems in 1984. Bosack developed the technology to link his computer lab’s network with his wife’s network in Stanford University. To anticipate the market for networking devices, Bosack and Lener mortgaged their house, bought a used mainframe, put it in the garage, and use their home to develop new products. In 1984, Cisco hosted 1,000 computers on the Internet. One of the first business-to-business transactions that Cisco has participated is as the supplier. Businesses outsourced this need to Cisco when those companies felt their customers’ demand for it.
In 1986, Cisco ships its first product, the AGS router. Their primary product, the internetworking router, automatically selects the most effective route for data to flow between networks. The routers support for multiple protocols or data transmission standards and could link together different kinds of network with different architectures and different hardware such as IBM-compatible personal computers, Apple Macintosh computers, UNIX workstations, and IBM mainframes. The AGS network router was sold for the TCP/IP (Transmission Control Protocol / Internet Protocol) protocol suite. A year later, Cisco was selling $250,000 worth of routers per month.
Sales originally targeting universities, aerospace industry, and the government, the company, in 1988, expanded its marketing to include larger corporations. In 1988, a venture capitalist Donald Valentine of Sequoia Capital bought a controlling stake and became chairman of the company. With his entry, he brought new management to handle the company. However, in 1990 this brought conflict between the founder and the new management that led to the founders to leave the company.
Sales leaped from $1.5 million in 1987 to $28 million in 1989. In 1990, Cisco made their initial public offering with the launch of the World Wide Web. From 1990 to 1997, fiscal year earnings would almost double every year. In 1993, Cisco started acquiring as many companies as they could. Acquisition strategy began from 1993 onwards. Cisco started purchasing companies such as networking company Crescendo Communications, Ethernet switch maker Kalpana (1994), asynchronous transfer mode (ATM) switch maker LightStream (1995). In 1996, Cisco’s 1996 acquisition of ATM product maker StrataCom began a chain of consolidations within the networking industry. From 1993 through 1997 they acquired 21 different companies spending $6.9 billion in acquisitions. In 1997, Cisco signs a multi-tiered partnership with Alcatel, GTE, HP, Intel, and Microsoft. In fiscal year 1997, sales were $1.5 million, and the company had only eight employees at that time.
CISCO’s Business-to-Business: 1984-1997
1997 Electronic Data Interchange (EDI)
Cisco handles business-to-business electronic commerce by providing applications for their consumers. Their applications “allow companies to sell products and services and manage customer and partner relationships over the Internet” (Cisco, 2001a, Solutions). They not only make hardware that enables business-to-business transactions (routers, switches), but they also serve as a model of how companies can best consume the Internet. Customers can visit Cisco’s web status to check out product specifications and acquire their orders. That information is then routed on the Internet through Cisco to its suppliers. A full 65 percent of the orders travel directly from the supplier to the customer. Cisco never touches them. Things are built only after they are ordered, so little, if any, inventory is kept in the warehouses (US News, 2001).
Unfortunately, one business transacting with another business, does not qualify as a business-to-business relationship in this paper. With the technology and infrastructure that Cisco possesses, they do not desire or obtain many business-to-business relationships. Cisco sees suppliers as a time and labor intensive expense (Cisco, 2001c). Instead, Cisco has realized that the “traditional” business model can be changed or helped along. They have declared the “traditional” business model outdated. Whether it is outdated or not, is a different paper. With the creation of Cisco’s Global Network Business model, they have created the inquire for a product that can ease and speed up business to business transactions.
Therefore, the creation of Electronic Data Interchange (EDI) was created. Cisco tries to cut down any intermediaries to increase profit margins and competitive advantages. Cisco has gained real-time access to supplier information; experienced lower business costs in processing orders (an estimated $46 per order); improved the productivity of its employees alive to in purchasing (78% increase); and as seen order cycles reduced substantially. In 1995, for example, Cisco saved $250 million per year in business expenses through its networking applications (Cisco, 2001c).
The closest business-to-business relationship that Cisco had was to provide a networking services and solutions to users, via their multi-tiered partnership with Alcatel, GTE, HP, Intel, and Microsoft. However, the transactions between these companies stretch the definition of business-to-business as defined in this paper. It became even more difficult for Cisco to transact in such relationships as they acquired more and more companies.
CISCO’s SWOT Analysis as in 1997
Strengths
One of the strengths that Cisco possesses is solid management. Cisco’s management team is headed by John T. Chambers. They were named number four in Business Week Top 50 best overall performers of the S&P 500 (Cisco, 2001b). In addition, since 1994, revenues had exceeded $1 billion, essentially, allowing Cisco to acquire most of their competition. Since their competition was smaller companies, the companies could find a niche and specialize and improve in that area. Cisco was so big to concentrate on specialization or did they have the time or patience to specialize. As for its image, Cisco Systems Inc. was the king of the networking world (Cisco, 2001b). With this image, Cisco could strategically choose their alliances.
Weaknesses
The rapid acquisition that began since 1993 may indicate the lack of management depth. The expansion of the companies that have different management style may produce different outcomes when merged with Cisco. As they try to get adjusted as one company, some of the management depth may be lost due to the need to comply with the parent company. Consistency throughout the company may dwindle. In addition, although, Cisco created their new global network business model, they failed to think the economic impacts. By acquiring these companies, Cisco fails to identify other market segments and fails to realize potential supply chain strategy.
Opportunities
Vertical and horizontal expansions of Cisco business are one of Cisco’s biggest opportunities. Cisco has created the need for networking solutions; they should build on top of that. They have the opportunity to offer the entire package of network solutions, from the software to the hardware. With new companies such as Crescendo Communications, StrataCom, and NetSpeed give Cisco the ability to offer a wider range of products.
Threats
While Cisco dominates the router market, it still faces a threat from competitors. This is because with the large expansion to new markets, existing businesses in those markets will become Cisco’s new competitors. Small companies can take over a specific niche market. This can either be a threat if Cisco does not support their eyes on their competitors.
Considerations and Concerns
The goal of Cisco Systems is to develop business solutions using Internet technologies to wait on businesses improve productivity and maximize profits. If I were heading up Cisco, I would expand Cisco to include the small businesses that want to develop an Internet presence as well. A separate web site can be region up as a portal for small businesses. Cisco employees are consultants to businesses, which will continue to expend that consulting experience.
Streamlining business practices translates to all areas of the organization, not just customers and suppliers, but within the company as a whole. Cisco should succor Human Resources departments by developing Intranets for companies to further optimize their workforce. It is all about leveraging Internet technologies to maximize people’s time so they can focus on their main job responsibilities. Intranets are a network of computers within a company using Internet technologies such as web browsers and e-mail. Workforce optimization and training are unprejudiced one component of HR. Cisco can also exercise their experience with the Internet to compose recruitment strategies.
To expand on the e-learning part of the business I would develop a “virtual university” where businesses can send there employees to one web site called virtualuniversity.com, for their training and development needs. Cisco is well recognized and respected by the business community for their knowledge of Internet technologies. Cisco employees are eager to succor programs such as this. In fact, Cisco employees have been known for coming together and contributing large sums of money to launch a web site, such as the netaid.org web site. These efforts will be Cisco’s way of preparing the world’s workforce to participate in the Internet economy.
Acquisitions
With the acquisitions, Cisco should prompt these companies to win and specify particular niche markets. They should look at accomplishing economies of scale in this manner. Cisco has the money and revenues to maintain acquisitions. However, it should be strategically designed to accomplish economies of scale. In addition, they need to make sure that they are not growing too big too fast. Management should be solid and structurally sound as the company changes. This will benefit the company as the company grows.
CISCO 1998 to the Present
Cisco acquired several niche companies in 1998, and its market capitalization passed the $100 billion milestone. In 1999, Cisco approved to invest $1.5 billion for a 20 percent stake in KPMG’s consulting business, and it teamed with Motorola to acquire the fixed wireless assets of Bosch Telecom. This formed a joint venture with SpectraPoint Wireless to provide high-speed networking services to businesses. On the other hand, most of Cisco’s acquisitions are aimed towards being the king of networking equipment. The largest acquisition thus far is Cerent (fiber-optic network equipment) for $7 billion. In the same year, Cisco and Qwest communications began to collaborate on what will be the biggest Internet-based network in the U.S. In 2000, Cisco teamed up with GTE, Whirlpool, and Sun Microsystems to develop the “home gateway”, a device that will tie together PC’s in a network. Another product that will be introduced from this team is the “Smart Appliances” over a home’s phone line. Other acquisition includes Pirelli’s fiber optic telephone equipment operations for more than $2 billion, Arrow Point Communications, a network switches maker, for about $5.7 billion.
Cisco’s Business to Business Today
Currently, Cisco serves customers in three target markets: enterprise, service providers, and commercial sector. The enterprise customers are “large organizations with complex networking needs, usually spanning multiple locations and types of computer systems, [which includes] corporations, government agencies, utilities, and educational institutions” (Cisco, 2001, Facts). Service providers can be defined as “companies that provide information services, including telecommunication carriers, Internet service providers, cable companies, and wireless communication providers” (Cisco, 2001, Facts). Cisco defines their commercial target market as “companies with a need for data networks of their contain, as well as connection to the Internet and/or to business partners” (Cisco, 2001, Facts).
Currently, Cisco offers business-to-business solutions through their web region. Although it is unclear how they transact with one another, the companies are differentiated enough to rob that these companies are acting as the supplier. These companies include Ariba, Great Plains, J.D. Edwards, Lawson, NetObjects, NetSales, OneCore, PeopleSoft, QuickMarketing, and Works.com.
Cisco uses their business-to-business e-commerce by acting as an intermediary. Cisco “eliminates multiple layers of wasted effort from a tall array of transactions” (Cisco, 2001a, Solutions). Ariba, Inc. is one of the businesses that act as a supplier to Cisco in their business-to-business relationship. Ariba is a business-to-business electronic commerce software and network services platform provider. They provide software, network access and commerce services that enable corporations to electronically automate and optimize business. “Customers can do this by both automating their existing relationships with their buyers and suppliers and by building a marketplace that brings buyers and suppliers together to select and sell electronically” (Market Guide, 2001, Description). “In addition, the Company offers commerce services such as teach management, electronic payment, electronic sourcing and electronic logistics, among others” (Yahoo, 2001, Profile). “The Ariba B2B Commerce Platform consists of four necessary components: Ariba Buyer, the Company’s Internet-based procurement application, Ariba Commerce Services Network, its Internet-based commerce services application” (Yahoo, 2001, Profile).
Cisco is also a customer and the supplier in their relationship with Spirent Communications. Cisco purchases network test system from Spirent. Spirent then outsources this to Adtech; Inc. Adtech Inc. is a company that creates extreme broadband testing. They then work directly with Cisco to create the network system tester for Cisco’s software. The product that they provide for Cisco is the AX/400 Broadband Test System. In this example, Cisco is the client, Spirent is the intermediary, and Adtech is the Supplier. Between Spirent and Adtech, there is a business-to-business relationship.
Conclusions
Currently, Cisco is dramatically downsizing and reorganizing and restructuring their company. Their stock plummeted, along with the other technical stocks. Recovery will be tough, but not impossible with their company. This reorganization is an indication of weak management and strategy. Cisco should still strive for their ideal economies of scale. However, this time it should be carefully managed. This industry is a volatile industry where only the stable will survive. Cisco should increase their supply chain and business-to-business relationships until they are assist on their feet. In addition, Cisco should consider some of the considerations and concerns in this paper.
From 1998 to 2001, Cisco grew too big, too fast, with out the right management. Although they created their contain global network model, they failed to understand the frail business model and how it relates to international business. It doesn’t matter if their model is gross, it mattered that they didn’t realize the fundamentals.
References
Cisco. (2001a). Business Solutions. Retrieved [on-line] at: http://www.cisco.com/warp/public/779/ibs/solutions/supply. March 15, 2001.
Cisco. (2001b). Cisco System Fact Sheet. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/corpfact.htm March 15, 2001.
Cisco. (2001c). The Global Networked Business: A Model for Success. Retrieved [on-line] at: http://www.cisco.com/warp/public/756/gnb/gnb_wp.htm March 12, 2001.
Cisco (2001d). Manufacturing on the Pulse. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/iq/man/fea/pul/man_fea_pul_0004/man_fea_pul_0004_1.shtml. March 15, 2001.
Cisco. (2001e). Manufacturing on the Pulse cont…. Retrieved [on-line] at: http://www.cisco.com/warp/public/750/iq/man/fea/pul/man_fea_pul_0004/man_fea_pul_0004_3.shtml. March 15, 2001.
Holstein, W. (2000, April 4th). Rewiring the ‘old’ economy Retrieved [on-line] at: U.S. News Available: http://www.usnews.com/usnews/issue/000410/b2b.htm
Hoover’s Inc. (2000). Hoover’s Handbook of American 2001. Austin, Texas: Hoover’s Business Press.
Market Guide (2001). Business Description. Retrieved [on-line] at: http://yahoo.marketguide.com/mgi/busidesc.asp? rt=busidesc&rn=A1EDD. March 15, 2001.
Pederson, J. (2000). International Directory of Company Histories. Farmington, MI: St. James Press.
U.S. News. (2001). Rewiring the ‘old economy.’ News and Views. Retrieved [on-line] at: http://www.usnews.com/usnews/issue/000410/b2b.htm March 12, 2001.
Yahoo. (2001). Profile of Ariba, Inc. Retrieved [on-line] at: http://biz.yahoo.com/p/a/arba.html. March 15, 2001.
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Filed under small business phone system reviews by on Jan 22nd, 2011. Comment.
- The two largest online voice-over communities are Voice123 and Voices.com.
- The online voice-over marketplace is now the hot status for a great deal of voice work.
- You should look into each of these voice providers to see who can best possess your needs.
If you need a professional voice for your commercial, company DVD, phone system, web video or about any other type of project, looking online is your best choice. Sure, you could invest the time to contact an agent, discuss your project, needs, budget, etc. – you might find what you’re looking for, but you will definitely pay a premium price. There are agent fees, studio fees, cost of voice talent, and a variety of other costs to take into consideration. The easiest, most economical, best value for your dollar will be found online.
The two largest online voice-over communities are Voice123 and Voices.com. At either position you can sign up and post a job, your budget for the job, your script for auditions, and related criteria. You will get auditions with a explain link to contact the talent, often starting within an hour or so of posting.
Open Audition vs. Targeted Talent
While Voices.com works on an begin audition system, Voice123 offers a system called SmartCast that sends your posting only to talents that fit your specifications. Both sites will allow you to search through the voice-over professionals’ individual listings. Each talent will have a profile page with complete say description and details, as well as demos you can listen to on the spot. You will also find contact information and the option to directly invite the particular talent to audition for your project. To see what information is provided and the differences between the talent profile pages, you can click on the links – view an example of a Voice123 profile and an example of a Voices.com profile.
Voices.com
If you post with Voices.com your job will be either openly posted or by private invitation only. In order to get a number of auditions without searching through people looking for who you might like, you will likely post an open audition, with all voice talent allowed to conception it and submit an audition if they choose to. While this may initially seem like a good thought, you may fast find yourself overwhelmed with auditions, many more than you’d expected to wade through, not to mention many of the people may not really fit what you had in mind by a long shot. This is a colossal option if you really are looking for a very mountainous number of auditions or have tiny direction on what exactly you have in mind, as this many auditions will surely provide a wide variety of voice types, styles, and deliveries. I do feel it is worth mentioning that there is one posting requirement. The job must pay a minimum of $100 for the job to be posted. They also charge a voice seeker, you, an additional cost of 10% of the amount being paid to the grunt talent if you use the SurePay feature, which many of the talents may use exclusively to get paid. For more information about posting a job at Voices.com, just click here.
Voice123
If you post a job with Voice123,you again can decide between posting a job without SmartCast where you will post the job only to people you choose yourself, or with SmartCast enabled, where your job will be sent only to the voice-over professionals that best match your criteria. You will also set the number of auditions you are seeking, thus insuring you do not get a completely overwhelming response, unless, of course, that is what you really need and are asking for. Another benefit to posting with Voice123 is the project budget section. There is no minimum budget to meet in order to post. You can set a fixed or flexible budget price, ticket range, or “to be determined”, which will result in auditions with a quote for the job from each person. For information about posting a job with Voice123, click here. For more information about the SmartCast system, click here.
Welcome to the Online Voice-Over Marketplace
In conclusion, the internet has changed many types of businesses and the voice-over industry is no exception. The online voice-over marketplace is now the “go-to” spot for a great deal of large businesses, organizations, production houses, as well as small business owners looking for the best deal they can bag with the “most bang for the buck”. While both of the top two online explain providers can produce results, you should look into each to see which truly fits your own needs best. As most of the things in our lives do, there are benefits and drawbacks to either choice, but in the end resolve wisely and I’m sure you will be pleased with what you hear.
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Filed under small business phone system reviews by on Jan 9th, 2011. Comment.
Recently at a Taco Bell restaurant I ordered one of the dinners with a diet soda with no ice – the order was taken, paid for and as I pulled up to the pickup window the clerk insisted that it wasn’t possible to do that, then proceeded to design a glass of soda – and handed it to me just over half full. Not having time to deal with it just then I left, but returned the next day to take the drawl up with the manager on duty. With the current issues of quality food Taco Bell is facing it seems the least they could do is treat paying customers like they mean something and that they are elated there are customers coming to order! The other Yum heed restaurants in the area – Pizza Hut in particular – is another residence I no longer frequent due to the unacceptably poor service on the last visit to the restaurant.
As someone who has worked with the public including customer service I’m well aware there are rude customers that are difficult to deal with. That said, most people don’t like to be treated that way.
A phone call at a corporate chain farm store one night a half hour before closing brought a customer who was mad – she was mad having called a chain discount hardware store and remaining on hold for 30 minutes…after trips *to* the store and not being able to find people to help her. She came to the farm store honest a few minutes before closing by the time she arrived – and the manager and a clerk not only helped her but installed the part on her weedeater she needed. She left the store vowing to return and never go to the other store again. That sentiment has been echoed by dozens of customers visiting the same stores.
People complain that corporate places are obscene paying and therefore people don’t care – which is in many cases bearing truth. However, there are people there who enjoy their job, who carry the responsibility that if customers aren’t happy they’ll go elsewhere. If they go elsewhere there’s less sales – if there’s less sales some people will be out of a job.
Personal views are an issue also and sometimes customers overlook factors. Corn is four cents cheaper at such and such local farm store – which might be but if you’re looking for feed on a Sunday afternoon they aren’t open. If an animal gets sick after hours they aren’t commence. Often if there is a dilemma people at some stores don’t know hands on how to help the customer handle it.
Farms too have seen the service points come up – they can perhaps not be quite as inexpensive as bulk places. But – as farms and corporate agriculture press for issues like the National Animal ID System (NAIS) under the guise of “food safety” and “consumer safety” looking back it’s proven over time the more the government gets eager in “food safety” the less safe we are. Outbreaks of e-coli and other issues have become commonplace, involving those places regulated for “consumer safety”. Isn’t it sharp that among the Amish and homesteaders with their direct use there isn’t massive outbreaks. Surely that would be more newsworthy.
People who take responsibility for themselves have – thus far – the option of purchasing from farmers markets, community supported agriculture farms (CSA’s) and other private small farms who can get their section with service. The small state can jabber you where your lettuce was grown; they can verify easily which pig you got and where it was processed with no need for NAIS which can have the effect of, due to costs, eliminating these farms completely. Customer service matters to someone selling directly – and they eat the same things.
Farms and microscopic business have an advantage in the opportunity to connect with their customers. The customers are recognized and greeted as they should be – like they matter. Without customers the employees have no job. Farms and other dinky businesses have the ability to in a larger degree cater to individual customers in a way large ones, without special employees, don’t. Smart stores will find those employees and hang on to them.
In one store recently a customer was overheard telling a cashier that she was the only beneficial one still there after a staff change…that she was the only one nice to talk to. While it’s kudos to the cashier, it’s a warning to the business. Publicity and promotional campaigns can bring in new customers but the people having contact with the customers develop all the difference. Someone on a personal phone call gives the impression the customer isn’t worth paying attention to. Someone who brings personal problems to the job gives the impression they resent the customer – and customers go elsewhere.
Customer service needs a comeback – there is an increase in articles here on AC and elsewhere about the issue. It’s past time major companies listen. On the other hand, perhaps it can be the revival of the smaller operations if consumers use their buying power to demand what large places can’t – or won’t – give.
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With a petite forethought and a small time investment (hours not days), you can virtually eliminate the costly and confusing telephone system you have been struggling with or have been putting off purchasing due to SMB budget constraints.
If you’re paying Ma-Bell for a traditional phone line, or have your own confusing pbx switch on location, you’re not making the most of current phone technology. In fact, you may be wasting precious time and money for a system that does not meet your needs and actually takes away revenue.
Maybe you are paying a full-time employee to do nothing but manage the “phone system”, or worse, heaping the responsibility on a part-time additional duty basis to an employee who could otherwise focus on THEIR job.
You may have already joined the quarter million other home subscribers of the Magic jack community. Now it’s time to see how this can be applied to your minute or medium business.
There are links to reviews of the magic jack included with this article, but in summary:
FEATURES:
- It’s cheap, costs include $40 for the device and 1st year of phone service, $19.95/yr after that
- Being a USB storage device(like a thumb drive), it carries it’s own software and installs when inserted in the USB slot
- You can either acquire calls using a headset/mic or a veteran telephone (cordless phones & fax machines)
- It comes with “voicemail” forwarded to any email legend you wish
- you get email notifications when new VMs arrive
- Although it’s not a traditional phone ine with 911 they provide 911 where YOU control the address, so you can set the 911 for ANY location in the US (got a sick mother? )
- Nationwide toll-free is included and international can be had for a note or…
- Send a Magic Jack to anyone you want to call and who you want to call YOU and it’s free WORLDWIDE!
- You can migrate your current landline phone number, maybe your cell number not always, or get a new phone number*
- ALL of this depends on a broadband connection (I recommend Always on like Cable, NOT DSL), and a computer/laptop.
UNFEATURES
- Call quality (QoS) resembles a cell phone, in both sound quality and dropped calls.
- Customer service is basically their FAQs online and that’s about it.
- The device is bigger than other USB devices, but has a dongle to get it out of the way of your other USB plugs
- One yank on the phone cord and “POP”! out comes the MJ
- limited local phone numbers means long distance numbers in some locations
- Ordering the service online or over the phone or using the MJ program can be confusing
* The “local” phone numbers are not always a local call for your city, for instance in Montana the ONLY number they have are local to Helena, expansive if you live in the capital not so great for the rest of the state.
The savvy entrepreneur has already seen some openings with the above list for cutting costs. Let’s look at a few ways you can make the most of this new technology for your business.
We’re just seeing the tip of the iceberg, but here are some cost effective uses:
HARDWARE
- Connect your Home & Work offices
- Virtual Office employee(s) and VAs
- Key Customer and teleconference training
- Anyone who travels for your company
IMPLEMENTATION
- Fax
- Small pbx-like features
- Integration with other tech i.e. Virtual PBX systems
First, HARDWARE solutions.
By simply purchasing the Magic Jack device at $40 ea. you can save tons on the recurring phone bill.
1 – Connect home & work offices, buy a MJ device for home and work, for anyone who commutes. After the initial $40 you procure 1 year of uninterrupted calling from work to home etc. try out call forwarding thru a virtual pbx
2 – Virtual Office employees or VAs you contract with can now maintain voice contact with no cost to THEM if you simply buy them a MJ intention, it’s up to you if you ask for it back at the end of the contract or give it to them for a job well done.
3 – Key customer care and Teleconferencing or training This encompasses many areas but essentially it’s a repeat of the above, for a nominal $40 charge you can ensure your key clients and business partners stay connected again at no fee for them. It’s so easy to employ they really won’t have to wade through a tech manual to begin calling you. If you host training over the phone/online through .rdp connections etc. you can send one of the MJs to them ahead of training (perhaps with any manuals) and ask them to call on your $40 dime. Especially if you will have ongoing training with this client. Again, you can choose to just give it to them as a gift. $40 isn’t much when you consider the price of other training materials you use.
4 – The Road Warriors friend Having spent half my life on the road, I can converse you if I were doing that kind of work now, I would choose the MJ without even thinking about it. Being able to call “Local” to my home or the US when overseas for a year for $20 you bet I’m on board. Honest imagine, you get to the hotel (with broadband access of course) unhurried at night, and just want to touch base with home or the office, now you lope in MJ into your laptop and before you can unwrap the baby soap bar, you’re ready to earn or receive calls from home FOR FREE minus $20 initial fee 
If you are already paying for cell phones for the travelers maybe you can cut down on some of the primetime minutes by simply buying the MJ, or better yet, give the MJ to them for personal calls and encourage strict business ONLY calls on the cell phone wiht no excuses for wasted minutes chatting with family etc.
Now that’s only what you can do by being nice enough to pick MJ devices for everyone, now let’s explaore some of the cool things that can be set up on the USAGE/Implementation side of the house:
1 – FAX Although officially not supported yet, key word being “YET”, faxing can be done from anywhere again as a local call with no special setup, just plug in and send. Again, you might assume integrating with a virtual pbx system for a smoother operation especially if you wish to offer fax back capability.
2 – Private Branch Exchange (private telephone switchboard) although it’s far from a PBX or virtual PBX system, the magic jack will allow 3-way calling and take voicemails. Once you have the MJ phone number you can marry it with a virtual pbx and get full-featured use of a pbx with the orders or vital calls coming to your MJ phone.
If you have set up your business to be on autopilot, send a MJ to your order takers and Cust Support VAs and let the calls come in with no per minute charges coming back to you.
3 – Integrate The most effective spend of technology means marry-ing or integrating several solutions to create a full-featured robust solution.
If you aren’t familiar with virtual-PBXs look into using one like onebox, for service starting around $10/mo., prices go up depending on usage, you get 1-800 access and the same basic features that a geeky full-time phone switch programmer at your company can create, with less cost and hassle.
- Have calls routed within the PBX to various voicemails, but more importantly following the Tim Ferris way of doing things, you can have them follow YOU or any of your employees and VAs, no matter what phone or time of day they will be at that phone number, giving the illusion of 24/7 customer support.
Routing can also include having the really important calls directed to the MJ device number/voice mail so you accumulate ONLY the most pressing calls, again, from anywhere in the world (With broadband access).
Well, this is again just brushing the surface of what the world of VoIP and devices like the MagicJack can garner for the SMB world, for more info please visit http://squatchtech.ning.com and follow the articles relating to small business technology use.
Your uncle BobSquatch
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Filed under small business phone system reviews by on Sep 11th, 2010. 2 Comments.