Emerging Opportunities and Challenges for Cisco - Case Study Example

E-business Executive Summary This report delves into an examination of the main contemporary issues in e-business and where it is headed. This provided a basis for narrowing down this aspect into key categories represented by the further development of e-procurement, enterprise engineering, and integration, information and application integration, privacy and security, protection against knowledge loss and regulatory aspects. The issue is that these areas tend to be interrelated or have some type of impact on the other segments to varying degrees that continue to develop or evolve over time. 1. This represents a challenge for Cisco, a global company engaged in technology hardware and software networking systems where the business environment changes consistently and in many cases rapidly. This is the future atmosphere of challenges and opportunities the company operates in as the future direction consists of devising approaches that can be built as situations evolve as opposed to new ground up solutions when present processes become outdated or need modification. The main issues represent a further development of e-procurement, enterprise engineering and integration, information and application integration, privacy and security, protection against knowledge loss, and regulatory aspects. . The examination uncovered that a strategy execution approach that consists of four segments (vertical, lateral, horizontal and downward integration) that provides a system orientated approach which takes into account the effect of areas on each other and provides a means to design a system that accounts for changes and modifications without having to design the system each time changes occur. This is a highly important aspect in terms of Cisco as clients seek solutions that are adaptable rather than having limited application capability. Table of Contents E-business Main Contemporary Issues and Where it is headed 4 Emerging Opportunities and Challenges for Cisco 6 Recommendations 8 References 11 E-business Main Contemporary Issues and Where it is headed Whilst also is known as e-commerce, e-business represents the designation provided for companies that interface with each other in terms of supply chain utilisations, parts, services, and other areas using the Internet as the conduit (Chaffey, 2007). E-commerce refers to a process directed at customers, external partners, order taking, sales, marketing, purchase of raw materials and suppliers as well as delivery and other areas (Chaffey, 2007). E-business includes e-commerce as well as internal processes that include the management of inventory, production, product development, finance, risk management, knowledge management, and e-business strategies that seek to result in efficiency improvements, and cost savings (Chaffey, 2007). In terms of a further look at contemporary e-business issues, Cruz-Cunha and Varajao (2010) list the following areas: 1. Further development of e-procurement This represents an ongoing area of the evolution of software applications to increase operating efficiencies and cost savings in supply chains (Andreu et al, 2010). 2. Enterprise engineering and integration The theme of cost savings, operating efficiencies, and heightened supply chain integrations is continued here. Innovations represented by the customisation of e-business solutions integration is a key example (Schumacher et al, 2013). 3. Information and application integration The key word in this aspect, integration, was utilised in the preceding area as well. This is due to e-business meshing all aspects of the business to business into systems that address communication, information sharing, and coordination (Weske, 2012). 4. New business models This is an area (new business models) that refers to new divisions of existing companies or new companies offering services or products that fill a niche or new trends (Weske, 2012). 5. Ontologies and taxonomies The hierarchical classification system that resembles a tree is the basic approach to e-business organisation model in use today (Gordijn et al, 2006), The continued evolution of e-business represents the ontological aspect that provide the use of relationships and cause/effect aspects that aid in balancing supply chain needs to output/delivery areas (Gordijn et al, 2006). 6. Privacy and Security The increase in external system intrusions by varied criminal groups is an important area of concern (Schumacher et al, 2013), 7. Protection against knowledge loss Whilst this is similar to the preceding area, it refers to internal knowledge protection and recovery aspects in the event of system failures (Falkner and Hiebl, 2015). 8. Regulatory Aspects Regulatory issues broach a wide range of areas in response to data and information security that are in varying stages of analysis by governments as they seek to find common ground based on cross-border commerce and a means to devise consistency (Martins et al, 2015). In terms of the future, e-business is moving toward utilising the advantages of technological advances as the core to increase efficiencies, business processes and lower costs to boost profits (e-commerce Guide, 2018, Lui, 2018). The areas that follow represent contemporary issues that are ongoing due to the continued developmental nature of business competition: 2. Further development of e-procurement 3. Enterprise engineering and integration 4. Information and application integration 5. Privacy and security. 6. Protection against knowledge loss 7. Regulatory aspects. It was found that whilst these areas also represent future issues, the arena of e-business strategy includes these factors under a larger context. E-business strategy is an important future challenge that consists of wider implications in terms of execution (Lunenburg, 2010, Makinen and Kahkonen, 2010), this represents the four directions that are: 1. vertical integration represented by front and back systems, 2. lateral integration between the company and customers, its business partners, intermediates and suppliers, 3. horizontally, that consists of e-commerce, customer relationship management, enterprise resource planning, supply chain management systems, and knowledge management, 4. downward integration in the company representing the use and integration of new technologies, that utilise significantly redesigned business processes. The future direction for e-business takes on a more inclusive holistic approach. The challenge represents coordinating these diverse areas into a system that includes comprehensiveness as well as simplicity in terms of use, operation and knowledge base coordination. Emerging Opportunities and Challenges for Cisco The company is the largest networking company in the technology sector where it manufactures, develops and sells networking systems and hardware, equipment for telecommunications, along with other high-end technology products and services (Cisco, 2017). The company understands and recognises that the role, use, and importance of data is changing (Cisco, 2017). Whilst Cisco's hardware equipment helped to build the company, its increased emphasis on software solutions, consulting and business systems are increasing in terms of revenue importance (Cisco, 2017). In an article by Poletti (2018, p. 1) he reported that significant growth for the company “.. has been propelled partly by a major new switching product, the Catalyst 9000, a software-centric switch introduced in 2017 that moves Cisco toward more recurring revenue”. The article added that the company’s move to an increased focus on software services has helped to drive revenue growth due to its ongoing and reoccurring fees and contracts that provide predictable income as opposed to the sales of hardware that occur in stages based on replacement or new installations. Cisco’s (2017) annual report featured a number of statements by its chief executive officer, Charles Robbins; that provided more depth to the analysis by Poletti (2018). The following represent excerpts on varied areas that provide evidence on the future challenges the company faces and how it is reshaping its business model to be positioned to exploit these opportunities (Cisco, 2017): 1. Delivering on what customers need The CEO stated that the ever-increasing reliance on data and the Internet as the communications and connectivity mode have guided the company in shaping and redefining its approach over the past decade. By closely monitoring and being mindful of trends, the company has noted the increased reliance on e-business applications and consulting as the growing segment of its business. 2. Reinvention of networking The 30 years the company has been engaged in networking solutions primarily consisted of hardware and limited hardware applications to link equipment to tasks. The new multidimensional arena of knowledge management, complex supply chains, specific needs of varied clients brought about by the competitive benefits connected to the e-business environment has opened new vistas. The CEO’s statement advised ”Looking ahead, we intend to further accelerate our leadership in intent-based networking by combining our expertise in network infrastructure and the enhanced capabilities in application visibility and automation that we have gained through our analytics innovation as well as our acquisitions of AppDynamics and Viptela” (Cisco, 2917, p, 2). 3. Unlocking Data power Cisco's CEO stated that e-business data processing functions are a growing client need. 4. The evolution of the Cisco business model The company has added emphasis to its digital service capabilities as an area it is developing to meet future demands and needs. The above areas represent Cisco’s approach to the challenges and opportunities in the e-business sector as provided in the analysis of Lunenburg (2010) and Makinen and Kahkonen (2010) along with Lui (2018). Lui (2018) and the e-commerce Guide (2018) listed the following as contemporary and future areas: 1. Further development of e-procurement 2. Enterprise engineering and integration 3. Information and application integration 4. Privacy and security. 5. Protection against knowledge loss 6. Regulatory aspects. Lunenburg (2010) along with Makinen and Kahkonen (2010) synthesised these into four approach categories consisting of vertical integration, lateral integration, horizontal, and downward integration that represent a holistic approach and understanding where e-business is heading. Recommendations The exploration of the main contemporary issues facing e-business consists of aspects identified by Cruz-Cunha and Varajao (2010) as follows: 1. Further development of e-procurement 2. Enterprise engineering and integration 3. Information and application integration 4. New business models 5. Ontologies and taxonomies 6. Privacy and Security 7. Protection against knowledge loss, and 8. Regulatory aspects. A closer look at the above areas reveal that whilst they identify separate areas, there are similarities and common links that indicate some segments blend into others. This was found to be an important observation as it showed the tight alignment of areas in a complex multi-dimensional e-business environment. As a process, e-business, is a series of individual areas, in many cases, they are interconnected depending on the sophistication and complexity of the processes being applied (Combe, 2012). As the size of an e-business operation increases, so do the number of suppliers, supply chain linkages, client specifications, and other areas. The recommendation entails simplifying these eight segments into a more manageable approach results in the following configuration: 1, Further development of e-procurement to be combined with Enterprise engineering and integration that includes Information and application integration 2. Privacy and Security. ‘ to be combined with Protection against knowledge loss, and the following as a separate area 3. Regulatory Aspects. The above shows that the major contemporary issues have distinct areas or groupings. The recommendation simplification of the list of eight items by meshing them into the four groupings of Lunenburg (2010) and Makinen and Kahkonen, (2010) provides the path for a future approach. This is due to the fact that a company can now understand how the major areas link into the four execution areas to offer an overview and an interconnected approach to the development of solutions. This is the approach recommended for Cisco. Slotting areas into the four execution categories represents the recommendation for Cisco to group the categories to enable developing them individually and keep in sight the overall picture and focus of approaches to integrations: A. Four Major Execution areas recommendation: 1. Vertical integration represented by front and back systems, 2. Lateral integration between the company and customers, its business partners, intermediates, and suppliers 3. Horizontally integration, represented by e-commerce, customer relationship management, enterprise resource planning, supply chain management systems, and knowledge management. 4. Downward integration in the company consisting of the use and integration of new technologies that utilise significantly redesigned business processes. The purpose of using the four execution areas as the grouping guideline recommendation is that they provide an overview and practical approach to meshing changes to ensure they fit the existing, planned and potential future aspects for e-business system development at Cisco. A search for how this is done at the company could not be uncovered, thus this recommendation represents a guideline learned from the research into this topic. The complexities are simplified by understanding the way one component links with others that means the approach to upgrade one or multiple areas need to take a holistic system view as opposed to the individualised areas listed under the eight sections separately. By using a less confusing grouping or combining groupings into few categories means the likelihood of not integrating them holistically can be reduced or avoided. The above represents a system oriented approach as opposed to a task approach. The difference is as follows: 1. System-Oriented Approach This represents the use of a systems development lifecycle that consists of analysis, planning, implementation, design, and maintenance (Hermans, 2014). The core of systems development, design and analysis consists of (Hermans, 2014): a. Determination of requirements This is a carefully conducted study of current manual and computer systems to be considered for replacement or improvement. b. Analysis This consists of the structural requirements, relationship with and to components and redundancy elimination. The design phase represents all system aspects, specifics on physical areas, input and output screen development regarding databases, reports and different approaches. 2. Task-Oriented approach This consists of having a specific or a number of tasks a client or new approach seeks to inculcate into a new or existing process (Lee, 2008). It looks at what is currently being done or what it consists of and then sets about working in these new parameters to result in the changes needed to fulfill the new directives (Lee, 2008). The problem is that it does not tend to look at other related or potentially related aspects that could be affected (Lee, 2008). The recommendation to utilise the four segment execution approach that uses systems orientation entails more upfront and in progress segments. However, it minimises possible after implementation conflicts and issues that could arise in later stages. As a leading IT/networking company, Cisco needs to be able to anticipate the hidden factors in solutions in order to provide clients with software and consulting services that offer the highest degree of reliability and validity, hence the recommendation represented by the four-stage execution and systems method. References Andreu, L., Alfas, J., Bigne, J., Mattila, A. (2010) An analysis of e-business adoption and its impact on relational quality in travel agency–supplier relationships. Tourism Management. 31(6), pp. 777-787. Chaffey, D. (2007) E-business and E-commerce Management: Strategy, Implementation and Practice. London: Pearson Education. Cisco (2017) 2017 Annual Report. (online) Available at (Accessed on 23 August 2018) Combe, C. (2012) Introduction to E-business. London: Taylor Francis. Cruz-Cunha, M., Varajao, J. (2010) E-Business Issues, Challenges and Opportunities for SMEs: Driving Competitiveness. Hersey: Business Science Reference. e-commerce Guide (2018) The Future of Ecommerce. (online) Available at (Accessed on 23 August 2018) Falkner, E., Hiebl, M. (2015) Risk management in SMEs: a systematic review of available evidence. The Journal of Risk Finance. 16(2), pp.122-144. Gordijn, J., Osterwalder, A., Pigneur, Y. (2006) Comparing two business model ontologies for designing e-business models and value constellations. (online) Available at (Accessed on 23 August 2018) Hermans, T. (2014) Translation in systems: Descriptive and system-oriented approaches explained. London: Routledge. Lee, E. (2008) Cyber physical systems: Design challenges. (online) Available at (Accessed on 23 August 2018) Lui, H. (2018) What Is the Future of Ecommerce in 2018 and Beyond? 10 Trends. (online) Available at (Accessed on 23 August 2018) Lunenburg, F. (2010) Formal Communication Channels: Upward, Downward, Horizontal, and External. (online) Available at (Accessed on 23 August 2018) Makinen, J., Kahkonen, A. (2010) E-procurement as a key success factor in cooperative purchasing. International Journal of Procurement Management. 4(1), pp. 12-23. Martins, L., Rindova, V., Greenbaum, B. (2015) Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal. 9(1), pp. 22-31. Poletti, T. (2018) Cisco revenue is growing again, and headed for more. (online) Available at (Accessed on 23 August 2018) Schumacher, M., Fernandez-Buglioni, E., Hybertson, D. (2013) Security Patterns: Integrating security and systems engineering. New York: John Wiley & Sons. Weske, M. (2012) Business process management architectures. Business Process Management. 10(3), pp. 333-371. Read More