Companies That Are Using The 2 Web To Conduct Business - Article Example

Running Header: COMPANIES THAT UTILISE WEB 2.0 TO ACCOMPLISH THEIR BUSINESSES Web 2.0 Companies Name & ID Course Name & Code Instructor’s Name 24th February 2010 Cisco Systems Cisco Systems company deals with development of systems and networking systems communication technology services and products, and they sell these products and services. The company is based in California, and it has three major brands that are Linksys, Cisco and Scientific Atlanta (Cisco Systems, 2010). Even though they originally specialised in the (business) enterprise business market, they later branched into home networking market. URL for the company The URL of the company is www.cisco.com Brief History The company was founded in 1984 by a married couple Len Bosack and Sandy Lerner who worked at Stanford University, and later was joined by Richard Troiano. The name Cisco was derived from the city where the business operates from e.g. San Francisco. The first product the company produced was multiple protocol router software that was originally produced by William Yeager. The company’s first CEO was Bill Graves later in 1988 John Morgridge, and 1995 was succeeded by John Chambers who drove the business into success (Cisco Systems, 2010). Even though the company was not the first to produce routers, but it was the first that was able to successfully produce routers that supported multiple network protocols. The company was listed on then NASDAQ stock exchange in 1990; the trademark for Cisco was filed in 1988 and was awarded in 1989. In the year 2000, Cisco was the most valuable company in the world and it is still one of the most valuable companies in the world (Neumann, 2009). The company was successful in the late 1990s and early 2000, but due to competition and advancement in technology, the company was not profitable as before. Diminishing number of consumers because of obsolete technology resulted in the company trying to introduce new strategies and means to ensure the consumers received value for their money. To sustain business, Cisco Systems in 2007 acquired Five Across to utilise in providing Web 2.0 (Cisco Systems, 2010). The Five Across is also located at San Francisco, and it builds social networks for numerous companies that help these companies to connect with their consumers. The company utilised this strategy because they were hankering to boost their revenues growth and to get wider brand recognition from customers, and the general excitement associated with video space (Neumann, 2009). Utilisation of Web 2.0 phenomenon and social networking was a way of driving Internet traffic, and thus through the networking strategies and routers of Cisco systems resulted in generation of more revenue for Cisco. The Five Across offers numerous features such as chat, video, individual profiles, and photo uploading. The company utilises Web 2.0 to improve their revenues through ensuring consumer Internet traffic increase presumably through their Internet pipes (Neumann, 2009). Generally, Cisco system originally specialised in production of Internet tubes and other networking resources. The company made huge profits when the idea of computer networking was introduced into the market, and many consumers had seen the importance of computer networks. However, after 2000, competition grew fast making the sale of Internet pipes because less while introduction of IP replaced most of the multiple networking technology. Thus, the idea of using Web 2.0 was introduced to help in improving revenues and increasing the number of consumers who utilised their Internet pipes (Cisco Systems, 2010). Business Classification (B2B or B2C) Cisco Systems is a large company that has been operating in computer networking industry for a long time. The company produces an array of products and services based on the requirements of the organisation (companies) and ensuring their diverse consumer base is provided with the most appropriate services and products. The business classification of Cisco System is both B2B and B2C. In the case of B2B, the company has the Five Across for example that ensures organisations and companies can utilise social networking sites resulting in these organisations and consumers purchasing routers and networking components to satisfy this requirement (Cisco Systems, 2010). Introduction of other businesses entail improving expanding services and products, and customising them to suite the requirements of numerous companies or organisations. Originally, Cisco Systems was established to fulfil the requirements of consumers especially enterprise consumers, and thus this shows that Cisco Systems is in the B2C segment. The consumers market is the most important and as people continue to understand the importance of computer network and network socialising activities, introduction of Cisco System components and services has ensured the position of consumer segment is improved. Position within the supply chain The supply chain brings into consideration the way a company can purchase raw materials from other companies or organisations, improving these raw materials, producing products and services, and then ensuring these products and services are transferred to the consumers or business segment. The company purchases raw materials from Far East countries whose products are of high quality and cheaper. The raw materials are then processed while software is developed by software engineers located in San Francisco, and then installed into the hardware components. Then the company promotes and market the products to the consumers. Thus, the supply chain of Cisco system is large and entails all requirements and features of supply chain (Cisco Systems, 2010). Waves of innovation In the information technology sector, innovation is an important component that should be maximised. The organisation continues to champion waves of innovation through its large and diverse workforce. The employees ensure the products and services that are produced fulfil the requirements of their consumers, and the technological requirements (Cisco Systems, 2010). Thus, the contribution of both the employees and organisation resources are resulted in improvement of the products and services, and ensuring the entire process is streamlined through providing a platform in which the company can provide optimum services to its consumers. International Business Machines (IBM) IBM is a company that deals with information technology and services both companies and direct consumers. The company as been operating for a long time in the industry, and has continued introducing and improving it product offerings (IBM, 2010). Thus, IBM utilises Web 2.0 to achieve its goals. URL for the company The IBM URL is http://www.ibm.com/us/en/ Brief History IBM (International Business Machines) is a company that is registered in NYSE, and it deals mostly with technological related activities. The company that is headquartered in Armonk, New York is a multinational technology, computer, and IT consulting company. The company was originally founded as the Tabulating Machine Company in 1986 y Herman Hollerith in Broome County, New York; the company still maintains limited operations within this area. The company was incorporated in 1911 as Computing Tabulating Recording Corporation was listed on 1916 to the stock exchange by George Fairchild. The South American and CTR’s Canadian was named International Business Machines in 191, and the company took the entire name when Thomas Watson was in charge in 1924. The IBM trademark was field in 1949 (Hitt, Ireland & Hoskisson, 2008). IBM is one of the few information technology companies that started its operations in the 19th century. The company produces and sells computer software and hardware, offers numerous infrastructural services that include hosting service and consulting services ranging in the areas of nanotechnology to mainframe computers – the company is nicknamed “Big Blue”. IBM has a long history within the systems integrator and computer company. According to Forbes 2000 and recent statistics show that 407,000 employees worldwide (IBM, 2010). The company has eight research laboratories worldwide and hold numerical technological patents. Some of the employees the company employ include consultant, engineers, scientists and sales professionals located in more than 200 countries. Some of the awards obtained by the IBM employees include four Turing awards, Nobel Prizes, five National Medals of Science, and nine National Medals of Technology (IBM, 2010). IBM is in the Web 2.0 market. Even though many vendors touting their Web 2.0 products, IBM is among he few companies that re able to provide end-to-end Web 2.0 solutions for business. The research and development laboratories have developed numerous Web 2.0 innovations that help in greater productivity and competitive advantage. The benchmark of IBM Web 2.0 is the Mashup technologies based on lifecycle needs, which are connect-build-deploy and manage (Hitt, Ireland & Hoskisson, 2008). The Mashup technology assists businesses to solve both IT challenges and business. This is because business need o respond to changing market requirements and seek greater agility. Thus, the numerous challenges that companies and business faces can be fulfilled by utilising Mashup since it is a self-service application development, speed, agility by allowing users to remix and combine sets of dat6a in direct ways. The characteristics of their Web 2.0 technology include it is ‘situational’ in nature, simple and flexile, easy to create, supports self-service application and help in making Service Oriented Architecture (SOA). Within Mashup, the organisation offers three solutions, which are IBM WebSphere sMash, IBM Mashup Center and IBM WebSphere Portal (IBM, 2010). Competition and information technology is changing at a faster rate and new services and products should be introduced into the market. Thus, initial and with its long history, IBM has been in the computing industry but changing requirements of consumers means introducing new services and products (Hitt, Ireland & Hoskisson, 2008). The company positions itself in the software and hardware industry and the introduction of Web 2.0 has improved the market share and achieved competitive advantage when compared to its competitors. Generally, Web 2.0 has provided means of introducing new products and services towards ensuring organisations float in volatile markets. Business Classification The organisation services both the B2B and B2C business segments. However, the company is concentrated in the enterprise market and also companies purchase most of their products and services. Many consumers purchase IBM software and hardware directly fro them, online or through agents throughout the world (more than 200 countries). This approach as cement the operations and business of IBM ensuring that maximum benefits are received from minimum resources (IBM, 2010). Many companies and organisation utilise components, parts and software from IBM to complete and produce their own products and services. Generally, IBM business classification is in the B2B and B2C sector. Position within the supply chain IBM Global Procurement is a department in IBM that is responsible for buying products such a computer services and parts at the lowest possible princes within the market or industry. The supply chain relations is a policy that has been developed by IBM to ensure the organisation resources can be maximised. Moreover, the procurement department ensures that the organisation and suppliers are held to high standards of behaviour (Hitt, Ireland & Hoskisson, 2008). IBM also ensures that the suppliers comply with all applicable regulations and laws, strong commitment to work with, and encourage sound practices through developing a sound global market. Communications with the suppliers is effective encouraging interconnection in world markets. Thus, IBM reaffirms on existing policies and instituting new policies that are clearly spelt out in the Supplier Conduct Principles (IBM, 2010). Generally, the goal of IBM is to work with suppliers to champion compliance, and this is encouraged to be extended into suppliers’ sources in engaging in the production of services and goods for IBM. Waves of Innovation The company employs diverse workforce that is experienced and it continuously trains and improve the quality and experience of their employees. The company employs sales professionals, consultants, scientists and engineers. Moreover, the company has eight research laboratories across the world (IBM, 2010). The contribution of these professions and the research facilities towards innovation can be seen through the numerous patents the organisation has and the number of awards the employee’s of the organisation have achieved. IBM’s innovation strategies and developmental approaches are posed towards creating value for money to their consumers (Hitt, Ireland & Hoskisson, 2008). References Cisco Systems. (2010). Home. Retrieved from www.cisco.com IBM. (2010). Home. Retrieved from http://www.ibm.com/us/en/ Hitt, M., Ireland, R. & Hoskisson, R. (2008). Strategic management: competitiveness and globalization: concepts & cases. New York: Cengage Learning. Neumann, J. (2009). Cisco Routers for the Small Business: A Practical Guide for IT Professionals. New York: Apress Publishers. Read More