Cisco Systems: The Supply Chain Story

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Case Details:

Case Code : ITSY001
Case Length : 08 Pages
Period : 1984-2002
Pub Date : 2002
Teaching Note : Available
Organization : Cisco Systems
Industry : Computer Networking
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Cisco - The Networked Supply Chain

Cisco was founded in 1984 by a group of computer scientists at Stanford. They designed an operating software called IOS (Internet Operating System) that could route streams of data from one computer to another. The software was loaded into a box containing microprocessors specially designed for routing. This was the router, a machine that made Cisco a hugely successful venture over the next two decades (Refer Table I for details of Cisco's growth). In 1985, the company started a customer support site through which customers could download software over FTP¹ and also upgrade the downloaded software. It also provided technical support through e-mail to its customers.

In 1990, Cisco installed a bug report database on its site. The database contained information about potential software problems to help customers and developers. The system allowed customers to find out whether a specific problem was unique, and if not, how other customers had solved that problem. By 1991, Cisco's support center was receiving around 3,000 calls a month.

This figure increased to 12,000 by 1992. In order to deal with the large volume of transactions, the company built a customer support system on its website. In 1993, Cisco installed an Internet based system for its large customers, usually multinational enterprises. The system allowed customers to post queries, about their software problems. Cisco also installed a trigger function called 'Bug Alert,' which sent emails containing information on software problems within 24 hours of their discovery. Encouraged by the success of its customer support site, Cisco launched Cisco Information Online in 1994. This online service offered not only company and product information but also technical and customer support to Cisco's customers.

By 1995, the company introduced applications for selling products or services on its website. The main idea behind this initiative was to transfer paper, fax, e-mail and CD-ROM distribution of technical documentation and training materials to the web, thus saving time for employees, customers and trading partners and besides broadening Cisco's market reach.

Excerpts >>

1] Acronym for File Transfer Protocol – The most common way to download and upload files on the Internet. When a person downloads something from a shareware site, he/she is typically connected to an FTP site, and the computer and the server use FTP to send the file(s).