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Cisco Systems - The Supply Chain Story

            

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Cisco – The Networked Supply Chain Contd...

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.

TABLE I
CISCO – THE MILESTONES

YEAR

EVENTS

1984 Founded in a living room by the husband-wife team of Sandy Lerner and Len Bosack. Router used for the first time to move information from one network to another.
1990 Cisco goes public.
1992 Plans a global supply network; outsources manufacturing and distribution.
1993 Acquires Crescendo, a low end LAN switch maker for $ 100 million.
1994 Launches Cisco Connection Online website.
1995 John Chambers becomes the CEO and accelerates the acquisition strategy by acquiring four companies in the same year.
1996 Cisco moves into the WAN switch market, acquires Startcom for $ 4.5 billion
1997 Cisco starts its global direct fulfillment system. Products are directly shipped by third party logistics partners from the manufacturer to the customer
1998 Cisco prepares to become a single vendor servicing the network arena. Enters into alliances with integration partners like KPMG and IBM to provide solutions.

Source: ICMR

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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).

Case Details

Case Code : ITSY001
Themes: EVA Financial concepts
Case Length : 5 Pages
Period : 1997-2001
Organization : L&T
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Construction - Building Materials & Equipment, Financial Services

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