Free Essay

Cisco Acquisition Integration

In: Business and Management

Submitted By kate2046
Words 304
Pages 2
Acquisition Integration

A Cisco on Cisco Case

Cisco_IT_Case_Study © 2007 Cisco Systems, Inc. All rights reserved.

Cisco Public

1 Overview

Challenge
Integrate the employees, operations, and department-level functions of newly acquired companies quickly and easily

Solution
Apply standard principles and processes for acquisition integration

Results
Easier integration that maximizes value of acquisition

Next Steps
Continue to build integration expertise throughout the company

2 Challenge
Smoothly Integrate Acquired Companies
120+ companies acquired since 1993 Handle acquisitions as a normal part of business Create a consistent, repeatable, and adaptable approach to integration Develop integration expertise with consistent activities and teams Apply these standards across the company and within departments

3 Solution
Standard Principles and Team Approach Standard principles
Internal alignment through a consistent approach Cross-function cooperation Consistent, repeatable, and adaptable processes Continually refine practices with lessons learned

Standard team approach
Central integration team Cross-function teams Department teams

4 Solution
Technologies for Team Collaboration
Cisco MeetingPlace conference calls WebEx online meetings Cisco TelePresence E-mail Online document sharing Online project management tools

5 Results
Maximized Acquisition Value Benefits for Cisco as a company:
Shorter time to realize acquisition value Faster, more efficient, and less disruptive integration efforts High levels of employee retention and easier cultural integration Improved operational infrastructure Maximized sales channels Continuous development of integration expertise

6 Results
Maximized Acquisition Value Benefits for Cisco departments:
Human resources: Reduced impact of transition helps to sustain employee productivity and satisfaction Sales: Minimized decline in revenue from acquired products during transition Manufacturing: Cost savings as suppliers can accommodate acquired products quickly and easily Customer service: Service continuity for customers Finance: Consolidated financial reporting and compliance with Sarbanes-Oxley requirements

7 Next Steps
Continuous Improvement
Continue to expand and refine integration expertise across the company Adapt integration practices to accommodate new acquisition types and more international acquisitions…...

Similar Documents

Premium Essay

Cisco

...Cisco Case Study Cisco Systems is a leader in its industry and a leading supplier of networking equipment. Through its history it struggled to go from a corporate name to a household known brand. Although Cisco equipment significantly contributed to the backbone of the internet and the company was very successful, the recognition on the brand was low. In the past Cisco’s marketing campaigns targeted corporations and IT decision makers but in 2003 they entered the consumer market. The acquisition of Linksys allowed Cisco to offer several home entertainment solutions along with home and small office network gear. Because they now have consumer products, the also needed a different marketing approach. In 2006 the company launched a rebranding campaign, the tagline “The Human Network” was intended to ‘humanize’ the technology company by branding them as a company that connects people through technology and not just a company that builds network equipment. This marketing strategy was highly successful, increasing revenues by 41% from 2006 to 2008. In 2008 their revenue hit $39.5 billion and was ranked the 18th largest global brand. With this said, it was a viable plan for Cisco to reach out to consumers at that time but it is well known in business that most companies fail once they step away from its core competencies. Although going from larger company routers to home routers with the acquisition on Linksys was not a far cry, Cisco fouled when they tried to go even further......

Words: 856 - Pages: 4

Premium Essay

Case Study – Gsk’s Acquisition of Sirtris: Independence or Integration?

...Case Study – GSK’s Acquisition of Sirtris: Independence or Integration? Questions to be answered: 1. Slaoui and Andrew Witty, GSK’s CEO must sell the acquisition of Sirtris to two key constituencies: the GSK board of directors, as well as to Westphal and the senior team at Sirtris. How would you make these pitches? 2. If you are Westphal, how do you feel when you get the call from Slaoui? What terms are you most inclined to negotiate? 3. The vast majority of startups “exits” during the past decade have been through acquisitions by larger companies. What is likely to change at Sirtris after the acquisition? More generally, how do entrepreneurial companies change after they are acquired? Is there a role for an entrepreneur like Westphal in a very large company like GSK? 4. Put yourself in Slaoui’s position. How should you manage the integration of Sirtris? Then think about the same questions from the perspective of Westphal? 1. GSK and Sirtris have been negotiating a potential acquisition for several years, so when the actual decision was made, Slaoui and Witty had to pitch the news to their own people at GSK as well as to Sirtris’ senior team and CEO Mr. Westphal. The process of bringing the news to the respective constituencies should include a couple of universally applicable standards and/or rules that managers should bring to the table when announcing an acquisition that is believed to have a major impact on the operations and culture of both companies...

Words: 2520 - Pages: 11

Free Essay

Cisco Culture

...Cisco Systems, Inc. is an American-based multinational corporation that designs and sells consumer electronics, networking and communications technology and services. Headquartered in San Jose, California, Cisco has more than 65,000 employees and annual revenue of US$40.0 billion as of 2010. By providing a highly connected workplace, an inclusive and diverse environment, comprehensive health and wellness programs, robust professional development opportunities, and competitive compensation and benefits, Cisco helps more than 70,000 Cisco employees multiply impact on the job and in their personal lives. | | Culture and Climate It is the shared beliefs and quality of interactions within and across organizational units: Open and trusting, internally competitive, operationally disciplined, and creative and entrepreneurial. Also called corporate culture, it's shown in:   - the ways the organization conducts its business, treats its employees, customers, and the wider community, - the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, - how power and information flow through its hierarchy, and how committed employees are towards collective objectives. Our values shape our Culture. These are Cisco’s values: Change the World, Focus intensively on customers, Make innovation happen, Win together, Respect and care for each other, Always do the right thing” Awards and Recognition In FY12 Cisco was included in Fortune......

Words: 3568 - Pages: 15

Free Essay

Cisco Systems, Inc.

...you improve Cisco’s acquisition selection and integration process? Re: Acquiring other companies is an important strategy for Cisco to rapidly offer new products, reach new markets, and grow revenue. Cisco strengths were its large scale production reaching to large customer base, good reputation, and good financing capabilities. However, unlike other networking companies Cisco doesn’t always develop new technologies on it own and have to rely on acquisition. Cisco acquisition selection should the meet criteria to ensure it meets its acquisition objectives- the companies should have compatible vision for industry and product perspective, share complementary culture, produce short and long term benefits to Cisco shareholders and company should be geographically located close to Cisco. While, for smother acquisition integration Cisco should setup consistent and adaptable product, personnel and manufacturing acquisition process and at the same time continually refine the process from the lessons learned. Q2. Does the Cisco’s process adequately address the challenges of the Summa Four acquisition? Re: Summa Four was a leading provider of programmable switches which will enable Cisco to offer value- added telephony applications to new and existing service providers. Due to the deregulation of the telecommunications industry, service providers were in a competitive race to develop and deliver these types of enhanced services to their customers. Cisco announced it......

Words: 307 - Pages: 2

Premium Essay

Cisco

... The reason is Cisco was such a big company and growing very fast at that time. The legacy system was very hard to get rid of and the efforts and time it requires to replace a new system would not be accepted by the board. The CIO was first trying to avoid an ERP solution and let each functional area make its own decision regarding the change of the core software. But to keep up with the company’s strong tradition of standardization, all functional areas would be required to use common architecture and databases. Thus this would be more difficult than to deploy one system. 2. Cisco was highly successful with its ERP effort. What accounts for this success? What were the most important things that Cisco did correctly? There are several reasons that led to the success of Cisco’s ERP implementation. a. Support from the board, it was the right time that the old system kept failing and everyone saw an opportunity to do something big to replace the whole legacy system. b. Best people from different team/function areas. c. Strong partner KPMG, an experienced integration partner that has worked on many ERP system before. d. Correct selection strategy: consulting other companies to leverage their experiences, consulting Gartner to get real report on the market. RFP to vendors and 3-day software demonstration. e. Ideal implementation team, each track (totally 5 tracks by process area teams) has an IT leader and business leader from Cisco, business and IT......

Words: 419 - Pages: 2

Premium Essay

Cisco

...knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an “innovation capability” construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures and systems, culture and climate, and management of technology. Keywords: innovation, dynamic capabilities, Cisco, new technology Introduction Ask many of today’s CEOs and they are likely to tell you that the ability to develop new ideas and innovations is one of the top priorities of their organisations (Porter, 377 378 B. Lawson & D. Samson Stern & Council on Competitiveness, 1999). The emergence of the knowledge economy, intense global competition and considerable technological advance has seen innovation become......

Words: 8853 - Pages: 36

Free Essay

Managing the Post-Acquisition Integration Process

...MANAGING THE POST-ACQUISITION INTEGRATION PROCESS: HOW THE HUMAN INTEGRATION AND TASK INTEGRATION PROCESSES INTERACT TO FOSTER VALUE CREATION* The paper of Birkinshaw, Bresman and Håkanson argue that the underlying processes of a succesful acquistition are task integration and human integration. An effective and successful integration is achieved by separating these two sub-process into a two-phase process. In phase one that lasts around 5 to 7 years, human integration usually proceeds smoothly and leads to cultural convergence and mutual respect. But task integration is more difficult to achieve and only a satisfactory, rather than an optimal solution will be achieved In phase two it is important to focus on task integration that can be built on the success of the human integration that had been achieved in phase one. The paper asks the question: what is the process through which an acquisition delivers on the value creation sought by the acquiring firm. Human Integration: generating satisfaction, and ultimately shared identity, among employees from both companies. Creation of positive attitudes towards the integration among employees on both sides Task integration: means value creation as the objective of the acquisition, measured in terms of transfers of capabilities and resources sharing.--> Identification and realization of operational synergies These two should be seen as two distinct process: but they are not independent of each other as......

Words: 1867 - Pages: 8

Free Essay

Cisco

...Cisco Systems ERP – Case Study Andree Grecchi Hawai’i Pacific University 2/19/2014 IS 6005 Professor: Ken Rossi Table of Contents Who is Cisco? 2 Prehistorical Infrastructure 4 Seeking for a new start 4 Evaluation 6 Conclusion 7 References 8 Who is Cisco? Cisco is one of the most powerful and successful corporation in the IP network industry. In the fiscal 2013 their revenue totaled $48.6 billion and their Net Income was $10.0 billion (Cisco 2013 Annual Report). Cisco focuses on delivering products and services that consists in integrated networks for all forms of communication and IT. They provide their customers with an integrated architectural approach that gathers application-specific integrated circuits (ASICs) software, hardware, and services. In December 1984 Cisco Systems Inc. was founded by two computer scientist at the Stanford University, Len Bosack and Sandy Lerner, husband and wife. The two lovers wanted to communicate by email from their respective offices, but at the time different local area protocols communications didn’t exist. As a result the first multi-protocol router came out. Since then Cisco lead the networking market allowing “the transportation of voice, data and video within buildings, across campuses and around the world” (Cisco 2013 Annual Report. P.1). This is possible thanks to the routers, its core technology. A router is a device that joins multiple networks together, it allows the......

Words: 1508 - Pages: 7

Premium Essay

Managing the Strategic Dynamics of Acquisition Integration

...the strategic Dynamics of Acquisition Integration: Lessons from HP and Compaq Suggala Indraneel 012513187 Aim of the paper: This article discusses about the Hewlett Packard company and Compaq merger and analyzing the final result of the acquisition of the companies. The aim of the paper is to examine the operational integration process, process of formulating the integration logic, and strategic integration processes of two large high technology companies, HP and Compaq, which are well established in a highly dynamic competitive environment. Introduction: In 2001, HP CEO proposed to acquire the high technology computing company Compaq. They expected to have a longer term revenue and profit goals after merging the companies as both of the companies are already grown computing companies. But many of the analysts were against this idea. Even HP board members showed opposition towards the merger leading to a proxy fight. They argued that the integration risk was eventual as there was never a success in big companies acquisition the two companies have their own way of strategies and plans for the development of organization. This varied cultures create integration difficulties, revenue risks offset cost synergies, financial risks etc. This way, proxy fight was severe and success seemed narrow. But finally the organization integration was successful with the......

Words: 1542 - Pages: 7

Free Essay

Cisco

...member of the 2004-2005 SDCFP, it was an honor and pleasure to be assigned at Cisco Systems in San Jose, CA. Without exception, the men and women at Cisco provided me every opportunity to broaden my perspective on business practices, leadership, and management. Treating me in every respect as a valued Cisco employee has afforded me the chance to observe the company from the perspective of an “insider” and experience what it is like to serve in a world-class corporate organization such as Cisco Systems. The fellowship would not have been nearly as rewarding without the tremendous support of a host of people. First, my direct sponsors at Cisco—John Davis and Scott McMahan—orchestrated every phase of the fellowship and spent innumerable hours willingly bringing me up-to-speed regarding the company’s culture, business practices, etc. Additionally, Lance Perry, Vice President, IT Infrastructure, went out of his way to provide open access to his organization and the daily dealings with his Directors, which was key to gaining a true “insider” perspective. These three professionals represent some of the best Cisco has to offer. While there were many people that were instrumental in making this year a success, a handful routinely went out of their way to ensure my time at Cisco was productive. Michele Martino and Carolyn Johnson kept me “out of trouble” by providing sage counsel with regard to the Cisco way of doing business in the admin arena. All of the IT......

Words: 13774 - Pages: 56

Free Essay

Cisco

...Problem definition Cisco Systems Inc. is one of the leading companies operating in the telecommunication industry. At the present moment, the company has a strong position in the world market and actively develops its business targeting at the wider implementation of new technologies. In fact, the company was traditionally oriented on the introduction of innovations and nowadays it is still focused on the development of new technologies which can improve the position of the company in the market and guarantee its leadership in the future. In such a situation, Cisco Systems Inc. develops its corporate strategy, which basically targets at the acquisition of smaller companies which a great potential and have developments which could be very perspective in the future. One of such companies is Summa Four, which Cisco Systems Inc. wants to acquire. In this respect, it should be said that the acquisition of the new company will inevitably pose certain difficulties Cisco Systems Inc. will have to overcome. Even though the company has a huge experience of acquisitions, since the company has launched the strategy of acquisition since the early 1990s, the acquisition of Summa Four is different from the acquisition of any other company Cisco Systems has ever bided for before. To put it more precisely, as a rule Cisco Systems Inc. acquired companies which were small and did not possess significant manufacturing facilities. Basically, such acquisitions were rather investment in the......

Words: 1421 - Pages: 6

Free Essay

Cisco

...Case Study of Cisco Systems, Inc. Nirav Sheth INTB 3354: Introduction of Global Business Professor Alana Aleman April 8, 2015 1. Introduction Leonard Bosack and Sandy Lerner, the married couple who met at Stanford University, founded Cisco in 1984 in San Francisco, California. During Cisco’s founding years at Stanford University, Leonard Bosack, Sandy Lerner, and a few others helped connect hundreds of computers throughout Stanford University on a wired network. They understood that they could take this technology and help other university and business, which helped Cisco grow into the $150 billion networking conglomerate it is today. Cisco multiprotocol router, Cisco’s first major product, was one of a kind package of a group of routers, switches, internetworking and other telecommunication devices that helps a group of computers multitask on a closed network. From here, Cisco’s management created a market where they could sell routers, switches, servers, data centers, and other telecommunication devices and software to help connect the world through electronic devices. Like many other technology companies, there were able to help bring this technology to the rest of the world because their hardware and software did not vary too much throughout different markets. They were able to become truly global and sell their products all over the world to enable billions of people enable them to connect into the digital world. (Boudreau) 2. Problems Cisco first......

Words: 1674 - Pages: 7

Premium Essay

Cisco

...“Social Strategy at Cisco Systems” written by Mikolaj J. Piskorski, Daniel Malter, and Aaron Smith. It emphasis on a main concern, which is aligned with Cisco Learning Network and Internet of Everything (IoE) and is presented in a question; how can Cisco’s phenomenon of “Internet of Everything” be attained through Cisco Learning Network? The issue highlights the importance of Cisco’s strategic commitment of advancing and supporting the Internet of everything. The Cisco Learning Network, a social learning community focused on the IT industry, allows members to learn and interact with each other through a social platform. Whereas, the Internet of Everything is the networked connection of people, process, data, and things. Correlation of the two ideas can help Cisco increase certification by 2018 and retrain all of IT workforce; hence bringing major opportunities for the Cisco Learning Network. The report goes into further details by analyzing the three main reason of why this is an issue and what implicit opportunities does it present, who is effects of the main issue and what are the alternatives. Growth/expansion, competition, and future challenges and opportunity are three main point led to the goal of IoE (Internet of Eveyrthing) . Expanding the CLN (Cisco Leaning Network) and social platform, can attractive members all around the world and help develop ideas to attain IoE era. Jeanne Beliveau-Dunn,vice president and general manager for Learning@Cisco systems Inc,......

Words: 2979 - Pages: 12

Premium Essay

Cisco

...Mini Case:  Cisco Systems 1.  How does the business strategy affect information systems and organizational systems decisions? The information system strategy triangle shows the alignment between business strategy, information system strategy, and organizational strategy. Most successful companies have business strategy that drives both organizational strategy and IS strategy. (Pearlson & Saunders, 2012) Cisco’s website states that “Having a strategy discipline is more important than ever now as we grow and drive the business to a larger scale” (Cisco, n.d.). According to this mini case, Cisco is one of these grown companies that uses a business strategy of acquiring companies to respond to rapidly customer expectations change, the acquisitions provided Cisco with immediate infrastructure, technology, and smart people. “Cisco's growth strategy is based on identifying and driving market transitions. Corporate Development focuses on acquisitions that help Cisco capture these market transitions” (Cisco, n.d.). Cisco uses the information system strategy triangle, its business strategy has been to build the ultimate model of an efficient net company, which aligns with both its organizational strategy to use the Internet for connecting to customers, suppliers, and other stakeholders, and its IS strategy by sending order received from customers to suppliers who manufacture some of the products for Cisco. The suppliers, in turn, are able to provide exactly what Cisco's......

Words: 638 - Pages: 3

Premium Essay

Mergers and Acquisitions

...Sandeep K Krishnan In an ideal merger, the newly created entity pools the best features of the two merging organizations. A well planned process built on the foundations of an open, honest and consistent communication strategy can pave the way. Mergers and acquisitions have become a common phenomenon in recent times. A merger of the size like HP-Compaq has implications for the workforce of these companies across the globe. Although the merging entities give a great deal of importance to financial matters and the outcomes, HR issues are the most neglected ones. Ironically studies show that most of the mergers fail to bring out the desired outcomes due to people related issues. The uncertainty brought out by poorly managed HR issues in mergers and acquisitions have been the major reason for these failures. The human resource issues in the mergers and acquisitions (M&A) can be classified in two phases the pre-merger phase and the post merger phase. Literature provides ample evidence of difference in between the human resource activities in the two stages: the pre-acquisition and post acquisition period. Due diligence is important in the first phase while integration issues take the front seat in the later. The pre acquisition period involves an assessment of the cultural and organizational differences, which will include the organizational cultures, role of leaders in the organization, life cycle of the organization, and the management styles. The mergers often prove to be......

Words: 3465 - Pages: 14

The Impact of Television - 1087 Words | Vauxhall Corsa Club A/c | 10x OEM Fast Charge Micro USB Cable Rapid Sync Cord Charger Plug Bulk Wholesale