Innovation Meets Market Transitions

Sam Alkharrat

Managing Director, Gulf & Pakistan

Agenda

Economics of Web 2.0

Cisco Kuwait… Driving Innovation

ICT Business Strategy

Agenda

Economics of Web 2.0

Cisco Kuwait… Driving Innovation

ICT Business Strategy

Cisco Confidential

Your Business Imperatives

Maintain Differentiation

Manage Regional/

Global Workforce

Do More with Less

Optimize Value of

Resources

Customer Focus

Growth/ Productivity

InnovationCollaboration/

Flexibility

“CEOs call technology advances… Most important driver of change”

The Economist

Technology Architecture

Tomorrow’s Successful Company

Video Mobility

Collaboration & Productivity

InteractiveBusiness

Globalization, Flexibility, Scalability,

Compliance

Personalization

Business Architecture

IT Enables Strategy

Network as the Platform

Collaboration/ Web 2.0

Innovation, Growth, Talent, Operational Excellence

Cisco’s ICT Business Strategy

Unlock Employee Potential

Save - to - Invest

Maintain Competitive Edge

Drive Customer Intimacy

Transition to a borderless Enterprise

Agenda

Economics of Web 2.0

Cisco Kuwait… Driving Innovation

ICT Business Strategy

Internet Enabled Productivity

3%

10%

5%

15%

Company

1%

Country

3%

5%

1%

1980’s 1990’s 2000+ Today

Web 2.0CollaborationProduction Transactions Interactions

Cisco’s Productivity Journey

Web 2.0Web 1.0

Web 2.0 Collaboration

Solutions:

Ben

efi

ts (

$B

/Yr)

5

4

3

2

1

0

FY95 FY00

Source: Cisco IBSG, 2009

Transactions CollaborationInformation Sharing Interactions

FY05

$3.7B

FY08

$691M

Web 1.0Internet

Solutions:

Cisco Web 2.0 2008 Savings

$691M

TELECOMMUTING

$277M

SALES & MARKETING

$25M

REMOTE COLLABORATION

$303M

CONNECTED WORKPLACE

$11M

VIRTUAL EXPERT

$75M

Source: Cisco IBSG, 2009

Drivers of Web 2.0 Collaboration Value

Reduce real estate

Avoid travel

Reducecosts to improve

profitability

$239M

Transform business

to increase growth

Create new revenue streams

Scale expertise

Increase customer intimacy

Enhance executive communication

$61M

Save time to increase efficiency

Reduce travel

Reduce commuting

Find people faster

Find information faster

$380M

Speed process to increase

agility

Shorten sales cycle

Speed time to market

Reduce delays in decision-making

$92M

Source: Cisco IBSG, 2009

Situation /Challenge

Globalization and outsourcing driving need for greater collaboration

Travel budgets increasingly constrained

Solution Deployed 300+ TelePresence rooms

Provided employees with web confer-encing (WebEx), desktop video (UC)

Result Reduced travel per employee by 31% in FY08

Faster sales cycle and improved win rate

Remote Collaboration

Increased interactions with customers

Higher quality of life

Reduced greenhouse gas emissions

Benefits

Travel expense savings of $226M/yr

Time savings of $61M/yr

Result

Sources: Corporate Affairs, TelePresence IT, Finance; Cisco IBSG, 2009

Situation /Challenge

Project and knowledge worker teams increasingly distributed globally

Face-to-face meeting time limited by travel-cost restrictions, productivity imperatives

Solution C-Vision content-sharing application provides capability to create and publish informal, engaging messages via video and audio / photography

Scales solution from CEO video blog to all Cisco managers

Result $1M/yr savings from self-service video production

$9M/yr training/recruiting savings from reduced involuntary employee attrition

Cisco C-Vision

Sources: Cisco CCOE; Cisco IBSG, 2009

Improved executive communications

Accelerated information sharing

Benefits

$10M/yr in cost savings

Increased employee satisfaction, alignment with corporate strategy

Result

Agenda

Economics of Web 2.0

Cisco Kuwait… Driving Innovation

ICT Business Strategy

Life-long partnership fuelled by Investments and Resources

Driving Innovation

Cisco in Kuwait

Local Presence

IndustrySolutions

Partners Talent Building

Strong Cash Flow

CiscoCapital

NetworkingAcademy

AdvisoryService Support

TechnologyExperts

New Business Models

Creating Long-Term Value for Customers and Partners

Key Takeaways

Business Strategy Enabled by ICT Innovation

Web 2.0… Enhancing Business Economics

Cisco and Kuwait – Long-Term Commitment

Prepare for the Upturn… Now!