oem cisco presentation

© 2009 IBM Corporation

SALES TRANSACTION SUPPORT SALES TRANSACTION SUPPORT CISCO OEM ORDERING TEAM CISCO OEM ORDERING TEAM


Agenda Cisco History

IBM & Cisco Alliance

Supported Countries

STS OEM Cisco Ordering Team

Cisco Products

Other Suppliers

Types of Orders

Discounts Applied

Cisco Programs

Systems and Tools

Shopping Methods

Cisco Maintenance

Cases

Scorecards

E2E Process

Questions


Cisco History

Cisco Systems, Inc. multinational corporation, headquartered in San Jose, California that designs and sells consumer electronics, networking, voice, and communications technology and services. Due to lower-than-expected profit in 2011, Cisco was forced to reduce annual expenses by $1 billion. The company cut around 3,000 employees with an early-retirement program who accepted buyout and planned to eliminate as many as 10,000 jobs (around 14 percent of the 73,400 total employees before curtailment).

Cisco Systems, Inc. was founded in 1984 by a married couple Len Bosack and Sandy Lerner. Cisco’s name is derived from the city San Francisco. The logo of the company symbolizes the Golden Gate Bridge.

The Chairman of the Board and CEO of Cisco Systems, Inc. is John T. Chambers. He joined Cisco in 1991 as senior vice president.


IBM & Cisco Global Alliance

Why Cisco & IBM?

IBM & Cisco Global Alliance: the IBM and Cisco alliance helps the customers maximize business results by uniting IBM's vast industry, business process and implementation expertise with Cisco's world-class unified communications and networking technologies.

IBM – the best solution and servicer provider, a business partner of Cisco in 38 countries

Cisco –one of the best technical providers


PLVSARLVT

AUSTRIABELGIUM DENMARKFINLANDFRANCEGERMANYGREECEIRELANDITALY – IGA ONLY NETHERLANDSNORWAYPORTUGALSPAINSWEDENSWITZERLAND UK

Supported Countries

BULGARIACROATIACYPRUSCZECH RepESTONIAHUNGARYLATVIALITHUANIAPOLANDROMANNIASLOVAKIASLOVENIASERBIATURKEYUKRAINE


Supported Countries

EGYPTMOROCOTUNISIASOUTH AFRICA


DUBAIISRAELPAKISTANRUSSIA

Supported Countries


Network Systems * Routers * Switches * Network Management * Cisco IOS Software * Interfaces and Modules * Optical Networking

Collaboration, Voice and Video * Voice and Unified Communications * WebEx Collaboration * TelePresence

http://www.youtube.com/watch?v=cRGHokZtaf0 * Video, Cable and Content Delivery

• Cisco StyleMe Virtual Fashion Mirrorhttp://www.youtube.com/watch?

v=jDi0FNcaock * Universal Gateways and Access

Servers Security

* Security * Physical Security * Virtual Private Networks (VPN) * Firewall * Security Management


Data Center * Application Networking Services * Storage Networking * Data Center Switches * Blade Switches

Mobility / Wireless * Wireless * Access Points * Outdoor Wireless * Wireless LAN Controllers * Service Exchange


• Cisco acquired a variety of companies to spin products and talent into the company. In 1995–1996 the company completed 11 acquisitions

• During the Internet boom in 1999, the company acquired Cerent Corporation for about US$7 billion, acquisition of Scientific Atlanta has been larger.

• The latter came as result of Cisco acquiring Linksys in 2003 and in 2010 was supplemented with new product line dubbed Cisco Valet

• Cisco announced on March 15, 2012 that it is acquiring NDS Group for $5B. This transaction was completed on July 30, 2012.

• In January 2013, Cisco Systems acquired Israeli software maker Intucell for around $475 million in cash, a move to expand its mobile network management offerings. In the same month, Cisco Systems acquired Cognitive Security, a company focused on Cyber Threat Protection. Cisco also acquired SolveDirect (Cloud Services) in March 2013 and Ubiquisys(Modile Software) in April 2013.

List of acquisitions by Cisco Systems


Other Suppliers


Types of Orders

The purpose of the Cisco OEM Ordering Team is to process internal, external and SO (strategic outsourcing) orders from OEM suppliers (Cisco but also others) for supported countries. In general, on the basis of the requests which come to OQS, we place the order through Bond - web application.

External orders – equipment will be owned and used by an external customer.

Internal orders – equipment will be owned and used by IBM internally.

SO (strategic outsourcing) orders – equipment will be owned by IBM but used by an external customer.

We also process Cisco Renewal orders – services which are going to be expired and need to be renewed.


Discounts Applied

External orders – standard discount is 42%

Internal and Strategic outsourcing orders - standard discount is 49%

Orders with Deal ID – Deal ID number is arranged between the IBM Sales Representative and Cisco Account Manager. This number allows to apply higher discount than the standard one. There are several types of Deal IDs:

Identifying and developing new opportunities (OIP)

Investing in business solution practice development (SIP)

Selling to public sector customers (PSPP)

Promoting product migration (CTMP)


Cisco Programs

Trade-in Orders: The Cisco Technology Migration Program (CTMP) is an innovative sales program enabling Customers/Partners to trade in their existing Cisco products in

exchange for a trade-in credit towards the purchase of new Cisco products Try and Buy Program (TAB): allows customers to try, then buy the equipment. The

end-customer will have 80-days to purchase the equipment or send the equipment back before the 90th day. If the end-customer keeps the equipment even after 90 days he will receive an Invoice for the cost of the equipment

Cisco Certified Refurbished Equipment program: Remanufactured to like-new condition and backed by same Cisco warranty as new products. Fully licensed and shipped with valid Cisco IOS Software license. Certified to meet all regulatory and safety compliance

requirements. All these programs are available only through the network of Cisco Authorized Partners.


Systems and Tools used by OEM CISCO Team

IBM Tools: 1) OQS Database (Order Qualification Status) – is the receipt, validation, tracking and

repository tool for all OEM orders processed by the OEM ordering team. It's a set of two Lotus Notes databases:

OQS OEM database for all active documentsOQS OEM ARCHIVE for all archived documents

2) Buy on Demand – is a web-based application developed by IBM Procurement as IBM's strategic tool for the creation and submission of purchase requisitions. It is used for preparing, tracking and managing electronic purchases; from the point of origin through approval, receipt and payment. Bond is the front-end for purchasing non-production goods and services worldwide.

3) Procurement application tool – it is included in the Sametime tool. It provides Clients with non-sensitive info regarding purchase orders and Buy on Demand (BoND) shopping carts.


Systems and Tools used by OEM CISCO Team

3rd Party Tools: The new Cisco Commerce Workspace(CCW) ordering and quoting

tool UPS Tracking Tool: provides tracking details, such as: tracking number, type of

shipment, status of delivery, scheduled delivery, shipped to place, weight, carton ID, time & date of final delivery, signature, proof of delivery.


Shopping Methods Shop by contract: All OEM orders are done via B2B Process, only some exceptions when we use

non B2B. For shop by contract we use BSAPs. BSAP is the name given to the hands free process where clients/end users select items from a supplier contract in Bond or Global Catalog Facility (GCF) and bringing the item information creating an automatic purchase order and issued to the supplier upon full approval of the Bond cart.

Catalog shopping:

GCF (Global Catalog Facility) - A cloud supporting Buy on demand (Bond) purchases. An on-line marketplace containing millions of products and services from thousands of suppliers across thousands of catalogs; all supporting the indirect purchase activity of IBMers and contractors from around the world.

Shop by commodity: It is used for other suppliers (non Cisco) when BSAP is not available, or not complete. It is

also used for PO uplifts. We can only use H4 Family (Connectivity) commodity codes - Network Cabling and Installation, Networking Equipment (Routers, Switches, Hubs, Modems, Wireless Networking Equipment), Voice & Telephony Equipment, Uninterruptable Power Supplies and related services.


Cisco MaintenanceThere are two types of Cisco maintenance: PSS & CBS (Smartnet)

PSS maintenance is provided by IBM and Cisco together. Cisco provides replacement

parts, IBM provides technicians to repair the broken machine.

PSS Maintenance Types:

PS2P - COLL 24x7x2 INT

PSOE - COLL 8x5x4 INT

PSUP - COLL 24x7x4 INT

PSRT - COLL 8x5xNBD INT

Maintenance Discounts:

1 year – 52%, 2 years – 53,92%, 3 years – 55.36%


Cisco MaintenanceSmartnet Maintenance: is provided only by Cisco. Cisco provides replacement

parts as well as technicians to repair the broken machine.

Smartnet Maintenance Types, called CBS(Cisco Brand Services)

S2P - 24x7x2

SNTE - 8x5x4

SNTP - 24x7x4

SNT - 8x5xNBD

Smartnet Maintenance Discounts:

1 year – 35%, 2 years – 37.60%, 3 years – 39.55%


Cases

At any level of the E2E process, the order can face all kind of case from the customer’s request till the delivery and even billing. Here are some of it :

During raising the cart - Invalid products-Mismatch quantities-mismatch maintenance type-Inactive Project number.

After submitting the cart , it can get rejected by the Bond approvers, Procurement or the Supplier for a reason or another.

When the order reaches Cisco, there are many holds can be placed for the order to prevent it from moving forward till it gets fix :IC Special Discount Hold - Export Hold – Order Review – New Product Hold – Expedite – VP expedite.

Order change - Order cancellation - PO Uplift (alteration for other suppliers, only if the buyer agreed)

During the delivery – Missing products – Refusing the delivery – Dead on Arrival (DOA)– Return products (RMA) - request a Credit memo from the supplier.


OEM Scorecards A brand new Cisco OEM ordering team initiative for year 2011. After 8 years existence of the CISCO

OEM ordering team the new scorecard has been created to measure the main activities performed by Cisco OEM ordering team as per the team's DOU. New scorecard is fully automated pulling out data from the OQS database based on a BRIO report. Putting in place the scorecard gives us a great opportunity to identify process and operational defects and ways for their improvement. On a monthly basis results of the team are presented with focus on Cisco OEM ordering team's turn around time (TAT).

Main measurements: Average TAT of all countries

SAT (% of orders with OEM TAT < 2 working days)


Cisco OEM Ordering Team E2E Process


Customer requirements

Pre Sales



Customer initiates deal with IBM

Pre Sales




Finance prepares the prices

Pre Sales

Deal Hub





Proposal/Contract

Pre Sales

Deal Hub


Deal is agreed. Contract is signed. Expectations are formalized.

Order can be placed…





Proposal/Contract

The contract is registered in CFTS

Pre Sales

Deal Hub

PBS





Proposal/Contract


Order entered in OQS

Pre Sales

Deal Hub

PBS





Proposal/Contract



Bond cartPre Sales

Deal Hub

PBS - PA

OEM Team





Proposal/Contract



Bond cart

Order entry

Pre Sales

Deal Hub

PBS

OEM Team





Proposal/Contract



Bond cart

Order entryPO

Pre Sales

Deal Hub

PBS

OEM Team

Procurement





Proposal/Contract



Bond cart

Order entryPO

Scheduling

Pre Sales

deal hub

PBS

OEM Team

Procurement

Cisco





Proposal/Contract



Bond cart

Order entryPO

Scheduling

ProductionPre Sales

Deal Hub

PBS

OEM Team

Procurement

Cisco





Proposal/Contract



Bond Cart

Order entryPO

Scheduling

Production

Transit to DC

Pre Sales

Deal Hub

PBS

OEM Team

Procurement

Cisco

Logistics


San Francisco

Houston

Guadalajara

Atlanta

Boston

Bangkok

Hong Kong

Penang

Singapore

TiszaujvarosPardubice

ELC

Toronto

The European Logistics Centre (ELC) receives orders from all origins in Europe, North America and Asia

The European Logistics Centre





Proposal/Contract



Bond cart

Order entryPO

Scheduling

Production

Transit to DC

Shipment

Pre Sales

Deal Hub

PBS

OEM Team

Procurement

Cisco

Logistics


Explanation Time in Transit UPS SCS

UPS SCS Warehouse Herkenbosh (NL)

UPS SCS distribution center

Amsterdam (NL)

Destination airport

Delivered (Time in Transit ends)

Standard service level: Time in Transit max. 4 -5 working days

Express service level: Time in Transit max. 2 - 3 working days

Received at Origin Service Centre (Time in Transit starts)


In case of need, 24h delivery can be used (airfreight, or special courier e.g. Fedex)





Proposal/Contract

The Contract is registered in CFTS


Bond cart

Order entryPO

Scheduling

Production

Transit to DC

Shipment

Delivery

Billing

Pre Sales

Deal Hub

PBS

OEM Team

Procurement

Cisco

Logistics

Invoicing





Proposal/Contract



Bond cart

Order entryPO

Scheduling

Production

Transit to DC

Shipment

Delivery

BillingInvoices

Pre Sales

Deal Hub

PBS

OEM Team

Procurement

Cisco

Logistics

Invoicing


QUESTIONS?

http://www.youtube.com/watch?v=pY8VV-5OZrchttp://www.youtube.com/watch?v=pY8VV-5OZrc


Thank you for your attention!

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