Biz Adjustments @ Cisco

http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=752727

Here is what I think are the key parameters that are used as framework for adjusting business at Cisco. Can this framework be generic for business adjustments in other technology companies?

 

• Product portfolio – identify beachheads for portfolio and create a common thread that runs among these beachhead e.g., in Cisco case, looks like they started with infrastructure – data center virtualization/cloud, then routing/switching/services; move to collaboration/video and then architectures for business transformation. An alternative could be identify core and identify all those areas that drives growth of the core area. But if you do this, won’t you loose focus and have difficulty in identifying what is that adjacent area that you need to focus and which one to ignore? Wasn’t this the problem that Cisco had while venturing into consumer devices?

•  Having an organization structure that can enable having dedicated teams for focusing on key customers/key customer segments. This is an important step for create a holistic offering for key customers also to create differentiation (related note: I was reading a white paper in nPhase (M2M device management company) that talks about how companies will have to focus on other aspects like Unique Business Model and Value Propositions, Unique Leveraging of Channel Assets, Unique Leveraging of Knowledge Assets, “Out-of-the-Box” Sales and Marketing Strategy along with Networked Product Features and Attributes in the new game of competing)
• Separating innovation/prototypes/pilots from delivery – create a group within engineering to focus on emerging business
• Creating vertical market specific group to focus on specific customer segment – enterprise, service provider and emerging market

There  is an interesting statement “Resource allocation and profitability targets will move to the sales and engineering leadership teams which will have accountability and direct responsibility for business results”. This could mean that company would be more sales driven rather than engineering driven. This could help to bring efficiency in the operations but also will signal that getting nod for new technology/products would require engineering team to talk in business terms and justify ROI for each investment. Will this stifle innovation?

 

 

XIUS – Quick Analysis on Solutions Offered

http://xius.com

Interesting company in the telecom value added service offering space. Overall XIUS seems to be having all necessary technology components to offer a true hub based offerings (roaming connectivity/settlement, prepaid-voice/data roaming, roaming services, advertising, mobile payment). However it depends on whether they can show differentiations when compared to international roaming service providers like Syniverse, MACH or with domestic roaming service providers like Roamware, Starthome. Few of the differentiating parameters could be – match technology/reach of existing providers but play on cut taken to offer such services; additional services e.g., international interconnect for wireline operators (for VOIP), integration app stores with operator billing systems etc. 

Looking closer at one of the offering – INergy; this solution talks about service control point (SCP) that helps to abstracts network complexities and introduce capabilities like parental control, policy control, mobile advertising and proactive messaging.Even though this is a form of service exposure and SCIM, positioning doesn’t clearly state its capabilities with regard to;

• Service brokering and IM-SSF capabilities or even the standard set of API that are available for the 3rd parties to make their application available in a telco environment through SCE/SDK
• Mobile advertising – whether it can function like a blind ad market and has connectivity to different ad network
• Scaling up of the hardware/software to handle all network events (both voice & data)
• Proactive messaging or campaign management capabilities – kind of algorithms available to track & forecast end-user usage patterns etc

This is a unique component if offered either in a hosted manner (both private/public – read hub), then this can be one of the key differentiating offering.

Managing Downturn at R&D

http://www.eetimes.com/showArticle.jhtml?articleID=212300429&cid=NL_eet
 
Excerpts from interview with Mr. Jun-Hyung Souk, EVP of Samsung’s Display R&D Center
 
History has shown us that companies with good vision and R&D can withstand the downturn. This fact is reinforced after learning how Samsung is extending its R&D and manufacturing capabilities of flat-panel TV to solar and immersive displays. Also shifting LCD business into survival model for the downturn with a focus on cost effective products. The decision to get into the new product line has been triggered through the analysis of the flat-panel TV industry growth as well as its own sales. Based on this data analysis, management team has come out with a long term plan to grow and sustain a business that would go beyond 2010.
 
Strategic activities that could be seen are:
- putting an R&D team together for solar panel
- invest on developing new type of solar panel
- till new type of solar pannel is developed, continue using existing bulk crystalline panel
- use its strong brand, vertical integration (sales, support infrastructure, distribution structure, production facility etc)
 
Other key notable point in this article is Samsung’s attitude towards accepting downturn as survival game and involve employees for discussions and workshops to seek new growth drivers, quick move from profit plan to survival plan (e.g., better utilization of production methods to reduce cost, develop new methods to reduce cost of producing a product, developing single platform). However focus on new technology, materials for its product development has not reduced but it has increased to create advantage for Samsung.