© 2007 Cisco Systems, Inc. All rights reserved. E-Business Transformation: What’s Next Dr. Asya Rudkovskaya Managing Director Emerging Markets February 25 th, 2008, Israel

© 2007 Cisco Systems, Inc. All rights reserved. Agenda E-business and Globalization From Web 1.0 to Web 2.0 and beyond Business Architecture Innovation with Connectivity Best Practices & Lessons Learned

© 2007 Cisco Systems, Inc. All rights reserved. Global R&D Trade Evolution of E-Business = Globalization Globalisation 1.0 (started 100’s of years ago) Globalisation of the corporate brain: co-creation & talent Global Manufacturing Globalisation 4.0 (2006-beyond) Globalisation 3.0 (1990’s) Globalisation 2.0 (1980’s)

© 2007 Cisco Systems, Inc. All rights reserved. The Future: Connecting People NETWORK PEOPLE 300,000+ users 10,000+ web services

© 2007 Cisco Systems, Inc. All rights reserved. The Future: Connecting Devices NETWORK DEVICES 1 million IP devices RFID, sensors, etc.

© 2007 Cisco Systems, Inc. All rights reserved. The Future: Connecting Places NETWORK PLACES Connect anywhere Always on

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Future: Pervasive Connectivity NETWORK ExtendedEnterprise ExtendedMobility ExtendedInternet

© 2007 Cisco Systems, Inc. All rights reserved. Customer Experience is creating the next evolution of E-business Commodities Goods Service Economic Value Experiences Pricing Pine & Gilmore, 1999

© 2007 Cisco Systems, Inc. All rights reserved. Application Innovation: From Web 1.0 to Web 2.0 Passive consumers, subscription content Peer production, co- creation, clip culture Mass production, mass marketing, mass advertising Personalised products, niche marketing, dynamic advertising Parallel channels Cross channel content; mobile to web, TV to Mobile, IPTV Supply chains based on historical data Consumer driven supply chains Command & Control business models Collaborative Virtual business models TransactionsInteractions 1.0

© 2007 Cisco Systems, Inc. All rights reserved. NETWORKED INFRASTRUCTURE CORESTORAGE SECURITYWIRELESS IPT APPLICATIONS AND SERVICES ERPE-SALES SUPPLY CHAIN MGMTE-LEARNING BUSINESS PROCESSES HR SALES MANUFACTURINGFINANCE Business Architecture

© 2007 Cisco Systems, Inc. All rights reserved. NETWORKED INFRASTRUCTURE CORESTORAGE SECURITYWIRELESS IPT APPLICATIONS AND SERVICES ERPE-SALES SUPPLY CHAIN MGMTE-LEARNING BUSINESS PROCESSES HR SALES MANUFACTURINGFINANCE BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Business Architecture NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING

© 2007 Cisco Systems, Inc. All rights reserved. PRODUCTIVITY PLANE NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT Office Home Partner Customer Mobile Experts Managers Employees Guests Devices X Enterprise X Functional Function Department Task BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Business Architecture APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Business Architecture : Balance APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING UNCOORDINATED INVESTMENTS LEAD TO IMBALANCE NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Business Architecture : Sequence APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT 1 32

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Business Architecture: Hyper-Integration APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT HYPER- INTEGRATION Increased Revenues, Decreased Costs, Better Agility & Quality

© 2007 Cisco Systems, Inc. All rights reserved. Task Department Employees Managers Experts Partner Home Office BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Cisco Early Boom: Grow Faster APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING Achieved Rev/Emp of $650K Every office connected Converged IP network Client-funded model Self-service approach Single ERP Self-service applications NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT

© 2007 Cisco Systems, Inc. All rights reserved. Task Department Employees Managers Experts Partner Home Office BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Cisco Late Boom: Enter New Markets APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING Connect partner ERP systems directly to Cisco Increased Rev/Emp to over $700K Scale for new markets Every employee home connected to company Intranet NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT

© 2007 Cisco Systems, Inc. All rights reserved. Task Department Employees Managers Experts Partner Home Office BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Cisco Recovery: Realign Resources APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING Function X-functional Generated pre-tax profit of over $1B/Q Improve customer data and reporting quality Renew ERP foundation for future web- services Work anywhere with IP-Telephony + Wireless Consolidate telephony and storage resources Out-tasking Business Councils + Business Process Initiatives (BPOC) NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT Guests

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Cisco Buildout: Growth and Profitability APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT WORLD’S MOST PRODUCTIVE TECH EMPLOYEES Target: $1M per employee

© 2007 Cisco Systems, Inc. All rights reserved. A whole new level of Interaction: TelePresence

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Hyper-Integration NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING Governance Data Integrity Technology Roadmap

© 2007 Cisco Systems, Inc. All rights reserved. NETWORKED INFRASTRUCTURE CORESTORAGE SECURITYWIRELESS IPT APPLICATIONS AND SERVICES ERPE-SALES SUPPLY CHAIN MGMTE-LEARNING BUSINESS PROCESSES HR SALES MANUFACTURINGFINANCE BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Is Your Business Architecture Ready? NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING

© 2007 Cisco Systems, Inc. All rights reserved.

Waves of E-Business Transformation Wave 1 Wave 2 Wave 3 E-Commerce Employee Self-Service Customer Care Support E-Commerce Employee Self-Service Customer Care Support Virtual Manufacturing Virtual Close E-Sales E-Learning E-Hub E-Engineering & SCM E-Sales E-Learning E-Hub E-Engineering & SCM Wave 4 Web 2.0 and beyond…

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Case Study: Automotive Challenge APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING Limited online HR Basic web apps NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT Separate purchasing Diverse product devt No enterprise interconnectivity HYPER- INTEGRATION Department Experts Office

© 2007 Cisco Systems, Inc. All rights reserved. BUSINESS PROCESSES MANUFACTURING HR SALES FINANCE Case Study: Automotive Gains APPLICATIONS AND SERVICES ERP E-SALES SUPPLY CHAIN MGMT E-LEARNING 300k workers online E-learning, e-HR E-meetings, chat IP comms pilots IP video pilots Global procurement Design cycle halved New products up NETWORKED INFRASTRUCTURE CORESTORAGE SECURITY WIRELESS IPT Function Partner Managers

© 2007 Cisco Systems, Inc. All rights reserved. Virtualization underway… Processor Pool Storage Pool RDMA Services Virtualization Resources Virtualization Balances Services with Resources Services Available Everywhere, Always