© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 1 Collaboration: Ron Ricci Vice President, Corporate Positioning Cisco Ron Ricci Vice President, Corporate Positioning Cisco Collaboration is the Six Sigma of the 21 st Century Organization

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 2 Collaboration: Ron Ricci Vice President, Corporate Positioning Cisco Ron Ricci Vice President, Corporate Positioning Cisco Collaboration is the Six Sigma of the 21 st Century Organization John Chambers Chairman and CEO “If you agree with everything I say, I have clearly failed.”

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 3 Economic benefits of a large enterprise Economies of Scale Global Reach Global Brand Agility of a very small organization Decentralized Decision-Making Speed, Creativity, Flexibility – Closest to Customer Motivated Workforce Collaboration = Speed, Scale, Flexibility +

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 4 Collaboration = Speed, Scale, Flexibility Operational Excellence Agility of a very small organization Economic benefits of a large enterprise + Innovation +

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 5 Second Wave Productivity / Innovation Enabled By Collaboration / Web 2.0 2% 3% 5% 50%+ 5% 3% 4% 2% 1% Collaboration /

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 6 Power of Collaboration / Web 2.0 to Transform Organizations… Process Technology Culture

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 7 Power of Collaboration / Web 2.0 to Transform Organizations… Process Technology Culture

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 8 Power of Collaboration / Web 2.0 to Transform Organizations… Process Technology Culture

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 9 Power of Collaboration / Web 2.0 to Transform Organizations… Process Technology Culture

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 10 Web 2.0 Technologies Widgets Facebook Wikis Podcasts YouTube SMS/Text Vlogs Twitter Blogs TelePresence WebEx Pownce Forums Second Life

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 11 Widgets Facebook Wikis Podcasts YouTube SMS/Text Vlogs Twitter Blogs TelePresence WebEx Pownce Forums Second Life Web 2.0 Technologies

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 12 Collaborative Thinking and Behavior… RESILIENT PASSIVE- AGGRESSIVE Unhealthy 27% of Organizations Healthy 17% of Organizations Decision Making Opaque Transparent Source: Harvard Business Review

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 13 Cisco’s Market Adjacencies No Increase in Sr. Executive Time Executive Participation on Councils/Boards FY07 -> 2 Adjacencies FY08 -> 20 Adjacencies FY09 -> 30 Adjacencies FY07 -> 2 Adjacencies FY08 -> 20 Adjacencies FY09 -> 30 Adjacencies FY07 -> 60 Days FY08 -> 60 Days FY09 -> 60 Days FY07 -> 60 Days FY08 -> 60 Days FY09 -> 60 Days FY07 -> 100 Executives FY08 -> 500 Executives FY09 -> 750 Executives FY07 -> 100 Executives FY08 -> 500 Executives FY09 -> 750 Executives 10X (FY08) 1X 15X (FY09) 5X (FY08) 7.5X (FY09) Power of Collaboration / Web 2.0 to Transform Organizations…

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 14 Priority Cascade Process 17/20 Priorities thru OC No Priority to B-o-D w/out going thru OC 12 / 20 thru Board 17/20 Priorities thru OC No Priority to B-o-D w/out going thru OC 12 / 20 thru Board Executive Participation on Councils/Boards FY07 -> 100 Executives FY08 -> 500 Executives FY07 -> 100 Executives FY08 -> 500 Executives Cross-Company Priorities FY07 -> 2 Priorities FY08 -> 20 Priorities FY09 -> 28 Priorities FY07 -> 2 Priorities FY08 -> 20 Priorities FY09 -> 28 Priorities 10X No Increase in Sr. Executive Time FY07 -> 60 Days FY08 -> 60 Days FY07 -> 60 Days FY08 -> 60 Days 1X 13X Decision-Making Resource Alignment/ Flexibility Executive Collaboration: Productivity Gains

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 15 Cross-Company Priorities No Increase in Sr. Executive Time Executive Participation on Councils/Boards FY07 -> 2 Priorities FY08 -> 20 Priorities FY09 -> 28 Priorities FY07 -> 2 Priorities FY08 -> 20 Priorities FY09 -> 28 Priorities FY07 -> 60 Days FY08 -> 60 Days FY09 -> 60 Days FY07 -> 60 Days FY08 -> 60 Days FY09 -> 60 Days FY07 -> 100 Executives FY08 -> 500 Executives FY09 -> 750 Executives FY07 -> 100 Executives FY08 -> 500 Executives FY09 -> 750 Executives 10X (FY08) 1X 13X (FY09) 5X (FY08) 7.5X (FY09) November January 2009 $500 Million Re-Aligned To FY09 Priorities 90 Days February August 2008 $500 Million Re-Aligned To FY09 Priorities 180 Days Power of Collaboration / Web 2.0 to Transform Organizations…

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 16 Common Vocabulary: Increasing Executive Productivity Drive Revenue Expand Markets Disrupt Architectures 5+ Years Revenue Productivity Cost Avoidance Months 2-4 years Resources / Acquisitions to Sustain Differentiation Vision Strategy Execution Agreement Alignment Accountability Market Transition Sustainable Differentiation Results LessMore Degree of Collaboration

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 17 3,000+ Cisco Leaders: Virtual Strategic Leadership Offsite

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 18 Cisco’s Top 3,000 Leaders Virtual Strategic Leadership Offsite 90% reduction in time spent traveling giving back an average hours (a day) back to each attendee 90% reduction in carbon emissions – even with the use of our technology from 45 to 4 tons of carbon $2.8 million cost reduction due to reduced travel and hotel expenses Attendance/Entries24,387 Chats Accepted484 Moderated Chat Questions10,000+ WebEx Views9,844 Video Views48,350 Downloads35,683 Briefcase Adds11,081

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 19 Cisco’s Top 3,000 Leaders Virtual Strategic Leadership Offsite Attendance/Entries24,387 Chats Accepted484 Moderated Chat Questions10,000+ WebEx Views9,844 Video Views48,350 Downloads35,683 Briefcase Adds11,081 90% reduction in time spent traveling giving back an average hours (a day) back to each attendee 99% reduction in carbon emissions – even with the use of our technology from 45 to 4 tons of carbon $2.8 million cost reduction due to reduced travel and hotel expenses Alignment I understand the FY10 Vision, Strategy & Execution Plans 4.3/5.0

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 20 Collaboration: Ron Ricci Vice President, Corporate Positioning Cisco Ron Ricci Vice President, Corporate Positioning Cisco Collaboration is the Six Sigma of the 21 st Century Organization John Chambers Chairman and CEO “If you agree with everything I say, I have clearly failed.”

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential13020_10_2006_c6 21