1. © 2006 Cisco Systems, Inc. All rights reserved.IEEE, May 2007 1 Managing Partner Relationships: eCommerce in the Communications Industry Brian Clarke Cisco Systems, Inc.

2. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 2 What is electronic Commerce to us? Automation & Optimization of Business Process The integration of business processes between trading partners through seamless data exchange Integration to Back-end Systems Collaboration with External Partners Joint Effort – an Internal Partnership & Team of Teams

3. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 3 State of Cisco e-Commerce in FY07 We have 350+ trading partners We conduct eCommerce in 50+ processes We transact 30M+ electronic documents a Quarter We receive 1M+ hits on web services per Quarter We facilitate Cisco ~55% of bookings through web portal, ~40% bookings thru B2B (remainder fax, manual)

4. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 4 Dealing with Partners: Competing Challenges Partner Challenges Expectations due to size, importance Each partner is (or wants to be) different Partners often have existing investments with implied promises Partner Challenges Expectations due to size, importance Each partner is (or wants to be) different Partners often have existing investments with implied promises Our Challenges Contain IT costs Maintain architectural simplicity to allow for flexibility, scalability Drive partner effectiveness (sales channel, contract mfg, etc) Our Challenges Contain IT costs Maintain architectural simplicity to allow for flexibility, scalability Drive partner effectiveness (sales channel, contract mfg, etc) Constrained by need for high quality, high reliability, and security

5. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 5 Principle Based Approach 1.Clearly define Business Process to be used 2.Identify and classify interaction points Transactional Collaborative Reference 3.Select eCommerce solutions based on integration needs and value to both sides of partnership 4.Stick to your values

6. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 6 Transactional Integration Examples: –Purchase Order –Invoice –Work Order Requirements: –Complexity: can be quite high –Consistency across segment: high –Security: critical –Performance: depends on mode –Reliability: critical – within time limits Preferred Solution: Standards-based B2B Message Alternate Solution: Web Portal

7. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 7 Collaborative Integration Examples –Product Configuration –Logistics Management Requirements –Complexity can be high –Consistency across segment: low –Security: may vary –Performance: generally high –Reliability: may vary Preferred Solution Web Portal Alternate Solution: Web Service

8. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 8 Reference Integration Examples –Contract check –Serial # validation Requirements –Complexity generally low –Consistency across segment: low –Security: may vary –Performance: generally moderate –Reliability: may vary Preferred solution: Web Service Alternate solution: Web Portal

9. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 9 Lessons Learned Evolutionary process Executive education and sponsorship Business IT partnership Standards development process – requires perseverance and collaboration beyond competitive boundaries Coming together is the name of the game

10. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 10

11. © 2006 Cisco Systems, Inc. All rights reserved.IEEE May 07 11 E-Commerce scenario – Ordering Example Sales Purchasing ERP Fax 1. Fax Customer Service CiscoPartner ERP Sales Purchasing ERP 2. Web Ordering Tool 3. B2B Sales Purchasing ERP Medium / Low Volume High volume Degree of Integration & complexity High Low