The Hindu Business Line : ‘Changing lives, with TelePresence’

John Chambers, Chairman and CEO of the $35-billion networking major Cisco Systems, has been around long enough to have seen a downturn in 2000, survive it and now talk about the ‘cusp’ of technological change. On a visit to India to announce a joint venture with Satyam for a healthcare initiative; another with Wipro on network-based IT solutions; and, an increase in headcount to 10,000 in India, Chambers responded to eWorld’s e-mail queries. Here, he chose to answer four questions among the several we sent:

What is the most important technology trend that will change our lives (the layperson’s) drastically in the next five years?

We believe that we are about to enter the second phase of the Internet, where this next major market transition will be driven by collaboration, enabled by networked Web 2.0 technologies.

This transition will not only transform the way we work and the way we live, but it will also drive productivity and innovation for the next decade. TelePresence is perhaps our greatest example of how the network is transforming the way we do business and how we interact, collaborate, and entertain. At some point in the near future, however, you will see technologies such as TelePresence come down in price point to be made available in the home.

Many technologies will be available in the next five years to dramatically change our lives, but I believe it won’t just be innovation in products or devices that will achieve this. I wouldn’t underestimate the importance of the role collaboration will play in the future — at work and in our personal lives. It has the power to change business models, the way organisations are managed, as well as how we socially interact with our friends and family. The network has certainly evolved beyond the traditional role of connectivity and in the next phase of the Internet, networks will combine data, voice, video and mobility in a way that is beyond the personal computer, to Internet telephones, cell-phones, PDAs, video game consoles, and of course, televisions. This phase of the Internet is all about innovation and productivity being centred on Web 2.0 and collaboration technologies such as Unified Communications and TelePresence. We believe that from a technology perspective, the network will become the platform for the delivery of applications and services to enable this collaboration.

Does Cisco have any plans to expand manufacturing in India?

The pilot is still very new, having been launched only this past March, and it is just too early for us to commit to expanding. We typically start off manufacturing operations very small, through our local partners, giving us an opportunity to maximise learning and to optimise competitiveness.

We would like to see some elements of the infrastructure in India develop more fully, however, and to be able to source more of our components in the country. We are hopeful we will see progress in these areas, going forward.

Cisco was among the first to notice signs of a slowdown in 2000. That probably helped you manage the crisis better. What parallels do you see now, in terms of excess investments in infrastructure, the mortgage meltdown, automobile industry slowing down, software spending being iffy in some sectors? Do you see any alarm signals?

This should in no way infer to how Cisco’s current quarter is going, but if you are watching what is going on in the global economy, you see that India, China, and many of the Emerging Market countries are representing the next wave of growth for the global economy. They have an opportunity to really capitalise on collaboration and networked Web 2.0 technologies. Other developed nations may, at times, experience slower growth rates, but it is the health of the overall global economy that has the opportunity to bring balance across countries and regions. We live in an increasingly globalised world and success will depend on the ability to spot transitions, and use disruptive innovation to leverage opportunities and address challenges presented by the market. No one knows for sure exactly how this game will play out.

Are you better prepared now in coping with a slowdown than you were in 2000? How?

Cisco has a strong track record of identifying inflection points in the market. If something in the business or the market signals a change, we will make the necessary decisions, quickly adjust and then move forward as one team.

I believe that this ability to adjust and move as one team is a unique differentiator. At one time, Cisco was very much a command and control type of culture. If I said turn right, the entire company would turn right. We are now undergoing a major transformation that will change not only how we interface to our customers but will also change our management style within the company.

We will transform from a command and control company to one built on collaboration and teamwork. It will not only help us to be more effective and productive, but will also enable us to build a process by which we can execute at speeds without duplication of effort. It won’t just be a part of our culture; it will be required in order to be able to exceed expectations on the more than twenty priorities we will be focused on this coming year.

preethij@thehindu.co.in

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