Cisco Systems, Inc.
Cisco’s networking hardware is a fundamental part of business, education, government and home communications. They have transformed how people communicate and collaborate over the Internet. An unexpected surge in demand for essential network products caught Cisco and its manufacturing partners off guard. Backorders and shortfalls abounded as sales attempted rebound, resulting in the new light of virtual inventory management.
The Evolution of Cisco
Cisco Systems – Company History
1984 – Cisco Systems is founded by computer scientists Len Bosack and Sandy Lerner.
1985 – Corporate logo developed and first system, Massbus-Ethernet is shipped.
1986 – Cisco launched its first routing innovation, AGS multi-protocol router.
1990 – Cisco stock goes public on NASDAQ.
1994 – Cisco is the first major supplier of the multi-protocol internetworking products to be awarded the ISO 9001 certification.
1997 – Cisco makes first appearance on Fortune 500 list at number 332.
1998 – Cisco is the first company to achieve market capitalization of $100 Billion in just 14 years.
2000 – Cisco is the most valuable company in the country.
2002 – Cisco shipped its one millionth IP telephone.
Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Cisco hardware, software, and service offerings are used to create Internet solutions so that individuals, companies, and countries have easy access to information—regardless of differences in time and place. In addition, the company is recognized as a pioneer in using the Internet for its own business practices, offering consulting services to help other organizations around the world.
The Problem
Cisco ordered large quantities of supplies well in advance ...
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Magal, S. R., PhD, & Word, J. (2009). Essentials of Business Processes and Information Systems. Hoboken, NJ: John Wiley & Sons.
Supply Chain Management: An International Journal. (1996). Retrieved April 29, 2014, from emeraldinsight.com website: http://www.emeraldinsight.com/journals.htm?articleid=1464659
The research for this report consisted of case studies of two commercial deployments of residential Internet access, each introduced in the spring of 1994:
Cisco is one of Americas greatest corporate success stories. Since shipping it’s first product in 1986, The company has grown into a global market leader that holds No.1 or No.2 market share in almost every market section in which it participates. Cisco went public in 1990 on the nasdaq stock market with annual revenues at $69 million in that year. But now their revenues are at $12.2 billion in fiscal 1999. Their revenues in the last four quarters are shown in the figure below.
first quarter of FY2012, prolonged, shortages in supplies due to capacity issues or other factors affecting the manufacturing process alter the price of these products. When there is a shortage in supplies the company may not be able to source required components in adequate quantities in a timely manner (Cisco Systems, Inc. SWOT Analysis, 2013).The company may be obligated to purchase components at higher than normal prices in the current market because of purchase commitments. When this happens its gross margin is affected. Supply chain issues also lead to delay in order fulfillment, affecting the revenues and margins of the company (Cisco Systems Inc. SWOT Analysis, 2013)
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
According to Temeng et al (2010), organizations historically have ignored the potential savings that occur as a result of proper inventory management, treating inventory as an important part and not as an asset requiring management. As a result, many inventory systems are based on arbitrary
3) Cisco’s reliance on information systems and the Internet was a great success until about November 2000 when there was the first 10% decline in sales. By December 15 Chambers realized that his ales were going down the drain. Finally in August 2001 Cisco underwent a makeover that changed the way that they depended upon the Internet and IS. Their forecasts were no longer FULLY based upon this information; rather they were used as in centralizing market analysis and finding new methods of technologies to network their company.
Cisco certification is a accomplished scientific boost certificate skeleton which is feature with ongoing by Cisco company for advancing Cisco technology, cultivating the repercussion management design again designing troubleshooting personnel. Candidates burden help the prevailed Cisco certificates as valid combat of bread change or company qualification.
The Internet is, quite literally, a network of networks. It is comprised of ten thousands of interconnected networks spanning the globe. The computers that form the Internet range from huge mainframes in research establishments to modest PCs in people's homes and offices. Despite the recent hype, the Internet is not a new phenomenon. Its roots lie in a collection of computers that were linked together in the 1970s to form the US Department of Defense's communications systems. Fearing the consequences of nuclear attack, there was no central computer holding vast amounts of data, rather the information was dispersed across thousands of machines. A set of rules, of protocols, known as TCP/IP was developed to allow disparate devices to work together. The original network has long since been upgraded and expanded and TCP/IP is now a "de facto" standard.
James Press, 2000). Furthermore, Cisco ventured into acquisitions strategically purchasing companies that would increase their technological advantage. Cisco’s main purpose is to “shape the future of the internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners” (The Network, 2016). In 2004, Cisco was part of Fortune’s magazine “100 Best Companies to Work For”. At number fifty-five (55) it provides employees with competitive compensation, LEED certified health centers, and convenient onsite child care centers.
More than 75 percent of North American and 50 percent of European backbone Internet traffic travels across Nortel optical networking equipment. Now Nortel Networks helping service providers deliver the unconstrained access and high bandwidth multimedia content second Wave of eBusiness customers demand.
To understand the current global market of the internet, one must first understand how the internet was built. The internet initially started out as the APARNET in the 1960’s, it was set up by the Advanced Research Projects Agency (ARPA) in September of 1969. ARPA created ARPANET as a way to mobilize research sources in order to build up technological military superiority over the Soviet Union. The original goal was to create an interactive computer network, after this was successful. Scientists wanted to find a way to make the connection to other computers; this created the new concept of a “network of networks” (Castells, 2001: p. 11).
In 1973, the U.S. Defense Advanced Research Projects Agency (DARPA) initiated a research program to investigate techniques and technologies for interlinking packet networks of various kinds. The objective was to develop communication protocols which would allow networked computers to communicate transparently across multiple, linked packet networks. This was called the Internetting project and the system of networks which emerged from the research was known as the "Internet." The system of protocols which was developed over the course of this research effort became known as the TCP/IP Protocol Suite, after the two initial protocols developed: Transmission Control Protocol (TCP) and Internet Protocol (IP). (I got my information for the history of the internet at www.isoc.org In 1986, the U.S. National Science Foundation (NSF) initiated the development of the NSFNET which, today, provides a major backbone communication service for the Internet. With its 45 megabit per second facilities, the NSFNET carries on the order of 12 billion packets per month between the networks it links. The National Aeronautics and Space Administration (NASA) and the U.S. Department of Energy contributed additional backbone facilities in the form of the NSINET and ESNET respectively. In Europe, major international backbones such as NORDUNET and others provide connectivity to over one hundred thousand computers on a large number of networks. Commercial network providers in the U.S. and Europe are beginning to offer Internet backbone and access support on a competitive basis to any interested parties.
Working with Internet does not mean just browsing www and sending and receiving e-mails. The Basic Structure of the Internet was developed through last 30 years of existence of the Internet. The Internet is a heterogeneous worldwide network consisting of a large number of host computers and local area networks. The Internet uses the TCP/IP suite of protocols. This allows the integration of a large number of different computers into one single network with highly efficient communication between them. This way, the user can access information on all kinds of host computers from a desktop PC, Macintosh, or whatever he/she has available. TCP/IP, the communication standard underlying the Internet, originates from work done at the US-Department of Defense in the late 1960s. The first version of the Internet was built in 1969 and consisted of just four computers. In 1982 a set of specifications and protocols have been implemented, which became known as TCP/IP in reference to their two major elements, the "Transmission Control Protocol" and the "Internet Protocol". The development and implementation of TCP/IP stimulated a massive growth process for the Internet. "By late 1987 it was estimated that the growth had reached 15% per month and remained high for the following two years. By 1990, the connected Internet included over 3,000 active networks, over 3,000 active networks, and over 200,000 computers. By January 1992 the number of hosts on the Internet was 727,000, doubling about every 7 months. Various groups of users are connected to the Internet: universities and other educational institutions, government agencies, the military, and at an increasing number private businesses.
This all interested the APRA enough to fund the research and development of an experimental computer network with hopes of demonstrating the feasibility of remote computer operation from the battlefield. Vinton Cerf also called "The Father of the Internet", a graduate student working at UCLA began to take interest in the 4 node APRAnet, and in 1973 developed the first TCP/IP (Transmission Control Protocol/Internet Protocol) software. (Leiner, 4). TCP/IP software converts messages into streams, transmits them acro...
Perhaps one of the greatest inventions of out time is the Internet. Without a doubt, the net has had a profound effect on almost every aspect of our lives. The formation of the Internet has changed the way we do business, communicate, entertain, retrieve information, and even educate ourselves. Nevertheless, the Internet might have never materialized if it had not been for some innovated thinkers from the Advanced Research Project Agency, who created "ARPANET." In collaboration with several educational and research institutions, the agency created the packet-switching technologies that form the basis of the Internet today.