Leadreship And Change Management Cisco

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LEADERSHIP AND CHANGE MANAGEMENT-ASSIGNMENT Case Study-CISCO Q1. What are the innovations that you see in this case? Which of these would you consider as disruptive innovations? Answer: Cisco was founded as a router company by Stanford University computer scientists Sandy Lerner and Leonard. The major innovations that took place at Cisco were: • In 1991 Cisco launched an official Internet site, primarily dedicated to company and product information. It also set up electronic bulletin boards. By 1993, customers could download software updates, check manuals, and even email Cisco employees with questions. • Until 1993 all IT had been funded based on a company-wide budget of 0.75 percent of sales. A system was designed that delegated authority for IT expenditures to individual business units rather than centralized IT group. This was unconventional — most companies funded IT as a fixed percentage of revenues, and managed IT as a cost center, reporting to the CFO. The resource allocation system was named the Client Funded Model (CFM). (Here the “clients”are the individual business units, served by the central IT group.) The idea was that the CFM would allow business unit heads to evaluate IT spending on the basis of increasing sales and increasing customer satisfaction, rather than by the conventional metric of reducing costs. A new Customer Advocacy (CA) group, to which IT would report was designed. While business units would decide which projects would get funded, IT still had responsibility for determining how to implement them. • In response to the complaints of the sales force of being asked to perform mundane tasks by customers,in 1995, Cisco expanded the online offerings and allowed customers to reprint invoices, check the status of service orders, and

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