Cisco Systems`

1) The relationship between information systems, Internet Technology and Cisco’s business strategy was quite intriguing. Cisco’s company worked hand in hand directly with the Internet and their IS system was supported by almost 45% by digital means. Their sales were all Internet driven by almost half of their production.

2) Cisco is a digital firm in the many senses, while John Chambers will adamantly defer the fact that their company relies directly on software (digital) it is my opinion that from viewing on the proceedings it appears to all eyes that their structure is almost 75% if not more digital. Their training, applications, update forms, orders and accessibility options are all based through the Internet or some digital means.

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.

4) Cisco reacted so slowly to the deteriorating economic condition because they had continued to aggressively expand and they had also increased their market shares. What really influenced the way Cisco responded to the economic condition was the decline of 2/3’s in the technological advances in the NASDAQ. While other companies were falling around them Cisco stood strong. They continued to pour themselves heart and soul into their company. Nortel Networks – Cisco’s rival fell largely in the market, and they continued to expand.

5) I believe that Chambers and Cisco could/should have done would have been to pull back on their large “all-out” pushing the production “buck”. If Chambers had not have pushed the 600 million dollar contracts for orders of unmade parts and materials I believe that the company would have held stronger.