Cisco Systems, Inc.: Collaborating on New Product Introduction

705 Words Sep 14th, 2010 3 Pages
1. What are the challenges faced by Cisco in introducing a major product like Viking?
1-1 Time to market pressure
There is only one year for Cisco to launch the Viking product to market with low cost. Otherwise, the market share might loss. However, it is about 3 to 5 years for Cisco to launch a high-end product. To meet such tighten schedule, it’s imperative for Cisco team to perform a very collaborative operation and concurrent engineering in whole supply chain and NPI phase
1-2 Cost pressure
Bandwidth prices were constantly falling and customer expected continuous improvements in price-performance on their equipment. The competitor keeps intensive discount on price. Cisco had to implement most cost effective-supply chain at launch
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-Develop Foxcoon successfully can reduce the cost significantly from day one. This is big saving approach compare against transferring from US. Transferring approach initiate a high cost at beginning then work hard on cost reduction gradually which decrease Cisco competence on cost.
-Foxconn success in Viking production enables Cisco cost down in future high quality and high end product launch in Foxcoon with lower cost and shorten lead time.
-Foxconn highly vertical integration gives lots of flexibility (fast response in schedule, capacity, synchronization, etc) in Cisco supply chain management.
-Foxcoon’s strong bargain power in components and high economies of scale can support Cisco sustainable with lower cost.
- Foxconn will be developed from the beginning as one more the high-end products manufacturers, able to understand Cisco project management from inside the organization and become part in the portfolio of manufacturers making more flexible Cisco’s supply chain, because all their partners will be capable of manufacturing all Cisco’s products.

3. What should Cisco do to ensure successful development and launch of the Viking router?
Cope with shorter lead time need highly collaboration internally and externally with partner like Foxconn.
Internally, Cisco need handle cross functional teams and multiple sites

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