CASE STUDY: CISCO SYSTEM INC. Essay

lake herring Systems, Inc. is a leading supplier of communications and computer networking products, systems, and assistances. It was founded in 1984 by Len Bosack and Sandy Lerner. The companys product line includes routers, switches, external access devices, protocol translators, Internet services devices, and networking and network management softw atomic number 18. lake herring serves three main mart segments large organizations, including corporations, government entities, utilities, and educational institutions service providers, including Internet service providers, teleph hotshot and cable companies, and providers of wireless communications and clarified and medium-sized businesses whose needs include operating networks, connecting to the Internet, and connecting with business partners. Increasingly, lake herrings products are appearing in the consumer marketplace. lake herring operates globally, deriving roughly 44 part of its sales from overseas business.Challenges a nd Risks Faced in NPI1.Time-to- commercialize constrictCisco had to establish the new product extremely quickly There is only one year for Cisco to launch the Viking product to market with low greet. 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 is imperative for Cisco team to perform a very collaborative operation and concurrent engineering in whole supply chain and NPI phase2.Cost PressureBandwidth 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 about cost effective-supply chain at launch and product design.3.Immense Technical complexityThe product router contained about 300,000 components, about 30 times more than in a small business router. How to successfully launch such a high complexity product in a low cost contract manufacturer like Foxconn requires Cisco monitor and cooperate with CM carefully.4.Outsourcing Production of Complex MachinesIn order to put all the pieces together with the highest quality, reliability and on-time performance required in the demanding service provider market. Cisco faced the challenges inherent to outsourcing output of such a complex machine, and wherefore Cisco would have to work closely with the contractor to reduce production and supply chain risks.5.Continuous Cost Down Pressure from emergent MarketCisco needed to ensure that router would be attractive to service providers worldwide. Emerging markets were the fastest-growing part of Ciscos business, which needed lower cost, so retentiveness the routers costs was important to its global success.