CASE STUDY: CISCO SYSTEM INC. Essay

lake herring Systems, Inc. is a leading supplier of communications and computer networking produces, systems, and services. It was founded in 1984 by Len Bosack and Sandy Lerner. The companys product line includes routers, switches, remote rise to power devices, protocol translators, lucre services devices, and networking and network management software.cisco serves trey main market segments large organizations, including corporations, government entities, utilities, and educational institutions service providers, including Internet service providers, telephone and cable companies, and providers of wireless communications and small and medium-sized businesses whose ask include operating networks, connecting to the Internet, and connecting with business contributionners. Increasingly, lake herrings products are seem in the consumer marketplace. Cisco operates globally, deriving roughly 44 percent of its sales from overseas business.Challenges and Risks Faced in NPI1.Time-to- Market PressureCisco had to erect the unseasoned product extremely quickly There is only one family for Cisco to launch the Viking product to market with low embody. Otherwise, the market piece of ground might loss. However, it is about 3 to 5 years for Cisco to launch a advanced-end product. To meet such tighten schedule, it is imperative for Cisco group to perform a very collaborative operation and concurrent engineering in whole come forth chain and NPI phase2.Cost PressureBandwidth prices were forever and a day falling and customer expected continuous improvements in price-performance on their equipment. The opponent keeps intensive discount on price. Cisco had to implement most 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 squelch manufacturer like F oxconn requires Cisco monitor and cooperate with CM carefully.4.Outsourcing turnout of Complex MachinesIn order to put all the pieces together with the highest quality, reliableness and on-time performance required in the demanding service provider market. Cisco face the challenges inherent to outsourcing production of such a complex machine, and therefore Cisco would have to work closely with the contractor to reduce production and supply chain risks.5.Continuous Cost Down Pressure from Emerging 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 keeping the routers costs was important to its global success.