Cisco Announces Formation of Internet Business Solutions Group
Helps Customers and the Industry Accelerate Adoption, Maximize Bottom-Line
Benefits of Internet-Based Solutions
SAN JOSE, Calif. -- December 15, 1998 -- Cisco Systems, Inc. today
announced the company has formed a new organization-the Internet Business Solutions Group
(IBSG). IBSG was established as a direct result of customers requesting Cisco to not only
share its networking infrastructure expertise, but also its own experiences at deploying
Empowering The Industry and Transferring Knowledge
Cisco is aware that deploying and managing Internet-based solutions requires changes in
business processes and may require assistance not only from Cisco, but also from
application vendors and system integration consulting firms. Cisco has thus instituted an
IBSG Knowledge Transfer program to enable multiple vendors to assist in implementing
web-based solutions for customers.
Early participants of the pilot program include leading consulting firms Cambridge Technology Partners,
Ernst & Young and KPMG. Through the IBSG
Knowledge Transfer program, Cisco is sharing best practices with these companies about its
own Internet-based business methodologies and applications. In turn, these companies have
selected Cisco as their strategic networking vendor in deploying Internet business
solutions and are incorporating Cisco methodologies into their own consulting practice
groups and services offerings.
"To be successful in today's fiercely competitive marketplace, businesses need an
edge," stated Chief Information Officer Peter Solvik. "At Cisco, Internet-based
business applications continue to provide that competitive edge and we are committed to
assisting our customers do the same."
IBSG, which is headquartered in San Jose, is comprised of IT professionals and
vertically-focused industry experts led by Vice President Sue Bostrom. The group reports
directly to CIO Pete Solvik. Cisco is working with customers and third parties to help
them understand and maximize the value that Internet-based business practices and
applications can bring to their organization. Today's announcement is a reflection of the
company's continued commitment and ongoing plans to ensure customer success in the
"There is no longer any doubt that Ecommerce is a viable and necessary way of
conducting business," said Kathryn Dzubeck, Executive Vice President of Communication
Network Architects, Inc., an industry analyst firm in Washington, D.C. "Every
corporation must look for the means of integrating this business reality into its basic IT
infrastructure. Accomplishing this using proven models, such as the business practices by
Cisco, tailored to the specific business needs of the organization, must be the goal of
every corporate executive," she said.
IBSG's Internet Business Initiatives
The IBSG is using several techniques to bring its wealth of Internet experiences in
developing and deploying Internet solutions to customers (such as Tandy, Texas Instruments
and Xerox, to name a few), developers and consultants. Methods include face-to-face
customer advisory sessions, multivendor-sponsored seminar series, and training sessions on
Internet-powered solution frameworks. The frameworks include detailed case studies, white
papers, reference network architectures, and recommended best practices for implementing
Internet-based applications in areas such as employee services, Internet commerce,
customer care, and supply chain management.
"Cisco is a great example of an Internet-based company," said Sue Bostrom,
Vice President of IBSG. "By tightly aligning IT with everyday business activities and
especially strategic customer-focused initiatives, Cisco has been able to achieve over
$500 million in financial contribution through gross margin increase and expense reduction
which is now being invested in critical areas such as research and development. Overall,
Internet-based applications have enabled us to dramatically increase revenue and greatly
improve customer satisfaction, employee productivity, and supplier relationships. The
Internet Business Solutions Group was formed to help customers reap similar benefits in
their businesses," she said.
Additional announcements will be forthcoming in early 1999.