Collaboration: The Cure for a Rollercoaster Economy
Today, we’re featuring a guest post from Rick Hutley, a vice president in Cisco’s global strategic consulting arm, IBSG. Rick advises business leaders in every industry about how technology—and more often than not, Intelligent Network technology—can help businesses achieve their goals.
As we embark on yet another economic rollercoaster, the goal of dramatically reducing costs while simultaneously growing revenues and market share seems impossible to attain. Yet, this is what businesses must do to survive.
In my opinion, the answer to this dichotomy is “collaboration”—enabling your workforce to be more effective at significantly lower costs. Collaboration can deliver significant benefits. Cisco®, for example, realized $1.4 billion in collaboration benefits in FY2010, up from $1.1 billion in FY2009. This was achieved across 27 initiatives at an annual cost of only $128 million.
These findings are detailed in a report titled “Economics of Collaboration at Cisco” by the Cisco Internet Business Solutions Group (IBSG), with analysis from its Research & Economics Practice. While every company is different, the following Cisco examples from this report offer a compelling business case for adopting similar initiatives where you work.
- Business travel optimization to enable greater collaboration across regions while containing travel costs resulted in expense savings of $519 million per year and time savings of $140 million per year.
- Telecommuting initiatives to increase productivity, tap global talent, and improve sustainability resulted in time savings of $320 million per year for Cisco and commute cost savings of $49 million per year for employees.
- Connected Workplace, Cisco’s solution for optimizing knowledge worker productivity in the office, generated a 43 percent reduction in space per worker, real estate savings of $33 million per year, and energy savings of $2 million per year.
- Next-generation Unified Communications resulted in salesforce time savings of $27 million per year and improved customer service.
- Faster time-to-market capabilities with improved remote collaboration accelerated the introduction of Cisco’s ASR 9000, increasing margins by $90 million, reducing time to market from 4 to 3 years, and lowering R&D costs by $70 million.
To achieve these results, Cisco employed much of its own technology. Cisco TelePresence®, for example, powers a new way of working that allows us to be more productive through face-to-face, two-way video collaboration. Cisco WebEx® enables us to hold highly effective team meetings by sharing information whether we are using a desktop computer, laptop, or smartphone. Cisco Unified Communications links our phone, email, and other communications systems so we never have to miss a call or wait until a colleague gets back to his or her desk to respond to a critical email. And finally, Cisco QuadTM provides a single, integrated experience where individuals, teams, and communities connect, share, learn, and collaborate.
In today’s volatile economy, it’s clear we must learn how to collaborate better. Fortunately, technologies like those employed by Cisco can give your company an edge by improving competitiveness, innovation, and, most important, business results.