INTEGRATIVE CASE $5\mathrm{.}0$

Cisco Sy $\text{'}$ms: Evolution of Structure

The evolution of Cisco from a university campus, ir $k.$ ing solution devised by the husband and wife Stam team of Len Bosuck and Sandy Lemer to a global technology leader has been a dynamic process. The speed of technological innovation means that managers are already talking about the "next new thing" during the launch of each new product or service. Parallel with the rapid technological cvolution at Cisco are the changes in organization structure necessary to meet the managenent and decision$-$making needs of the corporate giant.

Growth

Faced with the challenge of devising a system that would allow Stanford University compurer networks to talk to each other, Bosack and Lerner created a multi$-$protocol rourer to break through the communication barricrs. The perceived need by many organizations for increasingly sophisticated routers and related products led to the founding of the Silicon Valley hi$-$tech powerhouse Cisco Systems in $1984.$ As a start$-$up company, Cisco had a vision, eight employees, and a host of financial challenges. The carly days were financed by credit cards; home mortgages, and periods when payrolls were delayed, bur in $1986$ Cisco shipped its first router. The company turned to a venture capitalist, Sequoia Capital, which moved Cisco toward financial stability, but founders Bosack and Lerner were forced out. Cisco quickly became established as a viable business and, arned with a growing reputation in the industry, went public in $1990.$

A leader in the development of routers, Cisco faced new challenges with the emergence of competitors for rapid, less expensive technology. Facing the threar of los$-$

starr$-$up company the power of Cisco's financial resources, manufacturing, and distribution channels. Cisco's reputs. in for finding and bringing into the fold the best of the ier companies reminded admirers and critics alike of the i$.$ the notorious alien being from Star Trek fame that absen$.$ Ispecies as it expanded across the universe.

As Ciscy anded fito wireless devices for home $($Linksys$)$ and bus data center switching systems, networking cquipment, mmunications gear, and network security apparatus, visionar: John Chambers was brought in as CEO. One of a generatic. if gurus who championed the power and practical solutions $-$ chnology, Chambers expanded the company into advanced inologies, including digital voice and data, web$-$confereucing, and more diverse security products. By $2000,$ Cisco had attained a brief designation as the world's most valuable company.

C$$sco $1$

During the early period that would later become desig. nated as Cisco $1,$ the organization had created a threedivision organization structure. The three self$-$contained product divisions were each focused on a distinct customer segment: Service Products $($such as AT&T$),$ Enterprises $($usually multinational corporations$),$ and Small to MidSize Commercial Companies. Each of the three divisions was responsible for its own engineering, manufacturing, and marketing activities. Goals were established by each division's managers to develop products and services customized to address the specific and changing needs within that customer group.

With corporate headquarters in San Jose and a dominance of US$,$ sales. Gisco foumul that is could minimize