Kip Compton, Cisco, Vice President, Internet of Things Systems & Software Group

Unleashing Innovation Summit

March 26, 2015

Cisco’s Culture of Innovation & the Internet of Things

@kipcompton

Innovation: Lifeblood of Industry Success

Cisco IBSG, 2011; Fortune 500, 1987, 2011. Olson and van Bever, Stall Points, 2008. Baselinemag.com, 2009.

“Innovate or Die”

Today’s Fortune 500 Companies

87% Companies Stall

Today’s Major Corporations

24% 25 Years Ago

Only11%

Recover

1/3 Survive Next 25 Years

The Internet is evolving. FAST.

Things

Internet of Everything

People Process

Data

More data in one year than in previous

5000

39 % of the world is connected

billion

connected things

13

80 % of business processes

Technology powers

Pace of Change

Point-of-Sale Print

Advertising Car Hotel

Bookstore Taxi Music

Vision of Future

Organization

Agility

Hyper-Awareness

Innovative

Innovation Then: Cisco’s First Router

Innovation Now: Cisco Spark

Many Types of Innovation

Technology

and Product

Solutions Process Business

Model

Selling Motion Tools Market

The tyranny of incremental improvement

Finding true north future vision

“Culture eats

strategy

for breakfast.” Peter Drucker

13 © 2015 Cisco and/or its affiliates. All rights reserved.

Innovation Cultures

Acquisition Innovation

Organic Innovation

Open Source

Innovation starts with culture; BUT there is NO innovation without Great People.

But People really care about WHAT they work on, HOW they work and WHERE they work.

A Culture of Innovation

Cisco Innovation

Academy

Training Employees to

Be Innovative

Innovation

Challenges &

Competitions

Inviting Employees to

Innovate

Cisco

Tech Fund

Incubation Programs

Provide Time, Space,

& Funding

Cisco

Pioneer Awards

Rewarding Innovation

Evolving Our Innovation Model

Internal Start-Ups

Customer Co-Innovation

IoT Developers Community

Cisco Investments

Integrate

Build

Buy Partner

Customer Co-Innovation

Facilitated Hackathons

Incubation of Emerging

Ideas

Prototyping Labs

Invest & Partner

Ground-breaking

Technology & Innovative Solutions

Cisco IoE Innovation Centers

Open

London • Transportation

• Energy

• Public Sector Berlin • Manufacturing

• Transportation

Rio • Smart+Connected

Communities

• Smart Grid

Songdo • Smart+Connected

Communities

• Public Sector

Tokyo • Manufacturing

• Public Sector Toronto • Smart+Connected

Communities

• Oil & Gas

Barcelona • Smart+Connected

Communities

• FOG

Announced

Cisco Investments 37 Funds 95 Companies 25 Countries

Cisco Entrepreneurs in Residence Program

Internet of Things

Big Data/Analytics

Smart Cities

Cloud

Security

Looking for Next Big Ideas in:

Go Live Quickly, Get Feedback

Combining Development & Operations

Stability & Velocity

Minimal Viable Product

DevOps

Fast

Innovation Simplified

User

Experience

Customer

Co-Innovation

Small,

Agile Teams

Agile Rapid/frequent deployment of hardware and software throughout product lifecycle

DevOps Extends Agile to include operational teams and engineers working together throughout product lifecycle

Waterfall Sequential development process for hardware and software, requiring completion of each phase in lifecycle

Higher

Quality

Engineering Transformation

Closing Thoughts

Embrace Heterogeneity

Think “Outside In”

Look for Learning Opportunities

Culture Is Key…

Can’t drive, but is a key enabler (or disabler)

Need to support existing businesses and new

The world has a bigger imagination than you do!

MVP, Agile, DevOps, customer co-development