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1 M Fast forward into th e fu tu re Accelerating b u s ines s o p p o rtu nity and natio nal p ro s p erity Viktor Kovacs anaging D irecto r H u ngary & Ad riatic R egio n

2 C h a n g e t h e w o r l d» O n e c o n n e c t i o n a t a t i m e

3 Interconnected world C o n n e c te d th r o u g h p e o p le, w ith th e N e tw o r k a s th e P la tfo r m

4 G m CC onnected world rea li ti es H igh ly co m p etitiv e glo b al v alu e ch ains P ro d u ctiv ity gro w th rate V irtu aliz atio n & m o b ility th e d eath o f d is tance E m p o w ered u s er as cu s to m er and em p lo y ee lo b ally co llab o rativ e inno v atio n D em o grap h ic s h if ts and tim e-b o m b s C o m em p etitiv e erging ark ets

5 DD em og ra pp hh ii c cru nch E U A d u l t P op u l a t i on 1 00% 8 0% 6 0% 4 0% 2 0% m -1 6 % de c l ine m R et i red Workers 0% :1 2 :1 Source: The New York Times, April 4, 2004

6 TT hh e PP rodu cti vv ii ty Im pp era ti vv e 5 X T o s imp ly s t ay in p lac e, w o r k e r s w ill h av e t o p r o d u c e 2. 5 X mo r e p e r h o u r t h an t h e y d o t o d ay T o s u s t ain t h e r at e o f s t an d ar d o f liv in g imp r o v e me n t s, e ac h w o r k e r w ill h av e t o p r o d u c e 5 X mo r e t h an a w o r k e r t o d ay 4 X 3 X Source: C isco I B SG An a ly sis

7 Internet-Ena bb led PP rodu cti vv ii ty U. S. P ro d u ctiv ity G ro w th % * 1. 2 % 48% I n te rn e t C on trib u tion to P rod u ctivity

8 WW hh aa t DD ri vv es PP rodu cti vv ii ty?? C o n t r i b u t i o n t o L o n g -t e r m P r o d u c t i v i t y G r o w t h 3 7 % 1 1 % C ap ital I nv es tm ent I m p ro v ed L ab o r Q u ality 52% T ech no lo gical ch ange and o th er f acto rs E f f e c t i v e I T s o l u t i o n s d r i v e p r o d u c t i v i t y g a i n s D a t a : U S B urea u of L a b or St a t ist ics

9 G lob a l com p eti ti v enes s WEF Global Competitiveness I nd ex c ompar es nations 7 of th e 1 8 CEE c ou ntr ies ar e r ank ed in th e T op 5 0 ec onomies T h e oth er 1 1 ar e in th e top Cr oatia ac h ieved th e 5 7 th plac e in S er bia & M onteneg r o ar e new entr ants Cisco Confidential

10 8 D i m ens i ons of com p eti ti v enes s 1. C reating an I n f o r m a t i o n S o c i e t y f o r All 2. D ev elo p ing a E u ro p ean A r e a f o r I n n o v a t i o n, R es earch and D ev elo p m ent 3. L i b e r a l i z a t i o n 4. B u ild ing N e t w o r k I n d u s t r i e s 5. C reating E f f icient and I ntegrated F i n a n c i a l S e r v i c e s 6. I m p ro v ing th e E n t e r p r i s e E nv iro nm ent 7. I ncreas ing S o cial I nclu s io n: B ringing P eo p le to th e W o rk f o rce, U p g r a d i n g S k i l l s 8. E nh ancing S u s t a i n a b l e D e v e l o p m e n t The Lisbon Review 2006 W or l d E c onom ic F or u m

11 m m O O w w W W CC onnecti vv ii ty mm ore th aa n wi res C o n s u m e r s B u s i n e s s G o v e r n m e n t I n f r a s t r u c t u r e L L i in n e e s s B B r r o o a a d d b b a a n n d d P P C C s s B B u u s s i in n e e s s s s l li in n e e s s H H a a r r d d w w a a r r e e En En t te e r r p p r r i is s e e I IP P n n l li in n e e s s e e r r v v i ic c e e s s G G o o v v e e r r n n m m e e n n t t e e b b s s i it te e U s a g e & S k i l l s L L i it te e r r a a c c y y S S c c h h o o o o l li in n g g I In n t te e r r n n e e t t B B u u s s i in n e e s s s s o o b b i il le e E-c E-c o o m m m m e e r r c c e e Em Em p p l lo o y y e e e e s s k k i il ll ls s e e b b s s i it te e u u s s a a g g e e S S c c h h o o o o l ls s I IC C T T u u s s a a g g e e The Connectivity Scorecard, LECG, 2008

12 M E-G ov ernm ent CC onti nu uu mm o b i l i t y R e m o t e S e r v i c e D e l i v e r y C o -p r o d u c t i o n o f V a l u e S e l f - S e r v i c e S t a t i c I n f o r m a t i o n

13 FF ii li ng electroni c ta x x retu rns Percent of All Returns 5 0 % 4 0 % 3 0 % 2 0 % 1 0 % 0 % 46.8% Source: irs.gov/taxstats

14 HH ii gg hh er qq uu aa li ty && pp rodu cti vv ii ty ii n hh ea lth ca re R e mo t e I C U mo n it o r in g C o n n e c t e d h o s p it als T e le -r o b o t ic s u r g e r y Source: M ed sca pe

15 Transforming to improve competitiveness N e t w o r k A c a d e m i e s I n n o v a t i o n C e n t r e s C C I E F a c t o r i e s E n t r e p r e n e u r I n s t i t u t e V e n t u r e C a p i t a l F u n d S M B D e v e l o p m e n t P r o g r a m m e s C o n n e c t i n g D i g i t a l C i t i e s

16 NN etwork ss kk ii lls Ad v anced T ech no lo gy S k ills G ap C is co N etw o rk Acad em y P ro gram Less t ha n 8. 1 % G a p 8. 1 % -1 4 % G a p 1 4 % + G a p

17 MM aa xx ii mm ii ss ii ng PP rodu cti vv ii ty U. S. P ro d u ctiv ity G ro w th 3 5 % * % * 1. 2 % 48% I nternet C o ntrib u tio n to P ro d u ctiv ity

18 SS uu pp pp orti ng Entrep reneu ri aa l CC aa pp aa ci ty HH alf oo f f all nn ee w w bb uu ss in in ee ss ss ee s s ff ail ww it it hh in in tt hh e e ff ir ir ss t t ff ee w w yy ee ar ss BB uu ss in in ee ss s s ss kk ills an d d II CC T T ss oo lu lu tt io io n n in in tt ee gg rr at io io n n ar e e dd rr iv iv in in g g ff oo rr cc ee ss ff oo r r ee ff ff ic ic ie ie nn cc y y an d d pp rr oo dd uu cc tt iv iv it it y y in in SS MM BB ss SS uu cc cc ee ss ss ff uu l SS MM BB s s ar e e lar gg ee ss t t cc oo nn tt rr ib ib uu tt oo rr tt o o ee cc oo nn oo mic dd ee vv ee lo lo pp me nn tt CC uu rr rr ee nn t t lac k k oo f f pp rr ac tt ic ic al, ss tt ee pp -b yy -s tt ee p p bb uu ss in in ee ss s s an d d tt ee cc hh nn oo lo lo gg y y ee nn ab le le me nn t t pp rr oo gg rr ams is is in in hh ib ib it it in in g g ss uu ss tt ain ab le le SS MM B B gg rr oo ww tt hh

19 T h e ri s e of th e m i cro-m u lti na ti ona l " J u s t t h i n k m y l i t t l e s i x -p e r s o n o p e r a t i o n i s n o w a g l o b a l b u s i n e s s." N etw o rk as th e p latf o rm o f f s h o r e w o r k m e a n s s o m e t h i n g q u i t e d i f f e r e n t t o t h e m i c r o -m u l t i n a t i o n a l s. T h e s e c o m p a n i e s s i m p l y w o u l d n o t e x i s t w i t h o u t a c c e s s t o f o r e i g n l a b o r. Source: Technology Levels the Business Playing Field, H a l R V a r i a n, Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 19

20 N ew b u s i nes s m odels a n e w k i n d o f b u s i n e s s i s e m e r g i n g, o n e t h a t o p e n s i t s d o o r s t o t h e w o r l d ; c o -i n n o v a t e s w i t h e v e r y o n e, e s p e c i a l l y c u s t o m e r s h a r n e s s e s t h e p o w e r o f m a s s c o l l a b o r a t i o n, a n d b e h a v e s a s a t r u l y g l o b a l f i r m W ik ino m ics D o n T ap s co tt & Anth o ny D. W illiam s Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 2 0

21 M C onnect & colla b ora te f or b u s i nes s edg e CIP m ru o sp c to r to o m vr e e & d r s eg x a p m e br i le e n c e c on n e c te d today Cu stomer s Y ou BPI m ao rep tn i rn o eg v r es d e f f i c i e n c y c on n e c te d today Connec ting y ou r people and r esou r c P es ar tner f or s inc r eased pr od u c tivity, visibility and optimisation I Pm ie n p o i r p o l ve e & d Cp R ro e o o s d po u eu c rr ti c ve is ty c on n e c te d today Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 2 1

22 Inv olv e T ech nolog y b enef i ts f u nnel N e w b u s i n e s s & g r o w th C o n n e c te d O p e r a ti o n s T a c ti c a l s o l u ti o n s Goals Ex ec u tion V ision S tr ateg y I mplementation P r o g r e s s i v e i n n o v a ti o n C o n n e c te d s o l u ti o n s Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 2 2

23 m M m W A ct ea rly f or b u s i nes s edg e I P T elep h o n e inner Invention o b ile telep h o n e U b iq u ity I n tern et V alu e N ew tech no lo gy T elev is io n A ct n o Tw elep h o n e Electricity P otentia l f or A ct la ter c om p etitive a d va nta g e Accelerated p ace o f d ev elo p m ent eans les s tim e to react s o th e s lo w lo s e o u t h ig h co s t h ig h retu rn s ed iu m co s t h ig h retu rn s lo w co s t lo w retu rn s L o s er T im e CiscoE I -O v er v iew Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 2 3

24 CC hh aa nn gg e e tt hh e e ww oo rr ll d d One connection at a time

25 TT hh aa nk yy ou

26 Cisco S y stem s, I nc. A ll r ig h ts r eser v ed. Cisco Confidential 2 6

B y R us se ll E ri c Wr ig ht, DV M. M as te r of S ci en ce I n V et er in ar y Me di ca l Sc ie nc es. A pp ro ve d:

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