Expansion of Innovation and Education Commitments
-- Memorandum of Understanding (MOU) with China's National Development
and Reform Commission (NDRC) with a focus on next-generation Internet and
green research and development (R&D) programs, leadership training, best
practice sharing and business development investments
-- MOU with China's Ministry of Commerce (MOFCOM), aimed at furthering
Cisco's commitment to technology innovation and providing assistance to
Chinese businesses in the development of Information Technology (IT) and
business process outsource capabilities within the country
-- Strategic Cooperation with Peking University to create the 'Guanghua
Cisco Leadership Institute' for leadership development (see separate
announcement)
Broadened Focus on Corporate Strategy
-- The establishment of the 'Cisco China Strategy Board', a cross-
functional executive board of senior leaders across Cisco's global
business, to evolve and drive the vision and strategy for Cisco in China
-- The appointment of Jim Sherriff, Cisco senior vice president of global
operations, to a newly formed position of chairman, Cisco China
"The next stage of our strategy for China reflects the country's importance
to Cisco's global growth strategy and to our long-term business model,
built upon next-generation innovation in collaboration and Web 2.0
technologies," said Cisco chairman and chief executive officer John
Chambers. "Cisco's public-private collaboration within China not only helps
accelerate these business efforts, but also helps the 1.3 billion people
and growing number of entrepreneurs within the country gain access to
social and economic opportunities afforded by the Internet."
Public-Private Collaboration for Economic and Societal Development
Public-private collaboration is a significant part of Cisco's innovation
and sustainability initiative in China, in alignment with the country's
long-term economic, societal and environmental goals. As part of Chambers'
visit to the country this week, Cisco is also signing memoranda of
understanding with China's National Development and Reform Commission
(NDRC) and China's Ministry of Commerce (MOFCOM).
The memorandum between Cisco and NDRC aims to broaden and deepen
cooperation in the areas of manufacturing and service outsourcing,
next-generation Internet, venture investment, training and development, as
well as environmentally focused research and development including energy
efficiency, emission reduction and network-based green urban development.
Under the memorandum between Cisco and MOFCOM, Cisco will work with the
ministry to help implement the Thousand-Hundred-Ten Project for China's
business process operations industry. Through this program, Cisco will
provide training to improve the skills of employees of China's business
process operations companies. By helping to build a strong talent pool,
Cisco is contributing to a critical step in the development of this
industry, with the goal of transitioning portions of Cisco's global
business process services to the country over the next three to five years.
Cisco and Peking University -- Investing in Students and Future Leaders
Cisco is cooperating with Peking University to create the 'Guanghua Cisco
Leadership Institute' to develop talent in China to meet the needs of
government and global enterprise leaders, including the NDRC. The
institute focuses on creating research and executive development programs
based on a curriculum of teamwork, collaboration and Web 2.0 technologies,
thus fostering leadership for the Chinese globalization experience.
Representing a US $20 million investment from Cisco over the next three to
five years, the Institute of Leadership will focus on research, executive
training and action learning, seminars and forums as well as the
implementation of information and communications technologies, unified
communications, Web 2.0 and Cisco TelePresence technologies.
Cisco China Strategy Board -- Chairman, Cisco China
Formally launched in early 2008 and overseen by Chambers, Cisco China
Strategy Board is a cross-functional executive board of senior leaders
across the company's global business aligning to drive Cisco's long-term
corporate initiatives within the country. This includes oversight of the
multi-year initiative in China, exploring further opportunities in
public-private collaboration for social and economic development, Cisco's
China business operations strategy, as well as small to medium-sized
business and consumer IT market development programs.
In his newly appointed role as chairman, Cisco China, senior vice president
of Global Operations Jim Sherriff is responsible for implementing the
company's vision and strategy for China and representing Cisco's global
business operations through direct engagement within the country. Sherriff
and executive vice president of Global Operations Randy Pond will co-chair
the Cisco China Strategy Board, which also includes Owen Chan, president of
Cisco Asia Pacific and Thomas Lam, president of Cisco China.
"One of the key drivers of Cisco's differentiated strategy is our ability
to capture market transitions. China is very clearly a market in a dynamic
state of transition. As we continue to evolve our innovation, education
and sustainability programs within China, we are also focused on our goal
of making China one of the company's top three world markets in the next
five years," continued Chambers.
Cisco first established operations in China in 1994 and now employs more
than 3,000 staff in sales, customer support and service, research and
development, business process outsourcing, IT outsourcing, Cisco
Capital™ programs, and manufacturing. The company has 12 offices in
China, a major R&D facility in Shanghai, Scientific Atlanta R&D and
manufacturing facilities and several development centers supporting WebEx,
which Cisco acquired in March 2007.
About Cisco Systems
Cisco (Contact Information: Contact: Karen Chu Cisco +852 2588 3292 karenchu@cisco.com Marc Musgrove Cisco +1 408 525 6320 mmusgrov@cisco.com