Harvard Case - Made in India: Cisco Reroutes Innovation
"Made in India: Cisco Reroutes Innovation" Harvard business case study is written by Srinivas K. Reddy, Havovi Joshi. It deals with the challenges in the field of Information Technology. The case study is 13 page(s) long and it was first published on : May 14, 2013
At Fern Fort University, we recommend that Cisco India adopt a multifaceted approach to leverage its "Made in India" initiative for sustained growth and innovation. This strategy should focus on building a robust ecosystem of local talent, fostering collaborative innovation, and capitalizing on India's unique market opportunities.
2. Background
The case study focuses on Cisco India's 'Made in India' initiative, launched in 2015 to tap into the country's burgeoning tech talent pool and growing domestic market. Cisco aimed to establish a thriving manufacturing and innovation hub in India, contributing to the country's economic development while strengthening its own competitive position. However, challenges emerged, including difficulties in scaling up operations, securing skilled personnel, and navigating the complexities of the Indian market.
The key protagonists are:
- Cisco India leadership: Responsible for implementing the 'Made in India' strategy and navigating its challenges.
- Indian government: A key stakeholder, providing incentives and support for the initiative.
- Local suppliers and partners: Crucial for Cisco's success in building a robust ecosystem in India.
- Indian talent pool: The core resource for Cisco's innovation and growth ambitions.
3. Analysis of the Case Study
This case study can be analyzed through the lens of strategic frameworks such as:
Porter's Five Forces:
- Threat of new entrants: High, due to India's dynamic tech landscape and ease of entry for startups.
- Bargaining power of buyers: Moderate, as Cisco faces competition from other global IT giants.
- Bargaining power of suppliers: Moderate, as Cisco relies on local suppliers for manufacturing and services.
- Threat of substitutes: High, due to the rapid evolution of technology and emergence of new solutions.
- Competitive rivalry: High, as Cisco competes with established players and emerging startups in the Indian market.
Resource-Based View:
- Core competencies: Cisco possesses strong technological expertise, global brand recognition, and a well-established supply chain.
- Value chain analysis: Cisco's 'Made in India' initiative aims to optimize its value chain by leveraging local resources, enhancing manufacturing capabilities, and developing innovative solutions tailored to the Indian market.
SWOT Analysis:
- Strengths: Strong brand, global reach, technological expertise, access to a large talent pool.
- Weaknesses: Challenges in scaling operations, difficulty in securing skilled personnel, navigating complex regulatory environment.
- Opportunities: Growing Indian market, government support for technology initiatives, potential for disruptive innovation.
- Threats: Competition from local and global players, rapid technological advancements, economic volatility.
4. Recommendations
Cisco India should implement the following recommendations:
1. Build a Robust Ecosystem:
- Talent Development: Establish dedicated training programs and partnerships with educational institutions to develop a pipeline of skilled engineers, software developers, and IT professionals.
- Supplier Collaboration: Foster strong relationships with local suppliers, providing them with technical expertise and support to improve their capabilities and ensure consistent quality.
- Innovation Hubs: Create dedicated innovation hubs in key locations across India, fostering collaboration between Cisco engineers, researchers, and local startups.
2. Leverage India's Market Opportunities:
- Focus on Local Needs: Develop products and solutions tailored to the specific needs and challenges of the Indian market, such as affordable internet access, digital literacy, and smart city initiatives.
- Embrace Digital Transformation: Capitalize on India's rapid adoption of digital technologies, offering solutions in areas like cloud computing, cybersecurity, and data analytics.
- Partnerships with Government: Collaborate with government agencies to leverage public-private partnerships, drive digital inclusion, and contribute to national development initiatives.
3. Foster Collaborative Innovation:
- Open Innovation: Embrace open innovation models, partnering with universities, research institutions, and startups to co-create solutions and accelerate product development.
- Crowdsourcing: Utilize crowdsourcing platforms to tap into the collective intelligence of the Indian tech community, generating new ideas and solutions.
- Incubator Programs: Establish incubator programs to support promising startups in the IT and networking sectors, providing mentorship, funding, and access to Cisco's resources.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Leveraging local talent and fostering innovation aligns with Cisco's core competencies and mission to connect the world.
- External customers and internal clients: Tailoring solutions to the Indian market and collaborating with local partners will enhance customer satisfaction and create new business opportunities.
- Competitors: Building a robust ecosystem and embracing disruptive innovation will help Cisco stay ahead of the competition in the dynamic Indian market.
- Attractiveness: The potential for significant growth, increased market share, and positive social impact makes this strategy highly attractive.
6. Conclusion
Cisco India's 'Made in India' initiative holds immense potential for both the company and the Indian economy. By adopting a strategic approach that focuses on building a robust ecosystem, leveraging market opportunities, and fostering collaborative innovation, Cisco can successfully navigate the challenges and achieve sustained growth in India.
7. Discussion
Other Alternatives:
- Outsourcing: Cisco could focus solely on outsourcing manufacturing and development to Indian companies, potentially reducing costs but sacrificing control over quality and innovation.
- Acquisition: Cisco could acquire existing Indian tech companies, gaining immediate access to local expertise and market knowledge, but potentially facing integration challenges.
Risks and Key Assumptions:
- Talent Acquisition: Securing and retaining skilled personnel in a competitive market remains a key risk.
- Regulatory Environment: Navigating complex regulations and policies in India could pose challenges.
- Economic Volatility: Economic fluctuations could impact demand for Cisco's products and services.
Options Grid:
| Option | Benefits | Risks |
|---|---|---|
| Robust Ecosystem | Strong talent pipeline, improved supplier capabilities, enhanced innovation | High investment, time-consuming |
| Leverage Market Opportunities | Increased market share, tailored solutions, social impact | Competition, rapid technological changes |
| Collaborative Innovation | Accelerated product development, access to new ideas, cost-effective solutions | Coordination challenges, intellectual property protection |
8. Next Steps
- Establish a dedicated team: Form a cross-functional team to oversee the implementation of the recommendations.
- Develop a detailed plan: Create a comprehensive plan outlining specific actions, timelines, and resource allocation.
- Pilot projects: Conduct pilot projects to test and refine the proposed strategies.
- Monitor and evaluate: Regularly monitor progress and adjust the plan as needed.
By taking these steps, Cisco India can transform its 'Made in India' initiative into a powerful engine for growth, innovation, and social impact.
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Case Description
This case describes the strategy adopted by Cisco India to develop the Advanced Services Router 901 ('ASR 901'). It is part of a larger strategy by Cisco headquarters to understand what could be built in the developing markets for the developing markets, as opposed to products conceived with only developed markets as the focus. Within a time frame of a few months, a team forms to develop the ASR 901 completely from scratch - from conception to launch - in Bangalore, India. It then goes on to win several awards, and interestingly, orders begin streaming in from not just the developing economies, as had been expected, but also from top tier customers in the developed markets. ASR 901 is undoubtedly a milestone in Cisco India's indigenous innovation initiatives. Can the lessons learnt while progressing through the several stages of product development be applied to similar new initiatives?
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