Cisco to recast operations, drive innovations for emerging mkts

MUMBAI: In one of the biggest changes since networking major Cisco set up a second global headquarters in India, the multinational is reorganising its operations along industry lines. The restructuring will be global and will happen in a phased manner across different regions, but will be especially significant to India, where it is being implemented this month, because of the proximity to its second global headquarters in Bangalore.

The restructuring of the India sales arm along industry lines will help Cisco India pioneer more relevant and greater number of innovations for emerging economies. “If there is a business problem, the India arm will work with the globalisation centre east (GCE) to check if there are matching capabilities that exist,” said Naresh Wadhwa, president and country manager, Cisco India. The second global headquarters, or Cisco’s (GCE) as it is known, drives innovations for emerging economies from India.

Since it was set up in 2007, the GCE has incubated and piloted several initiatives such as smart connected communities and smart connected healthcare and education from India. The smart connected healthcare initiative being piloted with Apollo Hospitals aims to drive down healthcare costs to one dollar a month and increase reach in rural areas through use of tele-medicine. About 20% of Cisco’s top talent, including its chief globalisation officer Wim Elfrink, who chairs the Emerging Countries Council board, are based out of the GCE.

Mr Wadhwa, who has been leading India operations since 15 years, says having the GCE is similar to having a kitchen where dishes can be customised and tailored to suit local palate. “Emerging economies face similar problems. We can recook and reheat because we have a kitchen. We couldn’t do that earlier," he said. The realignment of India sales arm will help to tap the company’s portfolio of existing solutions more effectively by adapting them to local business problems unique to each industry, as well as come up with new solutions to business problems where capabilities don’t already exist.

“How you approach a problem is very different from industry to industry although the technology may be the same. Instead of selling networking products, we will be selling business solutions,” said Mr Wadhwa. For instance, Cisco’s learning initiative is now being adapted to banks and IT services firms. “Our new organisation structure will require a knowledge base that is different from product knowledge. It will drive technology in areas that have traditionally been untouched” he added.

In auto, for instance, Cisco’s India arm is working on networked automobiles and next generation automobiles, where about 25-30 discrete systems in a car could be integrated. In building automation, there are benefits to be had from integrating about 90-100 discrete systems, Mr Wadhwa said.