Week 8: ROI Case Study: Cisco

In today’s blog I will be discussing about Cisco case study to discuss about the ROI in an Enterprise 2.0 project. There are different types of consequences of ROI (Return on Investment) and many organizations have been using enterprise 2.0 to build up a strong connection with the customers and to communicate with them as often as possible. Enterprise 2.0 can bring advantages and disadvantages to the company and also without knowing the value that the organization makes out of Enterprise 2.0 technology can make a huge different to the organization.

A bit about Return on Investment (ROI)

ROI helps to measure the company’s performances and evaluate the efficiency of the investment and compare the efficiency of a number of different investments (Investopedia, 2014).

Overview of the Cisco

Cisco System is an American Multinational Corporation based in San Jose, California; this helps to design, manufactures and sells networking equipments. Leonard Bosack, Sandy Lerner and Richard Troiano are the founders of Cisco System in San Francisco California, U.S in 1984.

Cisco Issue and Solution

            Cisco decided to implement a new social media strategies and digital marketing strategies in April 2012. After the analysis they found out that their social technologies were insufficient for their future. Management and the communication of social media monitoring were the concerns that they highlighted throughout the assessment period.  

So their solution was to use an application called Salesforce Radian6, which allows the user to manage their social campaigns at one place and it helps to analyse, engage and connect with customers more efficiency.  

 Tangible and Intangible Benefits of Cisco System

Tangible benefits can be expressed as the value of something that can be measured or assessed, such as, costs, sales and revenue.  

·         Staff productivity

·         Leadership and innovation

·         Sales opportunities

·         Creative agencies

 Intangible benefits can be expressed as it cannot be measured in monetary value. These intangible benefits may include employee satisfaction, commitment, communication with the employee and improved customer services.   

·         Reduced extra contact centre staff

·         Increased customer insights

·         Improved partner management

·         Engage with their partners

·         Cost effective environment

The formula to calculate the Return on Investment;      

                    Gain from Investment = the profit that gain from selling the investment

Have a look at this link to know how to calculate ROI in bit more detail.  

Nucleus Research Figure 

 
 Strength and Weakness

                 The main strength of Cisco system is that it allows to collaborate with the International    Telecommunication Union (ITU) to provide Internet education throughout the world. As well as, the main weakness of Cisco system is that large number of company acquisitions that allowed growing in multiple emerging markets (Nucleus Research, (2013).    

References

Investopedia. (2014). Return on investment - ROI. Retrieved from http://www.investopedia.com/terms/r/returnoninvestment.asp

Nucleus Research. (2013). ROI case study. Retrieved from http://www.salesforcemarketingcloud.com/wp-content/uploads/2013/08/Cisco-ROI.pdf?5c91d9  

Salesforce. (2013). The leading social media marketing suite. Retrieved from http://www.salesforcemarketingcloud.com/

Wikipedia. (2014). Cisco system. Retrieved from http://en.wikipedia.org/wiki/Cisco_Systems