Phil Smith, chief executive of network equipment manufacturer Cisco’s UK and Ireland subsidiary, took to the stage at the Global Corporate Venturing Symposium earlier today to discuss how the company is adapting to a changing industry.
According to Smith, Cisco, like all traditional companies, is facing the threat of more agile startups that are highly disruptive. To stay ahead in the industry, Cisco has adopted a “build, buy, partner, integrate” model.
The company spends $5.9bn on internal research and development each year. Cisco has also made more than 160 acquisitions over the past couple of decades, which now collectively generate a third of the company’s revenue.
Smith said Cisco is keen to help create ecosystems, and has set up innovation centres around the world that focus on the strength of their respective geographies, such as agriculture in Australia and manufacturing in Germany.
The CEO underlined how one particular sector, the internet of things, is poised to be a $19 trillion industry and disrupt a wide range of companies.
In conclusion, Smith explained that users are at the heart of the issue, and named ride hailing app Uber as an example of a disruptive company that has made a big impact by giving customers what they want. If traditional taxi companies complain about the competition but still refuse to accept debit cards from passengers, it is no surprise that people make the switch.