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Cisco Systems

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Cisco Case Study 1) What are the challenges and risks faced by technology companies in new product introduction?

The challenges and risks faced by technology companies in NPI (New Product Introduction) are the rapid changes of the technology industry, low cost pressure and fulfillment of local and global requirements.
Some of the challenges faced by any company are the ability to have the technical expertise and knowhow of market trends. The industry of technology is rapidly changing as it introduces new technology every day. Time is key for technology companies, as they can spend a lot of money developing products, and by the time it launches, they are not sure if the product will be successful. An example of time to market pressure was Cisco’s Viking project. Cisco was developing the Viking project, which is a router that would let broadband service providers consolidate their data, voice, video and mobile traffic in a single box. After four years of development, they had to redesign the project one year before it launched due to the changes of the customers’ requirements and market transitions.
Cisco reviewed the customers’ needs and realized that the original development would not meet the escalating needs of service providers. By fall 2007, Cisco completely redesigned the product for increases speed and capacity. At the same time, there was a huge marketing transition happening. The explosion of video happened faster than anyone could have expected due to the explosion in traffic from YouTube, Ipods and Itunes, and the extensions of video-on-demand download in the living room. Even with the redesign of the product, Cisco didn’t change the launch date. If Cisco didn’t meet that demand in 12 months, it could lose market share.
In regards to low cost pressure, the technology industry competition has low price. The customer expects low prices as the...

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