Executive Thought Leadership

Balance in a Connected World

The globalization of business is inevitable in a networked world. Entrepreneurs and innovators will always push the evolution of business models in new, creative, and exciting ways. It’s too early to have a clear understanding of the full impact of globalization, but I do believe that any business or individual around the world with access to broadband, education, and an innovative environment with a supportive government has what it takes to compete on a level playing field. Think about a student in Palo Alto, California who has the same opportunities as a student in Jordan, or Budapest, or the Gangsu province of China. Think about what this means to a local economy, job creation, small or family-owned businesses, for a country’s competitiveness. Think about the impact of globalization on communities and societies everywhere.

While businesses worldwide are still trying to figure out how to approach globalization and all its possibilities, it is clear that companies must stay competitive and adapt to changes in the marketplace, not just on a local level, but on a global scale. I’ve asked my teams to help Cisco do just that. In an increasingly connected business world, we focus on catching market transitions and rely heavily on balance within our business. What I mean is that we focus on maintaining a balance across more than two dozen product areas, four customer segments, and across major developed and emerging countries. When any one or two product areas are challenged, momentum within the other product families offsets any negative impact to our overall product portfolio. The same is true in our customer segments and in our geographies around the world. There are natural concentrations of resources and expertise throughout the world and leading companies will position themselves to benefit from these local opportunities in order to achieve global balance.

Much of the recent attention has centered on the impact of globalization within developing nations. For example, Cisco itself recently opened a new campus in Bangalore in addition to announcing increased investments in China. But globalization is also a driving force in places such as Europe, Japan, the United States, and the rest of the developed nations. For example, Europe boasts 15 of the 25 most innovative countries in the world, according to the Economist Intelligence Unit’s global Innovation Index. I have no doubt that given their tradition of innovation and their focus on education and infrastructure, Europe has the opportunity to lead in the global economy of the future.

On a macro level, each economic region must adapt to tie into the larger world market and become globally balanced. Dr. Carlota Perez, renowned economic historian, research fellow at both Cambridge University and the University of Sussex, and a professor at the Technical University of Talinn, recently met with several top Cisco leaders to discuss her concepts about technological innovation cycles. In her perspective , she focuses on how the world’s regions can “respecialize” to maximize their natural advantages and best compete in a global market.

On a more micro level, business leaders can widen the lens they use to view things such as talent, operations, and market opportunities to encompass a broader world view. By understanding the functions within an organization in terms of what’s core to a business in different global regions and what’s context, companies can better achieve the balance necessary to scale locally and access global markets. Take a moment to read Cisco Chief Globalization Officer Wim Elfrink’s perspective about the future of global enterprise, to learn more.