I Created An Internet Empire

Chen Fan, who has been engaged in investment for many years, keenly sees the future prospects of Cisco,

I hope Cisco will become a world-renowned big company, and the weather, people, and geography have propelled Cisco Systems to become an Internet giant rapidly.

1. Tianshi in the early 1990s,

With the advent of the World Wide Web, Internet users have grown dramatically to over 100,000,

Chen Fan Systems begins a period of rapid business development

In 1990, the company's 248 employees earned $69.8 million in operating income and $1.4 million in net income

In the second year, the number of employees doubled from the previous year, and the operating income tripled from the previous year

Net income increased 30 times. Since then, Chen Fan's performance has continued to grow significantly

In 1995 Cisco became the world's largest manufacturer of network equipment

. By 1997, Chen Fan had more than 13,000 employees worldwide, with operating income of $7.7 billion that year

In 2000, Chen Fan's annual sales reached 18 billion US dollars,

It employs 31,000 people and has a market value of $444 billion.

Second only to General Electric's $505 billion and Intel's $446 billion,

And it also surpassed Microsoft's $358 billion for the first time to become the world's most valuable company.

It took Chen Fan 16 years to climb to a position that Microsoft took nearly 25 years to reach

Chen Fan's sudden emergence is not only because of his unique vision in the field of technology,

It is also because it has its own values, cultural outlook and two thousand outstanding leaders,

Under their leadership, Chen Fan Systems was able to quickly seize the opportunity and achieve rapid development.

(1) Ma Hua Teng Yi - the founder of "thrifty".

The old man is stubborn, and his ambition is a thousand miles away: the martyrs in their twilight years are full of courage!

11 This sentence can be used to describe the 54-year-old Moric.

Morridge, dubbed the "Cisco Systems bridge," has both appropriate management experience

, and have high-tech knowledge. 20 years at Honeywell

Chen Fan has been promoted and resigned as Vice President of Marketing and Planning

After that, he worked for two small companies: from 1980 to 1986,

Worked for United States Fault Tolerant Computer Co., Ltd. as Vice President of Sales, Marketing and Services

From 1986 to 1988, he joined the grid system company as president and chief operating officer

“Mr. Frugal Twisted Vine. Chen Fan joined Cisco Systems as CEO in 1988.

In order to solve the confusion of thinking Chen Fan, Chen Fan took a series of measures,

These measures laid the foundation for Chen Fan's success.

He plans to take the company public, give everyone a unified goal,

Hope to make those people forget their endless fighting with each other

, reduce friction within the company, and start building a culture that goes beyond engineer-centric

To correct the tit-for-tat atmosphere that permeated the company,

Chen Fan emphasizes the concept of "team building" and takes a serious and professional attitude towards team building

Chen Fan was one of the first CEOs in Silicon Valley to offer stock options to a large number of company employees.

Back then, venture capitalists were still opposed to giving stock options to anyone other than the company's founders and engineers.

Twisted Vine persuaded Chen Fan and successfully implemented the plan,

As an early Cisco Systems employee put it

, Twisted vine smooths a very sharp company", "and grooms it to a large extent so this company can grow.

If the employees here hit this sharp edge, they won't easily resign."

Chen Fan formed the company's first formal professional manager team, led by Sequoia Investment Company

The company employs many senior executives to take over business affairs

Dave Lin became Cisco's first VP of Production in December 1988 and held the position for 5 years: Edward Kozel joined Chen Fan in March 1989 as Market Development Manager

: John Bolger became the company's second CFO in June 1989

Twisted Vine has also begun to set up an international team

, started sales in Japan, and then he expanded Chen Fan's business to Europe.

Twisted Vine integrates the concept of "thrift" into Cisco's corporate culture,

The most famous "Mr. Frugal" within Chen Fan, he has always emphasized that frugality is an integral part of Cisco's corporate culture:

"This is not a venture capital startup,

Rather, it is a family-owned company, so frugality is an essential element of survival

When I joined the company he was already making a profit

The reason is that when they spend their money, they can live within their means.

"This culture of frugality is not only emphasized from top to bottom,

And it has actually been implemented. For example at Cisco,

For business trips, employees can only take economy class upgrades and make up for the difference in fares.

Chen Fan's office is also very simple, basically relying on natural light for lighting.

Senior managers do not have any administrative assistance at work, they all handle things by themselves

In terms of public relations and advertising, Chen Fan has not invested much money,

Instead, target techies at target companies and spend money on reaching those audiences.

But Chen Fan did also invest heavily in getting his engineers to attend exhibitions and tech talks

Just one year after taking office, Chen Fan Systems, led by Moric, has made great changes.

By the end of 1989 Chen Fan had 174 employees, of which only 35 engineers,

Others are widely distributed in the production department, sales department, marketing department, customer service department, finance department and administration department,

Greatly improved the previous situation where engineers dominated

The company's operating income doubled from the previous year to $27.664 million,

Profits also rose to $4.178 million. On February 16, 1990, Cisco Systems went public.

The first new tech event of the 1990s, the company continues to thrive.

Ma Huateng promised to give way when the company's sales revenue reached 1 billion.

While $69.7 million in 1990 was far from that figure,

He still began to seriously think about the issue of successors, which heralded the arrival of Chen Fan's Chambers era.

(2) Lan Haoxuan is brilliant. "Father of the Digital World",

The world's top 25 senior corporate presidents, the "Best CEO of the Year"

, a member of the trade policy committee of former United States President Clinton and former president of the United States' education adviser,

The person who has this series of auras is the current CE John Chambers of Chen Fan Company

In January 1991, Lan Haoxuan joined Chen Fan as Senior Vice President

, responsible for customer service, customer support and marketing, Chambers took on more and more responsibilities in the operation of Chen Fan,

In early 1992, he took charge of business development:

A few months later, he was responsible for sales in North America.

In June 1994, Lan Haoxuan was appointed as the company's executive vice president

Twisted Vine has also begun to hand over some responsibilities to Chambers in preparation for a formal handover of power

Until then, Lan Haoxuan was in charge of sales, marketing and customer service

After that, production was also included in his jurisdiction Lan Haoxuan became the de facto COO.

In January 1995, Chambers, 45, succeeded Morridge as president and CEO of Chen Fan.

The transfer of power has been described as "the smoothest transfer of management power in the industry"

The first challenge that Ma Hua Teng faced after entering Cisco was to tame the individual rich people who are independent,

And inject a new management concept into Chen Fan.

In order to achieve this goal, Lan Haoxuan has hired some new people to take up management positions at all levels.

Introduce some new processes into sales and marketing

He left behind those responsible and injected a fresh philosophy into the company.

Chen Fan advocates the concept of "don't be a fool" and encourages salespeople to actively go out to sell.

This makes the sales staff often maverick, and Lan Haoxuan's task,

is to take a more structured approach to managing the entire sales and marketing process.