Let’s face it, business travel isn’t going away but in our current economic climate with currency disparities we all need to do our part to manage expenses. Determining the right blend of in-person meetings and ones that can be done virtually can be a challenge. In this session, you will hear from an expert panel who will discuss:: • how to identify sub optimal travel expenses within your organization and replace them with more cost effective virtual meeting solutions that will not jeopardize employee productivity. • how to calculate the proper in-person/virtual meeting ratio in order to see the Return on your Collaboration Investment properly • determine when video is an appropriate alternative to travel • roll out a successful travel program that incorporates virtual options • your workforce to adopt this strategy • measure its effectiveness

1. Cisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved. 1
Optimizing Business Travel:
We Have the Math For That
Sam Chon
Business Development
19 May 2016

2. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
1. To better understand the shift in technology spending from IT to LOB
2. Overview of Collaboration Business Value as applied to Common Business
Expenses
3. Deep dive into the corporate travel market and its opportunities to leverage visual
collaboration
4. Integrating technology to achieve specific and measureable results
5. Outline a methodology to calculate your opportunities
Please Participate!
Session Objectives

3. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
The Panel:
Jodi Woods, Global Category Manager, Travel & Card – Becton Dickinson
Wendy Prewitt, Vice-President, Business Development – BCD Travel
Gene Papula, Systems Engineering Manager – Cisco Systems
Moderator:
Sam Chon, Business Development – Cisco Systems
Introductions

4. Cisco ConfidentialCisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved. 4
• Equals 40% of the CIO’s budget
• Many of our Collaboration customers have been doing this before the industry had a term
for it.
• Collaboration is #1 technology focus for business IT opportunities.
Business Led IT Spending –
Shadow IT
Source – 2014 CEB-Harnessing Business
Led IT
By 2020 90% of Tech Spending will be
outside of IT
Gartner Symposium/ITExpo 2012

5. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
Why Integrated Business Services?
Value-add services end-
to-end, addressing
enterprise-wide
business problems in a
consistent, high-quality,
and cost- competitive
manner…
…expanding role as a
strategic partner
…identify, innovate, and
implement new services
and solutions that
support enterprise
growth at scale
Source: Accenture
Value
Creation
Business
Partner
Effectiveness
Efficiency
Compliance and
Control
Business
Control
Policy
Compliance
Scale
Location Strategy
Cost Savings
Operating Leverage
Speed
Cost-to-Serve Optimization
Business Agility
Save to Invest
Portfolio Management
Business Outcome
Growth Experience
Role Focus
Enterprise Value
Enabler
Business
Partner
Expert
Operator
Administrator
Source: The Hackett Group

6. Cisco Confidential 6© 2015 Cisco and/or its affiliates. All rights reserved.
Common Business Expenses
• Potential Impact of Collaboration Solutions on Common Business Expenses

7. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
Largest Business Expenses
People / Human Resources Travel / Transportation
Facilities / Workplace
Resources

8. Cisco ConfidentialCisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved. 8
Business Value Scenarios
Travel Optimization
Workplace
Transformation
Human Capital
Management

9. Cisco ConfidentialCisco Confidential© 2016 Cisco and/or its affiliates. All rights reserved. 9
Business Value Scenarios
Travel Optimization
Workplace
Transformation
Human Capital
Management

10. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Workplace Transformation
The Opportunity
There are 22 billion square feet of office real estate worldwide.
Most of it will be dramatically different in the next 5 years.

11. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
Shifting workforce demographics
Dramatic growth of unstructured work
Explosion of mobile devices and ubiquitous
Internet access
Trends Impacting the Workplace
60%
25%
5%
10%
Space Utilization
Concentrate
Collaborate
Learn
Social/Common

12. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
New Way of Working
Interview Room
Briefing Area
Quiet Room
Video Centric
Development Room
Meeting Room
Hot Desking
Quiet Room
Knowledge Worker
Executive Staff
Teleworking
Remote Expert
Desk Space Meeting Room

13. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Reduction in office
space
30%
Reduction in
workspace cost per
employee
50%
Increase in
employee
satisfaction
80%
of employees say
communications
have improved
82%

14. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
Risk Calculation – Hard Costs
Employee Count
Avg Real Estate
Expense Per
Employee
Est Annual Real
Estate Spend
33% Non-Optimal
Spend:
Use Employee Count to calculate
Real Estate Costs
$13,200,000
$40,000,000
$8,000
5,000
If just 10% of the non-optimal
spend is used for Collaboration,
that’s a $1.3M opportunity per
year.

15. Cisco ConfidentialCisco Confidential© 2016 Cisco and/or its affiliates. All rights reserved. 15
Business Value Scenarios
Travel Optimization
Workplace
Transformation
Human Capital
Management

16. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
Changing Workforce/Changing Expectations
We are only
5 years away from
the Net Generation
entering the
workforce.
Traditionalist Boomer Generation X
1928–1945 1946–1964 1965–1980 1980–2000 2000–2020
Net
Gen
Millennials
Source: Cisco Work Profile Survey, 2014

17. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
The HR Case
Leaving
Marketplace
Entering
Marketplace
70M 70M
40M
26 Years
In
Marketplace
30M Gap

18. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
The Employee Lifecycle
Recruitment,
Onboarding,
Orientation
Career Planning and Development
Transition,
Termination
Time

19. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
Risk Calculation – Hard Costs
Average
Cost/Emp.
Cost for 10K
Co.
Target
Objective
Target
Savings:
Stage I
Hiring and Ramping
$2M
Reduce 10%
$20M
$25k
per employee
((Attrition + Growth) x Headcount) x Avg.Cost/Emp.
((5%+3%) x 10,000) x $25,000
Cost/Company x Desired Reduction
$20,000,000 x 10%

20. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Risk Calculation – Hard Costs
Stage II
Continuous Training
Average
Cost/Emp.
Cost for 10K
Empl.
Target
Objective
Target
Savings: $7M
Reduce 10%
$70M
$7K per year /
per employee
Headcount x Avg.Cost/Emp.
10,000 x $7,000
Cost/Company x Desired Reduction
$70,000,000 x 10%

21. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
The Cost of Training
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Minimum Average Median Maximum
$500.00
$7,125.00
$9,000.00
$10,000.00
75% of organizations spend more
than $5,000 per services
employee
Cisco spends $1,300 per services
employee
150
125
100
75
50
25
Hours
40h
61h
40h
150h
66% of organizations spend 40
hours per services employee
Cisco spends 40 hours per
services employee

22. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
Collaboration Fit
Video
Conference
Web Event with
Q&A Mgr
Desktop
Soft-client
Application
Instructor
Led
Video On Demand
Audience Size - Distribution

23. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
Risk Calculation – Lost Value
Average
Cost/Emp.
Cost for 10K
Co.
Target
Objective
Target
Savings: $3.75M (FV)
Reduce 10%
$375M
(over next 5 years)
$250K
Stage III
Knowledge Transfer
(Retirement Rate x Headcount) x Avg.Cost/Emp.
(15% x10,000) x $250,000
Cost/Company x Desired Risk Mitigation
$375,000,000 x 10%
10% Fair Value

24. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
Risk Calculation – Impact
Stage I
Hiring and Ramping
$25k
per employee
Average
Cost/Emp.
Cost for 10K
Empl.
Target
$2M
Target
Savings:
$20M
Reduce 10%
Stage II
Continuous Training
$7K
$70M
Reduce 10%
$7M $3.7M (FV)
Reduce 10%
$375M
(over next 5 years)
$250K
Stage III
Knowledge Transfer

25. Cisco ConfidentialCisco Confidential© 2016 Cisco and/or its affiliates. All rights reserved. 25
Travel Optimization
Workplace
Transformation
Human Capital
Management
Business Value Scenarios

26. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
Optimizing Travel
Sales Calls
Revenue Generating
Performing Services
$1.3 Trillion
1% Transformation =
$3.25B+ Positive
Impact
Optimal
24.75%
$322B
25%
$325B
No/Low
Contribution
75%
$975 Billion
75.25%
$978 Billion

27. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
Risk Calculation – Hard Costs
Technology Supplier
$500K Investment 6 Month Payback
5 year saving $5.65M/$565,500 per site
Step 2: Estimate
Savings of Top 10 Origin & Destination
$1,131,00025% Transform Target
$4,524,000
Top 10 O&D Internal
Travel Spend
$18,850,000Top 10 O&D Travel SpendAnnual Travel Spend
Non-contributing Ratio
$123,250,000
24%
Non-optimal Travel Spend $29,580,000
Step 1: Estimate
Non-optimal travel spend
The customer estimated 24% of travel was not contributing to revenue, and therefore not optimal

28. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28
Risk Calculation – Hard Costs
Pharmaceutical
$1.2M Investment 4 Month Payback
5 year saving $19.7M/$1.97M per site
Step 2: Estimate
Savings of Top 10 Origin & Destination
$3,934,44825% Transform Target
$15,737,792
Top 10 O&D Internal
Travel Spend
$33,484,665Top 10 O&D Travel SpendAnnual Travel Spend
Non-contributing Ratio
$144,835,537
47%
Non-optimal Travel Spend $88,072,702
Step 1: Estimate
Non-optimal travel spend
The customer estimated 47% of travel was not contributing to revenue, and therefore not optimal

29. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
Travel Calculation Worksheet
Variables Outcomes
1. Gross Revenues $5,428,000,000.00
2. Estimated Travel Spend (1.5%) $81,420,000.00
3. % Total Non-Optimal Spend 33% 4. Non-Optimal Spend $26,868,600.000
5. % Travel Spend Top 10 O&D's 35% 6. Total Travel Spend - Top 10 O&D's $28,497,000.000
7. % Top 10 Non-Optimal Spend 38% 8. Non-Optimal Travel Spend - Top 10 O&D's $10,828,860.000
9. Savings target - Top 10 O&D's 25% 10. ANNUAL Non-Optimal Travel Savings - Top 10 O&D's $2,707,215.000
11. Total Company ANNUAL Travel Savings 3.3%
Travel Optimization Worksheet

30. Panel Discussion:
Corporate Travel
Deep Dive

31. © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31
The Panel:
Jodi Woods, Global Category Manager, Travel & Card – Becton Dickinson
April Bridgeman, Senior Vice-President, Advito
Gene Papula, Systems Engineering Manager – Cisco Systems
Moderator:
Sam Chon, Business Development – Cisco Systems
Introductions

32. Thank you.