PM Case Competition

1. PM Case Competition Sponsored by the Cisco Product Management Program - 2019

2. Introductions – team Edward Ohman Derek Paulson Marina Reigado Kapil Sharma JB Stockslager • Prior Experience • 5+ years of consulting experience • Bain & Company, L.E.K. Consulting • Stockholm, London, NYC • Education • Kellogg School of Management, MBA, 2021 • Duke University, BS Economics, 2011 • Prior Experience • Corporate Finance at Honeywell • Mobile, AL; Morris Plains, NJ; Phoenix, AZ • Education • Kellogg School of Management, MBA, 2021 • Brigham Young University, BS Finance, 2015 • Prior Experience • Relationship Manager at Itaú BBA • São Paulo • Education • Kellogg School of Management, MBA, 2021 • USP Universidade de São Paulo, BS Statistics, 2013 • Prior Experience • 5 years of PM experience  • Ecommerce and Education tech. • Mumbai, Bangalore • Education • Kellogg School of Management, MBA, 2021 • National Institute of Technology Trichy (India), 2014 • Prior Experience • 3 years of consulting experience • A.T. Kearney • Dallas, Seattle, Boston, and San Francisco • Education • Kellogg School of Management, MBA, 2021 • Southern Methodist University, BS Finance 2016

3. Executive summary • Several mega-trends will shape the automotive industry to 2025, yielding significant opportunities for CISCO in the ‘internet-of-cars’ and ‘self-driving functionality’ • The car of the 2025 will not be fully self-driving, several key challenges remain • CISCO is best position to address challenges related to connectivity between infrastructure-to-cars and cars-to-cars, and data security, in order to enable self-driving functionality • The Situation & Problem • Solutions • Connecting infrastructure to cars: connecting information from infrastructure to cars • Variety of use cases, incl. two-way traffic grid communication yielding more efficient routes and enhanced safety • Connecting cars to other cars: rapid and reliable communication between cars in transit • Facilitates route optimisation, enhanced safety (e.g., through accident anticipation at intersections) • Providing data security: safeguarding the quality of the data utilised as inputs for self-driving cars • Reduces ability to hack, data quality challenges, and other means that limit effectiveness of driverless cars • Next steps • Short term priorities focused on adapting existing technologies and partnerships • Adapt existing router technology to fit into vehicles (considering sensor inputs and output requirements) • Partner with self-driving functionality developer • Longer term priorities focused on continual development and refinement of data security products

4. Six mega-trends are shaping the U.S. auto industry,CISCO should focus on ‘self-driving’ and ‘internet of cars’ Electric cars will increase auto market share by ~5x, but 95% of cars rely on fossil fuels in some form Produce lighter and stronger cars using carbon fiber reinforced plastic and other innovative materials Cars that are level four autonomous with some driving features Fuel-efficiency improvement requirements will increase cost of parts by $2.5K+ per vehicle Electric cars only need 1/3 traditional car parts and vehicles will require new technological inputs Connected cars will connect the car internally and externally to traffic infrastructure, other cars, and idle customers Expectation Make alternative power cheaper and more efficient, while increasing internal combustion engine efficiency Discover new production inputs, which improve weight while improving (or holding constant) safety Make all vehicles semi-autonomous to maximize driver safety, route efficiency, and energy efficiency Reduce the cost of required technological and raw inputs (i.e. carbon fiber reinforced plastic) Create solutions to best complement traditional auto manufacturers and a variety of new entrants Provide as many connected car capabilities as possible to expand positive network externalities 2025 Focus Area of Focus We see significant opportunity for CISCO to utilise connectivity (incl. data security) self-driving solutions to enable safer, more efficient vehicles https://www.goldmansachs.com/insights/technology-driving-innovation/cars-2025/

5. The car of 2025 will have a range of connectivityfeatures and self-driving capabilities Range of connectivity features Degree of self-driving Self-integrating (e.g., digital integration to other user devices) “… Self-integrating. Like other smart devices, the vehicle will be an integrated component in the Internet of Things (IoT). It will collect and use information from others concerning traffic, mobility, weather and other events associated with moving around: details about driving conditions, as well as sensor-based and location-based information for ancillary industries, such as insurance and retail… ” IBM Self-configuring (e.g., personalised to user preferences) “… Connected cars, communicating with each other and with the larger world, will not only reduce accidents and ease traffic. They will have powerful effects beyond the auto industry. Insurers, for example, will have new ways to monitor driver behaviour, reward good drivers and distribute costs to bad ones. And ride-sharing companies can better connect idle cars with the customers that need them… ” Ansys Self-learning (e.g., data collection on  riders) Self-healing (e.g., analytics on performance) Connectivity features not fully integrated into self-driving functionality, yielding a key role for Cisco https://www.ansys.com/blog/challenges-level-5-autonomous-vehicles https://www.technologyreview.com/s/613399/the-three-challenges-keeping-cars-from-being-fully-autonomous/

6. We see the following challenges to fully autonomouscars, not currently addressed by the automotive industry Connectivity issues play a key role in enabling self-driving functionality

7. Three prioritised areas for CISCO, centred onconnectivity and data security Prioritization of ‘issues’ to tackle Comments • Market attractiveness determined by evaluating: • Need / value to consumer • Willingness of Automotive OEMs to adopt solution • Ability-to-win considers capabilities and competition • Proximity to CISCO portfolio (e.g., in portfolio, near adjacency) • Degree of competitive intensity • Priorities focused on connectivity and data security issues • Connecting infrastructure to cars: improves driver decision-making, leverages CISCO capability in infrastructure connectivity • Providing data security: critical issue, leverages CISCO strength • Connecting cars to other cars: improves driver decision-making, extension of infrastructure and connectivity capability • Partner with OEMs, technology developers to bring benefits of connectivity to self-driving vehicles Car itself Infrastructure H Perceptive AI Car-to-car Data security Decision-making IoT M Ancillary services Market attractiveness Sensors L L M H Ability-to-win

8. Use Case 1: Infrastructure-to-Car Connectivity Background John is an accomplished venture capitalist in SF. A nature enthusiast, John has a passion for the environment as evidenced by his annual involvement in Greenathon. Potential Next Steps • Adapt existing router technology  to connect vehicles and infrastructure such as traffic signals (considering sensor inputs and output requirements) • Partner with OEMs developing self-driving cars Full Solution John enjoys the beautiful view outside while travelling without having to engage his car at signals, knowing it's actively optimising his trip to improve his fuel efficiency & travel time. Where Cisco Fits In Car router installs to allow for external data gathering Network protocol to connect traffic infrastructure with cars SocietalBenefit Benefit to User • John's car has increased self-driving capability and is fuel efficient. • John can commute faster from office to work • Increased car performance • Quicker commutes • Improved safety • Reduced carbon emissions/energy usage

9. Use Case 2: Data Security Background Kim is a successful entrepreneur who is very concerned about her data security. She is very passionate about her company and spends most of her time working or sleeping Potential Next Steps • Contract with self-driving functionality developer to provide Security Service • Develop access control policy • Tailor firewall and malware protection solutions specifically for connected cars Full Solution Kim can sleep soundly leaving her car knowing hackers cannot access important information (such as her daily schedule or home location) and cannot remotely take control of the driving software Where Cisco Fits In Cisco next-generation firewalls Firepower Management Centre will be customized for real time monitoring Consistent updates to guarantee prevention from new attacks  SocietalBenefit Benefit to User • Kim can make better use of the time she spends worrying about the data her semi-automated system collects • Data security • Less political backlash • Improved safety • Fewer traffic accidents

10. Use Case 3: Car-to-Car Connectivity Background Javier is a young consultant who commutes from NJ to NY; he is always looking for ways to use his time more effectively to keep up with his many demands and have more time with family Potential Next Steps • Partner with OEMs developing self-driving cars • Develop or enhance hardware specifically designed for connected cars • Create upgrade kits to bring connectivity to older, non-connected cars Full Solution Javier can flip his car to self-driving mode and catch up on emails, financial news on his drive home​ Javier’s car uses connectivity to analyse traffic patterns and optimise his route for a quicker commute​ Where Cisco Fits In Hardware installs for in-car Wi-Fi capability​ Secure connection to self-driving system architecture​ Common protocol to facilitate car-to-car connectivity SocietalBenefit Benefit to User • Javier can safely utilise his car’s self-driving technology with the confidence that his vehicle will avoid collisions with other cars • Improved safety • Fewer traffic accidents • Quicker commute times • Reduced emissions

11. Appendix Appendix

12. Appendix: Each challenge assessed individually