Accelerating Innovation with IoE Are You Ready?

Accelerating Innovation with IoE Are You Ready? Joseph Bradley General Manager and Founder, IoE Practice, Cisco Consulting Services October 7, 2014 ...
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Accelerating Innovation with IoE Are You Ready?

Joseph Bradley General Manager and Founder, IoE Practice, Cisco Consulting Services October 7, 2014

Convergence of Mobile, Social, Cloud, and Data Is Driving Digital Disruption Digital Disruptors

2/3 of the world’s mobile data traffic will be video by 2015

Globally, M2M IP traffic will grow 20- fold 2012 – 2017

In 2012 alone, we created more data than previous 5,000 years

This year, the number of An In By estimated Globally, 2012 2020, alone, about machine-to77 we billion 50created billion apps 2/3 mobile-connected of the world’s mobile devices data Digital Digital machine objects more will data be connected IPdownloaded traffic than previous will to grow the traffic will exceed will be the video number by 2015 of Disruption 20-foldDisruption 5,000 during from Internet 2012 years 2014to 2017 people on earth

This year, the number of mobile- connected devices will exceed people on earth © 2013-2014 Cisco and/or its affiliates. All rights reserved.

By 2020, ~50 billion objects connected to the Internet

An estimated 77 billion apps will be downloaded during 2014 Cisco Consulting Services

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What Are the Implications of Digital Disruption?

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Implications of Digital Disruption 10

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Every company is a technology company

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Implications of Digital Disruption

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Every company is a technology company

9

Change isn’t constant, it’s instant

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Implications of Digital Disruption

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Every company is a technology company

9

Change isn’t constant, it’s instant

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Value is in the platform, not the product

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Implications of Digital Disruption 10

Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

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The majority doesn’t rule…but you do

What about me? © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Implications of Digital Disruption

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Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

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Implications of Digital Disruption

$1 billion

$3.2 billion

10

Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

5

Digitization…the gift that keeps on giving

$19 billion © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Implications of Digital Disruption Don’t be afraid to change your stripes

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Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

5

Digitization…the gift that keeps on giving

4

Fail fast and often to win

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Implications of Digital Disruption

© 2013-2014 Cisco and/or its affiliates. All rights reserved.

10

Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

5

Digitization…the gift that keeps on giving

4

Fail fast and often to win

3

Data is everywhere, insights are scarce

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Implications of Digital Disruption

© 2013-2014 Cisco and/or its affiliates. All rights reserved.

10

Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

5

Digitization…the gift that keeps on giving

4

Fail fast and often to win

3

Data is everywhere, insights are scarce

2

Insight is the new currency

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Implications of Digital Disruption The Data Avalanche Is Upon Us

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10

Every company is a technology company

9

Change isn’t constant, it’s instant

8

Value is in the platform, not the product

7

The majority doesn’t rule…but you do

6

Experience trumps functionality

5

Digitization…the gift that keeps on giving

4

Fail fast and often to win

3

Data is everywhere, insights are scarce

2

Insight is the new currency

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1 The Future Is the Present: Context Is King

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Are You Ready?

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Value Is Not in the Number of Things, But the Connections of People, Process, Data, and Things People

Process

Connecting people in more relevant, valuable ways

Delivering the right information to the right person (or machine) at the right time

Data

Things

Leveraging data into more useful information for decision-making

© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Physical devices and objects connected to the Internet and each other for intelligent decision-making; often called Internet of Things (IoT) Cisco Consulting Services

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IoE Drives $19 Trillion In Value Over 10 Years

Private Sector

$14.4T

Includes both industryspecific and horizontal use cases.

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Total IoE Value at Stake

IoE $19.0 Trillion

Cisco Consulting Services

Public Sector

$4.6T

Includes cities, agencies, and verticals such as healthcare, education, defense

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IoE Drives $19 Trillion In Value Over 10 Years

Increased Revenue:

Asset utilization:

$125B

$2.5T Supply-chain / logistics Private efficiency : $2.7T

Sector

Employee Productivity:

$2.5T $14.4T

Improved customer Includes both industryexperience : specific and horizontal

Total IoE Value at Stake

$19.0 Trillion

use cases. $3.7T

Employee Productivity:

$1.8T $4.6T

Includes cities, agencies, and Defense: verticals such as healthcare, $1.5T education, defense

Citizen Experience:

Innovation:

$412B

$3.0T

© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Reduced Costs: Public $740B Sector

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IoE Is Already Here

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Creating Opportunity from IoE Innovation

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IoE Possibilities for Manufacturing Remote sensing of objects and environment Subscribe to my status updates

Cameras deployed for monitoring and security 7100kWh of energy used today

In a plant, it’s not just about data…integrated control and information matters

Just plug me in! I am online and ready for configuration with the line. Here is my configuration.

My yield will meet today’s production needs

Everything has a URL Clean me next shift

Sensors

Actuators

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Intelligent Motor Control

Terminals

Audio

Video Cisco Confidential

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IoE Poss ibilities for Oil & Gas

Downstream

Terminal

Oil/Lube Data Center Headquarters

Connected pipelines

Connected Refinery Oil Tanker

LNG Terminal

Midstream

Petrochemical/ Refinery

Secure Ops

Storage

FPSO

Connected Wellhead*

Remote Operations

Connected Oilfield

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Collaborative Operations

LNG Tanker * to be released in H2FY15

Upstream

Connected Processing Facility*

Oil Rig

Subsea Production System Cisco Confidential

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IoE Possibilities for Retail Wi-Fi

Integrated video surveillance Gesture / facial recognition

Associate tablet Intelligence from cloud / fog

Digital signage

INTERNET OF THINGS

Parking

Secure Big Data infrastructure, analysis, and action © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Big Data repository

Customer mobile

Fast data processing

Action enablement Cisco Confidential

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Cart Path Tracking

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Out-of-Stock Identification FastRetail Identifies Out-of-Stocks More Quickly than Current Systems Out of Shelf Multi-day view

1 0.75 0.5 0.25

Current System reported shelf stock level FastRetail reported level

0

Single day view

Stock Level 1 0.75 0.5 0.25

Shelf inventory depleting while system inventory increasing

Shelf inventory zero

0 © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Living Laboratories: For Example - Shelf Set A/B Testing with Retailer Collaboration Planogram B Collaboration Video

Conversion Rate

SKU Location

7.3% Females 25-34 Positive Mood

Collaboration Video New SKU Location

Conversion Rate

Planogram A

11.1% Females 25-34 Positive Mood

1 Week Cumulative Results © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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IoE Possibilities for Cities Factory Optimization

Municipal Command & Control Center Cloud & Services Smart Grid

Lighting Poles

Building Optimization

Logistics Optimization

Home Energy Mgmnt Traffic Flow Optimization

City WiFi INTELLIGENT CITY

INTELLIGENT Building

INTELLIGENT Community INTELLIGENT HIGHWAY

Parking Connected Ambulances © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Intelligent Digital Signage

Automated Car System

Traffic Cameras 28 Source: Intel

Cisco Confidential

Smart Street Lighting: Each Opportunity Can Create Multiple Benefits Across Stakeholders City receives additional property tax City pays for smart lighting

Crime reduces property prices increase

Citizens get Wi-Fi

City saves on operating costs

Retail job creation

Better environment retail footfall and sales increase

City receives advertising revenues

What role can SPs play in accelerating Smart Cities? © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Nice City Increased Parking Revenue 40- 60% without Raising Taxes New Things Connected  Parking spaces  Parking meters

Value Impact © 2013-2014 Cisco and/or its affiliates. All rights reserved.

New Data Flows

Process Innovation

 Space availability

 Pricing  Payment  Finding spaces

    

People Impact  Traffic wardens  Citizens/drivers  City planners

Increase compliance by 30% Parking Revenue increase 40 – 60% City data sales Reduced congestion, time-to-park Dynamic pricing — revenue increase

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Barcelona: Smart City Creates $3B in Value Smart Lighting

Smart Buses

Smart Water

Smart Bus Stop

Smart Parking

Smart Waste

Smart Water: $58 million  Reduced costs, more revenues, better productivity and citizen experiences

Smart Parking: $53 million Smart Lighting: $47 million

 Created 47,000 jobs

Smart Buildings: $124 million Smart citizens

Revenue

Citizen Experiences

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Jobs Services Cisco Consulting

Connected Learning: $170 million

Productivity

Cost Avoidance Cisco Confidential

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Beyond Nice and Barcelona… Korea Korea

 Objective: Improve environment  Solution: 13 Smart Work Centers  Impact: 64 agencies / 71 public organizations increase productivity, save costs, improve job satisfaction © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Amsterdam

 Objective: Economic development,  investment, quality of life  Solution: Smart grid, lighting, parking,  work centers, Wi-Fi, buildings  Impact: 9-14% energy savings;  fewer electrical outages Cisco Consulting Services

Hamburg

Objective: Improve infrastructure and quality of life Solution: Management systems for waterway, train, and road traffic Impact: Smarter decisions reduce traffic congestion Cisco Confidential

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What To Do Now

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Last Year, Companies Left 47% of IoE Value on the Table

2013 $613B (53%) Value

Realized in 2013

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$1.2T Value at Stake

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$544B (47%) Value

“Left on Table” in 2013

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To Capture IoE Value, People and Process Represent 60% of the Value Relative Importance of IoE Enablers in Predicting Value Realized 23

Data

IoE Success Will Depend on Innovative Application of Technology to Improve the “People” and “Process” Elements of the Business

27.4

Process

29.4

People

Technology Infrastructure (Things)

20.2 0

5

10

15

20

25

30

Percentage © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Dr. Sebastian Saxe, CIO Hamburg Port Authority

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What We’ve Learned: Infrastructure, Inclusion, and Information To Capture More IoE Value, Companies Must:

1

2

3

Invest In high-quality technology infrastructure and tools

Adopt and follow inclusive practices that foster collaboration

Develop effective information management practices

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A New Platform for Business and IT Is Required Internet of Everything

Mobile

Cloud

New Breed of Apps

Hyper-Aware

Predictive

Infrastructure automation © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Big Data & Analytics

IoT

Agile

Fast IT IT-as-a-Service

Application-centric

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Security Cisco Confidential

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Key Take Aways It’s risky to ignore IoE or treat mobile, social, cloud as separate events: 87% of companies stall…just 1 in 4 recover

1

IoE creates opportunity from connections by allowing you to build a strategy based on interconnecting people, process, data, and things

2 3 4 5

Companies that increase network connections of 4 silos will realize most of $19T in value (private - $14.4T, public - $4.6T) IoE is here today: In 2013, 47% of value was left on the table…how much will you leave in 2014?

Keys to success: 1) invest in shared infrastructure, 2) develop inclusive culture (75% innovation outside of company), 3) use analytics to turn data into essential knowledge to drive business

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Imagine… © 2013-2014 Cisco and/or its affiliates. All rights reserved.

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Let’s Get Started

TWITTER

SLIDE SHARE

EMAIL

LINKEDIN

@JosephMBradley

JosephMBradley

[email protected]

JosephMBradley

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Thank you.