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
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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
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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
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Change isn’t constant, it’s instant
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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
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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Implications of Digital Disruption
$1 billion
$3.2 billion
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Every company is a technology company
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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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
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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Digitization…the gift that keeps on giving
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Fail fast and often to win
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Implications of Digital Disruption
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Every company is a technology company
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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Digitization…the gift that keeps on giving
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Fail fast and often to win
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Data is everywhere, insights are scarce
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Implications of Digital Disruption
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Every company is a technology company
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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Digitization…the gift that keeps on giving
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Fail fast and often to win
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Data is everywhere, insights are scarce
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Insight is the new currency
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Implications of Digital Disruption The Data Avalanche Is Upon Us
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Every company is a technology company
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Change isn’t constant, it’s instant
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Value is in the platform, not the product
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The majority doesn’t rule…but you do
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Experience trumps functionality
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Digitization…the gift that keeps on giving
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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
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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
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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
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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
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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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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
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Thank you.