The Internet of Everything (IoE)€¦ · IoE brings together people, process, data, ... Connected Gaming and Entertainment High 18. Digital Signage Low 19. Virtual Private Education

Cisco Public 1 © 2013 Cisco and/or its affiliates. All rights reserved.

The Internet of Everything (IoE) Value at Stake in the IoE Economy

Aamer Azeemi

Managing Director, APJC IoE Practice

December 2013


© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Public 3

IoE brings together people, process, data, and things to make networked

connections more relevant and valuable than ever before—turning information into

actions that create new capabilities, richer experiences, and unprecedented

economic opportunity for businesses, individuals, and countries.

Source: Cisco IBSG, 2013


Intelligent Connections

• Email

• Web browser

• Search

• E-commerce

• Digital

supply chain

• Collaboration

• Social

• Mobility

• Cloud

• Video

Connecting:

• People

• Process

• Data

• Things

Internet of Everything

Digitize the world

Immersive Experiences Digitize interactions

(business and social)

Networked Economy

Digitize business processes

Connectivity Digitize access to information

Bu

sin

es

s a

nd

So

cie

tal Im

pa

ct

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Delivering the right

information to the

right person (or

machine) at the

right time

Process

Leveraging data

into more useful

information for

decision making

Data

Physical devices

and objects

connected to the

Internet and each

other for intelligent

decision making

Things

Connecting people

in more relevant,

valuable ways

People



Includes • Shifts of benefits among competing firms in an industry • Shifts of benefits among different industries • New-to-the-world revenue growth from innovation • Cost savings from more efficient processes • Allowances for implementation costs

Does not include • Extent of losses at firms that don’t transform • Consumer or government value creation (private-sector focus) • Social benefits • Value estimates for reduced risk of operations


The potential bottom-line value (higher revenues and lower costs) that can be created or will migrate among companies and industries based on their ability to harness IoE over the

next decade (2013-2022)

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

• SG&A and CoGS reduction from improved business process execution

• Improved capital efficiency

• Improved labor efficiency

• Fewer or more productive person-hours

• Improved customer lifetime value

• Additional market share (more customers)

• Improved RD&E speed, reduced TTM

• New business models and new sources of

revenue

• Improved process efficiency

• Reduced waste in supply chain

IoE Value

at Stake:

$14.4T

(2013-2022

10-year

NPV)*

* Net present value

Asset utilization:

$2.5T

Improved customer

experience: $3.7T

Supply-chain / logistics

efficiency: $2.7T

Innovation: $3.0T

Employee productivity:

$2.5T

21

use

ca

se

s


USE CASES Customer

Experience

Supply chain

and logistics

efficiency

Innovation Employee

productivity

Asset

utilization

All Value

Sources

SMART INFRA-

STRUCTURE

(M2M)

1. Smart grid - energy efficiency High High

2. Smart buildings Medium Medium

3. Connected commercial vehicles Medium Low Low Medium

4. Smart farming Medium Medium

5. Smart factories Very High Very High

FUTURE OF

WORK

6. Travel avoidance Medium High High

7. Future of Work / Next Gen Worker Very High Low Very High

SUPPLY CHAIN

/ PROCESS

EXECUTION

8. Supply chain efficiency High Very High Very High

9. Physical and IT Security Very High Very High

10. Connected Healthcare / Monitoring Low Low Low Medium

11. Virtual Attendants Medium Medium

12. BPO and related Processing Services Medium Low Low Medium High

13. Faster new product introduction /

TTM Very High Very High

CUSTOMER

EXPERIENCE,

MARKETING,

ADVERTISING

14. Wealth Management Medium Medium

15. Retail Banking Branch of the Future Low Low

16. Digital Malls / Connected Vending Low Low

17. Connected Gaming and Entertainment High High

18. Digital Signage Low Low

19. Virtual Private Education Low Low

20. Innovative Payments Medium Medium Low High

21. Connected Advertising and Marketing Very High Very High

High

$500 bn -

$ 1 tn

Medium

$100 bn -

$ 500 bn

Low

< $100 bn

10-year net-present value (NPV): Very High

>$1 tn


Smart Buildings Smart Retail

Smart Factories

Smart Farming

Smart Products

Cisco Confidential 11 © 2011 Cisco and/or its affiliates. All rights reserved.


• Mounted sensors tack and differentiate cars and cyclists

• Traffic signals hooked into data adjust accordingly—keeping a green light on longer, for example, to allow slower moving bicycles to get through


• Ground sensors beneath parking spots detect when a car is above and makes that data available to smartphone users looking for a spot

• City uses info to adjust meter rates and garage pricing


• Sensor, which sits in left shoe, syncs with Nike+ SportWatch, iPhone, or other Nike+ tracking devices.

• Sensor measures pace, distance, time elapsed and calories burned. Information is transmitted wirelessly to device for real-time feedback during training.



Is it the device? Or the service the device

enables?



A major CPG manufacturer is piloting a solution using Cisco physical security

solutions to enable remote researchers to observe 3rd party consumer research

Researchers use desktop

tools to control surveillance

cameras at 3rd party sites

Researchers can record

sessions and overlay video

analytics

New opportunities to

aggregate insights

Secure video surveillance

allows researchers to

observe without travel

Machine People


Pilot of smart shelf checkout counter display units in 2015. Sensor technology, analytics

and video will combine to deliver demographically appropriate ads and

promotions

Consumer stands in

front of display at

checkout counter

Sensors alert display to

feature video or

promotion relevant for

this consumer segment

Camera sensor

determines age and

gender. Weight

sensors know when

and what product has

been picked off shelf

People Machine People


Digestible sensor activated by

stomach fluids after

swallowing

Signal detected by

microelectronic skin-patch and

relayed to smart phone app

Records date and time, type

of drug, dose and basic

physiologic parameters

Sand-sized chip powered by

body fluids produces voltage

read by wireless skin patch

Proteus ingestible event marker is an FDA-approved sand-sized chip

integrated into pills - uses body fluids to activate and send signal via skin patch

to smartphone app

People Machine People



Employees Workers

Now 2020

Changing dynamics of the

workplace driven by

globalization, rise of

freelancers/experts, and

Gen X &Y expectations

Need to attract and retain

best employees

Demand for better internal

and external collaboration

Drive to lower costs and

increase innovation

Energy Inefficient Energy Efficient

Central and Peripheral Connected and Peer


Objectives

Depict “future of work” to help senior executives understand its value and invest in IT to meet financial expectations

Create strategies and roadmaps to achieve the future vision

Recommended / Delivered

Current-state assessment

6 day-in-the-life storyboards: future state

4 roadmaps to evolve to social enterprise

Economic model to capture year / year benefits

$600 million in projected savings

Status

Security foundation underway

Collaboration rooms being built

Employee Experience team formed with branded offerings

Source: Cisco IBSG, 2013 Source: Cisco IBSG, 2013

Large Food & Beverage Company




2013 Current state

More intelligent design of

machines; safer working

conditions; greater control

of instrumentation and

production conditions

Automated assembly machines are expensive

and complicated to create and install

Quality controls rely on human perception and

dexterity

2022 Potential with IoE

Often inflexible and costly product-line changes

Reliance on low-cost manufacturing; employees

with IT and data interpretation skills are costly, scarce

Inefficient use of key inputs for production; lack

of flexibility among assembly locations

Socialization of required knowledge flattens skills curve;

maximizes access to people with the right skills at lower costs

Reduced costs as automated tools become less expensive to manufacture / implement

Sensors help workers improve product quality

Reduced waste (materials, energy); greater freedom and agility to reallocate

production / optimize inputs

Increased revenues from greater product variations


2013 Current state



Inefficiently negotiated

pricing or inflexible terms

Excessive inventory and

warehousing costs

Frequent vendor turnover,

or vendors that should be

turned over

Wrong deliveries or inaccurate

billing or payments cause

frequent rework

Back-office processes

increasingly automated

and optimized

Least-cost pricing more

prevalent through multiple

vendors or flexible terms

Costs reduced due to

linkages with production

and order schedules

Vendors more easily vetted;

improved supplier management

techniques

Linkages among production

departments (order receipt,

supply chain, vendor

management, inventory

management, AP/AR, etc.)

become automated and

optimized


2013 Current state



Employee devices paid

for by employer; corporate

is liable

Companies pay for data

plans on corporate-owned

mobile phones

High cost of support and

maintenance

Loss of productivity / creativity due to required use of standard

company equipment

Employees work with device of choice, enhancing productivity,

creativity, and overall work satisfaction

Employees own, pay for, and

are liable for work devices

Employees buy their own

data plans, reducing OpEx for

their employers

High degree of self-support,

lower cost of device

maintenance

Increased capacity for

work and faster new

technology adoption

drive knowledge worker

productivity while

reducing IT TCO


2013 Current state



Employees work with a

diverse set of independent,

unconnected devices

High degree of face-to-face

meetings and collaboration

Stagnant / slow-growing

employee productivity in

traditional setups

Time spent commuting and

traveling largely unproductive

Travel time spent more

productively through mobile

collaboration tools

Greater connectivity between

people and devices

High degree of virtual

collaboration

New ways of collaboration

enable new and untapped

productivity improvement

Increased collaboration

and enhanced productivity


2013 Current state



Large travel budgets

Time spent in travel largely

unproductive

Employees reluctant to

collaborate remotely

Significant

environmental costs Lower environmental costs

Reduced travel budgets

Material time savings and

increased productivity

Employees embrace remote

collaboration

Reduced travel costs,

increased employee

productivity, lower

resource consumption


2013 Current state



Manual processes; labor-

intensive surveillance

High costs associated with

stand-alone systems

(power and rack space)

Geographically dispersed

facilities and personnel

Post-event forensic

analysis requires

significant human effort

Pulse analytics enables

investigators to go directly

to relevant video stream

Automation in protection,

detection, assessment, and

response to threats

Integrated systems

contribute to lower TCO

Centralized security

management

Reduced TCO, fewer security breaches, higher human and

technology productivity


2013 Current state



Fixed costs: significant up-

front investment

Stand-alone applications

High costs to manage

security solutions on

multiple endpoints

Need to hire security

professionals

Outsource security to

experts; focus on core

expertise

Variable costs: costs based

on actual usage

Increased synergies

and cost savings

from convergence

Centrally deployed

and managed

Reduced TCO and fewer security breaches


2013 Current state



Indistinct use of fertilizers and

irrigation leads to waste

Excess fertilizers pollute

ground water and streams

Excessive use of fertilizers

limits yields

Limited information available

to increase yields

Forecast and analytical

models help

optimize yields

Sensors improve fertilizer

and irrigation efficiency

Promote sustainable

farming and conserve

natural resources

Greater efficiency of

plant cropping

Improved use of

fertilizers, higher food

sales; greater irrigation

and energy efficiency


2013 Current state



Significant downtime

between interactions

High turnover presents

quality control and

training issues

Coordination of information

among buildings or

office locations

Visitor or customer wait times

during peak periods

Can be time-zone-adjusted to

handle peak loads; capacity

always adjusted to needs

Ability for one person to

handle multiple locations

permits efficient scaling

Less turnover, centralized

hiring, minimal

coverage issues

Consistent multi-location

information provided

at once

Video and information

networks allows for scaling of

building and office personnel.

Staffing need not be on-site to

permit lower-cost sourcing


2013 Current state



Pre-recorded advertising,

displayed in pre-

determined order

Low direct impact of digital

advertising on sales

Moderate level of digital

signage penetration

Besides advertising, digital

signage used for information

dissemination only

Digital signage informs and

also offers first-level

instruction / control

Intelligent displays show most

appropriate messages to

customers

Increased effectiveness

of digital advertising in

driving sales

High levels of digital

signage penetration

Increased potential of

digital signage to add

value and influence sales


2013 Current state



Customers anonymous until

they identify themselves to

the teller; limited insights

Advisers consult with

customers in-person

Customers view static

marketing messages,

standardized across

branch network

Hardware and applications

installed at each desktop

and teller station

Migration of majority of

application processing

to single box

Ability to differentiate service

based on customer segment

early in branch visit

Advisers consult with

customers over high-

definition video link

Provide interactive in-branch

product information, tailored by

target audience

Faster time-to-market, better lead generation with reduced leakage, improved

up-sell / cross-sell and customer satisfaction,

lower cost-to-serve



How can you benefit from IoE? Understand how IoE can address business opportunities Agree priorities

What will it take to succeed? Assess top IoE opportunities Identify capability gaps Quantify value at stake and overall business case

What steps can we take now? Develop blueprint for change Build roadmap, plans and designs Solution pilot(s)

How do we deliver? Advanced Services Technical Services Managed and Operate Services


Overall

business

architecture

Overall

operational

architecture 6M 12M 18M 2Y 3Y 5Y

Cap

ab

ilitie

s

So

lutio

ns

Wi-Fi Upgrade

Video Surveillance

Video Analytics

Connected Security

BYOD

Checkout Optimization

Find-My-Product

Phased/Prioritized Approach

-30

-20

-10

0

10

20

30

40

Y1 Y2 Y3 Y4 Y5

$M

New Revenues

Time To Market

Cost Savings

Operations

Cloud

Collaboration

Network

Value (NPV) ROI Payback Peak Funding

$200M 62% 21M $31M

Overall IoE Financials/Business Case

Roadmap

Summary


• Delivery Executives

Program Management

Relationship Management

• Business Consultants

Financial Modeling

ROI Calculations

• Domain Specialists

Knowledge of the specific domains (Retail, FSI, Healthcare …)

• Technology Team

Network engineers + architects

Infrastructure specialists (DC, Cloud …)

Use Cases

Technology Architecture

Business Models

Program Management

Click to edit Master title style

• Click to edit Master text styles

– Second level

• Third level

– Fourth level

» Fifth level

12/11/2013 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 40

Technologies IT Skills

Basic Networking Technologies

IPv6

Data Centre, Cloud

Collaboration

Web

Mobile Internet, 4G

RFID

Sensors

M2M

Data Management,

Analytics, Telematics

Information

Management

GPS, Mapping

Applications

Social Network

Technologies

Adhoc

Network Robotics

Smartphone

Applications

SmartGrid

Storage

Technologies

City/Road/Traffic

Infrastructure

Basic Networking Skills : Routing, Switching, Wireless,

Security, WAN, Management

Routing and Switching, Architecture Design, Security, Storage Networking, Storage,

Big Data, Virtualisation, Cloud applications, Finance and business skills, Project

Management, modeling

Voice, Video, Conferencing

Web development/programming, HTML5, XML, Scripting

Languages, Database design, Data integration & Analysis/Analytics

Mobile Applications Development and Management, 4G

Wireless, Wireless Mesh Networking, Applications :

Operating Systems, XML, SQL, Scripting Languages,

PHP, Ruby, Lua

Documents

The Internet of Everything (IoE)€¦ · IoE brings together people, process, data, ... Connected Gaming and Entertainment High 18. Digital Signage Low 19. Virtual Private Education