Upload
john-earnhardt
View
6.111
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Slides from global media and analyst roundtable with Cisco President Rob Lloyd and Cisco Consulting GM Joseph Bradley.
Citation preview
Cisco Confidential 1© 2013 Cisco and/or its affiliates. All rights reserved.
The Internet of Everything (IoE) Value Index
www.InternetofEverything.com#IoE
June 19, 2013
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
Rob Lloyd,Cisco President of Development and Sales
Joseph Bradley, General Manager, Cisco Consulting Services
Cisco Presenters:
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
Evolution of the Internet
INTELLIGENT CONNECTIONS
Email Web Browser Search
E-commerce Digital
Supply Chain Collaboration
Social Mobility Cloud Video
Connecting: People Process Data Things
Internet ofEverything
Digitizethe World
ImmersiveExperiences
Digitize Interactions (Business &
Social)NetworkedEconomy
Digitize BusinessProcessConnectivity
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 4
Internet of Everything
The Opportunity Ahead and Where It Stands Today:
THE DEFINITION:The Internet of Everything is the networked connection of people, process, data and things. The benefits of IoE are derived from the compound impact of connecting people, data, process and things, and the value this increased connectedness creates as “everything” comes online.
IoE has the potential to increase global corporate profits by about 21 percent OVER THE NEXT DECADE
(2013-2022)
FOR A TOTAL VALUE OF
$14.4 trillion (net profit)
The Internet of Everything (IoE) will enable global businesses to
generate at least
$613 BILLION in Global Profits in 2013
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
The Internet of Everything Value Index
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
• SG&A and CoGS reduction from improved business process execution
• Improved capital efficiency
• Improved labor efficiency• Fewer or more productive man-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
Internet of Everything:How It Delivers Value — and How Much Is at Stake
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
ses
Internet of Everything: How Much Value Will Firms Realize in Calendar Year 2013?
Study executed by the
CISCO CONSULTING SERVICES
RESEARCH & ECONOMICS
PRACTICE with advice on questionnaire
development provided by the MIT Center
for Digital Business
Fielded in 12 OF THE LARGEST
GLOBAL ECONOMIES (70% of
worldwide GDP): Australia, Brazil,
Canada, China, France, Germany, India,
Japan, Mexico, Russia, U.K., and U.S.
ESTIMATES ACTUAL VALUE
REALIZED BY FIRMS IN 2013 as a
share of potential Value at Stake;
explores key IoE enablers (people,
process, data, things) that drive value
Conducted ground-breaking online
survey of 7,501 BUSINESS AND IT
DECISION-MAKERS, split between
enterprises and mid-sized companies
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
IoE Value Index:$1.2T of Value at Stake Is Available to Firms in CY2013
Global Value at Stake2013-2022
(10-year total)
$14.4T*2013$1.2T
Value at Stake 2013 (Jan. – Dec.)
$1.2T
Value realized in
2013
IoE Value Index
$613B(53%)
$544B(47%)
Value “left on table”
in 2013
Note: chart is not to scale* $14.4T is conservative because it is based on a set number (21) of private-sector use cases and discounts future cash flows due to uncertainty around privacy and regulatory issues.
• IoE will generate at least $613 BILLION IN GLOBAL PROFITS IN 2013 with another $544 billion available if companies adjust strategies.
• The United States ($253 BILLION), China ($76.9 BILLION) and Germany ($54.4 BILLION) are realizing the greatest absolute value in 2013.
• Firms in developed markets are now realizing the greatest share of IoE value. However, the narrow range (15.2 PERCENT) between the top and bottom countries, highlights the parity among firms worldwide.
• Business leaders in Emerging Countries clearly expect to Leverage IoE to their advantage.
• The key drivers of the Internet of Everything value in 2013 are supply chain, at $158.7 billion, and customer experience, at $145.2 BILLION.
• IoE-generated profits underscores that Size of Company Is Not an Indicator of who will best leverage the Internet of Everything.
• Many business leaders around the globe believe that IOE WILL HELP DRIVE Higher Wages, Job Growth and Improvement in Information Security.
Internet of Everything: Just The Facts
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
To Capture More Value in The IoE Economy, Companies Must:
Invest In High-quality Technology
Infrastructure and Tools
Adopt and Follow
Inclusive Practices.
Develop Effective
Information-Management
Practices
Internet of Everything Value Index:The Tech Roadmap to IoE Profits
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
To Maximize Value from IoE, Firms Should Focus on the IoE-Driven Capabilities that will Benefit Their Industries Most:
Internet of Everything Value Index:The Tech Roadmap to IoE Profits
MANUFACTURING FIRMS: real-time, multidimensional data analysis; integrated
video collaboration; remote tracking of physical assets.
ENERGY FIRMS: integration of sensor data; ability to locate experts;
predictive analytics.
RETAILERS: data visualization and predictive analytics; BYOD; location-
based marketing.
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
Key Takeaways• The Internet of Everything is the networked connection of
people, data, process and things.
• IoE is poised to generate at least $613 billion in profits in 2013 by creating greater efficiencies and better customer experiences.
• Many business leaders around the globe believe that IoE will help drive higher wages and job growth, and improvement in information security.
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Jeff Hagins,CTO, SmartThings
Guest Presenters:
Bruno Magrani,Researcher, Center for Technology and Society at the School of Law of the Rio de Janeiro Getulio Vargas Foundation (FGV)
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
SmartThings: “Conceptual Layers of the IoE”
Connected Devices
Connectivity, Transport, & Event Routing
Physical Graph
User-Managed Security
Accessibility & Control
Application (Intelligence & Predictability)
User Experience
© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
Q&A
Please visit www.InternetOfEverything.com
Thank you.