Conference Board of Canada - Rick Huijbregts 10 May 2013

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Tomorrow starts Here…

Data, Technology, and InnovationPlatform for Change

Rick Huijbregts@CiscoSCRE

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Western Union, 1875

“The telephone has too many shortcomings to be ever considered a means of communication”

@CiscoSCRE #CiscoSmartTO


Henry Ford

“If I would have asked people what they wanted, they would have said: Faster Horses”



Thomas Watson, IBM, 1943

“There is a world market for only five computers”



Ken Olson, Digital, 1977

“There is no reason for any individual to have a computer in his home”


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1993



Climate Group, Smart 2020 report

“ICT can reduce global emissions up to 15% in 2020, five times its own footprint”

Compare to these:



Gartner, United Nations

“Scaling to a Gigabit access could increase GDP by about 3% each year”

Compare to these:


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Pace of Innovation Accelerating

Source: IBM’s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004

0

Cellular PC Internet Television Radio VCR Electricity Telephone Automobile

200 30 40 50 60 70 80 90 100 110 120 130 1400

20

40

60

80

100

10

Perc

en

tag

e P

en

etr

ati

on

of

Pote

nti

al

Worl

d M

ark

ets



Meet your new Boss, in the new World


http://search.dilbert.com/search?p=R&srid=S3-USCDR02&lbc=dilbert&w=technology&url=http://dilbert.com/strips/comic/2010-12-23/&rk=2&uid=833841555&sid=2&ts=custom&rsc=nsqYg1sVWLLB9Vow&method=and&isort=date&view=list&filter=type:comic


Social networking + Mobile



Three Major Trends Are Reshaping the Global Landscape

Economics & Productivity

Environmental/Energy

By 2030 world energy demand will

increase by 40%

Social Demographics

Aging

Shrinking

Hypergrowth



Safety & Security

Access to Healthcare

& Education

Talent Mismatch / Supply & Demand

Energy Mgmt /

Urbanization

What Are the Challenges We Need to Address?

The Main Challenges



The Internet of Everything – “Industrialization of the Internet”

50

2010 2015 2020

Billions (devices)

0

40

30

20

10

50Billion“Smart Objects”

25

12.5

7.26.8 7.6

Inflectionpoint

World PopulationSource: Cisco IBSG white paper “The Internet of Things”, April 2011. @CiscoSCRE #CiscoSmartTO


Smart + Connected Communities Vision

Running a Community, City, Country, and the World

on Networked Information

Running a Community, City, Country, and the World

on Networked Information

Sustainability Services Delivered by Technology #CiscoSmartTO


Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models



Technology Inflection Points

TIME

Routed

Bridged

Switched

Shared

Packet

Circuit

Mobile

Fixed

Video

Voice & DataVirtual

Dedicated

AnyDevice

PC

Centralized

Smart Grid Silo’d

S + CCConnected Industries

Independent

INTELLIGENT NETWORKSThe

Internet

Internet of Everything

Market Transitions

Cloud / Virtualization

Mobility

Big Data Open Data Apps

Collaboration / Video


Media—Energy—Security—Experience


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Any device, AnywhereContent in the Cloud


Ubiquitous Services Delivery


Distributed Health Care to Remote Areas


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Remote Expert for Government Services

The Citizen at the Center of it all


Exponential Growth In IP Traffic

Source: Cisco IBSG, Cisco VNI Global Forecast, 2011–2016

By the end of 2011, 20 typical households generated more internet traffic than the entire internet in 2008

By 2015, 1 Zettabyte of data will flow over the internet

1 Zettabyte: Stack of books from Earth to Pluto 20 Times (72 billion miles)

Every second, one Million minutes of video content will cross the global network in 2015


Video Will Dominate the Information Flow

201320102007

36 Exabytes

180 Exabytes

486 Exabytes

Video Traffic

of all Consumer Internet Traffic willbe Video in 2013

Global Consumer Internet Traffic (Annual)

Source: Cisco Visual Networking Index



McKinsey, Global Institute

“Data volume is growing 44% per year, and will increase 44x between 2010 and 2020”



Power OutagePower Outage

88% of organizations prepared

Failure of Server, Host, Application, Software

Failure of Server, Host, Application, Software

Workforce DisruptionWorkforce Disruption

Increased Workforce Resilience—Key to Business Continuity

Source: Gartner

Only 13% of organizations today are prepared for a major disruption in workforce operations.




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And You?the Places in which you Work?Are You Ready?


The Workplace is Broken

0%10%20%30%40%50%60%70%80%90%

100%

8:00 10:00 12:00 2:00 4:00 6:00

Wasted Assets

Util

izat

ion

Time of Day

•Utilization commonly peaks at 40%

•Given the workplace is the largest long-term asset on most balance sheets, this probably represents the largest area of waste left in corporations

•Offices/cubes are only utilized 30-35% while conference rooms are overbooked.

Utilization is Poor



Line of BusinessLine of Business

SEGMENTED GO TO MARKET

ENT

COMSP

MarketingChannels IBSG

Technology

Services / Support

Manufacturing

Sales

Finance / Legal / HR

BusinessDevelopment / Alliances

Command / ControlCommand / Control

Command and Control Command and Control

Collaboration and TeamworkCollaboration and Teamwork

COLLABORATION and TEAMWORKIBSGIBSG SalesSales

MarketingMarketingChannels Channels

ManufacturingManufacturing

Finance / Legal / HRFinance / Legal / HR

Business Development / AlliancesBusiness Development / Alliances

TechnologyTechnology

Services/ SupportServices/ Support

Business model evolution: everything is changing

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15 billion 3/4of employees use

MULTIPLE DEVICES

for work

Growing Demand for Mobile Access

100%STRUGGLE to

keep up with mobile needs

of IT staff

New networked mobile devices by

2015

56%of USInformationWorkers

spend time working

OUTSIDE THE OFFICE


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Converging All Forms of Human Expression

Helping Business Become “Green”, ProductiveImmersive in real estate utilization and planning

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32% mtgs avoided travel

US$ 1.4Bcost savings on travel

US$ 504M in productivity cost savings

727k metric tons of GHG emissions saved



```

Interactive Media

Digital Signage

Wireless

Tenant Services

High Speed Internet

Unified Communications

IP Telephony

Building Services

HVAC Sensors

Fire Control

Elevators

Lighting

Energy Management

Video Security

Maintenance Management

24/7 Monitoring

`Monitoring

`Control

Submit

Dashboards

The Building Information Network

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Utilities

$2.84

$0.71

25%

Impact on Building Operations

Admin Security Maintenance Cleaning

$1.02

$0.18

18%$0.32

25%

$1.32 $3.12

$0.45

14%

$2.27

$0.13

6%

Savin

gs

OPEX reduction up to 11% annuallyCAPEX savings on mechanical, electrical, and ICT up to 15%


“Don’t bother me with new ideas, I’ve got a battle to fight!”



Sustainable ROIRe-defining Value Engineering

REVENUE

OPERATIONS

OPEX

CAPITALCAPEX

ENVIRONMENT

BRAND

HEALTHLIFE SAFETY

TENANTSocial Sustainability



Global OpenStandards

Visionary Leadership

SmartRegulation

New Ecosyste

m

Public Private Partnerships

What Will it Take?

Creation of a New Industry



Mahatma Ghandi

“The future depends on what you do today”


From Flickr [some rights reserved by Spanish Flea]



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Thank you.

Rick Huijbregts@CiscoSCRE

[email protected]