23. Value at Stake by Geography and Industry
Initial Top 6 Contributing Verticals
Manufacturing 27%
Retail Trade 11%
Information 9%
Finance / Insurance 9%
Healthcare (private sector only) 7%
Education Service (private only) 6%
Value at Stake ~ $19T
Source: Cisco Internet Business Solutions Group, 2013
US
32%
Canada
$495 B
Europe
30%
China
12%
Japan
5%
RoW
18%
26. Connecting the unconnected…
Solve Environmental Challenges Thrive in Smart Communities Live Enriched, Healthier Lives
Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency
… to change the way the world works, lives, plays, and learns
45. Are you Ready?
Rick Huijbregts
rhuijbre@cisco.com
@CiscoSCRE
@Rick_Huijbregts
Notas del editor
The World is changing, we’re going through massive rebalancing in economic growth, socially – talent re-shuffling, and environmentally – natural resources.THE world will consume 40% more energy in 2030 than it does today, according to BP's Energy Outlook – The Economist, Jan 2012http://www.economist.com/blogs/graphicdetail/2012/01/daily-chart-14Many CIOs also understand the value the network brings to the business. They are tasked with delivering the best tools to enable the business and drive employee productivity. But the CIO must also balance the needs of the users with the needs of the business – ensuring the business is secure and its IP is protected.How does the CIO deliver a “work, your way” experience that the next generation demands?The pace of innovation continues to accelerate, making it difficult for companies to keep up with innovations as they enter the market. Companies recognize that they must not only innovate, but innovate faster. To achieve this goal, companies should establish an innovation process that: provides access to a variety of innovation sourcesmills the best ideas from that processapplies those innovations to products and servicesThis process should increase the impact and value of innovation and decrease the time required to get products to market.
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
The pace of innovation continues to accelerate, making it difficult for companies to keep up with innovations as they enter the market. Companies recognize that they must not only innovate, but innovate faster. To achieve this goal, companies should establish an innovation process that: provides access to a variety of innovation sourcesmills the best ideas from that processapplies those innovations to products and servicesThis process should increase the impact and value of innovation and decrease the time required to get products to market.
Phases of the Internet Economy RevolutionConnectedCommercialImmersiveMobileSocialUbiquitous
Important to step back and define the Internet of Everything The Internet of Everything is the networked connection of people, process, data and things. The benefit of the IoE is derived from the compound impact of connecting people, data, process and things, and the value this increased connectedness creates as “everything” comes online. IoE is creating unprecedented opportunities for organizations, individuals, communities and countries to realize dramatically greater value from networked connections between people, processes, data and things. How does the Internet of Everything differ from the Internet of Things? Internet of Everything (IoE): The Internet of Everything is the networked connection of people, process, data and things. Several technology transitions – including IoT, increased mobility, the emergence of cloud computing, and the growing importance of big data, among others – are combining to enable IoE. Internet of Things (IoT): The Internet of Things is the networked connection of physical objects.IoT is one of the many technology transitions that make up IoE. Organizations are realizing the value of the IoE today. As more people, processes, data and things are connected the potential for greater value will increase.
By geography, the amount of Value at Stake is well distributed across the major geographies: United States at $4.6 trillion, Western and Eastern Europe at $4.32 trillion, China at $1.73 trillion, Japan at $0.72 trillion, Canada at $0.43 trillion and the rest of the world at $$2.6 trillion. From an industry perspective, four out of 18 industries make up more than half the total Value at Stake. The amount includes manufacturing at 27 percent, retail trade at 11 percent, information services at 9 percent, and finance and insurance, also at 9 percent. The remaining 14 industries range between 7 percent and 1 percent. Use cases that have the most relevance for Cisco. Smart grid: Electrical grid using network connections—from production to customers—to better understand user behavior and improve the reliability, economics, and sustainability of the production and distribution of electricity.Smart buildings: Intelligent and converged IP network of electronic devices that monitors and controls facilities services, including mechanical, electronics, HVAC, and lighting systems in a building to achieve greater energy efficiencies and cost savings.Connected healthcare and patient monitoring: Better-connected device and data-driven patient management, resulting in improved healthcare effectiveness and efficiencies.Smart factories: Manufacturing factories where adding connectivity in processes and applications increases automation, reduces inventories with real-time inventory supplies, and cuts production and supply-chain costs.Connected education: Better application of technologies helps scale teachers, faculty, and educational content; increase new ways of learning; and transform the educational model—giving students curriculum flexibility to learn at their own pace, anywhere / anytime / using any device.Connected commercial vehicles (ground): Commercial fleet ground vehicles using an integrated platform of control systems to automate tasks such as navigation, path optimization, and logistics improvements.Connected marketing and advertising: Broad IT and social applications for marketing and advertising transform the way companies can engage with customers, analyze their behavior, and optimize the impact of their interactions. Examples include location-based services, viral marketing, and mobile advertising. Enablers include Big Data analytics and cloud.Connected gaming and entertainment: Includes SP and software vendor revenues and cash flows from all applications of online gaming and entertainment; does NOT include non-revenue-generating gaming activities (such as subsidized advertising).
Greater reach and scaling of professors; new business models: scale globally without physical venue constraints; reduced textbook costs
Reduced time in traffic; lower accident rate; lower fuel, insurance, and repair costs
Connecting sensing, measurement, and controls in real time improves reliability, cost, and alignment between supply and demand
More intelligent design of machines; greater control of instrumentation and production conditions
Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
What will it take to create these cities/communities… new visionary leadership & the creation of New Business Models.Imagine the huge opportunity for new services. Technology will be the key enabler.Only 2% of infrastructure spend – 2% of a trillion dollars is spent on technology – even an increase of 1%? To enable this we should together drive:Visionary leadership is key – finding people with similar mindsets, passion and vision for the future…that’s really key.Global open standards – this is what we do! We did it 25 years ago with the internet…bringing together different protocols and making them all work together. That’s not something just anyone can do.Smart regulation – we need leaders to step up….LEED certification….give benefits to people who implementPublic private partnerships – this has been key to our success so far.And a New ecosystem – working with developers, people like Schneider ElectricBut it takes all five of these factors…without one, it changes completely.