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CCET-GBC Fueling Innovation for Construction and Real Estate with IoE

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Lecture November 7th, George Brown College …

Lecture November 7th, George Brown College
CCET
Fueling Innovation for Construction and Real Estate with the Internet of Everything (IoE)

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  • 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-14
  • 4 exabytes of unique information generated in 2012; more than the previous 5000 years combined
  • The amount of new technical information is doubling every two years... For students starting a four-year technical degree this means that...half of what they learn in their first year of study will be outdated by their third year of study.
  • IDC projects that by 2020 the digital universe will reach 40 zettabytes (ZB), which is 40 trillion GB of data, or 5,200 GB of data for every person on Earth. This amount exceeds previous forecasts by 5 ZBs, resulting in a 50-fold growth from the beginning of 2010.
  • We define the Value at Stake as 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)$14.4 Trillion is the Value at Stake for the Internet of Everything$9.5 trillion (or 66%) from industry-specific use cases such as Smart grid, Connected commercial vehicles, etc$4.9 trillion (or 34%) from cross-industry use cases such as future of work (telecommuting), travel avoidance, etc.IoE has the potential to grow global corporate profits by ~21% in aggregate by 2022 Value at Stake includes: Shifts of benefits between competing firms in an industryShifts of benefits between different industriesNew-to-the-world revenue growth from innovationCost savings from more efficient processesAllowances for implementation costsValue at Stake does not include: Extent of losses at firms that don’t transform Consumer or government value creation – this is a private sector analysisSocial benefits Value estimates for reduced risk of operations The Five Drivers that Fuel the Value at StakeAsset UtilizationSelling General & Administrative Expenses (SG&A) and Cost of Goods Sold (COGS) reduction from improved business process executionImproved capital efficiencyEmployee ProductivityImproved labor efficiencyFewer or more productive man-hours Supply Chain/Logistics EfficiencyImprove process efficiencyReduce waste in supply chainImproved Customer ExperienceImproved customer lifetime valueAddl. Market share (more customers)InnovationImprove Research Development & Engineering (RD&E) speed, reduce Time to Market (TTM) Create new business models and new sources of revenue
  • Massive, global-scale change occurring at rates faster than could ever be predictedtop 10 jobs in 2010 did not exist in 2004: ie: Social Media/Online Manager, Elder Care Services, Sustainability Manager, SEO Optimization Specialist, Online Advertising Manager, User Experience Managerhttp://www.forbes.com/sites/meghancasserly/2012/05/11/10-jobs-that-didnt-exist-10-years-ago/FROM DUARTE: We referenced the above article for specific job titles, and reworded the title accordingly.
  • 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
  • 15 billion new networked devices by 2015 (VNI)According to the Cisco Connected World Technology Report, more than three of every four employees have multiple devices, and one in three employees globally uses at least three devices for work. The number of shipped tablets is set to jump from 16.1 million units (of which around one million were bought by businesses) in 2010, to 147.2 million in 2015, thereby representing around a third of all online US consumers, according to Forrester.56% of US information workers spend time working outside the office (Forrester)
  • 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.
  • 99% of the “things” in the world are still unconnectedThe Internet of Everything is the networked connection of people, data, process 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.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.$14.4 trillion in “Value at Stake” can be created or will migrate among companies and industries based on their ability to harness IoE over the next decade (2013-2022)The Internet of Everything Value Index found that IoE is expected to enable global private businesses to generate at least $613 billion in profits in 2013 by creating greater efficiencies and better customer experiences. An additional $544 billion could be generated in 2013 if companies more effectively harnessed IoE capabilities.According to the Value Index, many business leaders around the world believe that IoE will help drive higher wages and job growth, and improvement in information security. Real-world use cases demonstrate the potential value of IoE for companies and industriesBecause the stakes are high — over 10 years, companies stand to lose more than a year of profits if they do not embrace IoE — the time to act is now 
  • Transcript

    • 1. Fuelling Innovation in Construction, Real Estate with the Internet of Everything Rick Huijbregts @CiscoSCRE Executive in Residence George Brown College VP Industry Transformation Cisco Canada © 2013 Cisco and/or its affiliates. All rights reserved. TM “TORONTO 2015” and logo are trademarks of the Toronto Organizing Committee for the 2015 Pan American and Parapan American Games used under license. Cisco Confidential 1
    • 2. Social Demographics Aging Shrinking Hypergrowth © 2010 Cisco and/or its affiliates. All rights reserved. Economics Environmental/ Energy By 2030 world energy demand will increase by 40% Cisco Confidential 2
    • 3. “ Western Union, 1875 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 3
    • 4. “ Ken Olson, Digital, 1977 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 4
    • 5. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
    • 6. Source: Telefonica I&D 2011 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
    • 7. Source: from Did You Know by Fisch, McLood and Brenman © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
    • 8. Source: IDC Digital Universe in 2020 Report © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
    • 9. @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 9
    • 10. Billions (devices) 50 Billion 50 40 “Smart Objects” 30 Inflection point 20 25 12.5 10 6.8 7.2 7.6 0 2010 2015 2020 World Population Source: Cisco IBSG white paper “The Internet of Things”, April 2011. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
    • 11. What Fuels Internet of Everything Value At Stake? Asset Utilization Employee Productivity Supply Chain/Logistics Customer Experience Innovation The Internet of Everything has the potential to grow global corporate profits by 21% in aggregate by 2022. Source: Cisco Internet Business Solutions Group, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
    • 12. Source: Forbes © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
    • 13. Mobility / Video Cloud New Breed of Apps Growth & Productivity Opportunities New Business Models User Experience & Expectations © 2013 Cisco and/or its affiliates. All rights reserved. Internet of Things Big Data & Analytics Globalization Security & Regulatory Compliance Cisco Confidential 13
    • 14. Municipal Command & Control Center Cloud Cloud & & Services Services Smart Grid Responsive Store Factory Optimization Hospital Optimization Home Energy Mgmnt Logistics Optimization Traffic Flow Optimization Comms Network Optimization INTELLIGENT FACTORY INTELLIGENT CITY Intelligent Medical Devices © 2012 Cisco and/or its affiliates. All rights reserved. INTELLIGENT HOSPITAL Connected Ambulances INTELLIGENT HIGHWAY Automated Intelligent Digital Car System Signage Traffic Cameras Source: Intel Cisco Confidential 14
    • 15. 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 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 15
    • 16. 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 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 16
    • 17. Solve Environmental Challenges Citizen Redefine Work Models Thrive in Smart Communities Business Live Enriched, Healthier Lives Infrastructure Focus on Improved Safety Government Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 17
    • 18. 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 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 18
    • 19. Solve Environmental Challenges Thrive in Smart Communities Live Enriched, Healthier Lives 32% meetings avoided $1.4b travel savings Redefine Work Models $ 535M productivity 771k metric ton GHG Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 19
    • 20. 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 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 20
    • 21. 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 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 21
    • 22. @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 22
    • 23. New networked mobile devices by of US Information Workers of IT staff of employees use to keep up with mobile needs spend time working for work @CiscoSCRE Mobility / Video © 2010 Cisco and/or its affiliates. All rights reserved. Cloud New Breed of Apps Internet of Things #CiscoSmartTO Big Data & Analytics Cisco Confidential 23
    • 24. 1967 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
    • 25. The Workplace devices mobility cloud video © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
    • 26. The Workplace devices mobility cloud video © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
    • 27. The Workplace devices mobility cloud video © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
    • 28. The Workplace sustainability devices mobility utilization cloud productivity video © 2010 Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 28
    • 29. The Workplace sustainability devices mobility utilization cloud productivity video © 2010 Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 29
    • 30. The Workplace sustainability devices mobility utilization cloud productivity video © 2010 Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 30
    • 31. The Workplace sustainability devices mobility utilization cloud productivity video © 2010 Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 31
    • 32. The Workplace sustainability devices mobility utilization cloud productivity video © 2010 Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 32
    • 33. Tenant Services High Speed Internet Wireless Unified Communications Interactive Media Digital Signage What about our buildings? IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33
    • 34. Building Services Lighting Tenant Services Elevators High Speed Internet 24/7 Monitoring Wireless HVAC Sensors Unified Communications Interactive Media Digital Signage IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Fire Control Video Security Energy Management Maintenance Management Cisco Confidential 34
    • 35. Building Services Lighting Tenant Services Elevators High Speed Internet 24/7 Monitoring Wireless HVAC Sensors Unified Communications Fire Control Interactive Media Dashboards Digital Signage ` ``` Monitoring IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Video Security ` Submit Energy Management Control Maintenance Management Cisco Confidential 35
    • 36. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36
    • 37. Wireless Networks Enabling easy and cost effective implementation Open Systems Enabling easier data collection and analysis – utilizing both IT and building system open standards Connectivity Most buildings are connected via the corporate IT network – connectivity is the enabler Building IT / Convergence Real time control systems converge with business applications with significant benefits Compelling Business Cases and ROI Through all of the above new business cases exist today for significant CAPEX/OPEX savings in buildings © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37
    • 38. Building and Workplace Design Cost of Design Change Ability to Impact Cost and Functional Capabilities Effort IT Network Design Too Late ! Integrated Building, Workplace & IT Design Lifecycle Cost 25–30 Years 25% Strategy © 2010 Cisco and/or its affiliates. All rights reserved. Design 75% Construction Operation Cisco Confidential 38
    • 39. 39
    • 40. 40
    • 41. 41
    • 42. Creation of a New Industry Visionary Leadership Global Open Standards Smart Regulation Public Private Partnerships @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. New Ecosystem #CiscoSmartTO Cisco Confidential 42
    • 43. of the World is Still Not Connected © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 43
    • 44. “ Mahatma Ghandi @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 44
    • 45. Are you ready? © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 45
    • 46. Questions? @CiscoSCRE Thank you. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 46