Harvard GSD Exec.Ed Leading Organizations _ lecture, february 5 2014


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60 minute lecture to Harvard GSD Exec. Edu Leading Organizations course. February 5th. Boston. MA.

Trends in technology. Smart Cities. Impact on business, infrastructure, and real estate. What it takes to manage this change. Our role and participation in the journey of City transformation.

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  • 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.
  • DRAFT ONLYIt’s in this phase where we connect more than just things and data. We also connect people and process like never before. But before I explain further, let’s look at where we’ve been.The Internet can be seen in four distinct waves, each phase having a more profound effect on business and society.The first phase—about 20 years ago—was Connectivity. This is when getting connected online felt like a miracle. During this “fixed” computing stage, you had to go to the device to connect, your connection speed was limited, and content was just beginning to populate the “Net.” Still, it was an exciting time.Then, in the Networked Economy, we saw the birth of eCommerce and digitally connected supply chains. It changed the way we shopped—and how companies reached new markets.We’re currently in the Immersive Experiences phase, which is dominated by social media, collaboration, and widespread mobility on a variety of devices. This is completely transforming the world of work. At the same time, we’re entering the Internet of Everything. This phase brings together people, process, data, and things, turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunities for businesses, individuals, and countries.
  • 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).
  • 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
  • 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.
  • Harvard GSD Exec.Ed Leading Organizations _ lecture, february 5 2014

    1. 1. Future of Smart Cities: How can organizations contribute to economically and environmentally sustainable cities? Leading Organizations 2014 Dr. Rick Huijbregts © 2010 Cisco and/or its affiliates. All rights reserved. Harvard Faculty Club 5 February 2014 Cisco Confidential 1
    2. 2. How can planners, developers, architects, city-builders (etc) play a constructive role and pursue economic opportunities in the shaping of our future cities that are experiencing the impact of the technology revolution. • Video on Smart Barcelona: http://youtu.be/TCbvxb5t5_8 • Case study on Smart Songdo: http://www.rickhuijbregts.com/wp-content/uploads/2013/03/Songdo-v1.0.0.pdf • Video on Smart Toronto: http://youtu.be/M3iR5h5aagw • Internet of Everything for Public Sector (Smart + Connected Communities) in PDF: http://internetofeverything.cisco.com/sites/default/files/docs/en/ioe_public_sector_vas_white%20paper_121913final.pdf • Internet of Everything for Private Sector in PDF: http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
    3. 3. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
    4. 4. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
    5. 5. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
    6. 6. Percentage Penetration of Potential World Markets 100 80 60 40 20 0 0 Cellular 10 PC 20 30 Internet 40 Television 50 60 Radio 70 80 VCR Source: IBM‟s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004 © 2010 Cisco and/or its affiliates. All rights reserved. 90 100 Electricity 110 120 Telephone @CiscoSCRE 130 140 Automobile #CiscoSmartTO Cisco Confidential 7
    7. 7. from 2010 to 2020, the digital universe will grow 50-fold Source: IDC Digital Universe in 2020 Report © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
    8. 8. 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 Source: Cisco IBSG, Cisco VNI Global Forecast, 2011–2016 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
    9. 9. Business and Societal Impact Networked Economy Connectivity Digitize Access to Information • Email • Web Browser • Search Digitize Business Process • E-commerce • Digital Supply Chain • Collaboration Immersive Experiences Digitize Interactions (Business & Social) • • • • Social Mobility Cloud Video Internet of Everything Digitize the World Connecting: • People • Process • Data • Things Intelligent Connections © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
    10. 10. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
    11. 11. 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 12
    12. 12. Value at Stake ~ $14.4T Initial Top 6 Contributing Verticals Manufacturing Retail Trade Information US 32% China 12% Europe 30% Canada 3% $400B 11% 9% Finance / Insurance 9% Healthcare (private sector only) 7% Education Service (private sector only) Japan 5% RoW 18% 27% 6% Public Sector ~ $4.8T Source: Cisco Internet Business Solutions Group, 2013 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
    13. 13. 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 © 2010 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
    14. 14. 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
    15. 15. Connectivity Health management Smart home, Energy management Quality of Life, Experience Participation Business and Industry Infrastructure Government WHO BENEFITS Citizens
    16. 16. Business and Industry Local player in global economy Economic development, attraction Business growth and productivity Customer experience Collaboration and Innovation Infrastructure Government WHO BENEFITS Citizens
    17. 17. Business and Industry Infrastructure Safety and Security Energy management Efficiency and productivity Cost reduction Urban mobility (congestion, transit) Government WHO BENEFITS Citizens
    18. 18. Business and Industry Infrastructure Government Workforce productivity Cost reduction Distributed delivery of gov‟t services Citizen engagement, Collaboration City planning and Development WHO BENEFITS Citizens
    19. 19. 1. IP is the Standard – Building systems become native IP 2. Convergence – One base building Network, systems share infrastructure 3. Real time data and control – Tenants demand „Ownership‟ 4. Power-over-Ethernet – transforming M&E, energy efficiency 5. Networked Energy management – convergence of Energy Services 6. Building Analytics – Cloud-based building performance © 2010 Cisco and/or its affiliates. All rights reserved. 20 Cisco Confidential 20
    20. 20. Technology (r)evolution Mobility / Video Cloud New Breed of Apps Growth & Productivity Opportunities New Business Models User Experience & Expectations Internet of Things Big Data & Analytics Globalization Security & Regulatory Compliance Business Implications © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
    21. 21. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
    22. 22. Amazing Things happen When You Connect the Unconnected
    23. 23. 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 24
    24. 24. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
    25. 25. • Invest in Who Cares Universities, Research Chairs, Governments, Start-ups and incubators • Shape the eco-system Unconventional partnerships that lead to revenue • Public-Private Partnerships No-one can do it alone • Be Bold Cannibalize if necessary • Encourage and participate in Collaborative Eco-systems Capitalize on the Power of the Community © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
    26. 26. • • • • GREENFIELD • DEMONSTRATION • FOUNDATION • 1M sq.ft “new” City • Giga-neighborhood • 2,000 acres revitalization • IT part of City Planning • Testing and validation • Gigabit broadband • Proponents and Critics • Trying to be a “blueprint” • Cost built into real estate • New business models • Partnerships • Portal and “apps” © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
    27. 27. The Internet of Everything Are you Ready? Rick Huijbregts rhuijbre@cisco.com @CiscoSCRE @Rick_Huijbregts