2
The world is changing … and it’s changing very fast …
And:
• Micro
• Camera
• Touch screen
• GPS
• Bluetooth
• GSM
3
The 3rd Platform Era
• From 2013 through 2020, 90%of IT industry growth will
be driven by 3rd Platform technologiesthat, today,
represent just 22% of ICT spending.
• 80% of competitive energy should be focused on
strengthening 3rd Platform offerings and capabilities
• First wave of Innovation Accelerators that depend on the
3rd Platform: Robotics, Internet of Things (IoT),Natural
Interfaces, Cognitive Systems, 3D Printing, Next Generation
Security
• Line of business executives will be involved with 80% of
IT sales by 2016, decision-maker for 40%
DigitalEnterprisewave–RideitorUnderit?
4
7.26.8 7.6
IoT Is Here Now – and Growing!
Rapid Adoption
Rate of Digital
Infrastructure:
5X Faster Than
Electricity and
Telephony
50 Billion
“Smart Objects”
50
2010 2015 2020
0
40
30
20
10
BILLIONSOFDEVICES
25
12.5
Inflection
Point
TIMELINE
Source: Cisco IBSG, 2011
World
Population
The New Essential Infrastructure
5
Political
Policy in public
safety, utilities,
healthcare
Smart meter
adoption
E-call requirements
for new car in EU
Increasing role of
regulators in
privacy and safety
Economy
Globalization
Urbanization
Demographic shifts
IoT economics
progressively more
attractive
Improved business
efficiency
Social
Rise in power of
smarter consumer
Social media
explosion driving
new behaviors
Health and
wellness
Green lifestyle
Technology
Declining cost of
sensors, compute,
bandwidth and storage
Proliferation of devices
Miniaturization,
portability of devices
Social, Mobility, Big
Data/ Analytic, Cloud
(SMAC) technologies/
The 3rd
Platform (IDC)
Key Forces Driving Internet of Things
7
IoE Consists of M2M, M2P, and P2P Connections
Machine-to-Machine (M2M)
• Data sent / received from one machine
(thing) to another
• Often called the “Internet of Things”
Machine-to-Person (M2P)
• Data sent / received from a machine (thing)
to a person
• Often called “data and analytics”
Person-to-Person(P2P)
• Data sent / received from one person
to another
• Often called “collaboration”
CONNECTION TYPE
IoE Value
(2013-2022)
$7.4
Trillion
$4.6
Trillion
$7.0
Trillion
8
More Important
Less Important
Big Data becomes Open Data for Customers, Consumers to Use
Information
Knowledge
Wisdom
(Scenario Planning)
Data
IoT Transforms Data into Wisdom
IoT Is Primarily Not About Things – It’s About Insights from Data
Big Data Doubles
Every TwoYears
90% of world’s data created in last
2 years
More new data generated in 2012
than prior 5,000 years
By 2020, 40% of data will come
from sensors
Walmart collects 2.5 petabytes of
data hourly from customer
transactions
Singapore generates several
Terabytes of data every day
McKinsey & Company | 11
6 categories illustrate the breadth of potential IoT applications
Category Description
Achieving real-time awareness of physical environmentEnhanced
situational
awareness
B
Control consumption behavior to optimize resource use
across a network
Optimized
resource
consumption
E
Automated control of closed (self-contained) systemsProcess
optimizationD
Assisting human decision-making through
deep analysis and data visualization
Sensor-driven
decision analyticsC
Monitoring the behavior of persons, things
or data through space and time
Tracking behavior
A
Automated control in open environments
with great uncertainty
Complex
autonomous
systems
F
Information
& analysis
Automation
& control
McKinsey & Company | 12
The Internet of Things can create value through several economic levers
Levers
Create new dynamic pricing models for inputs
and outputs
Create new service models and products to
monetize information assets
Improve safety for consumers and workers
Increase efficiency and reduce costs
of energy, materials, capital, and labor
Allow new customer interactionswith
opportunities to engage end-users on a dynamic,
ongoing basis
Enable new
ways of doing
business
Improve quality of delivered products
and servicesEnhance & optimize
today’s operations
18
Key Takeaways
The World is Becoming Increasingly Diverse and Digitalized … The 3rd Platform and
Accelerators including IoT across customers, employees/ LoBs, partners driving
sustainable growths and innovations … Digital Enterprise wave, Ride it or Under it
A New Data Driven World …. Chief Data Officer (?)
ICT … Essential Infrastructure …. IT and OT alignment/ convergence … CTO (?)
Transformational Opportunities … Generate $19T Economy Value in next 10 years
New Ecosystem Will be Essential … win-win-win- world
IoT is now … IoE: new opportunities ...
TOMORROW Start Here
What are Your Next Steps to capture the opportunities?