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IoE value index Brazil

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IoE value index Brazil

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IoE value index Brazil

  1. 1. Cisco Confidential 1© 2013 Cisco and/or its affiliates. All rights reserved.The Internet of Everything(IoE) Value IndexBrazil
  2. 2. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2• IoE Value Index background, keyfindings, model, and definitions• Trends, drivers, challenges, and impact• IoE value realized by country, value driver, companysize, and industry• How to capture value realized
  3. 3. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3Delivering the rightinformation to theright person (ormachine) at theright timeProcessLeveraging datainto more usefulinformation fordecision makingDataPhysical devicesand objectsconnected to theInternet and eachother for intelligentdecision makingThingsConnecting peoplein more relevant,valuable waysPeople
  4. 4. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4• SG&A and CoGS reduction from improvedbusiness process execution• Improved capital efficiency• Improved labor efficiency• Fewer or more productive man-hours• Improved customer lifetime value• Additional market share (more customers)• Improved RD&E speed, reduced TTM• New business models and new sources ofrevenue• Improved process efficiency• Reduced waste in supply chainIoE Valueat Stake:$14.4T(2013-202210-yearNPV)** Net present valueAsset utilization:$2.5TImproved customerexperience: $3.7TSupply-chain / logisticsefficiency: $2.7TInnovation: $3.0TEmployee productivity:$2.5T21usecases
  5. 5. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5• Conducted ground-breaking online survey of 7,501 business and ITdecision-makers, split between enterprises and mid-sizedcompanies• Study executed by the Cisco Consulting Services Research &Economics Practice• MIT Center for Digital Business provided advice on questionnairedevelopment, but not on the IoE Value Index design or Value atStake / value-realized estimates• Fielded in 12 of the largest global economies (70% of worldwideGDP):Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, Russia, U.K., and U.S.• Estimates actual value realized by firms in 2013 as a share ofpotential Value at Stake; explores key IoE enablers(people, process, data, things) that drive value
  6. 6. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6Global Value at Stake2013-2022(10-year total)$14.4T*2013$1.2TValue at Stake 2013(Jan. – Dec.)$1.2TValuerealizedin 2013IoE Value Index$613B(53%)$544B(47%)Value“left on table”in 2013Note: chart is not to scale* $14.4T is conservative because it is based on a set number (21) of private-sector use cases and discounts future cashflows due to uncertainty around privacy and regulatory issues.
  7. 7. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7N=7,501 respondents79%Viewed IoE pervasiveness as having―increased‖ or ―significantly increased‖over past 3 years84%Believe IoE pervasiveness will―increase‖ or ―significantly increase‖over next 3 yearsKey Trends
  8. 8. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 84%5%3%4%1%19%5%6%2%28%2%26%17%42%27%36%32%50%77%47%67%33%65%Information Security - TotalInformation Security -BrazilWages - TotalWages - BrazilJobs - TotalJobs - BrazilDo Not Know Lower / Worse No Change Higher / Better3-Year Outlook as Result of IncreasingIoE PervasivenessN=7,501 respondentsKey Trends
  9. 9. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9N=7,501 respondents#1Accelerating pace ofinnovation#2Satisfying customerdemand for new waysof interacting#3 Need to automatebusiness processesKey DriversTop 3 Business Drivers of IoEIncreasingly globalizedsuppliersNeed to automatebusiness processesGreater use of strategicoutsourcingBrazilTotal
  10. 10. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10#1 New types of devices#2 Volume of datagenerated#3 Cloud-basedtechnologyN=7,501 respondentsKey DriversTop 3 Technology Drivers of IoEBrazilTotalIncreasing availability ofmobile devicesNew types of connecteddevicesLower computing andstorage costs
  11. 11. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11Biggest Downsides of IncreasedIoE PervasivenessN=7,501 respondents#1 New threats to data /physical securityInability of IT systemsto keep pace withchange#2Regulatory orcompliancechallenges#3Key ChallengesBrazilTotalInability of IT systemsto keep paceCompetition from newrivalsRegulatory or compliancechallenges
  12. 12. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12N=7,501 respondents#1 Need to invest in newtechnology infrastructure#2Ability to integrate newtechnologies with legacyIT environments#3Ability to updateprocesses to absorbnew technologiesTop Challenges to Realizing Value from IoEKey ChallengesBrazilTotalStrengthening employees’communication skillsNeed to invest in newtechnology infrastructureRecruiting workers withspecialized skills
  13. 13. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13Top Business Benefits of IoEN=7,501 respondents#1Operational efficiency(VAS drivers: assetutilization, supplychain, employee productivity)#2Customer service(VAS driver: customerexperience)#3Collaboration withincompany(VAS drivers:innovation, employeeproductivity)ImpactBrazilTotalOperational efficiency(VAS drivers: asset utilization, supplychain, employee productivity)Strategic decision-making(VAS drivers: assetutilization, innovation)Profitability(VAS drivers: assetutilization, supply chain)
  14. 14. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14Executives’Confidence in Their Firms’AbilityTo Capture Value from IoEN=7,501 respondents8.2 Indian business and IT leaders8.0 Chinese business and IT leaders7.9 Brazilian business and IT leaders6.7 Non-emerging market business and ITleaders7.4 Mexican business and IT leadersImpact10-point scale: 1 = extremely weak ability; 10 = extremely strong ability
  15. 15. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15N=7,50147.1%47.7%47.9%48.8%51.0%52.5%53.1%53.4%53.5%54.2%57.7%62.2%52.9%52.3%52.1%51.2%49.0%47.5%46.9%46.6%46.5%45.8%42.3%37.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%MexicoRussiaAustraliaChinaBrazilIndiaCanadaU.K.U.S.FranceJapanGermanyIoE value realized IoE opportunityFirms in:Value at Stake2013 ($B)$87.5$71.2$59.4$472.9$53.3$56.8$34.8$34.0$157.7$74.4$35.6$19.6
  16. 16. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1651.1%52.0%51.1%49.5%54.2%49.2%54.5%53.2%56.4%55.9%48.9%48.0%48.9%50.5%45.8%50.8%45.5%46.8%43.6%44.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Customer experience - TotalCustomer experience - BrazilSupply chain - TotalSupply chain - BrazilEmployee productivity - TotalEmployee productivity - BrazilInnovation - TotalInnovation - BrazilAsset utilization - TotalAsset utilization - BrazilIoE value realized IoE opportunityValue at Stake2013 ($B)$194.51$202.83$164.8$310.75$284.31$1.8$7.8$1.4$14.9$8.1
  17. 17. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17N=7,50154.1%52.4%53.3%51.0%52.4%50.9%45.9%47.6%46.7%49.0%47.6%49.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%500 to 1,999 employees - Total500 to 1,999 employees - Brazil2,000 to 9,999 employees - Total2,000 to 9,999 employees - Brazil10,000 or more employees - Total10,000 or more employees - BrazilIoE value realized IoE opportunityValue at Stake2013 ($B)$639.9$299.4$217.9$18.8$8.8$6.4
  18. 18. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1844.9%45.8%46.0%50.7%50.8%54.2%57.4%60.5%65.4%55.1%54.2%54.0%49.3%49.2%45.8%42.6%39.5%34.6%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Retail /Wholesale /…EnergyManufacturingTransportationOtherHealthcare / LifesciencesServicesFinancialservicesHigh tech /TelecomsIoE value realized IoE opportunity N=7,501Value at Stake2013 ($B)$118.3$115.2$276.9$98.7$65.4$23.6$224.4$55.0$179.6
  19. 19. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19Type ofconnectionM2M M2P P2PShare of VAS 39.0% 40.3% 20.6%Top usecases• Smart factories• Smart grid• Supply chainefficiency• Connectedmarketing andadvertising• Next-genworkers• Faster time tomarketIoE enablers:currentstrengths• Managing energyconsumptionthrough smart,connectedsystems• Viewing KPIsthroughinformationdashboards• UnifiedcommunicationsIoE enablers:largestopportunities• Intelligentmachines/robots• Remote trackingof physical assets• Decisionsupport throughreal-time, multi-dimensionaldata analysis• Integrated videocollaborationThe largest opportunityareas for manufacturersare ―intelligent‖ robots,remote tracking of physicalassets, decision support,and integrated videocollaboration
  20. 20. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20Type ofconnectionM2M M2P P2PShare of VAS 49.0% 23.6% 27.5%Top usecases• Smart factories /automation• Smart grid• Faster time-to-market• Next-genworkers• Smart buildingsIoE enablers:currentstrengths• Proactivelymonitoringenergyproduction andsupplyequipment• Analyze anduse largeamounts ofdata• UnifiedcommunicationsIoE enablers:largestopportunities• Makingoperations moresustainablethrough sensordata• Predictiveanalytics• Ability to locateexpertsThe largest opportunityareas for energy firms aresustainable operations,predictive analytics, andexpert location
  21. 21. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21Type ofconnectionM2M M2P P2PShare of VAS 21.5% 47.7% 30.8%Capabilities• Connectedmarketing andadvertising• Innovativepayments• Connectedmarketing andadvertising• Connectedvending• Next-genworkersIoE enablers:currentstrengths• Remotelytracking inventory• Viewing KPIsthroughinformationdashboards• UnifiedcommunicationsIoE enablers:largestopportunities• Location-basedmarketing• Customizedofferings,marketing, andadvertising• Datavisualization• Predictiveanalytics• BYOD• Rich mediacustomerinteractionsThe largest opportunityareas for retailers arelocation-based marketing,data visualization, andBYOD
  22. 22. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 225.1%8.2%9.7%13.1%13.3%14.3%16.1%20.1%0% 5% 10% 15% 20% 25%Information accuracyInformation accessibilityInformation ease of useMeasurement practicesHuman capital practicesInformation management practicesInclusiveness practicesQuality of technology infrastructure andtoolsThingsPeople Process DataTogether, these factors explain 66.2% ofchanges in value realized (R2 = .662). This is arobust model of what predicts value realized.Relative Importance of IoE Enablers inPredicting Value Realized7.9%10.5%10.6%16.8%10.4%N/A11.7%14.6%0% 5% 10% 15% 20% 25%Total Brazil
  23. 23. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23• Firms will capture just 53% of IoE’s Value at Stake for 2013, leaving $544B ofunrealized value• IoE is driving competitive parity, raising the stakes for differentiationamong companies and countries:Emerging-market countries and midsized companies are poised to realize significantvalue from IoE, enabling them to quickly achieve parity with — or even outpace —developed countries and larger firmsSmaller companies are already realizing as much IoE Value at Stake as someenterprises• To capture maximum value from IoE, firms should focus on the IoE-drivencapabilities that will benefit their industries most:Manufacturing firms: real-time, multidimensional data analysis; integrated videocollaboration; remote tracking of physical assets; intelligent robotsEnergy firms: integration of sensor data; ability to locate experts; predictive analyticsRetailers: data visualization and predictive analytics; BYOD; location-basedmarketing
  24. 24. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24• To capture more value in the IoE Economy, companies must:Invest in high-quality technology infrastructure and toolsAdopt and follow inclusive practicesDevelop effective information-management practicesMove from…Better is betterBigger is betterTo …CloutAccess to informationBig dataBusiness intelligenceConnectivityCloudBig judgmentIntelligence at the point of decisionConnectednessExpertise everywhere
  25. 25. Thank you.

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