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IoE in Action: Are You Ready? 
Joseph Bradley 
Vice President, IoE Practice, Cisco Consulting Services @JosephMBradley 
No...
Cisco Confidential 
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By 2020, ...
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Top 10 Implications of Digital Disru...
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Implicati...
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Implicat...
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Implicat...
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Implicat...
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Implicat...
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Are You Ready?
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Value Is...
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Nice Cit...
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IoE 
Tot...
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Asset ut...
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IoE Is A...
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44.9% 
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47.1% 
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Public S...
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Private ...
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Public S...
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IoE in Manufacturing, Retail, and t...
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IoE Is H...
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Retailer...
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Cloud & Services 
Lighting 
Poles 
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Smart St...
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Smart Li...
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Beyond N...
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IoE Is Here Today – The Connected M...
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Connected Factory Automation 
Fast...
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IoE – Wireless 
Workforce enableme...
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Reduce variable costs (Energy is t...
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Keys to Success
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Launchin...
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What We’...
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Open You...
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A Proven...
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2. Apps ...
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3. Big D...
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Trust Mu...
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Expand Y...
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Organiza...
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Imagine…
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Cisco Consulting Services 
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Joseph Bradley, IoE in action, Cisco Live

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Presentation Joseph Bradley, Cisco Vice President IoE practice

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Joseph Bradley, IoE in action, Cisco Live

  1. 1. IoE in Action: Are You Ready? Joseph Bradley Vice President, IoE Practice, Cisco Consulting Services @JosephMBradley November 2014
  2. 2. Cisco Confidential 2 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services By 2020, about 50 billion objects connected to the Internet In 2012 alone, we created more data than previous 5,000 years An estimated 77 billion apps will be downloaded during 2014 This year, the number of mobile-connected devices will exceed the number of people on earth 2/3 of the world’s mobile data traffic will be video by 2015 Globally, machine-to- machine IP traffic will grow 20-fold from 2012 to 2017 Digital Disruption Digital Disruption By 2020, ~50 billion objects connected to the Internet In 2012 alone, we created more data than previous 5,000 years An estimated 77 billion apps will be downloaded during 2014 This year, the number of mobile-connected devices will exceed people on earth 2/3 of the world’s mobile data traffic will be video by 2015 Globally, M2M IP traffic will grow 20-fold 2012 – 2017 Digital Disruptors Convergence of Mobile, Social, Cloud, and Data Is Driving Digital Disruption
  3. 3. Cisco Confidential 3 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Top 10 Implications of Digital Disruption
  4. 4. Cisco Confidential 4 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Implications of Digital Disruption 10 Every company is a technology company Delicious Profits
  5. 5. Cisco Confidential 5 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 10 Every company is a technology company 9 Change isn’t constant, it’s instant Implications of Digital Disruption
  6. 6. Cisco Confidential 6 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product Implications of Digital Disruption The Ultimate Platform Company?
  7. 7. Cisco Confidential 7 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do Implications of Digital Disruption What about me?
  8. 8. Cisco Confidential 8 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality Implications of Digital Disruption
  9. 9. Cisco Confidential 9 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality 5 Digitization…the gift that keeps on giving Implications of Digital Disruption $19B $18B $10B $5B $1B
  10. 10. Cisco Confidential 10 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Implications of Digital Disruption Don’t be afraid to change your stripes 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality 5 Digitization…the gift that keeps on giving 4 Fail fast and often to win
  11. 11. Cisco Confidential 11 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Implications of Digital Disruption 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality 5 Digitization…the gift that keeps on giving 4 Fail fast and often to win 3 Ride the data avalanche
  12. 12. Cisco Confidential 12 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Implications of Digital Disruption 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality 5 Digitization…the gift that keeps on giving 4 Fail fast and often to win 3 Ride the data avalanche 2 Insight is the new currency
  13. 13. Cisco Confidential 13 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Implications of Digital Disruption 10 Every company is a technology company 9 Change isn’t constant, it’s instant 8 Value is in the platform, not the product 7 The majority doesn’t rule…but you do 6 Experience trumps functionality 5 Digitization…the gift that keeps on giving 4 Fail fast and often to win 3 Data is everywhere, insights are scarce 2 Insight is the new currency 1 Context is king
  14. 14. Cisco Confidential 14 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Are You Ready?
  15. 15. Cisco Confidential 15 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Value Is Not in the Number of Things, But the Connections of People, Process, Data, and Things Delivering the right information to the right person (or machine) at the right time Process Physical devices and objects connected to the Internet and each other for intelligent decision-making; often called Internet of Things (IoT) Things Connecting people in more relevant, valuable ways People Leveraging data into more useful information for decision-making Data
  16. 16. Cisco Confidential 16 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Nice City Increased Parking Revenue 40-60% without Raising Taxes Increase compliance by 30% Parking Revenue increase 40 – 60% City data sales Reduced congestion, time-to-park Dynamic pricing — revenue increase Value Impact Pricing Payment Finding spaces Process Innovation Parking spaces Parking meters New Things Connected Traffic wardens Citizens/drivers City planners People Impact Space availability New Data Flows
  17. 17. Cisco Confidential 17 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services IoE Total IoE Value at Stake $19.0 Trillion IoE Drives $19 Trillion In Value Over 10 Years Private Sector $14.4T Includes both industry- specific and horizontal use cases. Public Sector $4.6T Includes cities, agencies, and verticals such as healthcare, education, defense
  18. 18. Cisco Confidential 18 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Asset utilization: $2.5T Supply-chain / logistics efficiency : $2.7T Employee Productivity: $2.5T Improved customer experience : $3.7T Innovation: $3.0T Increased Revenue: $125B Reduced Costs: $740B Employee Productivity: $1.8T Defense: $1.5T Citizen Experience: $412B Total IoE Value at Stake $19.0 Trillion IoE Drives $19 Trillion In Value Over 10 Years Private Sector $14.4T Includes both industry- specific and horizontal use cases. Public Sector $4.6T Includes cities, agencies, and verticals such as healthcare, education, defense
  19. 19. Cisco Confidential 19 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services IoE Is Already Here
  20. 20. Cisco Confidential 20 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 44.9% 45.8% 46.0% 50.7% 50.8% 54.2% 57.4% 60.5% 65.4% 55.1% 54.2% 54.0% 49.3% 49.2% 45.8% 42.6% 39.5% 34.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail /… Energy Manufacturing Transportation Other Healthcare /… Services Financial services High tech /… IoE Value Realized IoE Opportunity IT-Driven Industries Capturing Greatest Share of IoE Value Value at Stake 2013 ($B) $118.3 $115.2 $276.9 $98.7 $65.4 $23.6 $224.4 $55.0 $179.6 N=7,501 Respondents
  21. 21. Cisco Confidential 21 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 47.1% 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% Mexico Russia Australia China Brazil India Canada U.K. U.S. France Japan Germany IoE value realized IoE opportunity Firms in: •At 47.1% of value realized, Mexico has the greatest opportunity to benefit from IoE •Firms in Germany, Japan, and France have realized the most of their share for 2013 VAS •High level of parity across companies in different geographies Mexico Has Greatest Opportunity To Benefit from IoE
  22. 22. Cisco Confidential 22 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Public Sector $163B IoE Value at Stake for Key Verticals in LATAM Energy $38B Financial Services $58B Manufacturing $226B Transportation $15B Total IoE Market Value for LATAM - $870B
  23. 23. Cisco Confidential 23 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Private Sector in Mexico: Implementing IoE Could Generate $163B of Value $163B Verticals: $114B Cross Vertical: $49B Time-to-market Supply chain efficiency Future of work Travel avoidance Smart factories Connected marketing / advertising Smart grid Innovative payments
  24. 24. Cisco Confidential 24 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Public Sector in Mexico: Implementing IoE Could Generate $34.3B of Value $34.3B Citizen: $5.2B City: $29.1B Cyber Security Travel avoidance Smart Grid Mobile Collaboration Chronic disease Payments Counterfeit drugs Chronic disease Telework Gas monitoring
  25. 25. Cisco Confidential 25 © 2013-2014 Cisco and/or its affiliates. All rights reserved. IoE in Manufacturing, Retail, and the Public Sector
  26. 26. Cisco Confidential 26 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services IoE Is Here Today – The Connected Retailer Wi-Fi Gesture Recognition Associate Mobile Digital Signage Customer Mobile Video Cameras Central Compute Platform Big Data Repository Fast Data Processing Action Enablement Wisdom from the Cloud Business Systems eCommerce & Semantic Web Door Hinges IR Motion Parking Space Sensor Wi-Fi Badge Weight Mat Wi-Fi Tags Shelf Weight Sensors
  27. 27. Cisco Confidential 27 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Retailer Value at Stake: 12% Higher Profits / 0.8 Percentage Point EBIT Margin Gain Increase in IT costs IT connectivity cost of $41M to enable IoE 2,000 2,249 800 832 4,400 4,366 12,800 13,312 0 5,000 10,000 15,000 20,000 25,000 As-it P&L To-be P&L Retailer P&L ($ mn) EBIT D&A SG&A COGS Revenue base: $20.0B Projected revenue: $20.8B Next-gen workers $182M contribution to EBIT driven by higher employee productivity and lower real estate rentals (telecommuting) Innovative payments $28M contribution to EBIT due to lower merchant processing fees Connected marketing and advertising $60M contribution to EBIT resulting from more targeted, location-based advertising Reduced out-of-stocks $20M contribution to EBIT generated by reduced out-of-stock occurrences
  28. 28. Cisco Confidential 28 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cloud & Services Lighting Poles Municipal Command & Control Center Smart Grid Building Optimization City WiFi Home Energy Mgmnt Source: Intel Traffic Flow Optimization Factory Optimization Traffic Cameras Automated Car System Intelligent Digital Signage Connected Ambulances Parking INTELLIGENT CITY INTELLIGENT Building INTELLIGENT HIGHWAY INTELLIGENT Community IoE Is Here Today – The Connected City Logistics Optimization
  29. 29. Cisco Confidential 29 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Smart Street Lighting: Each Opportunity Can Create Multiple Benefits Across Stakeholders City receives advertising revenues Retail job creation Better environment retail footfall and sales increase City pays for smart lighting Citizens get Wi-Fi Crime reduces property prices increase City saves on operating costs City receives additional property tax What role can SPs play in accelerating Smart Cities?
  30. 30. Cisco Confidential 30 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Smart Lighting Smart Water Smart Bus Stop Smart Parking Smart Waste Smart Buses Revenue Jobs Productivity Cost Avoidance Citizen Experiences Reduced costs, more revenues, better productivity and citizen experiences Created 47,000 jobs Barcelona: Smart City Creates $3B in Value Smart citizens Smart Water: $58 million Smart Parking: $53 million Smart Lighting: $47 million Smart Buildings: $124 million Connected Learning: $170 million
  31. 31. Cisco Confidential 31 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Beyond Nice and Barcelona… Korea Objective: Improve environment Solution: 13 Smart Work Centers Impact: 64 agencies / 71 public organizations increase productivity, save costs, improve job satisfaction Objective: Economic development, investment, quality of life Solution: Smart grid, lighting, parking, work centers, Wi-Fi, buildings Impact: 9-14% energy savings; fewer electrical outages Objective: Improve infrastructure and quality of life Solution: Management systems for waterway, train, and road traffic Impact: Smarter decisions reduce traffic congestion Korea Amsterdam Hamburg
  32. 32. Cisco Confidential 32 © 2013-2014 Cisco and/or its affiliates. All rights reserved. IoE Is Here Today – The Connected Manufacturer Remote sensing of objects and environment My yield will meet today’s production needs Cameras deployed for monitoring and security Subscribe to my status updates Just plug me in! I am online and ready for configuration with the line. Here is my configuration. Clean me next shift 7100kWh of energy used today Everything has a URL Sensors Actuators Intelligent Motor Control Terminals Audio Video
  33. 33. Cisco Confidential 33 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Connected Factory Automation Faster diagnostics = lower downtime Flexible manufacturing = higher revenue Converging motion, safety, data, video and wireless = higher productivity 10-25x improvement in BTO (Build-to-Order) cycle times (e.g 18 months  2 weeks) Increase OEE (equip. utilization) by 7-12% ( 1% OEE = 3-4% profitability) IoE - Automation
  34. 34. Cisco Confidential 34 © 2013-2014 Cisco and/or its affiliates. All rights reserved. IoE – Wireless Workforce enablement -82% faster retrieval time -80% faster decision making Wireless tools/assets  reduced cabling costs and set up time Continuous asset management Connected Factory Wireless 7% production throughput increase Reduce cabling and other costs for machines that move 95%
  35. 35. Cisco Confidential 35 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Reduce variable costs (Energy is the largest variable cost) Monitor machine level energy consumption Demand response – get alerted and take action to avoid peaks Optimize energy by matching machine energy utilization with activity (e.g. idle machines) Connected Factory Energy Management Reduce energy consumption 10-20% Avoid peak energy charges (up to 10X base load cost) IoE – Energy Management
  36. 36. Cisco Confidential 36 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Keys to Success
  37. 37. Cisco Confidential 37 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Launching IoE Real-time Insights and Analytics Smart Ideation Know- How Rapid Prototypingand Real- time Results IoE Methodology
  38. 38. Cisco Confidential 38 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services What We’ve Learned: Innovation, Apps, and Insights Apps are the oxygen of the business Big Data is nothing without Big Judgment Innovate outside the four walls of your organization To Capture More IoE Value, Companies Must: 1 2 3
  39. 39. Cisco Confidential 39 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Open Your Four Walls Freelance Digital Personas (34% of today’s workforce) 1. Successful Companies Build Innovation Bridges
  40. 40. Cisco Confidential 40 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services A Proven Process for Smart Innovation Ideation Source: Concepts adapted from Harvard Business Review, November 2014 3 Pursue open or closed system? 4 Develop internally or outsource? 5 Data – capture, secure, analyze? 6 Manage ownership / access rights to data? 9 Enter new businesses by monetizing data? 8 Change business model? 10 Expand company scope? 7 Impact channels /service networks? 1 Which connected capabilities? 2 Place features in product or cloud?
  41. 41. Cisco Confidential 41 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 2. Apps Are the Oxygen for Business Mercado Libre Mobil App iTexico, one of several firms helping companies “go mobile” Provides resources, expertise, experience Mobile Apps in Mexico Search and buy where ever you are Available in Argentina, Brazil, Chile, Columbia, Costa Rica, Ecuador, Mexico, Panama, Peru, Portugal, Dominican Republic, Uruguay, and Venezuela
  42. 42. Cisco Confidential 42 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services 3. Big Data Is Nothing Without Big Judgment + = Insights to improve business outcomes Big Data IoE
  43. 43. Cisco Confidential 43 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Trust Must Be Earned Exactly what data is being collected How the data is being analyzed and reported How the data collection technology works. Who is seeing the data. How the data is being secured The consumer benefits of data collection Why the data is being collected It’s opt-in Source: DataInformed, September, 2013 What every business should tell consumers about their data collection? 1 2 3 4 5 6 7 8
  44. 44. Cisco Confidential 44 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Expand Your Security Perimeter Expand Security Perimeter Improve Visibility Respond Faster 1 2 3 Through analytics, increase visibility around threats, users, behavior, and infrastructure Use identity- and context-based information and behavior to improve security response Protect against advanced malware and threats across all infrastructure and the entire security continuum; detect and quarantine cyberattacks
  45. 45. Cisco Confidential 45 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services Organizations can capture significant value from IoE using a proven methodology Key Take Aways We live and work in a world of digital disruption IoE is here today…and it’s changing customers’ expectations and behaviors as it amounts to $19.0T (LATAM $870B) The implications of digital disruption are impacting business 1 2 3 4 Three keys to success: 1) Innovate outside of the organization, 2) Apps are the oxygen of business, and 3) Big Data is nothing without big judgment 5
  46. 46. Cisco Confidential 46 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Imagine…
  47. 47. Cisco Confidential 47 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services josbradl@cisco.com @JosephMBradley JosephMBradley TWITTER EMAIL LINKEDIN SLIDE SHARE JosephMBradley
  48. 48. Thank you.

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