1) By 2020, 75% of businesses will become fully digital but only 30% of digitization efforts will be successful. Also, 40% of enterprises may no longer exist in 10 years if they do not disrupt or get disrupted. 2) The rise of the Internet of Everything will have 5-10x the impact of the internet to date, connecting people, processes, data and things. This will require transforming core processes, new skill sets, partners, business models and products/services. 3) Security challenges are immense with the digitization of everything, as 60% of business leaders are reluctant to innovate due to cyber risks, and the global cybercrime market is estimated at $450 billion to $

1. Bas Boorsma
Director – IoT and City Digitization, North Europe, Cisco
@BasBoorsma
Digitization
Drivers, Trends, and the Internet of Things

2. On Digitization – Disruption – New Winners
Leaders
Point-of-Sale
Print
Advertising
CarHotel
Bookstore Taxi Music
“Competition of tomorrow will be very different from the competition of
yesterday”

3. Preparing for Exponential Change
From Linear to Exponential Change
Ernest Hemingway
“How did you go bankrupt?”
“Two ways. Gradually, then suddenly”

4. By 2020, 75 percent of businesses will become fully
digital. Only 30 percent of these digitization efforts will
be successful.
In 10 years, 40+% of Enterprise will no longer exist
´To Disrupt, ot to be Disrupted´

5. Disruptive impact of autonomous vehicles, US only
“There are 3.5 million freight and delivery truck drivers in the
United States. There are 665,000 bus drivers. In New York
City alone, there are 90,000 registered taxi drivers — not
counting Uber and Lyft drivers. There are 5.5 million people
manufacturing and designing cars, and 1.65 million people
working at dealerships. All of these jobs are at high risk”
Robin Chase, Founder of ZipCar

6. Preparing for Change
• Transforming core processes, services
• Requiring different skill sets
• New partners & competitors
• New Business & Delivery Models
• New products & services
• New Economies
• …and Big Data
Every Company,
City, Country
DIGITAL
Internet of Everything… 5X – 10X Impact of Internet To Date

7. 1. Network Paradigm
Demise of industrial age, centralized organization
2. Rise of Internet of ´Everything´
Pervasive Connectedness of people and things
Building Blocks of the Digitization of Everything

8. 1.8 billion posts plus pictures per day
60 trillion webpages in 2015 80 million blogs per day
15.000 new Apps per week
3x amount words read per global citizen in 2016 compared to 1980
2.5 Million Cyber Threats.
100.000 – 1 million new ´things´ connected every hour
Internet traffic growth in 24 months: from 49 exabytes to 75 exabytes

9. IoT: Western Europe is growing fastest

10. Intelligent Connections
Business
and
Societal
Impact
Evolution of the Internet
Connectivity
Digitize Access to
Information
• Email
• Web Browser
• Search
Internet of
Everything
Digitize the World
Connecting:
• People
• Process
• Data
• Things
Networked
Economy
Digitize Business
Process
• E-commerce
• Digital Supply Chain
• Collaboration
Immersive
Experiences
Digitize Interactions
(Business & Social)
• Social
• Mobility
• Cloud
• Video

11. The Network Paradigm

12. Digitization across all Community Domains
Mobility
Work
Healthcare Aging Well
Learning
Energy
Environment
Citizen Services
Logistics
Community
Governance

13. Big Data
The Art of IoT
Architectures
Security &
Resilience Standards
Ecosystems Business
Models, RoI
Building Blocks & Challenges of IoT
Skills

14. Solution Architecture for Smart+Connected Communities
Convergence, Cloud, Intelligence on the Edge
Connected Digital Platform (CDP) for Cities
Fixed, 3/4/5G, City Wi-Fi Network. LoRa, WiFi P
InternetPublic/Private
WAN
MOBILE APPS PARTNER APPLICATIONS AND URBAN SERVICES
Monitoring/Command
Control Centers
Lighting
Management
Safety and
Security
EnvironmentWaste
Management
P
Parking
Management
Water
Management
Transport
Management
Traffic
Management
PARTNER
SENSORS
Street
Lighting
Safety and
Security
EnvironmentWaste
P
ParkingWater Traffic
STREET
People Street
Furniture
BUILDINGS
CommercialResidential Industrial
VEHICLES
Vehicles
Fog

15. Connected Digital Platform for Cities (CDP)

16. $1000-
$300K
$50/
500K
$2500
$150
Exploits
Spam
Malware
Development
Mobile
Malware
Facebook
Account $1
$0.25-
$60
>
$50
~$7
$1
Credit Card
Data
Medical
Record
DDOS
as a Service
Social
Security
Bank
Account Info
>
$1000
Welcome to the
Global Hacker Economy
Global
Cybercrime
Market:
$450B-$1T
More than 50% of
breaches don´t get
discovered within 6
months

17. Security
• 60% of business leaders reluctant to innovate due to Cyber Risks
• USD 7.6T at stake
• 2.5M threats per second
• Detection of breach on average 100 to 200 days to discover. Cisco:
17.5 hours
• 86% of all mail is spam, 8% contains malware; 19.7B threats per day,
2.5M threats per second
• Cisco Talos: monitors 600B emails EVERY DAY

18. Source: empirica 2014
INITIATIVES
Addressing the IT Skills Gap - Europe
AndrusAnsip
Vice President,
European Commission
“There will be 1.2M
open jobs in the IT
sector in Europe in
2020”
2016 Cisco and/or its affiliates. All rights reserved. Cisco confidential.

19. DATA
“the new oil”
... Privacy, Security, Ownership, Governance...
One of the most fundamental societal
organizational challenges of our time

20. Big Data
The Art of IoT
Architectures
Security &
Resilience Standards
Ecosystems Business
Models, RoI
Building Blocks & Challenges of IoT
Skills

21. How Do I plan for
Digitization?
“Vision without action is a day dream.
Action without vision is a nightmare.”
“Digital Darwinism is unkind to to those that wait.”

22. @BasBoorsma
pboorsma@cisco.com
There´s never been a better time.