The document outlines the transformative potential of the Internet of Everything (IoE), which connects people, processes, data, and things to create significant economic opportunities by enhancing information relevance and automation. It discusses the challenges of unconnected 'things,' emphasizes the need for IPv6 for improved connectivity, and illustrates potential benefits across various industries, yielding trillions in net value. Cisco emphasizes the importance for businesses to adapt to IoE now to remain competitive and leverage emerging opportunities.

1. Connecting the
Unconnected
New opportunities enabled by the Internet
of Everything
Niccolò Aterini
Network Consulting Engineer
naterini@cisco.com
© 2013 Cisco and/or its affiliates. All rights reserved.
Fabrizio Pappalardo
Product Manager
fpappala@cisco.com
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2. © 2013 Cisco and/or its affiliates. All rights reserved.
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3. A pervasive Network connecting
“intelligent objects” and people
Intelligent objects are sensors able
to capture physical information
and react upon it
The connection between these
sensors, people and processes
lays the foundation for the IoE
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4. Expectati
ons
More important
Knowledge
Information
Data
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Less
important
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5. 99.4%
of “things” are
unconnected
96.5%
of things are
consumer objects
64%
of things are in
developed
economies
Source: Cisco IBSG, 2013
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6. IoE brings together people, process, data, and things to make networked
connections more relevant and valuable than ever before—turning information into
actions that create new capabilities, richer experiences, and unprecedented
economic opportunity for businesses, individuals, and countries.
Source: Cisco IBSG, 2013
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7. © 2013 Cisco and/or its affiliates. All rights reserved.
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8. New things
The Network
Cloud
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9. • Smartphones&Tablets
• New Devices&Sensors
• Open source
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10. Smart Industry
Smart Homes
Established
Smart Offices
Growing from Trillions to Tens of Trillions
Smart Car
Smart Health
Emerging
Smart Agriculture
Growing from Billions to Trillions
Sources: Machina Research
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11. Bits/ps
Service
Provider
Voice
Video
Data
Mobile
Service
Provider
Smart Energy
Smart Health
Smart Industry
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Bandwidth
(Cost Reduction and Speed)
Multi-service Consumer
(Prioritization and Agility)
Smart Homes
Service
Provider
Smart Car
Programmable Triggers
of Event- Driven Services
(Adaptation Rates and Automation)
Smart Offices
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12. Key Factors
Description
IPv6 has better ability for auto configuring devices than IPv4
Enhanced
Technology support
IPv6 improves dramatically on the concept of anycast services, which is available, though
in a very minimal form in IPv4
IPv6 offers better mobility features than IPv4
With IPv6, mobility support is mandatory by the use of Mobile IPv6 (MIPv6).
Improved Security &
administration over
IPv4
IPv4 address
exhaustion
IPv6 ensures that there are end-to-end security mechanisms. This allows personalized
services to be deployed such as mobile e-commerce services that rely on secure
transactions.
almost all of IPv4 addresses only available
Increased device
support
IPv6 capable Devices increase to Smartphone's, tablets, and routers increases to over 6
billion by 2015-IDC
IPv6 content and
application
availability
New applications such as Internet-enabled wireless devices, home and industrial M2M
appliances, Internet-connected transportation, integrated telephony services, sensor
networks such as RFID, smart grids, cloud computing, and gaming, will be designed for and
enabled by IPv6 networks
Customer Experience
As IPv6 transition happens, most users won’t notice any change in their Internet use, but
those that are still operating on IPv4 will have a diminished experience sooner or later
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13. What
is
LISP
What
LISP
Provides
1.
Topology
independent
rouNng
1.
Mobility
à
IP
prefix
and
address
family
Portability
2.
On-­‐demand
route
look
up
2.
Scalability
à
On-­‐demand
RouNng
and
aggregaNon
3.
Map
and
Encapsulate
3.
Security
à
Tenant
ID
based
segmentaNon
Flexible
Distributed
Database
A"er
Before
Prefix
RLOC
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171.68.226.121
Prefix
Next-­‐hop
189.16.17.89
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22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
Prefix
Next-­‐hop
189.16.17.89
171.68.226.120
22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
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171.68.228.121
189.16.17.89
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189.16.17.89
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172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
189.16.17.89
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22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
Prefix
Next-­‐hop
Topology
+
end
point
routes
189.16.17.89
171.68.226.120
22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
189.16.17.89
171.68.226.120
22.78.190.64
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172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
189.16.17.89
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22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
189.16.17.89
171.68.226.120
22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
Topology
Routes
© 2013 Cisco and/or its affiliates. All rights reserved.
End
Point
Routes
consolidated
to
LISP
DB
Prefix
Next-­‐hop
189.16.17.89
171.68.226.120
22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
192.58.28.128
171.68.228.121
Prefix
Next-­‐hop
189.16.17.89
171.68.226.120
22.78.190.64
171.68.226.121
172.16.19.90
171.68.226.120
Reduced
Routes
192.58.28.128
171.68.228.121
End
Point
Routes
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14. • Today CPUs power brings higher
computational availability
• New computing and storage
virtualization technologies allow
resources aggregation and
segmentation
• Higher Reliability for business continuity
and disaster recovery.
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15. Network
(Bandwidth)
Flexible, High-performance, Network Fabric
Tightly Integrated Network, Storage, Compute and Applications
Common Operational Model across All Environments
Data Centre
(Compute + Storage)
Open
Applications
(Control)
Programmable
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Virtualized
Elastic
Resilient
Secure
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16. © 2013 Cisco and/or its affiliates. All rights reserved.
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17. The potential bottom-line value (higher revenues and lower
costs) that can be created or will migrate among companies
and industries based on their ability to harness IoE over the
next decade (2013-2022)
Includes
•
•
•
•
•
Shifts of benefits among competing firms in an industry
Shifts of benefits among different industries
New-to-the-world revenue growth from innovation
Cost savings from more efficient processes
Allowances for implementation costs
Does not include
•
•
•
•
Extent of losses at firms that don’t transform
Consumer or government value creation (private-sector focus)
Social benefits
Value estimates for reduced risk of operations
Source: Cisco IBSG, 2013
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18. $14.4 trillion
$9.5 trillion
$4.9 trillion
From industry-specific
use cases (66%):
smart grid, connected
commercial vehicles, etc.
From cross-industry
use cases (34%):
future of work (telecommuting),
travel avoidance, etc.
IoE represents an opportunity to grow aggregate global
corporate profits ~21% by 2022
Source: Cisco IBSG, 2013
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19. Asset utilization:
$2.5T
IoE net
Value at
Stake
(2013-2022
10-year
NPV)*
• SG&A and CoGS reduction from
improved business process execution
• Improved capital efficiency
Employee productivity:
$2.5T
• Improved labor efficiency
• Fewer or more productive man-hours
Supply-chain / logistics
efficiency: $2.7T
• Improved process efficiency
• Reduced waste in supply chain
Improved customer
experience: $3.7T
* Net present value
Innovation: $3.0T
• Improved customer lifetime value
• Additional market share (more
customers)
• Improved RD&E speed, reduced TTM
• New business models and new sources
of revenue
Source: Cisco IBSG, 2013
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20. 50.0%
Degree of impact
(Value at Stake / industry size)
45.0%
Japan
($0.7T)
40.0%
United States
($4.6T)
35.0%
Canada
($0.4T)
30.0%
Western and
Eastern Europe
($4.3T)
25.0%
20.0%
15.0%
China
($1.8T)
10.0%
Spheres sized by
amount of Value at Stake
5.0%
Rest of world
($2.6T)
0.0%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Geography size (value added $B)
Source: Cisco IBSG, 2013
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21. 100.0%
Degree of impact
(Value at Stake / industry size)
90.0%
Information
services (9%)
80.0%
Spheres sized by
amount of Value at Stake
70.0%
60.0%
Administration
50.0%
40.0%
20.0%
Retail trade
(11%)
Education
30.0%
Manufacturing
(27%)
Finance and insurance (9%)
Company
management
Healthcare
Professional services
Wholesale
10.0%
0.0%
$0
Source: Cisco IBSG, 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
$2,000
$4,000
$6,000
$8,000
$10,000
Industry size (value added $B)
$12,000
$14,000
Sample
Size
=
807
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22. © 2013 Cisco and/or its affiliates. All rights reserved.
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23. • 21 use cases were used to
determine the amount of Value
at Stake (bottom-up approach)
• Both industry-specific
Smart buildings
and cross-industry use
cases included
• Use cases provide a guide
for business leaders to
transform their companies to
benefit from IoE
Connected private
education
• The time to begin is now
Source: Cisco IBSG, 2013
Smart factories
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24. 2013
2022
Current state
Potential with IoE
Automated assembly
machines are expensive
and complicated to create
and install
Reduced costs as automated
tools become less expensive
to manufacture / implement
Often inflexible and costly
product-line changes
Increased revenues from
greater product variations
Quality controls rely on
human perception and
dexterity
Sensors compliment humans
to improve product quality
Reliance on low-cost
manufacturing; employees
with IT and data interpretation
skills are costly, scarce
Inefficient use of key
inputs for production; lack
of flexibility among
assembly locations
More intelligent design of
machines; greater control
of instrumentation and
production conditions
Socialization of skills
knowledge flattens skills curve;
maximizes access to human
talent pools at lower costs
Reduced waste (materials,
energy); greater freedom
and agility to reallocate
production / optimize inputs
Source: Cisco IBSG, 2013
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25. 2013
2022
Current state
Potential with IoE
Vulnerability to faults
Automated detection and
self-healing improve reliability
of the electric network
One-way flow of electricity
Ability to shape electric flows
enables more flexibility,
distributed generation
Production calibrated for peak
demand requires reserves,
causes inefficiencies
Demand-side management
improves generator utilization
and grid efficiency
Variability in renewable
energy sources prevents
adoption
Enables more sustainable
energy sources such as
wind and solar
Connecting sensing,
measurement, and controls
in real time improves
reliability, cost, and alignment
between supply and demand
Source: Cisco IBSG, 2013
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26. 2013
2022
Current state
Potential with IoE
Time, money, and fuel lost due
to traffic congestion
Traffic management and
optimization of road network
lower congestion
Reduced fuel efficiency
due to sudden
acceleration and braking
Vehicles intelligently
adjust driving speeds,
improving fuel efficiency
High proportion of accidents
Vehicle-to-vehicle/
infrastructure communication
lowers accident rates
High vehicle insurance costs
Insurance premium based
on actual driving pattern
of individuals
Ad hoc routing of vehicles
Optimized delivery routes
Reduced time in traffic;
lower accident rate;
lower fuel, insurance,
and repair costs
Source: Cisco IBSG, 2013
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27. 2013
Current state
2022
Potential with IoE
Long hospital stays to ensure
patients can thrive at home
after discharge
Shorter hospital stays with
home monitoring systems
Limited number of
conditions with home
monitoring capabilities
Wider number of
conditions with home
monitoring capabilities
Uncoordinated and
manual collection of
patient test records
Single, electronic collection
of patient records
Ad hoc interpretation of
medical test results and
conditions
Standardized treatments
that conform to best
practices
Multiple doctors offering
care in an uncoordinated
manner
Continuous monitoring of
health conditions in a less,
expensive home setting; all
care aspects consolidated
and coordinated
Consolidated, patient-centric
view of all treatment aspects
Source: Cisco IBSG, 2013
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28. • Determine where your business
is today with regard to IoE
• Understand the role of IT in
enabling your company to benefit
from IoE
• Consider internal cultural changes
required to embrace IoE
• Maximize your firm’s security
and privacy capabilities
• Consider organizational structures
that will best support IoE
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29. Thank you.