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IoT / IoE for Cisco Connect (Regina, Fredericton, and Moncton) 2013
The document discusses how connectivity and the Internet of Things can fuel innovation. It notes that by 2030, world energy demand will increase by 40% and that by 2020, more than 50 billion devices will be connected to the internet. The internet of things will enable opportunities to improve productivity, redefine business models, and change how people live and work through connecting more "smart objects" and processing big data.
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IoT / IoE for Cisco Connect (Regina, Fredericton, and Moncton) 2013
- 1. Fuelling Innovation with theInternet of Everything Rick Huijbregts @CiscoSCRE VP Industry Transformation © 2013 Cisco and/or its affiliates. All rights reserved. TM “TORONTO 2015” and logo are trademarks of the Toronto Organizing Committee for the 2015 Pan American and Parapan American Games used under license. Cisco Confidential 1
- 2. Social Demographics Aging Shrinking Hypergrowth © 2010 Ciscoand/or its affiliates. All rights reserved. Economics Environmental/ Energy By 2030 world energy demand will increase by 40% Cisco Confidential 2
- 3. “ Ken Olson, Digital,1977 @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 3
- 4. © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 4
- 5. Percentage Penetration ofPotential World Markets 100 80 60 40 20 0 0 Cellular 10 PC 20 30 Internet 40 Television 50 60 Radio 70 80 VCR Source: IBM’s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004 © 2010 Cisco and/or its affiliates. All rights reserved. 90 100 Electricity 110 120 Telephone @CiscoSCRE 130 140 Automobile #CiscoSmartTO Cisco Confidential 5
- 6. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? The average lifespanof a company listed in? the S&P 500 has decreased from 67 years in the 1920’s to 15 years today. ? ? Richard Foster Yale University ?
- 7. Source: Telefonica I&D2011 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
- 8. Source: IDC DigitalUniverse in 2020 Report © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
- 9. Business and SocietalImpact Internet of Things Networked Economy Connectivity Digitize Access to Information • Email • Web Browser • Search Immersive Experiences Connecting The Unconnected New Breed Apps & Interfaces Digitize Interactions (Business & Social) Embedded / Seamless Digitize Business Process • E-commerce • Digital Supply Chain • Collaboration Wearable Devices • • • • Social Mobility Cloud Video • • • • • Sensors M2M Wearables Big Data Analytics Big Data Wisdom Predictive Enhance Outcomes People Intelligent Connections © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
- 10. Computer (1x1x1mm) Ultralow-power processor Pressure sensor Memory Thin-film battery Solar cell Wireless radio with antenna Camera (1x1x1mm) MEMS sensor (0.05 x 005 mm) Size of a grain of salt 250x250 resolution Disposable Medical and security applications MEMS: Micro-electromechanical systems Represents 4th generation sensor Sources: Cisco IBSG, 2011; University of Michigan, 2011; Fraunhofer, 2011; Wikipedia, 2011 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
- 11. © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 11
- 12. Billions (devices) 50 Billion 50 40 “Smart Objects” 30 Inflection point 20 25 12.5 10 6.8 7.2 7.6 0 2010 2015 2020 WorldPopulation Source: Cisco IBSG white paper “The Internet of Things”, April 2011. © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
- 13. Value at Stake~ $14.4T Initial Top 6 Contributing Verticals Manufacturing Japan 5% RoW 18% Retail Trade US 32% Information China 12% Finance / Insurance Europe 30% Canada 3% $400B Healthcare (private sector only) Education Service (private sector only) Source: Cisco Internet Business Solutions Group, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
- 14. Source: Forbes © 2013Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
- 15. By 2020, morethan three quarters of the S&P 500 will be companies that we have not heard of yet. Richard Foster Yale University © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
- 16. Mobility / Video Cloud NewBreed of Apps Growth & Productivity Opportunities New Business Models User Experience & Expectations © 2013 Cisco and/or its affiliates. All rights reserved. Internet of Things Big Data & Analytics Globalization Security & Regulatory Compliance Cisco Confidential 16
- 17. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 17
- 18. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 18
- 19. Solve Environmental Challenges Citizen RedefineWork Models Thrive in Smart Communities Business Live Enriched, Healthier Lives Infrastructure Focus on Improved Safety Government Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 19
- 20. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 20
- 21. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives 32% meetings travel avoided $1.4b travel savings Redefine Work Models $ 535M productivity 771k metric ton GHG Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 21
- 22. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 22
- 23. Solve Environmental Challenges Thrivein Smart Communities Live Enriched, Healthier Lives Redefine Work Models Focus on Improved Safety Achieve Energy Efficiency … to change the way the world works, lives, plays, and learns @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 23
- 24. Mobility / Video Cloud NewBreed of Apps Internet of Things @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. Big Data & Analytics #CiscoSmartTO Cisco Confidential 24
- 25. What we haveall in common: THE WORKPLACE © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
- 26. THE WORKPLACE devices mobility cloud video © 2010Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26
- 27. THE WORKPLACE devices mobility cloud video © 2010Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
- 28. THE WORKPLACE sustainability devices mobility utilization cloud productivity video © 2010Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 28
- 29. THE WORKPLACE sustainability devices mobility utilization cloud productivity video © 2010Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 29
- 30. THE WORKPLACE sustainability devices mobility utilization cloud productivity video © 2010Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 30
- 31. THE WORKPLACE sustainability devices mobility utilization cloud productivity video © 2010Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 31
- 32. THE WORKPLACE sustainability devices mobility utilization cloud productivity video © 2010Cisco and/or its affiliates. All rights reserved. cost brand Cisco Confidential 32
- 33. Tenant Services High SpeedInternet Wireless Unified Communications Interactive Media Digital Signage What about our buildings? IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33
- 34. Building Services Lighting Tenant Services Elevators HighSpeed Internet 24/7 Monitoring Wireless HVAC Sensors Unified Communications Interactive Media Digital Signage IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Fire Control Video Security Energy Management Maintenance Management Cisco Confidential 34
- 35. Building Services Lighting Tenant Services Elevators HighSpeed Internet 24/7 Monitoring Wireless HVAC Sensors Unified Communications Fire Control Interactive Media Dashboards Digital Signage ` ``` Monitoring IP Telephony © 2010 Cisco and/or its affiliates. All rights reserved. Video Security ` Submit Energy Management Control Maintenance Management Cisco Confidential 35
- 36. of the Worldis Still Not Connected © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36
- 37. © 2010 Ciscoand/or its affiliates. All rights reserved. Cisco Confidential 37
- 38. Creation of aNew Industry Visionary Leadership Global Open Standards Smart Regulation Public Private Partnerships @CiscoSCRE © 2010 Cisco and/or its affiliates. All rights reserved. New Ecosystem #CiscoSmartTO Cisco Confidential 38
- 39. “ Mahatma Ghandi @CiscoSCRE © 2010Cisco and/or its affiliates. All rights reserved. #CiscoSmartTO Cisco Confidential 39
- 40. Are you ready? ©2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 40
- 41. Questions? @CiscoSCRE Thank you. ©2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 41
Editor's Notes
- #3 The World is changing, we’re going through massive rebalancing in economic growth, socially – talent re-shuffling, and environmentally – natural resources.THE world will consume 40% more energy in 2030 than it does today, according to BP's Energy Outlook – The Economist, Jan 2012http://www.economist.com/blogs/graphicdetail/2012/01/daily-chart-14
- #6 The pace of innovation continues to accelerate, making it difficult for companies to keep up with innovations as they enter the market. Companies recognize that they must not only innovate, but innovate faster. To achieve this goal, companies should establish an innovation process that: provides access to a variety of innovation sourcesmills the best ideas from that processapplies those innovations to products and servicesThis process should increase the impact and value of innovation and decrease the time required to get products to market.
- #8 4 exabytes of unique information generated in 2012; more than the previous 5000 years combined
- #9 IDC projects that by 2020 the digital universe will reach 40 zettabytes (ZB), which is 40 trillion GB of data, or 5,200 GB of data for every person on Earth. This amount exceeds previous forecasts by 5 ZBs, resulting in a 50-fold growth from the beginning of 2010.
- #10 Evolution of the Internet The first phase – about 20 years ago – was the connectivity phase – just getting connected to a very limited online world was miracle enough.A lot of people in this room most likely helped create the next wave – the Networked Economy, which was characterized by the development of things like ecommerce and digitally connected supply chainImmersive Experiences came next – dominated by things like Social Media, collaboration and widespread mobility on a variety of devices.We are now entering the Internet of Everything, which builds on each of these previous phases – connecting people, data, process and things to create even greater value. As “everything” comes online, organizations are realizing the benefit of this increased connectedness through operational efficiency and improved customer experiences.
- #14 By geography, the amount of Value at Stake is well distributed across the major geographies: United States at $4.6 trillion, Western and Eastern Europe at $4.32 trillion, China at $1.73 trillion, Japan at $0.72 trillion, Canada at $0.43 trillion and the rest of the world at $$2.6 trillion. From an industry perspective, four out of 18 industries make up more than half the total Value at Stake. The amount includes manufacturing at 27 percent, retail trade at 11 percent, information services at 9 percent, and finance and insurance, also at 9 percent. The remaining 14 industries range between 7 percent and 1 percent. Use cases that have the most relevance for Cisco. Smart grid: Electrical grid using network connections—from production to customers—to better understand user behavior and improve the reliability, economics, and sustainability of the production and distribution of electricity.Smart buildings: Intelligent and converged IP network of electronic devices that monitors and controls facilities services, including mechanical, electronics, HVAC, and lighting systems in a building to achieve greater energy efficiencies and cost savings.Connected healthcare and patient monitoring: Better-connected device and data-driven patient management, resulting in improved healthcare effectiveness and efficiencies.Smart factories: Manufacturing factories where adding connectivity in processes and applications increases automation, reduces inventories with real-time inventory supplies, and cuts production and supply-chain costs.Connected education: Better application of technologies helps scale teachers, faculty, and educational content; increase new ways of learning; and transform the educational model—giving students curriculum flexibility to learn at their own pace, anywhere / anytime / using any device.Connected commercial vehicles (ground): Commercial fleet ground vehicles using an integrated platform of control systems to automate tasks such as navigation, path optimization, and logistics improvements.Connected marketing and advertising: Broad IT and social applications for marketing and advertising transform the way companies can engage with customers, analyze their behavior, and optimize the impact of their interactions. Examples include location-based services, viral marketing, and mobile advertising. Enablers include Big Data analytics and cloud.Connected gaming and entertainment: Includes SP and software vendor revenues and cash flows from all applications of online gaming and entertainment; does NOT include non-revenue-generating gaming activities (such as subsidized advertising).
- #15 Massive, global-scale change occurring at rates faster than could ever be predictedtop 10 jobs in 2010 did not exist in 2004: ie: Social Media/Online Manager, Elder Care Services, Sustainability Manager, SEO Optimization Specialist, Online Advertising Manager, User Experience Managerhttp://www.forbes.com/sites/meghancasserly/2012/05/11/10-jobs-that-didnt-exist-10-years-ago/FROM DUARTE: We referenced the above article for specific job titles, and reworded the title accordingly.
- #17 Over the past six years business demands for productivity, increasing globalisation and the consumerization of IT have remained constant – what has continued to rapidly evolve are the technology responses we have implemented to the business demands. Familiar technology trends like ubiquitous connectivity, mobility and Bring Your Own Device (BYOD) are culminating in the technology transition that we see as the consumerization of IT. Simply put, employees are demanding the same technology experience expectations in their workplace that they have in their personal lives (Amazon.com, Online banking, etc.)Additionally, companies and organizations are being faced with the demand for technology as a service inside the Enterprise. Employees want the ability to access any application, any time, anywhere – from the device of their choice. Technology responses start with the Technology Architectures that enable security, flexibility, speed and scale for the business
- #34 Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
- #35 Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
- #36 Bring the building systems and the IT systems into one networkAccess – only the network provides access to all of these systemsAnalyze – find new ways to harness informationAct – continuously improve building operationsVery important component in LEEDGet feedback to change the pattern as to what is happeningMonitor and adapt performanceHooray for technology.Use “Living Organism” analogy.Cisco Real Estate solutions converge key functions onto an IP network that becomes the fabric of every building—supporting all real estate requirements and provides the foundation for workforce effectiveness, building performance, and physical security. With the Cisco’s Real Estate solution, you can reduce costs and complexity by replacing disparate communications, security, and building automation systems with one simplified, flexible, and scalable IP network.
- #37 99% of the “things” in the world are still unconnectedThe Internet of Everything is the networked connection of people, data, process and things. The benefit of the IoE is derived from the compound impact of connecting people, data, process and things, and the value this increased connectedness creates as “everything” comes online.Organizations are realizing the value of the IoE today. As more people, processes, data and things are connected the potential for greater value will increase.$14.4 trillion in “Value at Stake” can be created or will migrate among companies and industries based on their ability to harness IoE over the next decade (2013-2022)The Internet of Everything Value Index found that IoE is expected to enable global private businesses to generate at least $613 billion in profits in 2013 by creating greater efficiencies and better customer experiences. An additional $544 billion could be generated in 2013 if companies more effectively harnessed IoE capabilities.According to the Value Index, many business leaders around the world believe that IoE will help drive higher wages and job growth, and improvement in information security. Real-world use cases demonstrate the potential value of IoE for companies and industriesBecause the stakes are high — over 10 years, companies stand to lose more than a year of profits if they do not embrace IoE — the time to act is now
- #39 What will it take to create these cities/communities… new visionary leadership & the creation of New Business Models.Imagine the huge opportunity for new services. Technology will be the key enabler.Only 2% of infrastructure spend – 2% of a trillion dollars is spent on technology – even an increase of 1%? To enable this we should together drive:Visionary leadership is key – finding people with similar mindsets, passion and vision for the future…that’s really key.Global open standards – this is what we do! We did it 25 years ago with the internet…bringing together different protocols and making them all work together. That’s not something just anyone can do.Smart regulation – we need leaders to step up….LEED certification….give benefits to people who implementPublic private partnerships – this has been key to our success so far.And a New ecosystem – working with developers, people like Schneider ElectricBut it takes all five of these factors…without one, it changes completely.