IoE AcceleratesIndustrie 4.0 Big, Different, and NOW 19 November 2014 SVP, IoT/IoE Global SalesChris WhiteBernd HeinrichsMD, IoT/IoE EMEAR Sales and IoT openBerlin2 Amazing Things HappenWhen You Connect the Unconnected of the worldis still notconnected 3 Unleash IoT Value with IoE and Industrie 4.0 $19T People Connecting People in More Relevant,Valuable Ways Internet of Things Connecting Physical Devices and Objects to the Internet and Each Other for Intelligent Decision Making Networked Connection of People, Process, Data, and Things Process Delivering the Right Information to the Right Person (or Machine)at the Right TimeData and Analytics Using Data forActionable Insightand Value Creation 4 201320122014 Dec JanFebOctJanFebMarOct IoE Acceleration Ciscos 1stIoE point of view 1st IoTWF @ Barcelona draws 832 participants Cisco releases $4.6T Value at Stake for public sector 45K media articles YTD (12x spike from 2012) 1600 attend 2nd IoTWF in Chicago Ciscos $14.4T Value at Stake for private sector Ciscoannounces IOx Industrial Internet Consortium formed 23B sensors shipped YTD (6x jump from 2012) 189 IoT start-ups YTD (4x increase from 2012) Gartner introduces IoE John Chambers delivers IoT keynote at CES IoE #3 in Gartners Top Technology Trends for 2014 IoT could be the next industrial revolution IoE is the next big thing for tech Cisco introduces IoE at Partner Summit IoE can make Cisco the #1 IT vendor NovIndustrie-Science Research Alliance group specifies Industrie 4.0 business modelsIndustrie-Science Research Alliance group publishes Industrie 4.0 recommendations Industrie-Science Research Alliance working group kickstarts Industrie 4.0 SepMarMar 5 BIG 6 What Fuels Internet of Everything Value at Stake? $19 TRILLION* *20132022 The Internet of Everything has the potentialto grow global corporate profits by 21% in 2022 Supply Chain/Logistics Innovation Customer Experience Employee Productivity Asset Utilization 7 IoE Value at Stake for Key German Verticals Total German IoE Value at Stake: $1T $76B Financial Services $19B Transportation $39B Energy $178B Public Sector $233B Manufacturing Source: Cisco Consulting Services, IoE Economics 2013 8 Great IoE Opportunity Among Top German Brands 9 DIFFERENT 10 IoE Drives Economic, Environmental, and Community Benefits Connected Bus Stop Connected Parking Meter Connected Trash Can Connected Bus 11 From basicconnectivity...to a critical part of the enterprise infrastructureConvergence of Operational Technologyand Information Technology to open standardsFrom proprietary standards...to converged, secure,managed, andcollaborative operationsFrom disparate IT and OT networksCisco Confidential12 2014Cisco and/or its affiliates. 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Barcelona: Smart City$3.6B Value Creation Smart LightingSmart WaterSmart Bus StopSmart ParkingSmart Buses Smart Citizens RevenueJobsProductivityCost AvoidanceCitizen Experiences Smart Waste 1,500 New Companies 44,000 New Jobs Mobile Collaboration: $1.6B Telework: $199M Smart Parking: $67MSmart Water: $58M Smart Lighting: $47M Shopping Plazas/Malls ParksArenas/StadiumsTrain/Bus StationsHospitals 13 Fear of Derailment Underutilized Equipment Poor Passenger Amenities and Services Railway Systems 14 35% REPLACE BEARINGS CAR02 Railway Systems Immediate Responseto Equipment Failure Real-Time Health Status of Trains New Passenger Amenities and Services 15 Poor Overall Equipment Effectiveness (OEE) Increasing Energy Costs Cyber Security Threats Manufacturing 16 Predictive Maintenance Optimize Energy Usage Security Before, During, and after Attack QUALITYPOWERSTAMPS 35%85% 592547/ 1000000 Manufacturing 17 Partnering for New Industry Solutions Toronto Berlin London Rio BarcelonaSongdo IoE Innovation Centers Customers and solutions IoE Investment Fund Entrepreneurs and startups IoE Applications Developers and communities IoE Partners Partnering for industry solutions Bernd Heinrichs, MD, IoT/IoE EMEAR Sales and IoT openBerlin 19 Industrial and IT Partners Rapid Prototyping DevNet Presencein Europe Startups External Innovation Acceleration Cisco Investments IoE Community Academia Open Innovation CommunitiesAcademia and Research openBerlin: IoE Innovation Center with Focuson Manufacturing and Transportation Cisco Robotics Demo 21 Solution for a $185B Market: Remote Site Management Rapid Solution Created with openBerlin IP CamAccess Mgmt EnergyMgmt Level Mgmt Backup Power Mgmt ! Server Access Points Switch ! Alarms / Tickets / Analytics / Energy Reports / VisualizationCisco 819Cisco IR910 SonarWise Addressing a $185B market=> sales pipeline of $890m after 3 months 11/2014 Substations3 Msit e sCell Towers1 5 Msi t e sWells1 Msit esopenBerlin Integration of proven azeti technology into highly reliable Cisco devices and Cisco EW08/2014$185BPresentation of azeti SonarWise to selected customers and at trade shows around the globe 10/2014 CVD, proof of concepts at five global customers, SonarWise on Cisco Global Price List Q1/2015 Start of mass deployment at several hundred sites Q2/2015 Tra n sp o rt a t io n1 M ca b i ne tsH ea lt hca re50 Ksi te sD e f e n se2 0Ksi te s22 NOW 23 Internet of Things World Forum Reference Model Physical Devices and Controllers (The Things in IoT) 1 Connectivity (Communication and Processing Units) 2 Edge Computing (Data Element Analysis and Transformation) 3 Data Accumulation (Storage) 4 Data Abstraction (Aggregation and Access) 5 Application (Reporting, Analytics, Control) 6 Collaboration and Processes (Involving People and Business Processes) 7 IT OT Query Based Event Based Data atRest Data inMotion Non-Real Time Real Time Technology Drivers !Asset modernization !Cloud-based technology !Pervasive multi-service networks Business Drivers!Business automation !Customer experience !Accelerating innovation 24 IoE Software Suite Accelerating the IoE Opportunity IE 2000 IE2000 IP67 IE 3000 IE 3010 CGS 2500 5915 + 5921 + 5940Rugged Embedded Services Routers ESS2020 Rugged Switch Video SurveillanceManager andIP Cameras SwitchingRoutingEmbedded CGR 1000 WirelessVideo Surveillance 819H M2M ISRGateway Router 1552 Rugged Wireless CGR 2000 ASR 903 IPICS Physical AccessManager Hardware Products Support Services Managed Services Professional Services Consulting Services Data Virtualization (Composite) Connected Analytics Prime Analytics Data and Analytics ServiceGrid (SolveDirect) Integration Platform Services Exchange Platform Process Automation and App IntegrationAPI ManufacturingGovernmentEnergy Financial Services RetailEducationTransportationHealth Care Vertical Solutions Enterprise Mobility Solutions Platform Remote Expert Platform Interactive Services Platform IP Interoperability andCollaboration System Experiences and Engagement 26 Harley Davidson Improves Flexibilityand Reduces Costs with IoE !New product introductions reduced from more than a year to 1.5 weeks !Enabled paperless factoryfor rapid response !Increased OEE (equipment utilization) by 7-12% (1% OEE = 3-4% profitability) !10-25x improvement in build-to-order cycle times!Reduced downtime and reductionin scrap yields $200M benefit 27 IoE Journey to Value !Sensors !Gateways !Infrastructure Connectivityand Compute Standardization on Ethernet and IP !Streamlined operations !Remote control !Visibility and security Fast IT IT/OTConvergence !Edgeware !Data in motion !Business insights Data and Analytics Connecting Data with Decisions !Platform for innovation !Business process agility !Connected and integrated interactions !ROI of $19T Internet of Everything Business Transformation Business Impact Level of Adoption 28 BIG $19T DIFFERENT Business solutionsand outcomes NOW Marketsalready accelerating cisco.com/go/tomorrowstartsherecisco.com/go/tomorrowstartshere Thank you. Industrie 4.1 Open Innovation Challenge !Industrie 4.1 Open Innovation Challenge to come up with innovative use cases in Manufacturing !Entrants will be judged on originality, creativity, and feasibility of the solution !Entrants will keep the Intellectual property on their ideas!I4.1 Open Innovation Challenge will run through May 27th, 2015.!The Winners will be invited to work together with Cisco in openBerlin for a three months period 32 Remote Assets Management Solution Substations 3M sites Transportation 1M cabinets Cell Towers 15M sites Healthcare 50K sites Wells 1M sites Defense 20K sites Spring Sprint Cisco EnergyManager Cisco Cloud Services azeti SiteController Winter Sprint 5 POC CVD Global Price List Summer Sprint azeti Social Sensor Cloud Cisco IoT PaaS Rapid Solution Prototype Created with openBerlin $185BBreak-Down of Value-at-Stake: Germany ($1T) 233 83 7674 65 56 53 33 25 212019181715 1098 1780 50 100 150 200 250 Manufacturing Retail trade Finance and insurance Healthcare Information Educational services Professional, scientific, and technical services Wholesale trade Administrative and waste management services Other services, except government Arts, entertainment, and recreation Transportation and warehousing Construction Management of companies and enterprises Real estate and rental and leasing Agriculture, forestry, fishing, and hunting Mining Utilities Public Sector Value-at-Stake ($ bn) Source: Cisco Consulting Services, IoE Economics 2013 Private Sector VaS: $836B From Amitabh Dixit 11.13