Sylvester ciscolivertp april2014

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Public 1 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Connecting the Unconnected

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Public 2

“I cannot imagine a life without…”

Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien e.V., 2010

% of 14 – 29 year olds


Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien

•  A mobile phone: 97%





•  The Internet: 84%





•  A car: 64%





•  My current partner: 43%




Internet of Everything

Digitize the World Connecting:

•  People •  Process •  Data •  Things

Intelligent Connections

Connectivity Digitize Access to Information •  Email •  Web Browser •  Search

Immersive Experiences

Digitize Interactions (Business & Social) •  Social •  Mobility •  Cloud •  Video

Networked Economy

Digitize Business Process •  E-commerce •  Digital Supply

Chain •  Collaboration

Business and

Societal Impact

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Public 8 Cisco Confidential © 2012 Cisco and/or its affiliates. All rights reserved. 8

1%


The Internet of Everything

Deeper Insights for Greater

Decision Making Empower People/ Increase Efficiency

Create and Expand New Markets and Services

Create Better Experiences to Build Better Relationships


Karl Benz Henry Ford


0

20000

40000

60000

80000

100000

120000

140000

1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916


Connecting the Unconnected

Intelligent Infrastructure

Rapid Service Creation and Market Agility

Connecting to More Things for More Insights

Secure, Unified Experiences


•  SG&A and CoGS reduction from improved business process execution

•  Improved capital efficiency

•  Improved labor efficiency •  Fewer or more productive man-hours

•  Improved customer lifetime value •  Additional market share (more customers)

•  Improved RD&E speed, reduced TTM •  New business models and new sources of

revenue

•  Improved process efficiency •  Reduced waste in supply chain

IoE Value at Stake: $14.4T

(2013-2022 10-year NPV)*

* Net present value

Asset utilization: $2.5T

Improved customer experience: $3.7T

Supply-chain / logistics efficiency: $2.7T

Innovation: $3.0T

Employee productivity: $2.5T

21 u

se c

ases


Machine-to-Machine (M2M) •  Data sent/received from one machine

(thing) to another •  Often called the IoT

Machine-to-People (M2P) •  Data sent/received from a machine (thing)

to a person •  Often called data and analytics

People-to-People (P2P) •  Data sent/received from one person

to another •  Often called collaboration

Connection Type IoE Value

(2013-2022)

$6.3 trillion

$3.5 trillion

$4.5 trillion

Cisco Confidential © 2013 Cisco and/or its affiliates. All rights reserved. 15

IoE: What Do Companies Think?


N=7,501 Respondents

Viewed IoE pervasiveness as having “increased” or “significantly increased” over past 3 years

Believe IoE pervasiveness will “increase” or “significantly increase” over next 3 years


Top 3 Business Drivers of IoE

Accelerating Pace of

Innovation

Satisfying Customer

Demand for New Ways of

Interacting

Need to Automate Business

Processes

N=7,501 Respondents


Top 3 Technology Drivers of IoE

New Types of Devices

Volume of Data

Generated

Cloud-based Technology

N=7,501 Respondents


Top Business Benefits of IoE

Operational efficiency

(Value drivers: asset utilization, supply chain, employee

productivity)

Customer service

(Value driver: customer experience)

Collaboration within company

(Value drivers: innovation, employee

productivity)

N=7,501 Respondents



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 / Wholesale /

Energy

Manufacturing

Transportation

Other

Healthcare / Life sciences

Services

Financial services

High tech / Telecoms

IoE Value Realized IoE Opportunity

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

Cisco Confidential 22 © 2012 Cisco and/or its affiliates. All rights reserved.


IoE

P2P (Collaboration)

Challenge •  Increase production and efficiency in

its North America manufacturing plant

Solution •  Use RFID sensors to monitor

production inventory on plant floor

Business Value •  Reduced production delays •  Real-time inventory visibility on plant

floor

•  Cut lost inventory by 20%

M2M (IoT)

M2P (Data and Analytics)


Challenge •  Prevent train derailments, which

cause delays and millions in damages

Solution •  Placed sensors every 20 miles of

track check for overheating

•  Data analytics predict which wheels need repairs, alert driver

Business Value •  UP has cut bearing-related

derailments by 75%

IoE

P2P (Collaboration)

M2M (IoT)

M2P (Data and Analytics)


Equipped with an online banking connection, video conferencing, and

biometric capabilities, Citibank Express lets customers start transaction in one

channel and finish it on the ATM People interact with next-gen ATMs using video, voice, and biometric sensors

New processes let customers start transaction in one channel and finish on ATM

New forms of data presented to customers on ATM’s split screen

Biometric sensors confirm customer identities for secure transactions

Machine People


Harley-Davidson’s smart factory uses Cisco’s industrial Ethernet, wireless

networks, and integrated video/digital signage to produce multiple models on same assembly floor while improving

worker training Stakeholders view / make decisions based on what’s happening on factory floor

New processes enable centralized location-driven “ubiquitous display”

Digital media content creates world-class “visual factory”

Video monitors relay real-time visual information to key stakeholders

People Machine People


Petrobel i-Rigs allow personnel on the company’s rigs to make better decisions

based on real-time data and remote access to experts no matter where they

are located Rig personnel use real-time data/remote expert access to make better decisions

New information necessitated change in on-rig processes/operations

Real-time data analyzed to provide decision makers with actionable information

Sensors collect/send data in real-time to influence decision making

Machine Person


MagicBands enhance the guest experience by interacting with park characters who know your name, purchasing items from

any location, and finding personal pictures taken by Disney photographers

Guest wears band on wrist; manages services via My Disney website

New processes let guests reserve seats, pass through lines, avoid ticketing issues

Bands contain code that securely links to encrypted database that stores all data

RFID bands send/receive signals to new Mickey-themed kiosks

People Machine People


Shell using specialized software which continuously estimates oil, gas, and water

flows to provide real-time well analysis Oil reservoir personnel use real-time information to make better decisions

Processes continuously reviewed and updated based on learnings from data

Data analyzed to present actionable information to oil well decision makers

Sensors measure and send data about oil, gas, and water flows

Machine Machine


Digital Band-Aids

Smart Pill Bottle Caps Asthma inhalers

'Electronic Skin' Patches Monitor Health Wirelessly


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