Andreas Moser

Head of Digitization Switzerland, Cisco Systems

@DigitalMoser

May 10, 2016

Business Impact of Digitisation

“ The future is here…it’s just not evenly distributed” William Gibson

Speed of Innovation

0

60

iPhone 1 in 2007; Mobile app economy

$100B in 2015; 10M developers

15B 50B (1M/hr) 500B connected-40% traffic M2M

Hyper-Connectivity

Lowered Costof Innovation

$5M in 2000 $5K in 2015

Increased Volume of Innovation

$50B venture funding

Market Disruptors

#1Technology

#2Media /

Entertainment#3Retail

#4Financial Services

#5Tele-

communi-

cations

#6Education

#7Hospitality /

Travel

#8Manufacturing

#9Healthcare

#10Energy

#11Oil & Gas

#12Pharma-ceuticals

Source: Cisco & IMD Global Center for Digital Business Transformation

Digital Vortex

ignore proactive

4/10Companies will be displaced by

digital disruption in the next 5 years

45% 25%Source: Cisco & IMD Global Center for Digital Business Transformation 5© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Top Industries, Ranked by Value at Stake (2015–2024)

0

1

2

3

4

5

6

7

Manufacturing FinancialServices

Retail ServiceProvider

Healthcare Oil and Gas

Trillions

$6.4T

$3.1T $2.8T

$2.0T$1.4T $1.1T

Industry View of Value at Stake

Ev

olu

tio

nR

ev

olu

tio

n

Optimisation Disruption

Optimise

Core

Competence

Improvement

Service

Orientation

Value creating

chain

integration

Transform

GTM Change

Disrupt

Platform

(Shared

Economy)

65%Value atStake

larger than2013

Cross-

Industrial Value

Creation

Value

Shifts –

from “the

disrupted” to

“the disruptor”

Source: Cisco, A Roadmap to Digital Value in the Private Sector. Digital Value at Stake Analysis, 2015-2024

What industries will self-driving cars disrupt?

Media / Entertainment

Energy

Retail

Public Transportation

Parking Garages

Insurance / Financing

Airlines

Automotive/Manufacturing

HealthcareHotels

Taxis

One disruption can redefine many industries

Auto repairs / Auto parts

Real Estate

Law Enforcement

Education

Source: Cisco & IMD Global Center for Digital Business Transformation

Connectivity SecurityAnalytics

Everything will be connected, generate data and talk securely.

It’s going to take a lot of connectivity

From Data Centers…to Centers of Data

Sensor Edge Data Center

Data analytics at…

Traditional ApproachTake Data to the Processing

ProcessingProcessing

Fog Node

IoT

Device Processing

Fog Node

Processing

IoT

Device

Optimal Approach for IoTTake Processing to the Data

Data analytics at…

Cost Value

To compete by offering the customer a lower cost or other

economic gains

ExperienceValue

Compete by offering the customer a superior

experience

Platform Value

Compete by creating network

effects that benefit customers

$

Source: Cisco & IMD Global Center for Digital Business Transformation