cisco australia internet of everything value index 2013
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© 2010 Cisco and/or its affiliates. All rights reserved. 1 © 2013 Cisco and/or its affiliates. All rights reserved. 1
2 August 2013
© 2010 Cisco and/or its affiliates. All rights reserved. 2
Source: Telefonica I&D 2011
© 2010 Cisco and/or its affiliates. All rights reserved. 3
Source: Telefonica I&D 2011
© 2010 Cisco and/or its affiliates. All rights reserved. 4
Bu
sin
ess a
nd
So
cie
tal I
mp
act
Intelligent Connections
• Web Browser
• Search
Connectivity
Digitize Access to
Information • Social
• Mobility
• Cloud
• Video
Immersive
Experiences
Digitize Interactions
(Business & Social)
• E-commerce
• Digital Supply Chain
• Collaboration
Networked
Economy
Digitize Business
Process Connecting:
• People
• Process
• Data
• Things
Internet of
Everything
Digitize
the World
© 2010 Cisco and/or its affiliates. All rights reserved. 5
© 2010 Cisco and/or its affiliates. All rights reserved. 6 Source: Cisco Internet Business Solutions Group, 2013
The Internet of Everything has the potential to grow global corporate profits by 21% in aggregate by 2022.
What fuels Internet of Everything Value at Stake?
Supply Chain/Logistics
Innovation Customer
Experience Employee
Productivity Asset
Utilization
© 2010 Cisco and/or its affiliates. All rights reserved. 7
55%
45%
Source: Cisco IBSG, 2013
While machine-to-machine connections are increasingly important, person-to-person and person-to-machine still represent the majority of the Value at Stake in the IoE Economy.
$0 $1 T $2 T $3 T $4 T $5 T $6 T $7 T
P2P
M2P or P2M
M2M
© 2010 Cisco and/or its affiliates. All rights reserved. 8 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Connected Industry
• ~$52B TAM 2016
• 13B B-to-B Connections by 2015
• Auto Plant… 50K IP-ready Devices
• Connected Vehicles, Defense, Industrial/M2M, Transportation
Smart + Connected Communities
• $1.5T Market 2020
• Education, Energy, Traffic, Entertainment, Safety, Healthcare, Real Estate, Gov’t
• 9 Iconic Projects / 100s Projects
Connected Energy
• ~$9B TAM 2016
• BC Hydro… Vancouver
• 1,700 Poletop Routers
• 1.6M Smart Meters
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Create a virtual pool of experts, whether co-located or dispersed within a global network.
Instantly interact with experts face-to-face in any easy-to-use, virtualized manner structured to help ensure effective collaboration.
© 2010 Cisco and/or its affiliates. All rights reserved. 10
• Conducted ground-breaking online survey of 7,501 business and IT decision-
makers, split between enterprises and mid-sized companies
• Study executed by the Cisco Consulting Services Research & Economics
Practice
• MIT Center for Digital Business provided advice on questionnaire
development, but not on the IoE Value Index design or Value at Stake / value-
realized estimates
• Fielded in 12 of the largest global economies (70% of worldwide GDP):
Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico,
Russia, U.K., and U.S.
• Estimates actual value realized by firms in 2013 as a share of potential Value at
Stake; explores key IoE enablers (people, process, data, things) that drive
value
© 2010 Cisco and/or its affiliates. All rights reserved. 11
IoE Value at Stake 2013 (January-December)
$14.4T* 2013 $1.2T
Value realized in 2013
$613B
(53%)
$544B
(47%)
Value “left on table”
in 2013
Global Value at Stake 2013-2022 (10-year total)
$1.2T
Note: chart is not to scale.
* $14.4T is conservative because it is based on a set number (21) of private-sector use cases and discounts future cash flows due to uncertainty around privacy and regulatory issues.
© 2010 Cisco and/or its affiliates. All rights reserved. 12
M2M
M2P
P2P
0
10
20
30
40
50
60
70
80
$35.6B Value Realized
(VR)
$74.4B Value at Stake (VAS)
Source: Cisco IBSG, 2013
VR
VR
VR
VR
VR
VAS
VAS
VAS
VAS
VAS
02468
10121416182022242628
Assetutilization
Customerexperience
Supplychain
Innovation Employeeproductivity
Value Drivers Types of Connection
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Key Challenges
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44.9%
45.8%
46.0%
50.7%
50.8%
54.2%
57.4%
60.5%
65.4%
55.1%
54.2%
54.0%
49.3%
49.2%
45.8%
42.6%
39.5%
34.6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Retail / Wholesale /Hospitality
Energy
Manufacturing
Transportation
Other
Healthcare / Lifesciences
Services
Financial services
High tech /Telecoms
IoE value realized IoE opportunityN=7,501
Value at Stake
2013 ($B)
$118.3
$115.2
$276.9
$98.7
$65.4
$23.6
$224.4
$55.0
$179.6
© 2010 Cisco and/or its affiliates. All rights reserved. 15
Lo
cati
on
of
Fir
ms
Valu
e a
t S
take 2
013 (
$B
)
47.1%
47.7%
47.9%
48.8%
51.0%
52.5%
53.1%
53.4%
53.5%
54.2%
57.7%
62.2%
52.9%
52.3%
52.1%
51.2%
49.0%
47.5%
46.9%
46.6%
46.5%
45.8%
42.3%
37.8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Mexico
Russia
Australia
China
Brazil
India
Canada
U.K.
U.S.
France
Japan
Germany
IoE value realized IoE opportunity
$54.4 Billion
$41.0 Billion
$32.2 Billion
$253.0 Billion
$28.4 Billion
$30.2 Billion
$18.2 Billion
$17.3 Billion
$76.9 Billion
$35.6 Billion
$17.0 Billion
$9.2 Billion
$87.5
$71.2
$59.4
$472.9
$53.3
$56.8
$34.8
$34.0
$157.7
$74.4
$35.6
$19.6
N=7,501 respondents
© 2010 Cisco and/or its affiliates. All rights reserved. 16
N=7,501 respondents
8.2 Indian business and IT leaders
8.0 Chinese business and IT leaders
7.9 Brazilian business and IT leaders
6.7 Non-emerging market business and IT leaders
7.4 Mexican business and IT leaders
6.6 Australian business and IT leaders
10-point scale: 1 = extremely weak ability; 10 = extremely strong ability
Impact
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Thank you.