cisco internet of everything - adtech asia 2015

Internet of Everything Huw HopkinDemand Generation

July 2015

Opportunity for Marketers

Cisco Confidential 2C97-732497-00 © 2014 Cisco and/or its affiliates. All rights reserved.

https://www.youtube.com/watch?v=Kt5VulFqBm4

https://www.youtube.com/watch?v=Kt5VulFqBm4


A History of Connections

170 Years Ago: Invention of the Telegraph

100 Years Ago:Invention of the Radio

70 Years Ago: First general purpose electronic computer

40 Years Ago: First Internet connection

20 Years Ago: World Wide Web

TodayIntelligently Connecting People, Process, Data, and Things

2003: 0.5B Connected Devices

2005: IP Traffic: 29 exabytes

2005: First Smartphone

2008: Video Traffic:21 exabytes

2012: 1B Smartphones

2010: 7B Connected Devices

2010: 0.5B Smartphones

2013 10B C Devic

2012: 50M Connected Cars

2011: 90M Smartmeters

Presenter

Presentation Notes

As people, we have a long history of making connections. From our first wired communications with telegraphs 170 years ago to the early emergence of the Internet. In the beginning, advancements occurred slowly. Today, though, innovation is happening at a remarkable rate. Estimates show that 5 exabytes of information were created between the dawn of civilization and 2002. Now, that much information is created every two days—and the pace is increasing. The type of data is also changing as we’re seeing more and more video content each year. In fact, two-thirds of all traffic will be video by 2015. It’s creating so much traffic that we’ll see the global cloud market grow 500% by 2020. And, in 2020, we anticipate that 4.5 billion new people will connect with 37 billion new devices also connecting. Everyone will be impacted by these changes—your business, your employees, the entire world. At the heart of it all is Cisco’s intelligent network. We have a long history of finding new ways to communicate and collaborate. And all of our work and foresight has brought us exactly where we are today—entering the next phase of the Internet, the Internet of Everything.


What exactly happened there?


And a lot of…


Opportunity for Marketers

Actionable data whereneeded

Collect better Insights

More customer usage intelligence Anonymous or identifiable

Data and business rules at edge of network where decisions are made… your fridge

Safe predictive insights

Customer data is protected wherever it sits and used respectfully with permission to add value


Retail Overview

33% Recently unable to find a salesperson to help them

72% In-store issue caused of out of stock

60% Established brand preference drove sales

Industry Challenges

Enter store, but don’t find what they are looking for21%

Internet of Everything Opportunity

Enhance the Customer Experience

Increase Revenues

Increase efficiency and productivity

Lower Operating Costs

Mitigate risk

$1.5T

Presenter

Presentation Notes

Retailers are all too familiar with the challenges in Store Operations. They fall into these 3 categories: Inconsistent Store Execution, Shortfalls in Customer Service and Difficulty Creating New Sources of Revenue. SOURCES: Retail Horizons: Benchmarks and Forecasts. Based on 400 respondents from 153 retail companies at NRF, Accenture Retail Consumer Service Experience Survey, 2007, Second annual Customer Dissatisfaction Study, Wharton & Verde Group Deloitte, NRF 2006 Retailers are all to familiar with the challenges associated with merchandising: Enforcing planogram compliance Reducing out of stocks Improving merchandise selection and placement Increasing market basket size Improve margin from category promotions and activities Challenges with Marketing: Determining response rates to promotions Creating media efficiencies Improving customer purchase frequency Improving brand awareness and perception Understanding customer preferences 72% of the root causes for out of stocks can be found in the store – Wharton 2005 Six out of every ten planned purchases are made because of an established brand preference – AFN March 2009 FROM RSR: In‐store marketing is as fragmented as ever, driven by opportunities that cross merchandising and supply chain with promotions, and marketing departments with communications. Technology only increases the number and types of dialogs that can be opened with consumers while they're shopping, which only complicates matters. Add in the fact that retailers have really only begun to scratch the surface of technology‐driven communications in stores, with things like mobile relatively untouched as part of the shopping experience, and it becomes rapidly apparent that integrated, coordinated marketing programs in stores are not coming to a retailer near you any time soon. However, in a realm where all innovations are plain to see for anyone who walks a store aisle, it will easily be the behind‐the‐scenes integration of all of these parts and pieces that will ultimately deliver a differentiated shopping experience.


Retail Solutions InfographicMonitor traffic flow and stock

outs

Manage Supply Chain

Manager queue length

Enable customer self service

Expand the retail experience to

venuesIntegrate external

ecosystem intelligence

Provide real time business

decision support

Presenter

Presentation Notes

Increase the font of the dark boxes and make them bigger Keep the green boxes at the same font Have the inlay image be a blow-up of a smaller section..


Connected Retail RoadmapVa

lue

Cap

ture

Innovation ImpactingShopping Experience

Future

Digital Media Store

Experience

Smart Locker

CMX Digital Experience

Remote Expert and Mobile

Advisor

Store Operations Analytics

Store in a Box

Shopper Insights & Personalization


Store in a Box CMX Digital Experience Remote Expert/Mobile Advisor

Digital Media Store Experience

Retail Use Cases

Business Outcome

Key Capabilities

Increase operational efficiency and mitigate risk

Platform for innovation and growth

Reduce costs via consolidation

Integrate store systems with ecommerce

Add cloud to store Deliver new services

Enhance shopper experience

New understanding of customer behavior

Easy, secure onboarding of mobile devices

Wayfinding Targeted advertising

and promotions in real time

Expert advice at the pont of consideration/sale

Scale staffing resources

Cross sell and upsell Accelerate sales cycle

Enhance shopper experience and drive revenue growth

More media rich environment for shoppers

Highlight products/ promotions to increase sales

Promote the brand with video and advertising

Enhance shopper experience and drive revenue growth


Source: “The Internet of Everything: A $19 Trillion Opportunity,” Cisco Consulting Services, 2014

Cisco Calls This Opportunity the Internet of Everything (IoE)

Leveraging Data into More Useful Information

for Decision Making

Data

Delivering the Right Information to the Right Person (or Machine) at the Right Time

ProcessConnecting People

in More Relevant, Valuable Ways

People

Physical Devices and Objects Connected to the Internet and Each Other for Intelligent Decision Making (IoT)

Things

Presenter

Presentation Notes

Internet of Everything (IoE) brings together people, process, data, and things to make networked connections more relevant and valuable than ever before-turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunity for businesses, individuals, and countries. The value comes from bringing together information from sources that were never connected before to produce insights, experiences, and better decisions. To better understand this definition, we must first break down IoE’s individual components: People: As the Internet evolves we will be connected in more relevant and valuable ways. Today, most people connect to the Internet through their use of devices (such as PCs, tablets, TVs, and smartphones) and social networks such as Facebook. In the future and according to Gartner, people themselves will become nodes on the Internet, with both static information and a constantly emitting activity system. Process: New business process automation and business process transformation will be required to handle the Internet of Everything….. as approaching digital transformation within traditional business structures won’t work. It’s difficult to set quantifiable objectives if the ultimate business model you’re driving toward is unknown. The Internet of Everything will require an approach which is about discovering real breakthroughs in current performance versus marginal improvements. It’s about taking risks and working iteratively against unknown outcomes using agile principles of operating. Data: Rather than just reporting raw data, connected things will soon send higher-level information back to machines, computers, and people for further evaluation and decision making. This transformation from data to information is important because it will allow us to make faster, more intelligent decisions, as well as control our environment more effectively. Things: This group is made up of physical items like sensors (e.g. pressure, radio activity, image, temperature, vibration), consumer devices and enterprise assets that are connected to both the Internet and each other. These things will sense more data, become context-aware, and provide more experiential information to help people and machines make more relevant and valuable decisions.


Make IoE More Real to Our Customers with Relevance in Verticals and Buyer Care-Abouts

Toda

y’s

Tech

nica

l Out

com

esTo

mor

row

’s

Bus

ines

s O

utco

mes

CEO

CIO

ITOT

LoBs

Buyers in the MixFinancial Services

Mfg.

Government

Energy

Retail

Trans

Healthcare

Internet of Everything

Internet of Things

Industry Relevant Technology Solutions


IoE Is Driving Exponential Change

“The next big wave is going to be around the Internet of Everything. It will be implemented by combining things with processes, with business changes, with people. And, it will drive a productivity number, and a financial number, that is just mind-boggling.”– John Chambers

IoE has the potential to grow global corporate profits by an estimated 21% by 2022

Firms captured just 53% of IoE’s Value at Stake for 2013, leaving $544B of unrealized value

By 2020, there will be approximately 50 billion objects connected to the Internet

In 2012 alone, we created more data than in the previous 5,000 years combined

Globally, machine-to-machine IP traffic will grow 20-fold from 2012 to 2017

By 2014, the number of mobile-connected devices will exceed the number of people on earth

An estimated 77 billion apps will be downloaded during 2014

2/3 of the world’s mobile data traffic will be video by 2015

Presenter

Presentation Notes

The IoE is set to create an unprecedented level of disruption across industries, globally. This slide provides a few examples of how IoE is changing the world. By 2020, there will be approximately 50 billion objects connected to the Internet, generating a tremendous amount of data. Organizations that can effectively use these connections, and the data they generate, to achieve insights into their business and adapt their business processes accordingly will be able to achieve significant competitive differentiation. http://www.crn.com/news/networking/240162144/cisco-ceo-chambers-expect-brutal-industry-consolidation-around-internet-of-things.htm

Usage Statistics Drive Customer Success


To Capture IoE Value, Firms Must Apply Technologyin Innovative Ways...

Relative Importance of IoE Enablers in PredictingValue Realized

20.2

23

27.4

29.4

0 10 20 30

Technology Infrastructure (Things)

Data

Process

PeopleIoE Success Will Depend on Innovative Application of Technology to Improve the “People” and “Process”Elements of the Business

PercentageSource: IoE Value Index, Cisco Consulting Services, 2013

Presenter

Presentation Notes

Technology is an essential foundation for realizing IoE profits, but it is not sufficient on its own, as Cisco’s research on the value companies are realizing from IoE shows. The quality of technology infrastructure and tools predicts just 20 percent of the variation in value realized accounted for in our model, with data another 23 percent. People and process factors accounted for nearly 57 percent. This means that companies with superior management capabilities are able to envision how technology can be used to improve operations, anticipate market transitions, and bring innovative products and services to market that take advantage of these transitions. It is the effective use of technology – of data and things – that will separate winners from losers in the IoE Economy. Winners will be companies that successfully apply technology to improve the “people” (inclusiveness practices, human-capital practices) and “process” (information-management practices, measurement practices) elements of their business.


Cisco Active Advisor – Remote Analysis of Devices

• Analyze your network health and receive personalized, actionable recommendations to improve your network function.

• Compare your network against Cisco Validated Designs.

• Automatically identify obsolete or end-of-support equipment.

• Identify warranty and service contract status.• Improve security through timely security advisories

*Source: Dimension data usage statistics of their customers

11% of devices are obsolete and could have failures that are service critical*


Customer Usage Stats can see Lifecycles and failure by reason

Source: Dimension data usage statistics of their customers

Data Driven Digital/Virtual Sales


of B2B Companies say:“B2C has fundamentally

changed the way we MUST interact with

our clients”

We See An Ever Changing Buyer

of B2B buyers start their search for a solution to their problem online

Most B2B purchases start in-bound, however most companies are still focusing on outbound

92% 99.5% 66%

of mobile users will leave if experience is

not responsive

• Relevant to me

• Speak to my needs

• Anticipate my needs

• Pick up where you left off

• Everywhere I am

• Continuous over time

Customer: Cisco:

The marketing model that creates a personalized, relevant experience that delivers higher impact, value and revenue in a measurable and predictive way

B2Me Value Proposition

35%-50% of sales go to the B2B vendor that responds first.

-InsideSales.com

B2B companies that excel at lead nurturing generate 50% more sales ready leads at 33% lower cost.-Forrester Research

Personalized emails improve click-through rates by 14%, and conversion rates by 10%. -Aberdeen Group

66% of buyers indicate that "consistent and relevant communication provided by both sales and marketing organizations" is a key influence in choosing a solution provider. -Genius.com


Sales data & predictive triggers

Digital listeningOn the Web

Cisco.com web page visits and usage frequency

Hotspot for Development

Digital Sales Driven by Digital Insights

News, Company Info


How often do you sell when you can be there…virtual sales & marketing is transforming


Prospect Customer

User Customer

• Usage driven insights• Lifetime value• Key moments• Delight with predictive• Sharing and mutli-

usage

• One purchase moment• Lost contact• No shared user

insights• Missing key moments


Marketing Manager of Internet of Things

Connected Intelligence

Observes life Challenges/Opportunities

Interpretive data capability

Customer value not $$

Thank You -Now Go and Connect the World

Huw Hopkin

sg.linkedin.com/in/huwhopkin

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