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

The Internet of Everything (IoE) Value Index

www.InternetofEverything.com#IoE

June 19, 2013

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Rob Lloyd,Cisco President of Development and Sales

Joseph Bradley, General Manager, Cisco Consulting Services

Cisco Presenters:

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Evolution of the Internet

INTELLIGENT CONNECTIONS

Email Web Browser Search

E-commerce Digital

Supply Chain Collaboration

Social Mobility Cloud Video

Connecting: People Process Data Things

Internet ofEverything

Digitizethe World

ImmersiveExperiences

Digitize Interactions (Business &

Social)NetworkedEconomy

Digitize BusinessProcessConnectivity

Digitize Access to Information

BU

SIN

ES

S A

ND

SO

CIE

TAL

IM

PA

CT

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Internet of Everything

The Opportunity Ahead and Where It Stands Today:

THE DEFINITION:The Internet of Everything is the networked connection of people, process, data and things. The benefits of IoE are derived from the compound impact of connecting people, data, process and things, and the value this increased connectedness creates as “everything” comes online.

IoE has the potential to increase global corporate profits by about 21 percent OVER THE NEXT DECADE

(2013-2022)

FOR A TOTAL VALUE OF

$14.4 trillion (net profit)

The Internet of Everything (IoE) will enable global businesses to

generate at least

$613 BILLION in Global Profits in 2013

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The Internet of Everything Value Index

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• 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

Internet of Everything:How It Delivers Value — and How Much Is at Stake

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

use

ca

ses

Internet of Everything: How Much Value Will Firms Realize in Calendar Year 2013?

Study executed by the

CISCO CONSULTING SERVICES

RESEARCH & ECONOMICS

PRACTICE with advice on questionnaire

development provided by the MIT Center

for Digital Business

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

Conducted ground-breaking online

survey of 7,501 BUSINESS AND IT

DECISION-MAKERS, split between

enterprises and mid-sized companies

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IoE Value Index:$1.2T of Value at Stake Is Available to Firms in CY2013

Global Value at Stake2013-2022

(10-year total)

$14.4T*2013$1.2T

Value at Stake 2013 (Jan. – Dec.)

$1.2T

Value realized in

2013

IoE Value Index

$613B(53%)

$544B(47%)

Value “left on table”

in 2013

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.

• IoE will generate at least $613 BILLION IN GLOBAL PROFITS IN 2013 with another $544 billion available if companies adjust strategies.

• The United States ($253 BILLION), China ($76.9 BILLION) and Germany ($54.4 BILLION) are realizing the greatest absolute value in 2013.

• Firms in developed markets are now realizing the greatest share of IoE value. However, the narrow range (15.2 PERCENT) between the top and bottom countries, highlights the parity among firms worldwide.

• Business leaders in Emerging Countries clearly expect to Leverage IoE to their advantage.

• The key drivers of the Internet of Everything value in 2013 are supply chain, at $158.7 billion, and customer experience, at $145.2 BILLION.

• IoE-generated profits underscores that Size of Company Is Not an Indicator of who will best leverage the Internet of Everything.

• Many business leaders around the globe believe that IOE WILL HELP DRIVE Higher Wages, Job Growth and Improvement in Information Security.

Internet of Everything: Just The Facts

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To Capture More Value in The IoE Economy, Companies Must:

Invest In High-quality Technology

Infrastructure and Tools

Adopt and Follow

Inclusive Practices.

Develop Effective

Information-Management

Practices

Internet of Everything Value Index:The Tech Roadmap to IoE Profits

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To Maximize Value from IoE, Firms Should Focus on the IoE-Driven Capabilities that will Benefit Their Industries Most:

Internet of Everything Value Index:The Tech Roadmap to IoE Profits

MANUFACTURING FIRMS: real-time, multidimensional data analysis; integrated

video collaboration; remote tracking of physical assets.

ENERGY FIRMS: integration of sensor data; ability to locate experts;

predictive analytics.

RETAILERS: data visualization and predictive analytics; BYOD; location-

based marketing.

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Key Takeaways• The Internet of Everything is the networked connection of

people, data, process and things.

• IoE is poised to generate at least $613 billion in profits in 2013 by creating greater efficiencies and better customer experiences.

• Many business leaders around the globe believe that IoE will help drive higher wages and job growth, and improvement in information security.

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Jeff Hagins,CTO, SmartThings

Guest Presenters:

Bruno Magrani,Researcher, Center for Technology and Society at the School of Law of the Rio de Janeiro Getulio Vargas Foundation (FGV)

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SmartThings: “Conceptual Layers of the IoE”

Connected Devices

Connectivity, Transport, & Event Routing

Physical Graph

User-Managed Security

Accessibility & Control

Application (Intelligence & Predictability)

User Experience

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Q&A

Please visit www.InternetOfEverything.com

Thank you.