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© 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
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“I cannot imagine a life without…”
Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien e.V., 2010
% of 14 – 29 year olds
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Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
• A mobile phone: 97%
% of 14 – 29 year olds
“I cannot imagine a life without…”
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Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
• The Internet: 84%
% of 14 – 29 year olds
“I cannot imagine a life without…”
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Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
• A car: 64%
% of 14 – 29 year olds
“I cannot imagine a life without…”
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Source: BITKOM – Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
• My current partner: 43%
% of 14 – 29 year olds
“I cannot imagine a life without…”
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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
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1%
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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
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Karl Benz Henry Ford
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0
20000
40000
60000
80000
100000
120000
140000
1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916
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Connecting the Unconnected
Intelligent Infrastructure
Rapid Service Creation and Market Agility
Connecting to More Things for More Insights
Secure, Unified Experiences
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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
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
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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
$4.5 trillion
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IoE: What Do Companies Think?
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N=7,501 Respondents
Viewed IoE pervasiveness as having “increased” or “significantly increased” over past 3 years
Believe IoE pervasiveness will “increase” or “significantly increase” over next 3 years
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Top 3 Business Drivers of IoE
Accelerating Pace of
Innovation
Satisfying Customer
Demand for New Ways of
Interacting
Need to Automate Business
Processes
N=7,501 Respondents
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Top 3 Technology Drivers of IoE
New Types of Devices
Volume of Data
Generated
Cloud-based Technology
N=7,501 Respondents
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Top Business Benefits of IoE
Operational efficiency
(Value drivers: asset utilization, supply chain, employee
productivity)
Customer service
(Value driver: customer experience)
Collaboration within company
(Value drivers: innovation, employee
productivity)
N=7,501 Respondents
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44.9%
45.8%
46.0%
50.7%
50.8%
54.2%
57.4%
60.5%
65.4%
55.1%
54.2%
54.0%
49.3%
49.2%
45.8%
42.6%
39.5%
34.6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Retail / Wholesale /
Energy
Manufacturing
Transportation
Other
Healthcare / Life sciences
Services
Financial services
High tech / Telecoms
IoE Value Realized IoE Opportunity
Value at Stake 2013 ($B) $118.3
$115.2
$276.9
$98.7
$65.4
$23.6
$224.4
$55.0
$179.6
N=7,501 Respondents
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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)
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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)
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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
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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
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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
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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
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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
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Digital Band-Aids
Smart Pill Bottle Caps Asthma inhalers
'Electronic Skin' Patches Monitor Health Wirelessly
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