how to find money in digital disruption

How to Find Money in the Digital Vortex

How Digital Disruption Is Redefining Industries

Martin McPheeSenior Vice President, Cisco

November 2015

© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Public

Disruptive Nature of Connections is Driving Value Through Three Digital Business Models

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• Price transparency• Consumption-based pricing• Reverse auctions• Buyer aggregation • Rebates and rewards

• Customer choice• Personalization• Automation • Lower latency• Any device, anytime

• Marketplaces• Crowdsourcing• Peer-to-peer • Sharing economy• Data monetization

Frictionless Life Hyper Relevance Community Platform

$Cost Value Experience Value Platform Value

© 2015 Cisco and/or its affiliates. All rights reserved Cisco Public

Combinatorial Disruption: Tesla

Cost ValueLower petrol costsLower electricity costsFree upgrades

Experience ValueInnovative capabilities (self-driving)CustomizationDirect sales modelConcierge service

Platform ValueSoftware platform (apps)Modular designSupercharging network

$


Asia-Pacific Going Digital

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1.4 Billion+ Internet users

>1 Billion Smartphone users by end-2015

>60% of the Asia-Pac’s internet user base is under 35

906 Million active mobile social media users

Consumers in Singapore own an average of 3.3 connected devices, one of the highest in the world

IoT and M2M market estimated to reach $57.9 Billion by 2020

Over 50% of global retail ecommerce sales driven by Asia-Pacific; $15 Billion in mCommerce sales from South Korea alone

Source : iab Singapore; All stats March 2015 or later


Key use cases from top 3 industries:

• Manufacturing: Predictive maintenance, Energy management, Quality & defects control automation

• Retail: In-store analytics, Remote expert, Theft reduction/ physical security

• Information & SP: SP as an enabler for digital economy, Network transformation, Personalized customer services through Big Data analytics

Digital Economy Impact (Asia-Pacific)

Agriculture, Forestry, Fishing

Education

Real Estate, Rental, Leasing

Oil & Gas

Utilities

Administrative/Waste Mgmt Services

Other Business Services

Construction EPCM

Healthcare

Mining

Arts, Entertainment, Recreation

Transportation and Logistics

Financial Services

Public Sector

Information and SP

Retail

Manufacturing

0 100 200 300 400 500 600 700

Asia-Pacific: Digital Economy Opportunity (3 Year VaS)

VaS in $ bn

Asia-Pacific Total % of Global

3 year VaS $1.3T 24%

10 year VaS $7.9T 26%

Gross Domestic Product* $15.9T 29%

(*) Asia-Pacific GDP in 2014 at constant prices ($ 2005 prices)


Key use cases from top 3 industries:

• Manufacturing: Predictive maintenance, Energy management, Quality & defects control automation

• Retail: In-store analytics, Remote expert, Theft reduction/ physical security

• Financial Services: Omnichannel sales & services transformation, Remote expert

Digital Economy Impact (Singapore)

Singapore Total % of Global

3 year VaS $11.1B 0.21%

10 year VaS $72.9B 0.25%

Gross Domestic Product* $208B 0.36%

Agriculture, Forestry, Fishing

Mining

Oil & Gas

Utilities

Real Estate, Rental, Leasing

Education

Construction EPCM

Arts, Entertainment, Recreation

Other Business Services

Administrative/Waste Mgmt Services

Transportation and Logistics

Public Sector

Information and SP

Healthcare

Financial Services

Retail

Manufacturing

0.0 0.5 1.0 1.5 2.0 2.5

Singapore: Digital Economy Opportunity (3 Year VaS)

VaS in $ bn

(*) Asia-Pacific GDP in 2014 at constant prices ($ 2005 prices)


City of Seoul’s Connected Public Transit System Turns into a Profitable Business

Satisfaction rate for public transportation has grown

from less than 50 percent to 85–90 percent; 7.6 billion data points collected per

year

• Algorithms and analytics disseminate and manage arrival times, traffic flow, and other citizen services via Smartphone app

• What is Connected? Buses, Taxis, Traffic signals and other public transit services

© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Public 9


Ti Xing Power Company Improves EnergyManagement with Real-Time Monitoring

Improved quality of power supply; Optimized operation

of thepower distribution network

• Connected Power Distribution Stations shorten fault identification, fault isolation and power restoration time

• What is Connected? Sensors on transmission cables, transformers, switchgears, meters and Consumers



Hong Kong Academy Goes BYOD to Support Digital Learning

Connecting teachers and their devices with online

tools and resources helped Hong Kong Academy improve its students’ learning experience

• BYOD program helps with high-speed connections across personal devices of teaching staff

• Location data on Wi-Fi users to provide specific location based services

• What is Connected? Personal devices of Teaching and Support Staff



UNSW Works Toward Creating a Digital Campus of the Future

Connected 55,000 peopleusing 168,000 devices

• Sensors on trash bins• Video surveillance to identify

common areas for cleaning• Video-enabled classrooms• Cloud based applications

• What is Connected? Trash Bins, Video surveillance systems, Classrooms, Devices of Students and Staff



Top Implications of Digital Disruption

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Innovation is more than ideation

Context is king

Data is everywhere, insights are scarce

Drafting only works in racing

Real time is too late 5

4

3

2

1


IMAGINE…


Stay Connected

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EMAIL

@mcphee_martin

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MartinMcPhee

Thank you
