Digitization the world trough Internet of Everything

Roberto Junco
Consulting Systems Engineer IoT BU
2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

The Internet is changing everything

Waves of Internet Growth

Fixed
Computing

(you go to the device)

Mobility / BYOD

Internet of Things

(the device goes with

you)

(age of devices)

Internet of
Everything

Networked (people, process, data,

Devices
things)
(2015 VNI):
(including devices)

50B Things

200M

10
B

14.2
Billion

Digitalize the world

1995

2000

2010

2020
Sources: Cisco VNI, Cisco Consulting

Digitalize the world

The Internet of Things is the intelligent

connectivity of physical devices, driving
massive gains in efficiency,
business growth, new experiences and
quality of life

Digitization, IoE and IoT

Accelerate Business Processes, Introduce New Services

UPS Tracking
Data Driven Business
Intelligence

People

Enterprise

Home

Cities
2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

From M2M to the Internet of Everything

Business
Application #1

Business
Application #2

Business
Application #3

Business
Application #1

Business
Application #2

Business
Application #3

Converged Application Infrastructure

Network
#1

Network
#2

Network
#3

Converged IP-Based Network

Existing Proprietary Vertical

Applications and Networks
Device #1

Device #2

Device #3

Device #1

Device #2

Device #3

Converged Network Based on Open

Standards and Common Data Models

2010 Cisco and/or its affiliates. All rights reserved.

Cisco Systems, Inc

How to identify if someone has Stress ?

With contextual information
Heart Beat Rate ?

What is the temperature ?

Is the person in the traffic ?

Movement

Is it raining ?
Is the person alone ?
9

IoT System
VERTICAL
SOLUTIONS
Transportatio
n
Oil and Gas
Manufacturi
ng
Service
Provider

APPLICATIONS

ECOSYSTEM

City
Defense
Utility
Public Safety

Network
Connectivity

Fog
Computing

Data
Analytics

Security
Cyber and
Physical

Management
and
Automation

Application
Enablement
Platform

IoE Economic Value

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

11

Customer
Experience

$ 3.7 T

Innovation $

3.0 T

IOE Economic Impact by 2020

Employee
Productivity

$ 2.5 T

Supply Chain
& Logistics

$ 2.7 T

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

IOE Business Impact in RETAIL

Industry Challenges

21%
33%
72%
60%

Enter store, but dont find

what they are looking for
Recently unable to find a
salesperson to help them

In-store issue caused of

out of stock
Established brand
preference drove sales

2014 Cisco and/or its affiliates. All rights reserved.

Internet of Everything Opportunity

Enhance
Enhance the
the Customer
Customer Experience
Experience
Increase
Increase Revenues
Revenues
Increase
Increase efficiency
efficiency and
and productivity
productivity
Lower
Lower Operating
Operating Costs
Costs
Mitigate
Mitigate risk
risk

$1.6T
Cisco Confidential

13

IOE Business Impact in Supply Chain

In Transit Visibility and Efficiency improvement
This type of available granular, precise information recorded directly
in and during supply chain operations activities has been
demonstrated to deliver an average supply chain operations cost
savings of 3 percent to 5 percent and inventory investment
savings of 7 percent and more. When combined, these savings
have reduced the Unit Cost Of Goods Sold by an average of 0.5
percent for the products that were analyzed By Joe McKinney and Arthur
Radford
http://www.supplychain247.com/article/the_financial_value_of_in_transit_cargo_tracking_data

2014 Cisco and/or its affiliates. All rights reserved.

Cisco Confidential

14

The powerful capabilities of Smart,

Connected products not only
reshape competition within an
industry but they can expand the
very definition of the industry itself
Michael Porter & James E. Heppelmann, HBR, Nov, 2014

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Redefining Industry Boundaries

Based on Managing the Internet of things,HBR, Porter & Heppelmann, Nov 2014

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Maturity Model for Products

Level 1 - Unconnected
Level 2 -Connected Level 3/4 -Serviceable & IntelligentLevel 5/6 -Optimized &
Differentiated
Limited Product Feedback
High Cost of Service

2010 Cisco and/or its affiliates. All rights reserved.

Remote Access
Predictive Maintenance
Fragmented Information View and analyze Product data
Reactive Response to Issue
Electronic Software Delivery

Enterprise Integration
Track and Locate / Inventory Management
New Revenue-generating capabilities
Mobile Integration

Cisco Confidential

Based on Product Maturity Model by Axeda - www.axeda.c

(Hung LeHong, Gartner)

MANAGEOptimize
OPERATE...Remote
MONETIZE.by USE
EXTEND..Digital Supply Services

Top Line

Bottom Line

Think Usage Models if Digitized

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Conclusions
2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

19

The Last Forgotten Grocery Item

AT&T with Hy-Vee Partner on a Virtual Shopping Assistant
Launched mobile
application for shopping
lists, real-time location
of store items and
coupons
Special offers are pushed
to the shopper based on
in-store location and
preferences
Shoppers can opt-in
for alerts on forgotten
items based on store
location

The Last Car Accident

Vodafone with CleverMiles Partner on Auto Safety
Vodafone M2M SIMs
installed as part of
CleverMiles plug-in
auto service
Driver performance such
as speed, acceleration and
braking are monitored
Captured analytics
offer detailed analysis
of driver behavior and
opt-in incentives for
safe driving

Business Outcomes
One team manages the
entire global network
Front line engineers work
with experts anywhere
166% ROI in first 5 years

Approach
Connected Plantwide Ethernet
Factory Automation
Connected
Machines

IoE presents several Challenges

Security breaches:

New endpoints in/out network

Privacy breaches: Storing/Losing/Selling customer things data

IT/OT not aligning:

Political struggle, asset

responsibility/accountability

Budget overruns:

Data, licenses, m2m plans

Lack of innovation:
Biz Alignment:

Not contributing to new models

No company business impact

2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Take Away
IoE brings Digitization to the Economy and new business models that

are changing the industry.

Showing IoT like sensors that are connected to the network it is a

limited vision. We build the base of the IoE connecting things,

building systems and network architectures to support the
interconnection and process that improve business models.

IoE will force the question What business am I? The changing

nature of products is disrupting value chains and forcing companies

to rethink nearly everything; to how they manufacture, operate, and
service them.

IoE improves the way we live, we work now.

24

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