wim elfrink keynote slides

October 14-16, 2014 • Chicago, Illinois

Wim Elfrink, EVP, Industry Solutions and Chief Globalisation Officer

The Internet of Things: Capturing the Accelerated Opportunity

The Internet of Things Accelerated Progress

Why IoT One year ago

Today

How We capture the IoT opportunity

©2014 Cisco and/or its affiliates. All rights reserved. 2


From Hype to Reality…. “Up and to the Right”

Big Data It’s Official: The Internet of Things Takes Over Big Data As The Most Hyped Technology. 8/18/2014

Internet of Things

Source: Forbes and Gartner Hype Cycle 2014


From Hype to Reality…. “Up and to the Right”

It’s Official: The Internet of Things Takes Over Big Data As The Most Hyped Technology. 8/18/2014

Internet of Things

Source: Forbes and Gartner Hype Cycle 2014


MSFT entered IoT

Market

Barcelona Smart City

Google/Nest Labs

acquisition

AT&T and IBM

announce IOT Vision

Facebook grabs

WhatApp for $19B

AT&T, CISCO, GE, IBM AND INTEL

form Industrial Internet Consortium

Zebra Acquires Motorola

Schneider and IoBridge Announce

Partnership

Apple announces

the First home automation

Initiative

Intel announces IoT Group

PTC drops $300M on

ThingWorx (Dec, 2013) & Axeda

(Aug, 2014)

Samsung snaps up

Smart Things for $200M

Amazon pays $1B for Twitch

Vodafone buys Cobra

Automotive Technologies

for $185M

UK Creates £45m IoT

Fund Siemens IoT Fund

But is it Really Just Hype? Accelerated IOT Progress In the Industry Key Milestones Since Barcelona IoT WF 2013

Aug. Oct. Jan. Feb. Mar. Apr. May Jun. Jul.


MSFT entered IoT

Market

Barcelona Smart City

Google/Nest Labs

acquisition

AT&T and IBM

announce IOT Vision

Facebook grabs

WhatApp for $19B

AT&T, CISCO, GE, IBM AND INTEL

form Industrial Internet Consortium

Zebra Acquires Motorola

Schneider and IoBridge Announce

Partnership

Apple announces

the First home automation

Initiative

Intel announces IoT Group

PTC drops $300M on

ThingWorx (Dec, 2013) & Axeda

(Aug, 2014)

Samsung snaps up



Vodafone buys Cobra

Automotive Technologies

for $185M

UK Creates £45m IoT

Fund Siemens IoT Fund

But is it Really Just Hype? Accelerated IOT Progress In the Industry Key Milestones Since Barcelona IoT WF 2013

Aug. Oct. Jan. Feb. Mar. Apr. May Jun. Jul.

Google acquires Nest Labs $3.2B

Samsung snaps up



UK Creates £45m

IoT Fund



Accelerated Progress for IoT: Technology Trends Connected Devices Since Barcelona, October 2013-2014

Processes Things Data

Connected to the Internet

Connections Counter

October 14, 2013

Source: Cisco Connections Counter http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/

http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342



http://blogs.cisco.com/news/cisco-connections-counter/






Accelerated Progress for IoT: Technology Trends Connected Devices Since Barcelona, October 2013-2014

Processes Things Data

Connected to the Internet

Connections Counter

Source: Cisco Connections Counter http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/

October 14, 2014










IoT Is Here. Now. And It’s Big

IoT Dashboard: IoT is Accelerating

IoT… Huge Opportunity for Ecosystem

3 Key Takeaways

2

3

1


Integrated Operations

Center

Grid

Ambulances

Medical Devices

Stadium Hospital

Optimization

Comms Network

Optimization

Home Energy

Management

Digital Signage

Traffic Flow Optimization

Factory Optimization

Logistics Optimization

Traffic Cameras Automated

Car System

A City, Country, Company with a Digital Overlay Connected Over Industry Standard Platforms

Intelligent

Connected

Cloud and Services

Platform +

Smart

FACTORY SMART

HIGHWAY SMART

CITY SMART

HOSPITAL SMART

Intelligent

Connected



Energy Mgmt / Urbanization

Barcelona: Smart City $3.6B Value Creation

Smart Citizens

Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste

Revenue Jobs Productivity Cost Avoidance Citizen Experiences

European Commission iCapital Award





Smart Citizens

“ We are obsessed with building quality of life for our citizens. We needed to break through organizational siloes and Cisco became our IoE backbone.

That is our present and the future of our city.”

Antoni Vives Deputy Vice Mayor

City of Barcelona, Spain

� 1,500 New Companies

� 56,000 New Jobs

� Mobile Collaboration: $1.6B

� Telework: $199M

� Smart Parking: $67M

� Smart Water: $58M

� Smart Lighting: $47M

Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste

Revenue Jobs Productivity Cost Avoidance Citizen Experiences

European Commission iCapital Award





“ Barcelona has a mayor who is busy transforming the cultural gem of Spain’s Catalonia region into the ‘smartest city on the planet.’ Partnerships with companies like Cisco and Microsoft are fueling development, a new tech-campus hub is in the works, and he’s connecting citizens to government services through mobile technology.”

–Fortune Magazine, March 2014

“WORLD’S 50 GREATEST LEADERS” #46 Barcelona Mayor Xavier Trias


Welcome

Deputy Mayor Steve Koch

The Internet of Things Accelerated Opportunity

Total Value Growing Markets

Sectors



7.2 6.8 7.6

World Population

Increasingly Everything Will Be Connected to Everything

Rapid Adoption rate of digital

infrastructure: 5X faster than electricity and

telephony

50

2010 2015 2020

0

40

30

20

10

Billi

ons

of D

evic

es

Timeline

50 “Billion

Smart Objects”

25

12.5

Inflection point

The New Essential

Application Centric Infrastructure


Data

Information

Knowledge

Wisdom (Scenario Planning)

Big Data – The New Norm

Less Important

More Important Big Data Doubles

Every Two Years � 90% of world’s data created

in last 2 years

� More new data generated in 2012 than prior 5,000 years

� By 2020, 40% of data will come from sensors

� Walmart collects 2.5 petabytes of data hourly from customer transactions

� Singapore generates several Terabytes of data every day

New Need for Chief Digitization or Data Officer


Awareness of the IoT Opportunity Is Pervasive…

72% Americas

79% EMEAR

91% APAC

88% IT Execs / 75% LoB

Are “very aware” or “somewhat aware” of IoT

92%

70%

84%

82%

82%

82%

79%

Utilities

Oil and Gas

Manufacturing

Retail

Metals & Mining

Transportation

Public Sector

Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team


…and Organizations Are Going To Invest

81% Americas

75% EMEAR

92% APAC

82% IT Execs / 74% LoB

Investments to increase “somewhat” or “significantly” over 3 years

91%

76%

89%

86%

86%

79%

77%

Oil and Gas

Utilities

Manufacturing

Transportation

Retail

Metals & Mining

Public Sector

Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team


Accelerated Opportunity Total Global Economic Value of IoT

Based on 61 Real-World Use Cases

Value Sources

$6.4T Private Sector

$1.6T Public Sector

$8.0T Trillion

Economic Value

Asset Utilization

$2.1T

Supply Chain/ Logistics

$1.9T

Innovation/ Revenue

$2.1T

Customer/ Citizen Experience

$0.7T

Employee Productivity

$1.2T


IoT Economic Value by Industry

Source: Cisco Consulting Services, 2013

Administration (6%)

35%

30%

25%

20%

15%

10%

5%

0% 0 20,000 15,000 10,000 5,000

Deg

ree

of Im

pact

(V

alue

at S

take

/Indu

stry

Siz

e)

Retail trade (10%)

Information services (4%)

Manufacturing (Energy, Oil & Gas) (34%)

Public Sector (20%) Healthcare (5%)

Finance & insurance (4%)

Professional services

Education

Industry Size ($B)

Spheres sized by amount of Economic Value


Interactive IoT Global Deployment Map

� 260 Global Use Cases � Across Industries � Interactive at Forum Kiosks




Chicago




Connected Street Lights




Real Time Bus Schedules




Smart City



Internet of Things Reference Model

Levels

Application (Reporting, Analytics, Control)

Data Abstraction (Aggregation & Access)

Data Accumulation (Storage)

Edge Computing (Data Element Analysis & Transformation)

Connectivity (Communication & Processing Units)

Physical Devices & Controllers (The “Things” in IoE)

Collaboration & Processes (Involving People & Business Processes)

Sensors, Devices, Machines, Intelligent Edge Nodes of all types

Center

Edge 1

2

3

4

5

6

7


Internet of Things Reference Model

Levels

Application (Reporting, Analytics, Control)

Data Abstraction (Aggregation & Access)

Data Accumulation (Storage)

Edge Computing (Data Element Analysis & Transformation)

Connectivity (Communication & Processing Units)

Physical Devices & Controllers (The “Things” in IoE)

Collaboration & Processes (Involving People & Business Processes)

Sensors, Devices, Machines, Intelligent Edge Nodes of all types

Center

Edge

Key Points: � A guiding model for IoT implementations � Creates an IoT technology taxonomy � Helps accelerate IoT deployments � Supported by 20 companies – members of the

architecture workgroup � Endorsed by IIC (Industrial Internet Consortium)

1

2

3

4

5

6

7

The Internet of Things Capturing Opportunity

Building Blocks The Foundational Impact

On Society



Impediments to IoT Progress

Business Readiness

Talent Technology Complexity

Data Policies Security


Where are the Skills Gaps? What is the Impact for IoT?

Global shortage of workers over next 5 years

Increase in demand from 2011 to 2013

Jobs needed in next 10 years

Security Data Science Information and Communications Technology

©2014 Cisco and/or its affiliates. All rights reserved. 32 Source: Cisco's 2014 Annual Security Report Career Builder, IBSG, Bureau of Labor and Statistics

Where are the Skills Gaps? What is the Impact for IoT?

Global shortage of workers over next 5 years

Increase in demand from 2011 to 2013

Jobs needed in next 10 years

Security Data Science Information and Communications Technology


Industry Talent Consortium to Address Skill Gaps

Careerbuilder.com

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAQQjRw&url=http://www.pearson.com/news/logos-style-guides.html&ei=8qsAVOW2Fo30igKKloGAAQ&bvm=bv.74115972,d.cGE&psig=AFQjCNHEJeOCzPQyiFRJaHIFPWvJ_WXc_w&ust=1409416562409255


Uber: Most Transformational and Disruptive IoT Transition

� New Business and Consumption Models

� New Type of Job Model: Drivers Work When They Want

� Modernizing Economy


Key Takeaways

The World is Becoming Increasingly Diverse and Digitalized

ICT… The Essential Infrastructure… IT and OT Alignment

A New Data Driven World… Chief Data Officer

Transformational Opportunities…Generating $19T

Economic Value

Future of Work in a Sharing Economy

New Ecosystems Will be Essential

Integrated Operations Centers…

Data Info Knowledge Wisdom


What Are Our Next Steps?

Thank you Wim Elfrink, EVP, Industry Solutions and Chief Globalisation Officer

Email: [email protected] Twitter: @WimElfrink

mailto:[email protected]

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