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Global Impact of the Internet of Things Wim Elfrink

EVP, Industry Solutions and Chief Globalisation Officer, Cisco

February 20, 2013

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Three Major Trends Are Reshaping the Global Landscape

Social Demographics Economics Environmental/

Energy

Experiencing The Biggest Economic and Social Shifts in History

Source: World Population Prospects: The 2010 Revision, United Nations Population Division

2050 Estimate million % Decline

from 2000

Portugal 10.0 (2%) Europe 691.0 (5%) S. Korea 44.0 (5%) Slovakia 4.9 (9%) Hungary 8.9 (13%) Germany 70.5 (14%) Poland 32.0 (17%) Japan 101.6 (20%) Russia 116.0 (21%) Romania 17.2 (22%) Ukraine 35.0 (28%) Bulgaria 5.3 (33%)

Elderly (65+ yrs.) 2000 2050

World 6.8% 16.2% USA 12.4% 21.6% China 6.8% 23.3% Sweden 17.2% 24.1% Canada 12.6% 25.5% Netherlands 13.6% 25.6% Switzerland 15.4% 26.0% Europe 14.8% 27.4% Poland 12.2% 29.9% Singapore 7.2% 32.6% Germany 16.4% 32.5% Italy 18.4% 33.3% S. Korea 7.3% 34.2% Japan 17.2% 37.8%

2050 Estimate million % Growth

from 2000 World 9,149.9 50% Lebanon 4.6 25% Brazil 222.8 28% India 1,613.8 55% Bangladesh 222.4 58% Egypt 129.5 85% Jordan 9.8 105% Saudi Arabia 43.6 110% Pakistan 335.1 126% Nigeria 289.0 132% Iraq 63.9 160% Ethiopia 173.8 165% Congo 147.5 190% Afghanistan 73.9 260% Qatar 2.6 343%

World 6.8% 16.2% China 6.8% 23.3% USA 12.4% 21.6% Netherlands 13.6% 25.6% Japan 17.2% 37.8%

Nigeria 289.0 132% Saudi Arabia 43.6 110% Egypt 129.5 85% India 1,613.8 55% World 9,149.9 50%

Europe 691.0 (5%) Germany 70.5 (14%) Russia 116.0 (21%)

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Developed World

What Are the Challenges We Need to Address? Emerging Countries

US: 600K manufacturing jobs unfulfilled. 52% of US employers / 80% of Japan employers have trouble finding manufacturing talent

Employers: 67% in India / 57% in Brazil have trouble finding manufacturing talent. 10M manufacturing jobs unfulfilled globally

Developed economies: Shortage of 18M college educated workers in 2020. Surplus of 35M workers without college education

China: Shortage of 23M college educated workers. 58M surplus low skill workers in emerging markets

US: 2M+ home-care workers needed by 2020. Shortage of 200K nurses, 130K doctors

India: Shortage of 1M nurses, 600K doctors today. 3B people will be connected worldwide

Stimulus packages for revitalization of 100+ cities

700M people will be urbanized. 100 new cities with 1M+ people

US: IoT driven productivity increase of 2.6% would deliver a gain of 25% of today’s per capita GDP by 2030

IoT productivity gains would increase GDP in APAC by $4.2T, LATAM by $0.9T in 2030

What Are the Challenges We Need to Address? The Main Challenges

New Value Creation / Productivity Improvements

Access to Healthcare &

Education

Talent Mismatch / Supply & Demand

Energy Mgmt / Urbanization

Secure and Environmentally Friendly

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The Internet of Things

50

2010 2015 2020

Billions (devices)

0

40

30

20

10

50 Billion

“Smart Objects”

25

12.5 7.2 6.8 7.6

Inflection point

World Population Source: Cisco IBSG

Enable Productivity

Create New Value

Green & Secure

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Cities are Already Run on Networked Information Connection and Monetization of Citizen Services

Cloud & Services

Cloud & Services

Responsive Store

Municipal Command & Control Center

Smart Grid

Hospital Optimization

Comms Network

Optimization

Home Energy Mgmnt

Traffic Flow

Optimization

Factory Optimization

Logistics Optimization

Traffic Cameras

Automated Car System

Intelligent Digital Signage

Connected Ambulances

Intelligent Medical Devices

INTELLIGENT CITY INTELLIGENT

HOSPITAL INTELLIGENT

HIGHWAY

INTELLIGENT FACTORY

Source: Intel

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Intelligent Networks Transform the Delivery of Citizen Services

Transportation

Real Estate Sports & Entertainment Government

Utilities

Education

Healthcare

Safety & Security

Integrated Operations Centre Citizen Services Menu More

Important

Less Important

Data

Information

Knowledge

Wisdom (Scenario Planning)

The Opportunity: Turning Data into Wisdom

Big Data becomes Open Data for Citizens to Use

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Technology Will Be Consumed As Services

Alert That Your Child Is At School

Health Care Monitoring From Home

Access expert or specialist government services

$$ $

$$

Check mobile phone for Next Bus / online on bus $ TelePresence a Friend From Home $$

Home energy management and technical services $ Automatic Guidance to Parking Spot / Elevator Held $ Access to Security Services $

My Total = $$/month

Citizen Services Menu (example)

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Why Now? Growth of Software Applications

Source: Apple, Google, Windows Mobile, Cisco Analysis, NY Times

2010

iPhone Apps Alone

Today

Apple and Google Apps Worldwide

2020

Apps Worldwide

2007

Total Mobile Apps

Worldwide Every Week 100 Movies & 250 Books Released versus 15,000 Apps

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Benefits of Sustainable Communities

30% 50% 20% 30%

Healthcare: $3/Doctor Visit

Education: $3/Student/Month

Energy Savings

Water Consumption

Crime Rates Traffic Jobs

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Are you With Me?

Our Conversation Today

Are you Cynical?

Are you Skeptical?

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The Future of Work: Dynamic, Seamless, Connected, Virtualized

Clusters of Experts

Spontaneous Collaboration Mobility

Young Generation

Pervasive Video

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Smart Work Centers: The Workplaces of the Future Amsterdam South Korea

Parking

Individual Work Spaces Mobile

TelePresence Virtual Education and

Healthcare Services Virtual

Social Communal / Lounge Areas Child Day Care. Restaurant

Function Room

Traditional Office Space Visual

Collaboration Rooms. Social Programs. Networking

Social, Economic and Environmental Components

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Collaboration Will Be Increasingly Virtual

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How Can We Enable… …the creation of a new industry

& People

Visionary Leadership

Global Open Standards

Smart Regulation

Public Private Partnerships

New Ecosystem

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Thank you.