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The Internet of Everything Changes Everything
Wim Elfrink EVP, Chief Globalisation Officer
October 2, 2014
Meeting of the Minds
Cisco Confidential 2 ©2014 Cisco and/or its affiliates. All rights reserved.
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
Bill
ions
of D
evic
es
Timeline
50 “Billion Smart Objects”
25
12.5
Inflection point
The New Essential
Application Centric Infrastructure
Cisco Confidential 3 ©2014 Cisco and/or its affiliates. All rights reserved.
Data
Information
Knowledge
Wisdom (Scenario Planning)
IoE Acceleration – BIG DATA
©2014 Cisco and/or its affiliates. All rights reserved.
§ 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
§ Singapore generates several Terabytes of data every day
Big Data Doubles Every Two Years
Less Important
More Important
Cisco Confidential 4 ©2014 Cisco and/or its affiliates. All rights reserved.
Source: Apple, Google, Windows Mobile, Cisco Analysis, NY Times
The Explosion of Applications
Cisco Confidential 4 ©2014 Cisco and/or its affiliates. All rights reserved.
2010
iPhone Apps Alone
Today
Apple and Google Apps Worldwide
2020
Apps Worldwide
2007
Total Mobile Apps
100 Movies and 250 Books vs. 15K Apps
Released Worldwide Every Week
Cisco Confidential 5 ©2014 Cisco and/or its affiliates. All rights reserved.
The Evolution of the Internet
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
Cisco Confidential 6 ©2014 Cisco and/or its affiliates. All rights reserved.
Seizing the Opportunity – Economic Value of the IoE
Based on 61 Real-World Use Cases
Value Sources
$14.4T Private Sector
$4.6T Public Sector
$19.0* Trillion
Economic Value
Asset Utilization
$2.5T
Supply Chain/ Logistics
$2.7T
Innovation/ Revenue
$3.0T
Customer Experience
$3.7T
Employee Productivity
$2.5 T
Only 1% of the World is Connected Today 13B devices
CONNECTED to the NETWORK
©2014 Cisco and/or its affiliates. All rights reserved. 7
Smart Cities Is a Significant Vertical in the IoE Public Sector
Key Drivers
§ Economic, Social and Environmental sustainability
§ Citizen Focus – Improved quality of life, enhanced living experience, and improved safety and security
§ Access to citizen for Digital services § IOE Drivers – employee productivity,
cost reduction, citizen experience, and increased revenue
$39B Water
Management
$41B Smart
Parking
$62B Video
Surveillance
$18B Traffic
$22B Smart
Lighting
$1.9T Open Data/ Killer Apps
$3 Trillion a New Urban Services Industry
…significant public sector revenue and cost savings opportunities
Cisco Confidential 8 ©2014 Cisco and/or its affiliates. All rights reserved.
Cloud & Services
Stadium
Municipal Command & Control Center
Smart Grid Hospital
Optimization
Comms Network
Optimization
Home Energy
Management
Traffic Flow
Optimization
Factory Optimization
Logistics Optimization
Traffic Cameras
Automated Car System Intelligent Digital
Signage
Connected Ambulances
Intelligent Medical Devices
SMART CITY
SMART HOSPITAL SMART
HIGHWAY
SMART FACTORY
A City, Country, Company with a Digital Overlay Connected Over Industry Standard Platforms
Source: Intel
Cisco Confidential 9 ©2014 Cisco and/or its affiliates. All rights reserved.
European Commission iCapital Award
Barcelona – Smart City $3.6B Value Creation
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
§ 44,000 New Jobs
§ Mobile Collaboration: $1.6B
§ Telework: $199M
§ Smart Parking: $67M
§ Smart Water: $58M
§ Smart Lighting: $47M
Energy Mgmt / Urbanization
Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste
Revenue Jobs Productivity Cost Avoidance Citizen Experiences
Cisco Confidential 10 ©2014 Cisco and/or its affiliates. All rights reserved.
Barcelona: Smart City… $3.6B Value Creation
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
§ 44,000 New Jobs
§ Mobile Collaboration: $1.6B
§ Telework: $199M
§ Smart Parking: $67M
§ Smart Water: $58M
§ Smart Lighting: $47M
Energy Mgmt / Urbanization
Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste
Revenue Jobs Productivity Cost Avoidance Citizen Experiences
“WORLD’S 50 GREATEST LEADERS” #46 Barcelona Mayor Xavier Trias
“ 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
European Commission iCapital Award
Cisco Confidential
! Architectural approach… 12K ships, 83 railroads, 1000’s cars & trucks
! Double throughput in 10 years ! 75% Opex Savings ! Servers reduced 80% ! Tie port to city & hospitals ! IP Ruggedized Network, WLAN, Cloud,
Phones, Call Manager, Webex, TP
BUSINESS OUTCOMES
Hamburg
Hamburg Port Authority (HPA)
Cisco Confidential 12 ©2014 Cisco and/or its affiliates. All rights reserved.
GOVERNMENT VALUE:
§ Increased reach § Opex savings § Better real estate use § Greener work styles
CITIZEN VALUE: • Convenient access to
live, informed agent. • All government
services in one location
• Longer service hours
Operational References:
• Nice
• Barcelona
• Dubai
• Brisbane
Government Services come to citizens where they are…
Cisco Confidential 13 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services
Objective
Strategy
Solution
Impact
IoE Strategist: Amsterdam
Amsterdam’s citywide IoE strategy and strong IT infrastructure are enabling 47 concurrent
IoE initiatives Strategy accelerates IoE value creation,
enables experimentation
§ Improve the lives – and livelihoods – of citizens
§ Launched “Smart City” IoE strategy, with 47 IoE projects to date § Work with local telecommunications, electricity companies to
create IT infrastructure that could support citywide IoE initiatives
§ IoE projects include smart energy grid systems, streetlighting, parking applications, building management, and public Wi-Fi
§ 9 to 14 percent savings on energy bills due to apps that provide greater insight into individual energy usage
§ Sensors on electric grid have improved network’s reliability
Cisco Confidential 14 ©2014 Cisco and/or its affiliates. All rights reserved.
Jobs/FDI Energy Savings
Water Consumption Crime Rates Traffic
50% 20% 30% 30% Healthcare: $3/Doctor Visit
Education: $3/Student/Month
Benefits of Sustainable Communities
A Safer, Desirable Environment where People are Happier and more Productive with Benefit to the Economy, Society and Environment
Cisco Confidential 15 ©2014 Cisco and/or its affiliates. All rights reserved.
Convergence – How Can We Enable the Creation of New Industry
New Ecosystem
Public Private Partnerships &
People
Smart Regulation
Global Open Standards
Visionary Leadership
© 2014 All rights reserved. Do not distribute. Hosted by
IoT World Forum Smart City Walking Tour Stop 1 @ Wacker near Hyatt Regency • Cisco NERV truck • Police Command & Control Vehicle • Connected Traffic Lights • MANET
Stop 2 @ Michigan Ave. Bridge • Rockwell Automation Sensors (pending) • Chicago Architecture Stop
Stop 3 @ Wacker & Michigan Ave • Connected Lighting and Traffic Sensors
Solutions • AGT Environmental Sensors (pending)
1
2
3
4
5
Start
6
Stop 4 @ Michigan Ave & Lake St. • Connected Bus Stop - CTA • Divvy Bikes • Solar Powered Trash Compactor • Retail Experience Applications
Stop 5 @ Randolph St • Millennium Park and Grant Park
In Motion 6 @ Randolph St • Parking Enforcement Solution
Thank you.
Email: [email protected] Twitter: @wimelfrink