Phan Thanh Son HCMC May 15, 2015

2

The world is changing … and it’s changing very fast …

Source: Qualcomm

And:

• Micro

• Camera

• Touch screen

• GPS

• Bluetooth

• GSM

3

The 3rd Platform Era

• From 2013 through 2020, 90% of IT industry growth will

be driven by 3rd Platform technologies that, today, represent just 22% of ICT spending.

• 80% of competitive energy should be focused on strengthening 3rd Platform offerings and capabilities

• First wave of Innovation Accelerators that depend on the 3rd Platform: Robotics, Internet of Things (IoT), Natural

Interfaces, Cognitive Systems, 3D Printing, Next Generation Security

• Line of business executives will be involved with 80% of IT sales by 2016, decision-maker for 40%

Dig

ital E

nte

rpris

e w

av

e –

Rid

e it o

r Un

de

r it ?

Source: IDC

4

7.2 6.8 7.6

IoT Is Here Now – and Growing!

Rapid Adoption Rate of Digital Infrastructure: 5X Faster Than Electricity and Telephony

50 Billion

“Smart Objects”

50

2010 2015 2020

0

40

30

20

10

BIL

LIO

NS

OF

DE

VIC

ES

25

12.5

Inflection Point

TIMELINE

Source: Cisco IBSG, 2011

World Population

The New Essential Infrastructure

Source: Cisco

5

Political

Policy in public safety, utilities, healthcare

Smart meter adoption

E-call requirements for new car in EU

Increasing role of regulators in privacy and safety

Economy

Globalization

Urbanization

Demographic shifts

IoT economics progressively more attractive

Improved business efficiency

Social

Rise in power of smarter consumer

Social media explosion driving new behaviors

Health and wellness

Green lifestyle

Technology

Declining cost of sensors, compute, bandwidth and storage

Proliferation of devices

Miniaturization, portability of devices

Social, Mobility, Big Data/ Analytic, Cloud (SMAC) technologies/ The 3rd Platform (IDC)

Key Forces Driving Internet of Things

Source: Cisco

6 © 2014 Cisco and/or its affiliates. All rights reserved.

Evolution of the Internet

Busin

ess a

nd

So

cie

tal

Imp

act

Intelligent Connections

• Email

• Web Browser • Search

Connectivity

Digitize Access to Information

• Social

• Mobility • Cloud

• Video

Immersive Experiences

Digitize Interactions (Business & Social)

• E-commerce

• Digital Supply Chain • Collaboration

Networked Economy

Digitize Business Process • Sensors

• M2M • Wearables

• Big Data • Analytics

Internet of Things

Connecting

The Unconnected

Connecting:

• People

• Process

• Data

• Things

Digitize

the World

Source: Cisco

7

IoE Consists of M2M, M2P, and P2P Connections

Machine-to-Machine (M2M) • Data sent / received from one machine

(thing) to another • Often called the “Internet of Things”

Machine-to-Person (M2P) • Data sent / received from a machine (thing)

to a person • Often called “data and analytics”

Person-to-Person (P2P) • Data sent / received from one person

to another • Often called “collaboration”

CONNECTION TYPE

IoE Value (2013-2022)

$7.4

Trillion

$4.6

Trillion

$7.0

Trillion

Source: Cisco

8

More Important

Less Important

Big Data becomes Open Data for Customers, Consumers to Use

Information

Knowledge

Wisdom (Scenario Planning)

Data

IoT Transforms Data into Wisdom IoT Is Primarily Not About Things – It’s About Insights from Data

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

Source: Cisco

©2014 Cisco and/or its affiliates. All rights reserved. 9

IoT Economic Value by Industry

82% IT Execs / 74% LoB

Source: Cisco

McKinsey & Company | 11

6 categories illustrate the breadth of potential IoT applications

Category Description

Achieving real-time awareness of physical environment Enhanced situational awareness

B

Control consumption behavior to optimize resource use across a network

Optimized resource consumption

E

Automated control of closed (self-contained) systems Process optimization D

Assisting human decision-making through deep analysis and data visualization

Sensor-driven decision analytics C

Monitoring the behavior of persons, things or data through space and time

Tracking behavior A

Automated control in open environments with great uncertainty

Complex autonomous systems

F

Information

& analysis

Automation

& control

McKinsey & Company | 12

The Internet of Things can create value through several economic levers

Levers

Create new dynamic pricing models for inputs and outputs

Create new service models and products to monetize information assets

Improve safety for consumers and workers

Increase efficiency and reduce costs of energy, materials, capital, and labor

Allow new customer interactions with opportunities to engage end-users on a dynamic, ongoing basis

Enable new

ways of doing

business

Improve quality of delivered products and services Enhance & optimize

today’s operations

© 2013 Cisco and/or its affiliates. All rights reserved. 13

Today Current state

Potential Connected Cars

11-13% time wasted in urban congestion (90 billion hours)

Traffic management and optimization of road network

lower congestion

7-12% of urban traffic is created by people looking for parking

Vehicles intelligently adjust driving speeds, improving fuel efficiency

10-17% of urban fuel is wasted at stoplights when no cross traffic

Optimized routes and traffic signaling

80% of accidents are caused by driver distraction (6.3M accidents)

Vehicle-to-vehicle / infrastructure communication lowers

accident rates

Connected Car Benefits

Consumer

7.5% less time in traffic 4% lower vehicle costs (fuel,

repairs, insurance)

Social 8% fewer accidents

10% lower road costs 3% C02 reduction

Source: Cisco

© 2013 Cisco and/or its affiliates. All rights reserved. 14

Smartphone

Wheel-Sensor

Collision Radar

Low Speed Network LIN, Lo-Speed CAN

Electronic Control Unit (ECU)

Entertainment Network MOST, Internal Wi-Fi X-by-Wire/

Safety Network Flexray

Wireless In-Car Network, Bluetooth, Low-Power

Wi-Fi, RFID

High-Speed Network Hi-Speed CAN

Central Gateway

IOS

Wireless Car-to-X Network DSRC 802.11p, WiFi,

WiMAX, Multiple 3G/LTE

Home Enterprise Web OEM Roadside Grid

Audio/Video Diagnostics Telematics Driver Assistance ….

Source: Cisco

Fleet Management Connected Public

Transit Driver Monitoring Intersection

Communications

Source: Cisco

© 2013 Cisco and/or its affiliates. All rights reserved. 16

Fog Platform Local Data, Events, Rules, Analytics, Visualization

Cloud Platform Central Compute & Big Data Repository, Additional Big Data; Ecom,

Mobile, Social, etc.

Use case: FastRetailTM Sensor Fusion for Shopper Insight, Queue Management, Merchandising Optimization

Flexible, hyper-local, real-time, sensor fusion, and big data analytics solutions driving the next generation of Retail

Value Chains

Store & Supply Chain

Optimization

Consumer Insights &

Interaction

A Road To Next Gen

Value Chain

Right Store Location, Range, Layout

Perfect Shelf See, Spot, Select

Omnichannel Journey Anywhere, Anyway,

Anytime

Perfect Supply Chain On-Shelf, On-Hand, On-Time

Source: Cisco

17

Platform enable new services, new business models

Source: IoT World Forum

18

Key Takeaways

The World is Becoming Increasingly Diverse and Digitalized … The 3rd Platform and

Accelerators including IoT across customers, employees/ LoBs, partners driving sustainable growths and innovations … Digital Enterprise wave, Ride it or Under it

A New Data Driven World …. Chief Data Officer (?)

ICT … Essential Infrastructure …. IT and OT alignment/ convergence … CTO (?)

Transformational Opportunities … Generate $19T Economy Value in next 10 years

New Ecosystem Will be Essential … win-win-win- world

IoT is now … IoE: new opportunities ... TOMORROW Start Here

What are Your Next Steps to capture the opportunities?

Thank you