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Petr Duvidovic
Channel, Cisco Austria
The New Digital Era
Introducing Cisco- A Desire to Connect
Revenue FY15:
$49.2B
4% growth Y-Y
Total Cash:
$50+B
R&D
Investments:
$6.3B
13.4% of Revenue
Product
Revenue:
$37.9B
Services
Revenue:
$11.4B
19 %
Others
35 %
R&D
20 %
Services
26 %
Sales
70k+ co-workers
380+ offices
“ The future is here…
it’s just not evenly distributed”
William Gibson
2005 2013
Digital Shift- Papal Elections
VS
Source: Cisco & IMD Global Center for Digital Business Transformation
Pace of Change
Point-of-Sale
Print
Advertising
Car
Hotel
Bookstore Taxi Music
Speed of
Innovation
0
60
iPhone 1 in 2007;
Mobile app economy
$100B in 2015;
10M developers
15B  50B  500B
connected-
40% traffic M2M
Hyper-
Connectivity
Lowered Cost
of Innovation
$5M in 2000 
$5K in 2015
Increased Volume
of Innovation
$50B
venture funding
Market Disruptors
ignore proactive
4/10
Companies will be displaced by
digital disruption in the next 5 years
45% 25%
Source: Cisco & IMD Global Center for Digital Business Transformation 7
© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
What industries will self-driving cars disrupt?
Media /
Entertainment
Energy
Retail
Public
Transportation
Parking
Garages
Insurance /
Financing
Airlines
Automotive/
Manufacturing
Healthcare
Hotels
Taxis
One disruption can redefine many industries
Auto repairs /
Auto parts
Real Estate
Law
Enforcement
Education
Source: Cisco & IMD Global Center for Digital Business Transformation
IoT Unlocks Digital Business Value
Transform Existing
Business
Enable New
Business
Where is the value
Source - McKinsey: The Internet of Things: Mapping The Value Beyond The Hype
50 Billion smart devices by 2020 will
connect the unconnected
IT and OT convergence,
hyperconnectivity across
organizations
<1% of data currently used,
more can be used for optimization
and prediction
Interoperability across siloed
systems required to capture 40%
of IOT value
IoT Needs a Holistic Approach
From: Fragmented & Complex
1010100
01 01
10 11
0101110
Applications
Cloud
Verity of
devices
Security
Rugged
Reliability
Data
Analytics
Data
Privacy
To: Integrated IoT System
Extreme
Edge
Proprietary Disjointed Custom
Cisco IoT Architecture:
Secure IT & OT Convergence
Application Enablement
IoT Connectivity
Fog Computing Management & Automation
Security
Defense
City
Utility
Manufacturing
Oil and Gas
Service
Provider
Transportation
Public Safety
Analytics
Ecosystem
Vertical solutions Applications
Emerson Bombardier
Rockwell
Automation
SK Group
Honeywell GE
OSI soft Bitstew Systems Itron
SAP
Davra
Networks Alstom
Lilee Systems
This fragmented approach is inefficient,
has limited effectiveness, and is not economical
Cities Have Traditionally Addressed These
Issues in Silos
Traffic
Management
Pollution/
Environment
Waste
Management
City Lighting
Public Safety
Parking
Optimization
IoE Digital Platform
Analyze Visualize
Collect
Edge
Edge Edge
Traffic
Mgt.
Public
Transport
Parking
Smart
Meters
Street
Lighting
Security
Cameras
Smart Cities- a Holistic Approach
SCC Wi-Fi SCC Parking
SCC Smart
Traffic
SCC Lighting
70%
30% population growth
2010-2050
downtown traffic caused
by parking search $82B
spend required
to modernize
cities per state
in value over 10 years
with smart buses
in value over 10 years
with smart parking
new jobs created with
startup innovation
$28M $53M 44,000
Smart Connected Cities- Example Smart Lighting
One Platform for Various Services
Smart Lighting
Control Security
Parking Analysis
Plus 100’s of
Additional Apps
One Network
Maintaining
already existing
Hardware
Traffic Analysis
Business Needs
• Create safer, less congested roads
• Greater visibility into road conditions
• Improve operational efficiency
• Better communication in emergencies
Cisco Connected Roadways
Business Outcomes
• Centralized communication between agencies
• Reduced TCO w/end-to-end converged network
• Prevent traffic jams with dynamic speed limits
• Better traffic management and real time updates
• Maximizing road utilization
Connected 70,000 Sensors, 6,500 Traffic Cameras
Over Converged IP Network
Further IoT Examples- Connected Industry
Factory Wireless
Factory Security
Connected Machines & Edge Compute
Factory Virtualization
Data Center and Cloud
Analytics & Big Data
Supply Chain Collaboration
Factory Collaboration
Factory Network
Further IoT Examples- Connected Energy
Convergence to an “Intelligent Energy” Future…
• Smart Meter
• Intelligent Grid & Demand
Management
• Renewable Energy
• Mobility, Preferences, and Real-Time
• Big Data and Complex Event Processing
• New Service Models.. Cloud
• Cyber Security
• Smart Phone and Tablet Technologies
• Affordability Information accessibility
and sharing
• Internet of Things
OPERATION & BUSINESS TECHNOLOGY
INFORMATION TECHNOLOGY
CONSUMER TECHNOLOGY
Intelligent
Energy
Solution &
Services
CONVERGENCE
“The best way to predict the
future is to create it”
Peter F. Drucker
Petr Duvidovic (Cisco Systems Austria)
Petr Duvidovic (Cisco Systems Austria)

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Petr Duvidovic (Cisco Systems Austria)

  • 1. Petr Duvidovic Channel, Cisco Austria The New Digital Era
  • 2. Introducing Cisco- A Desire to Connect Revenue FY15: $49.2B 4% growth Y-Y Total Cash: $50+B R&D Investments: $6.3B 13.4% of Revenue Product Revenue: $37.9B Services Revenue: $11.4B 19 % Others 35 % R&D 20 % Services 26 % Sales 70k+ co-workers 380+ offices
  • 3. “ The future is here… it’s just not evenly distributed” William Gibson
  • 4. 2005 2013 Digital Shift- Papal Elections VS
  • 5. Source: Cisco & IMD Global Center for Digital Business Transformation Pace of Change Point-of-Sale Print Advertising Car Hotel Bookstore Taxi Music
  • 6. Speed of Innovation 0 60 iPhone 1 in 2007; Mobile app economy $100B in 2015; 10M developers 15B  50B  500B connected- 40% traffic M2M Hyper- Connectivity Lowered Cost of Innovation $5M in 2000  $5K in 2015 Increased Volume of Innovation $50B venture funding Market Disruptors
  • 7. ignore proactive 4/10 Companies will be displaced by digital disruption in the next 5 years 45% 25% Source: Cisco & IMD Global Center for Digital Business Transformation 7 © 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
  • 8. What industries will self-driving cars disrupt?
  • 9. Media / Entertainment Energy Retail Public Transportation Parking Garages Insurance / Financing Airlines Automotive/ Manufacturing Healthcare Hotels Taxis One disruption can redefine many industries Auto repairs / Auto parts Real Estate Law Enforcement Education Source: Cisco & IMD Global Center for Digital Business Transformation
  • 10. IoT Unlocks Digital Business Value Transform Existing Business Enable New Business Where is the value Source - McKinsey: The Internet of Things: Mapping The Value Beyond The Hype 50 Billion smart devices by 2020 will connect the unconnected IT and OT convergence, hyperconnectivity across organizations <1% of data currently used, more can be used for optimization and prediction Interoperability across siloed systems required to capture 40% of IOT value
  • 11. IoT Needs a Holistic Approach From: Fragmented & Complex 1010100 01 01 10 11 0101110 Applications Cloud Verity of devices Security Rugged Reliability Data Analytics Data Privacy To: Integrated IoT System Extreme Edge Proprietary Disjointed Custom
  • 12. Cisco IoT Architecture: Secure IT & OT Convergence Application Enablement IoT Connectivity Fog Computing Management & Automation Security Defense City Utility Manufacturing Oil and Gas Service Provider Transportation Public Safety Analytics Ecosystem Vertical solutions Applications Emerson Bombardier Rockwell Automation SK Group Honeywell GE OSI soft Bitstew Systems Itron SAP Davra Networks Alstom Lilee Systems
  • 13. This fragmented approach is inefficient, has limited effectiveness, and is not economical Cities Have Traditionally Addressed These Issues in Silos Traffic Management Pollution/ Environment Waste Management City Lighting Public Safety Parking Optimization
  • 14. IoE Digital Platform Analyze Visualize Collect Edge Edge Edge Traffic Mgt. Public Transport Parking Smart Meters Street Lighting Security Cameras Smart Cities- a Holistic Approach SCC Wi-Fi SCC Parking SCC Smart Traffic SCC Lighting 70% 30% population growth 2010-2050 downtown traffic caused by parking search $82B spend required to modernize cities per state in value over 10 years with smart buses in value over 10 years with smart parking new jobs created with startup innovation $28M $53M 44,000
  • 15. Smart Connected Cities- Example Smart Lighting One Platform for Various Services Smart Lighting Control Security Parking Analysis Plus 100’s of Additional Apps One Network Maintaining already existing Hardware Traffic Analysis
  • 16. Business Needs • Create safer, less congested roads • Greater visibility into road conditions • Improve operational efficiency • Better communication in emergencies Cisco Connected Roadways Business Outcomes • Centralized communication between agencies • Reduced TCO w/end-to-end converged network • Prevent traffic jams with dynamic speed limits • Better traffic management and real time updates • Maximizing road utilization Connected 70,000 Sensors, 6,500 Traffic Cameras Over Converged IP Network
  • 17. Further IoT Examples- Connected Industry Factory Wireless Factory Security Connected Machines & Edge Compute Factory Virtualization Data Center and Cloud Analytics & Big Data Supply Chain Collaboration Factory Collaboration Factory Network
  • 18. Further IoT Examples- Connected Energy Convergence to an “Intelligent Energy” Future… • Smart Meter • Intelligent Grid & Demand Management • Renewable Energy • Mobility, Preferences, and Real-Time • Big Data and Complex Event Processing • New Service Models.. Cloud • Cyber Security • Smart Phone and Tablet Technologies • Affordability Information accessibility and sharing • Internet of Things OPERATION & BUSINESS TECHNOLOGY INFORMATION TECHNOLOGY CONSUMER TECHNOLOGY Intelligent Energy Solution & Services CONVERGENCE
  • 19. “The best way to predict the future is to create it” Peter F. Drucker

Hinweis der Redaktion

  1. In 1984, two computer scientists (a husband and wife—Sandy Lerner and Leonard Bosack) at Stanford University had the desire to connect across campus. This human desire led to the invention of the first multi-protocol router. It also led to the creation of Cisco, named after one of our great cities, San Francisco. Now, 30 years later. we’re still connecting the unconnected. And we still believe that amazing things happen when you connect the unconnected. We also continue to see around corners, continue to innovate, and continue to evolve. The result? We help our customers achieve their business outcomes, including the ability to adapt to change and transform to succeed.
  2. I’ve had the chance to meet with hundreds of customers…in IT and across business functions and they always ask…what are the disruptions that we are facing at Cisco… <<CLICK>> First, the cost of innovation has gone down by 3 orders of magnitude. It used to take 5M now 5K to go from idea to company <<CLICK>> Second, This is coupled with the increasing speed of innovation…how many remember…iPhone: came out 2007 … disrupted phone/mp3/cam …Even more staggering… mobile app economy! Marketplace worth $100B! <<CLICK>> Third, technology is cheaper and faster…but there are just as high levels of investment…last year ~$50B venture funding in tech <<CLICK>> Fourth, that investment is going into areas to support hyper connectivity and making use of that hyperconnectivity…like the Internet of things… Today … more than 15B devices connected …Cisco bus. Built on.. By the next decade … 50B…1M online/hour By 2030, 500B…I think even more Today … 80% of world’s internet data goes through Cisco Next 5 years, Internet traffic will more than triple…Seismic shift… In 2030, 40% of IP mobile traffic is going to be M2M
  3. Digital disruption — the effect of digital technologies and business models on a company’s current value proposition, and its resulting market position — has the potential to overturn incumbents and reshape markets faster than perhaps any force in history. The Global Center for Digital Business Transformation (DBT Center), an IMD and Cisco initiative, is dedicated to original research and to creating opportunities for executives to innovate new business models for the digital age. To learn more about current state of digital disruption and business outlook, the DBT Center surveyed 941 business and IT leaders around the world in 12 industries. Survey respondents believe an average of roughly 4 of today’s top 10 incumbents (in terms of market share) will be displaced by digital disruption in the next five years. 45% of companies -> digital disruption is not seen as worthy of board-level attention 44% do not acknowledge the risk of digital disruption, or have not addressed it sufficiently. ~30% are taking a “wait and see” approach Only 25 percent describe their approach to digital disruption as proactive — willing to disrupt themselves in order to compete.
  4. But as we connect all of these unconnected things and increase connectivity across industrial equipment, new demands are being placed on the infrastructure for IoT.   IoT requires all these complex elements – from connectivity to security to automation, analytics, and open APIs -- to work together as a system to deliver business benefits … a tall order.   So it’s no surprise that when we surveyed business and technology decision makers, 56% said they prefer a fully integrated solution that minimizes that complexity. The value of IoT comes from the things and data in the fog talking to your business applications and processes in the cloud.   And what is required is a systems approach to help manage this inherent complexity in IoT deployments.  
  5. The Cisco IoT provides a fully integrated solution that minimizes that complexity. Most customers want a single vendor for IoT, and with the IoT System we have a clear differentiation. Also Cisco Partners can offer the entire IoT System to their customers as a single vendor. The Cisco IoT System, a comprehensive set of Cisco IoT technologies and products for Enterprises to deploy, accelerate and innovate with IoT. The Cisco IoT System integrates six pillars that must come together for a successful IoT solution and deployment: Network connectivity Fog computing Data analytics Security both cyber and physical A way to manage and automate your IoT at scale and A platform for application development
  6. Based on ASFiNAG case study
  7. Looking 5 years down the road: Utilities = wires companies today, need to be services & solutions companies in the future They used to know where the energy was generated and where it was going. 2 fixed places. Now it can come from many places, the mix changes all the time. And demand is becoming more responsive and swings up for backup needs. Need more grid operations analytics. Grid visibility. Technology available is changing Consumer behavior/technology use is changing. Consumer = both residential (“rate payers”) and commercial (“customers”). Perception: Smart Meters would cause bills to lower. But they are actually more accurate and caused bills to go up. New Utilities business reality: 1. Now they have to have an active relationship with Consumers, or Consumers’ Things (demand response appliances). Distributed energy generation, importing power from residential Solar panels, and how to handle all the related billing credits+debits. 2. Unpredictable distributed generation and distribution from rooftop solar. Need real-time visibility into the distribution grid. 3. Technology-enabled resiliency/protection Convergence is driving new thinking, strategies, and services - and requiring innovative approaches and technologies to define a new customer experience…