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
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.
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…
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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!
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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
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.
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.
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
Based on ASFiNAG case study
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…