The Internet of Everything
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1 The Internet of Everything Turning Big Data into BIG Opportunity (Everything you need to know about the Internet of Everything)
2 Imagine never making another grocery list because the connected fridge sends updates to your smartphone as food runs out or spoils. Sound futuristic? It s not. With the Internet of Everything (IoE), the future is now. The IoE means connected devices can autonomously take action based on real-time data, processes, and information. What we know as big data today will pale in comparison to the information available as a result of the IoE; it will have an exponential impact. READ ON to learn critical information about the IoE, including: real-world examples, value drivers, barriers to entry, and an overview of KPMG s sevenstep framework for operationalizing the IoE. 2
3 WHAT S THE DIFFERENCE? INTERNET OF THINGS = connection of physical devices to the Internet INTERNET OF EVERYTHING = connected devices that autonomously act based on real-time data A $300 billion opportunity A $19 trillion opportunity 3
4 WHAT ARE REAL-WORLD EXAMPLES OF THE INTERNET OF EVERYTHING? The IoE is the network of all networks, bringing together people, processes, data, and physical devices to transform the wealth of structured and unstructured data into real-time insights, richer experiences, autonomous behavior, and real, tangible business value. MEDICAL: A doctor receives notification that her patient s blood glucose levels are high TRANSPORTATION: A driverless car reroutes sensing an accident up ahead HOME: A connected home keeps coffee from burning by powering down when you leave PUBLIC SECTOR: A connected city adjusts to parking needs, traffic, and utility usage 4
5 THE INTERNET OF EVERYTHING MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE 5
6 THE EVOLUTION OF THE IoE The Internet of Everything comes as no surprise and is the culmination of sequential advances in technology and increasing connected devices: FROM PERSONAL COMPUTERS TO TABLETS AND SMARTPHONES TO WEARABLE DEVICES Connected devices now far outnumber people with tens of billions in use and growing. 6
7 WHAT S DRIVING THE RAPID GROWTH OF CONNECTED DEVICES? 1. Steep price declines of components including Radio Frequency Identification (RFID) chips 2. Increasing ubiquity of broadband access 7
8 WHAT DOES THIS MEAN FOR BUSINESS? It means there s HUGE OPPORTUNITY. Between 2013 and 2022 alone, the IoE will create $19 TRILLION of value in the private sector globally. 1 IT WILL CREATE AN ECOSYSTEM OF THINGS AND COMMUNITIES WITH THE ABILITY TO: Obtain and maintain vast quantities of information Update, diagnose, and correct conditions autonomously Alert, notify, and provide valuable insight without data mining or queries Connect to individual consumers in a more personal, predictive, and social way 1 The Internet of Everything, Cisco IoE Value Index Study, Frequently Asked Questions, Cisco Inc.,
9 WHERE IS ALL OF THIS VALUE COMING FROM? Opportunities to capture value fall into FOUR main categories: EFFICIENCY: Machines and factories become more efficient as the IoE leads to smarter, autonomous machines that can adjust on the fly. PRODUCTIVITY: Remote sensors and video conferencing enable healthcare workers to treat patients remotely and save time. Appliances diagnose problems, order replacement parts, and schedule service calls. CUSTOMER SATISFACTION: Collecting/analyzing large amounts of data from individuals click streams, ordering history, and social networking posts enables sellers to customize products/services and build customer loyalty. INNOVATION: Considerable opportunities exist in creating new business models, new products and services, and reduced time to value. 9
10 WHY ARE ORGANIZATIONS HESITANT TO GET ON BOARD? Organizations already have a multitude of physical devices scattered across data centers, warehouses, plant floors, and supply chains that can be plugged in. So what s keeping them at bay? 10
11 WHO IS SUCCEEDING WITH THE IoE? Nest, recently acquired by Google, is creating what they call the conscious home. They are taking otherwise boring household objects the thermostat and smoke detector and bringing them into the connected world. Using a combination of sensors and machine learning algorithms, Nest analyzes our behavior and the environment to maximize energy efficiency. Its Nest Protect product allows smoke detectors to distinguish between smoke and steam, reducing false positives. 11
12 HOW TO OPERATIONALIZE THE IoE KPMG s seven-step framework guides organizations through operationalizing the IoE, beginning with designing the enterprise-wide information strategy and then deploying it in phases. 12
13 LEARN MORE ABOUT THE INTERNET OF EVERYTHING ACCESS THE WHITE PAPER AND RELATED MATERIALS HERE: The Internet of Everything is Now >> For more information, contact us: Justin M. Hoss Managing Director CIO Advisory 13
14 2014 KPMG International Cooperative ( KPMG International ), a Swiss entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International Cooperative ( KPMG International ). 14
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