Next Gen IT Opportunities for IT-CMF A Cisco POV >> IVI Autumn Summit Sep,
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1 Next Gen IT Opportunities for IT-CMF A Cisco POV >> IVI Autumn Summit Sep, Parag Gondhalekar Cisco Consulting Services 2010 Cisco and/or its affiliates. All rights reserved.
2 At Cisco We See around Corners Market Transitions Innovation Customer Driven and shape markets
3 170 Years Ago: Invention of the Telegraph 100 Years Ago: Invention of the Radio 70 Years Ago: First general purpose electronic computer 40 Years Ago: First Internet connection 20 Years Ago: World Wide Web Intelligently Connecting People, Today Process, Data, and Things 2005: IP Traffic: 29 exabytes 2008: Video Traffic: 21 exabytes 2012: 50M Connect 2003: 0.5B Connected Devices 2005: First Smartphone 2010: 0.5B Smartphones 2010: 7B Connected Devices 2011: 90M Smartmeters 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
4 99.4% of things are unconnected With only 10B of 1.5T things connected globally, there is vast potential in connecting the unconnected 96.5% of things are consumer objects The consumer segment accounts for the vast majority of things in the world 64% of things are in developed economies On average, there are about 200 things per person in the world; nearly 2/3 of the total number of things are in developed countries, although these countries account for only 14% of the global population 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
5 Business and Societal Impact Connectivity Digitize access to information Web browser Search Networked Economy Digitize business processes E-commerce Digital supply chain Collaboration Immersive Experiences Digitize interactions (business and social) Social Mobility Cloud Video Internet of Everything Digitize the world Connecting: People Process Data Things Intelligent Connections 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
6 Networked Connections of People, Process, Data, Things Connecting people in more relevant, valuable ways Delivering the right information to the right person (or machine) at the right time Turning data into more useful information for decision making Physical devices and objects connected to the Internet and each other for intelligent decision making 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
7 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
8 $14.4 Trillion $ 9.5 Trillion From industry use cases (66%): Smart Grid, connected commercial vehicles, Etc. $ 4.9 Trillion from cross-industry use cases (34%): Future of work (telecommuting), mobility, etc. IoE Will Grow Aggregate Global Corporate Profits up to 21% by Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
9 21 use cases Asset utilization: $2.5T SG&A and CoGS reduction from improved business process execution Improved capital efficiency IoE Value at Stake: $14.4T ( year NPV)* Employee productivity: $2.5T Supply-chain / logistics efficiency: $2.7T Improved customer experience: $3.7T Improved labor efficiency Fewer or more productive person-hours Improved process efficiency Reduced waste in supply chain Improved customer lifetime value Additional market share (more customers) * Net present value Innovation: $3.0T Improved RD&E speed, reduced TTM New business models and new sources of revenue 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
10 Internet of Everything Opportunity Mobile Social and Computing Collaboration Big Data Cloud IoT Time By 2022, the Internet of Everything will help enable new profits and cost savings in the order of: $2.5 trillion in better asset utilization $2.5 trillion in employee productivity $2.7 in supply chain logistics $3.7 trillion in better customer experience $3 trillion in new innovations in value Corporate profits increase up to 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
11 Move from Bigger is better To Better is better Clout Cloud Access to information Big data Business intelligence Connectivity Expertise everywhere Big judgment Intelligence at the point of decision Connectedness Source: IBSG Research & Economics Practice, Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
12 Context { People + Process + Data + Things } Business Process Innovation IoE Maturity? Technology Architecture IT s Role in IoE Org Structures Process and Cultural Changes Security and Privacy 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
13 Additional Information or Interest Please Contact Parag Gondhalekar 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
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