The Internet of Everything: The Next Industrial Revolution Rodrigo Dienstmann Presidente da Cisco do Brasil International Seminar BNDES 2014 May 14, 2014
The World is CHANGING Cisco Confidential 2
And it s CHANGING FAST Market Transitions Economic Transitions Technology Transitions PACE OF CHANGE 2 Cisco Confidential 3
Increasingly Everything will be Connected to Everything 50 40 30 20 10 0 Billions of Devices The New Essential Infrastructure Application Centric Infrastructure Inflection point 12.5 25 6.8 7.2 7.6 Timeline 2010 2015 2020 50 Billion Smart Objects Rapid Adoption rate of digital infrastructure: 5X faster than electricity and telephony World Population Cisco Confidential 4
People, Process, Data, And Things Defined Things Physical items connected to both the Internet and each other will sense more data, become context-aware, and provide more experiential information People As the Internet evolves toward IoE, we will be connected in more relevant and valuable ways Process Data Allows people, data, and things to work together to deliver the right information to the right person (or machine) at the right time in the appropriate way Devices typically gather data and stream it over the Internet to a central source, where it is analyzed and processed; devices will become more intelligent by combining data into more useful information Source: Cisco IBSG, 2013 Cisco Confidential 5
IoT Acceleration: BIG DATA Big Data Doubles Every Two Years Wisdom (Scenario Planning) More Important 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 collects 2.5 petabytes of data hourly from customer transactions Knowledge Information WalMart Data Less Important Cisco Confidential 6
Seizing the Opportunity: Economic Value of The IoE Includes both industry-specific and horizontal use cases. Customer Experience Innovation Employee Productivity Private Sector $ 14.4T Supply Chain Asset Utilization Economic Value $ 19.0 * Trillion Estimate is based on bottom-up analysis of 61 use cases, including 21 for private sector and 40 in public sector Value Sources Includes cities, agencies, and verticals such as healthcare, education, defense Increased Revenue Reduced Cost Employee Productivity Public Sector $ 4.6T Connected Defense Citizen Experience Innovation/ Revenue $3.0T Customer Experience $3.7T Asset Utilization $2.5T Employee Productivity $2.5 T Supply Chain/ Logistics $2.7T Cisco Confidential 7
Local Example: Taxicab Apps Taxicab Apps for Smartphones Uses mobile phone built-in GPS -- you can see your current location and taxis available around Added reliability - driver's name, car model and plate shared with passenger Enhanced passenger safety passenger electronically receives driver identify and photo, car model, registration plate and contact information Driver profitability data is supplied to the driver so the passenger is recognized at pickup Cisco Confidential 8 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
Implementing an IoE for the Public Sector in Brazil could generate an estimated $70.3bn of value $4.6T $70.3bn Citizen $11.2bn Telework Connected Payments Chronic Disease Government Services City $59.1bn Urban Mobility Travel avoidance Smart Grid and Lighting Safety and Secutity Health Services Cisco Confidential 9
Manufacturing Needs Speed and Productivity An industry ready for disruption Supply Chain 73% higher profitability with efficient global supply chains Velocity $400B Potential revenues for Boeing held up due to manufacturing backlog of 5,080 planes Downtime $130M Per 100 hours of downtime in auto manufacturing industry Labor Shortage 20% Projected decline in Asian work force by 2020 and increasing labor costs require higher productivity and lower maintenance overheads Source: Deloitte Consulting, ATS Survey Cisco Confidential 10
Predictive Maintenance 35% 85% 592547/ 1000000 Optimize Energy Usage QUALITY POWER STAMPS Security Before, During, and After Attack Cisco Confidential 11
Immediate Response to Equipment Failure Real-time Health Status of Trains CAR 07 REPLACE BEARINGS New Passenger Amenities and Services Cisco Confidential 12
Proactive Leak Detection S6 C026 kpa Pressure Drop ACTION REQUIRED Predictive Management Broadband Connection for Community Cisco Confidential 13
Visionary Leadership Global Open Standards Smart Regulation Public Private Partnerships New Ecosystem & People Cisco Confidential 14
Thank you. Cisco Confidential 15