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The Internet of Things: 
Capturing the Accelerated Opportunity 
Wim Elfrink, EVP, Industry Solutions and Chief Globalisati...
The Internet of Things Accelerated Progress 
One year ago 
Why IoT 
Today 
How 
We capture 
the IoT opportunity 
©2014 Cis...
©2014 Cisco and/or its affiliates. All rights reserved. 3 
From Hype to Reality…. “Up and to the Right” 
Internet 
of Thin...
©2014 Cisco and/or its affiliates. All rights reserved. 4 
From Hype to Reality…. “Up and to the Right” 
It’s Official: Th...
Amazon 
pays $1B 
for Twitch 
Samsung 
snaps up 
Smart Things 
for $200M 
But is it Really Just Hype? Accelerated IOT Prog...
Amazon 
pays $1B 
for Twitch 
Amazon 
pays $1B 
for Twitch 
Samsung 
snaps up 
Smart Things 
for $200M 
But is it Really J...
©2014 Cisco and/or its affiliates. All rights reserved. 7 
Accelerated Progress for IoT: Technology Trends 
Connected Devi...
©2014 Cisco and/or its affiliates. All rights reserved. 8 
Accelerated Progress for IoT: Technology Trends 
Connected Devi...
©2014 Cisco and/or its affiliates. All rights reserved. 9 
IoT Is Here. Now. And It’s Big 
IoT Dashboard: IoT is Accelerat...
Factory 
Optimization 
SMART 
©2014 Cisco and/or its affiliates. All rights reserved. 10 
Integrated 
Operations 
Center 
...
European 
Commission 
iCapital Award 
Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste 
©20...
European 
Commission 
iCapital Award 
Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste 
©20...
©2014 Cisco and/or its affiliates. All rights reserved. 13 
Barcelona: Smart City 
$3.6B Value Creation 
“WORLD’S 50 GREAT...
©2014 Cisco and/or its affiliates. All rights reserved. 14 
Welcome 
Deputy Mayor 
Steve Koch
The Internet of Things Accelerated Opportunity 
Growing Markets 
Total Value 
Sectors 
©2014 Cisco and/or its affiliates. ...
©2014 Cisco and/or its affiliates. All rights reserved. 16 
Inflection 
point 
6.8 7.2 7.6 
World 
Population 
Increasingl...
Wisdom 
(Scenario Planning) 
Knowledge 
Information 
Data 
©2014 Cisco and/or its affiliates. All rights reserved. 17 
Big...
©2014 Cisco and/or its affiliates. All rights reserved. 18 
Awareness of the IoT Opportunity Is Pervasive… 
72% 
Americas ...
©2014 Cisco and/or its affiliates. All rights reserved. 19 
…and Organizations Are Going To Invest 
81% 
Americas 
75% 
EM...
Public Sector 
©2014 Cisco and/or its affiliates. All rights reserved. 20 
Accelerated Opportunity 
Total Global Economic ...
0 5,000 10,000 15,000 20,000 
©2014 Cisco and/or its affiliates. All rights reserved. 21 
IoT Economic Value by Industry 
...
©2014 Cisco and/or its affiliates. All rights reserved. 22 
Interactive IoT Global Deployment Map 
ƒ 260 Global Use Cases ...
©2014 Cisco and/or its affiliates. All rights reserved. 23 
Interactive IoT Global Deployment Map 
Chicago
©2014 Cisco and/or its affiliates. All rights reserved. 24 
Interactive IoT Global Deployment Map 
Connected 
Street Light...
©2014 Cisco and/or its affiliates. All rights reserved. 25 
Interactive IoT Global Deployment Map 
Real Time 
Bus Schedule...
©2014 Cisco and/or its affiliates. All rights reserved. 26 
Interactive IoT Global Deployment Map 
Smart City
©2014 Cisco and/or its affiliates. All rights reserved. 27 
Internet of Things Reference Model 
Levels 
Collaboration & Pr...
©2014 Cisco and/or its affiliates. All rights reserved. 28 
Internet of Things Reference Model 
Levels 
Collaboration & Pr...
The Internet of Things Capturing Opportunity 
The Foundational Impact 
Building 
Blocks 
On Society 
©2014 Cisco and/or it...
Technology Talent 
Complexity 
©2014 Cisco and/or its affiliates. All rights reserved. 30 
Impediments to IoT Progress 
Bu...
Information and 
Communications 
Technology 
Security Data Science 
©2014 Cisco and/or its affiliates. All rights reserved...
Information and 
Communications 
Technology 
Security Data Science 
©2014 Cisco and/or its affiliates. All rights reserved...
©2014 Cisco and/or its affiliates. All rights reserved. 33 
Industry Talent Consortium to Address Skill Gaps 
Careerbuilde...
©2014 Cisco and/or its affiliates. All rights reserved. 34 
Uber: Most Transformational and Disruptive IoT Transition 
ƒ N...
©2014 Cisco and/or its affiliates. All rights reserved. 35 
Key Takeaways 
The World is Becoming Increasingly 
Diverse and...
Thank you 
Wim Elfrink, EVP, Industry Solutions 
and Chief Globalisation Officer 
Email: welfrink@cisco.com 
Twitter: @Wim...
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Presentacion Wim Elfrink IoT World Forum Chicago

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Key Note de Wim Elfrink de Cisco durante el IoT Forum, Chicago, Oct 14-16, 2014

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Presentacion Wim Elfrink IoT World Forum Chicago

  1. 1. The Internet of Things: Capturing the Accelerated Opportunity Wim Elfrink, EVP, Industry Solutions and Chief Globalisation Officer October 14-16, 2014 • Chicago, Illinois
  2. 2. The Internet of Things Accelerated Progress One year ago Why IoT Today How We capture the IoT opportunity ©2014 Cisco and/or its affiliates. All rights reserved. 2
  3. 3. ©2014 Cisco and/or its affiliates. All rights reserved. 3 From Hype to Reality…. “Up and to the Right” Internet of Things Big Data It’s Official: The Internet of Things Takes Over Big Data As The Most Hyped Technology. 8/18/2014 Source: Forbes and Gartner Hype Cycle 2014
  4. 4. ©2014 Cisco and/or its affiliates. All rights reserved. 4 From Hype to Reality…. “Up and to the Right” It’s Official: The Internet of Things Takes Over Big Data As The Most Hyped Technology. 8/18/2014 Internet of Things Source: Forbes and Gartner Hype Cycle 2014
  5. 5. Amazon pays $1B for Twitch Samsung snaps up Smart Things for $200M But is it Really Just Hype? Accelerated IOT Progress In the Industry Key Milestones Since Barcelona IoT WF 2013 ©2014 Cisco and/or its affiliates. All rights reserved. 5 MSFT entered IoT Market Barcelona Smart City Google/Nest Labs acquisition Facebook grabs WhatApp for $19B AT&T and IBM announce IOT Vision AT&T, CISCO, Zebra Acquires Motorola GE, IBM AND INTEL form Industrial Internet Consortium Schneider and IoBridge Announce Partnership Apple announces the First home automation Initiative Intel announces IoT Group PTC drops $300M on ThingWorx (Dec, 2013) & Axeda (Aug, 2014) Vodafone buys Cobra Automotive Technologies for $185M UK Creates £45m IoT Fund Siemens IoT Fund Oct. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.
  6. 6. Amazon pays $1B for Twitch Amazon pays $1B for Twitch Samsung snaps up Smart Things for $200M But is it Really Just Hype? Accelerated IOT Progress In the Industry Key Milestones Since Barcelona IoT WF 2013 ©2014 Cisco and/or its affiliates. All rights reserved. 6 MSFT entered IoT Market Barcelona Smart City Google/Nest Labs acquisition Facebook grabs WhatApp for $19B AT&T and IBM announce IOT Vision AT&T, CISCO, Zebra Acquires Motorola GE, IBM AND INTEL form Industrial Internet Consortium Schneider and IoBridge Announce Partnership Apple announces the First home automation Initiative Intel announces IoT Group PTC drops $300M on ThingWorx (Dec, 2013) & Axeda (Aug, 2014) Vodafone buys Cobra Automotive Technologies for $185M UK Creates £45m IoT Fund Siemens IoT Fund Oct. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Google acquires Nest Labs $3.2B Samsung snaps up Smart Things for $200M UK Creates £45m IoT Fund
  7. 7. ©2014 Cisco and/or its affiliates. All rights reserved. 7 Accelerated Progress for IoT: Technology Trends Connected Devices Since Barcelona, October 2013-2014 Connections Counter Data Processes Things Connected to the Internet October 14, 2013 Source: Cisco Connections Counter http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/
  8. 8. ©2014 Cisco and/or its affiliates. All rights reserved. 8 Accelerated Progress for IoT: Technology Trends Connected Devices Since Barcelona, October 2013-2014 Connections Counter October 14, 2014 Data Processes Things Connected to the Internet Source: Cisco Connections Counter http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/
  9. 9. ©2014 Cisco and/or its affiliates. All rights reserved. 9 IoT Is Here. Now. And It’s Big IoT Dashboard: IoT is Accelerating IoT… Huge Opportunity for Ecosystem 3 Key Takeaways 1 2 3
  10. 10. Factory Optimization SMART ©2014 Cisco and/or its affiliates. All rights reserved. 10 Integrated Operations Center Grid SMART Ambulances Medical Devices Stadium Hospital Optimization Comms Network Optimization Home Energy Management Digital Signage Traffic Flow Optimization Logistics Optimization Traffic Automated Cameras Car System A City, Country, Company with a Digital Overlay Connected Over Industry Standard Platforms Intelligent Connected Cloud and Services + Platform Smart FACTORY SMART HIGHWAY CITY SMART HOSPITAL Intelligent Connected
  11. 11. European Commission iCapital Award Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste ©2014 Cisco and/or its affiliates. All rights reserved. 11 Barcelona: Smart City $3.6B Value Creation Smart Citizens Revenue Citizen Experiences Jobs Productivity Cost Avoidance
  12. 12. European Commission iCapital Award Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste ©2014 Cisco and/or its affiliates. All rights reserved. 12 Barcelona: Smart City $3.6B Value Creation “ We are obsessed with building quality of life for our citizens. We needed to break through organizational siloes and Cisco became our IoE backbone. That is our present and the future of our city.” Antoni Vives Deputy Vice Mayor Smart Citizens City of Barcelona, Spain ƒ 1,500 New Companies ƒ 56,000 New Jobs ƒ Mobile Collaboration: $1.6B ƒ Telework: $199M ƒ Smart Parking: $67M ƒ Smart Water: $58M ƒ Smart Lighting: $47M Revenue Citizen Experiences Jobs Productivity Cost Avoidance
  13. 13. ©2014 Cisco and/or its affiliates. All rights reserved. 13 Barcelona: Smart City $3.6B Value Creation “WORLD’S 50 GREATEST LEADERS” #46 Barcelona Mayor Xavier Trias “ Barcelona has a mayor who is busy transforming the cultural gem of Spain’s Catalonia region into the ‘smartest city on the planet.’ Partnerships with companies like Cisco and Microsoft are fueling development, a new tech-campus hub is in the works, and he’s connecting citizens to government services through mobile technology.” –Fortune Magazine, March 2014
  14. 14. ©2014 Cisco and/or its affiliates. All rights reserved. 14 Welcome Deputy Mayor Steve Koch
  15. 15. The Internet of Things Accelerated Opportunity Growing Markets Total Value Sectors ©2014 Cisco and/or its affiliates. All rights reserved. 15
  16. 16. ©2014 Cisco and/or its affiliates. All rights reserved. 16 Inflection point 6.8 7.2 7.6 World Population Increasingly Everything Will Be Connected to Everything Rapid Adoption rate of digital infrastructure: 5X faster than electricity and telephony 50 2010 2015 2020 40 30 20 10 0 Billions of Devices Timeline 50 “Billion Smart Objects” 25 12.5 The New Essential Application Centric Infrastructure
  17. 17. Wisdom (Scenario Planning) Knowledge Information Data ©2014 Cisco and/or its affiliates. All rights reserved. 17 Big Data – The New Norm More Big Data Doubles Important Every Two Years Less Important ƒ 90% of world’s data created in last 2 years ƒ More new data generated in 2012 than prior 5,000 years ƒ By 2020, 40% of data will come from sensors ƒ Walmart collects 2.5 petabytes of data hourly from customer transactions ƒ Singapore generates several Terabytes of data every day New Need for Chief Digitization or Data Officer
  18. 18. ©2014 Cisco and/or its affiliates. All rights reserved. 18 Awareness of the IoT Opportunity Is Pervasive… 72% Americas 79% EMEAR 91% APAC 88% IT Execs / 75% LoB Are “very aware” or “somewhat aware” of IoT 92% 84% 82% 82% 82% 79% 70% Utilities Oil and Gas Manufacturing Retail Metals & Mining Transportation Public Sector Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team
  19. 19. ©2014 Cisco and/or its affiliates. All rights reserved. 19 …and Organizations Are Going To Invest 81% Americas 75% EMEAR 92% APAC 82% IT Execs / 74% LoB Investments to increase “somewhat” or “significantly” over 3 years 91% 89% 86% 86% 79% 77% 76% Oil and Gas Utilities Manufacturing Transportation Retail Metals & Mining Public Sector Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team
  20. 20. Public Sector ©2014 Cisco and/or its affiliates. All rights reserved. 20 Accelerated Opportunity Total Global Economic Value of IoT Economic Value Based on 61 Real-World Use Cases Value Sources Private Sector $6.4T $1.6T $8.0T Trillion Asset Utilization $2.1T Supply Chain/ Logistics $1.9T Innovation/ Revenue $2.1T Customer/ Citizen Experience $0.7T Employee Productivity $1.2T
  21. 21. 0 5,000 10,000 15,000 20,000 ©2014 Cisco and/or its affiliates. All rights reserved. 21 IoT Economic Value by Industry Administration (6%) 35% 30% 25% 20% 15% 10% 5% 0% (Value at Stake/Industry Size) Degree of Impact Source: Cisco Consulting Services, 2013 Retail trade (10%) Information services (4%) Manufacturing (Energy, Oil & Gas) (34%) Public Sector Healthcare (5%) (20%) Finance & insurance (4%) Professional services Education Industry Size ($B) Spheres sized by amount of Economic Value
  22. 22. ©2014 Cisco and/or its affiliates. All rights reserved. 22 Interactive IoT Global Deployment Map ƒ 260 Global Use Cases ƒ Across Industries ƒ Interactive at Forum Kiosks
  23. 23. ©2014 Cisco and/or its affiliates. All rights reserved. 23 Interactive IoT Global Deployment Map Chicago
  24. 24. ©2014 Cisco and/or its affiliates. All rights reserved. 24 Interactive IoT Global Deployment Map Connected Street Lights
  25. 25. ©2014 Cisco and/or its affiliates. All rights reserved. 25 Interactive IoT Global Deployment Map Real Time Bus Schedules
  26. 26. ©2014 Cisco and/or its affiliates. All rights reserved. 26 Interactive IoT Global Deployment Map Smart City
  27. 27. ©2014 Cisco and/or its affiliates. All rights reserved. 27 Internet of Things Reference Model Levels Collaboration & Processes (Involving People & Business Processes) Application (Reporting, Analytics, Control) Data Abstraction (Aggregation & Access) Data Accumulation (Storage) Edge Computing (Data Element Analysis & Transformation) Connectivity (Communication & Processing Units) Physical Devices & Controllers (The “Things” in IoE) Center Edge Sensors, Devices, Machines, Intelligent Edge Nodes of all types 7 6 5 4 3 2 1
  28. 28. ©2014 Cisco and/or its affiliates. All rights reserved. 28 Internet of Things Reference Model Levels Collaboration & Processes (Involving People & Business Processes) Application (Reporting, Analytics, Control) Data Abstraction (Aggregation & Access) Data Accumulation (Storage) Key Points: ƒ A guiding model for IoT implementations ƒ Creates an IoT technology taxonomy ƒ Helps accelerate IoT deployments ƒ Supported by 20 companies – members of the architecture workgroup ƒ Endorsed by IIC (Industrial Internet Consortium) Edge Computing (Data Element Analysis & Transformation) Connectivity (Communication & Processing Units) Physical Devices & Controllers (The “Things” in IoE) Center Edge Sensors, Devices, Machines, Intelligent Edge Nodes of all types 7 6 5 4 3 2 1
  29. 29. The Internet of Things Capturing Opportunity The Foundational Impact Building Blocks On Society ©2014 Cisco and/or its affiliates. All rights reserved. 29
  30. 30. Technology Talent Complexity ©2014 Cisco and/or its affiliates. All rights reserved. 30 Impediments to IoT Progress Business Readiness Security Data Policies
  31. 31. Information and Communications Technology Security Data Science ©2014 Cisco and/or its affiliates. All rights reserved. 31 Where are the Skills Gaps? What is the Impact for IoT? Global shortage of workers over next 5 years Increase in demand from 2011 to 2013 Jobs needed in next 10 years
  32. 32. Information and Communications Technology Security Data Science ©2014 Cisco and/or its affiliates. All rights reserved. 32 Where are the Skills Gaps? What is the Impact for IoT? Global shortage of workers over next 5 years Source: Cisco's 2014 Annual Security Report Career Builder, IBSG, Bureau of Labor and Statistics Increase in demand from 2011 to 2013 Jobs needed in next 10 years
  33. 33. ©2014 Cisco and/or its affiliates. All rights reserved. 33 Industry Talent Consortium to Address Skill Gaps Careerbuilder.com
  34. 34. ©2014 Cisco and/or its affiliates. All rights reserved. 34 Uber: Most Transformational and Disruptive IoT Transition ƒ New Business and Consumption Models ƒ New Type of Job Model: Drivers Work When They Want ƒ Modernizing Economy
  35. 35. ©2014 Cisco and/or its affiliates. All rights reserved. 35 Key Takeaways The World is Becoming Increasingly Diverse and Digitalized A New Data Driven World… Chief Data Officer ICT… The Essential Infrastructure… IT and OT Alignment Transformational Opportunities…Generating $19T Economic Value Future of Work in a Sharing Economy New Ecosystems Will be Essential Integrated Operations Centers… Data Info Knowledge Wisdom What Are Our Next Steps?
  36. 36. Thank you Wim Elfrink, EVP, Industry Solutions and Chief Globalisation Officer Email: welfrink@cisco.com Twitter: @WimElfrink

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