Embracing the ioe to capture your share of $14.4trillion (1)
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The document discusses the Internet of Everything (IoE) and its estimated $14.4 trillion in value that can be created by 2022 through connecting people, processes, data, and things. It states that IoE value will come from increased revenues and lower costs across industries. Key factors fueling this value include improved asset utilization, employee productivity, supply chain efficiency, customer experience, and innovation. The document recommends that business leaders transform their organizations based on learnings from high-value IoE use cases like smart grids and factories.
Embracing the ioe to capture your share of $14.4trillion (1)
- 1. Joseph Bradley Joel Barbier Doug Handler Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion More Relevant, Valuable Connections Will Improve Innovation, Productivity, Efficiency & Customer Experience Executive Summary The Internet of Everything (IoE) creates $14.4 trillion in Value at Stake the combination of increased revenues and lower costs that is created or will migrate among companies and industries from 2013 to 2022. The five main factors that fuel IoE Value at Stake are: 1) asset utilization (reduced costs) of $2.5 trillion; 2) employee productivity (greater labor efficiencies) of $2.5 trillion; 3) supply chain and logistics (eliminating waste) of $2.7 trillion; 4) customer experience (addition of more customers) of $3.7 trillion; and 5) innovation (reducing time to market) of $3.0 trillion. Technology trends (including cloud and mobile computing, Big Data, increased processing power, and many others) and business economics (such as Met- calfes law) are driving the IoE economy. These technology and business trends are ushering in the age of IoE, creating an unprecedented opportunity to connect the unconnected: people, process, data, and things. Currently, 99.4 percent of physical objects that may one day be part of the Internet of Everything are still unconnected. To get the most value from IoE, business leaders should begin transforming their organizations based on key learnings from use cases that make up the majority of IoEs Value at Stake. These use cases include smart grid, smart buildings, connected healthcare and patient monitoring, smart factories, connected private education, connected commercial (ground) vehicles, connected marketing and advertising, and connected gaming and entertainment, among others. Robust security capabilities (both logical and physical) and privacy policies are critical enablers of the Internet of Everything Economy. The IoE Value at Stake projections are based on increasingly broad adoption of IoE by private-sector companies over the next decade. This growth could be inhibited if technology- d r i ven security capabilities are not combined with policies and processes designed to protect the privacy of both company and customer information. To get the most value from IoE, business leaders should begin transforming their organizations based on key learnings from use cases that make up the majority of IoEs Value at Stake. White Paper Page 1 息 2013 Cisco and/or its affiliates. All rights reserved.
- 2. The Internet of Everything Is Happening Now Cisco estimates that 99.4 percent of physical objects are still unconnected.1 Conversely, this means that only about 10 billion of the 1.5 trillion things globally are connected.2 At a more personal level, there are approximately 200 connectable things per person in the world today.3 These facts highlight the vast potential of connecting the unconnected. Even so, the growth of the Internet has been unprecedented (see Figure 1). Cisco estimates that there were about 200 million things connected to the Internet in the year 2000. Driven by advances in mobile technology and the bring your own device (BYOD) trend, among others, this number has increased to approximately 10 billion today, putting us squarely in the age of the Internet of Things (IoT). The next wave of dramatic Internet growth will come through the confluence of people, process, data, and things the Internet of Everything (IoE).4 Figure 1. Rapid Growth of the Number of Things Connected to the Internet. Source: Cisco IBSG, 2013 IoE is further being driven by several factors. First, powerful technology trends includingthe dramatic increase in processing power, storage, and bandwidth at ever-lower costs (Moores law still at work); the rapid growth of cloud, social media, and mobile computing; the ability to analyze Big Data and turn it into actionable information; and an improved ability to combine technologies (both hardware and software) in more powerful ways make it possible to realize more value from connectedness. Second, barriers to connectedness continue to drop. For example, IPv6 overcomes the IPv4 limit by allowing for 340,282,366,920,938,463,463,374,607,431,768,211,456 more people, processes, data, and things to be connected to the Internet. Amazingly, IPv6 creates enough address capacity for every star in the known universe to have 4.8 trillion addresses. White Paper The next wave of dramatic Internet growth will come through the confluence of people, process, data, and things the Internet of Everything. Page 2 息 2013 Cisco and/or its affiliates. All rights reserved.