Andreas Moser Head of Digitization Switzerland, Cisco Systems @DigitalMoser May 10, 2016 Business Impact of Digitisation
Andreas Moser
Head of Digitization Switzerland, Cisco Systems
@DigitalMoser
May 10, 2016
Business Impact of Digitisation
“ The future is here…it’s just not evenly distributed” William Gibson
Speed of Innovation
0
60
iPhone 1 in 2007; Mobile app economy
$100B in 2015; 10M developers
15B 50B (1M/hr) 500B connected-40% traffic M2M
Hyper-Connectivity
Lowered Costof Innovation
$5M in 2000 $5K in 2015
Increased Volume of Innovation
$50B venture funding
Market Disruptors
#1Technology
#2Media /
Entertainment#3Retail
#4Financial Services
#5Tele-
communi-
cations
#6Education
#7Hospitality /
Travel
#8Manufacturing
#9Healthcare
#10Energy
#11Oil & Gas
#12Pharma-ceuticals
Source: Cisco & IMD Global Center for Digital Business Transformation
Digital Vortex
ignore proactive
4/10Companies will be displaced by
digital disruption in the next 5 years
45% 25%Source: Cisco & IMD Global Center for Digital Business Transformation 5© 2016 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
Top Industries, Ranked by Value at Stake (2015–2024)
0
1
2
3
4
5
6
7
Manufacturing FinancialServices
Retail ServiceProvider
Healthcare Oil and Gas
Trillions
$6.4T
$3.1T $2.8T
$2.0T$1.4T $1.1T
Industry View of Value at Stake
Ev
olu
tio
nR
ev
olu
tio
n
Optimisation Disruption
Optimise
Core
Competence
Improvement
Service
Orientation
Value creating
chain
integration
Transform
GTM Change
Disrupt
Platform
(Shared
Economy)
65%Value atStake
larger than2013
Cross-
Industrial Value
Creation
Value
Shifts –
from “the
disrupted” to
“the disruptor”
Source: Cisco, A Roadmap to Digital Value in the Private Sector. Digital Value at Stake Analysis, 2015-2024
What industries will self-driving cars disrupt?
Media / Entertainment
Energy
Retail
Public Transportation
Parking Garages
Insurance / Financing
Airlines
Automotive/Manufacturing
HealthcareHotels
Taxis
One disruption can redefine many industries
Auto repairs / Auto parts
Real Estate
Law Enforcement
Education
Source: Cisco & IMD Global Center for Digital Business Transformation
Connectivity SecurityAnalytics
Everything will be connected, generate data and talk securely.
It’s going to take a lot of connectivity
From Data Centers…to Centers of Data
Sensor Edge Data Center
Data analytics at…
Traditional ApproachTake Data to the Processing
ProcessingProcessing
Fog Node
IoT
Device Processing
Fog Node
Processing
IoT
Device
Optimal Approach for IoTTake Processing to the Data
Data analytics at…
Cost Value
To compete by offering the customer a lower cost or other
economic gains
ExperienceValue
Compete by offering the customer a superior
experience
Platform Value
Compete by creating network
effects that benefit customers
$
Source: Cisco & IMD Global Center for Digital Business Transformation