Cisco Australia Internet of Everything Value Index 2013

© 2010 Cisco and/or its affiliates. All rights reserved. 1 © 2013 Cisco and/or its affiliates. All rights reserved. 1

2 August 2013

© 2010 Cisco and/or its affiliates. All rights reserved. 2

Source: Telefonica I&D 2011


Source: Telefonica I&D 2011


Bu

sin

ess a

nd

So

cie

tal I

mp

act

Intelligent Connections

• Email

• Web Browser

• Search

Connectivity

Digitize Access to

Information • Social

• Mobility

• Cloud

• Video

Immersive

Experiences

Digitize Interactions

(Business & Social)

• E-commerce

• Digital Supply Chain

• Collaboration

Networked

Economy

Digitize Business

Process Connecting:

• People

• Process

• Data

• Things

Internet of

Everything

Digitize

the World


© 2010 Cisco and/or its affiliates. All rights reserved. 6 Source: Cisco Internet Business Solutions Group, 2013

The Internet of Everything has the potential to grow global corporate profits by 21% in aggregate by 2022.

What fuels Internet of Everything Value at Stake?

Supply Chain/Logistics

Innovation Customer

Experience Employee

Productivity Asset

Utilization


55%

45%

Source: Cisco IBSG, 2013

While machine-to-machine connections are increasingly important, person-to-person and person-to-machine still represent the majority of the Value at Stake in the IoE Economy.

$0 $1 T $2 T $3 T $4 T $5 T $6 T $7 T

P2P

M2P or P2M

M2M

© 2010 Cisco and/or its affiliates. All rights reserved. 8 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Connected Industry

• ~$52B TAM 2016

• 13B B-to-B Connections by 2015

• Auto Plant… 50K IP-ready Devices

• Connected Vehicles, Defense, Industrial/M2M, Transportation

Smart + Connected Communities

• $1.5T Market 2020

• Education, Energy, Traffic, Entertainment, Safety, Healthcare, Real Estate, Gov’t

• 9 Iconic Projects / 100s Projects

Connected Energy

• ~$9B TAM 2016

• BC Hydro… Vancouver

• 1,700 Poletop Routers

• 1.6M Smart Meters


Create a virtual pool of experts, whether co-located or dispersed within a global network.

Instantly interact with experts face-to-face in any easy-to-use, virtualized manner structured to help ensure effective collaboration.


• Conducted ground-breaking online survey of 7,501 business and IT decision-

makers, split between enterprises and mid-sized companies

• Study executed by the Cisco Consulting Services Research & Economics

Practice

• MIT Center for Digital Business provided advice on questionnaire

development, but not on the IoE Value Index design or Value at Stake / value-

realized estimates

• Fielded in 12 of the largest global economies (70% of worldwide GDP):

Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico,

Russia, U.K., and U.S.

• Estimates actual value realized by firms in 2013 as a share of potential Value at

Stake; explores key IoE enablers (people, process, data, things) that drive

value


IoE Value at Stake 2013 (January-December)

$14.4T* 2013 $1.2T

Value realized in 2013

$613B

(53%)

$544B

(47%)

Value “left on table”

in 2013

Global Value at Stake 2013-2022 (10-year total)

$1.2T

Note: chart is not to scale.

* $14.4T is conservative because it is based on a set number (21) of private-sector use cases and discounts future cash flows due to uncertainty around privacy and regulatory issues.


M2M

M2P

P2P

0

10

20

30

40

50

60

70

80

$35.6B Value Realized

(VR)

$74.4B Value at Stake (VAS)

Source: Cisco IBSG, 2013

VR

VR

VR

VR

VR

VAS

VAS

VAS

VAS

VAS

02468

10121416182022242628

Assetutilization

Customerexperience

Supplychain

Innovation Employeeproductivity

Value Drivers Types of Connection


Key Challenges


44.9%

45.8%

46.0%

50.7%

50.8%

54.2%

57.4%

60.5%

65.4%

55.1%

54.2%

54.0%

49.3%

49.2%

45.8%

42.6%

39.5%

34.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Retail / Wholesale /Hospitality

Energy

Manufacturing

Transportation

Other

Healthcare / Lifesciences

Services

Financial services

High tech /Telecoms

IoE value realized IoE opportunityN=7,501

Value at Stake

2013 ($B)

$118.3

$115.2

$276.9

$98.7

$65.4

$23.6

$224.4

$55.0

$179.6


Lo

cati

on

of

Fir

ms

Valu

e a

t S

take 2

013 (

$B

)

47.1%

47.7%

47.9%

48.8%

51.0%

52.5%

53.1%

53.4%

53.5%

54.2%

57.7%

62.2%

52.9%

52.3%

52.1%

51.2%

49.0%

47.5%

46.9%

46.6%

46.5%

45.8%

42.3%

37.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mexico

Russia

Australia

China

Brazil

India

Canada

U.K.

U.S.

France

Japan

Germany

IoE value realized IoE opportunity

$54.4 Billion

$41.0 Billion

$32.2 Billion

$253.0 Billion

$28.4 Billion

$30.2 Billion

$18.2 Billion

$17.3 Billion

$76.9 Billion

$35.6 Billion

$17.0 Billion

$9.2 Billion

$87.5

$71.2

$59.4

$472.9

$53.3

$56.8

$34.8

$34.0

$157.7

$74.4

$35.6

$19.6

N=7,501 respondents


N=7,501 respondents

8.2 Indian business and IT leaders

8.0 Chinese business and IT leaders

7.9 Brazilian business and IT leaders

6.7 Non-emerging market business and IT leaders

7.4 Mexican business and IT leaders

6.6 Australian business and IT leaders

10-point scale: 1 = extremely weak ability; 10 = extremely strong ability

Impact


Thank you.

Cisco Australia Internet of Everything Value Index 2013

Technology