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(1110R) C96-735796-00 Source 1 Smart Connected Operations: Capturing the Business Value of the Industrial IoT – Cisco Sponsored Video - LNS Research 2 Smart Connected Operations - Capturing the Business Value of Industrial IoT - LNS paper 3 Internet of Things Adoption, Concerns, and Budgeting: Forrester Business Technographics®: Segment Analysis for Cisco 4 “Digital Vortex: How Digital Disruption is Redefining Industries” , Global Center for Digital Business Transformation, June 2015 5, 6 ibid 7 Internet of Things Adoption, Concerns, and Budgeting: Forrester Business Technographics®: Segment Analysis for Cisco 8 SCM World survey, June 2015 9 Ibid 101010101011010101000101010100010111000100101001010100111000010101010101010110101010001010101 001010101010101011010101000101010100010111000100101001010100111000010101010101010110101010001 101010101101010100010101010001011100010010100101010011100001010101010101011010101000101010100 0000101010101010101101010100010101010001011100010010100101010011100001010101010101011010101000 0101101010100010101010001011100010010100101011000010101010101010110101010001010101000101110001 010101010101010110101010001010101000101110001001010010101001110000101010101010101101010100010 101010101011010101000101010100010111000100101001010100111000010101010101010110101010001010101 001010101010101011010101000101010100010111000100101001010100111000010101010101010110101010001 101010101101010100010101010001011100010010100101010011100001010101010101011010101000101010100 0000101010101010101101010100010101010001011100010010100101010011100001010101010101011010101000 0101101010100010101010001011100010010100101011000010101010101010110101010001010101000101110001 33% of the market is at some stage of adoption 1 15% will invest in the coming year 2 52% are not investing – risk being disrupted IoT early adopters are finding value, and want to do more: 28% 28% will increase IoT spending 3 33% 15% 52% Innovative Manufacturers Recognize the Potential of Industrial IoT and Digitization IoT Is a Digital Business Disruptor. Use It Now to Differentiate and Get Ahead. 00010101010101010110101010001010101000101110001001010010101001 11000010101010101010110101010001010101000101110001001010010101 010101010101010110101010001010101000101110001001010010101001 110000101010101010101101010100010101010001011100010010100101 010101010110101010001010101000101110001001010010101001 110000101010101010101101010100010101010001011100010010100101010 40% Digital disruption will displace nearly 40% of top incumbents across industries over the next 3 – 5 years. 4 Most business leaders see digitization as a force for good 75% view it as a form of progress 5 72% say it improves value for customers 6 75% 72% Digital Manufacturers Experience Dramatic Outcomes The Internet of Things is transforming manufacturing: Connect devices on the factory floor and beyond for: FANUC saved $40 million by reducing downtime 16% Stanley Black & Decker reduced labeling error rate by 16% Strong security Agile production Enhanced productivity Improved cost efficiency Sub Zero cut new product introduction (NPI) cycle time by 20% 20% Digitization Enhances Business Visibility, Intelligence, and Decision-Making Manage the complete supply chain Boost visibility, intelligence for better decisions (A top priority for 79% of manufacturers 8 ) Mobilize workers for productivity (Mobility is top focus across all industries) 9 51% 46% Enterprises 51% of enterprises and 46% mid-market companies adopting M2M and IoT solutions to gain visibility beyond factories, spanning the entire supply chain. 7 Mid-market Visibility Intelligence Better decisions (IoE) will help us monitor and control everything. (Global Auto Manufacturer, 2014) Sensor data in our manufacturing processes will lower costs by taking fewer outages and providing us a better understanding of the environment. (Defense and Security Manufacturer, 2014) By capturing data of these devices, we think we can do a better job at proactively maintaining our equipment. (Flooring and Furniture Manufacturer, 2014) (IoE initiatives) will link to our plans for mobility and be an evolution for connecting many different devices. (Leading Manufacturer, May 2014) In our current parking hardware, to better monitor and connect devices. (GPS Manufacturer, 2014) Door sensors in the operating room and RFID on medical devices. (Major Healthcare Provider, May 2014)