* 2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialRoberto JuncoConsulting Systems Engineer IoT BUDigitization the world trough Internet of Everything

The Internet is changing everything

199520102020Fixed Computing(you go to the device)Mobility / BYOD(the device goes with you)Internet of Everything(people, process, data, things)2000Internet of Things(age of devices)Waves of Internet Growth200M50B Things (including devices)10BSources: Cisco VNI, Cisco ConsultingDigitalize the world

*Digitalize the world

The Internet of Things is the intelligent connectivity of physical devices, driving massive gains in efficiency, business growth, new experiences and quality of lifeL

Digitization, IoE and IoTAccelerate Business Processes, Introduce New ServicesUPS TrackingData Driven Business Intelligence

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPeopleHomeEnterpriseCities

*Cisco Systems, Inc 2010 Cisco and/or its affiliates. All rights reserved. From M2M to the Internet of EverythingBusiness Application #1Business Application #2Business Application #3Converged Application InfrastructureConverged Network Based on Open Standards and Common Data ModelsExisting Proprietary Vertical Applications and Networks

*How to identify if someone has Stress ? With contextual information Heart Beat Rate ? MovementWhat is the temperature ?

Is it raining ? Is the person in the traffic ? Is the person alone ?

APPLICATIONSIoT System

* 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential*IoE Economic Value

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialCustomer ExperienceEmployeeProductivity InnovationSupply Chain& Logistics$ 2.5 T$ 3.7 T$ 3.0 T$ 2.7 TIOE Economic Impact by 2020

*Cisco Confidential 2014 Cisco and/or its affiliates. All rights reserved.IOE Business Impact in RETAIL Industry ChallengesInternet of Everything OpportunityEnhance the Customer ExperienceIncrease RevenuesIncrease efficiency and productivityLower Operating CostsMitigate risk$1.6T

*Cisco Confidential 2014 Cisco and/or its affiliates. All rights reserved.In Transit Visibility and Efficiency improvement

This type of available granular, precise information recorded directly in and during supply chain operations activities has been demonstrated to deliver an average supply chain operations cost savings of 3 percent to 5 percent and inventory investment savings of 7 percent and more. When combined, these savings have reduced the Unit Cost Of Goods Sold by an average of 0.5 percent for the products that were analyzed By Joe McKinney and Arthur Radfordhttp://www.supplychain247.com/article/the_financial_value_of_in_transit_cargo_tracking_dataIOE Business Impact in Supply Chain L

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialThe powerful capabilities of Smart, Connected products not only reshape competition within an industry but they can expand the very definition of the industry itselfMichael Porter & James E. Heppelmann, HBR, Nov, 2014

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialBased on Managing the Internet of things,HBR, Porter & Heppelmann, Nov 2014Redefining Industry Boundaries

Cisco Confidential 2010 Cisco and/or its affiliates. All rights reserved.Level 1 - Unconnected

Limited Product FeedbackHigh Cost of Service Level 2 -Connected

Remote AccessFragmented InformationReactive Response to IssueLevel 3/4 -Serviceable & Intelligent

Predictive MaintenanceView and analyze Product dataElectronic Software DeliveryLevel 5/6 -Optimized & Differentiated

Enterprise IntegrationTrack and Locate / Inventory ManagementNew Revenue-generating capabilitiesMobile Integration

Maturity Model for Products Based on Product Maturity Model by Axeda - www.axeda.com

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialThink Usage Models if Digitized (Hung LeHong, Gartner) MANAGEOptimizeOPERATE...RemoteEXTEND..Digital Supply ServicesMONETIZE.by USEBottom LineTop Line

* 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential*Conclusions

The Last Forgotten Grocery Item AT&T with Hy-Vee Partner on a Virtual Shopping Assistant

The Last Car Accident Vodafone with CleverMiles Partner on Auto Safety

Cisco Confidential

Cisco Confidential

2014 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialIoE presents several ChallengesSecurity breaches: New endpoints in/out networkPrivacy breaches: Storing/Losing/Selling customer things dataIT/OT not aligning: Political struggle, asset responsibility/accountabilityBudget overruns: Data, licenses, m2m plansLack of innovation: Not contributing to new modelsBiz Alignment: No company business impact

Take AwayIoE brings Digitization to the Economy and new business models that are changing the industry.Showing IoT like sensors that are connected to the network it is a limited vision. We build the base of the IoE connecting things, building systems and network architectures to support the interconnection and process that improve business models.IoE will force the question What business am I? The changing nature of products is disrupting value chains and forcing companies to rethink nearly everything; to how they manufacture, operate, and service them.IoE improves the way we live, we work now.*

More informationIoT Free Book on iBooks in SpanishSearch by title : Descubriendo Internet of ThingsGet it now from your iPhone iPad Mac !

Talking Points/Script:

How does the Internet of Everything (IoT) fit within the continuum of the internet?

First phase of the internet (1995-2000) was able fixed computing where customer goes to a specific device like a PC for internet services. About 200 Million devices were connected to the internet.

Second phase of the internet (2000-2010) was about mobility and BYOD where the internet is portable on any device the internet travels with the customer.

In terms of phases or eras, the Cisco Internet Business Solutions Group (IBSG) believes that we are currently experiencing the Internet of Things (IoT), where millions of new devices are regularly being connected to the Internet.

According to Cisco VNI 2015, there were approximately 14.2 billion (fixed and mobile) networked devices in the world as of 2014 YE. This well exceeds the current 7 billion global population.

As these things add capabilities like context awareness, increased processing power, and energy independence, and as more people and new types of information are connected, we will quickly enter the Internet of Everything (IoE) a network of networks where billions or even trillions of connections create unprecedented opportunities as well as new risks. Cisco IBSG estimates that by 2020, there will be 50 billion connections among people, process, data and things. Of this 50 billion, there will be 21 billion fixed and mobile networked devices by 2018 per Cisco VNI 2014 studies. **Speaking Notes:

UPS: (Data from Leading Digital book)

Challenge:For decades, UPS has been a leader at optimizing its processes. By standardizing its processes, even to the extent of telling drivers how to step off the truck, UPS continually improves efficiency, safety, and quality.UPS controls a complex logistical web with millions of possible permutations in service options and delivery routes. Route Optimization is a key opportunity and complex challenge, every driver at UPS has trillions of ways to run their delivery routes.Solution:UPS used advanced algorithms to shave millions of miles from delivery routes.The project crunches business rules, map data, customer information, and employee work rules, among other factors, to optimize package delivery routes within six to eight seconds.Results:Analytics has helped UPS to reduce eighty-five million miles driven per year.The reduction equates to over eight million fewer gallons of fuel used.

Boeing: (Data from Manufacturing EBC deck)

ChallengeAvoid misplacing toolkits, machinery, parts and WIP (Work in Progress) inventory which cost as much as $1 million per incident SolutionCiscos Unified Wireless LAN Infrastructure Location capabilities and Wi-Fi asset tagsResultsLocates tagged assets instantlyReduces delays in the production Reduces government fines

In the factory, the ability to locate major parts and tooling on a timely basis is critical... [Wi-Fi-based Active RFID] will streamline our production environment and make it more efficient time-wise and dollar-wise, by not having to replicate tooling and pieces of gear.Jim Farrecker, Chief Network Engineer, BoeingStanley: (Data from Manufacturing EBC deck)

ChallengeGet better transparency of real-time production to scheduleDissect why actual labor costs exceeds standard costsNeed to understand effects of shift changes Gain better visibility to real-time OEESolutionLeverage Cisco Connected Factory Wireless in the plant Combine with AeroScout RFID tagsIntegrate RFID Tags to PLC and Quality Control scalesResults24% in OEE improvement in router lineReduced labeling error rate by 16%Improved labor utilization from 80 to 92%Reduced inventory holding costs by 10%

With the help of the Cisco and AeroScout Industrial solution, we are on our way toward realizing our vision of a virtual warehouse and fully connected factory, with complete visibility and traceability.Gary Frederick, CIO Industrial Division, Stanley

Starbucks: (Data from Leading Digital book)

ChallengeFollowing a rapid expansion, Starbucks faced declining same-store sales in 2008, and its share price had been cut nearly in half over the prior two years.Senior leaders, under the helm of CEO Howard Schultz, took a number of strategic actions, key among them using digital technologies to engage customers in new ways.Digital for Starbucks was not just about a website or a point-of-sales system, but about an ability to connect with customers and transform their experience and drive the company. (Adam Brotman, Chief Digital Officer)SolutionThe first Starbucks foray into mobile was the companys myStarbucks app, released in 2009.In January 2011, Starbucks took its loyalty program digital with the introduction of its Starbucks Card mobile app.Starbucks has continued to expand its mobile payment capabilities. In 2012, it announced that customers would be able to make payments at the register via Square an app-based mobile payment system following a $ 25 million investment in the service.ResultsMobile payments at Starbucks have been a success for customer convenience, but they are proving to have financial benefits as well.With over three million mobile payment transactions per week in 2012, the mobile-payments introduction has significantly reduced transaction fees.Everything we are doing in digital is about enhancing and strengthening those connections [with our customers] in only the way that digital can and only the way that Starbucks can. (Brotman, CDFO)

Philips Connected Lighting:

For Cisco, Major Partners On-Board: Phillips (vertically integrated), Cree (LEDs), Microchip (controller). Gap: Lighting Management Application (just started discussions with a startup Enlighted)

Challenge:Imagine . . .a world ofbeautifully illuminatedindoor and outdoor spaces . . . where every light point is connected to anintelligent systemthat delivers high-quality, reliable illumination . . . and that serves asa pathway for information and services . . . to deliver extraordinaryvalue beyond illuminationto the users and managers of spaces. (From Philips Website)Solution:Connected Lighting IoT for the carpeted area. Results:For Manufacturers: Big Market: Lighting market will be 100B by 2020 (McKinsey). LEDs will be 54% of this marketFor Customers: Save energyUp to 80% savings over conventional lighting (Philips website)

Digital Disruption quotation from John Chambers at Cisco Partner Summit 2015.*The Last Forgotten Grocery Item Talking Points/Script:

STATS/INFOGlobal grocery store and supermarket sales total about $2 trillion annually (First Research) 66% of US consumers use coupons when they grocery shop & go to the grocery store more than once per week (Statista)1 in 5 US retail shoppers are connected while in-store (Cisco)

Progress:Hy-Vee, a grocery store chain with 235 locations across 8 states, launched a mobile application with AT&T to create mobile shopping lists, locate products in-store, access coupons, interact with social media in real-time for recommendationsMobile application was built on the AT&T Mobile Enterprise Application Platform (AT&T MEAP) which is a comprehensive suite of products and services that enables companies to design, build, deploy and manage dynamic mobile applications.Hy-Vee and AT&T can also create real-time offers based on location data increasing purchasesAT&T can expands its application platform ecosystem by integrating the Hy-Vee solution with financial payment services

*The Last Car Accident Talking Points/Script: STATS/INFO (Association for Safe Intl Travel)Nearly 1.3 million globally people die in road crashes each year, on average 3,287 deaths a day.An additional 20-50 million globally are injured or disabled each yearMore than 50% of all road traffic deaths occur among adults ages 15-44

ProgressVodafone is partnering with CleverMiles in Ireland to launch a M2M system to promote safe drivingVodafone M2M SIMs are installed in special devices that plug into cars and monitor a drivers performance including speed, acceleration and braking. That data is relayed back to CleverMiles via the Global M2M Platform. M2M connectivity and analytics offer detailed analysis of driver behavior Data is compiled so drivers can score points, win prizes and compete against each other in driver safety metrics through social media networksVodafones Global M2M SIM can be pre-provisioned and ready to use in any country and also allows CleverMiles to activate, suspend or deactivate SIMs at the click of a button*