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Technology- The Paintbrush Enabling the New Manufacturing Renaissance

Welcome to the New Manufacturing Renaissance driven by a collage of sensors, robots, servers, clouds, tablets, machines, people and …things. The Internet of Everything (IoE) is serving as the canvas that connects and integrates all those “things.”  Over the last few years we have been inundated by industry pundits and scholars predicting the efficiency gains, value opportunities and innovations that can be obtained from the IoE revolution.  In fact, Cisco estimates the manufacturing IoE value opportunity is $4.2 trillion over the next 8 years.

Forward thinking CTO’s  understand that technology plays a significant roll in enabling this renaissance.  In a recent Industry Week article, our CTO, Padmasree Warrior, made the following observation:

“At this point, we believe that every company, big and small, is essentially becoming a technology company,” Warrior says. “Technology has become implicit and embedded in every business process today — the supply chain, manufacturing floor, automation and IT: They are all driven by technology and data analytics, not just operational expertise.

This renaissance is accelerating now thanks to the convergence of a number of technology trends: the low cost and accessibility of Big Data associated with cloud computing; the plummeting cost of electronic sensors, microprocessors and other components that can be used to make machines more adept; and advances in software and communications technology that make it possible to manage manufacturing with a whole new level of precision and enable new forms of collaboration.

Convergence has to not only occur  between  Information (IT) and Operational (OT) Technologies , but also within the C-suite.  The CTO’s primary responsibilities are evolving to become more tightly integrated and aligned with the enterprise’s business and operational goals. The result is optimized business processes, enhanced information for better decisions, reduced costs, lower risks and shortened project timelines.

Sujeet Chand, chief technology officer at Rockwell Automation adds,

“The role of the CTO is no longer just to enable technology.  Our role is to use that technology to help move the business forward.  It’s all part of the convergence between IT and OT,”

Chand explains.

“To really get value from that convergence, you’ve got to highlight what value is going to be derived. You don’t want to connect manufacturing to IT for the sake of connecting manufacturing to IT or put all kinds of real-time data into the cloud for no reason.”

The New Manufacturing Renaissance is creating a wave of technologies and ideas.  The revolution threatens to shatter long-standing business models, upend global trade patterns and surpass the radical gains and innovations brought forth by the Industrial Revolution.

Has your organization evolved and embraced the opportunities afforded by the IoE revolution?  Is your CTO driving business relevance through the innovative use of technology?  Have you broken down organizational silos to foster a true innovation culture throughout the manufacturing value chain?

The technology is mightier than the paintbrush.

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Warrior on CNBC: “Innovation May Spark Economic Renewal”

April 10, 2013 at 1:57 pm PST

Cisco Chief Technology and Strategy Officer Padmasree Warrior offers a commentary on the Internet of Everything today on CNBC.com.

She states in part:

“The Economist magazine cover story recently explored whether innovation was dead. Is it possible that after five years of a tough economy with a slow recovery that we’re done when it comes to new ideas? …

… There are indicators now that we’re about to launch into the next era, driven by what people are calling the “Internet of Everything” or IoE. It’s the next stage of Internet growth with the intelligent connection of people, process, data, and things. …

There is a lot at stake here: $14.4 trillion to be exact—just for the private sector. That’s the amount that our research shows could be gained globally in the next decade from the intelligent connections.” …

Read her full commentary here.

Additionally, read Cisco’s white paper on the Internet of Everything…and, our Frequently Asked Questions (FAQ) document.

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The Internet of Everything: Transforming College Education To Align with Business Needs #IoE

As a father of future college students, I’m excited that Cisco’s announcement yesterday about the Internet of Everything (IoE) Economy may finally transform college education to provide graduates with the real-world skills needed by businesses today — and tomorrow.

Before I jump too far ahead, let me explain what Cisco announced. Cisco estimates that there are currently about 20 billion things connected to the Internet, yet more than 99 percent of physical “things” remain unconnected. Obviously, there is a huge opportunity to connect the unconnected. IoE aims to do just that by adding people, process, and data to the things that are connected to the Internet, such as devices, sensors, and machines.

To help businesses understand how to benefit from IoE, Cisco IBSG’s Economics Practice calculated the amount of Value at Stake in the IoE Economy. Value at Stake is defined as the value that will either be newly created or will migrate between lagging companies and industries to the leaders over the next 10 years based on their ability to harness IoE. We did this by taking a bottom-up approach of selecting and analyzing 21 industry-specific and cross-industry use cases, including the one I’m discussing here: connected private college education.

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From this analysis, the team determined that there is $14.4 trillion of Value at Stake in the Internet of Everything Economy over the next decade. The five main drivers of this Value at Stake are:
1. Lower costs from improved asset utilization ($2.5 trillion)
2. Greater efficiencies from improved employee productivity ($2.5 trillion)
3. Less waste from supply-chain and logistics efficiencies ($2.7 trillion)
4. Greater lifetime customer value from improved customer experiences ($3.7 trillion)
5. Increased return on investment (ROI) and new revenue from faster innovation ($3.0 trillion)

So, how much of this value comes from improved education? Read More »

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