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New Study Reveals How the Internet of Everything (#IoE) Could be The Key to Economic Growth

One noted economist believes “the real impact of the electronic revolutions has already occurred.”  We could not disagree more. With over 2B more people and 37B more things planning to join the Internet by 2020, our economic analysis identifies a potential “value at stake” of $14.4 trillion. This number equates to the impact of increased connectedness that the Internet of Everything (IOE) will make possible for private-sector firms over the next decade.  What does that mean?  A potential 21% aggregate increase in profits for the global private sector between 2013 and 2022.

Every day Cisco works with customers to address their technology opportunities and challenges as they focus on driving growth, improving customer experiences and increasing their productivity.  But it’s not just the technology that is driving the benefit to their business – corresponding shifts in strategy around people and information management is driving the gap between the leaders and the followers. In 2013 alone, over $600B in profits are flowing to some of those leaders as they take advantage of the Internet of Everything  -- the intelligent connection of people, processes, data and things

It’s not just our technologies that help customers achieve amazing things in their organization,. With our role as architects for our customers IT strategy, we also have a window on how they use everyone else’s technology.  We see, first hand, what happens when they connect the unconnected  – both people and things – and how these connections generate more data and require new processes as “everything” comes online. We wanted to better understand how the Internet of Everything can help businesses create economic value and how to design a roadmap to take advantage of the increased connectedness.

Today, we’re releasing the results of the Cisco IoE Value Index that begins to tackle these questions.  This index is a global survey of 7,500 business and IT decision makers providing a sense of how well businesses worldwide are doing in their efforts to realize their share of the value at stake in 2013. We surveyed executives from large and midsize firms across nine different industries in 12 of the world’s largest economies, which together represent approximately 70% of global GDP.

How much value are we talking about here? From a business perspective, the results of the IoE Value Index tell us that private firms will capture a staggering $613 billion in profits in 2013.  How?  By taking advantage of Internet of Everything to increase efficiencies and create better customer experiences.  Some highlights to note:

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The Possibilities of The Internet of Everything Economy #IoE

The only constant is change – and companies that do not change get left behind. My perspective is that it’s best to accept change as inevitable – to embrace it, lead it, and use it to shape desired outcomes. As I discussed previously, many of today’s leading trends –what I call market transitions – are combining into the Internet of Everything, which we define as the intelligent connection of people, processes, data, and things.

Disruptive innovation is fueling the emergence of the Internet of Everything. I attended the World Economic Forum recently and much of the discussion in Davos focused on the state of innovation. At Cisco, we believe the world has never been more innovative, and this is reinforced in our ongoing discussions with many business and technology leaders.

In an effort to better understand the extent of the opportunity for our customers presented by increasing connectedness, Cisco has conducted analysis on the potential economic impact of the Internet of Everything, the findings of which we’re releasing today. Our analysis indicates that there is as much as $14.4 trillion of potential economic “value at stake” for global private-sector businesses over the next decade, as a result of the emergence of the Internet of Everything.

We define the potential value at stake to be a combination of net new economic value created as a result of the Internet of Everything, as well as value that will migrate from lagging companies and industries to those that take advantage of new innovations — minus the cost of implementation. Based on our analysis, the Internet of Everything has the potential to increase global corporate profits by approximately 21% in aggregate over the next 10 years.

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