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Creating and Capturing Value To Thrive in a Digital World

By 2020, 75% of business will become digital in some way by deploying solutions that leverage the intersection of people, process, data, and things—the very definition of the Internet of Everything (IoE). For example, IoE will drive an improvement of earnings before taxes and interest (EBIT) of 15.6% in retail, 14.5% in financial services, and 12.8% in manufacturing.

Connected Devices and Sensors Everywhere

The rapid adoption of IoE and the Internet of Things (IoT) has driven the number of connected devices into the billions worldwide. Cisco’s own estimate shows there are 25 billion connected devices today, and will be 50 billion by 2020.

While sheer the number of devices grabs the headlines, there is an even more powerful force at work that will add to the tremendous disruption CIOs and senior IT executives are experiencing across all industries. (For more about this disruption, please refer to my blog titled, The Digital Vortex: Relentless, Disruptive, Chaotic — and Empowering.)

The enduring impact of Moore’s Law and Metcalfe’s Law combined with unprecedented innovation is resulting in sensors that are changing the world to become hyper-aware, hyper-predictive, and hyper-agile. Cisco estimates that 54 billion sensors will be shipped this year.

Leading companies are using these new capabilities to do things like monitor and expedite the time it takes prepare planes for boarding, reduce customer wait times by predicting 40 minutes in advance when lines will become too long, increase factory production rates by ensuring workers always have the right tools at hand, and anticipate structural failures to save lives and reduce costs.

New Business Models and Value Creation

In this new environment, three digital business models are pointing the way forward: 1) Frictionless Life, 2) Hyper-Relevance, and 3) Community. Each model delivers a different type of value.

JBGartnerITExpoBlogPic Read More »

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How IoE Helps the Navy Connect the Open Ocean

The Internet of Everything will have far-reaching effects in a multitude of industries over the next few years. There will be an estimated 50 billion devices and objects connected to the internet by 2020. The movement toward an increasingly connected world is already transforming operations in the retail, finance and healthcare industries. The government is also seeking ways to harness the potential benefits of IoE, and one sector that anticipates gaining significant operational benefits from IoE is defense.

My colleague Cindy DeCarlo gave an excellent overview of how IoE is facilitating the vision of net-centric warfare. Mike Hodge further highlighted this transformation, emphasizing the benefits IoE can bring specifically to new smart and connected bases around the world. Today, I want to dig a little deeper and call attention to one branch of the military that is taking advantage of IoE to operate more efficiently and increase operational success in multiple areas: the Navy.

IoE enables the Navy to use technology to increase automation, improve multi-tasking, reduce workload and enhance effectiveness in four main areas: Read More »

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The Internet of Food – Improving Lives

A sense of great pride came over me as I entered the Expo in Milan­ to attend the Cisco Internet of Food international press event. This event is where Cisco brings food and digital technologies together in a world of apps, services and technologies that are changing the way food is produced, distributed, consumed and depicted. My home town hosted this significant conference that focused on two of the most important factors that make our lives better: food and the Internet. What better place than Italy? This country is the world’s food voilà and has one of the highest number of mobile phones and Facebook users – to talk about building bridges between technology and food.

While there, I met with a group of international press and together with a few colleagues and industry luminaries, we discussed the Internet of Food, a natural offshoot of the Internet of Everything.

Cisco and THNK.ORG  have been working for the last 12 months to reimagine how the Internet of Everything changes the way we grow, manufacture, distribute and consume our food. Read More »

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Manage Assets on the Move – Even At Sea

The transition to the Internet of Everything represents one of the greatest disruptions the world has ever seen. It is expected to be the one of the most influential catalysts for industrial change. We are seeing entire industries evolve, mature ecosystems break apart, and competition rising to entirely new dimensions.

These exciting changes are just the beginning. For Cisco, IoE is a new way of doing business, a new way of reaching customers and a new way of using technology to build value. For any industry going through the process of digitization, the ability to successfully navigate our IoE-enabled world will ultimately determine its future.

The story “Sea Change” is a great example of what Cisco is doing differently to help our customers control their destinies. We identified a real and significant problem. Then we solved it with an end-to-end solution to deliver a business outcome that will have a lasting effect on our customer’s core business value.

In the “Sea Change” yacht-racing story, Mobile Asset Management is illustrated through a vivid maritime example. A team of Cisco employees visited the customer site to install and connect onboard sensors and begin extracting data from the yacht. We created a dashboard so the crew could see the data visually.  The sailing team utilized analytics to optimize the ship’s equipment and shave seconds off their race time, which is their key measure of success.

To connect sensors to onboard computers at sea, we used technologies and products from the recently launched Cisco Internet of Things (IoT) System. This broad portfolio enables our customers to monitor, manage, and control previously unconnected devices.

All of this was done while securing the data communications path and providing access controls. Yeah, it was a pretty cool venue, but it was also rewarding and provided valuable insight that we have since applied to other mobile segments. In fact, we are using the same solutions approach, and many of the same solutions elements, to deliver new value for utility trucks, trains, buses, logistics vehicles and first responders today.

I’m sure each of you can think of ways that information from your mobile assets could help you optimize your operations. Do you have other ideas on how mobile assets can be used to achieve remarkable outcomes for your customers? Comment and share below.

Additional resources:

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Using the Internet of Things (IoT) to Digitize Your Factory

We’ve been hearing a lot about the Internet of Things or IoT. How it’s going to accelerate efficiencies. Grow profits. Disrupt industries. So it’s time to consider if IoT is real & if you should do something about it right now.

As is often the case, revisiting history can help us better understand what the future holds for us. Imagine it’s 1995, and you’re just starting to hear about this thing called the World Wide Web. How’s it’s going to use the Internet to disrupt commerce/communications and how it’s going to create a digital divide of haves and have-nots? At that time, companies like Compaq, Kodak and Sears were in the Fortune 100 and mobile phones were predominately used for phone calls.

Since then, startups like Google and Amazon have disrupted computing, shopping and entertainment, as well as mobile-web applications that dominate how we live our lives. The companies that survive are the ones that have deployed e-commerce platforms to engage with customers and suppliers, and have strategies to integrate the Web into their business.

Now fast-forward to 2015 and the projected $3.9 Trillion Value at stake for IoT in Manufacturing. Which begs the question: How do we make IoT work for us? And how can it drive change in the various manufacturing verticals?

IoT@ Work in Food Manufacturing

SugarCreek offers an excellent case study for how IoT can be utilized to optimize production, improving factory capabilities and enhancing analytics specifically for consumer packaged goods (CPG) or food & beverage (F&B) manufacturing. By way of background, SugarCreek is the largest independent processor of bacon, meatballs, sausage patties and chicken for both food service and retail. They are about to finish up the refurbishing of a brownfield plant, to create a 418,000 square foot Factory of the Future. Take a look at this video to see an overview of Sugar Creek’s business:

Actually, SugarCreek is ahead of the trend that Food Manufacturing magazine describes:

“IoT is a logical extension of the push to create more intelligent manufacturing processes. By embedding interactive technology in key machines, food manufacturers gain the ability to automate the optimization of equipment in real time, dramatically reducing or eliminating the risk of equipment failures capable of shutting down the entire process”.

Ed Rodden, the CIO of SugarCreek & I will be co-presenting the SugarCreek case study at the upcoming Smart Industry Conference happening from October 5-7 in Chicago. Ed will describe the decision process for the Industrial Internet of Things (IIoT)smart industry 2015 platforms in their new manufacturing plant, including insight into primary use cases, converged factory technologies and new architectures.

I will describe the IIoT process that SugarCreek went through. How we considered each key area of factory operations from product enhancements to how to better enable their workforce. We held workshops with key plant & IT stakeholders to discuss business outcome for each area that included:

  • Reducing expenses by optimizing plant operations
  • Increasing revenues by improving plant capabilities
  • Contributing to a safer & cleaner environment

In order to drill into the technology required in each area, we considered specific pain points & use cases such as how they could strengthen Quality Control through the utilization of technology to identify & eliminate packing material that may be mixed in with meats or how they can increase plant capabilities by including more sensors into their production process. Solving each pain point required a combination of devices, networks & applications to provide a complete technology platform. We will go thru how we conducted a high level return on Investment (RoI) analyses to help the company to quantify the costs & benefits of each platform & prioritize the platforms that would provide the greatest bang for the buck. Find out more details by attending our session.

We hope you can join us for this conference and in particular, this session on Industrial IoT. See you in Chicago!

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