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Service-Oriented Everything and Digitization of Your Business

The next big phase of the Internet is the race toward digitization, which brings together people, processes, data, and things in new, more productive ways. In this emerging hyper-distributed digital world, connectivity is even more vital than ever before. Companies that are going to thrive and realize new opportunities will be the ones that adopt digital strategies to bring new services to market faster, securely connect people, things, and stitch hyper-distributed processes across internal and external systems.

Cisco’s research shows that 75% of organizations need help in clearly defining the digitization opportunity that exists for each of them. This research is consistent with what I hear from customers across many industries that are challenged with integrating systems and processes rapidly for:

  • Becoming agile as a business, adapting to changes with speed
  • Engaging better with customers and leveraging partner ecosystems
  • Improving productivity to improve revenues and profits

Expose, Compose, and Govern Any Asset

If every enterprise asset ranging from legacy applications, cloud services, data, partner services/apps, machines or things, to network/compute/storage infrastructure is viewed as a service, we need the following three capabilities to make those assets available within and across the enterprise:

All this sounds good on paper, but difficult to realize in practice. This requires organizations to think about their assets differently – both tangible assets such as people, machines, buildings etc. and intangible assets such as processes and data. All organizational assets need to be treated as services that are consumable by external or internal consumers; treated as services that are produced by various producers within the enterprise in a federated fashion.

  • Expose assets as services provide a catalog of assets exposed securely as apps, services, or APIs via marketplace catalogs and web or mobile portals
  • Compose new services via mixing services – create new services, apps, and outcomes by connecting data, cloud, and enterprise systems
  • Govern the services – develop policy-based access and control via API access control, fully federated single sign on and ID management.

These three capabilities will enable organizations to treat any asset as a programmable service that can be used by various consumers; to mix it with other services as needed to make new services, and to govern these services with the right authentication and authorization. This new approach to managing hyper-distributed assets provides your business with a framework that lets you automate and integrate your unconnected processes with complete security, governance, and visibility at every stage, allowing us to effectively collaborate with your customers and partners and improve operational efficiencies.

To help with this transformation, today I’m excited to introduce the Cisco Automation and Integration Platform that allows organizations to quickly Expose, Compose, and Govern (“E-C-G”) every enterprise asset as a service. The platform enables customers to act on insights through process automation within and outside of the enterprise, and across business and IT. It offers lifecycle management of digital assets across design, provisioning, publishing, and support. With the Cisco Automation and Integration Platform, our customers will be able to accelerate digital transformation initiatives by streamlining processes and simplifying collaboration amongst customers, partners, and internal stakeholders, as shown below.

AIP graphic

Banking on Adaptive IT for Digitization

Organizations are putting pressure on IT to deliver solutions to business challenges that create value and leverage technology as a real differentiator for the organization. It’s a tall order under any circumstances, but especially in an age of rapid technology changes and high customer expectations. Existing solutions, as many organizations have discovered, are not up to the task.

For example: a large bank seeking to deliver on-demand IT services struggled with pressure from the business to deliver new services.

Like many enterprises, the bank was burdened with legacy IT architecture and manual processes that hindered service provisioning and resulted in average service fulfillment times of four to six weeks. To meet the business need to innovate and deliver new mobile and digital services, the IT organization needed to find a way to quickly use and reuse digital assets with speed and simplicity, while reducing process complexity and lowering delivery costs.

The bank leveraged the Cisco Automation and Integration Platform to automate organization, delivery, and consumption of information, creating an internal IT services marketplace portal that automated the workflow and delivery of development resources. The bank experienced rapid development, expanded offerings, and streamlined the procurement of IT services.

The bank cut their development time of new business applications from 180 days to 2 days, while reducing their costs by 30 percent. They transformed their IT delivery model to one of on-demand self-service for their employees and became a Fast IT organization.

The Mantra for Digitization: Expose…Compose…Govern

The Cisco Automation and Integration Platform helps you digitize your business processes. It gives you the business agility to re-imagine existing business processes and create new business processes that better serve your business needs. The platform automates interactions at scale and captures key data for operational intelligence and service utilization. Tying business interactions to trigger actions within the IT infrastructure paves the way for business SLAs to be provided by an intelligent infrastructure, such as adapting network bandwidth for business needs. At Cisco, we are well on our way to the next stage of the Internet – to enable industrial automation at scale.

In future blogs, several experts from Cisco and I will showcase examples of customers who have achieved digital transformation in many ways: through business process automation, supplier collaboration, IoT integration and network automation. Meanwhile, I’m interested to hear about your challenges and opportunities to achieve digital transformation through process automation. Let me know what you are experiencing in this race to digitization.

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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.

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IoE is the Path to Gartner’s ‘All Things Digital’

This week, I had the opportunity to focus on digital business as an attendee and presenter at Gartner’s ITxpo in Orlando, Fla. It was a sold out crowd with 8,500 attendees and approximately 2,700 CIOs. And one insight that seemed to resonate with the audience was Gartner’s belief that by 2018, digital business will require 50 percent fewer business process workers and 500 percent more key digital business jobs.

At the ITxpo discussing how the Internet of Everything helps enable all things digital

At the ITxpo discussing how the Internet of Everything enables the transition to Gartner’s  All Things Digital

We already live in a world that is rapidly connecting people, process, data, and things in ways that were unimaginable just a few years ago. I believe that IoE is a key driver of this transition and a fundamental stepping stone to making “All Things Digital.”

Gartner defines All Things Digital as “blurring the physical and digital worlds to create new business designs.” Interestingly, Gartner focuses on people, business, and things, but omits process. Gartner’s view is that process will happen dynamically and be measured in not months or weeks, but nanoseconds. While this is a true statement, it reflects the end goal. The key question is, how does an enterprise become digitally enabled?

A first step in transitioning to All Things Digital, is embracing IoE by lighting up “dark assets.” A dark asset is something that is currently not connected to the Internet. A dark asset in itself however, does not create value.  ln All Things Digital, connected devices begin to talk with other connected devices. These devices interact with one another dynamically, which in turn creates processes in just nanoseconds. In this environment, IoE allows you to understand what process to focus on and which assets to connect. In other words, IoE is the pathway to Gartner’s All Things Digital.  The overarching goal is business outcomes. One retail example is connecting a parking lot to a retail store. In a recent trial, we found that data from parking lot sensors, when analyzed correctly, can predict when checkouts will get busy, so that more cashiers can be deployed. There are many other dark assets in a retail environment that have the potential to increase revenue, lower costs, and grow margins once they are lit up.

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What’s New in Cisco Domain Ten Framework 2.0

 Earlier this week, we announced the Cisco Domain Ten framework 2.0, enhanced by great input from customers, partners, and Cisco’s well-earned experience of strategizing and executing IT transformation.

The enhanced Cisco Domain Ten framework helps customers drive better strategic decisions, providing greater focus on business outcomes, providing deeper analysis of hybrid cloud implications, and extending the framework beyond data center and cloud to include all IT transformation initiatives.

You may have read Stephen Speirs earlier blogs about Cisco Domain Ten for cloud transformation. Today, let’s look at key changes in the Cisco Domain Ten framework 2.0 from the original version. These changes have been adopted to enhance discussions on three themes:

  1. Highlight importance of public clouds as part of IT transformation and solutions using IaaS, PaaS, and SaaS within the data center and across the entire business.
  2. Addition of “Organization” in Domain 10 to bring together the business and technology focus for strategy discussions.
  3. Name changes for some domains to facilitate ease of alignment and discussion on overall IT transformation across multiple architectures and technology solutions such as ITaaS, collaboration, mobility, video, etc. for both enterprise and provider perspectives.

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A Few of my Favorite Things: Video and the Internet of Everything

Once again, the holiday season is upon us. It’s a time to reconnect with friends and family, share memories and relax.

Unfortunately, today’s busy world prevents many of us from physically being together during this special time of year. But these days, the Internet of Everything is starting to be able to bring more people, things and traditions together through immersive mobile video and telepresence experiences.

Video Drives Experiences

Gone are the days of trying to capture memories with old-school video cameras. New waves of cloud-based, mobile, and video applications and machine-to-machine connections are documenting our lives in cool new ways. These are much more useable and sharable, and fun. These applications and connections are also contributing to the explosion of mobile data traffic. In fact, because mobile video content has much higher bit rates than other mobile content types, mobile video will generate much of the mobile traffic growth through 2017, according to Cisco VNI.

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