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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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Virtual Work Works, But Don’t Confuse Technology with Change Management

I was in a brainstorm meeting about my team’s next-generation strategy last week, and we made a number of random connections that knitted together a pretty big idea — the kind of dot-connecting that only happens when people with different (and sometime conflicting) perspectives trust each other in the pursuit of an important goal.

Five of us worked on the idea, but only two of us were in the room physically together. Yes, I’ll say it out loud:  three people were working from home.

Much has been said and written recently about the value of working virtually, and I don’t think you can sub-divide mobility into “at home” and “on the road.” Social technologies, video and mobile platforms make it easy to work from just about anywhere.

But as leaders, we have to resist the temptation to confuse technology with change management — despite our love affair with technology. Any time technology brings a sea-change transformation to the way humans do stuff, especially work stuff, we can’t forget that people work in organizations — and organizations are an amalgam of culture, processes and technology.

All of Cisco’s experience has taught us that Read More »

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