If ever there was an industry and a time that epitomize “disruption,” it is the oil and gas industry today. Price declines of more than 50 percent since June 2014 have upended the sector, and dominate the agendas of industry executives. In fact, a new Cisco study identified “energy price volatility” as the external market force causing greatest concern for the industry today. The study, “A New Reality for Oil & Gas: Complex Market Dynamics Create Urgent Need for Digital Transformation,” shows an industry ripe for transformation by the Internet of Everything (IoE).
In the past, oil and gas (O&G) companies have attempted to address oil-price declines by resorting to short-term cost-cutting measures to see them through the slump. But this time is different. For one thing, it does not appear that prices will recover any time soon—if at all. Demand is down, and new production technologies are driving efficiencies that will increase production and keep prices low for the long term. This time, O&G firms will need to do more than cut costs – they’ll need to change their operating models through digital transformation.
For the study, we interviewed oil and gas executives, consultants, and analysts in 14 countries about the industry’s challenges, opportunities, and priorities. These experts identified intelligence from data as the key area needed to improve operational efficiency, and data analytics as the No. 1 driver of faster, better decision-making.
Additionally, the survey named faster problem resolution, better process control, and improved worker safety as the top three business benefits of IoE-powered technologies. The top three IoE-driven operational benefits were improved production efficiency, reduced downtime, and equipment performance optimization.
As an industry, oil and gas has been “digitized” for some time. True digital transformation, however, now requires adoption of the Internet of Everything — the networked connection of people, process, data, and things — throughout the value chain. Innovative firms are using today’s turbulent market landscape as an opportunity to grab competitive advantage by harnessing new IoE technologies. Read More »
Tags: analytics, CERAWeek, Cisco, Cisco Consulting Services, data, Digital transformation, GDP, Internet of Everything, IoE, oil and gas, oil price volatility, value at stake
In the Internet of Everything (IoE) economy, innovation is the name of the game.
IoE demands constant innovation and to keep pace companies must access creativity wherever it may arise. According to The Wall Street Journal, more than 34 percent of today’s workforce comes from outside our organization, and their fresh perspective can support innovation. Indeed, cross-pollination of industries is a key to innovation.
This scenario was illustrated in the below story shared by physicist David Matheson last week at the Frost & Sullivan’s GIL 2014: Silicon Valley conference, which I was honored to attend as a presenter.
Decades ago, a group of engineers were working late in the research lab run by their Silicon Valley employer when they noticed a cleaning man doodling his way through a dinner break. But these weren’t just ordinary doodles. The man had enormous artistic talent. Just the sort of talent the engineers — and the company — needed to depict their technology solutions on the printed page.
Excited at their discovery, the engineers rushed to their bosses the next day Read More »
Tags: Cisco, Cisco Consulting Services, employee productivity, Frost & Sullivan, GIL, innovation, Internet of Everything, internet of things, IoE, IoT, job creation, value at stake
The Internet of Things continues to add new things daily to a growing list of already connected things; and these “things” have the opportunity to completely change our world. Capabilities like context awareness, increased processing power and energy independence have all been made possible as more people and new types of information are connected. And each day, society gains and learns from these innovations, all a part of the Internet of Everything – a network of networks where billions of connections create unprecedented opportunities as well as new risks.
When it comes to the actual physical devices that are moving the Internet of Everything forward, most think of traditional conduits such as laptops, phones and “wearables.” But, the connections that are creating the Internet of Everything come in forms many may not even consider, from toothbrushes, trashcans, power tools – even entire cities. And while all of these connections amaze with their technology, the value that they create is the real story, for what it means now and for the future of our society.
Much is at stake when discussing the value that the Internet of Things holds. At this year’s CES Conference, it was estimated that the Internet of Things would become a $19 trillion market over the next several years. The number of mobile-connected devices will exceed the world’s population by the end of this year and by 2018, 96 percent of mobile data traffic will originate from these smart devices. The amount of these connections, coupled with reduced technology costs, has created possibilities for the future of the Internet of Things that are seemingly limitless:
- Sensors all along the food supply chain, together with Big Data analytics and the intelligence of the cloud, will help us optimize the delivery of food from “farm to fork.” Sensors in the field will be combined with weather forecasts and other data to trigger irrigation and harvest times for each crop. And sensors on the food itself will alert merchants and consumers about when the “sell by” and “use by” dates are approaching to prevent spoilage. All of this will significantly reduce food waste—which today amounts to about one-third of total world food production.
- A blue-tooth connected toothbrush that connects to a smartphone app is just one of the many devices on the market that promote a better quality of life through improved healthcare. Wearable technology like fitness trackers, health monitors, insulin pumps and even “smart” clothing can measure consumed calories, heart rates, the amount of medicine in a person’s body and transmit that data to patients and medical professionals in real-time. And 71% of Americans claim these types of devices have improved their overall health.
- The city of the future will be “smarter” as sensors turn street lights, waste receptacles and cameras into tools that will help municipalities operate on more efficient levels. Wim Elfrink outlined how Barcelona has used a network of sensors that transmit real-time data on temperature, noise and other conditions in one of the city’s most popular areas. Kansas City, Missouri has used the network of street lighting and interactive digital kiosks in conjunction with a $114 million streetcar project to promote the city to both residents, and companies potentially looking to relocate their operations.
Serving as a link to the Internet of Everything, all of the connected things that make up the fabric of the Internet of Things are leading to new economic opportunities, increased personalized connections and more importantly, positive intersections of technology and the human experience. Far beyond the monetary values that it can present to society, the Internet of Things is powerfully changing and improving quality of life for people across the globe, with billions of opportunities awaiting us all.
What impact has the Internet of Everything had on your life, professionally or personally? Thinking futuristically, in what ways can you dream of that use the Internet of Things and the Internet of Everything to change our world?
We want to know what examples of the Internet of Everything you see in your own City of Tomorrow – your neighborhood! Join the conversation online by tagging your photo and video examples with #InternetofEverything and #CityofTomorrow. How is the Internet of Everything changing your city?
Review the Cisco Visual Networking Index: Global Data Traffic Forecast Update, 2013
Tags: Cisco, cloud, Erica Schroeder, Internet of Everything, internet of things, IoE, IoT, mobility, Smart Devices, value at stake, wearable technology
This week I’m excited to participate in an event we are organizing in Chicago, home of the 2014 Internet of Things World Forum. We’re meeting with some of our partners and customers as we make a few joint announcements – including a new IoE Innovation Center in Barcelona, and showcasing some new solutions built on our platform by some of our partners. Additionally, I’m getting a preview of some of the amazing smart & connected deployments in Chicago – a preview for the IoT World Forum.
I am writing this blog as I gear up to lead Cisco’s Internet of Things (IoT) Systems & Software Group. Over the last few weeks I’ve spent time getting to know the group and have been struck by the tremendous energy and focus on customers and partners the team has. I’m also excited about how dynamic the Internet of Things space is.
While we’ve calculated the total economic value at stake for Internet of Everything by 2020 – $19T – and the number of potential connected devices – 50B – these nearly unfathomable numbers may, honestly, not pan out exactly to the decimal. The Internet of Everything could be smaller or, more likely, much much larger – but the overall point is that more and more people, process, data, and things are connecting. Professor Michael Nelson of Georgetown University has said that “Trying to determine the market size for the Internet of Things is like trying to calculate the market for plastics, circa 1940.” At that time it would have been nearly unfathomable for the numbers of existing things – milk containers, furniture, industrial components – to be made into plastic. And just as plastics have pervaded every part of our lives and enabled new industries, the connections created by Internet of Everything will too. I think that’s a great way to think about the untapped potential of this market. Read More »
Tags: Internet of Everything, internet of things, IoT, operational technology, OT, service providers, value at stake
On a typical day, we hold in our hands a portal to our civilization’s entire trove of information and entertainment — and a window into our finances, our health, and the lives of our friends. Not to mention, the ability to make a purchase anywhere and anytime the whim strikes us.
To say that our personal devices have become an integral part of our lives is a vast understatement. But get ready for an even bigger wave of change. Mobile is poised to become ever more ubiquitous. But the focus will be less on the device itself, and more on its role as a critical enabler in the connected world of the Internet of Everything (IoE).
Read More »
Tags: Big Data, brand loyalty, Cisco, Cisco Consulting Services, innovation, Internet of Everything, internet of things, IoE, IoE Value Index, IoT, retail, value at stake