The Internet of Everything (IoE) is not only disrupting traditional business models, it is also disrupting innovation itself.
While the focus at this week’s 2nd annual Internet of Things World Forum (IOTWF) here in Chicago is on capturing the accelerated opportunity of connected things, we believe there is even greater opportunity with the Internet of Everything: the networked connection of people, processes, data AND things. IoE is already transforming business outcomes, but in order to capture the full potential of its $19 trillion economic opportunity we will need to cultivate new skill sets and ways of thinking by both established organizations and 21st century entrepreneurs.
This, in turn, requires new types of collaborations and investment mechanisms among industry, government and academia to incubate innovative ideas and turn them into commercial, scalable solutions for the betterment of society.
The inter-connection among society, the economy and environment, enabled by Internet of Everything (IoE) technology, was a central theme at the recent M-Smart City Summit hosted by the City of Hamburg.
It is no coincidence that the Summit was incubated here and its public and private sector leaders advanced the overall theme of connecting the
unconnected. Collectively, Hamburg’s leadership is driving a visionary strategy to digitize the entire metropolitan region, virtually connecting government, port, business, citizenry, healthcare, academia, public safety and other key organizations.
After just a few years, historic Hamburg has burst into the 21st century as not only a modernized Smart City, but also as a Smart + Connected Community, or, as some call it, a futuristic Seatropolis, anchored by the economic powerhouse of Hamburg‘s port operations.
Essential Application Centric Infrastructure
Today, we are thrilled to release a new video starring Hamburg. In “Internet of Everything Transforms Hamburg into a Smart City,” we showcase how leaders started with an ICT master plan to incorporate a single platform for collaboration, that leverages essential Application Centric Infrastructure. This integrated network stretches across departments and organizations throughout the urban landscape, seamlessly connecting people, processes data and things — a single digital overlay to existing physical infrastructure.
Last month, Gartner published one of its well-known Hype Cycles, and a Forbes headline summed up a key assertion very well. “It’s Official: The Internet Of Things Takes Over Big Data As The Most Hyped Technology.”
This comes as no surprise to anyone engaged in this market phenomenon – the explosive growth of things connecting to the Internet. At Cisco, our engineers determine that about 13.5 billion things – everything from mobile devices and computers to sensors and machines — are connected today. By 2020, we forecast 50 billion such connections – a much faster adoption rate than electricity or telephony.
Web searches for IoT and media mentions of IoT each have tripled in the past couple of years alone. Our consulting services group confirms that global Internet Protocol (IP) traffic continues to accelerate exponentially, and the last two years have spawned new IoT-related consortia and standards bodies.
The hype clearly has accelerated. However, I passionately believe that in this case the hype is completely justified because it is underpinned by tangible hyper progress throughout all types of industries. Other markets in the past that have ranked high on the Hype Cycle have included ecommerce and wireless technologies, and nobody can argue the rocket success of markets engaged in online business portals, social media or mobile devices such as smart phones.
IoE Can Unleash $19 Trillion in Economic Value
IoT provides the foundation for an even greater – we think unprecedented – technology revolution that Cisco calls, the Internet of Everything (IoE). IoE includes the connection of things, people, data and processes, enabling the transformation of data into information, knowledge and wisdom. As a result, Cisco Consulting Services estimates that IoE can unleash $19 trillion of economic value worldwide over the next decade by generating new innovation, revenue streams, customer experiences and improving asset utilization, employee productivity as wel as sup0ply chain and logistics operations.
Seven years ago, many people (including my mother-in-law) thought I had made a career-ending decision to accept a high-risk assignment and relocate to India. My mission: build from the ground up Cisco’s second headquarters, a Globalization Centre East in Bangalore focused on innovation, talent and partner development that envisioned 10,000 employees in three years, including the top 10% of worldwide talent. My charter included developing a world-class technology campus that also served as a showcase for incubating and advancing Smart City services worldwide, and to become the most relevant ICT company in India.
Was it the right decision?
Although half a world away from Cisco’s corporate headquarters in the Silicon Valley, I thought the new job was still full of great promise. India was and still is the world’s largest democracy, had a growing talent pool, a zest for innovation, a co-operative government, aspirational middle class and a potentially huge economy purring along at 8% annual growth.
In four years, we partnered with national and local governments as well as an ecosystem of commercial businesses to architect and develop a fully networked campus.The Smart + Connected Community inBangalore integrated building systems with IT systems and applications onto one IP network, enveloped by artfully designed buildings and collaborative work spaces.
Today, the 1-million-square-foot Globalization Centre East campus employs more than 11,000 people, houses Cisco’s Research and Development, IT and customer support teams with the best talent in industry. The campus also meets my original charter as the incubator for validating our industry-leading Smart + Connected Communities, especially Smart Cities, which today has projects on nearly every continent worldwide, encompassing more than 90 engagements.
All that has been extremely rewarding to see, but was it the right decision?
We achieved every critical objective except one: growing ICT technology throughout India itself. In my four years of living in India and after a number of subsequent trips revisiting there, I now realize that the promise and opportunity of India can be unpredictable. After several years of nearly double digit growth, India’s economy spiraled down, experienced high inflation, a weakening rupee, allegations of government corruption and financial policy decisions that spooked the international investment community.
As cities and communities prepare for the future and the Internet of Everything, they must confront a tsunami of challenges that can overwhelm how people live, work, play and learn. More than half the world now lives in cities for the first time, and the influx is growing faster than many cities can accommodate.
Today, about 500 million urban dwellers live in poverty, without access to healthcare or education. The world population will swell about 50% to more than 9 billion in the next few decades, placing huge strains on energy and food resources, jobs, transportation and more. The population in many mature cities continues to shrink while it’s booming in developing economies, triggering seismic demographic shifts worldwide.
21st Century is the Century of Urbanization
Indeed, the 21st century is shaping up to be the century of urbanization, and competition will be more between cities – not countries. That’s why it’s increasingly incumbent on all of us to foster more sustainable communities for our children – economically, socially and environmentally.
On June 18th, I had the privilege of hosting a media roundtable at the New Cities Summit held this year in Dallas, Texas, to share insights with urban officials and experts about innovative solutions they are implementing to address many of these challenges. They have turned to “connecting the unconnected” through the power of the Internet of Everything to deliver more effective urban services that are improving everything from education and public safety to parking and even more direct and democratic exchanges between government and citizens.
At Cisco, we have identified $3 trillion of economic value that can be realized by cities alone over the next decade by leveraging sensors, applications and data analytics linked to the Internet through a common platform.
Here are some highlights of the media roundtable:
Midland County, Texas, Library:
In Midland, Texas, officials struggled with declining visitors, especially young students, at the county library, composed of an old building where technology was an afterthought. By converging new digital and physical architectures at the outset, they completely rebuilt the structure into one that’s the envy of libraries everywhere. This resulted in a 1,000% increase in materials circulated and 100% increase in traffic, stated Jason Bates, Midland County, Texas, Library’s IT director; and John Trischitte, the director of Midland County, Texas, Public Libraries.
They shared about how this award-winning library enhanced patronage experience via Cisco’s fast and reliable network and solutions, such as upgrading their portal site, interactive digital signs and kiosks, online book searches, video stories, computer rooms, access controls and much more. Today, they are gratified to see more young readers spending more time there.