This blog was co-authored by Dave Evans and Joseph Bradley, Cisco Internet Business Solutions Group (IBSG).
To receive the most value from the Internet of Everything (IoE), business leaders should begin transforming their organizations based on key learnings from use cases that show how IoE works in the real world. Cisco IBSG’s Economics practice recently developed 50 private-sector use cases to determine the Value at Stake in the new IoE Economy. It determined that $14.4 trillion of value (net profit) will be created or will migrate among companies and industries based on their ability to harness IoE.
This blog will provide both near-term and more futuristic examples of IoE in healthcare and marketing/advertising to help you better understand the possibilities of IoE in different time frames. We provide both a futuristic view (Dave) and a near-term perspective (Joseph).
1. Connected marketing and advertising: $1.95 trillion of Value at Stake
Near term (now to 2015)
Today, it is very difficult to create and implement cohesive marketing and advertising strategies across numerous and disparate channels (TV, radio, Internet, point of sale). IoE will enable companies to have a complete view of their customers (behaviors, preferences, demographic profile) and deliver individually targeted messages and offers to them on any device, at the time and location where they will have the most beneficial impact. Within this new paradigm, companies can react more quickly by assessing and reacting to their markets in real time; increase profits by offering optimal pricing based on real-time supply and demand information; and grow revenues by bundling their offerings with other products and services based on a holistic assessment of customers’ wants and needs.
In addition, IoE gives retailers the ability to transform data into useful information as close to the customer as possible. This capability is key to creating value in the near term. For example, a store associate could be alerted when a loyal customer enters the store. Information about the customer’s recent purchases and preferences could instantly be presented to the associate on a mobile device. Using this information, the associate could then approach the customer, direct him or her to specific items, and improve the overall shopping experience.
To implement these use cases, leaders should focus on IoE initiatives that use Big Data and cloud computing. In addition, every customer-facing department, including marketing, sales, service, and support, must be able to work in sync to meet the rapidly changing customer demands of the IoE Economy.
Future (5 to 10 years from now)
The “Holy Grail” in the world of marketing and advertising is connecting with current and potential customers at the right time and place, with the right personalized message, on the right device. As IoE connects more people, data, and things, and as technologies such as smart surfaces and augmented-reality devices advance, companies will be able to come closer than ever before to achieving nirvana.
By now, everyone is probably familiar with Google Glass, Google’s wearable computer that includes a head-mounted display attached to fashionable (according to some) eyeglasses. By connecting to the Internet via a wireless radio in the earpiece, Google Glass augments what users see through their devices. Google is a smart company. It won’t be long before image-recognition software, combined with Google’s search algorithms, allows companies to sponsor ads triggered by the everyday physical objects (cars, furniture, and so forth) that people see through Google Glass.
2. Connected healthcare and patient monitoring: $106 billion of Value at Stake
Near term (now to 2015)
Many of the inefficiencies in healthcare today are the result of siloed sources of knowledge and information — it is difficult to access all of the relevant knowledge available at the point of care. In addition, many measurements and tests are administered manually. The greater number of sensors and connections in IoE will allow people to avoid or have shorter hospital stays due to smarter home-monitoring systems and improved care from standardized treatments that conform to all known best practices. In addition, medical records can be collected and recorded in a systematic and standardized manner, reducing the potential for redundant tests and ensuring that all of the pertinent information necessary to make a medical decision is available to the patient and his or her caregivers.
Connected healthcare and patient monitoring involve a fundamental shift in how healthcare providers deliver their services. Billing and insurance processes will also have to change for this Value at Stake to come to fruition. Given these changes, business leaders will need to focus on both change management and technology-driven initiatives that involve new medical devices, home IT connections, and security solutions, , while addressing patients’ privacy concerns.
Future (5 to 10 years from now)
IoE has the potential to improve our lives by enabling healthcare to become more of an ongoing process in our daily lives rather than a series of static events when we need care. For example, imagine receiving a mini-checkup from your bathroom mirror every time you brush your teeth. Virtual reality, smart surfaces, cloud computing, gesture recognition, and new sensing advances like Eulerian Video Magnification and the Radiate shirt (changes color according to your body heat) can literally measure vital signs such as your heartbeat and temperature. This and other information about your health from your personal and secure data store could then be sent over IoE to your personal physician’s mobile device. Using resources such as advanced analytics and IBM’s Watson in the cloud, your doctor could be alerted to, and follow up on, any issues that need to be addressed. Additionally, clinical trials could be accomplished with enormous numbers of patients as easily as any database project is done today. This will improve trial outcomes, leading to improved best practices and more effective medical drugs, devices, treatments, and therapies.
In reality, the use cases for IoE are nearly limitless. By taking time to understand how IoE can impact your industry and business, you can begin preparing for the IoE Economy to come. By doing so, you will help ensure that your company is on the winning side of the $14.4 trillion Value at Stake in the next decade.
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Agreed with a few qualifications. For near term:
* creating cohesive marketing and advertising strategies is absolutely possible and even more possible with IoE as long as you have a mechanism to centrally coordinate your STP and PPPP messages as well as having the nimbleness of integrating the immediate changes being highlighted by your IoE tools
* near term success will require a few technological implements to get adoption by the critical entity in the comments above: the end consumer — many more ease of use mechanisms are required so the new user will adopt rather than opt out. How? 1. Make it easier to opt out (build trust); make it simpler to opt in (not every minute piece of data — build trust and gather that data later); make it much easier to use the technology — how are you going to simply configure my smartphone so that your tag can recognize it is me when i walk into your store?
Absolutely! Near term — well this is now. #IBD Apr.15.13 edition notes a “Faster bird flu response”. “Process cuts reaction time to outbreaks by weeks.” How? A US “gov’t-backed research group…started tests after making a copy of the (new H7N9) virus (that killed 10 in China) using genetic code posted by Chinese health officials to the internet.” International cooperation for the betterment of mankind — what better use for IOE?
Long term? How about a genetic analyzer in your home to send an analyzed blood sample to your doctor or a medical company to get an analysis of what you may have (virus, bacterial, blood imbalance, etc.) and what your should do? Maybe handheld units you can use while travelling or larger fixed units in travel destinations? Maybe they can dispense simple medicinals?
IoE certainly helps many people help many many more people. Sounds like a recipe for immeasurable success!!
And thus, another avenue of potential health & life insurance rejection or refusal to pay is born….and so it goes…
With all this technology out their, where do you start to build the traction to the trillion dollar market? How do you come to a business model for this market that non technical consumers can understand? Where do you start? Why did Cisco get away form the networking home environment market? Doesn’t this market show continued growth and traction for non technical consumers?
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Sounds expensive. I wonder if The Pentagon is interested.
Ab Fab Cisco! Where do I sign up to be part of this amazing team of innovators? The future is now!
Very interesting, I will be keeping track of what your doing. This does interest me. Thank you for putting this on Facebook.
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Wow… this is the future of my children?
Buy, buy, buy?
What other sorts applications could we use this technology for
We need to encourage the youth to be less selfish, more respectful, and greatful
ThankYou so much for putting this on Facebook. Absolutely, very Interested. We need to move forward with this for the sake of our children’s future.
How can I retrieve my Cisco password.
Dave, as always a very thought provoking piece. It will be interesting to see what qualifies from Cisco as a true IoE offerings as opposed to evolutionary offerings based upon the current portfolio.
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