The New “Connected” Economy: Add Cisco Analytics for Value Creation
I often blog about the new “connected” economy created by the digital transformation of businesses of all sizes. And while the technology story is exciting, just as thrilling is the opportunity for new or improved businesses to grow out of this transition. Digital transformation isn’t simply about connecting the billions of dots of data in a hyper-distributed world of both things and people; it’s about finding meaning in the connections.
With this year’s Cisco Partner Summit kicking off next week, I’m reminded of the vital role Partners play in turning these connections into compelling insights. Historically, organizations operated using only structured data methodically gathered and maintained within their own data centers. Now they are deluged with data from everywhere — both structured and unstructured – and from any device or sensor and at any time. Now, with the move toward digital business transformation, amazing opportunities exist for businesses to act on information analyzed in real time at the edge of network, create richer user experiences and automate processes in unique new ways. It’s also an unprecedented economic opportunity for our partners who can help them achieve these goals.
Analytics and Automation Add New Value
To take advantage of these opportunities, companies are undertaking new IT initiatives that remove complexity, while making their technology environments more agile and secure. In doing so, they are blurring the lines between their own organizations and those with which they do business. New automated solutions, such as the Cisco Automation and Integration Platform, are enabling workflows to operate quickly and seamlessly across company boundaries. Using APIs, both simple and complex IT services can be automated by creating, provisioning and updating multiple service components, whether business, application or infrastructure. Real-time collaboration and response is becoming the norm.
Another example in the new value chain of the connected economy is analytics. Analytic solutions are forecast to drive $7.3 trillion of the estimated market growth of the Internet of Things (IoT) to $19 trillion within less than ten years. Cisco Partners are positioned on the front lines of this technology revolution to help enterprises define the new digital battlefield, shape their response and assist them in changing, adapting and transforming their business models. In doing so, Partners stand to also profitably re-shape their own practices.
In fact, Gartner research tells us that enterprise big data initiatives are twenty times larger in scope than software alone, while the premium for add-on services is 20-30% higher. The other piece of good news? Analytics initiatives are typically “greenfield” sales opportunities that can open up Partner conversations with customers’ line of business managers, analytics gurus and data scientists. Plus, big data clusters are growing to include hundreds and thousands of nodes demanding rich server configurations that will generate recurring revenue streams.
Vertical Industries: Upside Potential for Digital Initiatives
As Kevin Bandy, Cisco Chief Digital Officer (CDO), observed in his recent blog, in order for enterprises to build a digitization roadmap, it’s important to have a clear sense of the potential value of specific digital investments.
He then went on to describe that Cisco recently conducted the market’s most comprehensive economic analysis to calculate the Digital Value at Stake for private sector organizations across 16 industries. The analysis is rooted in customer engagements and evaluation of 350 private sector digital use cases.
“Digital Value at Stake” is based on two components: 1) entirely new sources of value emanating from digital investments and innovations, and 2) value shifting among companies and industries based on their ability (or inability) to harness digital capabilities (in essence, value moving from “losers” to “winners”).
Cisco’s analysis shows that six industries — manufacturing, financial services, retail, service provider, healthcare, and oil and gas — will account for 71 percent of the total private sector Digital Value at Stake for the next decade (2015-2024). Yet, none of these six realized more than 29% of its potential Digital Value at Stake in 2015. If you’re a Cisco Partner working with any of these industries, the research gives you a perfect conversation starter with your customers, starting with Cisco analytics.
Cisco Analytics: Digital Discussion Starters for Enterprise Transformation
One place to begin customer discussions regarding digital transformation is Cisco Connected Analytics for Network Deployment (CAND). CAND is software-as-a-service that provides a data-focused, algorithmic approach to network deployment and optimization activities. With CAND, an IT organization can improve readiness for network-focused business initiatives like big data, video, or private cloud.
The software analyzes Cisco Technical Assistance Center (TAC) or customer-managed support case data and Cisco network deployment data. CAND helps customers gain proactive control of network risk and disruptions, instead of reacting to issues. At the outset of a major business initiative such as one involving big data or other digital transformation, it helps ensure network quality, performance and availability. CAND is a go-to solution for improving both business and network operations.
Similarly, Cisco Connected Streaming Analytics (CSA) changes the conversation when it comes to real-time understanding of massive amounts of data created minute-by-minute at high speed across widely distributed sources of structured and unstructured data. The enterprise challenge is detecting valuable insights in the data and acting upon them instantly. CSA makes it possible. Business use cases can include real-time, context-driven sales promotions, root-cause understanding and fault prediction for network management and security fraud detection. Using the CSA software framework provides the facility for these and almost any other use case imaginable.
There are three major ways Partners can take advantage of these Cisco analytics solutions and others in expanding their market opportunities:
- Enhance their current practices with software capabilities
- Create value-added services around data-driven solutions
- Contribute consulting capabilities and services to customer data initiatives
How can Partners move further up the value creation chain in the new connected economy? Explore Cisco Analytics and Automation software on Cisco Partner Central. Initiate conversations with your customers about data and analytics to determine the best place to begin building out your practice in new directions. Work with your Cisco partner representative to accelerate your understanding. Only by doing this together can we help your customers reach their full potential for digital business transformation.
You’re Invited! Cisco Partner Summit
Should you be attending next week’s Cisco Partner Summit in San Diego, I hope you’ll join me at a reception I’m hosting on Monday evening, February 29, at which you can see our latest analytics and automation software demonstrations. Just drop us an email, and I’ll make sure your name is added to the invitation list.
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