Maciej KranzVP, Strategic InnovationCisco

@maciejkranz

IoT Reality Check:B-minus

7.26.8 7.6World Population

Rapid Adoption rate of digital infrastructure:

5X faster than electricity and

telephony

50

2010 2015 20200

40

30

20

10

Bill

ions

of D

evic

es

Timeline

50“BillionSmart Objects”

18

12.5

Inflectionpoint

Internet of

Things

Growing faster than

smartphones!Driving the

digital revolution!

Wageringbillions!

Will make us super human!

2016

20BConnected

devices

2019

$53BWearable market

2020

$9TGlobal IoT

market

2020

50BConnected

devices

Growing faster than

smartphones!Driving the

digital revolution!

Wageringbillions!

Will make us super human!

2016

20BConnected

devices

2019

$53BWearable market

2020

$9TGlobal IoT

market

2020

50BConnected

devices

Internet of

Things

Improve Existing Processes

New ValueNew value propositions, new markets, new business models

5

Efficiency, productivity

Improve Existing Processes

New ValueNew value propositions, new markets, new business models

6

Efficiency, productivity

ConnectedOperations

RemoteOperations

PredictiveAnalytics

PreventiveMaintenance

ConnectedOperations

CASE STUDY

HARLEY-DAVIDSON

RemoteOperations

CASE STUDY

NIMBLE

PredictiveAnalytics

CASE STUDY

FANUC

PreventiveMaintenance

CASE STUDY

GOLDCORP

Improve Existing Processes

New ValueNew value propositions, new markets, new business models

16

Efficiency, productivity

Improve Existing Processes

New ValueNew value propositions, new markets, new business models

17

Efficiency, productivity

Internet of Things

Blockchain

Fog Computing

ArtificialIntelligence

Internet of Things

Blockchain

Fog Computing

ArtificialIntelligence

Autonomous cars

Retail

Cities

Healthcare

Drones

Agriculture

Manufacturing

EnergyMining

Supply Chain

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

+FogIoT

Distributed Cloud(Cloud 2.0)

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+

Body and Brain

AIIoT

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

+

Single Source of Trust

BlockchainIoT

22

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Intelligent Autonomous Swarm of Drones

23

Fog

+AIIoT Blockchain

+ +

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Business ModelsTransition to Service-Oriented

86%Service

Oriented

14%

Product Centric

3 Years

10 Years

12.8%

19%

$20 billion manufacturing company that digitizes its environment

typically shows a rise in profitsSource: Cisco, 2015

(Autonomous) Car• Payment of charging

(induction, car-to-car)• Virtual toll-roads and fast lane• Car to infrastructure services

Utilities• Smart grid balancing (e.g.

dynamic balancing of renewable sources)

Commercial• Pay per use of

equipment in factories• Automated building

management and contracting

Micro-Transactions

Identify small project

Get C-suite sponsor

Gather stats and benchmarks

Build virtual team

Build business case

Create big vision

Establish partner ecosystem

IoT Solutions in IsolationDevices Not DataImmature TechnologySolving for TodayScience vs ProductionDoing it Alone

Proprietary systems

Vendor centric

Stand-alone player

End-to-endopen systems

Industryopen standards

Collaborativepartner ecosystem

Collaborative/shared

Inter-connectivity Inclusive New value

propositionsCo-innovation

Customer Problem

Other enterprises

Vertical partners

Horizontal partners

Regional specialists

Employees

Start-ups

SellerBuyer

Roles Example

SolutionsProblem

31

Culture of constant learning

Co-develop curriculaSponsor

Co-innovateCo-educate

Apprenticeship, Expand your

search

Cultivateyour

people

Build Relation-

shipsGet

Creative

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Workforce Example

Lettuce Train

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32

33

Culture of constant learning

Co-develop curriculaSponsor

Co-innovateCo-educate

Apprenticeship, Expand your

search

Cultivateyour

people

Build Relation-

shipsGet

Creative

Active adversary

Shadow ITNew use-cases

Security by obscurityContinuous Risk Management

Before-During-AfterBest-in-Class + Suites

Single architecture

Insufficient vendor investment

Focus on solving real problems

Build a partner ecosystem; learn to co-develop with them

Attract and train new and existing talent

Prepare for a journey, not a one-time event Transform culture along with technology

Integrate technology solutions with business processes

Start with low hanging fruit

Make security everybody’s top priority

@maciejkranzmaciejkranz.com