Internet of everything and what it means to marketers

1. Digital Future Prediction and Connected
Internet of Everything
Rashish Pandey
Director, Marketing, Asia Pacific - Cisco Systems
@rashishp

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#TomorrowStartsHere Video
http://www.youtube.com/watch?v=BJSjbttGaVM&index=17&list=PLFT-9JpKjRTBUHKODoxHdGhV2GlaMBru5

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• What is the Internet of Everything?
• Why does it matter?
• How does it impact marketing?

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Networked Connection of People, Process, Data, Things
Technology powers 80% of
Business processes
Process
13bn connected things
Things
39% the world is
connected
People
More data in
one year than
In previous
5000
Data
IoE

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Networked Connection of People, Process, Data, Things
Delivering the right information to
the right person (or machine)
at the right time
Process
Physical devices and objects
connected to the Internet and
each other for intelligent decision
making; often called Internet of
Things (IoT)
Things
Connecting people in
more relevant,
valuable ways
People
Leveraging data into more
useful information for
decision making
Data
IoE

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Machine-to-Machine (M2M)
• Data sent and received from one machine
(thing) to another
• Often called the Internet of Things (IoT)
Machine-to-People (M2P)
• Data sent and received from a
machine (thing) to a person
• Often called data and analytics
People-to-People (P2P)
• Data sent and received from one person
to another
• Often called collaboration
Connection Type
Greater
Strategic
Value from
Adding More
Connections

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M2P Connections
(Data and Analytics)
P2P Connections
(Collaboration)
Highest-Value IoE Business
Models and Innovations
M2M
Connections (IoT)
IoE

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http://www.youtube.com/watch?v=Kt5VulFqBm4

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Value at Stake
Trillion
Private Sector
Includes both industry-specific and horizontal use
cases.
• Customer Experience
• Innovation
• Employee Productivity
• Supply Chain
• Asset Utilization
• Increased Revenue
• Reduced Cost
• Employee Productivity
• Connected Militarized Defense
• Citizen Experience
Public Sector
Includes cities, agencies, and verticals such as
healthcare, education, defense
Estimate is based on bottom-up analysis of 61 use cases, including 21 for private sector
and 40 in public sector * 2013-2022

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Industry Segment Type of Savings
Estimated Value Over
15 Years
(Billion nominal USD)
Aviation Commercial 1% fuel savings $30B
Power Gas-fired Generation 1% fuel savings $66B
Healthcare System-wide
1% Reduction in System
Inefficiency
$63B
Rail Freight
1% Reduction in System
Inefficiency
$27B
Oil & Gas
Exploration &
Development
1% Reduction in Capital
Expenditures
$90B
Total $276B
Source: “Industrial Internet: Pushing the Boundaries of Minds and Machines,” GE, November 26, 2012

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• Shelf sensors
• Parking-space sensors
• IR motion sensors
• Weight mats
• Environmental (light, temp) sensors
• Door sensors
• Mobile payments
• Digital signage
• Connected shopping carts
• Video cameras / analytics
• Wi-Fi badges
• Gesture recignition
• Point-of-sale
• Kiosks
• Shopper mobile devices
• Store associate mobile devices
• Immersive video
• Social media
• Contact center
• E-commerce site
Connections Impacts
Flexible
Payment Options
Automated
Ordering Process
Inventory Visibility Energy Optimization
Personal-SoLoMo ContentUnderstand Shopper
Behavior
Endless Aisle
Omnichannel
Collaborative Product
Development
On-Demand
Expert Advice
On-Demand Training
M2M
M2P
P2P
Optimized
Retail Operations

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Omnichannel retailer brings the online experience into
stores with Cisco StyleMe—a life-size mirror that
overlays customer’s image with pictures of clothing
selected using gesture-based interface
Shopper becomes virtual model for
“trying on” clothes and accessories
New inventory/order fulfillment
processes to integrate channels
Inventory data increases selection
customers can purchase in-store
Cameras and motion sensors detect
customer and movement
Machine People

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http://www.youtube.com/watch?v=IeUi0VfLIV4

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MagicBands enhance the guest experience by interacting
with park characters who know your name, purchasing
items from any location, and finding personal pictures taken
by Disney photographers Guest wears band on wrist;
manages services via My Disney
website
New processes let guests reserve
seats, pass through lines, avoid
ticketing issues
Bands contain code that securely links to
encrypted database that stores all data
RFID bands send/receive signals to
new Mickey-themed kiosks
People Machine People

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Remote Expertise
Flexible
Production
Real-Time Supply
Chain
Operations
Analytics
Collaborative Product
Development
IT and Physical
Security
Predictive Maintenance
Mobile Collaboration on
Factory Floor
• Converged IP factory network
• Wireless sensors (vibration, temperature)
• Wireless I/O machines
• Wireless process operation controls
• Energy usage analytics
• Supply chain analytics
• Video cameras and analytics
• Network security analytics
• Hardened mobile video devices
• Active collaboration rooms
• Connected factory video
• Contact center
• B2B e-commerce site
Remote Asset Monitoring
Connections Impacts
M2M
M2P
P2P

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Terabytes of data from embedded sensors in cars
provide real-time information to Volvo that allows
engineers to improve product safety, increasing brand
equity and customer satisfaction
Machine Machine
Engineers use information from
sensors to improve car safety
New processes ensure information
results in improved products
Data analysis yields predictive
information (defects yet to occur)
Sensors placed in critical locations
(i.e., brakes) to gather critical data

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http://www.youtube.com/watch?v=PIQd6ZFMaTk

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Virtual concierge offers tour of bank where customers can
chat with available online tellers to complete banking
transactions
Customers use Facebook page to pick
real tellers to complete banking tasks
New processes ensure tellers available
during times of peak demand
Two-way chat system is both private
and secure
Webcams allow customers to see and
interact with online tellers
People Machine People

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Always-on skin patch tracks fertility status, sends data
wirelessly to DuoFertility reader; customers know when
they can get pregnant; specialists monitor data via online
service for customer counseling
Customers wear flexible/comfortable
patch; view key data on DuoFertility
reader
New processes let specialists monitor
data via online service for customer
counseling
Data sent wirelessly to reader, uploaded to
site, analyzed by fertility specialists
Flexible patch collects and sends
information wirelessly to DuoFertility
reader
People Machine People

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People ingest pills that send alerts to
doctors
Doctors change processes to
communicate with patients about
medicine intake
Signal from chip sent to patch, then to
smartphone; doctors email patients with
feedback
Sand-sized chip powered by body
fluids produces voltage read by
wireless skin patch
FDA-approved ingestible sand-sized chip integrated
into pills uses body fluids to activate and send signal
to smartphone alerting doctors that medicine has been
taken
People Machine People

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http://www.youtube.com/watch?v=Wvl6HalipMs

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Connected
Home
Connected
Car
Wearables
Connected
Factory
Connected
Utility
Connected
Cities
Connected
Rail

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Asia Pacific IOE Momentum
• 199 ASEAN respondents
• >85% responses at C-level / BU head
• 86% respondents said it was important / very
important to adapt its people, processes and
technologies to take advantage of the potential
value increased connectedness brings
• 45% responses said that “Greater access to
customer data and better understanding of
customer habits” is the biggest expected benefit at
their organization
• 51% of respondents said they will increase
budgets in Marketing / Sales & IT over the next
three years in order to prepare for greater
connectedness

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IOE: The Road Ahead for Marketing
Hyper-aware Predictive Agile
Accelerating Innovation

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IOE: The Road Ahead for Marketing
Hyper-aware
 Sense the location, status, sentiment and
context of company assets, products &
customers
 Billboards / Print  PC/Phablet  Fabric
of screens, sensors, apps
 Combine physical and virtual data streams
 Trust is the new attention
 Transactions  Relationship

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IOE: The Road Ahead for Marketing
Predictive
 Anticipate market transitions & optimize
performance of assets, operations
 Lagging indicators (Market share, Cust
Sat)  Leading indicators
 Contextualized offerings, dynamic pricing
and advertising
 Creepy  Pleasantly Surprised 
Magical
 Analytics makes it possible  Creativity
makes it magical
 10x Engagement rate with advertising

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IOE: The Road Ahead for Marketing
Agile
 Achieve competitive differentiation by
responding faster than rivals; Build new
business models
 Data driven Product Development; Reduced
time to market
 Extending product lifecycle
 Systems, Processes, Organization and Talent
to handle Big-er Data (x100)
 Partnering within & outside the organization

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• IOE will redefine business & marketing in the next 10 years
• Organizations across the globe including ASEAN are gearing up to
take advantage of the $19Tn value at stake
• CMO / CIO partnership will be critical in realizing IOE value
• The technology & economics are ready
• Innovation & early adoption will determine the winners