Internet of things cisco

Editor's Notes

• #2: EMEAR Version - with EMEAR sales process and customer case studies This presentation can be used in combination with the Digital Ready Network Campaign sales methodology, either as a reference or in situations where a face-to-face whiteboard session is not feasible. This presentation is typically well suited to a senior IT audience or network or IT architect audience The presentation is intended for customers interested in how Cisco can help them deliver a network capable of supporting their organization’s digital initiatives. The Cisco Digital Network Architecture or Cisco DNA is designed to help customers do just that. Cisco Digital Network Architecture (DNA) is an open, software-driven architecture that automates your enterprise network operations. The programmable architecture frees IT staff from time-consuming, repetitive network configuration tasks so they can focus instead on innovation that positively transforms the business. IT finally has the flexibility to turn up network functions with a few clicks and to serve customers in engaging new ways as soon as your customer thinks of them. All while lowering costs and reducing risk. However the road from today’s device and hardware centric model to a fully automated software-driven model involves a step-by step approach that allows investment protection and minimized risk. This presentation will focus primarily on some of the near term opportunities customers have to enable the digitization of their organization while they also progress towards a DNA-based network. In the presentation FIVE digital capabilities that are all part of the Digital Ready Network Campaign are discussed – the expectation is that you will only cover 1 or 2 of these based on the digital priorities identified by the customer as top of mind. These priorities include: Making the Network Secure Improving Workforce Productivity Extending Services to Branch Enhancing Customer Engagement Full set of customer reference slides can be accessed here: https://cisco.box.com/s/q3qy2obysfc2wi0i8ng7bamd2kg3whih For questions and comments about this presentation send e-mails to jgilad@cisco.com.
• #3: I want to take a moment to provide Cisco’s definition of IoT, to ensure we’re on the same page … To put it more in context of what it means for your business and for your daily life, this highly distributed network of connected smart objects is capable of dynamically generating, analyzing, and communicating intelligence that can be used by businesses to increase operational efficiency and power new business models, and by individuals to make life easier and more comfortable. … by connecting everyday objects and networking them together, we benefit from their ability to combine simple data to produce usable intelligence.
• #4: Cisco VNI: http://www.cisco.com/web/solutions/sp/vni/vni_forecast_highlights/index.html one in five organizations in 2015 will aim to measure employee experience as a direct impact on customer experience. IDC. http://www.idc.com/getdoc.jsp?containerId=prUS25297714
• #6: Cisco VNI: http://www.cisco.com/web/solutions/sp/vni/vni_forecast_highlights/index.html one in five organizations in 2015 will aim to measure employee experience as a direct impact on customer experience. IDC. http://www.idc.com/getdoc.jsp?containerId=prUS25297714
• #7: In the past 2000 years, the world has generated a little more than 2 exabytes of data … we now generate that amount every day. These objects are creating a data explosion, with data coming from billions of disparate devices, located all around the world. But unless they can work together, all of this data is siloed, and therefore relatively useless …
• #8: The main benefit of IoT is derived from the connectivity of these billions of smart objects. While the data each of these individual items produces is of little value, IoT enables it to be processed and correlated with other inputs to produce relevant information; it can then be used in real-time as actionable knowledge by IoT-enabled applications; longer term, it can be used to gain deeper understandings for the purpose of developing proactive policies, processes, responses, and plans.
• #9: Another way to address the value that IoT and IoE bring to the market is by thinking in terms of connections. There are three main types of IoE connections: Machine-to-Machine (M2M) Connections: Information transferred from one machine or “thing” to another over a network. Machines include sensors, robots, computers, and mobile devices. Often called the Internet of Things. Machine-to-People (M2P) Connections: Information transferred from a machine (such as a computer, mobile device, digital sign) to a person, or vice versa. Whether a person gets information from a database, or conducts a complex analysis, this is an M2P connection. Often called Data & Analytics. People-to-People (P2P) Connections: Information transferred from one person to another. Increasingly, P2P connections happen virtually, through video, mobile devices, and social networks. Often called Collaboration.
• #10: Digital is transforming business in every industry – requiring every company to be an IT company   Studies show, companies that master digital will not only drive more revenue, but will be 29% more profitable on average [Source: Leading Digital]   This is critical and urgent, as 40% of incumbents are at risk of being displaced [Source: Digital Vortex] --------- So, lets begin by looking at the effects of Digitization Digitization is fundamentally transforming businesses in every industry. Digital advances are often causing new creative product and service opportunities and more efficient ways of doing business, the likes of which have never been seen before. For example UPS Problem - Customer dissatisfaction – “YOUR PACKAGE WILL BE THERE ANYTIME BETWEEN 8AM TO 6PM”. YOU NEED TO BE THERE THE WHOLE DAY TO SIGN FOR IT. Solution UPS mobile app My-Choice cut delivery window to a 1-2 hour slot. Customer can reschedule delivery, provide direct driver instructions, receive alerts from the app Result Dramatic improvement in customer loyalty 8 Million gallons of fuel savings through route optimization algorithms Louis Vuitton Problem – Unable to Deliver personalized relevant information Solution RFID tags embedded in store bags When a customer walks to a kiosk with a bag, the video terminal instantly displays relevant information relating to the bag Result Deliver unsurpassed customer experience Boeing Problem – Track 6 million parts that make a Boeing 747. Financial loss from misplaced and lost parts, toolkits, machinery and WIPP inventory greater than $1 Million per incident. Solution - Asset tracking technology Result - Assembly line humming without any issues American Express Problem –Competitive pressure in retaining and growing their elite black card customers Solution - Use digital as a competitive strategy by providing differentiated and personalized customer experience through Virtual Expertise . Result - Whopping 38% increase in Net Promoter Score, a measure of how likely a customer is likely to promote/recommend AMEX to his/her network Starbucks Problem – poor operating efficiency Result - Improved operating efficiency by 28% Boeing: (Data from Manufacturing EBC deck) Challenge Avoid misplacing toolkits, machinery, parts and WIP (Work in Progress) inventory which cost as much as $1 million per incident Solution Cisco’s Unified Wireless LAN Infrastructure Location capabilities and Wi-Fi asset tags Results Locates tagged assets instantly Reduces delays in the production Reduces government fines “In the factory, the ability to locate major parts and tooling on a timely basis is critical... [Wi-Fi-based Active RFID] will streamline our production environment and make it more efficient time-wise and dollar-wise, by not having to replicate tooling and pieces of gear.” Jim Farrecker, Chief Network Engineer, Boeing
• #11: To go digital, businesses are focused on three priorities: Simplify and automate processes so they can increase speed to market and lower costs Empower workforce efficiency and innovation to drive productivity gains and increase retention Personalize customer and citizen experiences to increase loyalty through insights Digital is fueled by several megatrends – Mobility, IoT, Analytics, Cloud. IT must navigate each to be successful. The network is the one common element that connects all things digital, and offers the platform to accelerate digital transformation. ------------------- To go digital, businesses are focused on three priorities: Simplify and automate processes so they can increase speed to market and lower costs Empower workforce efficiency and innovation to drive productivity gains and increase retention Personalize customer and citizen experiences to increase loyalty through insights Digital is fueled by several megatrends – Mobility, IoT, Analytics, Cloud. IT must navigate each to be successful. The network is the one common element that connects all things digital, and offers the platform to accelerate digital transformation. ------------------- Mobile traffic will Exceed wired traffic by 2017 – Cisco VNI 2015 IoT Devices will triple by 2020 – Cisco VNI 2015 75% of companies planning to or investing in Big in the next two years – Gartner - See more at: http://www.information-age.com/technology/information-management/123460178/75-businesses-will-invest-big-data-next-two-years-gartner#sthash.qUpBfqZs.dpuf 80% of organizations will primarily use SaaS by 2018 –Source: Gartner, Forecast Overview: Public Cloud Services, Worldwide, September 2014 These objects can include sensor devices, asset-tracking devices, smart machines, smart grids, 3D printing and robotics, and smart cities and drone delivery services. What is digital transformation – gartner We need to provide different PoV for digital: Disruptive Evolutionary… (addressing the CIOs who are threatened by it) “Digital transformation (DT) – the use of technology to radically improve performance or reach of enterprises.” <-Capgemini Digital business is the creation of new business designs by blurring the digital and physical worlds. – Source: Digital Business Key Initiative Overview, G00280256, Jorge Lope Gartner Options: “Technology is rapidly creating new sources of business value and competitive advantage for companies of all sizes.” – Gartner http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=3091418&srcId=1-2924665417&prm=itg The Digital Workplace enables new, more effective ways of working; raises employee engagement and agility; and exploits consumer-oriented styles and technologies. – Gartner http://www.gartner.com/it-glossary/digital-workplace Digitization is the process of changing from analog to digital form. http://www.gartner.com/it-glossary/digitization Digital business is changing the way organizations use and think about technology, moving technology from a supporting player to a leading player in innovation, revenue and market growth, according to Gartner, Inc. http://www.gartner.com/newsroom/id/2745517
• #12: The transformational journey to building a Digital Business begins with a strong foundation. Cisco provides this foundation or platform for Digital Transformation First you need to begin with a robust Technology Platform designed for digital business. This includes the network, datacenter, cloud and Internet of Things at the core with Collaboration, Security and Analytics above You can then build the IT capabilities – Connectivity, Security, Automation, Insight Leading to delivery of horizontal Digital capabilities or solutions: Customer Experience, Workforce Experience, Business Operations and City Operations These foundational blocks can be built one by one yielding incremental benefits at every stage You may be wondering how and what do I need to know about these blocks and why Cisco is the partner I should go with in this process To answer these questions let’s begin by looking at the Cisco Technology platform in greater detail
• #13: There are three major IT priorities for IT to lead digital transformation in their respective organizations   Faster Innovation – digital demands businesses to differentiate customer experience and re-define models quickly. Yet only 30% of digital projects will succeed [Cisco study]. This is partly because IT processes are slow and costly and new technologies are being developed faster than they can be adopted. Reduce Cost and complexity – over time the network has grown complex and our customers are spending 2-3 times more on OpEx than CapEx which is unsustainable in a digital world where there growing numbers of devices, apps, users, threats and static IT budgets. Lower Risk and Meet Compliance – mobility and cloud by definition increase the attack surface of business, there is no perimeter … and it take 80 days to detect threats and even longer to remediate while 60% of data is stolen in the first few hours. All this while strict new regulations like the European Data Protection and Affordable Care Acts are being introduced. How does the network need to evolve to enable growing business needs?   As we said before, the network connects all things digital. But let’s discuss how it needs to evolve to address IT priorities for digital.   The network needs to enable faster innovation by delivering Deep Insights on users behaviors, application performance, and threats, so the business can take Immediate Action to optimize factors like employee productivity, customer experience, and daily processes -- all around BUSINESS innovations and new differentiating or disrupting models. For example, in order to Personalize Experiences it needs to deliver context relevant information like what users and devices are on the network and where. And this is possible when the network has visibility and can deliver the analytics, helping businesses make better decisions faster. The network can tell a bank a VIP client has entered a store or what promotions are driving store front conversion or how well expensive real-estate is being utilized (CMX and CMX Cloud, available now). Or the network can see no users are on premises, and lower energy usage of lighting, HVAC, etc. (Digital Ceiling, available Feb 2016). As IoT solutions becoming more pervasive, we’ll see the network share information with applications to drive decisions. Example, Schindler Elevators are running their IoT app over the network to capture analytics on service elevators so they can proactively determine when to send technicians on site. (Non-pubic use case). Today we collect data through devices using CMX, Prime, Lancope; by end of CY16, we will have a Network Data Platform based in the Cloud that will collect rich network data and provide in a structured database with open APIs that customers and partners can tap into for supporting business decisions. To sustain the increasing devices, apps and services, while reducing cost and complexity the network needs to deliver automation and service assurance. This will allow IT to get a branch office running quickly, or roll out new services and applications faster with efficiency and optimal experience. The focus here is IT agility, providing capabilities that allow speed at the lower costs. Cisco provides deep visibility into users and applications, and with controller innovations, we are fully abstracting the network and providing simple workflows following Cisco best practices, so IT can focus on business intent, and allow the controller enforce the policies dynamically. Security continues to be a top priority for business and IT leaders! We know 69 percent of customers are less likely to do business with a breached organization. Also, maintaining compliance is difficult to sustain and less than 1/3 of companies remain compliant more than a year [Verizon PCI Compliance; 2012], opening themselves up to fines and legal procedures. The network needs to contain risk through integrated security services that rapidly detect and mitigate threats. Here the network – touching all things digital – can provide Security Everywhere and Consistently Enforce Compliance so that it acts as both a sensor and enforcer all the way from the clients to the cloud. We all can agree, all these network requirements are very critical to supporting a Digital Organizations, and are the objectives of the Digital Network Architecture, that moves the network beyond a platform of connectivity to a platform for insights, automation and security. However, while business leaders fully acknowledge the importance of the network in enabling digital, less than 10% of enterprises implementing digital business have very clear integration between their network and digital business strategies. (Source: Gartner). Let’s discuss why this is the case. (go to evolution of networking software)
• #14: Workforce Experience - Increase innovation, productivity and satisfaction by providing workers a better experience Customer Experience - Increase customer loyalty, drive sales and deliver continuous operational improvements Business Operations - Enable agile business processes, continuous improvement and gaining operational efficiency City Operations - Create continuity for the operations and communications in support of citizen services WFx – Network Assurance to improve experience Increased assurance analytics Enable new collab apps, better assurance Secure environment Mobile employees Data from anywhere Cx - Location Mobile engagement User behavioral pattern Fast branch application rollout Operations Ruggedized Scale Analytics for safety and security
• #15: The pace of change in the business and IT in recent years has been accelerating. The IT industry has introduced many new innovations with a focus on software to support IT agility. On the networking side, we’ve seen open standards like Open Stack, then Software Defined Networking, more Cloud-based solutions, a direction to virtualize network functions. All exciting, but at the same time, raising many questions for Networking teams: How do I build smarter applications? How do I ensure security? How do I achieve speed & simplicity? In essence, how do I pull this all together? And as importantly, do so with my existing infrastructure? And that is precisely what the Digital Network Architecture will deliver for businesses and organizations. DNA brings together the power of virtualization, automation, analytics, cloud to help IT operate at digital speed, and support the business the outcomes they are after – faster innovation, lower costs/complexity and reduced risk.
• #16: Cisco DNA is an open, software-driven architecture built on a set of design principles with the objective of providing: Insights & Actions to drive faster business innovation Automaton & Assurance to lower it costs and complexity while meeting business and user expectations Security & Compliance to reduce risk as the organization continues to expand and grow DNA is delivered across three layers 1.) Layer 1 – is the network element layer. Here we have physical and virtual devices the bring together the network. A core principle at Network Layer is Virtualization. We are taking 30 years of networking innovations and virtualizing functions so customers can easily run any service anywhere. We are now introducing Enterprise Network Function Virtualization (E-NFV, March 2016), that build the full software stack from the infrastructure software that can reside on servers, to virtualized network functions like routing, firewalls, to the orchestration tools to support E-NFV on physical and virtual devices. We are also modernizing our operating system with evolved IOS XE that is much more open and programmable with model driven APIs. This new OS will allow for faster Cisco innovation, easier customer adoption of capabilities through modular patches. In addition, partners can more easily tap into the intelligence provides by our OS and ASIC, to support their customized application. And, IT will be able to host both management and IoT applications applications over the network to support Fog and Edge computing. 2.) Layer 2 – is the platform layer. Here leverage controllers to fully abstract the network and automate all day 0, 1, 2 functions. Through centralized policy control, we can allow IT provide the business intent, and have the controller drive enforcement dynamically through the network. Also at this level is where we can gather rich data analytics. Today, we do this through Prime, CMX, Lancope, but you can expect by end of CY16 a single analytics platform providing structured data and open APIs that both Cisco and third parties contextual insights – relevant for business to better understand user behavior or IoT data, as well as IT to trouble shoot issues or identify threats faster. 3.) Layer 3 – are the network enabled application that support key business services like collaboration, mobility & IoT. Both Cisco and 3rd parties can write once and gain the intelligence of the network to better understand patterns (by correlating user, app, device data) for use cases that range from capacity planning to testing customer promotions. As we build to the design principles, we’ll leverage the cloud for: Cloud managed – using the cloud to security manage all elements in the network through a single pane view Cloud edge – providing critical network functions at the edge to support business moving their operations to the cloud (like AWS, Azure) Cloud delivered – enabling flexible subscription models where possible, minimizing the infrastructure burden on customers with faster ROI on value And of course, DNA will support the critical north and southbound APIs to enable the broadest ecosystem to be supported. Note training programs underway, many modules available today, and planning for a certification in 18 months. Also, DevNet community helps support programmer development. And we’ll continue to invest in programs like Solutions Plus to help customers identify partners providing the customized solutions for their business/industry. DNA services will be delivered through Cisco ONE Software that provides simplified, high value solutions with license portability and flexibility. Customer can start their DNA journey today on our current portfolio and know they can continue to adopt network innovations in the months and years ahead through the power of software.
• #17: How are we going to implement our vision for the enterprise network….Its through a phased approach Phase 1 – the concept of a digital business wouldn’t even exist without the universal connectivity we have so successfully delivered on. Our networks are the engines that connect digital business to their customers. In phase 2 we are delivering on automation to make networks even more responsive to business needs. With automation business intent can be translated into network configurations immediately, dynamically. Phase 3 reflects the fact that digital business models have eroded the traditional clean perimeter of the enterprise. The enterprise has become a loosely coupled collection of networks and clouds, the business actors have changing roles. This is why the cloud-agile network we envision needs to rely on a flexible, powerful policy model. With phase 4 we built what you could call ephemeral network services: these virtualized network services are there when and where you need them, and you spin them down when you don’t. on the fly. Phase 5… (define)… personally I like ultra large scale networks http://www.sei.cmu.edu/uls/ The sheer scale of ULS systems changes everything. ULS systems will necessarily be decentralized in a variety of ways, developed and used by a wide variety of stakeholders with conflicting needs, evolving continuously, and constructed from heterogeneous parts. People will not just be users of a ULS system; they will be elements of the system. Software and hardware failures will be the norm rather than the exception. The acquisition of a ULS system will be simultaneous with its operation and will require new methods for control. These characteristics may appear in today’s systems and systems of systems, but in ULS systems, they will dominate. Consequently, ULS systems will place unprecedented demands on software acquisition, production, deployment, management, documentation, usage, and evolution practices.