When you follow the proven methodologies of the market leaders, and deploy business technology for competitive advantage, you can fine-tune your current online business processes, improve operational performance and increase productivity.

But if this is the extent of your efforts to date, then I have good news for you -- we now know that there's huge upside potential for new value creation that's far greater than we ever imagined.

The Internet of Everything (IoE) is expected to enable global private-sector businesses to generate at least $613 billion in global profits in 2013, according to the "IoE Value Index" study released by Cisco.

The report -- announced via a global TelePresence event that connected more than 10 international locales -- found firms that optimize the connections among people, process, data and things will generate the largest profits.

The study of 7,500 global business and IT leaders in 12 countries reports that the United States, China and Germany are expected to realize the greatest value in 2013. However, the study also found that corporations could nearly double those profits through greater adoption of business practices, customer approaches and technologies that leverage IoE.

While IoE is already driving private-sector corporate profits, it is estimated that an additional $544 billion could be realized if companies adjusted their strategies to better leverage it.

"The Internet of Everything has the potential to significantly reshape our economy and transform key industries,” said Rob Lloyd, Cisco President of Development and Sales. "The question is who will come out on top and win in this new economy. This study shows us that success won't be based on geography or company size but on who can adapt fastest.”

The Internet of Everything is the networked connection of people, process, data and things, and the increased value that occurs as “everything” joins the network. Several technology transitions -- including the Internet of Things, increased mobility, the emergence of cloud computing, and the growing importance of big data, among others – are combining to enable IoE.

"This study confirms the potential for the Internet of Everything and our ability to make the world smarter, together," said SmartThings CTO Jeff Hagins, who participated in the global Cisco event. "With the SmartThings platform and open community, we believe that more developers and inventors will be able to participate in the value chain and ultimately bring the physical graph to life.”

The Internet of Everything Value Index builds on research that Cisco conducted earlier this year, which found that global businesses could pursue as much as $14.4 trillion over the next decade by leveraging IoE to improve operations and customer service.

Among business leaders who participated in the IoE Value Index:

  • 69 percent said they thought the global job market would stay the same or improve due to IoE.
  • 89 percent thought wages would improve or stay the same.

In addition, business leaders believe that the Internet of Everything will help drive better information security – an indication that they understand the importance of security and privacy to the growth of IoE. Fifty percent of business leaders said IoE would improve security while 26 percent thought there would be no change.

While businesses in the United States, China and Germany are poised to realize the greatest level of profits in 2013, IoE value is spread across firms around the globe. The 12 countries included in the study, which account for nearly 70 percent of global Gross Domestic Product (GDP), are expected to realize the following value from IoE in 2013:

internet of everything (IoE)

While the Internet of Everything is driving a huge amount of corporate profits, an additional $544 billion could also be generated in 2013 if companies adjusted their strategies to better capitalize on it. “That figure should be a wake-up call to businesses large and small that IoE can significantly add to their bottom line,” added Cisco’s Lloyd.

To capture more value in the IoE Economy, companies should:
  • Invest in high-quality technology infrastructure and tools.
  • Adopt and follow inclusive practices that enable all employees to contribute.
  • Develop effective information-management practices.

To maximize value from the Internet of Everything, firms should focus on the IoE-driven capabilities that will benefit their industries most:

  • Manufacturing firms: real-time, multidimensional data analysis; integrated video collaboration; remote tracking of physical assets.
  • Energy firms: integration of sensor data; ability to locate experts; predictive analytics.
  • Retailers: predictive analytics and data visualization; BYOD and interacting with customers using rich media; mobile payments and remote customer monitoring.

Among all industries, services ($158.8 billion) and manufacturing ($103.1 billion) are expected to realize the greatest IoE value in 2013. To learn more about the upside potential view the following video, then visit www.InternetOfEverything.com to discover how to realize the full potential in your business.


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