The Internet of Everything (IoE) is a $19-trillion business opportunity, and could generate $4,6-trillion in value for public sector organisations alone over the next decade.
According to a new study released by Cisco at the Consumer Electronics Show (CES), IoE can help governments create value by saving money, improving employee productivity, generating new revenue (without raising taxes) and enhancing citizen benefits.
IoE 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.
Cities globally have the potential to claim $1,9-trillion in value from IoE over the next decade, according to Cisco’s study. Cities can capture much of this value by implementing “killer apps”:
* Smart buildings are poised to generate $100-billion by lowering operating costs by reducing energy consumption through the integration of HVAC and other systems.
* Gas monitoring could generate $69-billion by reducing meter-reading costs and increasing the accuracy of readings for citizens and municipal utility agencies.
* Smart parking could create $41-billion by providing real-time visibility into the availability of parking spaces across a city. Residents can identify and reserve the closest available space, traffic wardens can identify non-compliant usage, and municipalities can introduce demand-based pricing.
* Water management could generate $39-billion by connecting the household water meter over an IP network to provide remote information on use and status.
* Road pricing could create $18-billion in new revenues by implementing automatic payments as vehicles enter busy zones of cities, improving traffic conditions and raising revenues.
The City of Barcelona is using IoE solutions to offer citizens new services and richer experiences. One of the first to develop Virtual Citizen Services in Europe, Barcelona is using video and collaboration technologies to allow citizens to virtually interact with city hall without having to travel to local offices.
One of the world’s leading Smart+Connnected Communities, Barcelona has implemented IoE solutions in water management, smart parking, waste management and connected buses, all of which are helping the city save money and improve the quality of service to citizens.
“With more of the world’s population moving into urban centres daily, cities must become more flexible and responsive to citizen needs, while making the most of public resources,” says Wim Elfrink, Cisco’s executive vice-president of industry solutions and chief globalisation officer. “The Internet of Everything is transforming how cities deliver services and how citizens interact with government.”
Beyond cities, the benefits of IoE extend to governments at almost every level, according to the study:
* State agencies have the potential to realize $682-billion in value by applying IoE solutions to processes like bridge maintenance, offender transport, chronic disease management, connected learning and wildfire suppression.
* Non-defence federal agencies could capture $472-billion through IoE solutions to improve disaster response, fleet management, cyber security and many other areas.
* Defence forces globally can improve the effectiveness of military missions through secure connection and information sharing among soldiers, bases, vehicles and battlefield assets. Improved connections among defence forces globally could generate $1,5-trillion in value and measurably enhance soldier safety.
* With 350-million public employees in the world, IoE applications that improve employee productivity across state, local and non-defence federal agencies can generate significant value.
For example, increased use of telework solutions could create an estimated $125-billion in value by lowering real-estate, printing and other costs. These same solutions improve employee retention and productivity, and provide additional employment opportunities.
“Public-sector leaders are under tremendous pressure to bridge the gap between rising citizen expectations and shrinking resources,” says Martin McPhee, Cisco’s senior vice-president for Consulting Services. “IoE solutions have the potential to change everything. Public sector leaders should act now to identify major IoE opportunities in their agencies, and begin by reimagining what is possible in an IoE world.”
The study, “Internet of Everything: A $4,6-trillion Public-Sector Opportunity”, builds on research released by Cisco in Feb. 2013 which identified potential profits of $14,4-trillion for private companies that embrace IoE over the next decade. When combined with $4,6-trillion of potential value in the public sector, IoE is a $19-trillion opportunity for businesses and governments globally over the next decade.