The document discusses the potential value of harnessing the Internet of Everything (IoE) for public sector organizations over the next decade. It finds that IoE could generate $4.6 trillion in value, including through increased employee productivity, connected defense systems, reduced costs, improved citizen experiences, and increased revenue. The value will come from connecting people, processes, data and physical things to improve outcomes in areas like transportation, healthcare, education, and more. Top opportunities include employee mobility and collaboration tools, smart infrastructure systems, and integrated defense networks. Public leaders are encouraged to identify high-value IoE uses cases and develop strategies to capture this value.

1. Internet of Everything in the
Public Sector
Cisco Consulting Services
December 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
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2. Federal
• Knowledge
worker
productivity
• Data
integrity
• Joined-up
government
• Employee
expectations
• Privacy
City / State /
Local
• Workplace
conditions
• Traffic
congestion
• Recreationarea mgt.
• Environmental impact
• Citizen
experience
Healthcare
• Effective
use of technology
• Minimizing
combat
casualties
• Meeting
regulatory
requirements
• Cybersecurity
• Hospital
stays and
readmissions
• Drug
compliance
• Nursing costs
© 2013 Cisco and/or its affiliates. All rights reserved.
Defense
• Shift from
state to nonstate actors
• Procurement
and
provisioning
• Logistics
• Soldier care
Education
• Maximize
technology
for nextgeneration
learning
• Rising costs
• Attract and
retain quality
students
• Scale globally
• Competition
from
traditional,
international,
and newmodel players
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3. Networked Connection of People, Process, Data, Things
People
Process
Connecting
people in
more relevant,
valuable ways
Delivering the right
information to the right
person (or machine)
at the right time
IoE
Data
Things
Leveraging data
into more useful
information for
decision making
Physical devices and
objects connected to
the Internet and each
other for intelligent
decision making
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4. Long List of Use Cases
• Covering public-sector verticals,
agencies, not for profits, etc.
• Cisco experience
• Desk research
• Cisco experts
Scale
• Scale to the world based on
relevant scalar
• Scalars include GDP, income,
population density, car ownership,
public involvement in healthcare,
prison rates, etc.
Filter
Test to ensure each use case is
material (>$10B) or relevant
(literature search) and pragmatic
(operationalized in the short to
medium term)
Short List of Use Cases
40 use cases covering healthcare,
defense, education, transportation,
security, city, and workforce issues
Business Case
• Assess benefits classified by
reduced costs, increased revenue,
employee productivity, citizen
experience
• Calculate costs
Economic Benefits
•
•
•
•
Determine benefit logic
Obtain benchmarks, case studies
Determine long-term impacts
Produce adoption curves
Output
• Top 10 insights
• Detailed findings and analysis
• Call to action for public sector
leaders
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5. Education
Culture &
Entertainment
Transportation
Safety &
Justice
Energy &
Environment
Healthcare
Defense
Connected
Learning
Smart
Lotteries
Smart
Parking
Disaster
Response
Water
Management
Inpatient
Monitoring
Connected
Militarized
Defense
Smart Exams
Connected
Museum
Wildfire
Suppression
Smart
Transmission
Grid
Preventive
Care
Connected
Assets
Public
Transportation
Smart
Toll Booths
Road Pricing
Bridge
Maintenance
Subway Train
Control
Smart Street
Lighting
Correction
Visits
Waste
Management
Video
Surveillance
Particulate
Monitoring
Connected
Offender
Transport
Authenticated
Pharma
Gas
Monitoring
Hospital
Assets
Drug
Compliance
Chronic
Disease
Monitoring
Next-Generation Work & Operations
Next-Gen
Workforce*
Fleet
Management
Smart
Buildings(**)
* Includes mobile collaboration, BYOD, telework, virtual desktop, travel avoidance
© 2013 Cisco and/or its affiliates. All rights reserved.
Cybersecurity
Smart
Payments
** Includes schools and non-education buildings
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6. The potential value that can be created by Public Sector
organizations based on their ability to harness IoE over the
next decade (2013–2022)
Includes
•
•
•
•
Benefits for agencies, employees and citizens
Quantified citizen outcomes (such as reduced congestion, crime, etc.)
Hard cost savings, increased revenues, productivity gains
Allowances for implementation and operational costs
Does not include
• Private sector impact from public expenditure
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7. IoE
Value at
Stake:
$4.6T
(2013-2022
10-year NPV)*
* Net present value
Use Cases
Increased
Revenue:
$125B
• Matching supply and demand
• Improved monitoring and
compliance
Reduced
Costs:
$740B
• Improved labor efficiency
• Better CapEx utilization, leading to
reduced operational costs
Employee
Productivity:
$1.8T
Connected Militarized
Defense: $1.5T
Citizen
Experience:
$412B
© 2013 Cisco and/or its affiliates. All rights reserved.
• Improved labor effectiveness
• Reduced CapEx and OpEx
per output
• Fourfold force-multiplier effect:
increased situational awareness &
connected command centers,
vehicles, supplies
• Shorter “search” times
• Improved environment
• Better health outcomes
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8. Value at Stake by Connection Type ($T)
CollaborationCentric
P2P
69%
AnalyticsCentric
P2M or M2P
IoT-Centric
M2M
0.0
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31%
0.5
1.0
1.5
2.0
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9. Parking
Increased compliance
Reduced search times
Lighting
Waste Management
OpEx reductions
Crime reductions
OpEx reductions
Usage-based pricing
Toll Booths
Faster processing times
Reduced traffic congestion
Buses (Bus Stops)
Reduced wait times
Higher occupancy
© 2013 Cisco and/or its affiliates. All rights reserved.
IoE
Road Pricing
Improved traffic flow
City revenue
Particulate Monitoring
Improved health
Improved compliance to standards
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10. Example: Smart Parking
New Things
Connected
• Parking spaces
• Parking meters
New Data
Flows
• Space
availability
Process
Innovation
•
•
•
•
Pricing
Payment
Enforcement
Finding spaces
Value Impact
Example: City of Nice’s
Connected Boulevard —
Internet of Everything
© 2013 Cisco and/or its affiliates. All rights reserved.
•
•
•
•
People
Impact
• Traffic wardens
• Citizens/drivers
• City planners
$$
Increase compliance by 30%
City data sales
Reduced congestion, time-to-park
Dynamic pricing — revenue increase
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11. Case Study: Smart Street Lighting
City receives additional property tax
City pays
for smart
lighting
City saves
on operating
costs
Crime reduces
Property prices
increase
Citizens get Wi-Fi
Retail job
creation
Better environment
Retail footfall and
sales increase
City receives advertising revenues
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12. City
• Gas monitoring
% of Total
Global Benefits
• Video surveillance
• Water management
• Smart parking
• Public
15%
City
22%
63%
transportation
• Smart street lighting
State
• Road pricing
Federal
• Subway
• Particulate
Mixed
State
• Smart
transmission grid
• Smart lotteries
• Bridge
maintenance
• Offender transport
• Smart exams
• Correction visits
• Wildfire
(Reallocated to
City, State, Federal)
•
•
•
•
•
•
•
•
•
•
suppression
•
monitoring
• Waste management
• Smart tollbooths
• Connected museum
© 2013 Cisco and/or its affiliates. All rights reserved.
•
•
•
•
•
•
•
Disaster response
Mobile collaboration
Cybersecurity
Connected learning
Travel avoidance
BYOD
Chronic disease
management
Telework
Smart payments
Smart buildings
(education)
Smart buildings
(excl. education)
Drug compliance
Authenticated drugs
Fleet management
Inpatient monitoring
Preventive care
Virtual desktop
Hospital assets
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13. Leadership
• What are the most
valuable IoE
opportunities ?
• Where do I start?
Governance
• How do we fund
shared IoE
infrastructure?
• How do we
measure success?
• What is the long-
term vision?
Competence
• Which skills do we
need to develop to
realize IoE value?
• Which partners do I
need to involve?
Technology
• Which use cases
will fund our
platform
investments?
Field area access
Data center and
analytics
Collaboration
Distributed (‘fog’)
computation
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14. • The Internet of Everything (IoE) is poised to generate $4.6 trillion in Value at Stake over
the next decade for the public sector.
• A total of $19 trillion in Value at Stake is available for the private ($14.4 trillion) and public
($4.6 trillion) sectors combined.
• The five primary drivers of IoE Value at Stake for the public sector are: 1) employee
productivity, 2) connected militarized defense, 3) cost reduction, 4) citizen experience, and
5) increased revenue.
• How to do more with less - $4.6 trillion in public sector Value at Stake is equivalent to
about one-third of the expected civilian labor productivity growth over the next 10
years.
• Find the ―killer app” that aligns benefits with costs.
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15. Thank you.