Internet of Everything Value Index - Australia Fact Sheet

Executive Summary Cisco defines the Internet of Everything (IoE) as the networked connection of people, process, data and things. The benefit of the Internet of Everything is derived from the compound impact of connecting people, process, data and things, and the value this interconnectedness creates as everything comes online. In early 2013, Cisco determined that the Internet of Everything will create $14.4 trillion in total Value at Stake over 10 years (2013-2022). To help businesses realise as much of this value as possible, Cisco has launched new, ground breaking research called the IoE Value Index that shows $1.2 trillion of value is up for grabs globally in 2013. The Internet of Everything and Innovation The Internet of Everything is expected to enable Australian private sector businesses to generate at least $36 billion in profits (compared with $613 billion globally) The value at stake or total potential bottom line value (by producing higher revenue and lower costs) that can be created among Australian businesses based on their abilities to harness the Internet of Everything is $74B for Australia (compared with $1.2 trillion globally) As a result, Australian businesses have a current Internet of Everything score of 48%. In other words, Australian businesses risk leaving about 50 percent on the table and untapped by the end of 2013. Of the 12 countries surveyed, Australia ranks behind the UK, US and Canada. And in our region, behind Japan, India and China. Companies in emerging markets are more confident in their ability to realise Internet of Everything value. On a scale of 1-10, where 10 is extremely confident executives from emerging markets scored a 7.8 in contrast to 6.7 for executives in developed markets. Brazil, China and India have increased their IT investment in recent years at a rate that far outpaces the global average. Competition will intensify as Internet of Everything levels the playing field between large, mid-sized and small companies in Australia. Small to mid-size firms (500-1,999 employees) are actually capturing slightly more Value at Stake on a percentage basis than large enterprises with at least 10,000 employees in Australia 52.5 percent vs. 47.2 percent.

The Internet of Everything and Business Drivers The top business drivers of profits stemming from the Internet of Everything for Australian businesses are: #1 Providing new and/or improved customer experiences (Australia Value at Stake $26.4 billion) #2 Making their operations more efficient (Australia Value at Stake $10 billion) #3 Accelerating the pace of innovation (Australia Value at Stake $23.9 billion). The top technology drivers of profits stemming from the Internet of Everything for Australian businesses are: #1 New types of devices (40%) #2 Cloud-based technology (31%) #3 Volume of data generated (27%)

Internet of Everything Value Index - Australia Fact Sheet

Four industries make up more than half of the Internet of Everything Value at Stake (manufacturing at 27%, retail trade at 11%, information services at 9%, finance and insurance at 9%). The top business benefits of the Internet of Everything for Australian businesses are: #1 Operational efficiency (Value at Stake drivers: asset utilisation, supply chain, employee productivity) (45%) #2 Customer service (Value at Stake drivers: customer experience) (44%) #3 Collaboration within company (Value at Stake drivers: innovation, employee productivity) (28%) Technology is the table stakes to participate in the Internet of Everything economy. By itself, it explains only 20 percent of changes in Internet of Everything value realised globally. It is people and processes that together account for more than 50 percent of changes globally. Winners will be companies that successfully apply technology to improve the people (inclusiveness practices, human-capitol practices) and process (information-management practices, measurement practices).

Cisco IoE Value Index Methodology The IoE Value Index is a companion piece to the economic analysis, entitled Internet of Everything Economy released by Cisco in February 2013 which estimated the Value at Stake from the Internet of Everything. Whereas the earlier work examined the total potential opportunity, the IoE Value Index focuses on how much value companies are actually realizing in calendar-year 2013 as a result of their Internet of Everything-related capabilities today. Cisco conducted a web-based survey of 7,501 business and IT decision makers, split between large enterprises (2,000 or more employees) and midsize companies (500-1,999 employees). Sixty-three percent of participating organisations were large enterprises; 37 percent were midsize companies. Small businesses (having fewer than 500 employees) were not included in the study. Cisco fielded the survey in 12 of the largest economies globally (representing nearly 70 percent of worldwide GDP): Australia, Brazil, Canada, China, France, Germany, India, Japan, Mexico, Russia, U.K., and U.S. Forty percent of respondents were director-level employees or higher, with 60 percent being middle managers (having a minimum of five direct reports). ###