The Internet of Everything will be worth $14.4 trillion between 2013 to 2022 and ICT businesses should already be taking actions to capitalise from this trend, according to networking company, Cisco Australia. Cisco A/NZ managing director, Ken Boal, defined the Internet of Everything as the networked connection of people, process, data and things.
He said 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.
"We've been talking about the Internet of Things over the past four to five years but it's not just about these things connecting. It's about people changing business processes, deriving intelligence from data and using it to drive potential economic value," he said.
In line with the growth of the Internet of Everything, Cisco has launched an IoE Value Index, which polled 7501 businesses and IT decision makers globally.
It found that the Internet of Everything has $1.2 trillion of value 'up for grabs' within the private sector globally in 2013 and will enable Australian private sector businesses to generate at least $36 billion in profits (compared with $613 billion globally).
"If you look at the public sector, these numbers will double," Boal said.
The study also stated that Australian businesses have a current Internet of Everything score of 48 per cent -- in other words, risk leaving about 50 per cent of value 'on the table' and untapped by the end of 2013.
As a result, Boal claimed that businesses should start working towards building a smart city that has connected communities, connected energy and a connected industry.
"It's about what customers want, how they consume technology, how businesses evolving and adapting to embrace an omni-channel model and tools like Big Data as a result," he mentioned.
However, Boal claimed that inhibitors to the growth of the Internet of Everything include regulatory and compliance issues, IT systems and security threats to data.
"These are the areas for absolute focus if the Internet of Everything is going to continue to grow at the rate we predict. There is huge potential and opportunity out there for the Internet of Everything," he added.
Other findings from the study include:
- The top technology drivers of profits stemming from the Internet of Everything for Australian businesses are new types of devices (40 per cent), Cloud-based technology (31 per cent), and the volume of data generated (27 per cent).
- Manufacturing (27 per cent), retail trade (11 per cent), information services (nine per cent), and finance and insurance (nine per cent) make up more than half of the Internet of Everything value at stake.
- 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 capture 52.5 per cent value at stake, while large enterprises in Australia capture 47.2 per cent.
- The top business drivers of profits stemming from the Internet of Everything for Australian businesses are providing new and/or improved customer experiences; making their operations more efficient; and accelerating the pace of innovation.
- The top business benefits of the Internet of Everything for Australian businesses are operational efficiency, customer service, and collaboration within a company.