the internet of everything: turning big data into big opportunity

The Internet of

Everything

Turning Big Data into

BIG Opportunity (Everything you need to know

about the Internet of Everything)

Imagine never making another grocery list

because the connected fridge sends updates to

your smartphone as food runs out or spoils.

Sound futuristic? It’s not. With the “Internet of Everything” (IoE), the future is now. The IoE means

connected devices can autonomously take action based on real-time data,

processes, and information. What we know as “big” data today will pale in

comparison to the information available as a result of the IoE; it will have an

exponential impact.

READ ON to learn critical information about the IoE, including: real-world

examples, value drivers, barriers to entry, and an overview of KPMG’s seven-

step framework for operationalizing the IoE.

The Internet of Everything:

Turning Big Data into BIG Opportunity

2 © 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG

International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International

have any such authority to obligate or bind any member firm. All rights reserved.

© 2014 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG





INTERNET OF THINGS

= connection of physical

devices to the Internet

INTERNET OF EVERYTHING

= connected devices that

autonomously act based on

real-time data

WHAT’S THE DIFFERENCE?

A $19 trillion

opportunity

A $300 billion

opportunity

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The IoE is the network of all networks, bringing together people, processes, data, and

physical devices to transform the wealth of structured and unstructured data into real-time

insights, richer experiences, autonomous behavior, and real, tangible business value.

WHAT ARE REAL-WORLD EXAMPLES OF THE INTERNET OF EVERYTHING?

MEDICAL:

A doctor receives

notification that

her patient’s

blood glucose

levels are high

TRANSPORTATION:

A driverless car

reroutes sensing

an accident up

ahead

HOME:

A connected home

keeps coffee from

burning by

powering down

when you leave

PUBLIC SECTOR:

A connected city

adjusts to parking

needs, traffic, and

utility usage






THE INTERNET OF EVERYTHING MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE




The Internet of Everything comes as no surprise and is the culmination of sequential

advances in technology and increasing connected devices:



THE EVOLUTION OF THE IoE

FROM

PERSONAL COMPUTERS

TO TABLETS AND

SMARTPHONES TO WEARABLE DEVICES

Connected devices now far outnumber people with

tens of billions in use…and growing.




1. Steep price

declines of

components

including Radio

Frequency

Identification

(RFID) chips

2. Increasing ubiquity

of broadband

access



WHAT’S DRIVING THE RAPID GROWTH OF CONNECTED DEVICES?






WHAT DOES THIS MEAN FOR BUSINESS?

It means there’s HUGE OPPORTUNITY. Between 2013 and 2022 alone, the IoE will create $19 TRILLION of value in the private sector globally.1

IT WILL CREATE AN ECOSYSTEM OF THINGS AND COMMUNITIES WITH THE ABILITY TO:

Obtain and maintain vast quantities of information

Update, diagnose, and correct conditions

autonomously

Alert, notify, and provide valuable insight without

data mining or queries

Connect to individual consumers in a more

personal, predictive, and social way

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1 The Internet of Everything, Cisco IoE Value Index Study, Frequently Asked Questions, Cisco Inc., 2013






WHERE IS ALL OF THIS VALUE COMING FROM?

EFFICIENCY: Machines and factories become more efficient as the IoE leads to

smarter, autonomous machines that can adjust on the fly.

PRODUCTIVITY: Remote sensors and video conferencing enable healthcare

workers to treat patients remotely and save time. Appliances diagnose problems,

order replacement parts, and schedule service calls.

CUSTOMER SATISFACTION: Collecting/analyzing large amounts of data from

individuals’ click streams, ordering history, and social networking posts enables

sellers to customize products/services and build customer loyalty.

INNOVATION: Considerable opportunities exist in creating new business models,

new products and services, and reduced time to value.

Opportunities to capture value fall into FOUR main categories:

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1

2

3

4






Organizations already

have a multitude of

physical devices

scattered across data

centers, warehouses,

plant floors, and

supply chains that can

be “plugged in.” So

what’s keeping them

at bay?

WHY ARE ORGANIZATIONS HESITANT TO GET ON BOARD?






WHO IS SUCCEEDING WITH THE IoE?

Nest, recently acquired by Google, is creating what they call the

“conscious home.” They are taking otherwise boring household

objects—the thermostat and smoke detector—and bringing them into

the connected world.

Using a combination of sensors and machine learning algorithms,

Nest analyzes our behavior and the environment to maximize energy

efficiency. Its Nest Protect product allows smoke detectors to

distinguish between smoke and steam, reducing false positives.




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HOW TO OPERATIONALIZE THE IoE

KPMG’s seven-step

framework guides

organizations

through

operationalizing the

IoE, beginning with

designing the

enterprise-wide

information strategy

and then deploying it

in phases.






ACCESS THE WHITE PAPER AND RELATED MATERIALS HERE: The Internet of Everything is Now >>

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LEARN MORE ABOUT THE INTERNET OF EVERYTHING

For more information, contact us: Justin M. Hoss

Managing Director

CIO Advisory

[email protected]




http://www.kpmg-institutes.com/institutes/advisory-institute/articles/2014/07/internet-of-everything.html

http://www.kpmg-institutes.com/institutes/advisory-institute/articles/2014/07/internet-of-everything.html

mailto:[email protected]

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© 2014 KPMG International Cooperative (“KPMG International”),

a Swiss entity and a member firm of the KPMG network of

independent member firms affiliated with KPMG International

Cooperative (“KPMG International”), a Swiss entity. All rights

reserved.

The KPMG name, logo and “cutting through complexity” are

registered trademarks or trademarks of KPMG International

Cooperative (“KPMG International”).