The Internet of Everything could generate $4.6 trillion in value for public sector organizations over the next decade by helping them save money, improve employee productivity, generate new revenue without increasing taxes, and enhancing citizen benefits. So says a new Cisco study released at this week's CES conference.
Cisco defines IoE as the networked connection of people, processes, data and things, and the resultant value (it would be interesting to determine if the value of all of these interconnections is greater than the risk). This is not to be confused with the Internet of Things, which is a subset of IoE, along with mobility, cloud computing and big data, according to Cisco.
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Cisco CEO John Chambers said at CES this week that IoE is a $19 trillion opportunity, an upgraded figure from the $14.4 trillion profit number stated previously by the company as IoE's potential. The extra $4.6 trillion comes from public sector value alone.
Cities will reap almost $2 trillion, or 10% of the value entire derived from IoE. They can achieve this through smart building technology, which can deliver $100 billion in savings by lower operating costs and reducing HVAC energy consumption. Another avenue is network-attached gas monitoring, which could generate $69 billion in savings by reducing meter reading costs and improving accuracy.
Smart parking technology could create $41 billion through real-time visibility into the availability and reservation of parking spaces, pinpointing violations and enabling demand-based pricing. Water management could generate $39 billion by allowing home water meters to send use and status information over an IP network to a central collection facility. Automatic payment for use of toll roads could tally up another $18 billion, Cisco says.
Barcelona, Spain, is already using IoE to automate many city operations and save money, Cisco says. The city is using video and collaboration technologies to allow citizens to interact virtually with city hall without having to travel to local offices; and implementing water management, smart parking, waste management and connected bus systems.
Other public sector organizations, like state agencies, have the potential to realize $682 billion in value by applying IoE to bridge maintenance, offender transport, chronic disease management, connected learning and wildfire suppression, Cisco says. Non-defense federal agencies could capture $472 billion through IoE to improve disaster response, fleet management and cybersecurity.
Increased use of teleworking could create an estimated $125 billion in value by lowering real-estate, printing and other costs associated with 350 million public employees around the world, Cisco claims.
And global defense can realize $15 trillion in value by improving military effectiveness through secure connection and information sharing among soldiers, bases, vehicles and battlefield assets with IoE.
Cisco's study is called "Internet of Everything: A $4.6 Trillion Public-Sector Opportunity," and can be found here.
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