the internet of everything: turning big data into big opportunity
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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
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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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 Internet of Everything:
Turning Big Data into BIG Opportunity
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
4 © 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
THE INTERNET OF EVERYTHING MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE
5 © 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.
The Internet of Everything comes as no surprise and is the culmination of sequential
advances in technology and increasing connected devices:
The Internet of Everything:
Turning Big Data into BIG Opportunity
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.
6 © 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.
1. Steep price
declines of
components
including Radio
Frequency
Identification
(RFID) chips
2. Increasing ubiquity
of broadband
access
The Internet of Everything:
Turning Big Data into BIG Opportunity
WHAT’S DRIVING THE RAPID GROWTH OF CONNECTED DEVICES?
7 © 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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
© 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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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2
3
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© 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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?
10 © 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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.
11 © 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.
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The Internet of Everything:
Turning Big Data into BIG Opportunity
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.
© 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.
The Internet of Everything:
Turning Big Data into BIG Opportunity
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
jhoss@kpmg.com
© 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.
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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”).
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