Manufacturing AUTOMATION

New Cisco study reveals US$4.6 trillion in value at stake for governments that embrace the Internet of Everything

January 13, 2014
By Manufacturing AUTOMATION

The Internet of Everything (IoE) could generate US$4.6 trillion in value for public sector organizations over the next decade, according to a new study released by Cisco.

The study says that IoE can help governments create value by saving money, improving employee productivity, generating new revenue (without raising taxes) and enhancing citizen benefits.  

IoE is the networked connection of people, process, data and things, and the increased value that occurs as “everything” joins the network. Several technology transitions — including the Internet of Things, increased mobility, the emergence of cloud computing and the growing importance of big data, among others — are combining to enable IoE.

The City of Barcelona is utilizing IoE solutions today to offer citizens new services and richer experiences. One of the first to develop Virtual Citizen Services in Europe, Barcelona is using video and collaboration technologies to allow citizens to virtually interact with city hall without having to travel to local offices. One of the world’s leading Smart+Connnected Communities, Barcelona has implemented IoE solutions in water management, smart parking, waste management and connected buses, all of which are helping the city save money and improve the quality of service to citizens.  


Cities globally have the potential to claim US$1.9 trillion in value from IoE over the next decade, according to Cisco’s study. Cities can capture much of this value by implementing “killer apps.” Examples include:
• Smart buildings are poised to generate US$100 billion by lowering operating costs by reducing energy consumption through the integration of HVAC and other systems.
• Gas monitoring could generate US$69 billion by reducing meter-reading costs and increasing the accuracy of readings for citizens and municipal utility agencies.
• Smart parking could create US$41 billion by providing real-time visibility into the availability of parking spaces across a city. Residents can identify and reserve the closest available space, traffic wardens can identify non-compliant usage, and municipalities can introduce demand-based pricing.
• Water management could generate US$39 billion by connecting the household water meter over an IP network to provide remote information on use and status.
• Road pricing could create US$18 billion in new revenues by implementing automatic payments as vehicles enter busy zones of cities, improving traffic conditions and raising revenues.

“With more of the world’s population moving into urban centres daily, cities must become more flexible and responsive to citizen needs, while making the most of public resources,” said Wim Elfrink, Cisco’s EVP of industry solutions and chief globalization officer. “The Internet of Everything is transforming how cities deliver services and how citizens interact with government.”

Beyond cities, the benefits of IoE extend to governments at almost every level, according to the study:
• State agencies have the potential to realize US$682 billion in value by applying IoE solutions to processes like bridge maintenance, offender transport, chronic disease management, connected learning and wildfire suppression.  
• Non-defence federal agencies could capture US$472 billion through IoE solutions to improve disaster response, fleet management, cyber security and many other areas.
• Defence forces globally can improve the effectiveness of military missions through secure connection and information sharing among soldiers, bases, vehicles and battlefield assets. Improved connections among defence forces globally could generate US$1.5 trillion in value and measurably enhance soldier safety.

With 350 million public employees in the world, IoE applications that improve employee productivity across state, local and non-defence federal agencies can generate significant value. For example, increased use of telework solutions could create an estimated US$125 billion in value by lowering real estate, printing and other costs. These same solutions improve employee retention and productivity, and provide additional employment opportunities.  

“Public sector leaders are under tremendous pressure to bridge the gap between rising citizen expectations and shrinking resources,” said Martin McPhee, Cisco’s SVP for Consulting Services. “IoE solutions have the potential to change everything. Public sector leaders should act now to identify major IoE opportunities in their agencies, and begin by reimagining what is possible in an IoE world.”

The study — “Internet of Everything: A $4.6 Trillion Public-Sector Opportunity” — builds on research released by Cisco in February 2013, which identified potential profits of US$14.4 trillion for private companies that embrace IoE over the next decade. When combined with US$4.6 trillion of potential value in the public sector, IoE is a US$19 trillion opportunity for businesses and governments globally over the next decade.

You can find the full report at

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