Internet of Everything can generate $4.6 tn for public sector

The Internet of Everything (IoE) could generate $4.6 tn in value for public sector organizations over the next decade, according to a new study released by Cisco today at the Consumer Electronics Show (CES).

The Internet of Everything 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.

Cities globally have the potential to claim $1.9 tn in value from IoE over the next decade, according to Cisco’s study.  Cities can capture much of this value by implementing “killer apps”:

Smart buildings are poised to generate $100 bn by lowering operating costs by reducing energy consumption through the integration of HVAC and other systems. Gas monitoring could generate $69 bn by reducing meter-reading costs and increasing the accuracy of readings for citizens and municipal utility agencies. Smart parking could create $41 bn 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 $39 bn by connecting the household water meter over an IP network to provide remote information on use and status. Road pricing could create $18 bnin 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 centers 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 globalisation officer.

“The Internet of Everything is transforming how cities deliver services and how citizens interact with government,” added Elfrink.

State agencies have the potential to realize $682 bn in value by applying IoE solutions to processes like bridge maintenance, offender transport, chronic disease management, connected learning and wildfire suppression. Non-defense federal agencies could capture $472 bn through IoE solutions to improve disaster response, fleet management, cybersecurity and many other areas.

Defense 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 defense forces globally could generate $1.5 tn 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-defense federal agencies can generate significant value. For example, increased use of telework solutions could create an estimated $125 bn 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,” added McPhee.

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