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Table of contents

New value propositions, such as mass-customization, will be routine. In 10 years, IoT will have transformed company cultures; business models; jobs and work roles; organizational structures; and relationships with customers, vendors, suppliers, and partners—redefining entire industries in the process.

Just look at the auto industry, which is rapidly merging with the technology industry. Cars are essentially becoming datacenters and smartphones on wheels, and manufacturers are installing standards-based high speed deterministic networks to connect subsystems within vehicles. Banking, finance, and technology industries converged decades ago. Every industry is becoming a technology industry and IoT is behind all of this. In short, IoT is bringing about a new economy—a co-economy that is completely digitized and connected. In this new economy,.

In this new economy, traditional roles will evolve from buyers and sellers to co-creators; from competitors to collaborators, from technology providers to business value creators, from resellers to solution integrators. You can keep your bearings by holding to a few basic principles: Begin your IoT journey with one of the four well-proven fast-paths to IoT payback , learn from the mistakes of your peers who have done it before you, and internalize and integrate my IoT recipe for success. I firmly believe that for many of us, IoT represents a once-in-a-lifetime opportunity to redefine our industries, organizations, and jobs.

Are you ready to begin?

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Welcome to Generation IoT. In an effort to keep conversations fresh, Cisco Blogs closes comments after 60 days. Please visit the Cisco Blogs hub page for the latest content. Hi Maciej, from my reading i believe that IoT will be like another industrial revolution. Massive dislocations and changes to the way people do work. Eg truck drivers, taxi drivers replaced by autonomous vehicles. Lots of new opportunities but also disruptions. Peter, Yes, I agree. The Cloud computing conversation should not be put aside as something belonging in the technical domain or solely as a matter for technologists.

While Cloud computing delivers technical infrastructure, services and software on demand, via the network, it's broader value cuts across everything discussed in this paper and as is contemplated by Canada's Digital Economy Strategy. For example, in the SME context, Cloud computing can profoundly change the way such organizations access and use ICT products and services. Instead of owning and managing ICT products and services, or using a traditional outsourcing approach built around dedicated hardware, software, and support services, organizations employing cloud computing services can meet their ICT requirements using a flexible, on—demand, and rapidly scalable model requiring neither ownership on their part, nor provision of dedicated resources by a cloud services provider.

One of the many significant cloud computing opportunities for the Public Sector may be at the multi—jurisdictional and all—of—government levels. Around the world, public sector information management is clearly dominated by a silo model that sees most government organizations operating largely stand—alone information systems. One of the more intractable challenges faced by governments has been effective sharing of information technology resources.

It's reasonable to expect that cloud computing can address many of the real or perceived barriers that have prevented widespread adoption of shared services in across the Public Sector. With Cloud computing, we're finally reaching the point of maturity, sophistication, and flexibility needed to realize shared services objectives, resulting in more efficient and effective public sector information management and all of the benefits that this would deliver.

Cloud computing, whether in the Public or Private Sector context is further accelerating demand and it's imperative that this reality be taken into account as Canada's digital infrastructure is being repositioned, redefined and rebuilt. In addition to the impact and opportunity for our citizens, Canada's global competitiveness depends on smart and rapid action to address such multiple infrastructure demands.

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The following is a set of underlying broadband principles that we suggest every government use as the foundation of an explicit broadband strategy or plan that is, in turn, closely linked to the national economic and social plan. Building on these principles and drawing from the fast—developing best practices of leading countries, we've identified five major action areas for an effective broadband strategy.

Clearly, Canada amongst others, has taken some of these steps, however governments around the world realize that there is now a next generation opportunity to revisit and reinvest. This includes matters of reach and competition of course. A balanced market environment considers the needs and investments already made by incumbent players, yet still provide incentives for newcomers. At the same time, in order to build complementary wireless networks with the requisite speed for the applications of tomorrow, spectrum with a global footprint needs to be made available for wireless broadband on a technology and service neutral basis.

In addition to the role of regulation in shaping the competitive network environment, regulations, both ICT —specific and more generic, can have the effect of discouraging the establishment of content service providers and innovation in the development and deployment of useful content and applications. As seen with telephony, outdated regulation can generate barriers and constrain access to existing assets by inhibiting opportunities for reduced entry costs and technology promotion.

Much of the thinking in the regulatory arena is based on the legacy of the telephone industry and the historical regulatory environment in virtually every country around the globe. Very different conditions, however, surround IP —based content on broadband networks.

Distance, duration and, to a large degree, usage e. Voice is just one application available to the end user. Countries that have made great strides in broadband connectivity have evolved from a regulatory framework designed for a telephone monopoly to recognizing telecommunications as a platform for voice, data, and video convergence and treating networks as critical infrastructure to be used by a vast array of content and service providers.

It's important that rules are established to ensure that there is open access by application and content providers to the network. This provides the greatest potential for innovation and the development of content that people will want to use, including localized services and information. Regulators may also have some discretion in promoting broadband services that are viewed as being in the public interest.

For example, in many jurisdictions, reduced rates have been approved for research, education, and other desirable and noncommercial uses. Governments are also reallocating existing expenditures or providing new funding in health and education to connect schools, colleges, universities, hospitals, clinics, and other health facilities to broadband networks. This action will deliver high—valueadded programs such as distance education and remote diagnostics with high efficiency, on a very cost—effective basis.

These kinds of programs are making it possible for previously excluded individuals and communities to participate in the economy and society.

IoE-IoT Regional Forum Highlights

We are just scratching the surface with initiatives such as this. Lack of consistent next—generation broadband capacity across the country is a barrier to the rollout of such programs. Lack of capacity also denies convenient and equitable access to citizens and businesses that cannot access these services electronically. This is why many governments have used their own purchasing power and the aggregation of the government's own use of networks as a means of encouraging network providers to extend broadband coverage. Combining the requirements for network capacity of all government departments, as well as the locations to be served, into one purchase can have a dramatic demandpull effect on broadband supply.

Governments may go even further by requiring the underlying network provider to provide service to a wider geography than they currently serve in order to bid on or receive the government's business. Governments around the world are becoming significantly more proactive in direct and indirect funding to encourage access to broadband or new broadband infrastructure. Strategic investments may be required to establish a national infrastructure foundation on which private investments and local initiatives can be built. Private investment in networks and broadband service development is critical and has propelled the development of networks and the growth of connectivity in many countries.

At the same time, in order to build complementary wireless networks with the speed needed for the applications of tomorrow, spectrum with a global footprint needs to be made available for wireless broadband on a technology and service neutral basis. Governments are also providing significant indirect support for the extension of broadband through measures such as the provision of rights—of—way at little or no cost, or including the costs of necessary ductwork to enable future broadband deployment as part of other infrastructure investments.

Given that rights—of—way acquisition and construction represent a large portion of broadband costs, it should be a requirement that the design and construction of new or expanded buildings, roads, bridges, railways, and power grids include broadband—ready capabilities. This is a current priority in many countries and is seen as a significant leapfrog opportunity for those who have yet to formalize such plans. Smart grids will be at the core of our energy security and climate change solutions, and will make homes and buildings more productive and economical. Broadband has the potential to improve the efficiency of electricity generation and use, enabling the transformation of the electricity grids by providing an end—to—end, secure communications fabric to help utilities companies optimize power supply and demand.

These Connected Grids are rapidly becoming top priorities for Governments to support, given their many benefits. In addition to environmental benefits and operational efficiencies, connected grids are for the first time, becoming fully Observable, Controllable, Automated and Integrated, all as a direct result of the availability of next generation broadband infrastructure. Smart Grid and other mutually connected intelligent systems to manage the urban environment are powerful elements of a digital economy not only in the opportunities they create, but in the effect that a serious commitment to Smart Communities would have on the Canadian ICT industry itself, as the tools for truly intelligent communities are created.

For the first time in history, a majority of people live in urban areas. Developing the infrastructure of these new cities will require trillions of dollars. The environmental impact of this massive urbanization is without precedent. The need for all these cities to sustainably balance social, economic, and environmental resources is more critical than ever before. Today hundreds of different systems and protocols across an urban center are not interoperable. When these systems are converged onto a single open—systems based network, significant opportunities for productivity, growth, and innovation can be unleashed.

Smart Communities are an inevitability and with the creation of a world—class digital infrastructure, the opportunity for Canada is real and significant. The network has become the platform to address social needs and create new sources of growth. Next generation broadband will drive a new wave of innovation, productivity, economic growth and jobs.

Everything from connected energy grids, buildings and communities to an active, independent ageing population and a reinvigorated democracy and will be inspired by it. Canada's ICT Industry is a significant employer and contributor to Canada's economic output and has the potential to build on its strengths.

The challenge lies in the definition of the industry. In an era of pervasive connectedness, where every industry utilizes technology, the traditional definition of ICT blurs quickly. There are many companies in adjacent markets, who would consider themselves more as technology companies, as their own businesses and industries have evolved These are healthy outcomes and the consultation paper rightly points out that, with the right support and engagement, the industry can be the engine for a range of new products, services and businesses.

To move the agenda forward, it's necessary to consider the pre—commercialization challenges that often cause nascent players to not achieve their objectives or potential. As network technology now allows and very much to Canada's benefit, there is a distinct and very exciting opportunity to bring the various players into closer alignment. The Government of Canada has significant policy, research and grants and contributions entities who should themselves be better aligned and coordinated. They can not only be responsive to the small and medium enterprises that should be the focus of growing the industry, their closer alignment and collaboration can also help these organizations move through their own business lifecycles with the right funding and support at the right time.

This is central to the ability to connect to this important part of the private sector, aggregating resources and generally making the right people aware of what's available. It's also important to connect the creative economy of arts and culture with the digital economy.

There’s Never Been a Better Time for IoT

It's a veritable certainty that new businesses will spring forward from this even more broadly creative combination. This connection can also come about through access to existing government and research networks, so that these artists can express their creativity differently and to a much wider audience. In today's global economy, the innovation chain has become more dispersed and complex, independent of the sophistication of business relationships inside or outside existing hubs. The only way to keep innovating is to connect the dots through new paths.

There’s Never Been a Better Time for IoT

Co—locating all these participants in a unique physical place is increasingly difficult. Connections can very much be at the community level. As noted, incenting the creation of products and services that support smart and connected communities will also fundamentally help to grow the ICT industry.

Further, there's an enormous opportunity for the industry and for the broader digital advantage that we are seeking to build. This opportunity is connected Real Estate, which has the potential to effect change on an exceptionally wide scale. Bringing real property assets into the 21 st century, through integrating systems, people and processes to create smart buildings, represents new opportunities for the industry, society and governments.

The Government of Canada is the country's biggest landlord and as such, the ability to manage this portfolio differently, not only provides the Government with an opportunity to be a model user, it can also deliver real and sustainable business, operational and employee benefits. On a national basis, the opportunity is powerful. Recently, the Governments of Canada and Ontario and the City of Toronto created Waterfront Toronto to oversee and lead the revitalization of Toronto's waterfront. Public accessibility, design excellence, sustainable development, economic development and fiscal sustainability are the key drivers of waterfront revitalization.

The Toronto Waterfront initiative represents a key opportunity for Canada to invest in and deploy a world—class connected community. The potential arising from this initiative is very significant and could help position Canada as a centre of excellence in establishing these communities of the future.

There's a broader, related opportunity for Government itself and this relates to the re—engineering of work. Through the creation of an integrated workforce and a network of smart, sustainable work locations which can improve citizen service, including improved responsiveness to citizen and employee concerns, reducing costs and optimizing expense management, reducing the environmental footprint including carbon emissions and energy use and improving workforce quality, engagement, and performance, the Government can not only be a model, it can help reset the pace of such necessary changes.

These kinds of initiatives lead once again to the very real need for a more sophisticated approach to collaboration. The Government of Canada, with a nationally aligned research, policy, grants and contributions regime for example, could become a spectacular enabler and point—of—focus for these new collaborative models.

Today, digital media is the most compelling platform to instantly and effectively reach customers, employees, partners, and students with important information, news, training, and events; it is effective because it preserves characteristics of face—to—face communication and brings both intimacy and immediacy to communications. Studies show that people are far more likely to engage and retain information they can both see and hear.

With digital media, it is possible to absorb and easily remember large amounts of often complicated information. Digital media is versatile; it draws viewers in whether the content is marketing, internal communications, training, advertising, or entertainment materials.

More and more organizations are using digital media to deliver timely and targeted communications; it is creating a new kind of customer experience and facilitating business transformation. Organizations of all sizes increasingly strive to improve external and internal communications in order to retain customers, compete, and grow their businesses domestically and globally.

With digital media, organizations can provide direct, relevant communications, and create richer and more satisfying experiences for both customers and end users, ultimately accelerating business transformation across many aspects of the business. Digital Media, as the consultation paper calls out, represents a significant opportunity for Canada; however as with other elements of the strategy, if Canada wants to become a recognized leader, the time for real action is very much upon us.

As we've noted earlier, Countries around the world are redefining what prosperity means for them and are positioning support for digital media enterprises high on their list of priorities. In the context of the preceding and the entire Digital Economy Strategy initiative, the importance of relevant skills development, cannot be overstated. Countries who demonstrate their commitment to advanced training and education have a natural advantage over those that don't. Canada is known for having a well—educated workforce, however there remains a growing concern that we'll be unable to deliver digitally—literate citizens into jobs that will simply demand them as a core—competency.

This concern extends to age, gender and ethnic diversity, as it does to the growing digital skills divide, which is another alarming trend. We are often asked why the private sector is so invested in education. We are interested because we know that education is the ticket to opportunity and prosperity. It enables all of us to become entrepreneurs, academics, business and government leaders. Our own future sustainability depends on the innovation and expertise of our employees.

We also know that even thought today's global digital economy provides numerous opportunities not available before, there is a still an undeniable need for universal access to quality education and visionary leadership. We believe that the core of an excellent education system is based on talented teachers, strong system—wide leadership, solid and relevant curriculum and accountability for outcomes. However, another vital element is the integration of technologies that can fuel new forms of teaching learning, nurture 21 st century skills and to fundamentally prepare learners for participation in the global digital economy.

There are a broad set skills of required for success in the 21 st century; these of course include the core skills of language, math, science and arts and are further extended by 21 st century themes such as environmental awareness and the impacts of globalization. These are complemented by learning and innovation skills, information and technology skills and life and career skills.