Business Impact of Digitization Ruba Borno, Ph.D.

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1 Business Impact of Digitization Ruba Borno, Ph.D. Vice President, Growth Initiatives and Chief of Staff to CEO Cisco July 12, 2016

2 The future is here it s just not evenly distributed William Gibson

3 Market Disruptors 0 60 Lowered Cost of Innovation Speed of Innovation Increased Volume of Innovation Hyper- Connectivity $5M in 2000 $5K in 2015 iphone 1 in 2007; Mobile app economy $100B in 2015; 10M developers $50B venture funding 15B 50B (1M/hr) 500B connected- 40% traffic M2M

4 Everything will be connected, generate data and talk securely.

5 It s going to take a lot of connectivity

6 From Data Centers to Centers of Data

7 Data analytics at 1 Sensors 2 Edge 3 Data Center

8 Data analytics at 1 Sensors 2 Edge 3 Data Center

9 Ubiquitous Security

10 20 Billion per day 7.2 Trillion per year

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12 Unlocking the Opportunities of the Digital Economy Requires Security Everywhere...the Network is the source of truth

13 Enable the network to be an integral part of the strategy. - Lawrence Orans, Gartner

14 Enable the network to be an integral part of the strategy. - Lawrence Orans, Gartner

15 Connectivity Analytics Security

16 Benefits of Digital Transformation +9% +26% +12% Revenue Generation Profitability Market Valuation

17 Industry View of Value at Stake $3.1T Financial Services $2.0T Service Provider $1.6T Professional Services $6.4T Manufacturing $1.4T Healthcare $2.8T Retail $1.1T Oil & Gas Top Industries, Ranked by Value at Stake ( )

18 Stages of Digitization 18

19 Enables Differentiates Defines IT Agility and Increased Productivity Reduced Tech Costs (Opex and Capex) Faster Response Times to Customer Needs New User Experiences, Products, Services Accelerated Product, Services, and Business Process Innovation Distributed Connectivity and Intelligence Business Model Innovation / Industry Transformation Machine 2 Machine / Augmented Decisions / Self Learning Analytics New Growth and Constant Innovation

20 Enables Differentiates Defines IT Agility and Increased Productivity Reduced Tech Costs (Opex and Capex) Faster Response Times to Customer Needs New User Experiences, Products, Services Accelerated Product, Services, and Business Process Innovation Distributed Connectivity and Intelligence Business Model Innovation / Industry Transformation Machine 2 Machine / Augmented Decisions / Self Learning Analytics New Growth and Constant Innovation

21 Enables Differentiates Defines IT Agility and Increased Productivity Reduced Tech Costs (Opex and Capex) Faster Response Times to Customer Needs New User Experiences, Products, Services Accelerated Product, Services, and Business Process Innovation Distributed Connectivity and Intelligence Business Model Innovation / Industry Transformation Machine 2 Machine / Augmented Decisions / Self Learning Analytics New Growth and Constant Innovation

22 Enables Differentiates Defines IT Agility and Increased Productivity Reduced Tech Costs (Opex and Capex) Faster Response Times to Customer Needs New User Experiences, Products, Services Accelerated Product, Services, and Business Process Innovation Distributed Connectivity and Intelligence Business Model Innovation / Industry Transformation Machine 2 Machine / Augmented Decisions / Self Learning Analytics New Growth and Constant Innovation

23 Enables Differentiates Defines IT Agility and Increased Productivity Reduced Tech Costs (Opex and Capex) Faster Response Times to Customer Needs New User Experiences, Products, Services Accelerated Product, Services, and Business Process Innovation Distributed Connectivity and Intelligence Business Model Innovation / Industry Transformation Machine 2 Machine / Augmented Decisions / Self Learning Analytics New Growth and Constant Innovation

24 Delivering Digitization

25 Understand Business Strategy Time to Realize Value Scalable Platform Adaptive Process

26 Digitization requires Digital Culture 26

27 Lead your digital journey

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