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Internet of Everything can pump R152bn into SA government

The Internet of Everything (IoE) could generate R152.58 Billion ($14.3 Billion) in value for South Africa’s public sector over the next decade, according to a new study released by Cisco.

The IoE can help the South African government create value by saving money, improving employee productivity, generating new revenue (without raising taxes) and enhancing citizen benefits.

The 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.

IoE and the South African public sector

In the study, Cisco projects that the value for the South African public sector can be realised on two levels. The first is at city level where the value over the next decade is projected at R131.24 Billion ($12.3 Billion). The company identified the top five avenues through which government can deliver on this value which include strategies around the following areas: smart grid, cyber security, travel, mobile collaboration and chronic disease management.

At a citizen level the value at stake is projected at R21.34 Billion ($2 Billion) for the country. Cisco identifies the following as the top five avenues through which government can tap into the IoE value on a citizen level: payments, counterfeit drug programmes, chronic disease management, telework and smart street lighting.

‚”With more than two thirds of South Africans living in urban centres and more migrating into these areas daily, our cities must become more flexible and responsive to citizen needs, while making the most of public resources. The Internet of Everything is transforming how cities deliver services and how citizens interact with government,‚” says David Mphelo, Cisco South Africa Executive Director, Public Sector Business.

‚”Our public-sector leaders in South Africa are also under tremendous pressure to bridge the gap between rising citizen expectations and shrinking resources and they should act now to identify major IoE opportunities and begin by reimagining what is possible in an IoE world,‚” says Mphelo.

Global IoE value at stake for the public sector

Globally, the IoE could generate $4.6 Trillion in value for public sector organisations over the next decade, while cities globally have the potential to claim $1.9 Trillion in value. Cities can capture much of this value by implementing ‚”killer apps‚”:

o Smart buildings are poised to generate $100 Billion by lowering operating costs by reducing energy consumption through the integration of HVAC and other systems.

o Gas monitoring could generate $69 Billion by reducing meter-reading costs and increasing the accuracy of readings for citizens and municipal utility agencies.

o Smart parking could create $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.

o Water management could generate $39 Billion by connecting the household water meter over an IP network to provide remote information on use and status.

o Road pricing could create $18 Billion in new revenues by implementing automatic payments as vehicles enter busy zones of cities, improving traffic conditions and raising revenues.

‚”Internet of Everything: A $4.6 Trillion Public-Sector Opportunity‚” builds on research released by Cisco in February 2013 identifying potential profits of $14.4 Trillion for private sector companies that embrace IoE over the next decade. When combined with $14.4 Trillion of potential value in the private sector, IoE is a $19 Trillion opportunity for businesses and governments globally over the next 10 years.

You can find the full report, ‚”Internet of Everything: A $4.6 Trillion Public-Sector Opportunity,‚” Frequently Asked Questions about the study and the study’s Top 10 Insights at


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