Technology will drive change over the next three to five years, and data gained from the Internet of things must be turned into wisdom in order to keep up with the digital revolution, Cisco office of the CEO and chairman senior vice-president, Carlos Dominguez, said.
He was speaking at the Cisco Live! 2013 keynote session in Melbourne.
Dominguez referred to a 2012 IBM study, which surveyed 700 CEOs worldwide, that showed 71 per cent of respondents claimed technology is the number one factor to drive the most change within organisations.
"When you think of technology, there is only one thing that's disrupting everything and that is the whole notion of connectivity," he said.
Dominguez mentioned there were five waves of connectivity -- the connectivity foundation, businesses connecting to and leveraging the Internet, consumers driving the innovation circle, technologies connecting, as well as a new breed of apps and interfaces converging.
"By 2020, new Internet inhabitants should possess Big Data technology, be device agnostic, have Cloud access, be simple, smart and have value," he claimed.
He also highlighted a few examples of such solutions that have entered the market, such as the Phillips Hue (a light bulb connected to the Internet) and wearable devices that track your lifestyle.
However, these technologies pose challenges as well. According to Dominguez, they are individual systems that are complex and require added security.
Managing these technologies and assessing the Big Data that arises from it can create a $14.4 trillion opportunity, especially in the applications space, he claimed.
"The knowledge of these kinds of new technologies is extremely important. The four verticals that it will have the most impact on is manufacturing, retail, information services and financial institutions."
Dominguez said the future of the Internet of things will include artificial intelligence, motion amplification, wearable devices and interactive interfaces.
He suggested that in keeping up with technology, businesses should bring technologies together and offer them to their customers, as well as build a culture that is adaptable to change within their organisations.
"To secure our digital future, we need velocity to drive A/NZ into global relevance. We need the hunger to build the world's best digital economy," Cisco A/NZ vice-president, Richard Kitts, added.
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