Building a Smarter PlanetRui Serra

IBM Central Africa Regional Leader

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The reality of living in a globally integrated world is upon us

• Frozen credit markets and limited access to capital.

• Economic swings and future uncertainty.

• Energy and power shortfalls.

• Erratic commodity prices.

• Information explosion and risk/opportunity growth.

• Slowing superpowers and emerging economies.

• Increasingly complex supply chains and empowered

consumers.

500,000,000 GB

15 petabytes

1 trillion

1 billion transistors

30 billion RFID tags

1 billion people

global internet traffic volume expected by 2013

of new information being generated every day

The “internet of things” will reachare on the internet

embedded into our world and into our products

for each person on the planet

The world today looks very differentthan it did a decade ago…

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Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

Virtually all things, processes and waysof working are becoming

INTELLIGENT

The world is getting a whole lot smarter

The world is smaller and flatter

Yet organizations are operating with blind spots

Inefficient Access1 in 2 don’t have access to the information acrosstheir organization needed to do their jobs

Lack of Insight1 in 3 managers frequently make critical decisions without the information they need

Inability to Predict3 in 4 business leaders say more predictiveinformation would drive better decisions

VARIETY of Information

VOLUME of Digital Data

VELOCITY of information

Source: IBM Institute for Business Value

Data is changing the game…

Technology innovations and information will impact…

Health Care Trading Advantage

Law Enforcement Radio Astronomy

Environment

Telecom

Manufacturing Traffic Control Fraud Prevention

…all aspects of the economy

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An opportunity to think and act in new ways—economically, socially and technically.

The explosion of new information, when integrated, analyzed and acted upon using new types of intelligence, enables solutions that…

There is an incredible opportunity at stake

help build a Smarter Planet

Kilowatt hours wasted yearly by consumers due to insufficient power usage information.

170 billion

Total sales missed each year because retailers don’t stock the right products to meet customer demand.

$93 billionGlobal trading systems are under extreme stress, handling billions of market data messages each day.

Lost hours and 2.3b gallons of gas is the annual impact of congested roadways in the U.S. alone.

People worldwide are pushed below the poverty line by personal healthcare expenditures.

100 million

IBM’s smarter planet strategy focuses on solving real world problems…..

25 billion3.7 billion

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Measuring, Monitoring, Modeling and Managing

MeteringMeteringSensingSensing

Real Time Data Integration

Real Time Data Integration

Real Time + Historical Data

Real Time + Historical Data

Data Modeling + Analytics

Data Modeling + Analytics

Visualization + DecisionsVisualization + Decisions

Data modeling and analytics to create insights from data to feed decision support and actions

Data collection

Data Integration

What does it mean to become Smarter?

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Instrumented Smarter Reference Architecture

User Interfaces

Analytics

Analytics EngineGeo-spatial Data

MiningStatisticsRisk

Assessment

Device Control/Monitoring

Related data

ETL service

Simulation Manager

Model Component Manager

Visualization

Data Transformation

Rules Manager

BusinessApplications

Data Historian

SCADAMESERPAsset

ManagementScheduling/

Forecasting

InputsOutputsAdministration

Collaboration

ReportingDashboardEmail/pager

Data Warehouse

Demographics

GIS

Environment

Weather

Analytics Rule Base

Rules EngineAlertsAccess MgrsRemote config

and managementComplex event

processing

Local Connections (Ethernet, SCADA, Internal Buses)

OperationalLogic

Cameras, webcams

Intelligent sensors

High-performance archiving of time-series data

Process/WorkflowChoreography

Device controllers (pumps, switches…)

Time-Dependent Middleware

MES,Process Control

Remote sensors

In situ sensors

Meters

Enterprise Service Bus

High-performance AnalyticsComputation Engine

Network devicemonitoring and control

(eg SCADA)

ES

B

EventDetection

LocalAnalytics

OperationalMonitoring

ComplexEvent Processing

ModelingUser

InterfacesAnalytics

Analytics EngineGeo-spatial Data

MiningStatisticsRisk

Assessment

Device Control/Monitoring

Related data

ETL service

Simulation ManagerSimulation Manager

Model Component ManagerModel Component Manager

VisualizationVisualization

Data TransformationData Transformation

Rules ManagerRules Manager

BusinessApplications

Data Historian

SCADAMESERPAsset

ManagementScheduling/

Forecasting

InputsOutputsAdministration

Collaboration

ReportingDashboardEmail/pager

Data Warehouse

Demographics

GIS

Environment

Weather

Analytics Rule Base

Rules EngineAlertsAccess MgrsRemote config

and managementComplex event

processing

Local Connections (Ethernet, SCADA, Internal Buses)

OperationalLogic

Cameras, webcams

Intelligent sensors

High-performance archiving of time-series data

Process/WorkflowChoreography

Process/WorkflowChoreography

Device controllers (pumps, switches…)

Time-Dependent Middleware

MES,Process Control

Remote sensors

In situ sensors

Meters

Enterprise Service Bus

High-performance AnalyticsComputation Engine

Network devicemonitoring and control

(eg SCADA)

ES

B

EventDetection

LocalAnalytics

OperationalMonitoring

ComplexEvent Processing

ModelingRelated DataBusiness

ApplicationsAnalytics User

I nterfaces

ModelingDevice Control & Monitoring

•Policy Mgmt

•Risk Mgmt.

•Asset Mgmt.

•Resource Allocation

•Scheduling & Forecasting

Data Integration Level: Business Processes, Workflow, Modeling, Contingencies and Analytics

Data Collection Level: Event/Data Capture, Analytics, Pattern Recognition, Control

Analytic Level: Visualization, Simulation, Process Optimization, Planning, Deep Insight

Cloud Computing base for smart

Ready for Cloud

Compute Infrastructure

Storage Infrastructure

Development and Test

Workplace, Desktop, Devices

Collaboration

Industry Applications

Business Processes

Analytics

Compelling economics, proven technologies, workloads that are ready for cloud

Virtualization of Hardware

Virtualization of Software

Utilization of Infrastructure

Services Management

Reduce IT labor costby 50%

Improve capital utilization by 75%

Reduce provisioning cycle times from weeks to minutes

Improve quality, eliminating 30% of software defects

Reduce end user IT support costs by up to 40%

IBM’s own use of Cloud

Blue Insight LotusLive

CIO Dev/Test Cloud

Workplace Cloud

Network Storage Cloud

Production Cloud

109,000 users

growing to 200,000

75% of all web

conferencing

Time to build a dev/ test

environment from 1 week

to 1 hour

Estimated savings up to

30%

Up to 40% savings in

storage costs

1,000 applications

identified

Fit for purpose middleware platform

Common Compute Platform (Compute/ Network/ Storage)

Base Enterprise Platform

Analytics CollaborationDevelopment

& Test Desktop StorageBusinessServices

Smarter Cities - A System of Systems

By 2050, city dwellers are expected to make up 70% of Earth’s total

population or 6.4 billion people!

Public Safety

Government Services

Education

HealthcareTelecommunications

Transportation

Instrumented

Interconnected

IntelligentEnergy

A Smarter City Brings it All Together – with intensive use of information technologies

Intelligent Transportation Systems- Road Usage Charging/Congestion Pricing- Integrated Fare Management- Traffic Information Management- Integrated Transportation Management

Energy Management- Smarter Building Management- Automated Meter Management- Smart Grid – Demand Management- Energy Network Monitoring & Stability- Proactive management of the alternative

energy mix

Environmental Management- City-wide Measurements- Key Performance Indicators (KPI’s)- Energy, Water, Waste, CO2 Management- Scorecards- Reporting

Water Management- Water purity monitoring- Water use optimization- Waste water treatment

optimization

Public Safety- Smarter Surveillance Systems- Emergency Management Integration- Micro-Weather Forecasting- Cyber-security

Telecommunications- Fixed and mobile

operators- Media Broadcasters

1 Travel and TransportationIncrease revenue per seat or hotel room through reservation system modernization

2 Insurance Increase insurance underwriter productivity

3 Banking Renovate lending, mortgage, deposit and other core processing systems

4 Financial Markets Integrate support for front-, middle-, and back-office processes

5 Retail Increase accuracy of promotions by targeting offers to the right customers

6 Energy and Utilities Accelerate deployment of smart grids

7 Government Avoid social service overpayments through a single view of the citizen

8 Network Centric Operations Enable all service branches to share common applications

9Service Provider DeliveryEnvironment

Integrate new services with fulfillment, assurance, billing and care systems

10 Media Enterprise Improve management and distribution of digital assets

11 Health Integration Track assets, patients and staff to improve quality of care and operations

12 Integrated Information Reduce exploration risk and cost – faster time-to-oil

13 Product and Service Reduce inventory, improve availability and delivery capacity

Industry-specific frameworks deliver outcomes

Innovative leadership in Rio de Janeiro transformed city operations

Initial focus - prevent deaths from annual flooding

Expanded to manage all emergency response situations

Analyzes weather, energy, building, transportation, & water data in real-time

Nationwide adoption in advance of Olympics and World Cup

Increasing efficiency in resource deployment, expanding early warningsto 48 hours, and coordinating all agencies in response within 8 mins of an event

City Government and IBM Partner to Make Rio de Janeiro

a Smarter City Video

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What are the city’s needs?• Improve operational efficiency and customer service

•Manage constrained resources energy and water

How is the city becoming Smarter?

•250,000 smart electricity and water meters

•Integrating water meters and advanced IT applications

•Residents track energy use online and change consumption habits

• Predicitve modeling and incentives schemes

Valetta, Malta – A Smart Grid Island

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Rotterdam – Smarter EnergyWhat are the city’s needs?

– Become “climate proof” and establish a 50% reduction in CO2 emissions by 2025

How is the city becoming Smarter? – Designing a monitoring and

forecasting system for smarter water and energy management

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What are the city’s needs?•Transportation & Parking•Understanding water usage•Detecting and locating water

leaks

How is the city becoming Smarter?

•Integrated Water Management systems

•Service systems integration, data management, analytic technologies

Dubuque, Iowa – Smarter Water

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What are the city's needs?• Integrated ticketing is a key part of Ireland’s Transport 21

initiative to invest in and improve the country’s entire transportation

• The economic and environmental benefits of integrating the City’s disparate public and private transportation services

How is the city becoming Smarter? Helping set standard policies across city transport providers

to better align schedules and ticketing, making travel in and around Dublin more efficient and economical

Value CaptureFacilitating increased use of public transportation to help

decrease traffic congestion and improve overall air quality

Dublin, Ireland – Smarter Transport

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Stockholm, Sweden – Smart Traffic Management

What are the city's needs?– Reduction in volume of traffic traversing the

city centre– Augmentation of the city’s Public

Transportation capacity

How is the city becoming Smarter? – Applying a variable price signal to change

the behaviour of travellers in the city

Value Capture– Number of vehicles entering the city centre

reduced by 25%– Vehicle emissions reduced by 15%– Waiting times in the city centre reduced by

50%– USD 100 Mln invested annually in Public

Transportation

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IBM Case Study – Smart Building – St. Regis Hotel Shanghai

Only Intelligent Building among 33 five stars hotels in the region

Designed at 5.1% energy cost to revenue, now at 4.9% ... all other 5 star hotels average 8%

40% reduced energy cost / revenue vs. other 5 Star hotels

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What are the city's needs?Allow advanced detection and notification systems to

be plugged-in and tuned as necessary to address new threats

Enable city officials to monitor traffic patterns, detect suspicious activity, and potential Public Safety concerns

How is the city becoming Smarter?

Integration of surveillance networks and expanded situational awareness

A system to capture, monitor and index video for real-time and forensic-related Public Safety needs

Value CaptureGreater situational awareness during emergenciesFaster and more effective deployment of emergency

responders

Chicago – Smarter Security

© 2007 Foster and Partners

IBM Watson The Next Grand Challenge Video

The world will continue to become smaller, flatter and smarter.

We are moving into the age of the globally integrated and intelligent economy, society and planet.

There’s no better time to start building a smarter planet—one focused on lasting transformation in the industries and systems on which we all depend.

Let's work together to drive real progress in our world.

We’ve only just begun touncover what is possible ona smarter planet.

Let’s Build a Smarter Planet