Building a Smarter Planet Rui Serra IBM Central

Building a Smarter Planet Rui Serra IBM Central Africa Regional Leader

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. 2

The world today looks very different than it did a decade ago… 1 billion transistors for each person on the planet 30 billion RFID tags embedded into our world and into our products 1 billion people are on the internet 500, 000 GB global internet traffic volume expected by 2013 15 petabytes of new information being generated every day 1 trillion The “internet of things” will reach

The world is smaller and flatter Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT The world is getting a whole lot smarter 4

Data is changing the game… Yet organizations are operating with blind spots Lack of Insight 1 in 3 managers frequently make critical decisions without the information they need VOLUME of Digital Data Inefficient Access 1 in 2 don’t have access to the information across their organization needed to do their jobs VARIETY of Information Inability to Predict 3 in 4 business leaders say more predictive information would drive better decisions VELOCITY of information Source: IBM Institute for Business Value

Technology innovations and information will impact… …all aspects of the economy Health Care Trading Advantage Environment Law Enforcement Radio Astronomy Telecom Manufacturing Traffic Control Fraud Prevention

There is an incredible opportunity at stake 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… help build a Smarter Planet 7

IBM’s smarter planet strategy focuses on solving real world problems…. . $93 billion 3. 7 billion 25 billion Total sales missed each year because retailers don’t stock the right products to meet customer demand. Lost hours and 2. 3 b gallons of gas is the annual impact of congested roadways in the U. S. alone. Global trading systems are under extreme stress, handling billions of market data messages each day. 170 billion Kilowatt hours wasted yearly by consumers due to insufficient power usage information. 100 million People worldwide are pushed below the poverty line by personal healthcare expenditures.

What does it mean to become Smarter? Measuring, Monitoring, Modeling and Managing Sensing Metering § Data collection Real Time Data Integration § Data Integration Real Time + Historical Data Modeling + Analytics Visualization + Decisions 9 § Data modeling and analytics to create insights from data to feed decision support and actions

Instrumented Smarter Reference Architecture Analytic Level: Visualization, Simulation, Process Optimization, Planning, Deep Insight Data Integration Level: Business Processes, Workflow, Modeling, Contingencies and Analytics Data Collection Level: Event/Data Capture, Analytics, Pattern Recognition, Control 10

Cloud Computing base for smart Compelling economics, proven technologies, workloads that are ready for cloud Ready for Cloud § Virtualization of Hardware § Compute Infrastructure § Virtualization of Software § Storage Infrastructure § Utilization of Infrastructure § Development and Test § Services Management § Workplace, Desktop, Devices § Collaboration § Industry Applications § Business Processes § Analytics § Reduce IT labor cost by 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 Analytics Blue Insight 109, 000 users growing to 200, 000 Collaboration Lotus. Live 75% of all web conferencing Development & Test Desktop Storage Business Services CIO Dev/ Test Cloud Workplace Cloud Network Storage Cloud Production Cloud 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

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! Government Services Public Safety Education Telecommunications Interconnected Instrumented Intelligent Transportation Energy Healthcare

A Smarter City Brings it All Together – with intensive use of information technologies Energy Management - Smarter Building Management - Automated Meter Management - Smart Grid – Demand Management - Energy Network Monitoring & Stability - Proactive management of the alternative energy mix Intelligent Transportation Systems - Road Usage Charging/Congestion Pricing - Integrated Fare Management - Traffic Information Management - Integrated Transportation Management 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 Environmental Management - City-wide Measurements - Key Performance Indicators (KPI’s) - Energy, Water, Waste, CO 2 Management - Scorecards - Reporting

Industry-specific frameworks deliver outcomes 1 Travel and Transportation Increase 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 9 Service Provider Delivery Environment 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

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 realtime Nationwide adoption in advance of Olympics and World Cup Increasing efficiency in resource deployment, expanding early warnings to 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

Valetta, Malta – A Smart Grid Island 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 18

Rotterdam – Smarter Energy What are the city’s needs? – Become “climate proof” and establish a 50% reduction in CO 2 emissions by 2025 How is the city becoming Smarter? – Designing a monitoring and forecasting system for smarter water and energy management 19

Dubuque, Iowa – Smarter Water 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 20

Dublin, Ireland – Smarter Transport 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 Capture Facilitating increased use of public transportation to help decrease traffic congestion and improve overall air quality 21

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% 22 – Vehicle emissions reduced by 15%

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 23

Chicago – Smarter Security 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 Capture Greater situational awareness during emergencies Faster and more effective deployment of emergency responders © 2007 Foster and Partners 24

IBM Watson The Next Grand Challenge Video

We’ve only just begun to uncover what is possible on a smarter planet. 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.

Let’s Build a Smarter Planet