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© Copyright IBM Corporation 2010
IBM Smarter Planet Strategy
Florence D. HudsonEnergy & Environment ExecutiveCloud Computing StrategistIBM Corporate Strategy
A Smarter Planet
Building a Smarter Planet
2© 2010 IBM Corporation
Agenda
Personal Career Path
IBM Smarter Planet Solutions
IBM Energy and Environment Initiatives for a Smarter Planet
Building a Smarter Planet
3© 2010 IBM Corporation
Florence DiStefano Hudson – Personal Career Path
Education:
- Elementary and Secondary school on Long Island, New York
- Princeton University, BSE in Mechanical and Aerospace Engineering
- Executive education at Harvard Business School and Columbia University School of Business
Summer Internships at Grumman and NASA Jet Propulsion Lab
Hewlett Packard in California 1980-1981
IBM since 1981 – living in New York State with global travel to 20 countries
- Sales, marketing, development, channels, strategy, human resources
- Executive since 1999 in strategy and marketing
- Energy and Environment Executive 2008-2010, and Cloud Computing Strategist 2010
- SWE Executive on Loan 2005-2006, SWE Board of Directors 2006, SWE Board of Trustees 2010
Building a Smarter Planet
4© 2010 IBM Corporation
How much energy we waste: 6% to 10% lost because grids are not smartHow gridlocked transportation in cities is: $78B annual loss in U.S. in wasted gas and time
How antiquated our healthcare is: no linkage from diagnosis to providers to insurers to employers
How our water supply is drying up: 6 fold increase in demand at twice rate of population growth
Crisis in financial markets: inability to track risk has undermined confidence
“The digital and physical
infrastructures of the world are
converging. We must make the
mundane processes of business,
government and life sustainable.”
Inefficiency of our supply chains: $40B annual loss in CPG & Retail industries, 3.5% of sales
A Smarter Planet: The Next Leadership Agenda
Source: Sam Palmisano remarks to the Council on Foreign Relations, New York City, November 6, 2008
Prime areas to consider for improvement
Building a Smarter Planet
5© 2010 IBM Corporation
Many of IBM’s smarter planet initiatives are interconnected – www.ibm.com/smarterplanet
Healthcare
Public Safety BuildingsProducts Cities
Water
Work
Retail Intelligence TelecomRailTraffic
Energy
InfrastructureFood
GovernmentBankingOil
TrafficHow we get from point A today to point B tomorrow
BuildingsGiven their environmental impact, it's time we designed from the earth up
OilGet to the "first" oil faster. Increase recovery rates. Sense and solve problems before they start.
WaterWhether too much or not enough, the world needs a smarter way to think about water
CitiesSafe neighborhoods. Quality schools. Affordable housing. Traffic that flows. It's all possible.
IntelligenceSmart thinking about data analysis
Building a Smarter Planet
6© 2010 IBM Corporation
The Bad News: IT accounts for 2% of global CO2 emissions
The Good News: IT can significantly contribute to control and reduce the 98% of CO2 emissions
caused by other activities and industries
Sources: Gartner, Green IT, October 12, 2007; “The Green Road Less Traveled” by Thomas L. Friedman, The New York Times, July 15, 2007, http://select.nytimes.com/2007/07/15/opinion/15friedman.html?scp=2&sq=thomas%20l%20friedman%20july%202007%20greener%20smarter&st=cse
“… you can’t make a product greener, whether it’s a car, a refrigerator or a traffic system, without making it smarter — smarter materials, smarter software or smarter design.” - Thomas L. Friedman
Energy & Environment Focus
Building a Smarter Planet
7© 2010 IBM Corporation
Tackling climate change is good for the climate and economy
Information and Communications Technology (ICT) can significantly improve energy efficiency and reduce GHG
emissions, driving potentially $1 Trillion in energy savings per year by 2020 and 7.8 Gigatons CO2e abatement
Smart Logistics: $442B/year
Smart Industrial
Automation: $107B/year
Smart Buildings: $341B/year
Smart Grids: $125B/year
Source: The Climate Group, “Smart 2020: Enabling the Low Carbon Economy in the Information Age.” 2008
Building a Smarter Planet
8© 2010 IBM Corporation
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 to optimize smarter decisions
Feed
back
to u
ser a
nd d
ata
sour
ce;
Ince
ntive
s an
d ac
tions
to c
hang
e be
havio
r
Feedback to user and data source;Incentives and actions to change behavior
Comparison of historical data, with newly collected data
Data collection
Data Integration
Source: IBM Corporate Strategy
What does it mean to become Smarter?
Our world is becoming INSTRUMENTED
Our world is becoming INTERCONNECTED
Virtually all things are becoming INTELLIGENT
Building a Smarter Planet
9© 2010 IBM Corporation
Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Improve environment Stockholm case study: Reduced traffic
congestion 25%, Carbon emissions 15%
Smarter Transportation Systems
Sustainable Business Solutions & Services Strategy Corporate Social Responsibility Green Sigma TM Green SNOW - Supply Chain Network
Optimization Workbench Smarter Cities Smarter Buildings Cap and Trade Systems
Smart Grid Reduce energy usage Improve grid management, reduce outages U.S. case study: 10% energy use reduction,
up to 50% reduced load on electric grid
IT and data center facilities energy efficiency Monitoring & verification of efficiency goals Energy Efficient, Virtualized, Dynamic IT/DC Cloud computing IBM and client case studies: 40% to 80% energy
use reduction, up to 85% less floor space
Smarter IT Infrastructure
IBM innovations address energy & environment challenges
Reduce traffic and pollution Retain and attract talent Cut facility costs/impact
Mobility Services
Smarter Water Management Flood avoidance Reduce water usage IBM case study: 27% reduced water usage, with 30% increase
in manufacturing output, saving $M in energy and water cost
Alternative Energy Research IT to ET: Applying IT cooling technologies to concentrator PV IBM know-how in thin films, advanced photovoltaic materials Nanomembranes for desalination Energy storage, modeling and analytics for optimization in
energy efficiency and renewable energy, etc.
Green IT and Data Centers
Building a Smarter Planet
© 2010 IBM Corporation
• Energy Efficient Technologies and Services
• Intelligent Transportation Systems
• Intelligent Utility Networks
• Advanced Water Management
• Sustainable Solutions & Services
– Green Supply Chain – Green SNOW– Green Sigma TM
– Smarter Buildings– Cap and Trade Systems– Smarter Cities
• Alternative Energy Research
Energy, Environment and Sustainability Initiatives helpBuild a Smarter Planet – Delivering Innovations that
matter to business, government, people and the planet
Building a Smarter Planet
© 2010 IBM Corporation
Energy efficient solutions:Green IT and Green DatacentersServers and storage continually more energy efficientNew and retrofit equipmentRear Door Heat ExchangerMeasurement & Management TechnologyMonitoring & verification of efficiency goals through Energy Efficiency CertificatesVirtualization, consolidation
Benefits and studies: 40% to 80% energy use reductionUp to 85% less floor space
Energy Efficient Technologies and Services
© 2010 IBM Corporation 12
IBM Cloud Computing
“Cloud” is a new consumption and delivery model inspired by consumer Internet services.
Cloud enables:
Self-service Sourcing options Economies-of-scale Ecosystems creating economic value
Cloud represents: The industrialization of delivery for IT supported services
Multiple types of clouds will co-exist: Private, Public and Hybrid Workload and / or Programming Model Specific
Cloud Computing
© 2010 IBM Corporation 13
IBM Cloud Computing
Analytics Collaboration Development and Test
Desktop Storage Business Services
Fit for purpose middleware platform
Common Compute Platform(Compute/ Network/ Storage)
Base Enterprise Platform
Blue Insight: Smart Business Analytics Cloud
109,000 IBM users growing
to 200,000
LotusLiveHandling 75% of all IBM web conferencing
CIO Dev/Test Cloud
• Build time for dev/ test
environment from 1wk to 1hr • Clients reduce labor costs 30-
50%
Workplace Cloud
• Estimated savings up to
30% • 1200 China Dev Lab users plus
Call Centers
Network Storage Cloud
• Up to 40% savings in storage
costs
Production Cloud•1,000 applications
identified
IBM uses cloud computing to meet internal and external challenges and opportunities, saving millions of dollars
© 2010 IBM Corporation 14
IBM Cloud Computing
Compute and Storage CloudsEnterprise-class Infrastructure Services
Compute and Storage CloudsEnterprise-class Infrastructure Services
Additional Industry Cloud
Platforms
Additional Industry Cloud
Platforms
Industry Services
Industry Services
Retail Industry Cloud Platform
Retail Industry Cloud Platform
e-Commerce Services
Demand Replenishment
Services
Healthcare Industry Cloud Platform
Healthcare Industry Cloud Platform
Public Health
Services
Clinical Development
Services
Collaborative Health Care
Services
Medical Image Archive Service
Industry Vertical
Business Services
Workload Optimized
Industry Cloud
Platforms
On a platform of
robust Infrastructur
e Services
Cloud enables global industry transformations – Creating new centers of economic activity fueled by an information supply chain
Building a Smarter Planet
© 2010 IBM Corporation
Intelligent Transportation Systems Integrated transportation solutions:
Road user chargingCongestion pricingIntegrated fare management
Benefits:Reduce traffic congestionReduce CO2 emissionsIncrease mass transit usageImprove environment
Stockholm case study with clear results: Reduced traffic congestion 25%Reduced carbon emissions 15-40%$120M/yr in revenue to City, 4 yr paybackCongestion charges fund transit improvements
Building a Smarter Planet
© 2010 IBM Corporation
Intelligent Utility Networks
Smart Grid Solutions:Smart grid management
Smart metersSmart appliancesSmart integration
Real-time energy marketDynamic response to constraints on the grid
Benefits in PNNL case studyReduced peak load demand on the energy grid 15% to 50% Reduced consumer energy bills by 10%
150 & 350 KWPower Generator
Application Server
600 HP Water Pump
Thermostat
Space Heater
Water Heater
Meter
LCM
GFA
LCM
Dryer
Energy Market
Port Angeles Water Supply
PNL
Pacific Northwest National Lab (PNNL) Shadow Market
Load Sheddi
ng
Heat Storage
PNL Application Web Server
Internet
Additional DR
Control/ Application
Server
Residential Home
Invensys Home Gateway
125 Residential Homes
Invensys Application/ Web Server IBM: Event Bus & Event-
based Programming Model
Building a Smarter Planet
© 2010 IBM Corporation
Smarter Water Management Strategic Water Information Management Solutions –
SWIM Sensing and Monitoring Data Integration, Workflow, Management Deep Thunder – Advanced Micro-weather prediction Storm Impact and Response Prediction
IBM Advanced Water Management Centers of Excellence Amsterdam, Netherlands Dublin, Ireland
Benefits Flood forecasting, predictive modeling Environmental analysis & prediction Reduced water usage and costs IBM case study: 27% reduced water usage, 30% increase in manufacturing output, saving $M in energy and water
REON- River & Estuary Observatory Network
18
Building a Smarter Planet
© 2010 IBM Corporation
Green Sigma™ grew from IBM’s deep internal experience in facilities and manufacturing process improvement
Green Sigma™ is aimed at reducing energy & water, waste generation and CO2 emissions throughout a company’s operations, resulting in:
–Lower environmental impact– Increased efficiency–Reduced costs
The key components are:
Metering and Monitoring
Management through the Green Sigma™ Dashboard
Applied Statistical Techniques3
2
1
““If you can measure it, you can manage it”If you can measure it, you can manage it”
19
Building a Smarter Planet
© 2010 IBM Corporation
The Green Sigma™ Dashboard for Energy proactively monitors KPI data, alerts and trends, and enables drill-down analysis…
20
Building a Smarter Planet
© 2010 IBM Corporation
Similarly, the Green Sigma™ Dashboard for Water monitors KPI data, alerts and trends to drive Water related benefits
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
21
What are smarter buildings?Smarter Buildings are well managed integrated physical and digital infrastructures that provide optimal occupancy services in a reliable, cost effective, and sustainable manner.
Smarter Buildings…
Are more cost effective by reducing energy and operating costs.
Use active and designed-in techniques to achieve efficiency and environmental responsibility.
Have the ability to interact with occupants inside them as well as the environment around them.
Maintain a safer and more secure workplace.
Communicate in real-time to supporting infrastructure ( i.e. smart grid, broadband, etc.).
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
22
FireFunctionality
checks,Detector service
WaterSmart Meters,
Use / Flow Sensing
HVACFans, Variable Air
Volume, Air Quality
ElevatorsMaintenance, Performance
Access/SecurityBadge in,
Cameras, IntegrationPerimeter, Doors, Floors, Occupancy
LightingOccupancy
Sensing
24/7 MonitoringCondition Monitoring, Parking Lot Utilization
EnergySmart Meters,
Demand response
How does a building become smart?
Voice/Video/Data
Community Services
Transportation, Traffic, Events
Community Services
Transportation, Traffic, Events
UtilitiesDemand Mgmt,
Cost Control
UtilitiesDemand Mgmt,
Cost Control
WeatherCurrent
Predictions
WeatherCurrent
Predictions
Emergency Services
Alerts, Actions
Emergency Services
Alerts, Actions
Commercial Potential
Advertisement
Commercial Potential
Advertisement
Integrated Building & Communications Services
An
alytics and
O
ptim
ization
Ext
ern
al
Inte
gra
tio
n
PortfolioEstates MgmtPortfolio
Estates Mgmt
OccupancySpace Mgmt
OccupancySpace Mgmt
Waste MgmtTrash/Water/Recycle
Waste MgmtTrash/Water/Recycle
ComplianceEnvironmental reports
ComplianceEnvironmental reports
Tenant ServicesHelp Desk
Tenant ServicesHelp Desk
Asset MgmtLifecycle
Asset MgmtLifecycle
Building ServicesMaintenance
Building ServicesMaintenance
Industry Specific Hospital, hotel, etc.
Industry Specific Hospital, hotel, etc.
Energy UsePassive/ActiveEnergy UsePassive/Active
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
23
What does it mean to be a Smarter Building? The interconnection of physical assets and information technology can optimize efficiency, production and consumption in many types of buildings.
Smarter Commercial Building
Smarter CampusSmarter Data Center
Provides integrated facilities operations information for owners/operators in order to optimize energy usage and services based on tenant’s needs.
Integrated facilities and IT insight to energy efficiency of datacenter and the correlation of IT and facilities information.
Intelligent infrastructure platform and tools to manage plug-in electric vehicle stations, buildings, badging, central utility plant
Smarter Cell Tower
Integration of active and passive management enables optimized operations to reduce truck rolls.
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
24
What does it mean to be a Smarter Building? The interconnection of physical assets and information technology can optimize efficiency, production and consumption in many types of buildings.
Smarter Hotel Smarter Airport
Smarter Government BuildingSmarter Hospital
Integration of all the guest subsystems of hotel that welcome guest according to their preferences and adds to convenience during stay.
Sensor instrumentation used in real-time for asset location and automated workflows such as medical equipment maintenance.
Provides efficient passenger and cargo services, climate control, wi-fi access, track maintenance tasks and help achieve security and safety compliance
Utilize fully serviced office hubs and mobility tools to improve public services. Match occupancy levels with portfolio wide estates data to optimize building utilization.
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
25
Smarter Buildings applications and benefit examples.
SMART ISHolistic energy mgmt that enhances the efficiency of buildings and other assets.
St. Regis Hotel:Designed for 4.9% energy cost to revenue compared to average for 5 star hotels average at 8%. Reduced energy cost / revenue 40% vs. similar 5 Star hotels.
SMART ISIntegrated communications and building services that support intelligent operations.
Ave Maria University:Converged 23 systems to single IP network. Integrated JCI Metasys with IBM Maximo. Saved $1M in building costs and $350K/yr in combined operating costs.
SMART ISIntegration of energy and asset management to lower operating cost.
Saint Barnabas Medical Center:Improved asset utilization and staff response times by 90%. Reducing overhead paging by 94%. Enhancing HCAHPS scores by eliminating communication barriers between care teams and patients.
Building a Smarter Planet
26© 2010 IBM Corporation
Electronic Peephole Better views of hallway Connect directly to the TV in the
guest room
Page 26 <Document Title> | <Date>
Self check in / check out Kiosk Equipped with Passport / ID reader Equipped with Hotel key card dispenser Saves time for client for check in/out
Integrating more than 20 sub-systems using IBM’s integration skills and latest technology.
“In the hotel industry, technology can make a real difference by significantly enhancing the customer experience and maximize their comfort and satisfaction," said Eric Du, General Manager,
Dragon Hotel. "Through the cooperation with IBM, Dragon Hotel would be able to build a Smart Hotel system to improve significantly the operational efficiency and productivity, the response
time to client demands, and most of all, the client experience."
China Hangzhou Dragon – Smart Hotel Reference
Source: http://www.reuters.com/article/idUS124088+14-Jul-2009+PRN20090714
Building a Smarter Planet
27© 2010 IBM Corporation
Initial focus areas on expense / efficient operations
– Maximo: facilities and asset management integrated with energy management
– Integrated Communications Services, Green Data Center
– Property Performance Management Solution, Asset Management and Asset Analytics including portfolio analysis
– Aggregation and analysis of data across multiple buildings – performance management dashboards, building data visualization, real-time monitoring
– IBM's Green SigmaTM coalition – partnerships to integrate the physical and digital infrastructure
Smarter Building Entry Points and Value
Building a Smarter Planet
© 2010 IBM Corporation
Carbon Reporting and Trading – Cap and Trade
Systems Players and participantsGovernmentExchangesBrokersEnterprises and UtilitiesCarbon Credit Creators – CC&S
EvolutionEU Emission Trading SchemeAsian interestUS evolving – voluntary, regulated, regional, national?
Solutions today for Carbon reporting software Potential benefit: Reduced GHG emissions
GovernmentGovernment
Creates and Creates and regulates the regulates the
schemescheme
ExchangesExchangesRun the Run the Trading Trading platformplatform
EnterprisesEnterprisesManage and Manage and
Report Report Carbon Carbon
EmissionsEmissions
Building a Smarter Planet
© 2010 IBM Corporation
Smarter Cities Bring it All Together – with intensive use of information technologies for
sustainable developmnet
Intelligent Transportation Systems- Road Usage Charging/Congestion Pricing- Integrated Fare Management- Traffic Information 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
Building a Smarter Planet
© 2010 IBM Corporation
Energy Management in a Smarter Planet
The interconnection of physical assets and information technology can optimize energy production, efficiency and consumption
Smarter BuildingsIntegrated and optimized physical and digital infrastructures to create cost effective and operationally efficient buildings and micro grids – energy, water, waste, GHG management
Smarter BuildingsIntegrated and optimized physical and digital infrastructures to create cost effective and operationally efficient buildings and micro grids – energy, water, waste, GHG management
HomesEnergy and Water Management - Central control and connection of
home systems - electronics and community micro grids
HomesEnergy and Water Management - Central control and connection of
home systems - electronics and community micro grids
AppliancesAutomatically adjust power usage based on grid status
AppliancesAutomatically adjust power usage based on grid status
Vehicle ChargingSmart charging of hybrid & electric vehicles
at home and at commercial locations
Vehicle ChargingSmart charging of hybrid & electric vehicles
at home and at commercial locations
Distribution CompanyDistribution management
Energy supply chainNetwork operation
Distribution CompanyDistribution management
Energy supply chainNetwork operation
Electric CompanyCustomer account management
Time of use managementEnergy management
Electric CompanyCustomer account management
Time of use managementEnergy management
CentralPower Plant
MetersDigital link with power company to enable energy optimization
and time-of-use savings
MetersDigital link with power company to enable energy optimization
and time-of-use savings
Energy Exploration, Production and Generation – Coal, Oil, Gas Nuclear, Hydroelectric Solar, Wind, Geothermal
Energy Exploration, Production and Generation – Coal, Oil, Gas Nuclear, Hydroelectric Solar, Wind, Geothermal
Commercial and Government Buildings
Solar and Wind Farms
Industrial Plants
Building a Smarter Planet
© 2010 IBM Corporation
• Leverage know-how in thin films, semiconductors, silicon, materials science, cooling for photovoltaics including concentrator photovoltaics
• Energy Storage Research – Lithium/Air
• Nanomembranes for Reverse Osmosis filtration of salts and other toxins from water for desalination
• Modeling analytics for optimization in energy efficiency and renewable energy
• Cyber-security research and development
• IBM Center of Excellence for Nuclear Power in LaGaude, France
IBM Energy and Environment Research
Building a Smarter Planet
32© 2010 IBM Corporation
Collaborating to develop solutions …
IBM has a long history of environmental tradition and leadership.
1971: T. J. Watson Jr. issued IBM’s first corporate policy on environmental protection
1976: Think!, the company magazine, devoted an entire issue to IBM’s energy conservation and environmental programs
1989: IBM offers its first product take-back program
1987 - 2006: Reduction in hazardous waste generation since the 1987 base year of this pollution prevention metric
95%
2007: Invested in Intelligent Utility Networks, Intelligent Transportation Systems, Project Big Green
2006: IBMers “Jam” on innovation for a better planet, and IBM invests in Big Green Innovations
2006: Amount of IT product and product waste processed by IBM’s product End-of-Life Management operations that was reused or recycled
96%
1990 - 2006: Between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO2 emissions equal to 44% of its 1990 emissions
44%
1990: Think! Devoted an entire issue to IBM’s environmental programs – beginning IBM’s annual Corporate Environmental Reporting
1991: Established IBM’s Product Stewardship Program
1992: IBM becomes charter member of Energy Star Program
1994: Established Global Materials Recovery Center Network for product re-use and recycling
1997: IBM becomes the first major multi-national to earn a single global registration to the ISO 14001 environmental management system standard
© 2010 IBM Corporation
Sustainability on a Smarter Planet: Smarter Buildings
33
IBM’s Commitment to Energy Efficiency – Actions and Results
IBM develops and deploys Green projects to save Millions of $ per year– Green IT– Green Datacenters– Smarter Buildings– Smarter Water Management– Smart Grid– Renewable Energy
Between 1990 and 2009, IBM saved over $370M through energy conservation actions– Saving 5.1 B kWh of electricity consumption– Avoiding nearly 3.4 million metric tons of CO2 emissions– Annual energy conservation/efficiency goal is 3.5%+ per year– First established IBM Corporate Policy on Energy Conservation in 1974
In 2009, IBM energy efficiency projects saved 5.4% energy use and $27M in energy costs
Building a Smarter Planet
34© 2010 IBM Corporation
The Green Sigma™ Coalition
Working together to co-create a Smarter Planet, Smarter Cites, Smarter Buildings - Accelerating the move toward sustainable enterprises - Collaborating on showcase projects to drive quick ROI & continuous improvement- Enabling public & private enterprises to reduce energy, water, waste and GHG
Emissions… across the value chain. Saving money, time and resources.