A Smarter Planet: The Next Leadership Agenda

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A Smarter Planet The Next Leadership Agenda
Prime areas to consider for improvement
How much energy we waste too much lost because
grids are not yet smart
How gridlocked transportation in cities is tens
of billions 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 at twice rate of population growth
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
Crisis in financial markets inability to track
risk has undermined confidence
Cities
Source Sam Palmisano remarks to the Council on
Foreign Relations, New York City, November 6, 2008
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then
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Collaboration will be the most critical
capability for government Organization, culture
and governance Partnerships, intermediaries and
exchanges Personalized interaction and
services Knowledge creation and sharing
Global reaction
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In response to the crisis, national authorities
and regulators have been collaborating at
unprecedented levels
Just as no government on its own can combat
global terrorism or tackle climate change, so no
government alone can put in place the right
supervisory safeguards in this global economy.
Alistair Darling, UK Chancellor of the Exchequer
Brown
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Stimulus spending sets out to invest in many
areas relevant to building a smarter planet (but
we should and would be doing this regardless of
the recession)
SAMPLE STIMULUS AND RECOVERY PACKAGES
Source ITIF September 09 Note China had
extensive infrastructure investments already in
plan proportion that is infrastructure varies
by country
The argument
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The nature of infrastructure invested in now may
determine the future path of economic development
Building the smarter planet
Mega-trends shaping the world mean that
governments must choose to effectively respond to
the current crisis and longer term challenges
Higher longer term growth
Fiscal stimulus
Boost growth
Higher productivity
Globalisation
Increase employment
Exit from recession
More efficient economy
Up-skilling
Investment in infrastructure smart? traditional?
Political stability
Technology impact
Interconnected gt Instrumented gt Intelligent
Tax breaks
Societal changes
Analogue gt Legacy gt Stand-alone
Environmental concerns
Demographics
Financial crisis
Boost growth
Increase employment
Exit from recession
Rising deficits
Slower growth
Lower longer term growth
Rising unemployment
Lower productivity
Following the traditional path
Less efficient economy
1990 2009 2030
ITIF
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Investments in such digital infrastructures will
have a greater positive impact on jobs,
productivity, and innovation than investments in
traditional physical infrastructure

• Investments in the digital infrastructure will
  lead to
• Short term significant job creation
• Superior job creation (network effect).
• Higher productivity, increased competitiveness

Estimates of U.S. Jobs Created or Retained by
Investments in Network Infrastructures
Source Robert D. Atkinson, Daniel Castro and
Stephen J. Ezell The Digital Road to Recovery A
Stimulus Plan to Create Jobs, Boost Productivity
and Revitalize America The Information
Technology Innovation Foundation, January 2009.
inaug
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Our health care is too costly our schools fail
too many the ways we use energy strengthen our
adversaries and threaten our planet everywhere
we look, there is work to be done. The state of
the economy calls for actionbold and swift and
we will act to create new jobs to lay a new
foundation for growth. We will build the roads
and bridges, the electric grids and digital
lines we will restore science to its rightful
place, and wield technology's wonders to raise
health care's quality and lower its cost. We
will harness the sun and the winds and the soil
to fuel our cars and run our factories. And we
will transform our schools and colleges and
universities to meet the demands of a new age.
We will work tirelessly to lessen the nuclear
threat, and roll back the specter of a warming
planet. the world has changed, and we must
change with it.
Is it working
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Yes, the world has changed.
but
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But the planet is becoming smarter

• The systems, infrastructures and processes that
  underpin how business and society function are
  becoming digitally aware instrumented,
  interconnected, infused with intelligence
• From how services are delivered to the movement
  of people, money, oil, to how billions of people
  work and live
• Smart energy, smart financial and insurance
  systems, smart traffic systems, smart energy,
  retail, food, cargo, healthcare
• This is a new frame of reference that offers
  enormous promise for economic growth and societal
  progress.

recovery
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Recovery with a lasting legacy will change
industries, processes, workforces buildings,
transport, communications standards and metrics
society
Focus in a downturn
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The fiscal stimulus and economic recovery
opportunity presents the world with a
transformational momentFiscal stimulus
investment for economic recovery in the twenty
first century must leverage the elements of
modern infrastructure. Converging the digital,
physical, natural and human infrastructures will
help to lead the world out of the current
crisis.We can leave a lasting legacy of
smarter infrastructure the Smarter Planet.
THE ARGUMENT
jobs
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Stimulus spending can help to progress the vision
of a smarter planet
SP themes
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INSTRUMENTED
Sensors are being embedded across entire
ecosystems supply chains, healthcare networks,
cities, natural systems We will be able to
sense, measure and see the condition of
everything.
Transistors
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In 2001, there were 60 million transistors for
every human on the planet ... by 2010 there
will be 1 billion per human each costing 1/10
millionth of a cent.
RFID
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In 2005 there were 1.3 billion RFID tags in
circulation by 2010 there will be 33 billion.
Interconnected
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INTERCONNECTED
People, systems and objects are communicating
and interacting with each other in entirely new
ways. Cars, appliances, cameras, roadways,
pipelines even pharmaceuticals and livestock.
Web connections
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An estimated 2 billion people will be on the Web
by 2011 ... and a trillion connected objects
cars, appliances, cameras, roadways, pipelines
comprising the "Internet of Things."
Mobile phones
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Worldwide mobile telephone subscriptions reached
3.3 billion in 2007 and should reach 4 billion
by the end of 2008. In the fourth quarter of
2007, in the USA, texts exceeded voice calls for
the first time.
camera phones
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One billion camera phones were sold in 2007, up
from 450 million in 2006 3G devices growing
30 p.a.
Intelligent
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INTELLIGENT
The amount of information produced by the
interaction of all those things will be
unprecedented.
information
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15 petabytes
1 petaflop
1 square kilometer
Every day, 15 petabytes of new information are
being generated. This is 8x more than the
information in all U.S. libraries.
Scientists are working to prevent influenza
pandemics by modeling the viruses with a
supercomputer that can operate at one petaflop,
or one quadrillion operations per second.
New analytics enable high-resolution weather
forecasts for areas as fine as 1 to 2 square
kilometers.
Instrumented
Interconnected
Intelligent
road
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New computing models (cloud, high performance
computing, parallel, stream) can handle the
proliferation of end-user devices, sensors and
actuators and connect them with back-end systems
With advanced analytics we can turn these new
mountains of data into intelligence and
insight that can be translated into action,
making our systems, processes and infrastructures
more efficient, productive and responsive.
landscape
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Smarter planet
A new landscape of potential And an opportunity
for every business and government to think and
act in new ways.
cities
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(Most) connections the world is making are at the
city level The 21st century will be a century
of cities Wellington Webb
half
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2007 was the first year in which more than half
the world was living in cities. By 2050 it
will be 70. Every minute for the next 20
years, 30 Indians will leave rural India for
urban India. They will need 500 new cities. So
our Smarter Planet will be built by the cities
of the world
why
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Perhaps nowhere besides the city can we
simultaneously increase the efficiency and
sustainability of these systems to create the
most livable environment for the greatest number
of people.
microcosm
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The city is a microcosm of the major challenges
and opportunities facing the planet
todayintensified and accelerated. Here, all
man-made systems come together and interact with
one another.
Government services
Transportation
Energy and Utilities
Education
Public safety
Healthcare
visions
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There are many different visions of what smarter
cities might be
A showcase for urban planning concepts
A mission control for infrastructure
A self-sufficient, sustainable eco-city
A totally wired city
ICT
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But they will leverage information and
communications technologies
Intelligent Transportation Systems - Integrated
Fare Management - Road Usage Charging - Traffic
Information Management

• Public Safety
• - Surveillance System
• Emergency Management Integration
• - Micro-Weather Forecasting

• Energy Management
• - Network Monitoring and Stability
• - Smart Grid Demand Management
• Intelligent Building Management
• Automated Meter Management

• Telecommunications
• Fixed and mobile operators
• Media Broadcasters

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

• Environmental Management
• City-wide Measurements
• KPIs
• CO2 Management
• Scorecards
• Reporting

Intelligent systems
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Smarter energy and utilitiesAn opportunity to
reduce energy use by up to 15By providing
real-time information about the flow of energy,
an intelligent utility system helps citizens and
utilities make smarter, more responsible choices
about the way they buy, sell and manage
electricity.
Smarter healthcareAn opportunity to
dramatically lower the cost of therapy A smarter
healthcare system forges partnerships and makes
better use of data in order to deliver excellent
care, predict and prevent disease and empower
people to make smarter choices.
Smarter public safety Because up to 45 of a
citys budget goes to public safety A smarter
city uses advanced technologies and
community-based approaches to anticipate and
preventnot just respond tocrimes and
emergencies.
Smarter education An opportunity to nurture
our most valuable resource Smarter cities take a
systemic view of their education systems,
evaluating students in multiple dimensions and
equipping them to perform better both inside and
outside traditional classroom environments.
Smarter government services An opportunity to
deliver needed services to all citizens
Increased information sharing and collaboration
drives smarter decision-making across government
agencies, service providers and other
constituents.
Smarter transportationAn opportunity to cut
traffic by as much as 20 Cities can infuse
intelligence into their entire transportation
system, improving drivers commutes, giving
better information to city planners, increasing
the productivity of businesses and raising
citizens quality of life.
Cities
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Cities are centers of growth, and the keys to
connectivity and competitiveness

• Playing increasingly large roles in
• Creating wealth
• Enhancing social development
• Attracting investment
• Harnessing human and technology resources to
  create productivity and competitiveness gains
• Some cities outpace entire countries in economic
  output

New York, LA, Chicago, Boston and Philadelphia
together, the fourth largest economy in the
world. Sao Paolo and Bangkok each have 10 of
their respective countrys total population, but
account for 40 of GDP
infra
IBM MI, UN World Urbanization Prospectus, 2007 rev
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Smarter Infrastructure
Building or renewing a bridge today means making
sure the bridge can tell us, over its lifetime,
how its feeling
energy
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Enhanced energy distribution
Your washing machine will bid for electricity.
And your neighbors solar cells might provide it.
Building intelligence into utilities lowers
costs, better balances supply and demand, changes
consumer behaviour
production
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Wider energy production
Energy saving solar technology will be built
into asphalt, paint and windows.
cleaner
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Cleaner water
Smarter ways to manage water supplies
providing analytics and research capabilities on
the behavior of watersheds and the impact of
human activities on freshwater supplies an
example is the Hudson River network of integrated
sensors, robotics and computation.
clearer
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Clearer ecosystem - SmartBay
Marine Institute Ireland and IBM pilot
information system to monitor wave conditions,
marine life and pollution levels, floating
hazards, etc. in and around Galway Bay.
safer
From Wikimedia user Bhalash
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Safer water
Rotterdam is connecting sensors on sea walls,
tide measurement, weather forecasting, with
incident management and command and control.
supply
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Secure, effective supply chains
Innovative tracking systems do more than help
shippers manage supply chains - they improve
utilisation and monitor the condition of
container contents... temperature and humidity
readings, intrusion alerts, quicker customs
clearance and more
food
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Healthier food
A food tracking solution (this one the first of
its kind in the Nordics) uses RFID to track and
trace meat and poultry from the farm, through the
supply chain, to supermarket shelves.
Cleaner traffic
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Cleaner traffic

• London, Singapore and Stockholm are deploying
  smarter traffic systems. At least 20 other
  cities have active bids to do the same.
• Stockholm has seen approximately 20 percent less
  traffic, a 12 percent drop in emissions and a
  reported 40,000 additional daily users of public
  transportation.

easier
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and easier traffic
Queensland free flow cashless tolling using
transponder and video methods, and brings in
business intelligence, demand management, and
advanced video algorithms.
Simpler rail
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Simpler travel
Embedded intelligence, analytics and optimization
are reshaping the grandfather of the
transportation industry integration of
information, payments, etc. across transportation
modes.
Wikimedia user Roger Haworth
shield
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Better awareness
Cities are digitizing their law enforcement
practices and deploying smarter surveillance
systems for example, using audio sensors to
direct cameras to locate gunshots, determine the
caliber of gun fired and pinpoint its exact
location, to aid in dispatch.
nypd
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Timely analytics and insight
Real time crime center in NYPD joins and analyses
billions of records from multiple sources. It
used to take us days to find a number or an
address. Now we send stuff to detectives who are
literally standing in the blood.
fire
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More effective firefighting
Collect and share real time data on building
inspections, link with maintenance databases
provide firefighters with up to date information
where and when they need it predict where
certain type of fire will happen
Medicine
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Personalised medicine
A Google Earth for the body? Your personal
medical avatar providing dynamic health status
in real time, allowing doctors to visualize
patient medical records in an entirely new way
telemedicine
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Wide ranging care delivery
Convergence of medical services and consumer
electronics care at a distance
V Web
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Broadening economic participation
You will talk to the Web. And it will talk back.
Voice-enabled mobile commerce... voice sites
helping the illiterate, the elderly, the
economically disadvantaged, to do business.
shopping
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Personalised assistance
You will have your own personal digital shopping
assistant. What else could it help you with?
Think about this for government and healthcare.
cloud
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Cloud delivery
A cost-effective platform and a game-changing
enabler of transformation
greener
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Greener computing
The largest supercomputer center in Europe -
flexibly designed state of the art technology,
built, powered and cooled within 1600 square in
a beautiful 18th century church.
people
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Smarter Work
People, learning, and development Workforce
development, schools modernization,
teleworking Example - Green jobs from
environmental assessment and remediation
Start small
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Starting with small projects
Salerno - route for the blind from parking to the
Verdi Theatre Smart tourist route within the
famous citizen park in the old town I am well
distance health monitoring Urban traffic
monitoring, control and information
governance
Credit wikimedia commons user giaro
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How will you infuse intelligence into your citys
systems to create opportunity, improve quality of
life, and compete on a global scale?
end
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Towards a sustainable city Dubuque
Known for its focus on sustainability, Dubuque
and IBM will explore how technology can affect
resource consumption behaviour, city management,
and the relation of a small city to its
environment
permission
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Smarter city examples
Transportation
Government services
Education
Energy and utilities
Healthcare
Public safety
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Transportation
Stockholm implemented an intelligent toll system
in the city center, which resulted in 20 less
traffic, 40 lower emissions and 40,000
additional users of the public transportation
system.
To encourage citizens to use multiple modes of
transportation and make it easier to align the
cost of transit with its impact on the
environment, Singapore implemented fare
management with smart cards that can be used to
pay for buses, trains, taxis, road-use charging
and parking.
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Energy and utilities
CenterPoint Energy in Houston is installing over
2 million smart meters and in some cases an
energy controller for household devices.
Homeowners will be able to access their usage
information in home displays or on a personal
website to make smarter consumption decisions.
DONG Energy in Denmark installed monitoring
devices across their distribution network. The
increased insight into the grids performance
will potentially lessen outage times by up to 50
and reduce maintenance investments by up to 90.
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Public safety
New York built its Real Time Crime Center to
conduct rapid analysis of crimes and provide
real-time information and assessment of emerging
crime patterns and suspects
Rotterdam is designing and testing of a
monitoring and forecasting system for smarter
water and energy management
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Government services
Alameda County is capturing fragmented data and
matching clients across programs. This allows
case workers and partners to impact outcomes
before children and families become casualties of
the complexity of the current system. In addition
it promises to reduce fraud and cost.
The then Cheshire County Council achieved a 20
reduction in time and cost required to perform
in-home senior visits, improving the ability to
proactively manage the course of health and
social care for senior citizens.
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SOME OBJECTIVES GAIN IMPORTANCE IN A DOWNTURN
Stimulus spending