XXI CEO Summit Hungary Harry van Dorenmalen, Chairman, IBM Europe How Smarter technologies are helping Europe progress

XXI CEO Summit Hungary Harry van Dorenmalen, Chairman, IBM Europe How Smarter technologies are helping Europe progress

Are you ready?!

500,000,000 GB 15 petabytes 1 trillion 1 billion + transistors 30 billion RFID tags 2 billion people global internet traffic volume expected by 2013 of new information being generated every day devices attached to “Internet of things”are on the internet embedded into our world and into our products for each person on the planet We live in an instrumented, interconnected, intelligent world

Tackling problems that are relevant Health CarePublic Transport Law EnforcementEnvironment Government Telecom ManufacturingTraffic ControlFraud Prevention …in all aspects of the economy

Trends 1: Leading the evolution of the thinking machine Counting Machine (Circa 1820) ENIAC (Circa 1945) Deep Blue (1997) Watson (2010) Learning Systems Astronomical Computer (87 BC) Abacus (Circa 3500 BC) Napier’s Rods (Circa 1600) Computer Intelligence Over Time The New IT Frontier Cognitive computing aims to create computer systems that can deal with ambiguity and learn over time

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

Trends 3: Cities are getting smarter 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 Intelligent Energy

Standouts capitalize on complexity in three ways Creativity is #1 leadership quality Drive change in the organization to stay ahead of market and use a wide range of communication styles and tools Break with status quo of industry, enterprise and revenue models “Getting closer to customers” is the single most important theme Better understand customer needs through collaboration and info sharing Exploit the information explosion to deliver unprecedented customer service Simplify operations and products to better manage complexity Use iterative strategies, make quick decisions and execute with speed Integrate globally, increase cost variability and exploit partnering to increase agility

If nothing changes, nothing changes: What did you do different? Do you –personally- have the global network and reach to make change happen? Did your skillset changed / improved in the past year? Are you working on solutions for which we did not define the problem yet? Did you notice that the talent in your organization is changing? 11 Are you ready?!

“How will people remember you?”

Let’s Build a Smarter Planet

Are you ready?!

Agenda What’s going on in the world 1 Where technology is heading 2 How to make it work for you 3

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 billion Global 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 What problems are we trying to solve? 25 billion 3.7 billion

A Smarter Europe – a brief selection Smart traffic systems – London, Amsterdam Smart water management, Malta Smart healthcare – BG Trauma Hospital, Hamburg Smart food systems – Matiq, Norway Smart oil field technologies – Statoil, Norway Smart regions – Venice Smart weather - Rotterdam Smart travel - Finnair Smart cities - Berlin Smart retail – Metro, Germany

Watson – towards ‘thinking’ technology  Answers questions in natural language  Made possible by:  Advances in natural language computing  Enormous computational power  World’s info digitized  Begins new era in making sense of massive amounts of data through advanced analytics Are you ready?!

Let’s Build a Smarter Planet