1. Building a Smarter Planet
Rui Serra
IBM Central Africa Regional Leader

2. 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.
The reality of living in a globally integrated world is upon us.
But the meltdown of our financial markets has jolted us awake to the realities and dangers of highly complex global systems.
In truth, the first decade of the 21st century has been a series of wake-up calls, with a single subject: the reality of global integration:
Frozen credit markets and limited access to capital
Economic downturn and future uncertainty abound
Energy shortfalls and erratic commodity prices
Information explosion and risk/opportunity growth
Slowing superpowers and emerging economies
Increasingly complex supply chains and empowered consumers
Global integration is changing the corporate model and the nature of work itself. But we now see that the movement of information, work and capital across developed and developing nations—as profound as those are—constitute just one aspect of global integration.
These collective realizations have reminded us that we are all now connected – economically, technically and socially.
But we’re also learning that just being connected is not sufficient

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

4. 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
What all of this means is that the digital and physical infrastructures of the world are converging.
Computational power is being put into things we wouldn't recognize as computers. Indeed, almost anything—any person, any object, any process or any service, for any organization, large or small—can become digitally aware and networked.
With so much technology and networking abundantly available at such low cost:
What wouldn't you put smart technology into?
What service wouldn't you provide a customer, citizen, student or patient?
What wouldn't you connect?
What information wouldn't you mine for insight?
A smarter planet is possible because
- Our world is becoming instrumented
Our world is becoming interconnected.
Virtually all things, processes, and ways of working are becoming intelligent.
Let me explain each to you in a bit more detail… (NEXT SLIDE)
The world is getting a whole lot smarter

5. Data is changing the game…
Yet organizations are operating with blind spots
VOLUME of Digital Data
Lack of Insight
1 in 3 managers frequently make critical decisions without the information they need
VARIETY of Information
Inefficient Access
1 in 2 don’t have access to the information across their organization needed to do their jobs
Summary
Volume and variety of information (structured and unstructured) is exploding, as the Planet becomes Smarter. Also, current economic times require corporations and governments to analyze new information faster and make timely decisions for achieving business goals! As the volume, variety and velocity of information and decision making increases, this places a larger burden on organizations to effectively and efficiently distribute the right information, at the right time, to the people, processes and applications that are reliant upon that information to make better business decisions.
Full Script
There are several factors driving the need for a new way of looking at information and the way we make decisions based on that information. When you think of the changes in our world today – the instrumentation, interconnectedness and intelligence of our environments – this produces a massive glut of new information, from new sources, with new needs to leverage it. This exacerbates some of the challenges that we have been dealing with for a while now, just on a whole new scale.
Volume of Digital Data: The data explosion, of course, but also shifts in the nature of data. Once virtually all the information available to be "processed" was authored by someone. Now that kind of data is being overwhelmed by machine-generated data – spewing out of sensors, RFID, meters, microphones, surveillance systems, GPS systems and all manner of animate and inanimate objects.
(Note: use statistics if you want)
By 2010, the amount of digital information will grow to 988 Exabytes (equivalent to a stack of books from the sun to Pluto and back)
Every day, 15 Petabytes of new information are being generated. This 8 times more than the information in all U.S. libraries
The number of s sent every day is estimated to be over 200 billion
By 2010, the codified information base of the world is expected to double every 11 hours
Variety of Information (diversity and heterogeneity): With this expansion of the sources of information comes large variance in the complexion of the available data -- very noisy, lots of errors -- and no time to cleanse it in a world of real-time decision making.
80% of new data growth is unstructured content, generated largely by , with increasing contribution by documents, images, and video and audio
38% of archiving decisions receive input from a C-level executive and 23% from legal/compliance professional
The average car will have 100 million lines of code by 2010; the Airbus A380 alone contains over 1 billion lines of code
Velocity of Decision Making: This is about optimizing the speed of insight generated as well as confidence that the decisions and actions taken will yield the best outcomes based on more proactive, planning around the management and use of information sources, and creating far more advanced predictive capabilities:
Every week, the average information worker spends 14.5 hours reading & answering , 13.3 hours creating documents, 9.6 hours searching for information, 9.5 hours analyzing information
For every 1,000 knowledge workers, $5.7 million is lost annually in time wasted reformatting information between applications.
Not finding the right information costs an additional $5.3 million per year
An Institute for Business Value Agile CFO Study in 2007 indicated that only 9% of senior finance executives believe they excel at gathering, interpreting & conveying information to senior management
42% of managers say they inadvertently use the wrong information at least once per week
When you combine these factors together, it puts significant strain on an organization’s ability to optimize their business for competitive advantage:
Companies can’t determine what is the important information to base decisions on – 1 in 3 managers frequently make decisions based on incomplete information.
Many times, decision makers simply can’t get to the information that they need, and this leads to
An inability to predict what will happen so they can plan appropriately to take advantage of new opportunities or counter imminent threats to their business.
New Data  Opportunity for New Intelligence:
All of this data is creating challenges – It also provides an excellent opportunity for driving an information-led transformation in organizations today! Companies and governments are looking at ways to sort through the data, understand and connect the key pieces of information and drive smarter business outcomes based by leveraging the information assets! (Transition to the next slide)
VELOCITY of information
Inability to Predict
3 in 4 business leaders say more predictive information would drive better decisions
Source: IBM Institute for Business Value 5

6. 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

7. help build a Smarter Planet
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…
As the world becomes instrumented, interconnected and intelligent, we have the opportunity to think and act in new ways—economically, socially and technically.
help build a Smarter Planet

8. 3.7 billion $93 billion 25 billion 170 billion 100 million
BP Session
4/16/ :07:28 AM
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 2.3b 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. 8

9. 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
Data Modeling
+ Analytics
Data modeling and analytics to create insights from data to feed decision support and actions
Visualization
+ Decisions

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

11. Cloud Computing base for smart
Compelling economics, proven technologies, workloads that are ready for cloud
Ready
for Cloud
Virtualization of Hardware
Virtualization of Software
Utilization of Infrastructure
Services Management
Compute Infrastructure
Storage Infrastructure
Development and Test
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% 11 11

12. IBM’s own use of Cloud Base Enterprise Platform
Development
& Test
Business Services
Analytics
Collaboration
Desktop
Storage
Network Storage Cloud
Blue Insight
CIO Dev/ Test Cloud
Workplace Cloud
Production Cloud
LotusLive
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
Cloud Talking points:
Analytics
• We announced this capability externally as the world’s largest private cloud computing environment for business analytics, called Blue Insight – the basis for the Smart Business Analytics Cloud offering
• Blue Insight provides IBM sales teams and developers with insight to better meet the needs of clients worldwide.
• Blue Insight consolidates information from nearly 100 different information warehouses and data stores, providing analytics on more than a petabyte of data.
• More than 200,000 IBMers will have access to Blue Insight; currently with over 109K users, 41ported applications and another 95 applications are the pipeline for deployment toward our full-year user deployment goal. We expect to realize tens of millions of dollars in savings over 5 years through deployment of Blue Insight.
Collaboration/Lotus Live
• IBM adopted LotusLive Meetings last year as our primary web conferencing capability for meetings among IBMers, clients and business partners. In 2009 the total number of meeting minutes grew to over 200 million minutes.
• The adoption rate of LotusLive for meetings has been fast – with 65% of IBM’s current meeting minutes provided through LotusLive
• IBM is also piloting the use of LotusLive Engage with 8000 registered users sharing files, internally and with clients.
• IBM has pilots underway to adopt LotusLive iNotes for a targeted segment of the population.
• Strategically, we intend to expand our LotusLive footprint to support other collaborative requirements (e.g. file sharing, social networking, instant messaging, etc); initial work underway with our ibm.com direct sales teams
Development/Test
• The second generation of the IBM CIO Develop/Test cloud goes into service April 26, based on the first cloud that went into service last September, supporting the Power and x86 platforms. Over 500 provisioning transactions performed in the first cloud (new & decomissions), as we start up our new cloud we anticipate at least 70 new environment requests/month.
• Implemented with the GTS Smart Business Test Cloud method, provisioning transaction times went from 5 day SLA (best case), to just over an hour.
• Other automated/self-service functions:
• Automated approval within preset monthly spend limit
• Self-service purchase of optional support services for all image software components
• Self-service change of virtual server configuration and support
• Lower setup cost. Easy tear-down. Transparent usage-based billing
• Expected higher dev-test productivity (enablement of more agile methods)
• Web application middleware stacks supporting 50% of our test activity were enabled first (WAS/DB2/MQ/Apache his) and is being deployed to the entire internal development community, with additional work underway this year to cover 80% of our develop/test activity, e.g. Rational and LAMP (Linux/Apache/MySQL/PHP) in April; Domino, Datastage, Windows, SAP in 2H10.
• In addition to productivity & cost savings, this capability is a key enabler for our internal development transformation (GenO/Liquid), through services like Topcoder.
Desktop
• Over 1200 users in our China Development Labs have been moved into a private desktop cloud; with more targeted for addition this year.
• Using the Smart Business Desktop Cloud, our IBM Call Center teams are moving roles to desktop clouds, with initial group migrations this year in the US and India – targeting 400 for pilot this year, with expansion across rest of EUS upon successful pilot completion.
• Related Business Process Delivery (BPD) work in flight (Costa Rica, Cairo, Gurgaon) for 940 users; private cloud implementation similar to CDL with mix of Xendesktop and VMWare as base.
• Estimated savings opportunity ranges from 20% to 30% of the current client provisioning costs (est $90-100M), with additional security benefits & improved systems management.
• Role-based segmentation work is underway to identify more internal groups that can benefit from the security and performance characteristics of desktop cloud architectures.
• Reference architectures for desktop clouds are not “one size fits all” and based on segmentation (end user personas, usage patterns and business requirements) we are learning to apply the best solution to meet the cost and performance goals.
Storage
• IBM faces YTY growth rates of approximately 25% in our file and block storage spaces, similar to industry. We're working to drive higher utilization and storage management automation.
• Defining and deploying a XIV storage cloud in POK. Pilot groups are GNA, ECM, Blue Harmony, and GHOx leveraging storage initiatives and technology teams.
• Estimated savings opportunities for these spaces currently range around 30-40% including capital, hosting, and provisioning labor with better redundancy.
• Provisioning time reduces from days to hours.
• Completing full inventory of global storage and use of TADDM to automate inventory.
• Inclusion of storage into service catalogue to standardize global pricing.
Business Services/ Production
• IBM is implementing its first cloud targeted to support internal production applications.
• Initial implementation will provide a lower cost infrastructure-as-a-service (IaaS) execution environment for low-tier, non-critical applications. Expansion to support other production workloads is planned, informed by our early experience.
• This offering will leverage both a private cloud instance and the IBM Smart Business Cloud (public cloud offering) with appropriate enterprise-level security mechanisms.
- Applications will be targeted to one or the other instance according to application characterizations and requirements.
- Both cloud instances built using and leveraging standard IBM cloud products and services, and with adherence to IBM’s Common Cloud Management Platform reference architecture.
• IBM is examining its production application portfolio for applications that can best take advantage of the elements of cloud value: Convenient, on-demand access to standardized offerings that are rapidly provisioned, flexibly priced and elastically scaled.
- About 1000 applications have been identified from our portfolio as potential candidates for this initial cloud implementation. Plans are in place to move a number of those into this cloud environment in 2010.
• The value of this cloud will be realized through improvements in infrastructure -- primarily through the use of virtualized hosting -- and lower labor costs for support enabled by increased automation and workload standardization relative to traditional hosting.
Fit for purpose middleware platform
Common Compute Platform (Compute/ Network/ Storage)
Base Enterprise Platform

13. 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
Transportation
Interconnected
Education
Energy
Instrumented
Intelligent
Telecommunications
Healthcare 13

14. A Smarter City Brings it All Together – with intensive use of information technologies
Public Safety
- Smarter Surveillance Systems
Emergency Management Integration
Micro-Weather Forecasting
Cyber-security
Energy Management
Smarter Building Management
Automated Meter Management
- Smart Grid – Demand Management
Energy Network Monitoring & Stability
Proactive management of the alternative energy mix
Telecommunications
Fixed and mobile operators
Media Broadcasters
Intelligent Transportation Systems
Road Usage Charging/Congestion Pricing
Integrated Fare Management
Traffic Information Management
Integrated Transportation Management
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
IBM Confidential

15. Industry-specific frameworks deliver outcomes1
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

16. 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
Key Message: The city of Rio de Janeiro, Brazil leveraged technology to increase safety and help ensure robust economic growth from the Olympics and World Cup.
Speaking Points:
It’s not often that a city has a World Cup and Summer Olympics within a 2 year span. But that’s exactly what will happen in Rio de Janeiro, Brazil in 2014 and 2016.
Last year, as the preparations were in process for the upcoming global spotlight that would be placed on Brazil, regular summer rains turned into a catastrophe as wet hill sides and serious mud slides resulting in over 100 deaths.
Rio Mayor, Eduardo Paes had a vision for a more coordinated response to emergency management, one that would have all of his teams working together, not only to respond to issues, but to predict where they would arise so that they could effectively evacuate and assist the right people, minimizing damage.
Mayor Paes sponsored the creation of a comprehensive city operations center that integrates over 30 city departments and agencies. It can collect and share information on weather, energy, buildings, transportation, and water in real time. And uses advanced analytics to predict rainfall and its impact down to a single square kilometer of detail.
As a result, the city is better prepared to respond to emergencies and help ensure that the global focus on Rio de Janeiro highlights all of the outstanding attributes of the city.
Increasing efficiency in resource deployment, expanding early warnings to 48 hours, and coordinating all agencies in response within 8 mins of an event

17. City Government and IBM Partner to Make Rio de Janeiro a Smarter City Video

18. 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
What are the client's needs?
Improve operational efficiency and customer service by enabling clients to better manage consumption through smart meters
Transform the relationship between consumers and utilities suppliers, enabling more efficient energy and water consumption
IBM involvement and partners
Enemalta Corporation, Water Services Corporation
How will IBM making the city smarter?
Replacing all 250,000 analog electricity meters with smart meters
Integrating water meters and advanced IT applications to enable remote monitoring, management, and meter readings
Enabling residents to track energy use online and change consumption habits
Value Capture
Customers:
Providing citizens better information to make energy usage decisions
Customers pay only for the power they actually use
Customers may to switch to a pre-pay service
Utilities
Can manage pricing to sustain new energy consumption policies
More efficient monitoring of electricity and water grids
Remote activation and management to reduce connection time
IBM
The Maltese network is providing valuable information about how an entire community or city responds to these new tools

19. Rotterdam – Smarter Energy
What 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
What are the client's needs?
Become “climate proof” and establish a 50% reduction in CO2 emissions by 2025
Utilize real-world, real-time operational information to manage infrastructure and operations addressing climate change in a dynamic, complex natural water system
Establish a holistic approach to climate change and water management
IBM involvement and partners
GBS led collaboration from IBM Research
Over 23 business partners including the City of Rotterdam, Shell, Philips Lighting, WWF, Dura Vermeer, E.on and Eneco
How is IBM making the city Smarter?
Designing and testing a monitoring and forecasting system for smarter water and energy management
Exploring with the City additional opportunity areas such as the management of carbon in logistics processes
Value Capture
Enabling officials and professionals to quickly and effectively respond to flood and drought threats, safety or accessibility issues, and changes in water conditions that could harm fish and other aquatic life
The IBM solutions developed in Rotterdam could be applicable in at least 40 other cities around the world

20. 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
What are the client's needs?
Transportation & Parking – Improving public transportation efficiency and mobility
Energy & Buildings – Renovating residential and commercial buildings with Green technologies
Water Management - Replacing 22K homes with low flow water meters water devices to monitor leaks and usage
IBM involvement and partners
IBM Research led engagement with GBS support
City of Dubuque, Alliant Energy, LSC Transportation, Blackhills (Water/Gas), Local Property Developers
How is IBM making the city Smarter?
Real-time Integrated Sustainability Monitoring
Integrated Water Management systems
Building new service systems integration, data management, and analytic technologies
Value Capture
Creating an international model of sustainability
Developing and piloting systems to enable consumers and businesses to make informed decisions resource consumption to reduce costs and their carbon footprint.
Creating an international brand for the City of Dubuque
Helping to recruit businesses, workforce, and universities
Accelerating local business growth

21. 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
Contact: Dermot Walsh, Partner, IBM Global Business Services, Paul Murphy, GBS, Business Development Executive 
Date: 10/15/09
Comments: Includes edits provided by Dermot on 10/9/09. Validation discussion 10/15/09.
This engagement is a good example of not only working with the city of Dublin, but also with the Irish government. Transport 21 is a government initiative to improve Ireland’s transport infrastructure over the next 4-5 years. None of Dublin’s transportation provider are integrated in terms of ticketing. When switching modes, one must get a new ticket at a different location or kiosk. The ability to have an integrated ticketing system key is to public transport in Dublin. Modes include – City busses, light rail, coast electric trains, private bus operators, and suburban trans.
IBM set goals - part of revised plans.
The Irish Government is setting up the Dublin Transport Authority and ticketing will be key to the authority and operational responsibility is going to the city of Dublin.
Contract Value: 14.5M Euro through 2014
SJP and other ST members have not been briefed on this engagement.

22. 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

23. 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
IBM Confidential

24. 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
Contact: Andy MacIsaac, Global Regional and Local Government Marketing
Date: 10/23/09
Comments: Validated with Andy on 12/23.
May have some exposure with the ST.
TCV:
Hardware Revenue: (in US $) (Storage)
$1,391,555
Software Revenue: (in US $)
$20,053
Services Revenue: (in US $)
$66,049
Total Contract Revenue: (in US $)
$1,477,657
© 2007 Foster and Partners

25. IBM Watson The Next Grand Challenge Video

26. 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.
We won't have this opportunity forever. I think one thing is clear: we agreed earlier that 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. IBM invites you to work with us to drive real progress for our endearing planet. We welcome your ideas and look forward to the opportunity to co-create solutions for smart government and a smarter planet. Thank you for your attention and your input!
Let's work together to drive real progress in our world.

27. Let’s Build a Smarter Planet