1. Building a Smarter Planet City by City Dr. Guruduth Banavar Vice President and Chief Technology Officer, IBM

2. © 2012 IBM Corporation 1 http://www.ibm.com/ibm100/us/en/icons/index.html 1914 1965 1972 1969 2011 1962 1967 1986 1959 1934 1928 2010 (5896) 1973 1956 1969 1957 1996 1964 1974 IBM just celebrated 100 years of innovation

3. © 2012 IBM Corporation Guided by the IBM Strategy and grounded in our values Invest in talent Enable transformation at the intersection of business process, technology and culture Invest in R&D Focus on innovative areas that enable growth and have an impact on society Collaborate with 3rd parties Strategy & Values Making things smarter Technology & Culture Managing for the long-term IBM’s approach to transformation

4. © 2012 IBM Corporation Making things Smarter… In 2006/2007, we asked the IBM community to reflect on societal Grand Challenges on a Global Scale. The results were striking.

5. © 2012 IBM Corporation Water Municipalities lose as much as 20% of their water through leaks. A blackout in the Northeast of the US affected over 55 million people. Transport Energy Infrastructure everywhere is being overwhelmed A major traffic jam in China caused gridlock for 60 miles and lasted ten days. Source: Msn News

6. © 2012 IBM Corporation In 2007, for the first time in history, the majority of the world’s population lived in cities – 3.3 billion. By 2050, city dwellers are expected to make up 70 percent of the Earth’s total population – 6.4 billion. These challenges are most obvious in cities

7. © 2012 IBM Corporation At the same time, citizens are placing increasing demands on leaders to innovate “The 19 th century was a century of empires… the 20 th century was a century of nation states… the 21 st century will be a century of cities” Mayor Wellington Webb, Former Mayor, Denver, CO Evolution of City Value Leaders Deliver Citizens Demand Time Lifestyle, Culture Jobs, Education Water, Energy Walls, Roads ProsperityOpportunityConvenienceSecurity

8. © 2012 IBM Corporation 77 Mobile phone subscribers globally 4 Billion People on the internet by 2011 2 Billion Connected devices in the “internet of things” 1 Trillion Intelligent InstrumentedInterconnected Recent trend: The emergent era of big data We collect information from almost everything!

9. © 2012 IBM Corporation The Principle of “Smart” Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT Our world is becoming INSTRUMENTED Physical World buildings, roads, pipelines, grids, airports, … Digital World applications, workflows, models, analysis, optimization, …. sensors / actuators networks data integration The physical and the digital worlds are converging, allowing us to be intelligent and proactive.

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11. 10 There are many visions of a Smarter City… The Sustainable Eco-City The Well Planned City The Healthy and Safe City The Cultural or Convention Hub The City of Innovation The City of Commerce

12. © 2012 IBM Corporation Think about a Smarter City via Outcomes Interconnection of Urban Infrastructure Systems Instrumentation of Urban Infrastructure Intelligence for Systems of Urban Infrastructure Systems Improved Quality of Life and Work “A Better City” Economic Growth Assets managed Variables optimized No. of dashboards Event rates No. of sensors Data rates No. of Policies/KPIs Business processes Infra. Performance gains Citizen interactions Sustainability Public Health Mobility Quality of housing stock Skill base, jobs created Productivity Commercial investment Your metrics here!

13. © 2012 IBM Corporation Human Services Infrastructure Services Public Safety Education HealthcareTransportation Energy and Water Social Services City Administration Smarter Cities provide better services through better management Interconnecting physical systems and people through information and communications technology enables economic development for safe, efficient, sustainable cities Anticipating problems Coordinating resources Leveraging information

14. © 2012 IBM Corporation Traditional ApproachSmarter Approach Expand infrastructure capacity by managing demand & supply Use information to deliver better services & evolution Coordinate actions across departments & stakeholders Invest in building more infrastructure, e.g., roads Focus on urban planning for long-term city evolution Focus actions at optimizing departmental effectiveness Most cities can vastly optimize existing infrastructure and services through information-based techniques

15. © 2012 IBM Corporation Better services attract and retain creative talent, which acts as a powerful, long-term competitive advantage for cities Talent-based growth  Cities, as focal points for economic growth and activity, are best positioned to benefit from the rising importance of talent and innovation Intensifying global competition for talent  Cities are facing intensifying competition globally for talent and innovation as demand for higher quality and more diversified workers is increasing The right mix of diverse talent  Cites need to cultivate  a thriving academic and creative culture  a critical mass of industry-specific skills and learning  vibrant cultural institutions and communities  fluid conduits through which knowledge flows across all these communities Long-term competitive advantage  Cities that possess the right mix of diverse talent have a powerful source of competitive advantage as they are often difficult to replicate Talent, knowledge, creativity and innovation of the workforce are becoming increasingly important

16. © 2012 IBM Corporation Smarter Transportation  Road user charging, congestion pricing  Integrated fare management, traffic prediction Smarter Transportation  Road user charging, congestion pricing  Integrated fare management, traffic prediction IBM Solutions for better outcomes in Smarter Cities Smarter Buildings  Schools, Hospitals, Homes, Office & Plants  Energy, water, waste, emissions management Smarter Buildings  Schools, Hospitals, Homes, Office & Plants  Energy, water, waste, emissions management zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz Smarter Energy Management  Smart Grid, Electric Vehicles, Renewable Energy  Intelligent Utility Network Communications & Security Smarter Energy Management  Smart Grid, Electric Vehicles, Renewable Energy  Intelligent Utility Network Communications & Security Smarter Water Management  Water infrastructure management  Resource planning optimization Smarter Water Management  Water infrastructure management  Resource planning optimization Smarter Public Safety  Emergency response and communications  Digital video surveillance, crime analytics Smarter Public Safety  Emergency response and communications  Digital video surveillance, crime analytics Smarter Cities – Operations Center  Improved services, operations, safety, sustainability  Incident Mgmt, Domain Correlation  Emergency Response, Citizen Dashboards Smarter Cities – Operations Center  Improved services, operations, safety, sustainability  Incident Mgmt, Domain Correlation  Emergency Response, Citizen Dashboards Govt. Services Smarter Government Services  Social services, citizen and business interaction  Case mgmt, visit optimization Smarter Government Services  Social services, citizen and business interaction  Case mgmt, visit optimization

17. © 2012 IBM Corporation We are applying insight from over 2,000 projects with cities of all sizes Smart metering in Malta helps citizens pay only for the energy they use Predictive analytics helped slash Richmond’s crime rate by 40% in one year In Taiwan, 99% of smarter trains run on time Peak energy loads fell by 15% when IBM helped homes in the Pacific Northwest talk straight to the grid IBM helps Amsterdam Airport Schiphol move 20 million more bags every year with a smarter baggage system In Delft, developing enhanced flood prediction and protection systems for coastal areas and river deltas Data analytics helped cut crime 35% in NYC In downtown Stockholm smart traffic systems helped reduce gridlock by 20% Miami-Dade County Public Schools have increased academic achievement across the board Patterns for Leveraging Information, Anticipating Problems, Coordinating Resources

18. © 2012 IBM Corporation IBM is helping the city of Chicago fight crime by digitizing their law enforcement practices and deploying smarter video systems … … even testing a system that uses audio sensors to direct cameras to locate gunshots, determine the caliber of gun fired and pinpoint its exact location – long before 9-1-1 is dialed. SMART PUBLIC SAFETY

19. © 2012 IBM Corporation IBM is working with Brisbane, London, Singapore and Stockholm to deploy smarter traffic systems. Many 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. SMART TRAFFIC

20. © 2012 IBM Corporation IBM leads most of the smart meter deployments globally, building intelligence into utilities to lower costs for customers and better balance the grid. Enemalta and Water Services Corporation are partnering with IBM to help Malta become the first country in the world to build a nationwide smart grid and a fully integrated electricity and water system. SMART ENERGY

21. © 2012 IBM Corporation SMART BUILDINGS IBM’s projects in NYC and Shanghai include creating building models for emergency mgmt, energy mgmt, asset and space mgmt. IBM’s strategy is to integrate disparate systems and improve facilities and asset management, reduce energy use, and increase space utilization.

22. © 2012 IBM Corporation IBM delivered a City Operations Center to the City of Rio, with infrastructure, technology, and processes to manage emergency events as well as day-to-day incidents. Key components include an incident management system and a weather/flood prediction system. SMART CITY OPERATIONS

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24. The ecosystem is converging Infrastructure Operators Infrastructure Engineering/Integrators Traditional IT Manages and operates physical infrastructure systems such as highways, bridges, airports, electric grids, etc. Plans, advises, designs and builds urban physical infrastructure often with property owners, developers, and local governments Provides physical components for urban systems and serve as system integrators for complex projects Supplies IT components, serves as an advisor or integrator; provides information backbone, data analysis and associated services Architecture/ Engineering/Construction * Representative company names shown – not intended to imply any special relationship with IBM in this space.

25. © 2012 IBM Corporation Improving Outcomes to create a planet of Smarter Cities  System of Systems is an end-to-end methodology –Proven at multiple scales, multiple environments, multiple industries –Evolved from art to science to replicate and reduce risk  100 years of experience making the world work better through the use of technology  Passionate to take cities to the next level of sophistication and prosperity Over 2,000 city projects leverage on IBM to help them transform into 21 st century cities

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