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Let’s Build a Smarter Planet: The Power of IT as a Driver of Growth and Innovation
It was the worst of times… It may be the best of times… … to make smarter decisions that improve our society for the long term  The near collapse of our financial system The longest recession in modern times Reality of energy and environmental problems Government cooperation on banking issues  Funds will be spent to stimulate the economy Willingness of citizens to change their habits Focus on collaborative innovation
The imperative for government and industry today is threefold. ,[object Object],[object Object],[object Object],[object Object],EXPLOIT OPPORTUNITIES Build future capabilities  Transform your economy  ,[object Object],[object Object],[object Object],[object Object]
Current Economic Recovery Spending Totals $5.5T  ($2.8T in Fiscal Stimulus Spending) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Key Countries Source: IBM Analysis, May 2009 Fiscal Stimulus Spending $2.8T Banking/Corp Support $2.3T Tax Relief $0.4T $5.5 T China $940B USA $860B Japan $160B Germany  $90B S. Korea   $80B Italy   $50B Brazil   $40B
A look at the U.S. Fiscal Stimulus program
American Recovery and Reinvestment Act  (ARRA) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Digital infrastructure investments will impact more positively on jobs, productivity, and innovation than traditional physical infrastructure spend 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. US Study
Australia -  Economic Benefits of Intelligent Technologies Report   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
China – IBM Institute for Business Value Report ,[object Object],[object Object],[object Object],[object Object],[object Object],Department of Informatization, Research, State Information Center
This mandate for change and investment is a mandate for smart. We know the world is becoming smaller… and flatter.  Something else is going on that may ultimately have a greater impact on business and society. The world is about to become  smarter . This is quite literally about how the world works…  the world’s infrastructure is becoming intelligent.
In 2001, there were 60 million transistors for every human on the planet ... …  by 2010 there will be 1 billion transistors per human… …  each costing 1/10 millionth of a cent.
In 2005 there were 1.3 billion RFID tags in circulation… …  by 2010 there will be 33 billion.
Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 and expected to reach 4 billion by the end of this year
One billion camera phones were sold in 2007, up from  450 million in 2006 … 3G devices growing 30% annually.
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."
The reason we will all begin to transform our systems, operations, enterprises and personal lives to take advantage of a smart planet isn’t just because we can.  It’s because we must.
U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains.
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[object Object]
The U.S. healthcare system loses more than $100 billion a year to fraud.
In six years the power consumption of a server has risen from 8 watts to more than 100 watts per $1,000 worth of technology. On average, for every 100 units of energy piped into a data center, only 3 units are used for actual computing. More than half goes to cooling the servers . In distributed computing environments 85% of computing capacity sits idle.
We’ve thought about IT as the world of data centers, software, PCs, routers, bandwidth. We’ve thought about infrastructure as the world of buildings, factories, hospitals, roads, pipelines. Those worlds are converging.  We’re confident that the world can become smarter. We’re building it with our clients.
A SMARTER  PLANET INSTRUMENTED INTERCONNECTED INTELLIGENT PEOPLE COMPANIES, INSTITUTIONS, INDUSTRIES MAN-MADE SYSTEMS NATURE’S SYSTEMS
Innovation that can improve the way we work and live Restoring the financial health of the global economy Smarter Planet Stimulus Programs Government Telecommunications Education Transportation Energy & Utilities Financial Services Healthcare Automotive
Smarter Government – Smarter Cities Strengthening national security and public safety ,[object Object],[object Object],[object Object],Ensuring a sustainable environment. ,[object Object],[object Object],[object Object],[object Object]
Smarter Healthcare  ,[object Object],[object Object],[object Object],[object Object],Optimizing best healthcare practices. Delivering excellent, individualized health and care experiences. Creating new healthcare service models and markets. Shanghai First People’s Hospital:   Developed a reliable identity repository to eliminate duplicate and erroneous data, aggregating a patient’s historical care information and improving care through the sharing of trusted information.
Smarter Energy and Utilities  Energie Baden-Württemberg:   Offers residential customers smart appliances and meters that enable them to adjust electricity consumption based on price—reducing waste and easing peak loads.  Transforming the grid. ,[object Object],[object Object],[object Object],Empowering the consumer. Reducing greenhouse gas emissions.
We’ve only just begun to uncover what is possible on a smarter planet. ,[object Object],[object Object]

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Let’s Build a Smarter Planet: The Power of IT as a Driver of Growth and Innovation

  • 1. Let’s Build a Smarter Planet: The Power of IT as a Driver of Growth and Innovation
  • 2. It was the worst of times… It may be the best of times… … to make smarter decisions that improve our society for the long term The near collapse of our financial system The longest recession in modern times Reality of energy and environmental problems Government cooperation on banking issues Funds will be spent to stimulate the economy Willingness of citizens to change their habits Focus on collaborative innovation
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  • 5. A look at the U.S. Fiscal Stimulus program
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  • 7. Digital infrastructure investments will impact more positively on jobs, productivity, and innovation than traditional physical infrastructure spend 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. US Study
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  • 10. This mandate for change and investment is a mandate for smart. We know the world is becoming smaller… and flatter. Something else is going on that may ultimately have a greater impact on business and society. The world is about to become smarter . This is quite literally about how the world works… the world’s infrastructure is becoming intelligent.
  • 11. In 2001, there were 60 million transistors for every human on the planet ... … by 2010 there will be 1 billion transistors per human… … each costing 1/10 millionth of a cent.
  • 12. In 2005 there were 1.3 billion RFID tags in circulation… … by 2010 there will be 33 billion.
  • 13. Worldwide mobile telephone subscriptions reached 3.3 billion in 2007 and expected to reach 4 billion by the end of this year
  • 14. One billion camera phones were sold in 2007, up from 450 million in 2006 … 3G devices growing 30% annually.
  • 15. 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."
  • 16. The reason we will all begin to transform our systems, operations, enterprises and personal lives to take advantage of a smart planet isn’t just because we can. It’s because we must.
  • 17. U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains.
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  • 20. The U.S. healthcare system loses more than $100 billion a year to fraud.
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  • 22. In six years the power consumption of a server has risen from 8 watts to more than 100 watts per $1,000 worth of technology. On average, for every 100 units of energy piped into a data center, only 3 units are used for actual computing. More than half goes to cooling the servers . In distributed computing environments 85% of computing capacity sits idle.
  • 23. We’ve thought about IT as the world of data centers, software, PCs, routers, bandwidth. We’ve thought about infrastructure as the world of buildings, factories, hospitals, roads, pipelines. Those worlds are converging. We’re confident that the world can become smarter. We’re building it with our clients.
  • 24. A SMARTER PLANET INSTRUMENTED INTERCONNECTED INTELLIGENT PEOPLE COMPANIES, INSTITUTIONS, INDUSTRIES MAN-MADE SYSTEMS NATURE’S SYSTEMS
  • 25. Innovation that can improve the way we work and live Restoring the financial health of the global economy Smarter Planet Stimulus Programs Government Telecommunications Education Transportation Energy & Utilities Financial Services Healthcare Automotive
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