Open Standards Driving Innovation for Sustainability

Dr. Jochen Friedrich – Technical Relations Europe Executive
13 October 2010

Open Standards driving
Innovation for Sustainability

© 2009 IBM Corporation

Creating an Eco-efficient Economy

Challenges Opportunities
Challenges of Incentives Green IT & IT for
scale Measurements Green
System of Energy efficiency End user behaviour
systems Complete accounting
Silos within systems
Government
organisations
ROI

Demographic patterns
Employees 2.0

Drivers

Source: IBM Institute for Business Value: analysis of Jam outputs, 2010
2 Dr. Jochen Friedrich - IBM Technical Relations Europe October 13, 2010 © 2010 IBM Corporation

Sustainability requires innovation.
Innovation today happens to a large extent in
an open, collaborative environment.


Open Innovation – Collaboration to Foster Sustainability
“... there needs to be tighter linkage between business and government
in determining those approaches that will best protect the respective
interests of industry and society. What if business leaders were invited to
partner with policy-makers and “green” citizens groups to formulate
protocols that balance complementary and divergent interests in a more
realistic way? [...]
Produced in an open and transparent manner consistent with ways in which
the open source movement and wikis operate, perhaps trust and shared responsibility would
emerge as drivers of lasting and meaningful progress.”
[IBM Global Innovation Outlook 2007, p. 41 (Research with 248 thought leaders from 178 organisations.]

“... the application of innovations like Web 2.0 to business and public life
is changing the way in which innovation happens. It is becoming more
open and collaborative. Once the preserve of a select elite, it now
involves a much wider range of actors. […] crowd-sourcing and co-
creation are now the order of the day!
We need a new policy that reflects these changes. This means that we
will have to, well, innovate!
[President Barroso, European Innovation Summit 2009.
Source of photo: EU Commission: Audiovisual Services.]

Key Elements for Sustainable Solutions
Leverage innovation to deliver "green" infrastructures that are
highly efficient and overlay the physical infrastructure with digital
intelligence
Implement sustainable solutions that promote resource efficiency
and reduce the environmental and social impact of operations
Embrace intelligent systems that use open standards to provide
near realtime information for better management of the
infrastructure, water quantities, or, even, entire transportation
systems.
[Results from the IBM Eco-efficiency Jam 2010. (51 hour Jam with 1600 experts in
lead roles from more than 60 countries)]

Innovation Types
• Business model – Innovation in the structure and/or financial model of the
business
• Operational – Innovation that improves the effectiveness and efficiency of core
processes and functions
• Products/services/markets – Innovation applied to products or services or “go-to-
market” activities


Standardisation – Innovation Lifecycle

Innovative act: In the implementation, use
and combination of standards

Critical: Availability of standards

n
tio
ta
oi
pl
ex
Integration and combination of
technologies
ss

STANDARD
ce
t ac
ke
ar
m

Innovative act: In the invention and
development of new basic technologies
Basic research and
technology development Critical: Contribution of technology

Open Standards are at the core of innovation
in support of sustainability.


Open Standards Help Business Prosper

Choice Your choices today don’t limit the choices in the future.

Flexibility You can connect to internal departments and external
partners that use different technology.

Speed You can build new solutions that involve multiple hardware
and software platforms quickly.

Agility You can adjust to changing business parameters (new
opportunities, new partners, new employees) quickly.

Skills You can find skilled resources that understand these
solutions.

Open standards facilitate data exchange and automatic processing,
international partnering on business solutions and open access to services

8

The Value of Open Standards and Interoperability

 Open Standards provide detailed information about interfaces,
data formats, message formats etc. and allow the full and free
use of this information

 In other words, Open Standards are essential for achieving
genuine interoperability
– Technology integration
– Service Oriented Architectures (SOA)

 Open Standards and interoperability guarantee flexibility and
choice and thus create an environment for fair competition
– Prevent vendor lock-in and keep exit costs for CHOICE
technologies low
– Ability to chose, replace, exchange (choice)

 Open standards provide an agreed and trusted base for
innovation

 Important issues:
– Quality of standards
– Avoid “competing”/”multiple” standards


IBM's Commitment to Open Standards
■ Technology leadership
–Specifications and early code
–Standards development organizations
–Industry organizations
–Open source donations

■ Supportive patent policies
–Royalty free licensing policy for software interoperability standards
–Patent donations
–Non-assert pledge

■ Making standards more consumable
–Profiles
–Business and Industry standards initiatives
–International collaboration


Open Computing: Open Ecosystem for Innovation
■ Open Standards
– Facilitating exchange of data by integrating Open Computing
different technologies
– Promoting interoperability by using published
Open
open specifications
Architecture

■ Open Architecture
– Increasing collaboration by simply extensible Collaborative
business processes, most notably SOA
Innovation
– Innovation within open infrastructures and via
the combination of technologies
Open Open
Standards Source
■ Open Source
– Promoting innovation by leveraging
development expertise of the open source
community
– Follow the collaborative model successfully
applied in open source (crowd sourcing)

Open Standards and SOA enable constant
transformation and improvements for a
smarter planet.


The world is getting smarter
– more instrumented, interconnected, intelligent

Smart traffic Intelligent Smart food Smart Smart energy Smart retail
systems oil field systems healthcare grids
technologies

Smart water Smart supply Smart Smart Smart regions Smart cities
management chains countries weather

SOA technology enables flexible connection of information,
computing resources and people

Open standards enable a smarter planet
Imagine the possibilities if we could make pervasive interoperability a reality

SMARTER IS … Insight SMARTER IS … Working
Enable innovative services in response Reduce cost, increase efficiency and
to customer requests and a changing agility – provide better services and
business environment be more flexible to adopt changes

SMARTER IS … Green
Appliances, meters and sensors adjusting
consumption dynamically based on usage –
cutting cost and avoiding brown/black outs

China Telecommunication Corporation: Energie Baden-Württemberg: Offers City of Wellington: Adopted SOA to bring
Accelerated product development and residential customers smart appliances and older systems for government processes into
increased product success with a meters that enable them to adjust electricity a current architecture being more agile.
streamlined innovation process leveraging consumption based on price—reducing waste Business process automation and
employee and business partner intelligence. and easing peak loads. management thus function as a key enabler
of efficiency in the organization.


Cloud computing delivers IT and business benefits

Virtualized Higher utilisation
Economy of scale benefits
Increase in efficiency
Lower capital expense
Lower operating expense

Standardized Easier access
Flexible pricing Higher quality services
Reuse and share
Easier to integrate
Automated Faster cycle times
Lower support costs
Optimised utilisation Breakthrough agility and
Improved compliance reducing risk
Optimised security
End user experience

SOA technology enables deployment of services efficiently and
flexibly across different environments

Policy makers need to require open standards
for software interoperability to foster
innovation. And public policy needs to ensure
that open standards are available for
implementation and use.


Open Standards Landscape

Industry-Specific Global
Banking
SMB
Financial Horizontal Chemicals &
Markets Petroleum
Finance Industry
Insurance Human Aerospace
Open Networks Resources
Risk/Compliance Analytics
Payments Defence
IP Relationship
Energy & HTML Management
Linux XHTML
Open
Utilities Open OS Publishing
Accounting Automotive
Tele-
communications
Technology Auto-
Grid STANDARDS nomic Standards Marketing Electronics
Pervasive
Service
& Wireless
Delivery
Open Product
Media & Web Open Data Life Cycle
Entertainment
Interchange
Services
XML
Information Eclipse Optimisation Consumer
Education Management Products
Open Programming
Government Customer Retail
Procurement
Support
Pan-European Standards Travel &
Transport
Healthcare
Trading Partner
Life Collaboration
Sciences Standards


Reforming the EU ICT Standardisation Policy

fora and consortia
IEC ISOISO ITU

“Private/ closed”
JTC1

OASIS

Others...
CEN ETSI

IEEE
IETF
CENELEC

W3C

OGF
ICT Forum

National National National
Bodies Bodies Committees

Covered by the European Outside of the scope of
standardisation system of today European standardisation –
therefore not available for use

➔In a White Paper of July 2008 the European Commission presented a concise
proposal for modernising the EU ICT Standardisation Policy so that open
standards from fora and consortia can be used in EU policies and public
procurement.
➔The implementation of these measures is urgent for promoting interoperability
and innovation in Europe as a basis for smarter, sustainable solutions.

Leveraging the Potential of Open Standards
■ Open Standards are essential for modern, scalable and extensible IT infrastructures
allowing effective electronic offering of services, efficient collaboration and electronic
processing of data. They are critical for triggering innovation for sustainable solutions.
■ Collaboration is key for success. Public authorities should explore open innovation and
“crowd sourcing” when working towards policies in support of sustainability.
■ Public Procurement promotes competitiveness by purchasing open standards based
services and solutions.
■ The public sector – via innovation policies and public procurement – has good reason to
require open standards:
– For public authorities: flexibility, choice, integration, independence, cost-efficiency, security,
control
– For vendors: fair competition (including Open Source), integration
– For society: choice, independence
■ Referencing of open standards from fora and consortia needs to be straight forward for
public procurement in the same way as it is for standards from formal organisations.
■ Public authorities should encourage the development of open standards where
standardisation gaps have been identified.


Thanks very much for your attention ...

… Happy to answer your questions...


Open Standards Driving Innovation for Sustainability

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