4. We are ushering in a new wave of innovation
Age 6th Wave
Age of IT &
of Oil, Cars Telecom
Age
and Mass
of Steel,
Production 5th Wave
Electricity
and Heavy
Engineering 4th Wave
Smarter
Innovation
Age
3rd Wave
of Steam
and Railways
Products
The
Industrial
Revolution 2nd Wave
Instrumented, inte
1st Wave rconnected,
and intelligent
Building blocks
for a smarter
planet
Sustainability
1770 1830 1875 1920 1970 2010
*Source: “Next Generation Green: Tomorrow‟s Innovation Green Business Leaders”, Business Week, Feb 4, 2008
6. Our planet is a complex, dynamic and highly interrelated $54 Trillion
system-of-systems
This chart shows „systems„ (not „industries„) Communication Transportation
$ 3.96 Tn $ 6.95 Tn
Education
$ 1.36 Tn
Water
$ 0.13 Tn
Leisure / Recreation /
Electricity Clothing
$ 2.94 Tn $ 7.80 Tn
Global system-of-systems
$54 Trillion
(100% of WW 2008 GDP)
Healthcare
$ 4.27 Tn
Infrastructure Legend for system inputs
$ 12.54 Tn
Note: Same Industry
1. Size of bubbles represents Business Support
systems‟ economic values IT Systems
2. Arrows represent the strength of Energy Resources
systems‟ interaction Machinery
Finance Food Govt. & Safety 1 Tn Materials
Source: IBV analysis based on OECD $ 4.58 Tn $ 5.21 Tn Trade
$ 4.89 Tn
6
7. A system-of-systems is defined by a set of characteristics
Components are interrelated and interconnected through a
Interrelated cause & effect relationship, albeit with some time lags
Dynamic and ever-changing as a result of the evolution of
Emergent systems and the interactions between them
Comprises of individual systems that can work
Open independently but are compatible and free to interact with
each other
A conceptual whole made up of different systems with
Heterogeneous varied behaviour, characteristics and intentions
7
8. System-of-Systems Definition: Understanding interrelationships is the necessary
basis for optimization
System-of-Systems Definition: What are the
most significant relationships amongst systems?
Global transportation industry
segments share, 2006 ILLUSTRATIVE
Air
Government
Renewables Fossil Fuels
Network Management
Ship Road &
Rail
Trans
Infra Power
MRO Services
Distributor Dealer
Component
manufacturers
Rails
Road Transportation Customer
Suppliers OEM
Air Infrastructure Industrial
Ship
Machinery
Metals/
Materials Hi Tech
Fuel Supply
Fuel Station
MRO Services Power
Refineries
Fossil Fuels Renewables
Key factors restraining the systems: Core value chain participants
Primary system interactions
1. Fuel wastage 2. Capacity constraints/wastage 3.Pollution & Efficiency Material Flow
Information Flow Secondary system interaction
8
12. TRANSFORMING BUSINESS VIA SENSOR SOLUTIONS
Matiq: Employs RFID tags to trace meat and poultry from Airbus: In a strategic move, RFID is being utilized to
the farm to store shelves to ensure safety and freshness automate the tracking of aircraft segments while improving
and provide more transparency to consumers. supply chain visibility and reducing costs.
Honda Italia: Implemented RFID component tracking Container Centralen: Counterfeit prevention and supply
solution to improve production efficiency and quality. chain visibility in returnable transport item handling in the
European Green Sector
Metro: Using RFID technology throughout its entire supply DHL: Developed and implemented a real-time monitoring
chain to help them get the merchandise the customers want system using RFID and sensing technology to monitor
on the shelves when they want them. temperature sensitive shipments while in transit.
Stockholm, Sweden: An intelligent toll system in the city Volkswagen: Implemented RFID container tracking system
center resulted in 20% less traffic, 40% lower emissions and to drive increased efficiency, enhanced visibility and a rapid
40,000 additional users of the public transportation system. ROI.
22. Our world is becoming
INSTRUMENTED
Our world is becoming
INTERCONNECTED
Virtually all things, processes and ways
of working are becoming
INTELLIGENT
22