1. 25/11/2011
HPC AS A DRIVER OF INNOVATION
CELSO GARRIDO
UAM AZCAPOTZALCO
RISC Workshop. November 23 and 24, Conacyt, Mexico
TOPICS
I. Main questions
II. Science and innovation
III. New approaches to innovation
IV. Innovation risk management and HPC
V. Economics of HPC for innovation
VI. HPC and development
A final remark
1

2. 25/11/2011
MAIN QUESTIONS
Why the biggest transnational are doing an
increasing use of High-Performance Computing
(HPC) in its strategic management of
innovation?
Can the HPC be a tool to improve innovation
practices of Latin American SME?
Which shall be the responsibility of public and
private sector to promote the use of HPG for
the development of the region?
II. SCIENCE AND INNOVATION
A first clarification
Science:
Invest money to produce knowledge
Economic innovation:
Apply knowledge to produce money
Scientific and entrepreneurs use HPC, but in this
presentation, we will focus on the second one
2

3. 25/11/2011
NEW APPROACHES TO INNOVATION
Some basic statements on innovation
Firms innovate to create value for themselves and
its clients.
Economic innovation by firms is an outcome of a
systemic process applied by them in the context of
certain economic ecosystem. Their, they combine
competition and cooperation with other actors
The innovation is a strategic process, so firm of any
size can and has to manage it.
NEW APPROACHES TO INNOVATION
Innovation management
According to Total Innovation Management (TIM)
approach, economic innovation is a continuous
process of the firm. It includes all the internal and
external factors and actors of the ecosystem, under
the pressure of competition
• In the most dynamic industries, competition
accelerates the timing of innovation and shortens
the life cycle of its outcomes.
3

4. 25/11/2011
NEW APPROACHES TO INNOVATION
This innovation process, begin with a business
model and finish when it arrives at the desired goal
of value creation (product, process, organization,
etc)
Business models define the new ways the firm will
undertake to create value based on innovations.
After this, managers will make a decision about
how to concrete the model (R&D, technology,
design, organization, marketing, etc)
NEW APPROACHES TO INNOVATION
• Along the innovation process, the firms develop
learning curves guided by a “try and fail” practice
• This process creates risks due to the nature of
innovation, that not make possible to assure a priory
a successful outcome
• This means that firms will have to learn how to
manage risks along the learning curve, improving its
conditions and timing
4

5. 25/11/2011
INNOVATION RISK MANAGEMENT AND HPC
HPC provides a number of powerful tools to manage
the innovation process
Distributed and Grid Computing Design, testing and quality
production
Virtualization Visualization and Data
Management.
Graphics Processing Units Parallelism and Data Sharing on
Multi-core Architectures
Tools and Environments for High Modeling, simulation and analytics
Performance System Engineering (MS&A)
INNOVATION RISK MANAGEMENT AND HPC
The use of these tools has a different impact on
the economic activity
Lower design and production costs
Increase quality
Enhance capabilities offered in bidding
Create highly-skilled technical workforces
Improve collaboration with the Original
Equipment Manufacturer (OEM)
5

6. 25/11/2011
INNOVATION RISK MANAGEMENT AND HPC
All of these create an effect on “time to
market”
INNOVATION RISK MANAGEMENT AND HPC
Benefits of management based on HPC
Turn around time in a lab is about nine months; on a
computer, it is less than one week.
It would cost about $50,000 per compound to analyse in
a lab. Computationally, we can do it for about $3,000.
HPC based virtual prototyping and large scale modelling,
dramatically accelerate and streamline
Not only “upstream” R&D, design and engineering but
also “downstream” business process (data mining,
logistic, CRM, etc)
6

7. 25/11/2011
INNOVATION RISK MANAGEMENT AND HPC
Main barriers for the use of HPC
Educational and training hurdles (shortage of
computational scientists)
Technical obstacles (e.g., legacy codes need updating,
new code development lags, growing performance gap
between fast processors and other system
technologies)
Firms often see HPC as a cost, rather than a value
investment, largely due to the difficulty businesses had
in determining the return on investment (ROI) of HPC
systems
ECONOMICS OF HPC FOR INNOVATION
Evolution of the HCP industry at a global level
Accelerated technological changes required by the
international competition
Servers were the largest segment but declined as a
percentage throughout the forecast period
The highest growth rates will be in storage and
services
7

8. 25/11/2011
ECONOMICS OF HPC FOR INNOVATION
Different configurations
ECONOMICS OF HPC FOR INNOVATION
• The total HPC market in 2010 was $25.6
billion, reaching $36.0 billion in 2015
New business models with the Internet and
cloud computing
HPC resources “in the cloud” are becoming
increasingly available and allow users to
consider the cloud as a service
8

9. 25/11/2011
ECONOMICS OF HPC FOR INNOVATION
Cloud as a Service business:
dynamically scalable and virtualizes resources
as a service over the Internet
IaaS PaaS Saas
Infrastructure as a Service Platform as a Service Software as a Service
Accessible on line, anytime, anywhere
Pay for what you use
Available on demand
Service level agreements
Automated scalability, failover
Concurrency management
ECONOMICS OF HPC FOR INNOVATION
HPC operates in an economic ecosystem
9

10. 25/11/2011
ECONOMICS OF HPC FOR INNOVATION
HPC is an innovation accelerator that
propels productivity, competitiveness and
economic development
HPC AND DEVELOPMENT
However, to make such competitiveness
change, it is necessary to consider that the
relation HPC- innovation shall apply in a
National Innovation System (NIS)
10

11. 25/11/2011
HPC AND DEVELOPMENT
Conceptual diagram of the NIS
Products
and
services
Development in terms of
Market
Market both science/technology and
industry
Innovators
Universities Companies
Industry Utilize knowledge
Demand
Produce knowledge
Collaboration
Knowledge
base Knowledge base
Develop social Labour Tax and
Policy Infrastructure
policy financial policy
Economy Education Science and
policy policy technology policy
Government
Society
Politics and economy
Environment, culture, tradition, national character
HPC AND DEVELOPMENT
To increase the impact of HPC on innovation,
we have to consider three key elements
Cooperation among public- private sector to
enhance the use of HPC as a tool for innovation
Cooperation among university and firms to
share HPC facilities
Develop the use of HPC in the manufacturing
supply chain for modelling, simulation and
analytics (MS&A)
11

12. 25/11/2011
FINAL REMARK
IF A COUNTRY WANTS OUT COMPETE
IT MUST OUT COMPUTE
¡¡¡ THANKS ¡¡¡
garridocelso@hotmail.com
12