Let’s Build A Smarter Planet: Green & Beyond

#sam.request.name# - #sam.user.title##sam.request.date#Let’s Build a Smarter Planet:Green & Beyond 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondThe world is smaller, flatter and hotter.2 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondThe ecologicalgrealityy of livingg in a ggloballyy integratedgworldis upon us. EconomicEi ddownturntrequiresiddoingi more withith ththe same. The effects of climate change are both a societal and business concern. Empowered consumers demand more responsible business practices. Managing water supplies and sources is a growing challenge. Energy use is rising at an unprecedented rate.Organizations play a major role in shaping this reality,andd ththereforefhhave a responsibilityibilit tto manage itits iimpact.t3 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondOrganizations will manage their environmental impact–or “go green” by addressing three critical resources:WATERWater is needed togenerate energyand energygy is needto provide water.CO2 emissionscontributet ib t tot climateli tchange, whichimpacts watersystems.ENERGYCARBONEnergy productionresults in CO2 emissions.4 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondEnvironmental sustainability is an imperative for 21st centurybusiness —one that not only encompasses conservation,pollution preventionprevention, and more but also enables the creation ofentirely new value and benefits.Lower costs whileovercoming operationalbarriers.5Strengthen reputationswhile meetingregulations.Create products andservices that give riseto new markets. 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondTo realize the benefits of sustainability,y an organizationgmust takea systemic view of its value chain .ITMANUFACTURINGWORKFORCE6SUPPLY CHAINCUSTOMERSTRANSPORTATIONFACILITIES 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondUncoveringg unexpectedpareas of cost.10 855 liters10,8556 6 billion6.6 46 billionWater requiredover the productliflifecyclel off a pairi offjeans.Number of new treesneeded to clear CO2emitteditt d bby ddatat centersteach year.Value of the carbon offsetpurchases by 20 countries inorderd tto meett emissionsi ireduction targets in 2008.7 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondUncoveringg unexpectedpareas of cost and opportunity.ppy20 milliongallons saved74% lessenergyIn water during chipmanufacturing processeachh year bby IBM’IBM’sBurlington FAB. Resultedin 3 million annualsavings.By implementing a greendata center, Care2, a globalonlineli community,it cutt costs,timproved performance, andpromoted its sustainability toattract new members.82,400 tonsavoidedUK retailer Tescoavoided an estimated 2,400tons of CO2 emissions byimporting wines in bulk andbottling them in lighter weightglass. 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondThe demand for changeg is ggrowing.g5975%1 in 459 countries andjurisdictions have or arepursuing implementationof mandatory cap andtrade systems.Of companies have seen anincrease in the number ofadvocacy groups collecting andreporting corporate socialresponsibility (CSR) relatedinformation about their company.Consumers say theywould switch brands for agiven product or service ifprovided with a moreethical alternative.9 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondThese mandates for changeg are mandates for smart.10 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondSomethinggpprofound is happening .ppg11INSTRUMENTEDINTERCONNECTEDINTELLIGENTWe now have the abilityto measure, sense andsee the exact conditionof practically everything.People, systems andobjects can communicateand interact with eachother in entirely new ways.We can respond to changesquickly and accurately,and get better resultsby predicting and optimizingfor future events. 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond An opportunity for smarter organizationsto find the value in ‘green’.Lower costs whileovercoming operationalbarriers.12Strengthen reputationswhile meetingregulations.Create products andservices that give riseto new markets. 2009 IBM Corporation

Let’s build a smarter planet: Green & BeyondTo achieve these benefits, organizations must build:113Green infrastructureIInstrument,tt manageand optimize acrossbroad infrastructure –including IT equipment,data centers,, propertyp p yand facility, data andapplications.2Sustainable solutionsIImplementlt new ways totsource, manufacture anddistribute goods andservices in a moresustainable manner whilelowering costs. Deployplatforms for transparentand proactive engagementwith employees, consumersand communities.communities3Intelligent systemsManage resources att theMthmacro level—utilities,traffic and water systems.Provide actionable timerelevant data that informbetter decisions. 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond1Green infrastructure is instrumented, interconnected and madeintelligent to mitigate the environmental impact of ITEQUIPMENTDATA andAPPLICATIONSLower costsLt bbyimproving bothoperational efficiencyof data center andth iinteractionthetti withithinfrastructure.Use intelligentmanagement ofbusinessinformation to lowerenergy cost ofapplications.PROPERTY andFACILITIES14Discover, manage,optimize and reportoptimize,energy efficiency andcompliance for assets andinfrastructure. 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond1Green infrastructure:Applications and benefitsSMART ISBuilding green data centers tosupport corporate brandobjectivesSMART ISProactively addressinginformation growth andenvironmental regulation.SMART ISHolistic view of energyconsumption that enhancesthe efficiency of buildings,fleets and physical assets.kika\Leiner: Designed and builtnew energy efficient scalablemodular data center –reducingelectrical consumption by up to40%. The new data centerextended their environmentalstrategyt ttot includei l d ththeiri ddatatcenter.A smart organization: Can builda green infrastructure to anticipateand respond to informationgrowth, measure and verifyperformance and achieve datacompression rates of up to 80%.Star Technology Services: Canmanage both power and coolingcapacity and begin to include nonIT resources into its eventmanagement. They use the sameinfrastructure monitoring IT tomonitorit andd measure non-ITITdevices and view overall poweruse.15 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond1Green infrastructure:IBM is helping clients as they focus across the infrastructure Data Center Thermal and energyassessmentsRationalize and consolidateEnergy efficient data centerdesignModular approachInnovative coolingtechniquesEnergygy Managementg Measure, collect, benchmarkMonitor, trend, managePolicy based optimizationTrack, verify, report forcomplianceliEarn energy efficiencycertificatesIT Equipmentq p Property and Facilities 16Instrumentation of assets forpower, temperature, layout,and problem identificationIntelligent lifecyclemanagement solutionsSustainable facilitiesanalysis for emissions,wastet generation,tiwatertrecyclingData and Applications De-duplication andcompressionLifLifecyclel management,tretention and archivingApplication ck and usageaccounting Energy efficient productdesignsWorkload optimized systemsActive energy managementVi t li ti off server,Virtualizationstorage, network,application, & desktopTiered storageEnvironmentallyy responsiblepdisposal of assetsEnergy efficiency ITassessments 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond2Sustainable solutions account for environmental andsocial impacts of activities to better equip organizationsfor smarter growth Supply chainand distributionFrom the supplier, to the manufacturer, to transporter, warehouseoperator and beyond.Manufacturingand businessoperationsUse fewer resources in the creation of products.Improve environmental attributes of products.Reduce waste creation and associated disposal costs.Governanceand strategyUnderstand customers’ sustainability expectations.WorkforceReduce environmental impactpof employeesp ywhile enhancinggpproductivity.yDevelop sustainability strategies aligned with overall business strategy.Attract and retain employees through socially responsible practices.17 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond2Sustainable solutions:Applications and benefitsSMART ISConsolidating distributioncenters to reduce emissionsby 15% and fuel costs by 25%.SMART ISReinventing manufacturingprocesses to use less water,energy and other chemicals.SMART ISReducing travel, real-estateand office costs whileappealing to top talent.COSCO: Performed an analysis ofits operations across productdevelopment, sourcing, production,warehousing and distribution. Thecompany ultimately consolidated itsdistribution centers from 100 to 40to prevent 100100,000000 tons ofemissions each year.IBM Burlington FAB: Retooledits chip-making process to cutannual water use by 20 milliongallons, chemical use by 15,000gallons and electricity use bymore than 1.5 million kWh.A smart organization: Canreduce paper consumption by80%, cut annual real-estate costsby tens of millions of dollars andeliminate 20% of programming (orsoftware) code —and associatedenergy costs —byby rere-engineeringengineeringits workforce operations.18 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond2 Sustainable solutions:IBM is helping organizations enhance their Product and SupplierManagement Governance andBusiness Strategy 19Using lean and six sigmaprinciples to drive reductionin energy and waterinefficiencies, CO2 emissionsand waste generationSupply chain optimization oftrade-offs considering servicelevels, quality, cost, and CO2emissionsP bli sectorPublict analysisl i offenergy and water use, CO2emissions, procurementpractices, facilities andequipment, wastemanagement and workforceprogramsEnvironmental productlifecycle managementservicesRegulatory compliance forproducts and processes Global benchmarking forsustainability and corporatesocial responsibility (CSR)Development of CSR andsustainability strategiesDevelopment of strategies toreduce energy and CO2emissionsExecutive dashboards forg and reportingpgmonitoringCollaboration andengagement strategies withkey stakeholdersWorkforceo o ce Managementa age e t Enablement of remoteworkingRemote EmployeecollaborationPPaperreductiond ti strategiest t iTravel foot-printing andreduction strategiesOnline collaboration ‘Jams’ Distribution andLogistics Optimization strategies tobalance environmentalperformance with cost,quality and service levelsRFID tagging and trackingsystemsNetworked sensors andmeters for environmentaldata collectionEnvironmental dashboardmanagement for monitoringand reportingBusiness process redesignfor inclusion ofenvironmental impactassessment and reduction 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond3Intelligentgsystemsygather, synthesizegyand applypp y informationto change the way entire industries operate.Smart waterApply monitoring andmanagement technologiesto help reduce the use ofwater, as well as relatedenergy and chemicals.Smart trafficUse real-timereal time trafficprediction and dynamictolling to reduce congestionand its byproducts whilepositively influencing relatedsystemssystems.Smart energyAnalyze customer usage andprovide customized productsand services that help toboost efficiency from thesource through the grid to theend user.userCongestionWaterEnergy rcesSSmartthhome 2009 IBM Corporation