Let’s Build A Smarter Planet: Smarter Cities

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Dan Cohen, Managing Director, IBM UK Ltd. August 2010Let’s Build a Smarter Planet:Smarter Cities 2009 IBM Corporation

The need for progress is clear.170 billionKilowatt-hours wasted each year byconsumers due to insufficient power usageinformation.2 2009 IBM Corporation

The opportunity for progress is clear.10%REDUCTION IN ENERGY COSTSUtility networks: Pacific Northwest National LaboratoryIn the Smart Grid project, consumers decreased their overallpeak load on the grid by 15% when offered the opportunityto save an average of 10% on their electricity bills.13 2009 IBM Corporation

The need for progress is clear.3.7 billion lost hours2.3 billion gallons of gasAnnual impact of congested roadwaysin the U.S. alone.14 2009 IBM Corporation

The opportunity for progress is clear.20%LESS TRAFFICTraffic system: Stockholm, SwedenThe city cut traffic by 20%, lowered emissions by 12% andreported 40,000 additional daily users of public transportation.15 2009 IBM Corporation

The need for progress is clear.100millionPeople worldwide pushed below the poverty lineby personal healthcare expenditures.16 2009 IBM Corporation

The opportunity for progress is clear. 30 million in cost savingsSmarter healthcare: University Pittsburgh Medical CenterThis renowned academic medical center projects a 30 million reduction incapital and operating cost reductions over eight years, enabling it to meetan ambitious clinical agenda7 2009 IBM Corporation

A planet of smarter cities: In 2007, for the first time in history,the majority of the world’s population—3.3 billion people—livedin cities. By 2050, city dwellers are expected to make up 70%of Earth’s total population, or 6.4 billion people.8 2009 IBM Corporation

A question to Leaders:-As a city leader, how will you createopportunity in order to be competitiveon a global scale?Dear old Edinburgh and Glasgow mustfigure out how to be competitive . . .9 2009 IBM Corporation

The city is a microcosm of the major challenges and opportunitiesfacing the planet today—intensified and accelerated. Here, allman-made systems come together and interact with one another.GovernmentServicesPublic SafetyTransportationEnergy e 2009 IBM Corporation

Time to act: Cities—more than states, provinces or even nations—will increasingly serve as the crucibles where the success or failureof our planet is determined.11 2009 IBM Corporation

We are experiencing the reality of global integration.The world is connectedECONOMICALLY.SOCIALLY.TECHNICALLY.A series of shocks:Climate changeEnergygeopoliticsGlobal supplychainsFinancial CrisisPlus rapidly evolving and ongoing significant trends:12ChangingdemographicsEmpowered consumersand citizensImpact of technology 2009 IBM Corporation

The digital and physical infrastructures of the planet are converging Computational power is being put into things we wouldn’t recognizeas computers. Indeed, almost anything—any person, any object,any process or any service, for any organization, large or small—can become digitally aware and networked.13 2009 IBM Corporation

because intelligence is being infused into the way the world works.Our world is becomingINSTRUMENTED.Our world is becomingINTERCONNECTED.Virtually all things, processes andways of working are becomingINTELLIGENT.14 2009 IBM Corporation

We now have the ability to measure, sense and monitorthe condition of almost everything.30 billion1 billion85%By 2010, 30 billion RFIDtags will be embeddedinto our world and acrossentire ecosystems.By 2010, there will be morethan 1 billion camera phonesin existence.Nearly 85% of newautomobiles willcontain event datarecorders by 2010.Instrumented15InterconnectedIntelligent 2009 IBM Corporation

People, systems and objects can communicate and interact witheach other in entirely new ways.2 billion4 billion1 trillionThere will be an estimated2 billion people on theinternet by 2011.There are an estimated4 billion mobile phonesubscribers worldwide.Soon, there will be 1 trillionconnected devices inthe world, constituting an“internet of things.”Instrumented16InterconnectedIntelligent 2009 IBM Corporation

We can now respond to changes quickly and accurately, andget better results by predicting and optimizing for future events.15 petabytes 1 petaflop1 square kilometerEvery day, 15 petabytesof new information are beinggenerated. This is 8x morethan the information in allU.S. libraries.New analytics enable high-resolutionweather forecasts for areas as fine as1 to 2 square kilometers.Scientists are working toprevent influenza pandemics bymodeling the viruses with asupercomputer that can operateat one petaflop, or one quadrillionoperations per second.Instrumented17InterconnectedIntelligent 2009 IBM Corporation

An opportunity for cities to think and act in new ways.18 2009 IBM Corporation

Smarter cities are working to infuse intelligence into each oftheir core systems.GovernmentServicesPublic SafetyTransportationEnergy eExamples 2009 IBM Corporation

Real examples of how cities are on theJourney to ‘smarter’20 2009 IBM Corporation

Smarter transportation: An opportunity to improve the transitexperience, reduce congestion and encourage a modal shiftamong usersCities can infuse intelligence into their entire transportation system,improving drivers’ commutes, giving better information to cityplanners, increasing public transportation usage and the productivityof businesses, and raising citizens’ quality of life.ROAD USER CHARGINGEmploy a dynamic tollsystem based on the flowof vehicles into and outof a city to reduce traffic.21ELECTRONIC FAREMANAGEMENTEnable rail, bus and roadcustomers to purchase faresvia SMS or online and havethe fare NAGEMENTGain real-time trafficprediction and intelligentroute planning capabilities. 2009 IBM Corporation

Smarter transportation: Client transformationsStockholm implemented an intelligenttoll system in the city center, which resultedin 20% less traffic, 40% lower emissionsand 40,000 additional users of the publictransportation system.22To encourage citizens to use multiple modesof transportation and make it easier to alignthe cost of transit with its impact on theenvironment, the Singapore Land TransportAuthority implemented fare managementwith smart cards that can be used to pay forbuses, trains, taxis, road-use charging andparking. 2009 IBM Corporation

Smarter energy and utilities: An opportunity to manage supplyand demandBy providing real-time information about the flow of energy,an intelligent utility system helps citizens and utilities make smarter,more responsible choices about the way they buy, sell andmanage utility services.SMART GRIDMonitor the health andstability of the grid atall times, identifyingan outage or issue assoon as it happens anddispatching crews toaddress it immediately.Enable customers tomonitor energy pricesand their own energyuse in real time.23BUILDINGEFFICIENCYASSESSMENTSReduce energyconsumption andCO2 emissions, andsave water usage,using sensors tomonitor everythingfrom motion andtemperature tohumidity,precipitation,occupancy and light.WATERMANAGEMENTUse the right toolsto optimizeconsumption,monitor quality andmodel past andfuture water basinbehaviors.ENERGY PORTALStore and quicklyaccess energyconsumption data,customer data,device monitoring andsensor data at alltimes—empoweringthe consumer. 2009 IBM Corporation

Smarter energy and utilities: Client transformationsCenterPoint Energy in Houston is installingover 2 million smart meters and in somecases an energy controller for householddevices. Homeowners will be able to accesstheir usage information in home displays oron a personal website to make smarterconsumption decisions.24DONG Energy in Denmark installedmonitoring devices across their distributionnetwork. The increased insight into the grid’sperformance will potentially lessen outagetimes by up to 50% and reduce maintenanceinvestments by up to 90%. 2009 IBM Corporation

Smarter healthcare: An opportunity to achieve better qualityand outcomes, increase value and improve accountabilityand sustainabilityA smarter healthcare system forges partnerships and makes betteruse of data in order to deliver excellent care, predict and preventdisease and empower people to make smarter choices.HEALTH INFORMATIONEXCHANGESEnable patients,consumers, healthpractitioners and insurers tosecurely share clinicalinformation acrossorganizational boundaries,enabling safer, more timely,efficient and effectivepatient-centered care.25CONSUMER PORTALSEncourage consumers toassume responsibility forhealth and chronic diseasemanagement throughtransparency of healthcarecosts, quality of care andprescription drug costs,empowering them to makewiser health and financialdecisions.DISEASE SURVEILLANCEPrevent and manage threatsto the health of a communityby capturing, sharing andmodeling data to spot trendsand identify causes, detectdisease outbreaks early,efficiently manage casesand take action as neededto protect the public. 2009 IBM Corporation

Smarter healthcare: Client transformationsA regional healthcare provider in France,created a regional information communicationand management solution that improved theefficiency of patient care, reduced the risk ofmedical error and improved emergencyresponse coordination.26A public healthcare organization, ServicioExtremeño de Salud in Spain, has built aregionally integrated system that lets patientsgo to many health centers within the region,knowing a doctor there can have the patients’complete, up-to-date records for faster andmore accurate treatment. 2009 IBM Corporation

Smarter telecommunications: An opportunity to interconnectthe systems of a smarter city and lay the groundwork for longerterm economic growthEnhanced broadband infrastructure is the critical backbone ofsmarter communications and will spur advances in everything fromscience and medicine to business and technology, and will helpbillions of people join the global economy.SMARTER TRAFFICSYSTEMSConnect the elementsof the transportationsystem—streets, bridges,intersections, signs, signalsand tolls—with a strongtelecommunicationsbackbone.27SMARTER HEALTHCARESYSTEMSAutomate patient records,share patient data, conductremote diagnostics andmore with fast and robusttelecommunicationsinfrastructure and systems.SMARTER FOOD SYSTEMSProvide end-to-end visibilityacross the entire global supplychain to allow farmers toobtain better real-time marketpricing for produce andsupplies and enable retailersand manufacturers to moreefficiently integrate productdemand with supplyreplacements. 2009 IBM Corporation

Smarter telecommunications: Client transformationsElectrical cooperatives in Alabama, Indiana,Michigan and Virginia are bringing broadbandInternet access to nearly 200,000 customersin rural communities via existing power lineinfrastructure. Broadband over power linetechnology modifies radio signals to transmitvoice and Internet data over electric utilitypower lines.28A southwestern city in the U.S. transformedits IT infrastructure and launched a widereaching wireless mobility project in order toincrease safety, security and access to cityservices for all its citizens. Now cityemployees can work from anywhere whileconnected to the city’s computing system,enabling a new level of collaboration with firstresponders, improving access to cityapplications and increasing productivity. 2009 IBM Corporation

Smarter education: An opportunity to nurture our mostvaluable resourceSmarter cities take a systemic view of their education systems,evaluating students in multiple dimensions throughout their lifetimesand equipping them with the skills and knowledge they need tocontribute to employers, communities and society.SMARTER CLASSROOMDeliver effective learningcontent and tools to everystudent and teacheraccording to their needs,preferences, abilities,technology and aspirations.29SMART ADMINISTRATIONIncorporate data acrosseducation systems to optimizeoperations, improve servicesand lower costs.INNOVATIONIN RESEARCHAccelerate innovation,knowledge creation and theeconomic impact of sciencewith powerful tools forresearchers. 2009 IBM Corporation

Smarter education: Client transformationsNorth Carolina State University providescomputing lab resources to schools andcolleges throughout the state via a centralservice. Students, faculty and teachers areable to receive a customized image of thecontent and applications to meet theirlearning needs.30A leading research group at a prestigiousuniversity in Massachusetts obtains thepowerful computing environment it needswhen it leverages the IBM-poweredWorld Community Grid to perform itsinnovative energy research. 2009 IBM Corporation

Smarter public safety: An opportunity to turn data into insightto protect citizens and communitiesA smarter city uses advanced technologies and community-basedapproaches to anticipate and prevent—not just respond to—crimesand emergencies.CRIME DATAAGGREGATIONPut decades worth of crimeinformation at the fingertipsof law enforcement officersat all times.31EMERGENCYMANAGEMENTINTEGRATIONConnect police, firedepartments, ambulanceservices and other firstresponders so all are instantlyalerted when an emergencytakes places.SMART SURVEILLANCESYSTEMSUse digital cameras tocontinuously monitor urbanareas and automatically alertauthorities when a suspiciousevent occurs or when alicense planet, vehicle orother entity is recognized. 2009 IBM Corporation

Smarter public safety: Client transformationsThe NYPD Crime Information Warehousegives officers mobile access to more than 120million criminal complaints, arrests and 911records, as well as 5 million criminal records,parole files and photographs—resulting in a27% reduction in crime.32The City of Madrid has developed a newEmergency Response Center, whichaggregates emergency call data and instantlyalerts the proper authorities, including police,ambulance services and the fire brigade. Thecity has experienced a 25% reduction inresponse time as a result of theimplementation. 2009 IBM Corporation

Smarter government services: An opportunity to infuseintelligence into needed services, stimulate economies andsave taxpayer time and moneyIncreased information sharing and collaboration drives smarterdecision-making.CITIZEN-CENTEREDDESIGNShift towardsa citizen-centeredbusiness modelto improve services,experiences andoutcomes whilelowering costs.33INTEGRATEDDELIVERYOF SERVICESConnect peopleto needed programswith speed andaccuracy. Enablecities to predictpotential issuesso preventativemeasures canbe taken.BUSINESS ANDCITIZEN SERVICESInterconnectdynamically withcitizens, communitiesand businessesto spark growth,innovation andprogress. Enableonline licenserenewals andvalidation of enagencies manage,monitor, analyzeand report onkey initiatives,with measurableoutcomes. 2009 IBM Corporation

Smarter government services: Client transformationsCity of Albuquerque introduced aperformance management system thatreduces manual data collection fromdisparate sources while enabling actionable,timely information for citizens, emergencypersonnel and others—realizing an initial costsavings of almost 2,000% ROI.34The Cheshire County Council achieved a20% reduction in time and cost required toperform in-home senior visits, improving theability to proactively manage the course ofhealth and social care for senior citizens. 2009 IBM Corporation

Advanced analytics can identify challenges and potential efficiencygains across all systems.GovernmentServicesPublic ations35 Measure relationships Run simulations Assess performance Establish goalsand prioritiesEnergy andUtilitiesHealthcare 2009 IBM Corporation

Performance management gives cities the ability to set priorities,assess progress and share results with the public.PublicANALYTICSSHARING RESULTSMANAGEMENTINFORMATIONFOR GOVERNMENTLEADERS36Businesses 2009 IBM Corporation

Smarter cities focus on the economic health and welfare of citizens andbusinesses—providing needed services, creating an economically soundenvironment and improving the quality of life for all.PublicANALYTICSSHARING RESULTSBusinesses37 2009 IBM Corporation

Kraft Australia explored a new frontier of customer understandingthrough advanced analytics Deep insight of customer behavior– 1.5 Billion posts across 38 languages Cut campaign development time in half– from 4 to 2 months Rejuvenated brand– How do you like your Vegemite? 32 ways Doubled Sales– “2 jars at a time”“ The work we did with IBM fundamentally changed our business strategy and how we looked at our own brand.”— Simon Talbot, Head of Corporate Affairs, Australia/ New Zealand, Kraft Australia 2009 IBM Corporation

The art of the possible 2009 IBM Corporation

The art of the possible has driven new leadership and collaborationmodelsIBM Research 2009 IBM Corporation

The new leadership, Business and IT requirements:CollaborationStandardsOpenness and innovationThese three elements are key to a city’s long-term strategy and road-map to success.41 2009 IBM Corporation

Building a smarter planetThe key precondition forREAL CHANGEnow exists.A period of discontinuity is a period ofOPPORTUNITYfor those with courage and vision.There will beWINNERS,and there will be losers.What will you do?42 2009 IBM Corporation

Thank you!43 2009 IBM Corporation

Let’s Build a Smarter Planet: Smarter Cities Dan Cohen, Managing Director, IBM UK Ltd. August 2010 . A planet of smarter cities: In 2007, for the first time in history, . Smarter public safety: An opportunity to turn data into insight

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