Cbs essay comp smarter planet

Smarter Business Essay Competition

IBM Smarter Business
Anders Quitzau
Innovation Executive

1 © 2012 IBM Corporation


The world is becoming smaller and flatter.

© 2012 IBM Corporation


The reality of living in a globally integrated world is upon us.

§ Frozen credit markets and limited access to capital.
§ Economic downturn and future uncertainty.
§ Energy shortfalls and erratic commodity prices.
§ Information explosion and risk/opportunity growth.
§ Slowing superpowers and emerging economies.
§ Increasingly complex supply chains and empowered consumers.

The world is connected:
economically, socially and technically.


IBM Denmark Smarter Planet

U.S. CPG companies and retailers lose
$40 billion annually due to inefficient
supply chains.

14 4


In the U.S., a typical carrot has traveled 1,600
miles, a potato 1,200 miles, a chuck roast 600
miles…

…grocers and consumers throw away $48
billion worth of food every year.

19 5


In distributed computing environments 85% of
computing capacity sits idle.

In six years the power consumption of a server
has risen from 8 watts to more than 100 watts
per $1,000 worth of technology.

On average, for every 100 units of energy piped
into a data center, only 3 units are used for
actual computing. More than half goes to cooling
the servers.

20 6


A mandate for change is a mandate for smart.



The world is about to get
a whole lot smarter.



Our world is becoming

INSTRUMENTED
Our world is becoming

INTERCONNECTED
Virtually all things, processes and ways
of working are becoming

INTELLIGENT

An opportunity to think and act in new ways—



Now we have the opportunity to measure and track every
details and consequences in processes and life cycles.

30 billion 1 billion 85%
By 2010, 30 billion RFID tags By 2010, there were more than 1 Nearly 85% of new
will be embedded into our billion camera phones in existence. automobiles now
world and across entire contain event data
ecosystems. recorders.

Instrumented Interconnected Intelligent



People, systems and “things” can communicate with each
other in completely new ways...

2 billion 4 billion 1 trillion
There will be an estimated 2 There are an estimated Soon, there will be 1 trillion
billion people on the internet by 4 billion mobile phone connected devices in
2011. subscribers worldwide. the world, constituting an
“internet of things.”




Now we can respond much faster to, and make more accurate
predictions about, changes in the environment and achieve
better results on future events.
15 petabytes 1 petaflop 1 square kilometer
Every day, 15 petabytes Scientists are working to New analytics enable high-resolution weather
of new information are being prevent influenza pandemics by forecasts for areas as fine as
generated. This is 8x more than the modeling the viruses with a 1 to 2 square acres.
information in all U.S. libraries. supercomputer that can operate at one
petaflop, or one quadrillion operations
per second.




The convergence of physical and digital has enormous value

What is really going on?
1.
Collect and interpret new data from sensor
systems to determine events

5. How to do it? 2. When to act?

Manage and choreograph the processes Analyze events to identify insights that
that perform the action determine when to act

4. 3.
What to do? What is happening?
Visualization of events in business
context
Determine the best course of action to
respond to identified business situations



+ + =
An opportunity to think and act in new ways—



A smarter planet holds enormous
promise for progress.



Every natural system and man-made system
is becoming interconnected, instrumented and intelligent.



Smarter planet: Thinking and acting in new ways to make our
systems more efficient, productive and responsive.

§ NEW
INTELLIGENCE
§ DYNAMIC
INFRASTRUCTURE

§ SMART WORK § GREEN
AND BEYOND



Let’s Build a Smarter Planet

Retail


n a catalyst for change,Essay Competition
Smarter Business forcing retailers to
cting the industry.

Changes impacting the retail industry
Building a smarter planet

Changes Impacting the Retail Industry

SOCIOECONOMIC COMPETITIVE
!  Global financial crisis and credit !  Industry consolidation and
crunch proliferation of private label
!  Consumers in major markets !  Reduced barriers to entry and
spending less (constrained by new business models
income)
!  Growth markets resilient
!  Product and food safety
!  Environmental concerns

CONSUMER BEHAVIOR TECHNOLOGICAL
!  Decreased spending ability and !  Pace of technology change
Flight to value amid job insecurity such as pervasive connectivity
and inflation !  Consumer adoption of
!  Technology savvy and informed, with technology, mobile devices,
high expectations from online ratings and social networking
to e-coupons !  Security and compliance
!  Increasingly concerned about food/
product safety and environment
3
IBM Internal Use Only © 2009 IBM Corporation



mers are becoming Smarter –
gent, instruments and are becoming
Consumers interconnected Smarter -

increasingly
Building a smarter planet

Immersive
- intelligent,
- instrumental, and
- interconnected
Mobile

Social Web

Web Site
Store Kiosk
Call Center
Store POS

Limited Endless
4
Source: IBM Global Retail Industry IBM Internal Use Only © 2009 IBM Corporation




Banking



Changes impacting the financial industry
Building a smarter planet: Financial Services

There are dramatic forces of change across financial institutions

ECONOMY TRUST
Weak conditions impact Rebuilding trust and confidence
investment decisions and reduce across the system is critical to
need for financial services future growth and stability

COMPETITION REGULATION
Intensified competition with Radically increased oversight
increased M&A, divestitures and ushering in a new era of
entrance of non-bank service increased government
providers intervention

CLIENTS CAPITALIZATION
Rapidly evolving expectations for Mature markets and
offerings, service unbiased emerging markets alike
advice, and convenience focus on rebuilding their
capital reserves

22 3 © 2012 IBM Corporation


The global financial system is highly complex

with manyfinancial system is highly complex with many stakeholders
The global stakeholders

and requires new approaches to create value
The global financial system is highly complex with many stakeholders
and requires global financial system is create value
•  The new approaches to
massively interconnected and
interdependent
•  The global financial system is
massively interconnected andis highly
The global financial systemwhich is a complex with many stakeholders
•  An adaptive system
interdependent Financial
and •  An adaptive system which is a to create value
requires newnetwork – evolving
complex approaches Financial institutions
organically
complex network – evolving institutions
•  The global financial system is
organically
•  The number of intersection
massively interconnected and points Surveillance
interdependent
•  The number financial services networks
of the of intersection points Compliance
Surveillance and monitoring
of theacross the which is a
financial services networks
•  An adaptive system 18 largest countries Financial
Compliance
and monitoring
complex network – evolving
across the 18 largest countries institutions
increased 14x in 20 years1
organically Soundness
increased 14x in 20 years1
Regulators
Regulators Stability
Soundness
Supervisors
Supervisors
•  The• system moves moves more than
The system more than
•  The number of intersection points Stability
Surveillance
of the financial services networks Compliance

$74T $74T around the world each day
and monitoring
across the 18 largest countries day
around the world each
increased 14x in 20 years1 Laws and Soundness
•  Digitization of the “real economy” Regulators Stability and Supervisors
•  Digitization of the “real economy”
Laws
rules
Standards
rules
Standards
•  The system moves more than
has transformed availability of
has transformed availability of
$74T around the world each day
information and how decisions are
information and how decisions are Laws and
•  Digitization of the “real economy”
mademade rules
Standards
has transformed availability of Policy makers Policy makers
•  Anonymity and how decisions are
information and susceptibility make
the •  Anonymity and susceptibility make
madesystem an attractive target for Policy makers
•  Anonymitysystem an attractive target for
the and susceptibility make
criminal elements
criminal elements
the system an attractive target for
•  The system intermediates the
criminal elements
•  The systemsystem people in 190 the
needs of billions of intermediates
•  The intermediates the
countriesbillions of people inof people in 190
needs of - in of billions of
needs thousands 190
languages. thousandsthousands of
countries - in
countries - in of
languages.
languages.
1 – Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of England
1 – Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of England

4 4 1 – Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of IBM Internal Use Only
England
IBM Internal Use Only © 2009 IBM Corporation © 2009 IBM Corporation
4


These conditions require new approaches to

create value on three key imperatives
Winners will focus on three key imperatives
Winners will focus


Reinvent the
Reinvent the
Reinvent the Develop new
Develop new
Develop new Integrate risk
Integrate risk
Integrate risk
business model
business model
business model intelligence
intelligence
intelligence management
management
management

Drive a a simplified and
Drive simplified and
Drive a simplified and Develop enterprise
Develop enterprise
Develop enterprise Achieve compliance
Achieve compliance
Achieve compliance
streamlined agile
streamlined agile
streamlined agile wide capabilities to
wide capabilities to
wide capabilities to objectives while
objectives while
objectives while
enterprise that
enterprise that
enterprise that enable informed
enable informed
enable informed mitigating operational
mitigating operational
mitigating operational
balances growth,
balances growth,
balances growth, judgment, client-
judgment, client-
judgment, client- risk, fighting crime
risk, fighting crime
risk, fighting crime
efficiency and
efficiency and
efficiency and centricity and
centricity and
centricity and and optimizing
and optimizing
and optimizing
business resiliency
business resiliency
business resiliency profitable growth
profitable growth
profitable growth financial returns
financial returns
financial returns




Smarter Commerce



Supply-Chain Executives face three significant
challenges

Volatility
Complex market conditions causing constant flux in demand

Visibility
Need for integrated, timely information to make rapid decisions

Value
Constant pressure for the supply chain and operations to create
enterprise value



Visionaries and planners are building strategic, smarter supply
chain capabilities

Visionaries
Predict demand and immediately respond across their networks
Use business intelligence and analytics
Impressive Collaborate with supply chain partners
Optimize inventory, cost and their global network
Financial returns

Utilize variable cost structures
Planners
Employ enterprise S&OP
Focus on cost reduction/containment
Enhance visibility to key partners with dashboards
Use network distribution planning
Operators
Use rudimentary planning
Emphasize cost reduction/containment

None
Never 5-10 years 3-5 years 1-2 years Now

Strategic capabilities over time

Source: IBM Institute for Business Value.

Figure 2: Visionaries and planners are building strategic, smarter supply chain capabilities.




Sustainability



Why sustainability?

Competitive differentiation and positive brand image

Cost efficiencies in energy, water and waste management

Potential for gaining share of new and growing market
segments


most often cited competitive advantage, followed by industry suppliers, partners, NGOs and other interested parties – in the
leadership and enhanced brand (see Figure 3). For the rest of co-creation of innovative sustainability strategies. In addition,
Smarterthe population, the top response was customer demand,
Business Essay Competition realizing the importance of goal setting, innovators monitor
followed by competitive advantage and cost efficiency. their performance against clearly articulated goals, targets and
measures and report their successes to employees, customers,

Strategy The innovators strive to become industry leaders, and they
focus on innovative sustainable practices to achieve this goal.
Their priorities focus on environmental challenges (61
business partners and shareholders.

Our innovators understand that a sustainability strategy is the
percent), social challenges (49 percent) and outside-the-enter- foundation that supports a comprehensive program and true
prise broader economic challenges (40 percent). value achievement. Innovative companies – those leading the
Innovators use sustainability strategy to become industry way with well-developed strategies – articulate a sustainability
vision and accompanying strategy that are core to the overall
leaders business strategy and position them for competitive advantage.

What are the strategic objectives of your sustainability strategy?

27%
Customer demands 27%
23%
Competitive advantage #1 differentiator
45%
23%
18%
22%
32% #3 differentiator
22%
Regulatory compliance 27%
21%
#2 differentiator
36%
19%
27%
17%
27%
15%
Market opportunities
32%
13% Others
Differentiated products/services Innovators
18%

Figure 3: Strategic objectives.




Social Business



Social Businesses have distinct characteristics that distinguish
them from other organizations

They activate networks of people that apply relevant content and expertise to
improve and accelerate how work gets done, delivering unprecedented return
for the time invested

At their core, they are...
Engaged deeply connecting people to be involved in
productive, efficient ways

Transparent providing line of sight across traditional
boundaries and better aligning actions to needs

Nimble speeding up
business with insight to
anticipate and address
evolving opportunities



CIOs are also reporting a shift in investment consistent with
these trends

According to the 2012 IBM CIO Study:

66% of CIOs from 74% of CIOs see Nearly 3 times as
top-performing collaboration and many CIOs in top-
organizations see communication as a key performing
internal communication driver in transforming organizations view
and collaboration as their organizations Social Network
key to innovation Analysis as a top
priority



Business functions will need to be redefined in a
Social Business... but how?

Human
Marketing
Resources

Customer Product
Service Development



The way the world works is changing—and leaders must lead
through the unknown.

8 in 10
CEOs anticipate turbulent
change and bold moves.

3x
Increase in the gap between
leaders’ need for change and
their ability to manage it.

Source: 2008 IBM CEO Study



Six imperatives for a Smarter Business



We’ve only just begun to uncover what is possible on
a smarter planet.

The world will continue to become
smaller, flatter and smarter. We are
moving into the age of the globally
integrated and intelligent economy,
society and planet.

The question is,
what will we do with it?
in
• Smarter Commerce
• Smarter Social Business
• Smarter Banking
• Smarter Retail
• Smarter Sustainability



Links for inspiration

§ IBM Smarter Planet

§ IBM Institute for
Business Value

§ IBM Social Business



Thank you

linkedin.com/in/andersquitzau

Twitter.com/Anders_Quitzau

Facebook.com/AQuitzau

Slideshare.net/AndersQuitzauIBM


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