Trends in Technology AGA/EEI Accounting Leadership Conference Joe Laethem June 29, 2005
Accenture <ul><li>Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 110,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. Its home page is www.accenture.com. </li></ul>
Agenda <ul><li>Five Core Disciplines </li></ul><ul><li>Utilities Technology Take-up Curve </li></ul><ul><li>Major trends in 2005-2007 </li></ul><ul><li>Infrastructure Current Situation </li></ul><ul><li>World Class IT Infrastructure </li></ul><ul><li>Emerging Technologies </li></ul><ul><ul><li>SmartDust /Remote Sensing Infrastructure </li></ul></ul><ul><ul><li>Silence Commerce </li></ul></ul><ul><ul><li>Mobility </li></ul></ul><ul><ul><li>Sentiment Monitoring Services </li></ul></ul><ul><ul><li>Human Performance </li></ul></ul>
High performance in five core disciplines Innovation Industrialization Infrastructure Integration Information Infrastructure Replacing technology with better technology Strategy enabling innovations Labor cost arbitrage Cycle time focused delivery Predictable and repeatable Business productivity innovations Cross enterprise service oriented architecture Basic Progressive Pioneering Enterprise integration Point integration solutions Real time insight Business intelligence Transaction data efficiency Dynamically provisioned and externally secure Internal on-request Consolidate and standardize
Utilities Technology Take-up Curve Incubate Rate of Growth Take Up Growth Maturity Emerging “ State of Market” Mobile & Wireless Scaling Ubiquitous Computing Predictive Operation Arch Performance Arch Web Services Storage & Database Tech Security Enterprise Integration Arch Next Gen Networks Business Intelligence Content Mgmt Portals Tech Infrastructure & Optimization Silent Commerce /RFID Advanced Metering (mass market) AMR (mobile, mass market) Narrowband PLC Asset Telemetry/Remote Sensing Distributed Generation Hydrogen Economy Insight Driven Operations Broadband over Powerline (BPL)
Major trends in 2005-2007 <ul><li>Consolidation </li></ul><ul><li>No new thing </li></ul><ul><li>Pricing declines continue </li></ul><ul><li>Hardware replacement cycle moderating </li></ul><ul><li>Software growth moderate, except in specialty areas </li></ul><ul><li>Growth slowing in most major technology sectors </li></ul><ul><li>Risk averse buying </li></ul><ul><li>Focus on enhancements </li></ul><ul><li>Procurement driven deals </li></ul><ul><li>Possible LAN upgrade next </li></ul><ul><li>No major builds; security, BI and HR top spending </li></ul><ul><li>9% increases in opex; 15% in capex; 25 to 35% in compliance, M&A and security </li></ul>Supply Side Trends Demand Side Trends
Major changes in growth and share of technology sectors continuing Mainframe losing share to networked computing Specialized software far outpacing growth in integrated enterprise applications Security riding high but likely to crash as it becomes like airbags to cars
Recent Accenture CIO research on adoption rates in key technologies 61% 4% 22% 13% Virtualized storage 9% 35% 41% 23% 26% 41% 23% 18% Starting a pilot 4% 30% 57% RFID 39% 22% 13% XML Document and workflow 23% 36% 18% Open source applications 14% 36% 9% VOIP 13% 17% 35% Linux 41% 5% 14% Wireless for workforce 46% 14% 18% Enterprise integration tools 55% 23% 5% Web services Committing a major part of our business Doing Nothing Starting to investigate
Infrastructure Current Situation <ul><li>Infrastructures in most organizations are overly complex … </li></ul><ul><li>IT budgets have been reduced and most organizations have not been able to effectively capitalize on recent advances in technology... </li></ul><ul><li>New business demands are requiring flexibility and adaptability around the IT infrastructure… </li></ul>Business Computing Flexibility Cost Reduction Mobility Flexibility Demands Web Presence, eCommerce / B2B Virtual Enterprise ROI Simplified Integration Agility Security Implications on B2B Virus Protection Mobility Industry PCs, Client/Server , The Internet Intel Economics Web Services Virtualization Trends Unix / Windows in the Data Center Enterprise IP , WiFi Linux Utility Computing Security / Patch Mgmt Typical IT Frenetic, unplanned Cost cutting Rationalization Activity Infrastructure deployment Infrastructure neglect Consolidation Virtualization …. Internet Firewalls Firewalls become Mainstream 1993 1997 2001 Today Most organizations are operating in catch-up mode to the technology
World Class IT Infrastructure Data Center (WAN) (LAN) Workplace Operations & Security Network LVI 2004 2005 2006 2007 2008 Virtualization Consolidated & standardised Utility Data Center Utility Computing Point to point MPLS All IP Enterprise on demand (Voice & Data) Copper /Fibre Wireless Desktop Laptop PDA Thin client/ wireless devices Manage and servicing within the Data Center Manage and servicing a full mobile workforce outside the firewall Operations & Security – Moving to full mobility, virtualization will place greater challenges to operations and is redefining security functions – the firewall was the boundary. Security evolution will place greater emphasis on architectural design, business process engineering, and business owners of technology solutions. Workplace – With working environments and functions moving out of the traditional environments, end-user devices will become “thinner” and customised to the business function supported – thus continuing the pendulum effect of Fat vs. Thin Client evolution. Network (LAN) – Moving towards widespread wireless connectivity will be required to enable true mobility computing capabilities. Network (WAN) – To take advantage of utility computing capabilities, flexible and variable bandwidth capacity will need to be made available from the carriers with a dominance of IP bandwidth capacity combining Voice and Data. Data Center – Virtualization and dynamic provisioning will lead to a Utility Computing model. A World Class IT Infrastructure will be one that achieves the objective of being agile, flexible and scalable Consolidated & standardised Proactive Ops Self Defending Enterprise
Emerging Technologies Sensor Telemetry / SmartDust - Remote Sensing Infrastructure Digital Pen & Paper - Field Force Enablement Silent Commerce / RFID - Automated Asset Management +
SmartDust and Self-assembling, wireless sensor networks <ul><li>The hardware design consists of a small, low-power radio and processor board and one or more sensor boards - a “networkable” wireless sensor. </li></ul><ul><li>Build-in software runs the hardware and network—making sensor measurements, routing measurement data, and controlling power dissipation. </li></ul><ul><li>Over the next 3-5 years, Self-assembling wireless sensor networks motes are expected to shrink to a significantly smaller scale, drop in price dramatically, and become an ubiquitous commodity component. </li></ul>Self-assembling wireless sensor networks combines sensors, computing, and communications at a smaller scale than previously seen in the industry < Millennial Net Multi-hop networking 20-40 meter range per node 115 kb/s data rate 2.8 x 2.3 x 0.5 cm Λ Berkeley Working prototype of Self-assembling wireless sensor networks mote
Accenture Technology Labs’ Remote Sensing Infrastructure The goal of our proof of concept is to demonstrate that gathering in real-time key viticulture variables delivers business value through more effective management of Soil, Irrigation, Disease, Pest, Nutrition, and Climate control. 3 Rain Gauge Units Sensor Type 1 Insects type & count 3 Anemometer 3 Leaf Wetness 17 Soil Moisture 3 air 3 soil Air/Soil Temperature
Application to Utilities <ul><li>Mesh Network modules can be attached to or built in different Utilities’ assets to enable applications such as: </li></ul>Automated Meter Reading Street light remote monitoring Electric poles maintenance and line monitoring Equipment predictive maintenance Tank Telemetry
Automated Meter Reading <ul><li>Low cost AMR deployment: Mesh-network enabled meters relay each other’s signals to a single connected neighborhood aggregator, reducing network hook-up cost. Signal can either be sent in real-time over a data network or collected wireless by driving within range. </li></ul><ul><li>Deeper reach : Mesh-network enabled modules can be used to monitor and/or control other home items such as security systems and appliances. </li></ul><ul><li>New services: Gathering of real-time data can be leveraged by the utility or third parties to provide end-customers value added services. </li></ul>
Street light remote monitoring <ul><li>Automated remote monitoring: Mesh-network enabled streetlamps relay each other’s status to a single connected neighborhood aggregator that can relay the data in near-realtime to a centralized server, providing a more effective alternative to manual inspection. </li></ul><ul><li>More insight : Mesh-network sensor modules can provide more insight into the nature and cause of the anomalies. </li></ul>
Electric poles/pylons maintenance and line monitoring <ul><li>Mesh-network sensor modules can be mounted on electric poles and pylons to relay status information that can be used to improve their maintenance as well as optimize energy transportation. </li></ul>
Equipment predictive maintenance <ul><li>Mesh-network sensor modules can be mounted on equipment to monitor temperature, vibration. </li></ul><ul><li>Data from sensors is transmitted wirelessly to a centralized data center where the data is compared to expected results, past performance and maintenance history of the equipment. </li></ul><ul><li>Abnormalities are reported to maintenance crews, often with expected solutions. </li></ul>
Tank Telemetry <ul><li>Active RFID are attached to the tanks’ gauge to relay the inventory level to a customer-site monitoring unit. </li></ul><ul><li>Monitoring units communicate readings back to the supplier central server using either a wireless data network (paging, cellular or satellite) or the wired internet. </li></ul><ul><li>An alerting mechanism triggers orders when tank level thresholds are met. </li></ul><ul><li>Scheduling deliveries are based on real time tank level information. </li></ul>Client site data aggregator / remote monitoring unit Supplier monitoring server
Silence Commerce: Key Tracking Technologies The tag is powered by a small internal battery. However the tag goes to sleep if it is not within the decoder field, hence the life of the tag is typically 5 years. Longer range than passive tags, Lower cost than Active Tags. They can also monitor sensor inputs, such as the temperature of an item, without needing to be powered by radio waves. Passive RFID Semi-Passive RFID Active RFID GPS Active Tags are powered by an internal battery. The tag will for the duration of its life, transmit a radio frequency (RF). Some active tags offer localization capability based on triangulation (RTLS – Real time localization System). Like for semi passive ones, they can also be used to monitor sensor inputs and transmit the readings. Tags receive power from RF energy beamed by the interrogator and only transmit information when the RF energy activates the internal circuitry. Because passive tags rely solely on radio waves for power, these tags require no battery, can be made extremely small, are low in cost and have a long operating life. Tags Readers GPS uses a constellation of satellite as reference points to calculate positions accurate to a matter of meters. GPS receivers are embedded in a tracking unit that communicates the position back using a wireless network such as a cellular network or satellites for global coverage.
Applications to Utilities Equipment Management Enforcement of safety procedures Machine Operational Control Security Tracking, maintenance and Inspections of field assets
Enforcement of safety procedures <ul><li>Workers are identified using RFID badges. Personal Protection Equipment (PPE) such as gloves, boot, hardhat and goggles are also tagged using miniature passive RFIDs. </li></ul><ul><li>When a worker enters a potentially hazardous areas or get into the proximity of products or equipment requiring specific PPEs, the RFIDs attached to the PPEs are read and compared to the requirements. </li></ul><ul><li>When heavy machinery is operated the driver’s identity is verified and his certification level, and alertness are checked in order to protect those operating as well as those around. </li></ul>
Tracking, maintenance and Inspections of field assets Rugged Button memory can be used to help track and monitor asset such as utility poles and pylons. Vital maintenance and repair information can be stored on the Button and easily accessed with one touch.. Button memory are rugged autoID designed for use and survival in harsh operating environments and with the ability to store up to 8MB of data. Some comes with built in sensors such as temperature, combined with a data logger. They are similar to RFID, but require contact to be read.
Mobility: Research prototypes Multimedia Response Center Allows end users to use camera phones and other emerging portable multimedia devices to communicate with call center. Digital Pen Captures records digitally while maintaining the ease of use of paper-based solutions and leaving a paper-trail for end-users.
Digital Pen and Paper is how Reality Online is applied to ordinary devices we use every day. <ul><li>Digital Pen </li></ul><ul><ul><li>An ink pen equipped with electronic sensors to allow it to digitally capture what the Digital Pen writes and transmit it back to a computer. </li></ul></ul><ul><li>Digital Paper </li></ul><ul><ul><li>A normal piece of paper with a unique pattern printed in the background </li></ul></ul><ul><ul><li>Pattern allows the Pen to orient itself on the paper, enabling it to understand where it is writing on the page </li></ul></ul><ul><li>1000 Sensor Data Points Per Keystroke </li></ul><ul><ul><li>Location, Speed, Pressure, Timestamp, Inclination and Rotations </li></ul></ul><ul><li>Always Connected </li></ul><ul><ul><li>Bluetooth or USB for syncing </li></ul></ul>Battery Memory Camera Ink Cartridge and Pressure Sensor Bluetooth Transceiver Processor
Digital Pen technology captures both the content and context of written forms. Translated Text <ul><li>Character Recognition : Pen strokes are transmitted to the computer, and then translated to type written text. </li></ul><ul><li>Context : The Pen tells the computer what form/fields the text was written into for automatic filing/indexing. </li></ul>Hand Written Form
Digital pen technology can be used in application requiring near-realtime feedback. Hand Written Form Bluetooth enabled phone Bluetooth enabled pen ( Nokia Mobile Pen) Data center Pen wireless Synchronization over Bluetooth Form’s information sent to server Server returns feedback via SMS to cellular phone.
Application to Utilities Digital Pen & Paper Technology Core Capabilities <ul><li>Fleet management </li></ul><ul><li>Inventory tracking </li></ul><ul><li>Quality assurance / compliance </li></ul><ul><li>Near real-time field form submission into backend systems (ex. SAP, Siebel Integration) </li></ul><ul><li>Automated form submission </li></ul><ul><li>Remote form submission </li></ul><ul><li>Remote invoicing </li></ul><ul><li>Digital access to field reports </li></ul><ul><li>Remote Quality Assurance </li></ul><ul><li>Maintenance updates / tracking </li></ul><ul><li>Quality Assurance / compliance </li></ul><ul><li>Time Reporting </li></ul>Supply Chain CRM / ERP Integration Imaging Field Force
Applications to Utilities Wireless Networks Remote Expertise Sensors like wireless cameras could enable a remote expert to directly see the context in which the user is carrying out a tasks, and to provide guidance virtually step-by-step through a complex set of the tasks.
Sentiment Monitoring Services Sentiment Monitoring combines a search agent going over all publicly available data sources as well as subscription content and a perception engine to present users a gauge of the market perception of any feature, product, brand or organization.
High Performance Visual Workspaces Interactive visualizations can be used to explore large amounts of enterprise information simultaneously and provide insights to help optimize organizational performance.
Other Utilities Applications Weather damage prediction
Human Performance: Enterprise Knowledge Retention As workforces rapidly change, organizations are often left with critical knowledge gaps. This problem can be seen in many forms, across several different functional areas such as Succession training, On-boarding, Facility/office expansion, Workforce agility, Granular learning aids and Best practices dissemination. Our research explores how emerging collaboration technologies can provide an integrated set of tools to support the intense colleague-to-colleague interaction required for an enterprise knowledge transfer program.
Wrap-up <ul><li>Performance, not cost, must be the IT end game </li></ul><ul><li>IT must re-think the production methods of the business services factory </li></ul><ul><li>Supplier networks are assets, not liabilities </li></ul><ul><li>IT Transformation is not a codeword </li></ul><ul><li>Without performance metrics, IT agendas will stall </li></ul><ul><li>IT investment is not an event, but a way of life </li></ul>