We are ushering in a new wave of innovation Age 6th Wave Age of IT & of Oil, Cars Telecom Age and Mass of Steel, Production 5th Wave Electricity and Heavy Engineering 4th Wave SmarterInnovation Age 3rd Wave of Steam and Railways Products The Industrial Revolution 2nd Wave Instrumented, inte 1st Wave rconnected, and intelligent Building blocks for a smarter planet Sustainability 1770 1830 1875 1920 1970 2010 *Source: “Next Generation Green: Tomorrow‟s Innovation Green Business Leaders”, Business Week, Feb 4, 2008
Our planet is a complex, dynamic and highly interrelated $54 Trillionsystem-of-systems This chart shows „systems„ (not „industries„) Communication Transportation $ 3.96 Tn $ 6.95 Tn Education $ 1.36 Tn Water $ 0.13 Tn Leisure / Recreation / Electricity Clothing $ 2.94 Tn $ 7.80 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Healthcare $ 4.27 Tn Infrastructure Legend for system inputs $ 12.54 Tn Note: Same Industry 1. Size of bubbles represents Business Support systems‟ economic values IT Systems 2. Arrows represent the strength of Energy Resources systems‟ interaction Machinery Finance Food Govt. & Safety 1 Tn Materials Source: IBV analysis based on OECD $ 4.58 Tn $ 5.21 Tn Trade $ 4.89 Tn 6
A system-of-systems is defined by a set of characteristics Components are interrelated and interconnected through a Interrelated cause & effect relationship, albeit with some time lags Dynamic and ever-changing as a result of the evolution of Emergent systems and the interactions between them Comprises of individual systems that can work Open independently but are compatible and free to interact with each other A conceptual whole made up of different systems with Heterogeneous varied behaviour, characteristics and intentions7
System-of-Systems Definition: Understanding interrelationships is the necessarybasis for optimization System-of-Systems Definition: What are the most significant relationships amongst systems? Global transportation industry segments share, 2006 ILLUSTRATIVE Air Government Renewables Fossil Fuels Network Management Ship Road & Rail Trans Infra Power MRO Services Distributor Dealer Component manufacturers Rails Road Transportation Customer Suppliers OEM Air Infrastructure Industrial Ship Machinery Metals/ Materials Hi Tech Fuel Supply Fuel Station MRO Services Power Refineries Fossil Fuels Renewables Key factors restraining the systems: Core value chain participants Primary system interactions 1. Fuel wastage 2. Capacity constraints/wastage 3.Pollution & Efficiency Material Flow Information Flow Secondary system interaction 8
TRANSFORMING BUSINESS VIA SENSOR SOLUTIONS Matiq: Employs RFID tags to trace meat and poultry from Airbus: In a strategic move, RFID is being utilized to the farm to store shelves to ensure safety and freshness automate the tracking of aircraft segments while improving and provide more transparency to consumers. supply chain visibility and reducing costs. Honda Italia: Implemented RFID component tracking Container Centralen: Counterfeit prevention and supply solution to improve production efficiency and quality. chain visibility in returnable transport item handling in the European Green Sector Metro: Using RFID technology throughout its entire supply DHL: Developed and implemented a real-time monitoring chain to help them get the merchandise the customers want system using RFID and sensing technology to monitor on the shelves when they want them. temperature sensitive shipments while in transit. Stockholm, Sweden: An intelligent toll system in the city Volkswagen: Implemented RFID container tracking system center resulted in 20% less traffic, 40% lower emissions and to drive increased efficiency, enhanced visibility and a rapid 40,000 additional users of the public transportation system. ROI.