Cbs essay comp smarter planet


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My presentation to students @ Copenhagen Business School highlighting some of smarter planet perspectives and challenges in selected areas


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Cbs essay comp smarter planet

  1. 1. Smarter Business Essay CompetitionIBM Smarter BusinessAnders QuitzauInnovation Executive1 © 2012 IBM Corporation
  2. 2. Smarter Business Essay Competition The world is becoming smaller and flatter. © 2012 IBM Corporation
  3. 3. Smarter Business Essay CompetitionThe 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. © 2012 IBM Corporation
  4. 4. IBM Denmark Smarter Planet U.S. CPG companies and retailers lose $40 billion annually due to inefficient supply chains.14 4
  5. 5. IBM Denmark Smarter Planet 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
  6. 6. IBM Denmark Smarter Planet 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
  7. 7. Smarter Business Essay CompetitionA mandate for change is a mandate for smart. © 2012 IBM Corporation
  8. 8. Smarter Business Essay Competition The world is about to get a whole lot smarter. © 2012 IBM Corporation
  9. 9. Smarter Business Essay Competition 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— economically, socially and technically.9 © 2012 IBM Corporation
  10. 10. Smarter Business Essay CompetitionNow we have the opportunity to measure and track everydetails 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 newwill be embedded into our billion camera phones in existence. automobiles nowworld and across entire contain event dataecosystems. recorders. Instrumented Interconnected Intelligent 10 © 2012 IBM Corporation
  11. 11. Smarter Business Essay CompetitionPeople, systems and “things” can communicate with eachother in completely new ways...2 billion 4 billion 1 trillionThere will be an estimated 2 There are an estimated Soon, there will be 1 trillionbillion people on the internet by 4 billion mobile phone connected devices in2011. subscribers worldwide. the world, constituting an “internet of things.” Instrumented Interconnected Intelligent 11 © 2012 IBM Corporation
  12. 12. Smarter Business Essay CompetitionNow we can respond much faster to, and make more accuratepredictions about, changes in the environment and achievebetter results on future events.15 petabytes 1 petaflop 1 square kilometerEvery day, 15 petabytes Scientists are working to New analytics enable high-resolution weatherof new information are being prevent influenza pandemics by forecasts for areas as fine asgenerated. 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. Instrumented Interconnected Intelligent 12 © 2012 IBM Corporation
  13. 13. Smarter Business Essay CompetitionThe 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 situations13 © 2012 IBM Corporation
  14. 14. Smarter Business Essay Competition + + = An opportunity to think and act in new ways— economically, socially and technically. © 2012 IBM Corporation
  15. 15. Smarter Business Essay Competition A smarter planet holds enormous promise for progress. © 2012 IBM Corporation
  16. 16. Smarter Business Essay Competition Every natural system and man-made system is becoming interconnected, instrumented and intelligent. © 2012 IBM Corporation
  17. 17. Smarter Business Essay CompetitionSmarter planet: Thinking and acting in new ways to make oursystems more efficient, productive and responsive. § NEW INTELLIGENCE § DYNAMIC INFRASTRUCTURE § SMART WORK § GREEN AND BEYOND © 2012 IBM Corporation
  18. 18. Smarter Business Essay CompetitionLet’s Build a Smarter PlanetRetail18 © 2012 IBM Corporation
  19. 19. n a catalyst for change,Essay Competition Smarter Business forcing retailers tocting 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 19 © 2012 IBM Corporation
  20. 20. Smarter Business Essay Competitionmers 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 20 © 2012 IBM Corporation
  21. 21. Smarter Business Essay CompetitionLet’s Build a Smarter PlanetBanking21 © 2012 IBM Corporation
  22. 22. Smarter Business Essay CompetitionChanges 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 reserves22 3 © 2012 IBM Corporation IBM Internal Use Only © 2009 IBM Corporation
  23. 23. Smarter Business Essay CompetitionThe global financial system is highly complex Building a smarter planet: Financial Serviceswith manyfinancial system is highly complex with many stakeholders The global stakeholders Building a smarter planet: Financial Services 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 Building a smarter planet: Financial Services 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 Corporation23 © 2012 IBM Corporation 4 IBM Internal Use Only © 2009 IBM Corporation
  24. 24. Smarter Business Essay CompetitionThese conditions require new approaches to Building a smarter planet: Financial Services Building a smarter planet: Financial Services Building a smarter planet: Financial Servicescreate value on three key imperatives Winners will focus on three key imperatives Winners will focus on three key imperatives Winners will focus Winners will focus on three key imperatives 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 returns24 © 2012 IBM Corporation
  25. 25. Smarter Business Essay CompetitionLet’s Build a Smarter PlanetSmarter Commerce25 © 2012 IBM Corporation
  26. 26. Smarter Business Essay CompetitionSupply-Chain Executives face three significantchallenges 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 value26 © 2012 IBM Corporation
  27. 27. Smarter Business Essay CompetitionVisionaries and planners are building strategic, smarter supplychain 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.27 © 2012 IBM Corporation
  28. 28. Smarter Business Essay CompetitionLet’s Build a Smarter PlanetSustainability28 © 2012 IBM Corporation
  29. 29. Smarter Business Essay CompetitionWhy sustainability? Competitive differentiation and positive brand image Cost efficiencies in energy, water and waste management Potential for gaining share of new and growing market segments29 © 2012 IBM Corporation
  30. 30. 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 theInnovators use sustainability strategy to become industry way with well-developed strategies – articulate a sustainability vision and accompanying strategy that are core to the overallleaders 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.30 © 2012 IBM Corporation
  31. 31. Smarter Business Essay CompetitionLet’s Build a Smarter PlanetSocial Business31 © 2012 IBM Corporation
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  33. 33. Smarter Business Essay CompetitionSocial Businesses have distinct characteristics that distinguishthem 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 opportunities33 © 2012 IBM Corporation
  34. 34. Smarter Business Essay CompetitionCIOs are also reporting a shift in investment consistent withthese 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 priority34 © 2012 IBM Corporation
  35. 35. Smarter Business Essay Competition Business functions will need to be redefined in a Social Business... but how? Human Marketing Resources Customer Product Service Development © 2012 IBM Corporation
  36. 36. Smarter Business Essay CompetitionThe way the world works is changing—and leaders must leadthrough the unknown.8 in 10CEOs anticipate turbulentchange and bold moves.3xIncrease in the gap betweenleaders’ need for change andtheir ability to manage it.Source: 2008 IBM CEO Study © 2012 IBM Corporation
  37. 37. Smarter Business Essay CompetitionSix imperatives for a Smarter Business37 © 2012 IBM Corporation
  38. 38. Smarter Business Essay CompetitionWe’ve only just begun to uncover what is possible ona 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 © 2012 IBM Corporation
  39. 39. Smarter Business Essay CompetitionLinks for inspiration§ IBM Smarter Planet§ IBM Institute for Business Value§ IBM Social Business39 © 2012 IBM Corporation
  40. 40. Smarter Business Essay Competition Thank you © 2012 IBM Corporation