ISDC 2013_Referat_Bernie Meyerson_IBM

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ISDC 2013_Referat_Bernie Meyerson_IBM

  1. 1. IS Directors Conference – August 2013 Sustaining Innovation in a Global Enterprise Dr. Bernard S. Meyerson Vice President Innovation IBM Corporation
  2. 2. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 Driving Sustained InnovationDriving Sustained Innovation In a Globally IntegratedIn a Globally Integrated EnterpriseEnterprise Dr. Bernard S. Meyerson IBM Fellow, Vice President of Innovation CHQ
  3. 3. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 2007 Why Innovate?Why Innovate? “What is the most important capability required for growth?”“What is the most important capability required for growth?” 0 10 20 30 40 50 60 Ability to manage increasing regulation costs Ability to allocate capital Ability to manage a global organization Ability to allocate the best talent Ability to innovate Source: McKinsey survey of 9,345 global executives 07 McKinsey Global Survey 2010: 84% of executives say Innovation is extremely or very important to their companies’ growth strategy McKinsey Global Survey 2010: 84% of executives say Innovation is extremely or very important to their companies’ growth strategy
  4. 4. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 Key Elements ofKey Elements of Sustainable InnovationSustainable Innovation A short list of EssentialsA short list of Essentials
  5. 5. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Essential #1: PeopleEssential #1: People (T(T--Shaped Innovators)Shaped Innovators) Requirement: Deep, ExpertRequirement: Deep, Expert--Thinking, with Broad ComplexThinking, with Broad Complex--Communications SkillsCommunications Skills Many disciplinesMany disciplines (understanding & communications)(understanding & communications) Many systemsMany systems (understanding & communications)(understanding & communications) DeepinonedisciplineDeepinonediscipline (analyticthinking&problemsolving)(analyticthinking&problemsolving) DeepinonesystemDeepinonesystem (analyticthinking&problemsolving)(analyticthinking&problemsolving) Many teamMany team--oriented projects completedoriented projects completed (resume: outcomes, accomplishments & awards)(resume: outcomes, accomplishments & awards) Broad across many Deep in at least one
  6. 6. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Essential #2:Essential #2: InfrastructureInfrastructure
  7. 7. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 The World is Now Our LaboratoryThe World is Now Our Laboratory China WatsonAlmaden Austin Tokyo Haifa Zurich India IBM Research Lab Brazil Global, Smarter Planet Collaborations Pangoo Nairobi Melbourne
  8. 8. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Essential #3:Essential #3: DynamicsDynamics
  9. 9. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 1970s1970s 1980s1980s 1990s1990s 2000s2000s Inter-disciplinary collaboration in the market and across the globe Centrally FundedCentrally Funded Joint ProgramsJoint Programs Research in theResearch in the MarketplaceMarketplace CollaborativeCollaborative InnovationInnovation CorporateCorporate Collaborative Work on Create business 2010s2010s Collaborative fundedfunded TechnologyTechnology transfertransfer Team Shared agenda Effectiveness client problems advantage for clients Industry-focused research partnerships Emerging markets GlobalGlobal CollaborationCollaboration Innovators Too Must Evolve;Innovators Too Must Evolve; From Inward Looking to Global, Client Focused ExpertsFrom Inward Looking to Global, Client Focused Experts
  10. 10. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Result;Result; Innovations That MatterInnovations That Matter
  11. 11. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Innovations That Changed History Nano MRI (2009)Nano MRI (2009)Nano MRI (2009) First Petaflop Supercomputer (2008) FirstFirst PetaflopPetaflop Supercomputer (2008)Supercomputer (2008) Cell (2005)Cell (2005)Cell (2005) Blue Gene/L (2004)Blue Gene/L (2004)Blue Gene/L (2004) Carbon Nanotubes (2003)Carbon Nanotubes (2003)Carbon Nanotubes (2003) Copper Interconnect Wiring (1997)Copper Interconnect Wiring (1997)Copper Interconnect Wiring (1997) Deep Blue (1997)Deep Blue (1997)Deep Blue (1997) SiGe (1994)SiGe (1994)SiGe (1994) High Temperature Superconductivity (1987)High Temperature Superconductivity (1987)High Temperature Superconductivity (1987) Scanning Tunneling Microscope (1986)Scanning Tunneling Microscope (1986)Scanning Tunneling Microscope (1986)Relational Database (1970)Relational Database (1970)Relational Database (1970) Fractals (1967)Fractals (1967)Fractals (1967) One Transistor Memory Cell (1966)One Transistor Memory Cell (1966)One Transistor Memory Cell (1966) RAMAC (1956)RAMAC (1956)RAMAC (1956) Fortran (1957)Fortran (1957)Fortran (1957) Speech Recognition (1971))Speech Recognition (1971))Speech Recognition (1971)) RISC (1980)RISC (1980)RISC (1980) Watson (2011)Watson (2011)Watson (2011)
  12. 12. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Continuous Innovation;Continuous Innovation; Skills Beyond TheSkills Beyond The ““AHA!AHA!”” MomentMoment Disk Drives –If IBM had not continued to innovate in this field, today’s laptops would weigh approximately 250,000 Tons NeverNever Undervalue Ongoing InnovationUndervalue Ongoing Innovation x2
  13. 13. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 The Transformative Power of Technology Lives On; Every Generation of Technology Enables Remarkable Outcomes Apollo 11: 2048 words RAM (16-bit word)-> ~4KB 36,864 words ROM Avg. Smart Phone: 256 MB – 512 MB Cache 2 GB – 64 GB RAM
  14. 14. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 After 50 Years,After 50 Years, How Long BeforeHow Long Before Technology As We Know ItTechnology As We Know It Has Run Its Course?Has Run Its Course?
  15. 15. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 We Are At A FundamentalWe Are At A Fundamental Discontinuity in InformationDiscontinuity in Information Technology on Many FrontsTechnology on Many Fronts
  16. 16. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Coming to Your Organization Soon;Coming to Your Organization Soon; Information Technology in theInformation Technology in the ““PostPost--Silicon EraSilicon Era”” Silicon transistors will dominate Information Technology for decades to come, but contribute little to its progress. We will “worry” about the seemingly ridiculous, such as “slow” light and the Australian Strategy for Datacenters Integrated solutions made up of specialized hardware, software, systems, and network functionality, will compensate up for lost technology benefits. Despite this, Information Technology will accelerate in terms of its contributions to business differentiation
  17. 17. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 Truly Odd Issues;Truly Odd Issues; Addressing the ImpactAddressing the Impact ofof ““SlowSlow”” LightLight
  18. 18. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 For Decades We Have Scaled Chips Down in Size and Systems and Datacenters Up in Scale Scale out Scale out Scale up Scale down Question: Even at 300,000,000 meters/sec, Is Light Fast Enough To Keep Pace With Technology? Hint; Datacenters can be hundreds of meters in size Answer; Not even close.
  19. 19. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 The New, Near Term Architecture; Scale In Scale In Memory Switching Storage Processor Scale In By Integration
  20. 20. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Addressing the “Problem” of Scale-Out; “Slow” Light IBM-3M Collaboration in 3D Use 3D chip stacking to turn tens of meters into tens of microns, e.g. make signal paths shorter by a factor of about a million. No problem, you must only; Thin chips to <50 microns. Stack 50 or so together. Connect them up somehow. Don’t set fire to them.
  21. 21. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 The Next Several Decades; Creating New Paradigms For Information Technology Requires Ever More Innovation Scale In By 3D Chip Bonding Memory Switching Storage Processor
  22. 22. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 How Critical is ContinuedHow Critical is Continued Innovation in InformationInnovation in Information Technology?Technology? Imagine the EmergingImagine the Emerging World of Big DataWorld of Big Data WithoutWithout The Ability to Digest It?The Ability to Digest It? Consider The FollowingConsider The Following Two Grand ChallengesTwo Grand Challenges From IBMFrom IBM’’s 2008s 2008 Innovation JamInnovation Jam
  23. 23. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Today there are 1 Billion cars on the road. That number will double in 2020 Congested roadways cost $78 Billion annually in the form of 4.2 Billion lost working hours and 2.9 billion gallons of wasted gas. Global Challenge: Transportation
  24. 24. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Global Challenge: Healthcare $475-$750 Billion Range of estimated U.S. healthcare spending each year on administrative and clinical waste, fraud and abuse and other waste.1 1.5 Million Errors in the way medications are prescribed, delivered and taken harm 1.5 million people in the U.S. every year.2
  25. 25. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Innovation using Big Data:Innovation using Big Data: Transforming TransportationTransforming Transportation
  26. 26. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Integrating realIntegrating real--world data with analytics allows one toworld data with analytics allows one to bebe ProactiveProactive vsvs ReactiveReactive Operational/ Transactional Insights in Singapore Road Usage Optimization, GHG emission models Proactive Ignorance is NOT bliss Data allows insight, and insight enables foresight Foresight allows one to change the future for the better
  27. 27. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Can We Really Know the Future?Can We Really Know the Future? Blue is the prediction,Blue is the prediction, Black is measuredBlack is measured 10 minute-ahead volume forecast (blue) at three locations vs. actual data (black) 10 minute-ahead speed forecast (blue) at the same three locations vs. actual data (black) The Power of Big Data •In the long past-----You’re stuck in traffic, here’s why….. •In the recent past-----You will be stuck in traffic, here’s why……. •In the present-----You would have been stuck, but I took care of it
  28. 28. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Transforming Banking: Solutions for Smarter Banking One of the largest banks in the world Challenge; Managing the complexity of branch networks for rapid and profitable growth Analytics Approach to Optimization Analyze prior business outcomes against all available local demographics Create a map of optimal areas for branch clustering Deploy new branches per formula optimized for newly deposited funds in the first year of business. IBM’s China Research Labs delivered a plan that produced an additional $1.04B in deposits in one city alone Market Potential AnalysisMarket Potential Analysis CClusteringlustering Site Location OptimizationSite Location Optimization
  29. 29. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 A Branch Location Challenge From A Massive Bank in China; Maximizing Profit via Advanced Analytic and Optimization Methods Clusters indicate the hot areas with highest market potential for branch investment CClusteringlustering Branch Performance EvaluationBranch Performance Evaluation Introductory Stage Growth Stage Maturity Stage Decline Stage Total Market Sales Time 20% 20% 20% 20% 20% Introductory Stage Growth Stage Maturity Stage Decline Stage Total Market Sales Time 20% 20% 20% 20% 20% Evaluate the performance of existing branches Market Potential AnalysisMarket Potential Analysis Based on economic geography data, market potential forecasting calculates and evaluates market potential High Market Potential Low Market Potential Recommend branch locations with proper configurations such as branch format, service capacity, product, etc Site Location OptimizationSite Location Optimization China Research Lab’s Collaborative Innovation helped a bank increase its new branch fund intakes by $1.04B deposit in one city alone
  30. 30. IS Director’s Conference-Interlaken 2013 The Challenge NYS Tax Authority wanted a way to improve the efficiency and effectiveness of its tax collections process , which relied on rigid, manual rules to implement a complex process involving various legal/business constraints. The goal was to disassemble this rigid procedure leaving fragments of it intact wherever necessary, and automatically configure the rest based on analytics and optimization. The Solution IBM Research used a Markov Decision Process (MDP) framework to model the tax collection process, with “states” representing information on a taxpayer’s stage in the collection process, movement from one state to the next dependent on collection “actions” (e.g., phone call, warrant, levy), and “reward” represented by the tax collected for the taxpayer in question. A constrained Reinforcement Learning procedure was used to optimize (based on historical data) the expected long term cumulative rewards, using data analytics and optimization iteratively. The optimized MDP provided a policy mapping tax payer states to collection actions so as to maximize the long term cumulative rewards Client: NY State Tax Authority Business Benefits 2010 realized an 8.22% revenue increase over 2009 , totaling ~ $83M 35,000 fewer taxpayers had serious actions taken against them (A Significant OPEX Reduction) Collections Optimization*
  31. 31. © 2013 IBM CorporationDr. Bernard Meyerson IS Director’s Conference-Interlaken 2013 Ann Winbald, Co-founder Hummer Winbald Venture Capital In its raw form, oil has little value.In its raw form, oil has little value. Once processed & refined, it helpsOnce processed & refined, it helps power the world.power the world. 30 ““Data is the New OilData is the New Oil””
  32. 32. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 Cybersecurity:Cybersecurity: Employing Intelligence toEmploying Intelligence to Counter AggressionCounter Aggression
  33. 33. 32 © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 http://www.globalpost.com/dispatch/news/regions/americas/united-states/121012/panetta-us-cyber-security-threat-pre-911-moment
  34. 34. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 @Computerworld: Bank security weaknesses led to cyber looting of $45M from ATMs #cybercrime (by @jaivijayan) http://t.co/mtXGG58eZU "It's surprising that even some level of analytics wasn't used," to spot and prevent fraudulent transactions, he said. "When they were hitting 3,000 ATMs around the world at the same time, you'd think there'd be some analytics" to detect it, he(Jim Stickley, chief technology officer at TraceSecurity Inc.) said.
  35. 35. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 Evolution of Security Intelligence Beyond the Enterprise IBM Confidential - For Discussion Purposes Only Enterprise Customers Cybersecurity Platform (for Watson and US North) Insider Threat Platform Cloud Security Analytics Mobile Security Analytics System G Social Media Monitoring Systems of Record Systems of Engagement Anomaly Detection at Multiple Scales (ADAMS)
  36. 36. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 What’s Next?
  37. 37. © 2013 International Business Machines Corporation 36IS Director’s Conference-Interlaken 2013 Cognitive Computing Complex reasoning and interaction extends human cognition Legal Suggest defense/ prosecution arguments Telemarketing Next generation – persuasive – call center Healthcare Surface best protocols to practitioners Finance Enhance decision support
  38. 38. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 How Would You Leverage AHow Would You Leverage A TirelessTireless ““GeniusGenius”” At Your SideAt Your Side in Your Business?in Your Business?
  39. 39. © 2012 IBM CorporationIS Director’s Conference-Interlaken 2013 The New Realities of InnovationThe New Realities of Innovation Despite all present challenges, progress in Information Technology will continue to accelerate Data Analytics will extract unprecedented insights from BIG DATA, and become as common a “tool” as the pocket calculator. Cognitive systems will emerge as profound disruptors of the status quo.
  40. 40. © 2012 IBM Corporation IS Director’s Conference-Interlaken 2013 Thank youThank you

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