This document discusses driving innovation in utilities from IBM's perspective. It provides an overview of IBM Research, describing its global presence and accomplishments. It defines innovation as the process of transforming ideas into business value. The document contrasts incremental vs radical innovation and describes how the smarter grid represents a radical innovation. It advocates for open innovation and describes IBM's approach to managing radical innovation through an Innovation Board, Innovation Portfolio Management, and Stage-Gate Project Management. The document concludes by highlighting some of IBM's energy grand challenges and encouraging continued work to build smarter energy and utilities organizations.

1. Benoit Marcoux - Senior Managing Consultant
June 7, 2011
Driving Innovation in Utilities
– The IBM Experience
© 20110 IBM Corporation

2. Driving Innovation in Energy and Utilities
IBM Research: Global
 3,000 engineers, scientists and technical professionals
 5 Nobel Laureates, 13 National Medals, 6 Turing Awards
Lithuania
Dublin
China
Zurich
Shenyang
Almaden Watson Haifa
Shanghai Tokyo
Austin India Taiwan
Saudi Arabia
Hyderabad
Brazil
IBM Research Labs
Melbourne
IBM Research
New Presence Since 2007
© 2011 IBM Corporation

3. Driving Innovation in Energy and Utilities
Innovation defined
Recognition
Creative Idea + of Value + Implementation
A process that transforms ideas into business value
© 2011 IBM Corporation

4. Driving Innovation in Energy and Utilities
Incremental Innovation  Radical Innovation
Incremental Innovation Radical Innovation
© 2011 IBM Corporation

5. Driving Innovation in Energy and Utilities
The Smarter Grid Is Radical
© 2011 IBM Corporation

6. Driving Innovation in Energy and Utilities
The Smarter Grid
Is Different
© 2011 IBM Corporation

7. Driving Innovation in Energy and Utilities
Smarter Grid Innovation Is Different
© 2011 IBM Corporation

8. Driving Innovation in Energy and Utilities
Innovation Is Not Chaos
© 2011 IBM Corporation

9. Driving Innovation in Energy and Utilities
Open Innovation - The Eras of IBM Research
Radical
Joint Projects Collaboration
IBM Divisions, The World is Now Our Lab
Isolated Research Clients, Universities
’50s — ’90s
Hardware ’90s — ’00s
+ Software & Services ’00s …
+ Smarter Planet
© 2011 IBM Corporation

10. Driving Innovation in Energy and Utilities
There Is Nothing Radical about
Managing Radical Innovation In Utilities
© 2011 IBM Corporation

11. Driving Innovation in Energy and Utilities
Managing Innovation
Innovation
Board
Innovation
Portfolio
Management
Stage-Gate
Project
Management
© 2011 IBM Corporation

12. Driving Innovation in Energy and Utilities
Innovation Board
Innovation
Board
Senior management oversight
Innovation
Portfolio
Management
Strategic alignment
Stage-Gate
Focus on value
Project
Management
© 2011 IBM Corporation

13. Driving Innovation in Energy and Utilities
Innovation Portfolio Management
Innovation
Board
Innovation
Portfolio Opening up collaboration
Management
Road mapping
Stage-Gate
Project
Management
Collecting ideas
Launching projects
© 2011 IBM Corporation

14. Driving Innovation in Energy and Utilities
Stage-Gate Project Management
Innovation
Board
Innovation
Portfolio
Management
Stage-Gate
Institutionalize learning
Project
Management Deliberate decision making
© 2011 IBM Corporation

15. Driving Innovation in Energy and Utilities
Energy Grand Challenges @ IBM Research
Li-Air Batteries Supercomputing
with 500 miles range Zero-Emissions DC & Grid Simulation Smart Grids
135x Performance/Watt by 2019
Earth-Abundant Concentrator PV Smart Buildings Smarter Energy Platform
Soln-Processed PV
Energy Smarter Energy Platform
Smarter Energy Applications & Services
Innovation Solutions/Applications Layer  Intermittent Renewable Power Forecasting
 Condition Based Management
Hub Intelligent Engines
(Analytics, Modeling & Optimization)
 Maintenance plan optimization
 Voltage Stability Monitoring
Models &
Process Data
Orchestration Orchestration
Analytics  Generation, Demand and Revenue Forecasting
Orchestration
 Optimum Rebate Design for Demand Response
Optimization Business
Analytic
Engines Engines
Intelligence  Outage Planning
Engines
 Theft Detection
 Virtual Power Plant Services
System of Systems Foundation
 Demand Response Services
Interoperability Framework
and System Management Services  Building Energy Services
 Microgrid Services
PMUs Meters SCADA Grid Ntwrk Energy Weather Wind  Electric Vehicle Services
IEDs GIS Markets sensors Solar
© 2011 IBM Corporation

16. Driving Innovation in Energy and Utilities
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.
 There’s no better time to start building smarter
energy and utilities organizations—focused on
providing energy responsibly to empowered
consumers. And there’s no better time to invest
in creating the kind of society we all desire.
Let’s work together to drive real
progress in our world.
© 2011 IBM Corporation

17. Driving Innovation in Energy and Utilities
Benoit Marcoux
Benoit Marcoux is a energy and utility consultant with IBM Global Business Services, focusing
on strategy and helping clients in transforming their operations and migrating to a smarter
grid. A professional engineer with master degrees in applied sciences and business
administration, he is a member of IBM’s Energy and Utilities global community, where he
actively contributes to knowledge sharing, particularly through writing in various industry
journals and newspapers.
Contact:
bmarcoux@ca.ibm.com
+1 514-953-7469
© 2011 IBM Corporation

18. Driving Innovation in Energy and Utilities
Trademarks and notes
IBM Corporation 2011
 IBM, the IBM logo and ibm.com are registered trademarks, and other company,
product or service names may be trademarks or service marks of International
Business Machines Corporation in the United States, other countries, or both. A
current list of IBM trademarks is available on the Web at “Copyright and
trademark information” at www.ibm.com/legal/copytrade.shtml
 Other company, product and service names may be trademarks or service marks
of others.
 References in this publication to IBM products or services do not imply that IBM
intends to make them available in all countries in which IBM operates.
© 2011 IBM Corporation