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Steve
          Mills
IBM Senior VP & Group Executive
         IBM Software
Innovation for a
 Smarter Planet
The World is Changing
The Reality of Living in a Globally Integrated World
     Increase in global water                                                              Idle computer
     usage since the 1900s,                                                                capacity
     twice the rate of human
     population growth                  The losses of electrical energy due
                                        to inefficiency - around the world


                                                                                               Spent on
     Worth of produce is wasted in India because                                            IT maintenance
     of outdated post-harvest infrastructure                 Lost annually in the US due
                                                             to healthcare fraud


                                Annual consumer product and retail
                                sales lost in United States due to
          of total port         supply chain inefficiencies              Annual
          volume in North                                              impact of
          America is empty                                           congested
          containers                                                  roadways
Building a Smarter Planet
         Thinking and Acting in New Ways to Make Our Systems
                More Efficient, Productive and Responsive
     “Data is                                            “Our resources
exploding and          New                Green and        are limited”
  it’s in silos”   Intelligence            Beyond             I Need
I Need Insight                                              Efficiency



“New business                                           “My infrastructure
 and process                                Dynamic      is inflexible and
  demands”         Smart Work                                  costly”
                                         Infrastructure
   I Need to                                                 I Need to
 Work Smart                                              Respond Quickly
Smart Planet …….
      Our world is becoming
      INSTRUMENTED            By 2010, 30 billion RFID tags will be embedded
                              into our world and across entire ecosystems




      Our world is becoming
                              An estimated 2 billion people will be on the Web
      INTERCONNECTED          by 2011 …. and a trillion connected objects –
                              cars, appliances, camera, roadways, pipelines –
                              comprising the “Internet of Things”



      All things becoming
      INTELLIGENT             Every day, 15 petabytes of new information are
                              being generated. This is 8x more than the
                              information in all U.S. libraries
What Does It Mean to Become Smarter?
                Sensors and Metering
                                           Data collection
 New Data


               Event Processing + Real     Data Integration
                Time Data Integration


                                           Comparison of historical data,
New Insights    Real Time + Historical
                                           with newly collected data
                        Data



               Data Modeling & Analytics   Data modeling and analytics to
                                           create insights from data to feed
                                           decision support and actions
   Process          Visualization &               Leading businesses today are benefiting from
 Innovation           Decisions                    new sensor data when combined with IBM’s
                                                business process management, event processing
                 New and Optimized
                                                     and business optimization capabilities
                 Business Processes
Innovative Solutions for a Smarter Planet




     Smarter      Smarter        Smarter         Smarter        Smarter       Smarter
      Roads       Oil & Gas       Food          Healthcare      Utilities      Retail




Smarter     Smarter       Smarter          Smarter       Smarter        Smarter     Smarter
 Telco    Supply Chains Public Safety      Money      Transportation     Cities     Products
Creating Smarter Manufacturing
 Significant reduction in parts delivery errors
 Reduced inventory levels through better visibility

                                                          Highly
                                                      instrumented
                                                      supply chain
                                                      using AutoID
                                                        and RFID
SOA-based Control Center
Smarter Manufacturing                   WebSphere Premise Server
                                        WebSphere Business Monitor
16 Manufacturing Sites                  WebSphere Process Server
                                        WBI Adapter for SAP
                                        IBM Sensor and Actuator Solutions
                          RFID          Tivoli Monitoring
                                        Rational ClearCase, ClearQuest

                                                       Final
                                            RFID     Assembly
Large parts
transportation operation
                                     RFID
Final assembly line operation
Tracks parts and goods from the
moment the RFID is detected to the
moment the ERP system is updated                Toulouse, France
Creating Smarter Energy Grid
             25-50% reduction in outages
             Up to 90% capital savings

                                              Real-time
                                           instrumentation
                                            and intelligent
                                               analytics
Smarter Energy Grid                              SOA-based Control Center
                                                   WebSphere Application Server
                                                   WebSphere Message Broker
                                                   WebSphere MQ
     Generating                                    IBM ILOG Software
       Plant                                       Rational Software Architect
                        Problem Detection


                                              Response
                    Optical Current Sensors                          Residence

Traditional IT Support
Intelligent Management of Physical Assets
Smart Devices
Products are Getting Smarter to Meet More Demanding
Requirements
  Demand for more customizable products
  unique to the needs of individual people
  or businesses

  Leverage of information and
  environmental conditions to achieve
  desired outcomes

  Improved use of scarce resources
  such as time, energy and money
A Smarter Planet Requires Smarter Products ….
   …. Which are Intelligent, Interconnected and Instrumented
                   Vehicle Services              Traffic Services
                     Vehicle monitoring
                                                   Police/emergency     Personal Services
                                                   Traffic congestion     News
                     Roadside assistance
                                                   Weather                Entertainment
                     Advanced diagnostics
                                                   Concierge              Banking
                     Software fault analytics
                                                   Insurance              Government
                     Service and warranty data     “pay as you drive”     Utilities


                                                                                            Dealer
      Vehicle to
       Vehicle
                                                                                             Electric
                                                                                            Vehicle/
      Toll                                            Vehicle to                             Hybrid
Collection                     GPS                    Roadside                              Charging
Complex Systems for Automotive
                                             What’s Smart
                                               First prepackaged airbag assembly within a
                                               steering wheel
                                               Teams in 35 countries collaborating on
                                               parallel releases using shared requirements
                                             Smarter Business Outcomes
                                               2008 introduction of prepackaged
                                               airbag/steering wheel in the Smart Fortwo
                                               vehicle made by Daimler
                                             How Rational Enables Smarter Products
                                               Requirements sharing across globally
  “Rational DOORS has helped Delphi            distributed teams and projects
improve development team communication,
resulting in meeting customer requirements     Component reuse enabled by automated
        faster and more accurately.”           requirements management
Mobile Access to Medical Images
 Merge Healthcare                               What’s Smart
                                                  Provides medical professionals access to
                                                  complex medical images on mobile devices
                                                Smarter Business Outcomes
                                                  Reduced hospital operations costs
                                                  Reliable, secure, scalable delivery of medical
                                                  images and reports
                                                How Rational Enables Smarter Products
                                                  Collaboration across globally distributed
“We rely on Rational Synergy and Change to        development teams
 manage the complexity of the software and to
  ensure that our global development teams        Change management across the end-to-end
   operate as one, for the best result to our     software lifecycle
 customers. This software from IBM is part of
          our livelihood; it's our DNA.”
Smarter Planet Requires a Significant Investment in Software
  Software is increasingly viewed as a strategic
  business asset
  Imagine the amount of software necessary to:
    •   Deliver a more energy efficient world
    •   Take advantage of information base explosion
    •   Communicate with a trillion devices
    •   Drive on-going product differentiation
    •   Serve new global markets

  Leaders everywhere are deploying increasingly intelligent
  software, systems and products
  Accelerating innovation and enabling effective change is highly
  dependent on their ability to manage effective software delivery
Software as a Strategic Business Asset
                                                                 $ 4.5T        Cumulative Value
       Annual Expenditures                                                 of Software Investments
                and
                                                                              In-house developed
   Cumulative Value of Investments
                                              $ 3.3T                          Work for Hire
                                                                 $ 2.3T
                                                                              Purchased

                           $ 2.6T


                                                                 $ 0.6T
                                                                               Annual Software
         $ 1.5T                                                                 Expenditures
                                                       $ 690B
                                     $ 550B
                  $ 480B                                $ 290B                 In-house developed
$ 380B                                                            $ 1.6T
                                                        $ 80B                  Work for Hire
                                                        $ 320B                 Purchased

     1995              2000               2005                  2010
System and Software Lifecycle Processes
Optimizing Value From Investments Across the Software “Supply Chain”
Business Capabilities          Development Capabilities

   Enterprise Architecture /                         Analysis & Design
   Architecture Frameworks


                                  Requirements
       Product Portfolio          Definition and                         Construction
         Management               Management
                                                     Configuration and
                                                    Change Management
       Measurement and
          Reporting                 Release
                                  Management                                 Operations
                                                                                        Tivoli
         Production /                                                      Asset and Service
         Operations                                         Quality
                                                          Management         Management
IBM Rational Software Conference 2009 Day 2 Keynote: Steve Mills
IBM Rational Software Conference 2009 Day 2 Keynote: Steve Mills

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IBM Rational Software Conference 2009 Day 2 Keynote: Steve Mills

  • 1. Steve Mills IBM Senior VP & Group Executive IBM Software
  • 2. Innovation for a Smarter Planet
  • 3. The World is Changing
  • 4. The Reality of Living in a Globally Integrated World Increase in global water Idle computer usage since the 1900s, capacity twice the rate of human population growth The losses of electrical energy due to inefficiency - around the world Spent on Worth of produce is wasted in India because IT maintenance of outdated post-harvest infrastructure Lost annually in the US due to healthcare fraud Annual consumer product and retail sales lost in United States due to of total port supply chain inefficiencies Annual volume in North impact of America is empty congested containers roadways
  • 5. Building a Smarter Planet Thinking and Acting in New Ways to Make Our Systems More Efficient, Productive and Responsive “Data is “Our resources exploding and New Green and are limited” it’s in silos” Intelligence Beyond I Need I Need Insight Efficiency “New business “My infrastructure and process Dynamic is inflexible and demands” Smart Work costly” Infrastructure I Need to I Need to Work Smart Respond Quickly
  • 6. Smart Planet ……. Our world is becoming INSTRUMENTED By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems Our world is becoming An estimated 2 billion people will be on the Web INTERCONNECTED by 2011 …. and a trillion connected objects – cars, appliances, camera, roadways, pipelines – comprising the “Internet of Things” All things becoming INTELLIGENT Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries
  • 7. What Does It Mean to Become Smarter? Sensors and Metering Data collection New Data Event Processing + Real Data Integration Time Data Integration Comparison of historical data, New Insights Real Time + Historical with newly collected data Data Data Modeling & Analytics Data modeling and analytics to create insights from data to feed decision support and actions Process Visualization & Leading businesses today are benefiting from Innovation Decisions new sensor data when combined with IBM’s business process management, event processing New and Optimized and business optimization capabilities Business Processes
  • 8. Innovative Solutions for a Smarter Planet Smarter Smarter Smarter Smarter Smarter Smarter Roads Oil & Gas Food Healthcare Utilities Retail Smarter Smarter Smarter Smarter Smarter Smarter Smarter Telco Supply Chains Public Safety Money Transportation Cities Products
  • 9. Creating Smarter Manufacturing Significant reduction in parts delivery errors Reduced inventory levels through better visibility Highly instrumented supply chain using AutoID and RFID
  • 10. SOA-based Control Center Smarter Manufacturing WebSphere Premise Server WebSphere Business Monitor 16 Manufacturing Sites WebSphere Process Server WBI Adapter for SAP IBM Sensor and Actuator Solutions RFID Tivoli Monitoring Rational ClearCase, ClearQuest Final RFID Assembly Large parts transportation operation RFID Final assembly line operation Tracks parts and goods from the moment the RFID is detected to the moment the ERP system is updated Toulouse, France
  • 11. Creating Smarter Energy Grid 25-50% reduction in outages Up to 90% capital savings Real-time instrumentation and intelligent analytics
  • 12. Smarter Energy Grid SOA-based Control Center WebSphere Application Server WebSphere Message Broker WebSphere MQ Generating IBM ILOG Software Plant Rational Software Architect Problem Detection Response Optical Current Sensors Residence Traditional IT Support Intelligent Management of Physical Assets Smart Devices
  • 13. Products are Getting Smarter to Meet More Demanding Requirements Demand for more customizable products unique to the needs of individual people or businesses Leverage of information and environmental conditions to achieve desired outcomes Improved use of scarce resources such as time, energy and money
  • 14. A Smarter Planet Requires Smarter Products …. …. Which are Intelligent, Interconnected and Instrumented Vehicle Services Traffic Services Vehicle monitoring Police/emergency Personal Services Traffic congestion News Roadside assistance Weather Entertainment Advanced diagnostics Concierge Banking Software fault analytics Insurance Government Service and warranty data “pay as you drive” Utilities Dealer Vehicle to Vehicle Electric Vehicle/ Toll Vehicle to Hybrid Collection GPS Roadside Charging
  • 15. Complex Systems for Automotive What’s Smart First prepackaged airbag assembly within a steering wheel Teams in 35 countries collaborating on parallel releases using shared requirements Smarter Business Outcomes 2008 introduction of prepackaged airbag/steering wheel in the Smart Fortwo vehicle made by Daimler How Rational Enables Smarter Products Requirements sharing across globally “Rational DOORS has helped Delphi distributed teams and projects improve development team communication, resulting in meeting customer requirements Component reuse enabled by automated faster and more accurately.” requirements management
  • 16. Mobile Access to Medical Images Merge Healthcare What’s Smart Provides medical professionals access to complex medical images on mobile devices Smarter Business Outcomes Reduced hospital operations costs Reliable, secure, scalable delivery of medical images and reports How Rational Enables Smarter Products Collaboration across globally distributed “We rely on Rational Synergy and Change to development teams manage the complexity of the software and to ensure that our global development teams Change management across the end-to-end operate as one, for the best result to our software lifecycle customers. This software from IBM is part of our livelihood; it's our DNA.”
  • 17. Smarter Planet Requires a Significant Investment in Software Software is increasingly viewed as a strategic business asset Imagine the amount of software necessary to: • Deliver a more energy efficient world • Take advantage of information base explosion • Communicate with a trillion devices • Drive on-going product differentiation • Serve new global markets Leaders everywhere are deploying increasingly intelligent software, systems and products Accelerating innovation and enabling effective change is highly dependent on their ability to manage effective software delivery
  • 18. Software as a Strategic Business Asset $ 4.5T Cumulative Value Annual Expenditures of Software Investments and In-house developed Cumulative Value of Investments $ 3.3T Work for Hire $ 2.3T Purchased $ 2.6T $ 0.6T Annual Software $ 1.5T Expenditures $ 690B $ 550B $ 480B $ 290B In-house developed $ 380B $ 1.6T $ 80B Work for Hire $ 320B Purchased 1995 2000 2005 2010
  • 19. System and Software Lifecycle Processes Optimizing Value From Investments Across the Software “Supply Chain” Business Capabilities Development Capabilities Enterprise Architecture / Analysis & Design Architecture Frameworks Requirements Product Portfolio Definition and Construction Management Management Configuration and Change Management Measurement and Reporting Release Management Operations Tivoli Production / Asset and Service Operations Quality Management Management