Smarter Planet: Green and Beyond

© 2010 IBM Corporation

Sustainability on a Smarter Planet Going Green and Beyond

George Mattathil -

4/27/2011


Sustainability on a smarter planet

A globally integrated world creates new interwoven issues.

Increasingly empowered people demand better managed and

eco-efficient workplace.

On going pressures to reduce cost.

Energy shortfalls combined with

volatility in price.

Buildings have new connectivity, communication

and security imperatives.

Urban growth straining both new and existing

infrastructures.



To realize the benefits of sustainability, an organization must take a systemic view of its value chain….

WORKFORCE

MANUFACTURING

SUPPLY CHAIN

IT CUSTOMERS

TRANSPORTATION FACILITIES



Uncovering unexpected areas of cost...

Water required

over the product

lifecycle of a pair

of jeans.

Number of new trees

needed to clear CO2

emitted by data centers

each year.

Value of the carbon offset

purchases by 20 countries

in order to meet emissions

reduction targets in 2008.

10,855 liters 6.6 billion $46 billion



Uncovering unexpected areas of cost and opportunity.

In water during chip

manufacturing process each

year by IBM’s Burlington

FAB. Resulted in $3 million

annual savings.

By implementing a green

data center, Care2, a global

online community, cut costs,

improved performance, and

promoted its sustainability to

attract new members.

UK retailer Tesco

avoided an estimated 2,400

tons of CO2 emissions by

importing wines in bulk

and bottling them in lighter

weight glass.

20 million gallons saved

74% less energy

2,400 tons avoided



The demand for change is growing.

59 countries and

jurisdictions have or are

pursuing implementation

of mandatory cap and

trade systems.

Of companies have seen an

increase in the number of

advocacy groups collecting and

reporting corporate social

responsibility (CSR) related

information about their company.

Consumers say they

would switch brands for a

given product or service if

provided with a more

ethical alternative.

59 75% 1 in 4



These mandates for change are mandates for smart.



Something profound is happening….

INSTRUMENTED

We now have the ability to

measure, sense and see the

exact condition of practically

everything.

INTERCONNECTED

People, systems and objects

can communicate and

interact with each other in

entirely new ways.

INTELLIGENT

We can respond to changes

quickly and accurately,

and get better results

by predicting and optimizing

for future events.



An opportunity for smarter organizations

to find the value in ―sustainability‖.

Lower costs while

overcoming operational

barriers.

Strengthen reputations

while meeting

regulations.

Create products, services

and workplaces that give

rise to new opportunities.

+ + =



To achieve these benefits, organizations need:

Green infrastructures

Take out cost and

improve the efficiency

of IT and other

infrastructure.

Enable readiness with

regulatory

compliance.

1 2 Intelligent Systems

Use predictive

analytics for water

management.

Optimize power grid ;

control two-way flow

of energy from power

plant to plug.

Optimized

transportation

systems.

Smart products.

4 Sustainable solutions

Increase

organizational

efficiency, abating

impact of processes,

products and people.

Create ability to

measure, monitor,

improve and report

on processes.

Smarter Buildings

Be more cost

effective by

reducing energy

and operating

costs.

Communicate in

real-time with

supporting

infrastructure

Ongoing

environmental

responsibility.

3



IBM Green Infrastructure is an instrumented and interconnected system enabled by intelligent energy management.

IT Equipment

Energy efficient hardware Virtualization and consolidation Active energy management Tiered storage

1

Accurate thermal and energy usage assessments Extend life of existing infrastructure Rationalize infrastructures across company Design flexibility into new data center infrastructure

Data Center

Applications and Data

Lifecycle management, retention, archiving of data Optimization of application servers Application performance monitoring Data deduplication, compression and clean up

IT management dashboard Intelligent Building Management System interface Threshold controls Optimize assets for energy efficiency Track and verify energy efficiency

Energy Management



Green infrastructure: Applications and benefits

SMART IS

Building green data centers to

support corporate brand

objectives

kika\Leiner: Designed and built

new energy efficient scalable

modular data center –reducing

electrical consumption by up to

40%. The new data center

extended their environmental

strategy to include their data

center.

SMART IS

Proactively addressing

information growth and

environmental regulation.

Douglas Holding : Green

infrastructure built to anticipate

and respond to information

growth, measure and verify

performance and achieved data

compression rates of up to 80%.

SMART IS

Holistic view of energy

consumption that enhances

the efficiency of buildings,

fleets and physical assets.

Star Technology Services: Can

manage both power and cooling

capacity and begin to include

non-IT resources into its event

management. They use the same

infrastructure monitoring

IT to monitor and measure

non-IT devices and view overall

power use.

1



Develop CSR and sustainability strategies

Benchmark for sustainability and corporate social responsibility (CSR)

Develop strategies to reduce energy and CO2 emissions

Provide reliable and verified collection and reporting of energy and environment

data to streamline compliance

Sustainable solutions from IBM help account for the environmental and social impacts of doing business.

Governance & Business Strategy

Apply lean and six sigma principles to

reduce energy and water usage, CO2

emissions and waste generation

Model, simulate, redesign and

automate processes for energy

efficiency and environmental impact

Reduce use of paper in business

processes

Monitor & analyze green KPIs across

operations

Adapt processes dynamically to

environmental challenges that affect

operations

Business Process Management

Optimize the supply chain for service

levels, quality, cost, and CO2 emissions

Product Lifecycle Management

Product & Supplier Management

Optimization strategies to balance

environmental impact and cost

RFID tagging and tracking systems

Networked sensors and meters for

environmental data collection

Distribution & Logistics

Travel reduction and work from

home strategies

Distributed employee collaboration

via email, instant-messaging,

online conferences, and other tools

Online events and collaboration

Jams

Workforce & Stakeholders

2



SMART IS

Reinventing processes to use

less water, energy and other

chemicals.

IBM Burling FAB: Retooled its

chip-making process to cut annual

water use by 20 million gallons,

chemical use by 15,000 gallons

and electricity use by more than

1.5 million kWh.

SMART IS

Consolidating distribution

centers to reduce emissions by

15% and fuel costs by 25%.

Fronterra: a large New Zealand

dairy co-operative, leverages IBM

ILOG Supply Chain Management

technology to optimize their

supply chain - removing 4,000

truckloads off the road annually,

and the potential to exit 12 third-

party warehouses.

SMART IS

Cosco: Utilized IBM’s Supply

Chain Network Optimization

Workbench (SNOW) to reduce

distribution centers from 100 to

40. Lowered logistics costs by

23% and reduced CO2 emissions

by 15% while maintaining service

levels for clients

Integrating sustainability

efforts into the overall

business strategy granting

them attention and extracting

their full benefit.

Sustainable Solutions: Applications and benefits 2



To manage energy usage and demand response.

Smart Building to Smart Grid Integration

Better management of energy usage and reduce costs.

Building Management

Infrastructure

Integrate and optimize costs by leveraging existing building infrastructure to integrate systems.

Improve the Value and contribution of IT backbone

Building Process

Integration

Connect disparate systems to enable the transfer of business information to and from various technologies.

Property Performance Management

Manage facilities portfolio across campus, state, country, and world.

Manage and extend life of all assets in a building or buildings.

Asset Management

Space Management

Provide support for space planning, space reconfiguration, and moves within the building.

Comply with Fed/State regulations

and company or organization goals.

Governance and Business Strategy

Business Modeling and Analytics

Create insights from building data to feed decision support and action.

Smarter Buildings help achieve financial, environmental, and operational benefits. 3



Smarter Buildings applications and benefit examples.

SMART IS

Holistic energy mgmt that

enhances the efficiency of

buildings and other assets.

St. Regis Hotel:

Designed for 4.9% energy cost to

revenue compared to average for

5 star hotels average at 8%.

Reduced energy cost / revenue

40% vs. similar 5 Star hotels.

SMART IS

Integrated communications

and building services that

support intelligent operations.

Ave Maria University:

Converged 23 systems to

single IP network. Integrated

JCI Metasys with IBM Maximo.

Saved $1M in building costs

and $350K/yr in combined

operating costs.

SMART IS

Integration of energy and

asset management to

lower operating cost.

Saint Barnabas Medical Center:

Improved asset utilization and

staff response times by 90%.

Reducing overhead paging by

94%. Enhancing HCAHPS scores

by eliminating communication

barriers between care teams

and patients.

3



Intelligent systems: IBM is partnering with business and government to deliver…

Road user charging and tolling practices

Integrated fare management systems

Transport information management systems

Innovations in telematics, GPS, etc

Increased operational excellence through an

integrated view of the grid

Reduced outages and a self-healing infrastructure

enabled by preemptive action

Improved utility energy efficiency through near

real-time visibility of consumer energy usage

Hybrid vehicles that increase energy efficiency

and reduce CO2 emissions

Electronic devices with smart energy saving

features

Fleet management solutions that use hardware

and software to improve fleet efficiency and

reduce fuel consumption

Strategic water information management of

natural, utility, and enterprise water systems

Smart water infrastructure solutions (e.g. smart

levees, smart storm water management )

Smart water meter management and asset

management solutions

Intelligent Utility Networks

Intelligent Transportation Systems

Advanced Water Management

Smarter Products

4



Intelligent systems: Applications and benefits

SMART IS

Lowering congestion

and carbon emissions

by influencing traffic

patterns on a city

scale.

Stockholm, Sweden:

Implemented an intelligent toll

system that uses cameras,

sensors and central servers

to identify vehicles and

charge drivers based on

when and where they drive—

cutting traffic by 20% and

emissions by 12%.

DONG Energy: Installed

remote monitoring and

control devices to gain an

unprecedented level of

information about the

current state of the grid,

lessening outage times by

a potential 25-50%.

SMART IS

New hybrid systems

that can improve fuel

efficiency in urban

delivery vehicles by

up to 70%

Eaton: Developed a

smarter hydraulic hybrid

powertrain system for UPS.

If half of all urban delivery

vehicles in the U.S. used

this type of technology, we

could realize a $1.5 to 2

billion annual savings in fuel

cost, and reduce CO2

emissions by 8 million

metric tons (EPA).

SMART IS

Knowing exactly where a

power outage occurs and

instantly dispatching a

crew to fix the problem.

SMART IS

Observing and modeling

natural water systems at

multiple scales to guard

against pollution,

flooding, and depletion

of fishing stock levels.

Galway Bay, Ireland:

Paving the way for smarter

environmental management

and development of Galway

Bay, IBM and the Marine

Institute of Ireland have

deployed a real-time

advanced analytics platform

to monitor wave conditions,

marine life, and pollution

levels in and around

Galway Bay.

4



Organizations focused on.. IBM delivers..

1 Green infrastructures

Data Center Assessment and Services ( STG, GTS ) Data Center Family™ (GTS) Consolidation, Virtualization and Optimization Services ( STG, GTS) Energy Efficient Servers and Storage Systems ( STG) Tivoli Energy Management solutions (SWG) Tivoli Storage Management (SWG) Information Management Solutions (SWG) DB2 data compression software (SWG) Rational Application Optimization (SWG)

2 Sustainable solutions

Strategic Carbon Management , IBM Green Sigma™ ( GBS) Carbon Intelligence ( GBS ) Sustainable Logistics Design, Asset Management, and Procurement ( GBS ) Environmental PLM ( SWG) BPM Suite ( GBS ) Lotus Collaboration Solutions and Converged Communications services ( GBS )

3 Smarter Buildings

IBM Green Sigma™ ( GBS ) Strategy and Change / Corporate Social Responsibility ( GBS ) Tivoli Maximo Asset Management Solution ( SWG ) Converged Communications Services ( GTS ) Network Integration and Optimization ( GTS ) IBM Systems Integration and Application Integration Practice (GBS)

4 Intelligent systems

Intelligent Utility Network and Advanced Meters ( Sector teams ) Intelligent Transportation , Intelligent Oilfields ( Sector teams) Strategic Water Information Management (Research) Rational Software Platform for Systems (SWG)

IBM’s offerings are aligned with smart organizations’ needs.



IBM’s own global transformational experience

IBM Services – Global Business Services has the consulting

expertise to bring together business and

operational requirements

– Global Technology Services has the operational

and integration best practices

IBM Technology – IBM Systems hardware leadership

– IBM Software solid base for integration

IBM Research – Deep Research Capabilities

– Green and Business Analytics Research

Partner Ecosystem

Let’s work together to drive real

progress in your business.

Why IBM ?



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