XXI CEO SummitHungary

Harry van Dorenmalen, Chairman, IBM Europe

How Smarter technologies are helping Europe progress

XXI CEO SummitHungary

Harry van Dorenmalen, Chairman, IBM Europe

How Smarter technologies are helping Europe progress

Are you ready?!

500,000,000 GB

15 petabytes

1 trillion

1 billion + transistors

30 billion RFID tags

2 billion people

global internet traffic volume expected by 2013

of new information being generated every day

devices attached to “Internet of things” are on the internet

embedded into our world and into our products

for each person on the planet

We live in an instrumented, interconnected, intelligent world

Tackling problems that are relevant

Health Care Public Transport

Law Enforcement Environment

Government

Telecom

Manufacturing Traffic Control Fraud Prevention

…in all aspects of the economy

Trends 1: Leading the evolution of the thinking machine

Counting Machine(Circa 1820)

ENIAC(Circa 1945)

Deep Blue(1997)

Watson(2010)

LearningSystems

Astronomical Computer

(87 BC)

Abacus(Circa

3500 BC)

Napier’s Rods(Circa 1600)

Computer IntelligenceOver Time

The New IT Frontier

Cognitive computing aims to create computer systems that can deal with ambiguity and learn over time

… organizations are operating with blind spots

Inefficient Access1 in 2 don’t have access to the information acrosstheir organization needed to do their jobs

Lack of Insight1 in 3 managers frequently make critical decisions without the information they need

Inability to Predict3 in 4 business leaders say more predictiveinformation would drive better decisions

VARIETY of Information

VOLUME of Digital Data

VELOCITY of Decision Making

Source: IBM Institute for Business Value

Trends 2: Intelligence, from data, is changing the game

Trends 3: Cities are getting smarter

By 2050, city dwellers are expected to make up 70% of Earth’s total

population or 6.4 billion people!

Public Safety

Government Services

Education

HealthcareTelecommunications

Transportation

Instrumented

Interconnected

IntelligentEnergy

Standouts capitalize on complexity in three ways

• Creativity is #1 leadership quality• Drive change in the organization to

stay ahead of market and use a wide range of communication styles and tools

• Break with status quo of industry, enterprise and revenue models

• “Getting closer to customers” is the single most important theme

• Better understand customer needs through collaboration and info sharing

• Exploit the information explosion to deliver unprecedented customer service

• Simplify operations and products to better manage complexity

• Use iterative strategies, make quick decisions and execute with speed

• Integrate globally, increase cost variability and exploit partnering to increase agility

• If nothing changes, nothing changes: What did you do different?

• Do you –personally- have the global network and reach to make change happen?

• Did your skillset changed / improved in the past year?

• Are you working on solutions for which we did not define the problem yet?

• Did you notice that the talent in your organization is changing?

11

Are you ready?!

“How will people remember you?”

Let’s Build a Smarter Planet

Are you ready?!

Agenda

What’s going on in the world1

Where technology is heading2

How to make it work for you3

Kilowatt hours wasted yearly by consumers due to insufficient power usage information.

170 billion

Total sales missed each year because retailers don’t stock the right products to meet customer demand.

$93 billionGlobal trading systems are under extreme stress, handling billions of market data messages each day.

Lost hours and 2.3b gallons of gas is the annual impact of congested roadways in the U.S. alone.

People worldwide are pushed below the poverty line by personal healthcare expenditures.

100 million

What problems are we trying to solve?

25 billion3.7 billion

A Smarter Europe – a brief selection

Smart traffic systems – London, Amsterdam

Smart water management, Malta

Smart healthcare – BG Trauma Hospital, Hamburg

Smart food systems – Matiq, Norway

Smart oil field technologies – Statoil, Norway

Smart regions – Venice

Smart weather - Rotterdam

Smart travel - Finnair

Smart cities - Berlin

Smart retail – Metro, Germany

Watson – towards ‘thinking’ technology

Answers questions in natural language

Made possible by: Advances in natural

language computing Enormous

computational power

World’s info digitized

Begins new era in making sense of massive amounts of data through advanced analytics

Are you ready?!

Let’s Build a Smarter Planet