© Copyright IBM Corporation 2009

Energy & Environment Innovation & Commercialization – Building a Smarter Planet

Florence D. HudsonEnergy & Environment ExecutiveIBM Corporate Strategy

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The Bad News: IT accounts for 2% of global CO2 emissions

The Good News: IT can significantly contribute to control and reduce the 98% of CO2 emissions caused by other activities

and industries

Sources: Gartner, Green IT, October 12, 2007; “The Green Road Less Traveled” by Thomas L. Friedman, The New York Times, July 15, 2007, http://select.nytimes.com/2007/07/15/opinion/15friedman.html?scp=2&sq=thomas%20l%20friedman%20july%202007%20greener%20smarter&st=cse

“… you can’t make a product greener, whether it’s a car, a refrigerator or a traffic system, without making it smarter — smarter materials, smarter software or smarter design.” - Thomas L. Friedman

December 2008 3

Tackling climate change is good for the climate and economy

Information and Communications Technology (ICT) can significantly improve energy efficiency and reduce GHG

emissions, driving potentially $1 Trillion in energy savings per year by 2020 and 7.8 Gigatons CO2e abatement

Smart Logistics: $442B/year

Smart Industrial

Automation: $107B/year

Smart Buildings: $341B/year

Smart Grids: $125B/year

Source: The Climate Group, “Smart 2020: Enabling the Low Carbon Economy in the Information Age.” 2008

4§ Cap and Trade Systems

IBM innovations address energy & environment challenges –

photovoltaics, IT to ET, nanomembranes for desalination, energy storage; etc.

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Measuring, Monitoring, Modeling and Managing

MeteringMeteringSensingSensing

Real Time Data Integration

Real Time Data Integration

Real Time + Historical Data

Real Time + Historical Data

Data Modeling + Analytics

Data Modeling + Analytics

Visualization + DecisionsVisualization + Decisions

§ Data modeling and analytics to create insights from data to feed decision support and actions

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§ Comparison of historical data, with newly collected data

§ Data collection

§ Data Integration

Source: IBM Corporate Strategy

What does it mean to become Smarter?

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Many of IBM’s smarter planet initiatives are interconnected – www.ibm.com/smarterplanet

Public SafetyProducts

Water

Work

Retail Intelligence RailTraffic

Energy Oil

TrafficHow we get from point A today to point B tomorrow

BuildingsGiven their environmental impact, it's time we designed from the earth up

OilGet to the "first" oil faster. Increase recovery rates. Sense and solve problems before they start.

WaterWhether too much or not enough, the world needs a smarter way to think about water

CitiesSafe neighborhoods. Quality schools. Affordable housing. Traffic that flows. It's all possible.

IntelligenceSmart thinking about data analysis

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Desired Goals & Outcomes

Ø Advance novel ideas that could lead to

collaborative research with university partners worldwide

Ø Publish report and share findings with influencers and key stakeholders worldwide

Ø Gain input useful to IBM business units

working on Smarter Planet related topics

Ø Drive awareness in universities of IBM’s

smarter planet initiatives

IBM Smarter Planet University Jam – April 21-24, 2009

Jam Participation Highlights

Ø Nearly 2,000 students and faculty, joined by IBM employees and select industry and government representatives

Ø 75% of jammers were university students

Ø Over 200 universities and research centers in 40 countries represented

Ø Nearly 3,000 individual discussion posts during Jam

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“This was my first experience with participating in an online jam session. I was struck by the fact that students and faculty from the world over were actually involved in ‘ideating’ while debating on various issues. I was amazed to see how discussions went back and forth easily, regardless of distance and familiarity. The jam format also gave a feeling of a live (physical) jam session that moves back and forth rapidly. I would recommend all students to participate in such sessions, either actively or even as passive observers. The experience itself is a great learning opportunity.” – Georgia State University, USA

“As university students, we have the responsibility to do our best to think and turn awareness into action. IBM provided is with a vast platform to do this. It's our opportunity to contribute our ideas to the public, and it’s our opportunity to make our ideas a reality. I'm sure that IBM will lead the world to a smarter planet, and everybody will benefit from it.” - Sichuan University, China,

“Before the Jam, I didn't expect much from a discussion about our planet, but thanks to IBM, the Jammers were able to take me to another level. Topics like building smart cities had never crossed my mind and thanks to the discussions, I can now think in a new dimension when it comes to solutions for our towns here in Uganda. The ideas that emerged were far- reaching and I can't wait for the next Jam.” - Makerere University, Uganda

“The University Jam was an excellent demonstration of bridging the gap of communication

between corporation and consumers. I personally felt that my opinions were well recognized,

and it was quite wonderful…I hope that IBM continues this… – Clarkson University, USA

Reactions from student Innovation Jammers

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Smarter Planet Skills & EducationInsights & Ideas for Innovation from Jammers

Key Insights

– Success in the services-based global economy requires academia, government and industry to work together to create “T-shaped” people (deep knowledge in one area, broader knowledge in others).

– Education is not keeping up with the pace of technology change

– Collaboration between industry and education generates high value

– Cloud computing is a key delivery and learning platform of the future

Ideas for Innovation

- Measure and communicate the need for interdisciplinary education, and affect change in curriculum on a

global basis.

- Create a Web-based repository containing real-world projects and scenarios in terms of

workflow systems, suggested environments, best practices of solution development, project

management and more.

- Create smarter campuses, which are interconnected, enriched and fed by on-the-ground

knowledge being developed over social networks.

- Make “give-back” (community service) a formal part of education credits.

80% of jammer poll respondents want

universities to incorporate new technologies like

“Virtual Worlds” into the traditional

learning environment.

Nuclear Power in LaGaude, France