© 2010 IBM Corporation
Sustainability on a Smarter Planet Going Green and Beyond
George Mattathil -
4/27/2011
© 2010 IBM Corporation
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.
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
These mandates for change are mandates for smart.
© 2010 IBM Corporation
Sustainability on a smarter planet
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.
© 2010 IBM Corporation
Sustainability on a smarter planet
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.
+ + =
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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
© 2010 IBM Corporation
Sustainability on a smarter planet
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.
© 2010 IBM Corporation
Sustainability on a smarter planet
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 ?
© 2010 IBM Corporation
Sustainability on a smarter planet
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