Building A Smarter Planet

We know the world is becoming smaller… and

flatter.

Something else is going on that may ultimately have

a greater impact on business and society.

The world is about to become smarter.

This is quite literally about how the world works…

the world’s infrastructure is becoming intelligent.
In 2001, there were 60 million transistors for
every human on the planet ...

… by 2010 there will be 1 billion transistors

per human…

… each costing 1/10 millionth of a cent.

In 2005 there were 1.3 billion RFID
tags in circulation…

… by 2010 there will be 33 billion.

Worldwide mobile telephone subscriptions
reached 3.3 billion in 2007 and expected
to reach 4 billion by the end of this year
One billion camera phones were
sold in 2007, up from 450 million in
2006 …

3G devices growing 30% annually.

An estimated 2 billion people will be on the
Web by 2011 ...

… and a trillion connected objects – cars,

appliances, cameras, roadways, pipelines –
comprising the "Internet of Things."
The reason we will all begin to transform our
systems, operations, enterprises and personal lives
to take advantage of a smart planet isn’t just
because we can.

It’s because we must.

U.S. CPG companies and retailers
lose $40 billion annually due to
inefficient supply chains.
In North America, up to 22 percent of total port volume is
empty containers.

The Port of Jersey has 100,000 empty containers sitting

in storage – worth nearly $200 million.
In the United States alone, 2.2 million
dispensing errors are made a year
because of handwritten prescriptions.
The U.S. healthcare system loses more than
$100 billion a year to fraud.
In a small business district in Los Angeles, driving
around for parking in one year generated the equivalent
of 38 trips around the world, burned 47,000 gallons of
gas, emitted 730 tons of carbon dioxide.

Congested roadways cost $78 billion annually in the

form of 4.2 billion lost hours and 2.9 billion gallons of
wasted gas.
In the U.S., a typical carrot has traveled
1,600 miles, a potato 1,200 miles, a chuck
roast 600 miles…

…grocers and consumers throw away

$48 billion worth of food every year.
In distributed computing environments 85%
of computing capacity sits idle.

In six years the power consumption of a

server has risen from 8 watts to more than
100 watts per $1,000 worth of technology.

On average, for every 100 units of energy

piped into a data center, only 3 units are
used for actual computing. More than half
goes to cooling the servers.
We’ve thought about IT as the world of data centers,
software, PCs, routers, bandwidth.

We’ve thought about infrastructure as the world of

buildings, factories, hospitals, roads, pipelines.

Those worlds are converging.

We’re confident that the world can become smarter.

We’re building it with our clients.
SMART HEALTH CARE

IBM is helping ActiveCare

Network monitor over 12,000
clinics and provide over two
million patients with the
proper delivery network for
injections, vaccines and other
pharmaceuticals.

ACN is using IBM software to

lower the cost of therapy by 90
percent and reduce time and
cost required to develop
patient and clinic applications
by 60 percent.
SMART ENERGY

IBM leads 7 of the 11 smart

meter deployments globally,
building intelligence into
utilities to lower costs for
customers and better balance
the grid.
Pacific Northwest National
Laboratory has helped
homeowners reduce energy costs
up to 10 percent by turning
ordinary thermostats into day
traders for energy, ensuring
the best cost for the customer
and better load balancing for
the grid.
SMART SUPPLY CHAINS

IBM has helped companies ship

smarter, with an innovative
tracking system that does more than
help shippers manage supply chains;
it reduces empty cargo containers
and monitors the condition of
container contents.

The smart shipping system provides

temperature and humidity readings,
intrusion alerts, quicker customs
clearance and more … all
communicated wirelessly and shared
over the Internet with partners.
SMART TRACKING

IBM and Matiq are developing a

smarter food tracking solution,
the first-of-its-kind in the
Nordics …

… it uses RFID technology to

track and trace meat and
poultry from the farm, through
the supply chain, to
supermarket shelves.
SMART FINANCIAL SYSTEMS

IBM rebuilt the world’s

currency markets -- one of the
most advanced and complex
exchanges -- to help understand
risk in real-time.
SMART TRAFFIC

IBM is working with Brisbane,

London, Singapore and Stockholm to
deploy smarter traffic systems.
At least 20 other cities have
active bids to do the same.
Stockholm has seen approximately
20 percent less traffic, a 12
percent drop in emissions and a
reported 40,000 additional daily
users of public transportation.
SMART LAW ENFORCEMENT

IBM is helping the city of

Chicago fight crime by
digitizing their law
enforcement practices and
deploying smarter surveillance
systems …

… even testing a system that

uses audio sensors to direct
cameras to locate gunshots,
determine the caliber of gun
fired and pinpoint its exact
location – long before 9-1-1 is
dialed.
SMART WATER

IBM and the Nature Conservancy

are finding smarter ways to
manage water supplies …
providing analytics and research
capabilities on the behavior of
watersheds and the impact of
human activities on freshwater
supplies.
IBM’s Stream Computing system
will provide minute-to-minute
deep analysis of New York's
Hudson River via an integrated
network of sensors, robotics and
computational technology
distributed throughout its 315
miles.
SYSTEMS
SOFTWARE
SERVICES
FOR A SMARTER WORLD