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None of us could have anticipated the economic challenges that we’re currently facing. Every crisis, however, offers opportunities for those who seize them. This is a time when forward-looking businesses and government institutions achieve leadership through investing in 21st century solutions to old problems. Information technology is the tool that will allow us to renovate and improve the world's infrastructure. We are seeing examples all over the world where effective use of technology is making the infrastructure we depend upon more efficient and more effective.

At IBM, we describe this capability as enabling a "Smarter Planet." Technology, economics and societal interest have all aligned to enable the creation of a smarter planet. Computing technology, microprocessors, are now cheap enough to make it possible to instrument almost anything. High bandwidth wired and wireless connectivity has become more widely available at low cost. The collection and analysis of large quantities of information can now be done in real time and at lower cost.

The current financial crisis makes it critical for businesses and governments to make better use of exiting infrastructure. Renovate and optimize rather than replace. Broaden recognition of the environmental impact of not managing the world's resources more effectively. Finally, though not the most important long-term factor, governments are planning on putting huge sums into economic stimulus, focused on modernizing critical infrastructure such as transportation, power grids and major public services, such as healthcare.

There are many Smarter Planet projects already underway around the world. Utility companies have started automating their energy grids and installing “smart” meters, which can turn equipment on and off, allowing both energy companies and consumers to pursue a “green” way of doing things. These projects provide an energy company with the ability to monitor and optimize energy distribution, provide incentives to consumers to lower energy usage and significantly reduce the cost of maintenance through preventative maintenance programs. The cost of additional instrumentation devices and IT equipment is usually paid for within months based on maintenance cost reductions alone.

Railroads are putting sensors into their track and rolling stock to better understand how to optimize their use of equipment and monitor wear. Cities are installing sensors to monitor traffic and manage traffic flow to reduce congestion and pollution. Food processing and shipping companies are using radio frequency identification (RFID) and other sensors to reduce spoilage of perishable food products. The list of projects is long and growing.

Smarter Planet initiatives are not isolated to the more mature economies with well established but aging infrastructures. Emerging market countries are equally interested in applying the latest techniques to realize the same benefits. Why implement a 20th century infrastructure when 21st century approaches are readily available at a reasonable cost? It is also important to recognize that creating a smarter planet is a journey. Making existing infrastructure "smart" takes time.

Deploying new infrastructure in less-developed countries will also take time. Achieving the long-term goals and the associated benefits will take clarity of vision and purpose by the both the private and public sector.

For India, smarter planet approaches are an imperative. More than 1.1 billion people must share the country's resources and infrastructure. Population growth, combined with urbanization, means that power grids, fresh water supplies, transportation systems, healthcare systems and all of country's resources are going to be stressed to an ever greater degree. More than simply improving or adding to existing infrastructure, there is a need to make it smart and efficient. Basic infrastructure is critical for economic growth. Efficient infrastructure that is enabled for the 21st century is essential for long-term growth.

At IBM, we have never been more excited than we are today about the potential to apply information technology to address some of the world's biggest problems. As an almost 100-year old company, we have participated in multiple generations of information technology that have fueled the growth of the global economy. Mechanical computing devices did that for the first half of the 20th century. Electronic data processing has been an essential tool for growth and efficiency throughout the 50 years.

The next 100 years is going bring about profound change in the world we live in. Information technology will be deployed in new ways to make the infrastructures that support our growth and prosperity more efficient. This opens new opportunities for expansion of the information technology industry. It will create jobs and support advanced education. It will combine the know-how of those who understand how to engineer and build the infrastructures that support a 21st century economy together with those who know how to apply effective instrumentation, connectivity and advanced optimization techniques to make the entire physical world more efficient.

Steve Mills is a senior vice-president and group executive of IBM Software Group, which contributes $22 billion of IBM’s revenues and more than 40% of its profits.