The rapidly accelerating pervasive instrumentation and interconnection of the world’s infrastructure and the emergence of entirely new ways for businesses to organize, operate and differentiate, is transforming the competitive landscape. This is why I am on a plane to meet with the top technical team of a utility company to discuss how we can work with them to accelerate their business forward.
Sam Palmisano in his speech to the council on foreign relations last week, talked about A smarter planet, the next leadership agenda. Reference the New York Times article , by STEVE LOHRPublished: November 6, 2008. Sam Palmisano's call to action was a compelling one citing reasons like how much energy is needlessly wasted. For example: Did you know significant electrical energy is lost because of inefficient power generation and grid management? The inefficiencies in our current grids are systemic. With little or no intelligence to balance loads and monitor power flows, every year, grids around the world lose enough electricity to power India, Germany and Canada!
Hundreds of billions of dollars are wasted generating energy that never reaches a single light bulb.
400B kWh are wasted by consumers each year due to insufficient consumption information.
Sam also cited examples including: How gridlocked our cities are, How inefficient our supply chains are, How antiquated our healthcare system is:, How our planet's water supply is drying up…And, of course, the crisis in our financial markets…need I continue? Technology(in part) got us here and technology can get us out! Smarter industry based solutions are possible today.
You may have noticed that The Tivoli portfolio has been expanding to provide what is needed to manage the world’s infrastructure(beyond IT) Leveraging the breadth and depth of IBM’s products and services, Tivoli is uniquely positioned now to manage the world’s infrastructure, to deliver a smarter planet, to deliver IBM Service Management for Industries around the world….
Managing the World's Infrastructure
Let me elaborate on what I have stated - we leverage the full suite of Tivoli products as the building blocks of our solution work. The main focus of our work is on making service management more relevant for each industry, with easy to begin,entry points based on unique needs of that industry.
Today, SOA is at the heart of business transformation( in that SOA, for eg. provides greater flexibility to compose new business services ) and so Tivoli Industry Solutions largely uses SOA as a foundational architecture.
We also base our solution architecture on IBM’s Industry Frameworks which are software-based platforms based on business specific usage patterns including industry-specific extensions, business and technology standards and an ecosystem of independent partner assets, guided by industry and subject matter expertise, and a global delivery model that leverages Service, Software, Hardware from IBM and business partners.Putting Service Management in an industry context has been a significant amount of work but absolutely critical for the solution required for today’s challenges.
We do it by enabling better VCA (Vision, Control , and Automation) Isn’t there a saying that goes something like, if you can’t see it or you can't measure it, then you can’t manage it(or something like that anyways)… let me give a specific example: Recall how much energy is lost because of inefficient power generation and grid management. The impact of making the grid just 5% more efficient would be equal to removing the carbon footprint of 53 million automobiles! Better visibility and real time control of the grid is clearly needed and a great place to start. We are working with utilities on a solution to drive Visibility that will extend from IT Networks across the electric grid that will ultimately transform the transmission and distribution system into an intelligent (or smart) grid. We are working to improve control to pinpoint problems with event correlation across the grid and IT infrastructure and drive more automated problem resolution and, for example, provisioning of advanced meters that will provide better visibility to utility customers. There is huge potential here as well. One study shows that as much as 170 billion kw are wasted due to lack of visibility to residential customers.
Tivoli Industry solutions is rapidly evolving. Our first phase was focused on increasing our utility industry understanding and credibility, build out the Tivoli assets for the initial plays and complete initial validation. We are now advancing to real implementations and this is where it will get very exciting. Exciting not only for the impact that our work will have but also exciting in the part we are playing in the next leadership agenda - a smarter planet.