Innovation for the 21st Century

Transcription

1 Nicholas M. Donofrio IBM Fellow Emeritus (Ret.) IBM Executive VP, Innovation & Technology Innovation for the 21st Century

2 Accelerating Advances in Technology 2 Source: Kurzweil 1999 Moravec 1998

3 Accelerating Advances in Technology Driving Costs Steadily Downward Source: Kurzweil 1999 Moravec

4 World Economy in a New Era 21st-Century IC Technology Drivers Network Ubiquity More than a billion Internet users and three billion wireless subscribers worldwide Open Standards Widely-adopted technical and transaction specifications New Business Designs Horizontally-integrated operations 4

5 The National Innovation Initiative Goals Bring together top minds on innovation Sharpen understanding of how the innovation process is changing and can be harnessed for economic growth Look beyond the traditional tools for economic stimulus Advocate a strategic agenda to create a fertile environment for innovation; one that values the participation of other nations 5

6 Innovation Defined Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value. National Innovation Initiative 6

7 National Innovation Initiative Talent Investment Infrastructure Develop a diverse, world class, next-generation of innovators Help markets place top value on long-term innovation strategies Create world-class infrastructures, including transportation, information, healthcare and energy Establish a National Innovation Prize Establish incentives to increase early-stage investment in smallbusiness innovation Drive regulatory and legal systems to better support innovation and entrepreneurship Make the US a magnet for the best global talent Invest to accelerate innovation in the services economy Build a system that protects the rewards of IP, but that also encourages open collaboration Establish innovation metrics for the knowledge economy, not the industrial economy 7

8 The Changing Nature and Scope of Innovation Open Collaborative Product and Services Innovation Process Innovation Business Model Innovation Management System Innovation Societal Innovation Multi-disciplinary Global 8

9 Established Innovation Ecosystems Positioning to Compete in the Global Economy NII Initiatives Launched NII Initiatives Formulating

10 The Realities of a Globally Integrated World Interwoven Issues Economic downturn and uncertainty about the future Increasingly empowered and interconnected customers demand more responsible business practices Energy shortfalls combined with volatility in price and demand for energy worldwide Transience in price and availability of shrinking natural resources, worldwide 10

11 The Need is Clear 170 billion kwh wasted annually due to insufficient power usage information 4.2 billion lost hours 2.9 billion gallons of gas Annual impact of congested roadways in the U.S. alone 1.1 billion Number of people without access to safe water, according to The World Bank 11

12 The Benefits are Real 15% reduction in peak loads 20% less traffic 20 million gallons of water saved Pacific Northwest National Laboratory Smart Grid Project City of Stockholm IBM chip manufacturing in Burlington, VT 12

13 The New Environment Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT 13

14 Information Technology is making things Faster, less expensive, and New sources of data, new insights, new capabilities 14

15 To Realize the Potential of a Smarter Planet Organizations Need to Do Three Things Focus On Value Do more with less Focus on the core Re-align relationships Leverage Opportunities Capture share Build future capabilities Change your industry Act with Speed Manage change Leadership Risk and transparency 15

16 Smarter Transportation Transformation Examples City of Stockholm Singapore Land Transport Authority Intelligent toll system in the city center 20% less traffic 40% lower emissions 40,000 additional users of public transportation system Deep insight into rider travel patterns Enables fare and schedule adjustments Increases ridership Reduces traffic congestion 16

17 Smarter Water Transformation Examples River Estuary Observatory Network Galway Bay Minute-to-Minute monitoring of the Hudson River Self-managing network of sensors, robotics and computational technology Real-time analytics; advanced visualization Real-time advanced analytics platform Forecasts wave patterns Monitors marine life Water contamination warning and response 17

18 Smarter Energy and Utilities Transformations ONCOR Electric Delivery, Texas Malta Smart Grid Leading one of America s largest deployments of smart grid technologies; replacing 3.4 million standard meters with smart meter systems by IBM building world s first smart grid country. Network of 250,000 smart meters will enable Malta s national utilities to conduct remote monitoring, meter reading and real-time management by IBM providing expertise in smart metering, systems integration, business analytics and security solutions. 18 Pricing based on time of day; Malta residents track their energy use on-line.

19 The 21st Century Demands Uniquely-Skilled People Cross-disciplinary programs and degrees Fusing technical competency with industry-specific knowledge and business-process expertise to create the next generation of innovators, education must be fundamentally transformed and realigned. Talent & skills to innovate and deliver on the promise of a Smarter Planet 19

20 The World Needs Services Innovations Nation % WW Labor % A % G % S 2009 United States 2009 China India U.S (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products Indonesia Brazil Russia (S) Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactions between things Japan Nigeria Bangladesh Germany >50% (S) services, (A = Agriculture, G = Goods, S = Services 20

21 US GDP Shift to Service Innovation US Gross Domestic Product Product Service Material 11% 30% Information & Organization 9% 50% 21 Based on Uday Karmarkar, UCLA (Apte & Karmarkar, 2006)

22 T-Shaped People Drive Services Innovation Economics and Social Sciences Science and Engineering Business Anthropology Industrial and Systems Engineering Organizational Change & Learning Computer Science & Info. Systems Business and Management Math and Operations Research

23 Accelerating Change Building a Smarter Planet,Together Technology & Innovation Analytics & Optimization Collaboration & Insight 23

24 Moving Forward Work together aggressively in new and varied ways Real innovation comes when business, government and academia collaborate A true genius is a person capable of freeing their mind from the worn channels of tradition and time 24

25 25 If nothing changes, nothing changes.