IBM, Big Data, and Sustainability University of Pennsylvania Wharton Initiative for Global Environmental Leadership March 27, 2014 Wayne Balta Vice President, Environmental Affairs & Product Safety IBM Corporation 1
Overview IBM A Brief Background A Smarter Planet, Big Data, Analytics Challenges for Sustainability Cities Water Food IBM Watson & Cognitive Computing 2
IBM is a Values Based Enterprise IBM integrates technology with business acumen for solutions that enable forward-thinking enterprises, institutions, and people everywhere to succeed on a smarter planet. Technology is broad -- including not only I/T hardware, software, and services but also diverse innovations and inventions across analytics, mobile, and social systems of engagement. Business acumen extends across all global industry sectors as well as the operations of governments. 3
IBM s 2013 Revenue: $99.8 Billion 430,000 employees serving clients in more than 170 countries 4
Longstanding Commitment to Corporate Responsibility and Sustainability IBM s founding family the Watsons were visionaries Thomas J. Watson, Jr., during the 1960s: We accept our responsibilities as a corporate citizen in community, national and world affairs; we serve our interests best when we serve the public interest... We want to be at the forefront on those companies which are working to make our world a better place." 5
Today We are Witnessing Huge Innovations in Information These Innovations Can Promote Sustainability A Smarter Planet Big Data Analytics 6
The bad news: The way the world works isn t smart enough to be sustainable. The good news: The signs of a smarter planet are everywhere. 7
Organizations around the world are turning too much data into better decisions. 8
The walls between companies and customers are disappearing. 9
So are the walls between technologies, industries and even fields of expertise. 10
And while computers are thinking and acting more like people 11
people along with homes, roads, farms, waterways and countless other systems continue to be enriched with new levels of computing power. 12
The Defining Attributes of A Smarter Planet are as Relevant and Real Today as When IBM Identified Them in 2008 Instrumented We have the ability to measure, sense, and see the exact condition of 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. These attributes arise from a foundation of data 13
Data Represents Both an Opportunity and a Challenge We have for the first time an economy based on a key resource [Information] that is not only renewable, but self-generating. Running out of it is not a problem, but drowning in it is -- John Naisbitt 40 Zettabytes worth of data will exist by 2020 Volume Data at Rest 30 Billion RFID sensors and counting Velocity Data in Motion 90% of the world s data are unstructured Variety Data in Many Forms 1 in 3 business leaders don t trust the information they use to make decisions Veracity Data in Doubt 14
40 ZETTABYTES (43 Trillion Gigabytes) of data will be created by 2020, a 300X Increase from 2005 A Closer Look at the Four Vs of Big Data Volume It's estimated that 2.5 QUINTILLION BYTES (2.3 Trillion Gigabytes) of data are created each day Most companies in the U.S. have at least 100 TERABYTES (100,000 Gigabytes) of stored data 6 BILLION PEOPLE have cell phones 420 MILLION WEARABLE, WIRELESS HEALTH MONITORS are expected to be in use in 2014 30 BILLION PIECES OF CONTENT are shared on Facebook every month 150 EXABYTES (161 Billion Gigabytes) The estimated size of healthcare data globally in 2011 Variety 4 BILLION+ HOURS OF VIDEO are watched on YouTube each month The New York Stock Exchange captures 1 TB OF TRADE INFORMATION each trading session It is projected there will be 18.9 BILLION NETWORK CONNECTIONS by 2016 Velocity Close to 100 SENSORS monitor items such as fuel level and tire pressure in modern cars 1 IN 3 BUSINESS LEADERS don't trust the information they use to make decisions Poor data quality costs the US economy around $3.1 TRILLION A YEAR Veracity 27% OF RESPONDENTS in one survey were unsure how much of their data was inaccurate 15
But while Systems of Engagement plus Systems of Record enable Systems of Insight we must transform data and information into knowledge along the way 16
Analytics: Extracting Knowledge from Data The analysis of big data allows people to detect patterns, glean insights, and make better and faster decisions. By using advanced techniques such as text analytics, machine learning, predictive analytics, data mining, and natural language processing organizations of all kinds can leverage previously untapped sources of data on their own or in concert with existing data across their enterprise to remake and improve the fundamental ways they operate. 17
So What About Sustainability? We need to optimize interdependent and competing needs across our world s economic, environmental, and social spheres while the world s current population of 7.2 billion increases by another billion over the next 12 years. There are plenty of challenges. Here are a few fundamental ones: Cities Water Food 18
Cities 19
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Cities: System of Systems with Separate But Interconnected Challenges Human capital determines speed of ICT adoption Communications The degree of ICT adoption affects the attractiveness of a region s business environment Water quality affects the health of all community members Citizens Water Industry accounts for a large proportion of water withdrawals Commuting affects quality of life Business Transport Greater commerce and growth increases the use of transport infrastructure Energy is the reason for a substantial part of all water withdrawals Energy & Utilities Transportation is one of the primary consumers of energy demand 21
With Open Data, Infrastructure and City Performance Can Become a Consumer Play Energy Smart meters; consumers track consumption Local energy generation (rooftops) integrated with the grid Public Safety Community crime mapping and reporting Maintenance Phone apps - Fixmystreet.com, Seeclickfix.com, also several homegrown alternatives created by local governments Water Smart meters, consumers track consumption Support for localized water treatment and recycling (remote quality assurance) Environment Detection and alerts of air and water pollution Whistle-blowing on damage to the environment Mass Transit Bus timings and locations On-line travel bookings All Spending data, even citizen budgeting League tables of performance, citizen satisfaction 22 Roads Traffic data, journey times, road-vehicle interactions Road pricing - static and dynamic Dynamic parking pricing, parking space search Plugshare - electric car recharging points
Promoting Individual Citizen Participation in Smarter Cities Solutions for Instrumenting People (i) Select Citizens select what type of urban event they want to report (ii) Collect A mobile application provides a reporting interface containing picture, location, classification, and annotation. (ii) Report and analyse The report is uploaded to a server and then submitted to a series of analytics components that derive relevant information from the citizens reports. 23
Water 24
Stress on Water Resources Impacts Essential Dimensions of Our Lives 25
Water Also Suffers From Insufficient and Poor Infrastructure 3.4bn litres of water leakage daily: 26-40% of total supply in the UK $4-8bn: cost for wastewater projects to reduce flow of nitrogen into area bays and ponds on Cape Cod In the US 1.7 trillion gallons lost annually from leakages; $330bn investment needed over next 20 years to replace aging pipes and treatment plants Average leakage rate in Latin American cities is 35% Brazil needs to invest $42 billion in water & sanitation infrastructure between 2011 and 2015 to guarantee supplies to cities and treat waste France needs +20% investment in water infrastructure by 2030 to maintain current services South Africa losing up to 35% of its water supply due to leakages and failure to pay. Ageing pipe system in Italy creates annual losses for operators of 3.9-5.2 billion 6 bn cubic meters of water lost through leaking pipes every year in China; $128bn investment by 2015 to address inadequate water infrastructure 700m litres of water per day lost due to leakages and illegal connections in Mumbai Source: American Water Works Association 2006, OECD 2009, Agici Finanza d Impresa 2008, China's Ministry of Housing and Urban-Rural Development 2011, Parliament of Australia, MIT Sloan 2011, African Development Bank Group 2008, Water World, ITT Corp 2010, ANA Brazil 2011, Siemans 2007, Johnson Foundation at Wingspread 2011, ASCE 2009 26
Smarter Water Management Enables More Efficient and Effective Management of Water Resources Data Data on water supply and demand collected from sensors and smart meter systems across industrial, utility, and environmental networks. So is data on the condition of infrastructure. Analytics Real-time data analysis, visualization, and prediction generate insight on water consumption, supply, distribution, and the need for maintenance or rehabilitation. Decisions Better manage supply, demand, storage, distribution, and treatment. Improve budgeting, forecasting, and emergency response. Eliminate previously unseen waste. Enable increased access. Integration Foster improved collaboration among multiple stakeholders by enabling access to shared data on a common platform. Source: IBM 27
Food 28
Smarter Agriculture Involves Innovative Use of Technology to Improve Food Science, Safety, Sustainability, Production, and Distribution Smarter Agriculture means: enabling end-to-end visibility across the global supply chain through more connected, instrumented and intelligent systems that provide more and better knowledge across the global web of input suppliers, growers, shippers, processers and retailers So that: resources are managed more efficiently and sustainably people have more confidence in the quality and safety of their food agricultural productivity increases the world can be fed 29 4/3/2014
Precision Agriculture via Data & Analytics Is Smarter Agriculture Precision Agriculture The traditional approach requires following a set schedule for planting, fertilizing, watering, and harvesting. Precision Agriculture changes the traditional approach by using data and predictive analytics to make smarter decisions. Data for Precision Agriculture is collected in real-time from sensors in the soil, air, and crops and augmented with weather forecasts. Crop Maintenance & Fertilizing Decisions are time sensitive and weather dependent Rain = Bad time to fertilize as rain washes away fertilizer No Rain = Good time to fertilize and irrigate Planting & Sensing Seeds are placed in the ground Sensors placed throughout the fields are used to measure temperature and humidity of the soil and surrounding air. Crop Analytics Control centers collect and process data in real time to drive smarter decisions across the crop lifecycle Watering 70% of fresh water consumption worldwide is driven by agriculture. Smarter decisions about watering = big impact Pictures of fields taken from satellites can be coupled with predictive weather modeling (IBM Deep Thunder) to pinpoint conditions 48 hours in advance and make smarter decisions about watering crops Transportation & Distribution The logistics of transporting harvested food to distribution centers are crucial to avoid waste Goods must be transported at right temperature and kept only as long as needed Enhance with track & trace 30
IBM WATSON and Cognitive Computing IBM s Watson represents a first step into cognitive systems, a new era of computing. Watson builds on the current era of programmatic computing but also differs in significant ways. Natural language processing - to help understand the complexities of Big Data unstructured data which makes up as much as 90% of the data in the world today Hypothesis generation and evaluation - by applying advanced analytics to weight and evaluate a panel of responses based on only relevant evidence Evidence-based learning - to improve based on outcomes to get smarter with each iteration and interaction 31
IBM s Project Lucy IBM announced in February 2014 a 10-year, 100 million initiative to bring Watson and other cognitive systems to Africa to address a host of challenges hampering inclusive and sustainable economic development, and spur business opportunities across the African continent 32
Watson & Lucy: Solving Sustainability Challenges IBM researchers in Africa, along with business and academic partners, will use Watson to leverage its cognitive technologies to generate insight from big data and develop solutions relating to: Water and sanitation Agriculture Human mobility Infrastructure Healthcare In addition, to build an ecosystem around Watson, IBM will also establish a new pan-african Center of Excellence for Data-Driven Development (CEDD) Enabling research partners such as universities, development agencies, start-ups and clients in Africa and around the world to participate in this initiative 33
The Latest on Watson IBM Watson Group (January 2014) IBM formed a new business unit focusing on development and research and bringing to market cognitive applications and services: Watson Analytics: delivers visualized Big Data insights based on questions posed in natural language by user. Watson Explorer: helps users uncover and share data-driven insights more easily and enables the faster launch of Big Data initiatives faster. $100 million for venture investments to support IBM s recently launched Watson Developer Cloud The IBM Watson Mobile Developer Challenge (February 2014) A first of its kind, global competition to encourage developers to create mobile consumer and business apps powered by Watson and spread cognitive computing apps into the marketplace 34
A Concluding Question: What would you do with Watson? 35
Wayne Balta Vice President Environmental Affairs & Product Safety IBM Corporation 36