Tidenes mulighet for NCE Smart

Tidenes mulighet for NCE Smart v/ Knut Johansen, styreleder NCE Smart Strömstad 30.-31.5 2013 1

Innhold Innovasjon og vekst hva skjer? Trender / utvikling innenfor Smart Grid / Smart City Trender / utviklingen innenfor IT Satsingsområder i neste periode

Disruptive Innovation Exponential growth Consequences & Opportunities

5 th Avenue New York City, April 15, 1900 A car Source: US National Archives

5 th Avenue New York City, March, 1913 A Horse Source: US National Archives

Disruptive Innovation Disruptive innovation - The process of developing new products or services to replace existing technologies and gain a competitive advantage. 1900 1913 From Horse to Cars during 13 years - There was nothing that horse carriage producers could do - It was a matter of time before car manufactures brought cost down and quality up The car was a Disruptive innovation & technology like PC vs. typewriters, Cell Phone vs. landline. Digital Camera vs. Film(Kodak) etc.

2013 - The Electric Vehicle Lower cost of the fuel or free fuel, 15 20 øre per km Cheaper to maintain 90% fewer moving parts Higher efficiency by as much as 400 to 600 percent over an internal combustion engine Far more powerful than an internal combustion engine No emissions or polluting byproducts because this car gets its power from batteries 15% - 20% efficiency 85% - 95% efficiency

Battery Technology Development Source: Energy Storage Research & Development Overview (DOE)

The Overriding Question When will the mass migration from gasoline cars to Electric Vehicles start?

Exponential Growth Moore s Law (Gordon Moore of Intel): Computing capacity will double every two years Mathematically it is referred to as exponential growth, and it s the reason why the cell phone in your pocket today is a million times cheaper, a million times smaller, and a thousand times more powerful than the $60 million supercomputer of the 1960 s.

Sales of electric drive vehicles in Norway nearly doubled in 2012 «Det er ingen tvil om at bilindustrien vil endres. Vi går fra forbrenningsmotorer til noe annet, det er kun et spørsmål om tid. Vi dekker alt, og skal være der når skiftet skjer» Jacek Gorski til DN.no. sjef for Nissan i Norden Source: Grønn Bil

U.S. sales of electric drive vehicles tripled in 2012 PEV sales are growing rapidly with 2012 U.S. sales being over 50,000 vehicles, three times the 2011 sales. Popular plug-in hybrid vehicle models are outselling more than half of all vehicle models available for sale in the U.S. Fifteen new hybrid, plug-in hybrid and all-electric vehicles are expected for production by nine different automakers in model years 2013 and 2014. (Source: HybridCars.com)

Disruptive Challenges for Utilities From Centralized to Distributed

Technology & Trends that will Transform The Power Grid Distributed Generation Millions of Solar and hundred thousands of wind installations (ref. sun city), falling costs of distributed generation Electric Vehicles Mobile consumers and providers of power to the grid Smart Power Electronics Power electronic circuit breakers and devices that enable a smarter network Smart Meters & Sensors Smaller, cheaper and more powerful meter and sensor devices Demand Response Management Peak clipping, valley filling etc. Information & Communication Technology Energy Data deluge BIG DATA Can the Utility Industry Survive the Energy Transition? The utility industry is being disrupted on every side, prompting worries about its stability. A new policy paper from the Edison Electric Institute (EEI), an association of shareholder-owned U.S. electric companies, details the "disruptive challenges" the sector faces.

The Future of the Energy Industry Utilities will face a number of difficulties in upcoming years that will disrupt business processes and create new opportunities, as well as challenge incumbent technology providers and their solutions - Gartner 2013 www.esmartsystems.com

The Change Transforming the energy sector from centralized focused to a distributed and market oriented improve the observability and controllability of the distribution networks, while transforming them into geodesic structures that intersperse a variety of distributed energy resources, some of which are owned and operated by consumers. Consequently, utilities will be forced to establish new business models and enterprise processes that can cope with broader and deeper systems that will run from the utility back office right onto customer premises even into everyday household appliances. Integrating information, operational, communication and consumer technologies will be crucial to establishing and maintaining system stability and resilience. www.esmartsystems.com

New Business The overriding issue: How to use available flexibility to maximize profit by trading in the markets? History New Systems & Technology Future

Lokalt fokus Smart Cities Sentralisering Logistikk separate funksjoner Source: Kent Larson - MIT

Smart Cities - Urban Networks Urban Networks Source: City Science - MIT

Smart City Why? In the future, cities will account for nearly 90% of global population growth, 80% of wealth creation, and 75% of total energy consumption. Developing better strategies for the creation of new cities, is therefore, a global imperative. Source: City Science - MIT

Smart City How? Rather than separate systems by function - water, food, waste, transport, education, energy - we must consider them holistically. Instead of focusing only on access and distribution systems, our cities need dynamic, networked, selfregulating systems that take into account complex interactions. To ensure a sustainable future society, we must deploy emerging technologies to create a system for cities that supports the stability of their government, energy, mobility, work, and public health networks. Source: City Science - MIT

IT & Smart Grid - Two Architectural Components Continuous improvement feedback loop of smart grid activity defined by quicker innovation cycles (data analytics), higher levels of customer centricity (home area networks), flexible utility business models (for example the early design of transactive energy models) and increasingly inward-facing investments due to shorter sales cycles and less reliance on the regulated utility market. Common Components across most major smart grid programs and the enabling platform made up of billions of endpoint devices, communications infrastructure and common efforts to automate and modernize the grid through distribution automation and transmission efficiency initiatives. www.esmartsystems.com

The Four Pillars of the future of IT Cloud - access to relevant information requires access to ubiquitous cloud services where that information is made available Mobility - people are mobile, and they require devices and applications in their hands as opposed to (only) machines tethered to a desk Big Data - Location data (for example, from a device) shapes the enormous amount of potential data into information that is most relevant Social Business - access to social networks implies a personally relevant transactional experience that is integrated into, and initiated from, a social platform (for example, Facebook)

Actionable Information & Operational Intelligence Best sources of Actionable Information have Changed Enterprise Data from CRM, ERP and Legacy systems is no longer where the most valuable information comes from. Consolidation concepts such as Master Data, Enterprise Data warehouses alone cannot provide the information you need Big Data is changing everything The massive increase in available data is powerful, but often unstructured, and changing constantly. Current enterprise architectures have no ability to scale and handle the huge amount of data organizations needs to harness Operational Intelligence A smarter grid is required to address the impacts of new intermittent, less-controllable renewable resources and more fully engaged consumers (now becoming prosumers). This reality will dramatically increase the amount of data available and required for operating the smart grid. Operational intelligence systems are used for near-term decisions where large amount of information is analyzed to deliver real-time analytic results and where actions may be required within minutes, seconds or milliseconds. Operational Intelligence architecture will provide the platform required for the next generation smart grid systems. www.esmartsystems.com

Source: IBM

Big Data & Analytics Big Data Big data is a combination of very high Volume, Variety, Velocity and Veracity and creates an opportunity for organizations to gain competitive advantage in today s digitized marketplace It enables companies to transform the ways they interact with and serve their customers, and allows organizations even entire industries to transform themselves Hadoop Hadoop offers a cost-effective way to process and store massive amounts of data using a scale-out architecture that's built with commodity hardware The primary usage of Hadoop is for processing massive amounts of data in a scalable manner Typical enterprise use cases include business analytics, extraction, transformation and loading (ETL)/data warehousing, log analysis, and Web search engines Source: IBM Source: Microsoft www.esmartsystems.com

Visualization

The Real IT Revolution Starting Now Independent trends ---- are merging into --- The Nexus of Forces Social Media Mobility Cloud Disruptive Innovation the Way Forward For High Value Adding Economy Big Data The Nexus of Forces Source: Gartner 2013 http://www.youtube.com/watch?feature=player_detailpage&v=bysycjenym8#t=305s

The Nexus of the Forces The Nexus of Forces is the convergence and mutual reinforcement of social, mobility, cloud and information patterns that drive new business scenarios Although these forces are innovative and disruptive on their own; together they are revolutionizing business and society, disrupting old business models and creating new leaders The Nexus is the basis of the technology platform of the future Source: Gartner

analysis petabytes Massive Opportunities - Guided By Two Trends The implementation of smart grids The Nexus of the Forces Hadoop query big-data new database data example NoSQL SQL Twitter tools store now compression column-store mobile storage big processing information

Gartner the next generation business systems Organizations are making their business operations more intelligent by integrating analytics, social and mobile technologies into their processes and the applications that enable them The next generation of business processes will have to move beyond cost savings and efficiency, and become more adjustable to changing market and customer dynamics. Tomorrow's business operations will integrate real-time intelligence,. This will require a new approach using IBO (Intelligent business Operations) a style of work in which real-time analytic and decision management technologies are integrated into the transaction-executing and book-keeping operational activities that run a business. Integration of analytics into operational processes which contrasts with past approaches that separated analytical work from transactional work empowers the workforce to make better and faster contextualised decisions in order to guide work toward optimal outcomes.

Strategiske fokusområder i neste periode Internasjonalisering Kapitaltilgang Fokus for klyngens Forretningsutvikling Kompetansetilgang

Internasjonalisering For å øke konkurransekraften er NCE klyngen avhengig av å samarbeide med topp internasjonale aktører og klynger Vi jobber med tre hovedakser: 37 30.05.2013

Internasjonalisering 3 akser Tyskland Bay Area Houston 30.05.2013

Houston 39

Innovation House - Bay Area 40

Hovedfokus neste periode Tyskland Bay Area Houston 30.05.2013

Konklusjon? Oxford Research - Harald Furre: NCE Smart en spirende klynge med muligheter til å ta av Er det noen grunn til å la være? 43 30.05.2013

Coming together is a beginning; keeping together is progress; working together is success. Henry Ford 45

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