© 2010 ibm corporation ibm industry frameworks building smart solutions ljubljana, february 10,...

© 2010 IBM Corporation

IBM Industry FrameworksBuilding Smart Solutions

Ljubljana, February 10, 2010

Alexander KnaaniIndustry Business Value Assessment LeaderIBM Software Group, CEEMEA

© 2010 IBM Corporation2

The world is flatter.The world is smaller.The world is about to get smarter.

Because it can.Because it must.

Because we want it to.

Introducing Smart Planet …

“Every human being, company, organization, city, nation, natural system,

and man-made system is becoming interconnected, instrumented, and intelligent.

This is leading to new savings and efficiency—but perhaps as important,

new possibilities for progress


The vision in detail…

Smart PlanetSmart is a vision of how the world works — how every person, business, organization, government, natural system, and man-made system interacts.

Each interaction represents a chance to do something better, more efficiently, more productively.

But more than that, as the systems of the planet become smart, we have a chance to open up meaningful new possibilities for progress.


Industry Solutions are a Reflection of IBM’s Expertise on how to develop smarter solutions

Marketplace Drivers: Customers are looking for their business commitments to be met at

market speed, or better

Managing project costs into bite-sized bits is now a requirement

Customers want to utilize the technology that best supports their strategy, independent of vendor

Our Strategy: Combine industry assets and best practices into

offerings focused on core and connected business problems

Design for re-use

Incubate an ecosystem of industry ISVs, pre-integrate

Be prescriptive about a platform, emphasize best practices, better utilize our industry expertise


Dynamic Infrastructure

Industry Enterprise Solution

Industry SolutionCustomer Blueprint

Industry Framework

SOA Foundation

IOD

Smarter

IBM’s five SWG brands including Service Oriented Architecture and Information On Demand

The SOA Foundation and IOD products combined with industry specific assets configured according to an Industry reference architecture to support common business patterns.

The Framework combined with implementation and subject matter expertise to design a customer specific solution which provides business value.

The Industry Solution Customer Blueprint once it is implemented across the enterprise enables the realization of the expected business benefits.

The IBM INDUSTRY Solution Frameworks are the strategic platformsfor Solutions

Banking Govt Comms Industrial

IBM STG High Performing computer capabilities


Benefits of a framework approach

Speed…of implementation with repeatable architectural patterns and accelerators

Flexibility…to progressively transform to a simplified architecture one project at a time

Choice…of how to get started and who to partner with for business capabilities

Cost Reduction…through re-use of services and assets and through faster implementation

Alignment…of business and IT priorities for more effective results from solution implementation

Business Processes

BusinessArchitecture

Technology Architecture & Infrastructure

7©2010 IBM Corporation

Intelligent software is critical to enabling smarter solutions

Software is helping to:

• Consume exploding volumes of data

• Achieve an information advantage

• Drive on-going product innovation

• Serve new global markets

• Deliver a more energy efficient world

Software is increasingly viewed as a strategic business asset:

• Leaders are deploying intelligent software, systems and products

• Success depends on the ability to accelerate innovation and enable change by managing software delivery effectively


IBM is working across the industries to make our Planet Smarter

Smarter Healthcare Smarter Banking Smarter Traffic Smarter Food

Smarter Retail Smarter Grids Smarter Communications

Smarter Oil & Gas Smarter Buildings Smarter Cities Smarter Public Safety

Smarter Water






Smarter Water


Forces Driving Industry-Wide Transformation in Healthcare are Leading to Business and IT Innovation

10 04/18/23

Increasing Economic Pressure on Healthcare

Adoption of New

Business and IT Models

Market Forces /

Change Agents

Emergence of New Technologies

Globalization

Consumerism

Aging / Chronic Illness

Expensive New Treatments

• Standards Adoption

• Changing Business Models

• Value of IT

Business & IT

Innovation

Price Inflation

Health Premium Increase

Rising National Health Expenditure

Growing New Drug R&D Cost

Stagnating GDP Growth


Five market forces make healthcare different from the past:

Global financial competition will limit government & employer spending on healthcare

Healthcare delivery is shifting from local to regional, national & global settings

• Consumers are becoming more demanding as they bear greater financial burden & are more knowledgeable about the risks posed by healthcare

There are now more people 60 years or older than 4 years or younger

Overweight individuals now outnumber those who are underweight

Chronic diseases account for 60% of deaths globally, consume 75% of resources in developed countries & are becoming more prevalent

Infectious diseases have re-emerged & often in drug-resistant forms

Medical technologies (e.g. genomics & regenerative medicine) will revolutionize risk assessment, diagnosis, & treatments

Advanced IT will be required to take advantage of the new medical technologies


Counterbalancing change are inhibitors that threaten to maintain the healthcare status quo

Adequate funding Prioritized & spent well

• How much healthcare is a societal right?

• What are reasonable lifestyle expectations?

• What are acceptable behaviors?

• What are acceptable attitudes toward privacy?

Financial Service Quality Clinical Outcomes

Governments aren’t addressing the tough challenges Consumers are reluctant to adopt healthy lifestyles Payers are unwilling to accept short-term cost increases to

avoid higher future costs

More digital healthcare data in the last 3 years than in the previous 40,000

IT infrastructure & processes are “stove-piped” Lack of widely accepted, robust & specific data standards


Personalized Health Care

Translational Medicine

Health Care Today Digital Imaging

Episodic Treatment Electronic Health Records Artificial Expert Systems

Clinical Genomics

Genetic Predisposition Testing

Molecular Medicine

Computer Aided Diagnosis

Pre-symptomatic Treatment

Lifetime Treatment

Evolutionary Practices

Rev

olu

tio

nar

y T

ech

no

log

y Automated Systems

Non-specific (Treat Symptoms)

Information Correlation

1st Generation Diagnosis

Organized(Error Reduction)

Personalized(Disease Prevention)

Th

rou

gh

pu

t A

nal

ytic

s

Data and Systems Integration

As we evolve towards Personalized healthcare…

Volume

Complexity


…healthcare delivery continues to change rapidly:

Cost spiral

Productivity limits

Quality of care

Complex diseases/treatments

Entry and exit block

Supply chain complexity

Regulations

Issues forcing change:Issues forcing change:Sorrel & Josie King

-Preventing

Medical Errors


On-going Hospital transformation is critical for survival: Economic realities remain: fold, acquire/merge, or specialize Quality/cost of service delivery is becoming known and critical for patients Role & Viability as a Healthcare Provider in a networked world is changing

FROM

Specialized Silos

Fee Entitlement

Facility

System Focused

Stand-alone

Administrator

Instinct Based

TO

Integrated Patient Focus

Outcome Based Fees

Services Facilitator

Patient Focused

Collaborative

Value Provider

Knowledge Based

And in response – Hospitals are transforming:


Radiologist

Pediatrician

Unit Nurses

Health Plan

Surgeon

Multichannel accessMultichannel access

Healthcare Provider infrastructures require flexibility and interaction across many boundaries


With this need for care flexibility comes a need for IT flexibility

Rigid and disparate healthcare IT applications limit flexibility

Provide new and innovative delivery services

Standardize, automate and integrate processes

Extend without replacing existing legacy systems

Scale cost-effectively

Flexibility meansFlexibility means


IBM’s Health Integration Framework provides this IT flexibility

18 04/18/23

IBM Health Integration Framework

Healthcare and Life Sciences Extensions

Key Software Group Products

Data and Process Models

Interfaces and Adapters

Tools

Portals and Portlets

Information Management Lotus Rational Tivoli WebSphere

IBM Services Assets and Delivery

IBM Solutions

Healthcare Payer

Core Systems Modernization

Healthcare Provider

Health Analytics

Life Sciences

Regulatory Compliance

Business Partner Solutions

Healthcare Payer

Claims Adjudication

Healthcare Provider

Clinical Information

Systems

Life Sciences

Drug Discovery Optimization

ISV Ecosystem

healthcare provider, payer and life science solutions

Reference Architectures

Initial focus on healthcare

provider and payer segments


• Provider and Payer AnalyticsThe aggregation and analysis of information across a healthcare enterprise, to improve clinical, financial or administrative outcomes and results.

• Patient and Clinician e-ViewsUsing a portal-based user interface for the aggregation of information across a healthcare enterprise, provider or payer, to create custom views depending on role and providing new services.

• Integrating the Healthcare Enterprise (HL7 ESB)The integration, exchange, and sharing of information across a healthcare organization. This can involve the integration of multiple systems within a single hospital, or within an integrated delivery network.

• Health Information Exchange (HIE)The exchange, sharing and usage of information across multiple healthcare organizations, region, or community of interest.

19 04/18/23

Solution areas addressed by IBM’s Health Integration Framework


Solution: Created a single patient record aggregating data from various software applications/platforms within the healthcare system (test results, x-ray images, patient scheduling, pharmacology systems)

Results: Reduced wait times, Increased patient-touch, Reduced back office burden

Implementation Details: WebSphere Message Broker, WebSphere MQ, WebSphere Portal Server, DB2, Tivoli Identity Manager

Case Study: Industry Standards & SOA Based Data SharingTrillium Health Centre – Toronto Canada

Business Challenge: Iintegrate all of Trillium’s patient information so health care professionals can get a complete, up-to-date picture of each patient from a single record, enabling improved patient care.






Smarter Water


$1,264 trillionThe value of global assets3 will quadruple by 2025 – calling on a vibrant global financial system to intermediate and manage.

Half the world is unbanked. Just over half of world’s adult population do not use formal financial services to save or borrow.2

2.5 billionGrowth in world GDP1 from 2010 thru 2025 will put the current crisis in context.

5.8% CAGR

1 - Nominal 2 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf 3 - Assets = deposits, equity and fixed income

Reasons to be optimisticThere is an extraordinary opportunity !


• A global system moves more than $74T of money each day

• A financial supply chain that is massively interconnected and interdependent

• Public and private partnerships are suboptimal cross-border and within borders

• System requires 24/7 continuous flow of information

• Rapid increase in types of data entering financial system from “real economy” digitization

• A criminal element that grows more sophisticated

• In total the system intermediates the needs of billions of people in 190 countries in thousands of languages.

An adaptive system evolving organically

Dramatic forces changing the world’s most complex system.

Policy makers

Regulators Supervisors

Financialinstitutions

Compliance

Laws andrules

Surveillance and monitoring

Standards

SoundnessStability


Develop enterprise wide capabilities to enable informed judgment, client- centricity and profitable growth

Achieve compliance objectives while mitigating operational risk, fighting crime and optimizing financial returns

Drive a simplified and streamlined agile enterprise that balances growth, efficiency and business resiliency

Integrate risk management

Develop new intelligence

Rethink the business model

Growth requires smart institutions to think and act in new ways


Streamlined payments:

The bank streamlined operations to achieve a 90% reduction in manual touch points in the check-clearing process—cutting processing errors and required remediation.

90% reduction in manual process

Case studies - leading banks are responding with smarter solutions

200+ million customer records consolidatedCustomer data integration:Major Global Bank

The bank unified 200+ million customer records across all consumer lines including retail banking, cards and insurance, and increased its ability to up-sell products to existing customers.

Risk management:

The bank expanded the names checked on its anti-money laundering watch lists from 2,500 to more than 40,000 and reduced the number of false negatives and positives by 75 percent.

75% reduction in false results

> IBM builds repeatable technology patterns into solutions to make them smarter


Smarter banking solutions have a common set of attributes

INTERCONNECTED INTELLIGENT

Financial products are decomposed and managed at the atomic level, allowing the participants to measure, control, sense and respond quickly and precisely based on a “single source of truth.”

A smart bank is built on systems that advance processing to better automate transactions with counterparties, partners and suppliers to enable innovation across the value chain.

A smart bank enables the rapid, intelligent analysis of a vast mix of structured and unstructured data to improve insight, enable informed judgment and fight abuse.

INSTRUMENTED

+ =+

SMARTER BANKING

A smart bank anticipates client needs and delivers innovative products more quickly and consistently than the competition. It can respond nimbly to changes in market conditions.


IBM provides a comprehensive Banking Framework that accelerates solution deployment

The framework provides a banking-specific software platform with…

• Banking extensions and pre-built solution accelerators to speed deployment

• Best practices and business- specific usage patterns to lower risk

• Support for adoption of open and industry standards

• A choice of business applications from IBM business partners

• An approach to align technology with business needsThe framework gives you speed, flexibility

and choice in deploying solutions while reducing cost and risk!

Integrated RiskManagement

Customer

Care and Insight

IntegrationOptimization

AnalyticsCollaboration

SecurityResiliency

Core Banking Transformation

Paymentsand

Securities


The framework enables integration of information and processes across the bank

Build in greater efficiencies, improved customer service and reduced data requirements

Front OfficeOpen Account

Back OfficeVerify

PaymentsBack OfficeMonitor Potential Fraud

Front OfficeOriginate Loan

Example


Solution areas addressed by IBM’s Banking Framework

Core banking transformationAllows you to modernize and renovate the legacy applications that support core banking functions while aligning with the changing needs of the business

Payments and securities Helps you progressively transform your payments operations to become more flexible and efficient

Integrated risk management Supports taking a holistic approach to managing financial risk, financial crimes, operational and IT risk, and compliance

Customer care and insight Helps you build a foundation for creating a single view of the customer and enabling more effective and efficient sales and service


Case Study: DnB NOR implements a streamlined SEPA compliant payments infrastructure

Smarter Business Outcomes• Ability to accommodate payments network / gateway changes without costly

changes to back-end applications• Enhanced monitoring of payments processes• Transparent payments rules that business users can comprehend; rules can be

changed in hours or days vs. weeks or months

Client Challenges• The bank needed a payments

message hub that could send and receive SEPA Credit Transfers from the European Bankers Association

Solution• Implemented a payments

mediation, monitoring and management infrastructure across the DnB NOR SEPA payments business


Case study - a major multi-national bank created a roadmap – building on project successes

2005-2006Launched enterprise customer hub initiatives in North America, Europe & UK

2006-2007Began paper-elimination projects to improve customer service, mitigate risks & lower costs

2009-2010New focus on data quality to improve risk management, anticipate increased regulations and lower costs

Saved tens of millions of dollars in recent years

Significantly improved insight into business results from C-level to branch

Managing trusted information as a strategic asset

Saved tens of millions of dollars per year

2007-2008Improve insight into branch and channel performance across many levels of management

Time

Bu

sin

es

s V

alu

e

Information Optimization

Customer Data Integration

Service Process Optimization

Business Insight

Customer centric transformation


Banks can choose from leading business partner applications enabled on IBM’s Banking Framework

…with 35+ IBM business partners in the framework ecosystem

• Proven integration between IBM framework middleware and industry-leading partner applications provides…

- Faster deployment - Easier integration- Lower cost of operations

= validated for solutions that leverage the IBM Banking Industry Framework for payments & securities






Smarter Water


After a century of dominance by voice services, industry executives are seeing a shift in demand to a much broader set of services

Global Telecom Services Revenue Mix : 2007 - 2012

Source: The 2007 IBM Institute for Business Value (IBV) and Economist Intelligence EIU) Telecom Industry Executive Survey (n=252); 2008 CEO Study, IBM

“Our ‘old’ main product (the home telephone line) is literally going away.” CEO, Telecom provider, North America

75%

72%

51%

44%

23%

12%

17%

41%

40%

47%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Broadband access

Voice

Other content andvalue-added services

Video services

Advertising

Major-to-moderate source of revenue Minor source of revenue


Market Forces are Driving the Communications Industry To Seek New Approaches and Business Models

Quickly / cost effectively roll out new products Move to lower-cost IP networks while maintaining

service quality, brand image and profitability

Economic Issues Core product (Voice) is being commoditized Cost / complexity of new services

Widening Field of Competitors New market entrants from other industries Convergence Is spawning “Telemedia” Industry

Subscriber Expectations Demand for multimedia, services and content Quick to abandon underperforming services

Defend Market Share and Grow New Revenues


Improve time to marketAND quality of value added

services

Lower operating coststo drive profitability

Increase retention ANDdrive new revenue

Integrate services ANDconnect with backend support systems

Monitor AND manage servicesand user experience quality

Leverage existingnetwork infrastructure

Deliver converged voice,video AND data services

Communication Companies Must Innovate and Be Agile To Win in the Market


Improve time to marketAND quality of value added

services

Lower operating coststo drive profitability

Increase retention ANDdrive new revenue

Integrate services ANDconnect with backend support systems

Monitor AND manage servicesand user experience quality

Leverage existingnetwork infrastructure

Deliver converged voice,video AND data services

Communication Companies Must Innovate and Be Agile To Win in the Market

Accelerate ServiceInnovation and Delivery

Differentiate the Customer Experience

Evolve to Optimized Operations


2001 – Framework introduction

IBM supports Communication Companies with a Service Provider Delivery Environment (SPDE)

SPDE Evolution (2001 to today)

Network

DeliveryDevicesDevices

SubscriptionServices

Services Brokerage

Provisioned Assets (internal)

Business Applications

Location Services

Commerce

Messaging

User Services

other

Mobile

Broad-Band

Core IP

PSTN

Operations Support & Readiness (CRM)

FulfillmentServices

AssuranceServices

BillingServices

Services

Management

Business Processes and Workflow External

Application Delivery Environment

IntegrationHub

FinancialServices

other

other

UsersUsers

NetworkServices

PresentationServices

Connected (external)Content and Applications

B2BGateway

Early SPDE Solutions

Mobile Data Services Subscriber Management Portal Management eTOM Process Automation

2006 – SPDE 2.0

SOA

SPDE enhanced with:

Service Creation 3GPP IMS Enablers SOA TMF NGOSS

SPDE expanded / enhanced:

Ideation, Service Exposure and Mashups via Web 2.0

Dynamic SOA BPM Media Integration Info Agenda for CSP Service Assurance & Customer

Experience Mgmt Business Intelligence

2008/9 – SPDE 3.0

Security

Business Intelligence

Support Systems DomainService Execution Domain

User Interaction

Service Oriented Architecture

Service CreationDomain

Ideas toDeployment

3rd Party Domain

Network Delivery Domain

Device Domain User interaction

3rd Party Access

Network Abstraction Layer

Information Management

Core BSS & OSS Functions

Billing

Assurance

Fulfillment

Care

Network Access

PersonalizationPortal & Presentation

Device Support

Process Choreographies

Core Runtime Functions

ServiceApplications

Content & Media

Web 2.0

Convergent Services

Service Runtime Support

Security

Business Intelligence

Support Systems DomainService Execution Domain

User Interaction


Service CreationDomain

Ideas toDeployment

3rd Party Domain

Network Delivery Domain

Device Domain User interaction

3rd Party Access

Network Abstraction Layer

Information Management

Core BSS & OSS Functions

Billing

Assurance

Fulfillment

Care

Network Access

PersonalizationPortal & Presentation

Device Support

Process Choreographies

Core Runtime Functions

ServiceApplications

Content & Media

Web 2.0

Convergent Services

Service Runtime Support


IBM is Driving the Continuous Evolution of the SPDE Framework

1999 2000 2001 2002 2003 2004 2005 2006 2007

Start of an Industry focus in Telecom

IBM SDP at European Mobile providerIBM launches SDP at Sprint

Telecom InvestmentsSPDE, Digital Media Framework, SOA, CBM, Carrier Grade Open Framework, TSPM

IP Multimedia Subsystems

IBM Announces IMS Middleware Suite

IBM wins SDP at Bharti

Carrier Grade Open FrameworkIBM SDP at Far EasTone

IBM launches Telecom Industry Partner Network IBM develops SPDE Framework

IBM launches BladeCenter HTEMEA Operator SDP Gateway

IBM opens Telecom Solutions LabsIBM launches BladeCenter T

IBM launches SDP at AT&T

From an initial 6 to more than 2000 partner ISVs

Acquired:MicromuseWebifyFileNetMROISS

Acquired:AscentialTrigoDWLDataPower

End to EndApplication

Platform

PlatformDevelopment

Continuous Innovation

2008

Acquired:VallentPrinceton SoftechDataMirrorSolidDB

Acquired:CognosiLog

IBM Telecom Operations Pack for WebSphere Fabric


Carrier grade virtualized dynamic infrastructure

Service Execution DomainCreation Domain

3rd Party Domain

Network Domain

Device Domain

Network abstraction layer Network support interfaces

User Interaction

Core runtime functionsServices registry

Presence & location

CommerceService

applications

Integrated identities

IBM’s Service Provider Delivery Environment 3.0


Security

XaaS

Content & Media

Web 2.0

Convergent services

Support Systems Domain

Core BSS & OSS functions

Billing

Assurance

Fulfillment

Care

Product management

Service OpsCenter

Service runtime support

Systems management

Subscription & activation

Charging

Device management

NGOSS ContractseTOM SID TAMProcess Choreographies

Development lifecycle

Concept and design

Ideation and collaboration

Development and assembly

Test

Deployment

Marketing

Promotions

Bundles

Automation

Support integration

Analytics

Personalization

Context awareness

Profile based content

Portal & PresentationService accessSelf-care

accessMarket

validation

Informationinfrastructure

WarehouseData models Data lifecycle

Single customer view

Integrated catalog

Content lifecycleContent lifecycle

Business intelligence

Customer segmentation

& profiling

Capacity management

Processes efficiency

Service providers DevelopersContent

providersApplication providers

EnterprisesDevice vendors Advertisers Prosumers

Partner portal

Development and test cloud Enablers exposure Rich media content Enrollment Revenue sharing SLA reporting

Server access Client centric applications

Device support

Scalable real-time data

Capacity automation

Professional userConsumer Machine


Accelerate Service Innovation & Delivery

Service Innovation Ideation and rapid refinement of new services

Service Design/Creation Rapid creation of revenue generating services

Service Execution Assemble and deliver value added services quickly

Service Exposure Provide reliable, controlled, third party access to core network resources

Evolve to Optimized Operations

Dynamic Process Integration Streamline integration of OSS/BSS processes

Information Management Optimize business and operational information

Differentiate the Customer Experience

Service Management Provide end-to-end service quality to ensure customer satisfaction

Solutions areas addressed by the SPDE Framework Improve time-to-market, offer new services and reduce costs


Solution Bharti Airtel entered into a 10-year agreement

with IBM to transform its processes and take on the management of its IT infrastructure

IBM Service Provider Delivery Environment

Service Delivery Platform providing Content Services, Messaging and Partner Enablement

Mobile Portal for user interface: 1.2M unique users per day 200 portal views per second 11k concurrent users

Business ChallengeBharti needed:

• A business-driven framework for integration allowing it to implement and deliver new services rapidly

The ability to scale the business to support massive growth

2004: 4M subscribers 2008: 80M subscriber2012: 200M subscribers

Improve customer experience when shopping for content

Benefits First to offer integrated services in India Over 1000 companies from India and abroad to partner with Bharti using their SDP by 2010 The time to market for new service is reduced significantly — by up to 90% Activation time for new mobile accounts has been reduced from 20 minutes to 2 minutes The SDP helps uniquely channel advertisements to Bharti’s 80 million subscribers

Case Study: Lifestyle Enabler – Creating a community around services Bharti Airtel


IBM is Running the World’s Largest Communication Service Providers

Selected by over 1000 Communications Service Providers (CSPs) Worldwide

World’s 10 largest CSPs have implemented an IBM SOA solution

IBM Rational is used by 20 of the top 22 CSPs as listed in the Fortune 500

7 of the top 10 global CSPs are WebSphere Portal customers

World’s top 20 CSPs have selected Tivoli Netcool to manage their networks






Smarter Water


Intelligent Transportation SystemsMeasure & improve transportation usage

Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Reduce energy usage Improve environment

Intelligent Utility NetworksMeasure & improve energy mgmt

Improve efficiency usage Reduce outages Improved grid management Mange distributed energy

Energy Efficient Technologies & ServicesCreate &manage efficient IT

Active energy management IT facilities infrastructure

efficiency IT operations efficiency Monitoring and verification of

efficiency goals Demand-side efficiency

Carbon ManagementMeasure & reduce carbon emissions

Carbon Mgmt Strategy Carbon Mgmt Intelligence Supply chain management Property, buildings, workplace Advanced Water Management

Measure and manage water systems usage and quality with real-time knowledge

Weather event mgmt; flood management Real-time monitoring and analytics for water usage

and water quality

IBM is applying innovative information technology and services that really matter to businesses, governments and people


Intelligent Transportation SystemsMeasure & improve transportation usage

Reduce traffic congestion Reduce CO2 emissions Increase mass transit usage Reduce energy usage Improve environment

Intelligent Utility NetworksMeasure & improve energy mgmt

Improve efficiency usage Reduce outages Improved grid management Mange distributed energy

Energy Efficient Technologies & ServicesCreate &manage efficient IT

Active energy management IT facilities infrastructure

efficiency IT operations efficiency Monitoring and verification of

efficiency goals Demand-side efficiency

Carbon ManagementMeasure & reduce carbon emissions

Carbon Mgmt Strategy Carbon Mgmt Intelligence Supply chain management Property, buildings, workplace Advanced Water Management

Measure and manage water systems usage and quality with real-time knowledge

Weather event mgmt; flood management Real-time monitoring and analytics for water usage

and water quality

IBM is applying innovative information technology and services that really matter to businesses, governments and peopleIntelligent Utility Networks are critical to IBM’s Energy and Environment Initiative


Market Forces Driving Utilities Companies to Seek New Approaches and Business Models

Expectations of Financials Markets

Regulatory & Policy Changes

TechnologicalAdvancements

Customer Expectations

Aging Assets & Workforce Dynamics

Volatile Energy / Fuel Costs

Security

Environment & Climate


Medium Volta

ge Line

Comm node

Comm node

Meter Cell relay

COMM

UNICATIO

NS

LINK

Utility

IBM

IBM

IBM

IBM

IBM

IBM

Digitization of “World’s Largest Machine”

Market forces are moving us to become a smarter utility a 21st Century Grid

Rich source of information

Exchanging information across the enterprise & with customers

Advanced tools to create value from information

Expanding Virally …

Billions of linked devices

Highly complex energy flows

Highly complex information flows

Elevated role of consumer

Moving even faster than forecasted


Solutions for the Energy & Utility Industry are supported by IBM’s SAFE (Solution Architecture For Energy Utilities) Framework

Customer OperationsTransmission and Distribution

Generation

Third Party Domain

SAFE Framework

Customer Care

Customer Care

Intelligent Utility NetworkIntelligent Utility Network

Business Domains

Enterprise Asset Mgmt

Enterprise Asset Mgmt

Advanced Meter Mgmt

Advanced Meter Mgmt

Network Automation

and Analytics

Network Automation

and Analytics

Shared Services and Governance

Infrastructure: Servers, storage, and associated services

Customer Mgmt

Customer Mgmt

Customer SystemsCustomer Systems

Plant Operations

Plant Operations

Fleet MgmtFleet Mgmt

Supply Expansion

Supply Expansion


Solution areas addressed by the SAFE Framework

Manage and maintain utility assets Manage every aspect of each asset’s life cycle including acquisition, compatible unit estimating, work management, inventory control, purchasing, preventive maintenance, safety and disposal

Enable business process orchestrationSupport new business processes that cross domains.Identify and optimize bottlenecks in your business processes

Improve service management of assetsEnhance the value of the outage and distribution management systemsGain insight into quality of power delivered to customersFacilitate predictive maintenance through better information

Perform regulatory, risk, and compliance managementManage a broad and diverse set of regulatory documents in the enterprise

Monitor and log access and changes to critical assets

Leverage data for informed decision makingGain customer insight and improve customer satisfaction

Effectively manage meter data to better understand operations

Manage energy and carbon credit trading activities


Case Study: Unlocking synergy and gaining flexibility through integration

Disparate systems, processes across 200 business units

Critical data difficult to share

Unable to realize underlying synergy from acquisitions

The Business Challenge

Open SOA architecture anchored by IBM WebSphere

IBM Maximo asset and work management platform

IBM DB2 common data repository

Tivoli Industry Solution

Projected US$75M annual savings

Improved decision-making through better access to data

Improved ability to implement best practices across enterprise

Benefits of the Solution

Disparate systems, processes across 200 business units

Critical data difficult to share

Unable to realize underlying synergy from acquisitions

The Business Challenge

Open SOA architecture anchored by IBM WebSphere

IBM Maximo asset and work management platform integrated with SAP

IBM DB2 common data repository

IBM Solution

Projected US$75M annual savings

Improved decision-making through better access to data

Improved ability to implement best practices across enterprise

Benefits of the Solution

“We think IBM products and their integration were keys to our project’s success.”

-- Ron May, Senior VP, DTE Energy

DTE Energy


Case study: Advanced Meter Management Project ASM Brescia (now A2A)

Business Problem Lacked an automated gas and

electricity meter reading process Sending employees out to read

manuals manually resulted in slow revenue collection and opportunity for utility theft

Smarter Business Outcomes Increased service reliability Improved fraud/loss management and

faster revenue collection Improved customer service ASM Brescia is now able to offer highly

customized, flexible commercial service packages and pricing options

Actions Integrated more than 200,000

automated electronic meters in an end-to-end solution that links meters directly to their billing and customer service systems

© 2010 ibm corporation ibm industry frameworks building smart solutions ljubljana, february 10,...

Documents

industry assets

industry expertise slide

industry specific assets

business commitments

ibm corporation3

ibm corporation2

ecosystem of industry

common business patterns