RFID & A Smarter Planet Kim Escherich, Executive Innovation Architect, IBM Global Business Services

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1 RFID & A Smarter Planet Kim Escherich, Executive Innovation Architect, IBM Global Business Services 1

2 We are moving into a new scenario where the needs to connect the physical and digital worlds are exponentially increasing 30 billion RFID Tags By 2010, 30 billion RFID tags are embedded into our world and across entire ecosystems. 1 billion camera phones By 2010, there will be more than 1 billion camera phones in existence. 2 billion Internet subscribers There are an estimated 2 billion people on the internet by trillion Connected devices Soon, there will be 1 trillion connected devices in the world, constituting an internet of things. 50 terabytes Image data Agricultural consultancy Lanworth crunches morthan 50 terabytes of satellite images, maps and weather data to make more accurate crop forecasts. 1 petaflop super computers Scientists working to prevent influenza outbreaks, model the viruses with a super-computer operating at one petaflop. INSTRUMENTED Objects gets sensoring abiliy, technology controls awareness of objects INTERCONNECTED Objects are interconnected by networks building Internet of Things INTELLIGENT Ccompetitive power comes from the ability to analyse and understand network of things

3 Every natural system and man-made system is becoming interconnected, instrumented and intelligent. + + NEW INTELLIGENCE SMART WORK GREEN AND BEYOND DYNAMIC INFRASTRUCT URE

4 Innovation We are ushering in a new wave of innovation The Industrial Revolution 1 st Wave Age of Steam and Railways 2 nd Wave Age of Steel, Electricity and Heavy Engineering 3 rd Wave Age of Oil, Cars and Mass Production 4 th Wave Age of IT & Telecom 5 th Wave 6 th Wave Smarter Products Instrumented, interconnected, and intelligent Building blocks for a smarter planet Sustainability *Source: Next Generation Green: Tomorrow s Innovation Green Business Leaders, Business Week, Feb 4, 2008

5 THING RFID Position Sensor What Where GPS Cellular Temperature Humidity When Why Fluid levels EVENT ENVIRONMENT

6 Our planet is a complex, dynamic and highly interrelated $54 Trillion system-of-systems This chart shows systems (not industries ) Education $ 1.36 Tn Communication $ 3.96 Tn Transportation $ 6.95 Tn Electricity $ 2.94 Tn Water $ 0.13 Tn Leisure / Recreation / Clothing $ 7.80 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Healthcare $ 4.27 Tn Infrastructure $ Tn Note: 1. Size of bubbles represents systems economic values 2. Arrows represent the strength of systems interaction Source: IBV analysis based on OECD Finance $ 4.58 Tn Food $ 4.89 Tn Govt. & Safety $ 5.21 Tn 1 Tn Legend for system inputs Same Industry Business Support IT Systems Energy Resources Machinery Materials Trade 6

7 A system-of-systems is defined by a set of characteristics Interrelated Components are interrelated and interconnected through a cause & effect relationship, albeit with some time lags Emergent Dynamic and ever-changing as a result of the evolution of systems and the interactions between them Open Comprises of individual systems that can work independently but are compatible and free to interact with each other Heterogeneous A conceptual whole made up of different systems with varied behaviour, characteristics and intentions 7

8 System-of-Systems Definition: Understanding interrelationships is the necessary basis for optimization System-of-Systems Definition: What are the most significant relationships amongst systems? Global transportation industry segments share, 2006 ILLUSTRATIVE Air Ship Road & Rail Renewables Fossil Fuels Network Management Government Trans Infra Component manufacturers Power Distributor Rails Dealer MRO Services Suppliers OEM Road Air Transportation Infrastructure Customer Industrial Machinery Ship Metals/ Materials Hi Tech Fuel Supply Fuel Station MRO Services Refineries Power Fossil Fuels Renewables Key factors restraining the systems: 1. Fuel wastage 2. Capacity constraints/wastage 3.Pollution & Efficiency Material Flow Information Flow Core value chain participants Primary system interactions Secondary system interaction 8

9 So will the bus be here in time? And, by the way: In a small business district in Los Angeles, driving around for parking in one year generated the equivalent of 38 trips around the world, burned 210,000 litres of fuel, emitted 730 tons of carbon dioxide. Congested roadways cost $78 billion annually in the form of 3.7 billion lost hours and 13 billion litres of wasted fuel.

10 What about my food? AMR Study: Only 46% of contaminated product is found and removed from the marketplace In the U.S., a typical carrot has traveled 2560 kms, a potato 1900 kms, a joint of meat 960 kms. And grocers and consumers throw away $48 billion worth of food every year.

11 RFID & A Smarter Planet What we are seeing today & near future 11

12 TRANSFORMING BUSINESS VIA SENSOR SOLUTIONS Matiq: Employs RFID tags to trace meat and poultry from the farm to store shelves to ensure safety and freshness and provide more transparency to consumers. Honda Italia: Implemented RFID component tracking solution to improve production efficiency and quality. Metro: Using RFID technology throughout its entire supply chain to help them get the merchandise the customers want on the shelves when they want them. Stockholm, Sweden: An intelligent toll system in the city center resulted in 20% less traffic, 40% lower emissions and 40,000 additional users of the public transportation system. Airbus: In a strategic move, RFID is being utilized to automate the tracking of aircraft segments while improving supply chain visibility and reducing costs. Container Centralen: Counterfeit prevention and supply chain visibility in returnable transport item handling in the European Green Sector DHL: Developed and implemented a real-time monitoring system using RFID and sensing technology to monitor temperature sensitive shipments while in transit. Volkswagen: Implemented RFID container tracking system to drive increased efficiency, enhanced visibility and a rapid ROI.

13 Airbus Receiving Process Flow a. Airbus Parts Supplier 1. Tag Parts & Validate Shipment 2. Advance Shipping Notice Transmit ASN Furnishing Hangar Alert if the wrong shipment is delivered or if shipment contains wrong parts 2. Enterprise Server Airbus Parts Warehouse / Inventory Elevator / Lift 5b. Upper Deck 5a. Track Parts Containers Main Deck to Assembly Area KPI Analysis Track Shipment Movement from 4. Receiving to Inventory Alert if parts container is delivered to the wrong place 5b. Lower Deck Floor Deck RFID Readers (Identification Checkpoints): Can be deployed using RFID portals or Mobile RFID Solution Receiving Track Shipments Entering the Warehouse 3. Airbus Assembly / Factory Floor

14 External Integration IBM Global Business Services Smart buildings: A giant opportunity on getting to a more sustainable world Portfolio Estates Mgmt Asset Mgmt Lifecycle Energy Use Passive/Active Building Services Maintenance Occupancy Space Mgmt Tenant Services Help Desk Waste Mgmt Trash/Water/Recycle Compliance Environmental reports Industry Specific Hospital, hotel, etc. Analytics and Optimization Water Smart Meters, Use / Flow Sensing 24/7 Monitoring Condition Monitoring, Parking Lot Utilization Fire Functionality checks, Detector service Energy Smart Meters, Demand response Voice/Video/Data Elevators Maintenance, Performance Access/Security Badge in, Cameras, Integration Perimeter, Doors, Floors, Occupancy Integrated Building & Communications Services HVAC Fans, Variable Air Volume, Air Quality Lighting Occupancy Sensing Weather Current Predictions Emergency Services Alerts, Actions Utilities Demand Mgmt, Cost Control Community Services Transportation, Traffic, Events Commercial Potential Advertisement

15 Intelligent Transport Systems: The most effective short-term way to clean up polluted city air, promote energy efficiency and create more liveable urban centres

16 Hudson River: River and estuary observatory network

17 Deep Thunder local high-resolution short-term forecasts 17

18 Storm Water Intelligent Management Environment for CSO Innovative technologies such as Smart Manhole Covers are used to detect sewer flow levels Wireless network links monitoring devices to central command center High resolution weather and flooding models are used to generate accurate flood maps with specifics on impact areas Data can also drawn from more traditional SCADA/sensors systems. Stormwater Management Command Center Advanced analytics and optimization engines generate recommended actions for flood avoidance Sewer system data can also be linked with asset & workflow tools to manage any specific maintenance requests Search for all assets of the Type natural channel with condition = 3 in this area. Results are highlighted in blue All assets of the same type in this area highlighted in blue Valves, pumps or inflatable dams are controlled dynamically to balance inline sewer storage and avoid potential overflows.

19 IBMWATSO 19

20 20

21

22 Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT 22

23 Tak Kim Escherich IBM Global Business Services twitter.com/kescherich

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