We're going to go ahead and get started we wanted to let everybody have plenty of time to come over from the other session
a fantastic session that Harriet and John Cohn and the folks from Honda
and folks from IDC all just did so I know many of you just come on over
today what we're going to emphasize in the last program that we have is around the
delivery of the Internet of Things and we've taken an approach that's going to be
consistent with the entire show and the entire conference which is a little bit
from me representing IBM but then a lot from clients were gonna have a client
panel we're gonna bring five exciting clients and their respective point of
view up here and they're gonna go through a series of dialogues and
questions that hopefully you'll find enlightening to understand real projects
real things happening real problems real disruption that they're creating in
their industries as they adopt the Internet of Things if you look forward
to what's going on in the world and you think about everything that you deal
with the Internet of Things is here today it's everything that we do and how
we work
simple trivial things have you ever used over if you've used over your
participating in the Internet of Things and if you badge into a building and you
participate in the security settings of how you go to work you participated in
the Internet of Things if you go and you look at how you play in the world
and the things that you do - bicycles to automobiles to things that you might
do with your FitBit or things that you might put on our digital scales that all
put you in touch with not only how you're doing as an individual but it
connects you to the broader world around you and how we work and how we play in
how we live in our home automation it's in a way that we go back and forth to
work or the way that we commute or automobiles it's in the way that we
travel the way that we fly our friends at Airbus for example when they build an
airplane what are they doing the building airplane they take six million
parts from 3000 suppliers
they ship that stuff all around Europe put it together and then they bring it
together in Toulouse in France and they call it an airplane when they're done
six million parts 3,000 suppliers and flies in the sky so as you think about that
the next time you step into an airplane what I want to think about is every one
of those components from those 3,000 suppliers is now getting digitally
enabled somebody's laying that out on an engineering map that is too big to
humanely comprehend in your head around the six thousand parts are six million
parts from the 3,000 suppliers and how that all works and they're laying out
not only one does it need to be changed how do we keep it safe they're laying
out the business aspect of that the same time to learn how to transform how to
cooperate differently and what do you do when you want to change that environment
so the Internet of Things is all around us today it's in everything that we do
it's in all of the different industries that we see IBM tracks eighteen
different industries every one of the industries that we track whether it's
banking or industrial sector businesses such as automotive manufacturing to
businesses such as aerospace to facilities and buildings all of those
industries are rapidly adopting the Internet of Things the time is really
here and now in terms of what different people are doing you saw some of these
stats before the numbers vary a little bit but the message is the same
there are billions of connected devices and I think they said it a million times
in the last session so I'll only say it a couple times but there are billions of
connected devices the big deal to get here is that there's more than the
number of people on the planet of connected devices and if you think about
their several sensors to thousands of center per device it's a fantastic
amount of information that is now available that is now present in the
world that is now connected and communicating and and the information is
now starting to be put to use in why do you put information to you
you put it to use to make whatever it is that you're manufacturing using or
operating in better in that comes economic impact money moves money moves
because your product becomes popular money moves because your products
cheaper money moves because the way you operate your plant where the way you
generate power for the way that you manufacture or mill something becomes
easier safer maybe even more productive in a way that you do it
estimates trillions trillions and trillions of dollars euros currency on
the move in terms of the impact from the Internet of Things and in this is where
all of our businesses come together all of our businesses come together because
it's no longer satisfactory to be the manufacture of something to be the
bender of metal to be somebody that understands gears and cogs but doesn't
understand what the digital economy and the money that moving is going to do
them at the same time we estimate also that most of these use cases will take
place when businesses work with each other so why will see them at home will
see them around the Fitbit will see them around how you drive your car will be
aware of them when you fly in an airplane you'll be aware of them in
things like a connected dishwasher or connected refrigerator from our friends
at whirlpool you have a tremendous opportunity when you work with other
businesses and and businesses working with businesses around sharing
information around performance enables them to produce and supply and
distribute faster so this whole discussion around the Internet of Things
is really one of being able to take the information and progressive to learn to
apply the technique and the art of cognition to the information in the data
not just to use the data but to put it to use for economic game and then to put
it to use to be able to continuously improve that cognitive capabilities that
comes with it at the same time and for those who want to some of our other
sessions today you saw how we were putting up the Watson API's into our
loyalty platform feedback from many of you in my one-on-one today about how
interesting that was lots of devices lots of money on the move
lots of opportunity in terms of how your business operates in the way that
monetizes itself so why is it here today if you if you look back 10 years ago IBM
started something called smart planet smart planet was the idea that you know
we're gonna step outside of the data center and we're going to wire
everything together and you're going to get more than what you just stop by
efficient use of compute power inside the datacenter and and they were
brilliant use cases that took place when we did that ten years ago but what we
found was that we are a little bit ahead a little bit of a head on the cost curve
so why we did great use cases in places like the city's stock video in lower
Manhattan and many others
what we found was it wasn't ready for widespread adoption so what's changed
what's changed is a fundamental set of alignments it's an alignment of the
stars that enables all of this to come together right now in a start with the
sensors themselves the embedded sensors now are in everything and their chief
will talk a little bit more as we go through the show this session about
worker doing with raspberry Pi talk a little bit about what you can even do
playing in your own home you can get sensors and you can start to hook
yourself up and those sensors come with connectivity 10 years ago wifi and cell
phone capabilities were still expensive nor were they widespread today with
tariff regulations driving telcos to keep all generations of of cell phone
capabilities alive for many many years there's a spectrum of choices that you
can make it different cost point of how to connect your device connectivity is
not present cheap sensors you've got a heap of connectivity so now what you
have and where does a day to go ten years ago we wired it we crawled under
the streets of Stockholm and we pulled cables from the cameras to the data
center
and we directly wired those cameras that were measuring the traffic congestion in
the city of Stockholm to the data center and we did it with wireless how barbaric
right today
you put it up loud up there to get internet access you can talk the date up
there it's not a data storage problem the Internet of Things it's a connect
the data and be able to bring it in continuously because these internet
things devices are in general small and they're they're chirpy they produce a
lot of information but it's not a lot of it but they've gotta get it someplace
they get it up into the cloud the cloud is now there you don't have to pull
cables under the street anymore to make something work so what do you do you've
got sensors connectivity cloud you've got the data sitting there now you can
now attack your existing product lifecycles and you can go after things
that you've known that you wanted to go after four years and you can drive for
efficiency for optimization like nobody's business and the other thing
that's come of age as the age of analytics we used to tell people ten
years ago to tell people the I T data center reduced the amount of data you
have please get it down reduce it we want you to reduce your data use
analytics reduce your data with the unit of things you actually want more data
you want to combine it together you want to bring in weather information with the
machine data if it sits outside and you won't understand what temperature
variation does to the performance of the machine you want to watch that
continuously look for patterns wanna learn about what you can do with the
Internet of Things compared to all the other information that's out there so
we're in this world now we're bringing together more data and that's why this
is a perfect storm it's those five elements coming together today that
bring the perfect storm of the inner things and what do they let you do they
let you do three things things that you do three things when you bring those
together you can improve
your costs improve your operations you already know how to operate you already
know how to build things are you how to run your sleep you know how to produce
electricity but with the connectivity in the real-time nature of what you've got
you now can go directly at it you can decide whether to roll a truck or not
you can decide what parts go on that truck you can learn about what your
suppliers are bringing to you and push into the supply chain you can learn what
your distribution chain is doing when you ship and you can push into the
distribution chain and you can create new products and new business models and
you are a rotational warranty right
the day is coming the day is coming
whereas a car owners manual cars right audience participation here we go right
so you know in a car
the day's coming where you're going to get a knock on your door right hi I'm
here from the car that you own great what can I do for you
well you know we noticed that you drive a little quick off the line but we
notice that you get to zero to 60 pretty fast we also noticed there's a lot of
brake dust on your tires we also noticed that you don't start breaking into about
50 sheet before the stop sign mister o'connor if you're willing to change
those habits will give you more warranty months of warranty on your car so far as
I'm gonna sit there and say sure I'll be happy to do that we'll be watching the
world that's come around that's the world that's happening between
businesses today already business-to-business contractor getting
written around s LA's and performance of services
and how those contracts get portrayed back into the business and business
effectiveness the last they know what happened is that you will be in touch
with your customers that maybe you've never talked to before companies are
traditionally have made things out of metal and out of parts and out of Bolton
out of cogs will now have digital input from help people are actually using them
and they'll be able to see what the client is doing for the first time for
the first time they'll be able to understand directly but nobody in the
middle
how's my client using the product how do I take that information
plug it into my engineering lifecycle and change how I make things today how
do I take what I see and change it into how I operate profitably as well
fundamental disruption taking place what I am doing about this how do we how to
attack this problem on the left side you've got the data and on the right
side you've got business transformation in the middle
we're bringing you three essential elements in terms of how the portfolios
delivered to you and hopefully at the conference will get the opportunity to
explore them first we bring you a platform to platform is based on our
cloud parameters it's based on our cloud environment found in forty four data
centers around the world combined with the blue makes programming capabilities
open standards-based program attics reorient the platform today we do four
things been able to connect manage the information
cognitively process the analytics and do it with security risk avoidance in terms
of the way that information is collected so that's getting the information in
organizing it and getting your first year of economic gain by being able to
swallow the information and make it available
the second thing that we do is we offer packaged applications
many of you in the audience know these packages applications by names like
maximo and try Riga and continuous engineering indoors these applications
get applied not only in the traditional way that you may be using them today
day but they're now getting hooked up to the platform and if you look under the
covers of the recent product enhancements that all the products are
being able to run on the cloud as well as connect to the data coming off of the
cloud platform so this is key key you can now bring the information in you can
organize it you can bring it up into the application context and then the last
thing that we do it for specific industries were going straight after
solutions new products IOT for automotive design for somebody that
wants to run a fleet of something and be able to understand the driver profile
habits and be the best influence them I O T for electronic for somebody that
makes a lot of something from electronic component point of view that wants to
collect information from around the world and how to reduce and manage that
information
other products such as I T for retail people that have retail distribution
chains IOT for insurance for people that are looking to use the connectivity of
devices to drive insurance life cycles all of these are solutions that you'll
see here and you'll see out of the trade show at the same time being available
for us to use