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Let’s Build a
Smarter Planet:
Energy and Utilities–
Empowering the Consumer




                                                  © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                     The world is smaller and flatter.




2                                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


The reality of living in a globally integrated world is upon us.



    Global financial crisis has had lasting impacts on the overall market.
    Volatility in price and demand for energy worldwide.
    Growing concern about the effects of climate change.
    Increasingly empowered and interconnected consumers.




The world is connected:
economically, socially and technically.




3                                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


The need for progress is clear.



170 billion                                          36.8%                     1/4


Kilowatt-hours wasted                                Projected growth in       Proportion of worldwide
each year by consumers                               worldwide energy demand   CO2 emissions created
due to insufficient power                            by 2030.                  by power generation, the
usage information.                                                             largest man-made source.




4                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


The opportunity for progress is clear.



$70 billion                                          15%                         14% lower
                                                     reduction in                emissions
                                                     peak loads
The U.S. could save up to                            In the Pacific Northwest    Smart grid technology
$70 billion in infrastructure                        National Laboratory Smart   has the potential to reduce
spending over the next                               Grid project, consumers     the power sector’s CO2
20 years through better                              decreased their overall     emissions 14% by 2020.
management of                                        peak load on the grid by
existing assets.                                     15% when offered the
                                                     opportunity to save an
                                                     average of 10% on their
                                                     electricity bills.




5                                                                                              © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


The way the world works is changing—and leaders must lead
through the unknown.
                                                             CHANGE NEEDED              PAST CHANGE SUCCESS
                                                                        14%                    6%             21%



7 in 10
Utilities CEOs anticipate turbulent
                                                                        17%


                                                                        69%
                                                                                               21%



                                                                                               74%
                                                                                                              24%


change and bold moves.
                                                                                                              55%


                                                                                            19%
19%
Drop in utilities CEOs’ confidence
in their organizations’ ability to
                                                             2008                       2006         2008
manage change.




                                                                   No/limited Change

                                                                   Moderate Change

6       Source: 2008 IBM CEO Study                                 Substantial Change                         © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


For energy and utilities organizations, this means finding a way to
lead in a new environment shaped by three key factors.

CLIMATE CHANGE CONCERNS
As the debate over climate change has become much more public, governments around
the world are responding with new energy policies, programs and legislation. Consumers
are increasingly concerned about the environmental impact of the products they buy,
including energy.

CONSUMER EMPOWERMENT
Newly empowered consumers are leveraging provider choice options, actively managing
their usage, moving toward self-generation of power and making their voices heard
through multiple channels.

TECHNOLOGY INNOVATION
Lower-cost communications, more cost-effective computing and open standards are
strengthening the business case for technology innovation in the energy and utilities
industry. Technologies such as smart meters, network analytics and distributed
generation are changing the way energy is created and delivered.


7       Source: IBM, “Plugging In the Consumer”                                     © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


There is an imperative from governments and consumers alike
for energy and utilities organizations to transform themselves to
ensure environmental responsibility, economic competitiveness
and national security.



                                      By leading innovation throughout the industry,
                                       their positive impact will be felt far beyond.




                                                                   LOCAL AND
                                   ENERGY AND                                  ENVIRONMENT
                                                                    GLOBAL
                                    UTILITIES                                  AND SOCIETY
                                                                   ECONOMIES




8                                                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


This mandate for change is a mandate for smart.




9                                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


To deliver services more responsibly and more efficiently,
energy and utilities organizations are working toward a smarter
energy value chain.


                   TRANSFORMING                                                               EMPOWERING
           THE UTILITY NETWORK                                                                THE CONSUMER
     Transforming the utility network                                                         Empowering consumers
      from a rigid analog system to a                                                         by providing them with near
     dynamic and automated energy                                ENERGY AND
                                                                                              real-time, detailed information
                     delivery system.                             UTILITIES                   about their energy usage.




                                                      ENSURING CLEANER ENERGY
                                                      SUPPLY
                                                      Incorporating renewable energy and
                                                      electric vehicles into the power grid
                                                      and meeting stringent greenhouse gas
                                                      emissions targets while maintaining
10                                                    reliable, cost-effective power supply                         © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                They are doing so by becoming
                          instrumented, interconnected and intelligent.




11                                                                           © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                          INSTRUMENTED
                                                          We now have the ability to measure, sense
                                                          and see the exact condition of everything.

                                                             Today, there are 1 billion transistors for each
                                                             person on the planet.
                                                             In 2010, the number of RFID tags embedded
                                                             into our world and across entire ecosystems is
                                                             estimated to reach 30 billion.
                                                             In 2008, 6.7 million intelligent meters were used
                                                             for advanced metering in the U.S., compared
                                                             to 947,000 in 2006.

                                                          Remote monitoring devices tell when
                                                          and where faults occur and where the
                                                          inefficiencies are, enabling smarter
                                                          sourcing and distribution of power.




12                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                          INTERCONNECTED
                                                          People, systems and objects can
                                                          communicate and interact with each
                                                          other in entirely new ways.

                                                             The Internet of people is 1 billion strong. Almost
                                                             one third of the world’s population will be on the
                                                             web by 2011.
                                                             There are an estimated 4 billion mobile phone
                                                             subscribers worldwide.
                                                             Hybrid car sales in the U.S. market are expected
                                                             to cross the one million mark by 2012.

                                                          Virtual marketplaces between consumers
                                                          and providers allow consumers to trade
                                                          flexibility in usage for lower costs.




13                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                          INTELLIGENT
                                                          We can respond to changes quickly and
                                                          accurately, and get better results by
                                                          predicting and optimizing for future events.

                                                             Every day, 15 petabytes of new information is
                                                             being generated. This is 8 times more than the
                                                             information in all U.S. libraries.
                                                             An average company with 1,000 employees
                                                             spends $5.3 million a year to find information
                                                             stored on its servers.
                                                             If the U.S. grid were just 5% more efficient, the
                                                             energy savings would equate to permanently
                                                             eliminating the emissions from 53 million cars.

                                                          Power grids use sensors, smart meters,
                                                          digital controls and analytic tools to
                                                          automatically monitor and control two-way
                                                          energy flow.

14                                                                                                         © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                   +                         +          =
                   An opportunity for energy and utilities organizations
                             to think and act in new ways.

Incorporate renewable                                Empower consumers and             Transform electric
energy and electric vehicles                         improve satisfaction by           grid and gas and water
into the power grid and                              providing them with near          infrastructures from
meet stringent greenhouse                            real-time, detailed information   rigid, one-way
gas emissions targets while                          about their energy usage.         systems to dynamic,
maintaining a reliable, cost-                                                          automated and reliable
effective power supply.                                                                information networks.



15                                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


IBM’s SAFE Framework enables Energy & Utilities industry solutions.
The Solution Architecture for Energy and Utilities Framework (SAFE) is an innovative software
platform uniquely positioned to provide network visibility and control, process automation and
business collaboration solutions across the energy and utility value chain.


                                                                             Regulatory,
                                                          Asset, Device
                                                                              Risk and
                                                           and Service
                                                                             Compliance
                                                           Monitoring
                                                                             Management



                                                  Improved                                 Informed
                                                                    Integration
                                                  Customer                                 Decision
                                                                   Optimization
                                                 Experience                                 Making
                                                                     Analytics
                                                                   Collaboration
                                                                      Security
                                                                    Resiliency
                                                       Asset                         Business
                                                     Lifecycle                       Process
                                                    Management                      Automation

                                                                     Security
                                                                     Solutions



Key benefits:
  An approach to align technology with utility business needs                Reusable implementation patterns to lower risk
  The ability to build a simplified enterprise architecture—                 Support for the adoption of open and industry standards
  one project at a time                                                      A choice of business applications and services from IBM
  Utility industry best practices and solution accelerators                  and IBM Business Partners
  to speed deployment
16                                                                                                                        © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


Energy and Utilities: Empowering the consumer.




1                                                                        2
        SMART IS                                                             SMART IS
        Providing consumers and businesses                                   Updating and integrating customer
        with tools to proactively analyze and                                systems to support the technology
        manage their energy usage.                                           evolution and new business
                                                                             requirements.




3       SMART IS
        Knowing how to incorporate new
        and localized energy resources
        into the utility network.




17                                                                                                      © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        Customers are demanding the ability to collaborate with utilities
         to create smarter homes and buildings.


90%                                                  100 million                 75%
Of consumer respondents                              Smart meters will be        Of consumers on a
to IBM’s Global Utility                              deployed in the next five   time-of-use pricing
Consumer Survey                                      years, half of which will   pilot in Ontario were
indicated that they would                            have a built-in Home-Area   able to shift their
like a smart meter and                               Network (HAN) gateway       load and save an
tools for managing their                             for in-home energy          average of 3% on
energy usage.                                        management programs         their energy bills.
                                                     and services.




18                                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        Smart is: Providing consumers and businesses with tools to
         proactively analyze and manage their energy usage.




                                                               Communication channels




                Utility                                                                 Consumer




            Usage information
            Energy
            Action                                                     Devices



Utilities are employing smarter technologies and applications to enhance and improve
customer relationships.


19                                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        Smart is: Providing consumers and businesses with tools to
         proactively analyze and manage their energy usage.

How will you do it?
Ensure that usage information is timely and consistent across all customer communication channels. Provide customers
with recommendations for alternate consumption patterns and reward actions that are advantageous to both the utility
and the customer in measurable, transparent and meaningful ways.


  Enable the network                                Gather relevant data                             Collaborate
  Extend utility operations into the home           Gather data from devices and                     Work with customers, incenting them
  by deploying smart meters and enabling            provide information about energy                 to adjust their energy consumption via
  them to communicate with                          consumption patterns.                            time-of-use pricing or voluntary
  other devices.                                                                                     curtailment programs.




                         The benefits:
                         • Increased customer satisfaction                   • Alignment of values between
                                                                               the utility and its customers
                         • New revenue streams through
                           additional products and services                  • Automatic control for convenient
                           and lower costs per customer                        usage adjustments



20                                                                                                                           © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        IBM has partnered with utilities around the world to implement
         innovative solutions.




Energie Baden-Württemberg: Worked with IBM to put                        A centralized energy market operator: Seeking to improve
in place a first-of-a-kind solution that generates and                   the quality of service they could offer, three utility providers
displays the underlying price of electricity as it changes               in one U.S. state wanted to provide energy consumers with
throughout the day. In addition to providing a basis for                 direct access to their consumption metrics. The organizations
changing consumption behavior, it also establishes a                     hoped that by being better informed, consumers would be able
low-cost platform for changing EnBW’s customer-facing                    to act more responsibly when it came to their energy use.
processes like billing.




21                                                                                                                        © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        A centralized energy market operator uses streaming data to
         help consumers make more responsible energy choices.


                                                                             Regulatory,
                                                          Asset, Device
                                                                              Risk and
                                                           and Service
                                                                             Compliance
                                                           Monitoring
                                                                             Management



                                                  Improved                                 Informed
                                                                    Integration
                                                  Customer                                 Decision
                                                                   Optimization
                                                 Experience                                 Making
                                                                     Analytics
                                                                   Collaboration
                                                                      Security
                                                                    Resiliency
                                                       Asset                         Business
                                                     Lifecycle                       Process
                                                    Management                      Automation

                                                                     Security
                                                                     Solutions




Key IBM assets utilized:                                                  Key benefits:
  WebSphere portals and dashboards                                           Provides a common point of information
  Tivoli security solutions                                                  sharing among energy retail companies and
  Business Process Management                                                transmission companies
  Information integration and archiving                                      Supports regulatory requirements and standards


22                                                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




1        These solutions are powered by our unique expertise spanning
         all facets of customer management and operations.




Smart Metering and Beyond:                        Customer Intelligence and Analytics:   Customer Web Portals:
Transforms distributed utility                    Provides fact-based input and          Enables next-generation online
operations by extending operational               customer-oriented methods to drive     capabilities across new business
awareness of consumer demand to                   customer insight across marketing,     processes, customer experience
the end points of the utility network             sales and service.                     and technology innovation.
and into the customer premises.




23                                                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




How will you…
     Provide your customers with the information and tools they need to make informed
     energy decisions?
     Provide incentives to your customers to make informed decisions that can help your
     utility manage the load in a more predictable manner?
     Achieve a reasonable cost-to-serve through consistent approaches to dealing with
     customers across all channels—including contact center, Web, mobile and IHDs?




24                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




2        The deployment of new technologies and shifts in customer
         behavior are demanding transformation on the part of utilities.


4 in 5                                               70%                               $4.2 billion
Consumers would change                               Of the 5,000 respondents          Will be spent in 2013
the times at which they                              in IBM’s 2008 Global Utility      on information and
perform energy-consuming                             Consumer Survey are willing       communications
housework in exchange for                            to experiment with how they       technology for the
savings of 50% or more on                            interact with energy providers.   smart grid in the U.S.
their energy bills.                                                                    and Canada.




25                                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




2        Smart is: Updating and integrating customer systems to support
         the technology evolution and new business requirements.

                             Meter Data
                                                             Customer
                            Management
                                                             Relationship
                                                             Management
              Mobile                                         System
            Workforce




           Load
     Management




             Outage
         Management                                          Customer        Communication       Customer
                                                             Information     channels
                                                             System
                              Geospatial
                             Information
                                 System
                  Data

                  Insight


With customers’ emerging role as both a supplier and consumer of energy, there is a need
for utilities to enhance tools and technologies to better integrate the customers’ participation
in the value chain.
26                                                                                           © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




2        Smart is: Updating and integrating customer systems to support
         the technology evolution and new business requirements.

How will you do it?
Proactively shape the regulatory framework to drive change in an operating scope beyond traditional services. Modernize
customer systems to support new processes and manage larger amounts of data. Provide seamless access to information
through all channels.


 Update customer systems                            Manage data                                       Present usage information
 Adapt to climate-related regulations,              Manage high volumes of data, multiple             Provide customers with information on
 complex rate structures, technology                integration touch points and increased            prices, costs and usage with convenient,
 innovation, increased data volumes                 number of participants requiring                  automated controls and tools to
 and an empowered consumer.                         access to customer data.                          enhance their experience.




                         The benefits:
                         • Leveraged meter data                              • New tools and information
                                                                               availability for customer care agents
                         • Improved billing flexibility and
                           scalability                                       • More accurate billing information




27                                                                                                                            © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




2        IBM is beginning to partner with organizations around the world
         to implement innovative solutions.




A Canadian regulator: Launched a pilot time-of-use                       A U.S. utility: Anticipates lowering its own operating
program that rewards consumers for using less power                      costs while helping its customers lower their energy bills.
during times of shortage or peak demand, leading                         The ability to monitor and change energy use through
participants to shift 25% of their usage away from                       smart grid technology will save customers money and
peak hours.                                                              lower general energy consumption.




28                                                                                                                        © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




2        These solutions are powered by our unique expertise spanning
         all facets of utilities’ customer systems.




Customer Focused Utility:                         Customer Systems Implementation         Customer Systems Management:
Helps utilities understand their                  and Modernization: Focuses on           Provides a managed environment for
customers’ expectations, define                   the componentization, consolidation,    customer systems and their technical
the capabilities needed to satisfy                modernization and replacement           environments, which helps utilities
those expectations, and build those               of legacy and packaged customer         improve service levels and business
customer-related capabilities into                systems, as well as their integration   flexibility while reducing operational
the smart grid transformation plans.              with other applications across          cost, time and risk.
                                                  the enterprise.




29                                                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




How will you…
     Update customer-facing applications (CIS, CRM) to support new rates and manage
     larger amounts of data?
     Maintain the security of sensitive customer data—as well as the information
     that can be derived from it—contained in records generated by smart meters?
     Enroll consumers in demand-response and energy-efficiency programs?




30                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




3        The demand for alternate and renewable sources of energy
         is growing.


20-20-20                                             1 million                       Net-zero
The EU climate package                               The California Solar            A net-zero energy home
sets targets of a 20% cut in                         Initiative authorized the       is capable of producing,
greenhouse gas emissions,                            state to invest $3.2 billion    at minimum, an annual
a 20% increase in the use                            in small-scale solar electric   output of renewable
of renewable energy and                              power systems over eleven       energy that is equal to
a 20% cut in energy                                  years and to establish the      the total amount of its
consumption through                                  statewide goal of building      annual consumed/
improved energy efficiency                           one million solar electric      purchased energy from
by 2020.                                             roofs amounting to 3,000        energy utilities.
                                                     megawatts (MW) of solar
                                                     electric power.




31                                                                                                © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




3        Smart is: Knowing how to incorporate new and localized energy
         resources into the utility network.
                                                                             Energy
                                                              Solar
                                                                             storage




                                                                                                  Wind

                                              Coal                               Energy storage
                                             Hydro              UTILITY          Nuclear
                                              Solar                              Wind

                                                                                                  Energy
                  Solar                                                                           storage




            Energy flow                                     Wind
            Information flow
            Payment/collection flow                                          Plug-in vehicle



Innovative processes and systems enable the utility to incorporate new energy resources
into the grid, to manage and maintain those resources, and to ensure the necessary flow
of information and finances among participants.

32                                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




3        Smart is: Knowing how to incorporate new and localized energy
         resources into the utility network.

How will you do it?
Efficiently scale distributed energy resources by ensuring the safety and reliability of network operations and by
implementing maximum adoption of distributed energy technologies at the lowest cost. Provide fair compensation
and transactional efficiency for customers.


 Provisioning                                       Monitor, maintain, control                       Settlement
 Track the installation of distributed              Continuously assess resource availability,       Securely execute all financial
 resources: where, when and how to                  impending failures, repairs and upgrades.        transactions, including
 incorporate utility operating                      Dispatch the resources based on                  payments and collections.
 practices and models.                              operating needs.




                         The benefits:
                         • Ensure the safe and reliable                      • Ensure efficient transactions—i.e.,
                           operation of the network                            both utilities and consumers are
                                                                               fairly compensated
                         • Provide distributed energy
                           technologies at the lowest cost



33                                                                                                                             © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




3        IBM has partnered with utilities around the world to implement
         innovative solutions.




European Demonstration Project: IBM Global Business                      MVV Energie: Teamed with IBM Global Business Services
Services and IBM Research developed a real-time energy                   and others to create a virtual marketplace that provides
monitoring and management solution that can balance the                  energy companies and customers with real-time energy
charging of vehicles against the availability of wind energy             generation, consumption and availability data. Users can
reserves. Conversely, the solution can draw energy                       employ this solution, which leverages IBM WebSphere MQ
reserves and regulation power back from the cars into the                Telemetry Transport software, to monitor local energy
grid to stabilize energy availability. An advanced modeling              reserves and view current pricing for outside energy sources.
and run-time solution, hosted on IBM BladeCenter servers,
is used to analyze the collected data and host the real-time
analytics and portal software.




34                                                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




3        These solutions are powered by our unique expertise spanning
         all facets of the energy and utilities system.




Electric Vehicles: Visioning and strategy to support the                 Renewable Energy Resources: Visioning, strategy and
various business models which may develop around the                     development of IT and communications infrastructure
supply and demand of electricity with PHEVs and EVs.                     required to integrate distributed energy into the utility network
Development of IT infrastructure and standards required                  and to gain visibility that will enable better management of
to enable the supply and billing of electricity to PHEV and              electricity supply and demand.
EV mobile customers.




35                                                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




How will you…
     Ensure the optimum time to charge and discharge grid-connected batteries
     for frequency control and energy resource?
     Manage network technologies so they become a controllable resource more
     than a customer service?
     Bill for an EV charge in a public space for a driver that does not have an account
     with your utility?
     Manage seamlessly in an environment where there are many different devices
     and companies?




36                                                                                        © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




Why IBM?
Only IBM can provide the unique combination of technology and expertise you need to
ensure reliable, cost-effective and environmentally sound operations across the energy
and utility value chain—from the source, through the grid, to the end consumer.




37                                                                                 © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


Solution Architecture for Energy and Utilities Framework:
Software capabilities.

     Visualize infrastructure availability                                                            Manage large quantities of
      and performance through device,                                                                 utility documents and processes
                                                                             Regulatory,              to comply with government-
       event and usage data, providing                    Asset, Device
                                                                              Risk and
       real-time control and analysis to                   and Service                                mandated regulations.
                                                                             Compliance
               speed time to resolution.                   Monitoring
                                                                             Management
                                                                                                      Use data and information
       Deliver convenient, personalized                                                               aggregated from business and
     customer experiences by enabling             Improved                                 Informed   operation systems to analyze
                                                                    Integration
                                                  Customer                                 Decision
         interactive communication and                             Optimization                       events, develop insights, correlate
                                                 Experience                                 Making
        providing consumers with more                                Analytics                        reactions to change and improve
      control over their energy sources                            Collaboration                      business flexibility and performance.
                             and usage.                               Security
                                                                    Resiliency
                                                       Asset                         Business         Model, manage and optimize
  Track, document and make decisions                 Lifecycle                       Process          business processes resulting in faster
   about the procurement, deployment,               Management                      Automation        time to market, increased customer
  operation, maintenance and disposal                                                                 satisfaction, and higher productivity.
                                                                     Security
    of generation plant, transmission or
                                                                     Solutions
                distribution field assets.
                                                                                                      Comprehensively manage and
                                                                                                      prevent security risk across all
                                                                                                      business domains.




38                                                                                                                       © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


IBM’s Solution Architecture for Energy and Utilities Framework
enables utility companies to start with any solution and build upon
it over time to achieve a simplified, strategic infrastructure.




1      Choose a project
       and implement it
       to achieve
                                             2       Build on the value
                                                     of previous projects,
                                                     reusing assets and
                                                                                3   Achieve a simplified,
                                                                                    strategic infrastructure.

       immediate ROI.                                implementation patterns.




39                                                                                               © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


Energy and Utility companies benefit from added speed, choice
and flexibility, along with lower levels of risk and the support of
a vast IBM Business Partner network.
Speed: Leverage industry best practices, repeatable business patterns and open
standards to implement solutions faster than ever.

Choice: Utilities choose the solutions that provide the most value to them, in the order and
at the pace that makes the most sense.

Flexibility: Techniques built on business process management and service-oriented
architecture means easier deployment and interoperability of solutions.

Lower risk: Incremental projects, each with a defined payback period, are more easily
scoped and implemented—and build on infrastructure deployed in previous phases.

Business Partner network: Pre-validated, powerful applications integrate seamlessly with
IBM SAFE Framework middleware.




40                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


Why must we take action now?



VOLATILE DEMAND AND INCREASING COST
Changing utility business conditions will create new challenges of balancing supply and
demand from both an operational and financial perspective. Current utility infrastructure
will need to be upgraded to address this challenge.

ENVIRONMENTAL CONCERNS
Consumers are increasingly concerned about the environmental impact of the products they
buy, including energy. As a result, they are demanding that utilities provide them with new
sources of energy and more information that will enable them to make smarter decisions.

CONSUMERS DEMAND A DIFFERENT MODEL
Consumers desire more information and reliability when it comes to their energy use and the
system as a whole. Building a smarter infrastructure is a singular way to meet these demands
while stimulating growth in the greater economy.




41                                                                                   © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


How to get started: A five-step roadmap to smart.



         Strategy

1        Shape a sustainable energy and utilities environment wherever you operate.




2
         Prioritization
         Invest in the transformation of your infrastructure.



3
         Integration
         Share data across the value chain to promote smarter consumption.

         Optimization

4        Effectively manage supply and demand.




5
         Discovery
         Identify the next frontier for energy and utilities locally and globally.



42                                                                                    © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


                                                                   We’ve only just begun
                                                                   to uncover what is possible
                                                                   on a smarter planet.
                                                                  The world will continue to become smaller,
                                                                  flatter and smarter. We are moving into the
                                                                  age of the globally integrated and intelligent
                                                                  economy, society and planet.

                                                                  There’s no better time to start building smarter
                                                                  energy and utilities organizations—focused on
                                                                  providing energy responsibly to empowered
                                                                  consumers. And there’s no better time to invest
                                                                  in creating the kind of society we all desire.

                                                                  Let’s work together to drive real
                                                                  progress in our world.



43                                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                             APPENDIX




44                                                                           © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


Where is IBM applying its expertise today?



WE ARE…             Developing smart energy grids around the world.
                    Helping retailers track products from the supplier to the store shelf.
                    Implementing intelligent traffic systems to increase efficiency and reduce
                    environmental impact.
                    Engineering more resilient and adaptable strains of rice.
                    Providing crime fighters with instant mobile access to mountains
                    of pertinent data.




45                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer


To empower consumers, smart energy and utilities organizations
are working to…



      DRIVE COLLABORATION                                                                INTEGRATE THE CUSTOMER
             AND SHARE DATA                                                              INTO THE VALUE CHAIN
  Engage and enable customers to                                                         Reshape services and processes,
   make more informed decisions,                                                         and ensure continuous access to
    and reward them for doing so.                               EMPOWERING               information.
                                                                    THE
                                                                 CONSUMER




                                                      MEET DEMAND FOR ALTERNATE
                                                      ENERGY SOURCES
                                                      Improve energy efficiency while
                                                      mitigating environmental impact.


46                                                                                                          © 2010 IBM Corporation
Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer




                                                   +                         +           =
                   An opportunity for energy and utilities organizations
                             to think and act in new ways.

                 Drive collaboration                    Integrate the customer into   Meet demand for
                 and share data.                        the value chain.              alternate energy
                                                                                      sources.




47                                                                                                   © 2010 IBM Corporation

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Empowering the Consumer in a Globally Integrated World

  • 1. <%savo.user.displayname%> - <%savo.user.title%> <%Date%> Let’s Build a Smarter Planet: Energy and Utilities– Empowering the Consumer © 2010 IBM Corporation
  • 2. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer The world is smaller and flatter. 2 © 2010 IBM Corporation
  • 3. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer The reality of living in a globally integrated world is upon us. Global financial crisis has had lasting impacts on the overall market. Volatility in price and demand for energy worldwide. Growing concern about the effects of climate change. Increasingly empowered and interconnected consumers. The world is connected: economically, socially and technically. 3 © 2010 IBM Corporation
  • 4. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer The need for progress is clear. 170 billion 36.8% 1/4 Kilowatt-hours wasted Projected growth in Proportion of worldwide each year by consumers worldwide energy demand CO2 emissions created due to insufficient power by 2030. by power generation, the usage information. largest man-made source. 4 © 2010 IBM Corporation
  • 5. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer The opportunity for progress is clear. $70 billion 15% 14% lower reduction in emissions peak loads The U.S. could save up to In the Pacific Northwest Smart grid technology $70 billion in infrastructure National Laboratory Smart has the potential to reduce spending over the next Grid project, consumers the power sector’s CO2 20 years through better decreased their overall emissions 14% by 2020. management of peak load on the grid by existing assets. 15% when offered the opportunity to save an average of 10% on their electricity bills. 5 © 2010 IBM Corporation
  • 6. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer The way the world works is changing—and leaders must lead through the unknown. CHANGE NEEDED PAST CHANGE SUCCESS 14% 6% 21% 7 in 10 Utilities CEOs anticipate turbulent 17% 69% 21% 74% 24% change and bold moves. 55% 19% 19% Drop in utilities CEOs’ confidence in their organizations’ ability to 2008 2006 2008 manage change. No/limited Change Moderate Change 6 Source: 2008 IBM CEO Study Substantial Change © 2010 IBM Corporation
  • 7. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer For energy and utilities organizations, this means finding a way to lead in a new environment shaped by three key factors. CLIMATE CHANGE CONCERNS As the debate over climate change has become much more public, governments around the world are responding with new energy policies, programs and legislation. Consumers are increasingly concerned about the environmental impact of the products they buy, including energy. CONSUMER EMPOWERMENT Newly empowered consumers are leveraging provider choice options, actively managing their usage, moving toward self-generation of power and making their voices heard through multiple channels. TECHNOLOGY INNOVATION Lower-cost communications, more cost-effective computing and open standards are strengthening the business case for technology innovation in the energy and utilities industry. Technologies such as smart meters, network analytics and distributed generation are changing the way energy is created and delivered. 7 Source: IBM, “Plugging In the Consumer” © 2010 IBM Corporation
  • 8. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer There is an imperative from governments and consumers alike for energy and utilities organizations to transform themselves to ensure environmental responsibility, economic competitiveness and national security. By leading innovation throughout the industry, their positive impact will be felt far beyond. LOCAL AND ENERGY AND ENVIRONMENT GLOBAL UTILITIES AND SOCIETY ECONOMIES 8 © 2010 IBM Corporation
  • 9. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer This mandate for change is a mandate for smart. 9 © 2010 IBM Corporation
  • 10. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer To deliver services more responsibly and more efficiently, energy and utilities organizations are working toward a smarter energy value chain. TRANSFORMING EMPOWERING THE UTILITY NETWORK THE CONSUMER Transforming the utility network Empowering consumers from a rigid analog system to a by providing them with near dynamic and automated energy ENERGY AND real-time, detailed information delivery system. UTILITIES about their energy usage. ENSURING CLEANER ENERGY SUPPLY Incorporating renewable energy and electric vehicles into the power grid and meeting stringent greenhouse gas emissions targets while maintaining 10 reliable, cost-effective power supply © 2010 IBM Corporation
  • 11. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer They are doing so by becoming instrumented, interconnected and intelligent. 11 © 2010 IBM Corporation
  • 12. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer INSTRUMENTED We now have the ability to measure, sense and see the exact condition of everything. Today, there are 1 billion transistors for each person on the planet. In 2010, the number of RFID tags embedded into our world and across entire ecosystems is estimated to reach 30 billion. In 2008, 6.7 million intelligent meters were used for advanced metering in the U.S., compared to 947,000 in 2006. Remote monitoring devices tell when and where faults occur and where the inefficiencies are, enabling smarter sourcing and distribution of power. 12 © 2010 IBM Corporation
  • 13. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. The Internet of people is 1 billion strong. Almost one third of the world’s population will be on the web by 2011. There are an estimated 4 billion mobile phone subscribers worldwide. Hybrid car sales in the U.S. market are expected to cross the one million mark by 2012. Virtual marketplaces between consumers and providers allow consumers to trade flexibility in usage for lower costs. 13 © 2010 IBM Corporation
  • 14. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer INTELLIGENT We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. Every day, 15 petabytes of new information is being generated. This is 8 times more than the information in all U.S. libraries. An average company with 1,000 employees spends $5.3 million a year to find information stored on its servers. If the U.S. grid were just 5% more efficient, the energy savings would equate to permanently eliminating the emissions from 53 million cars. Power grids use sensors, smart meters, digital controls and analytic tools to automatically monitor and control two-way energy flow. 14 © 2010 IBM Corporation
  • 15. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer + + = An opportunity for energy and utilities organizations to think and act in new ways. Incorporate renewable Empower consumers and Transform electric energy and electric vehicles improve satisfaction by grid and gas and water into the power grid and providing them with near infrastructures from meet stringent greenhouse real-time, detailed information rigid, one-way gas emissions targets while about their energy usage. systems to dynamic, maintaining a reliable, cost- automated and reliable effective power supply. information networks. 15 © 2010 IBM Corporation
  • 16. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer IBM’s SAFE Framework enables Energy & Utilities industry solutions. The Solution Architecture for Energy and Utilities Framework (SAFE) is an innovative software platform uniquely positioned to provide network visibility and control, process automation and business collaboration solutions across the energy and utility value chain. Regulatory, Asset, Device Risk and and Service Compliance Monitoring Management Improved Informed Integration Customer Decision Optimization Experience Making Analytics Collaboration Security Resiliency Asset Business Lifecycle Process Management Automation Security Solutions Key benefits: An approach to align technology with utility business needs Reusable implementation patterns to lower risk The ability to build a simplified enterprise architecture— Support for the adoption of open and industry standards one project at a time A choice of business applications and services from IBM Utility industry best practices and solution accelerators and IBM Business Partners to speed deployment 16 © 2010 IBM Corporation
  • 17. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Energy and Utilities: Empowering the consumer. 1 2 SMART IS SMART IS Providing consumers and businesses Updating and integrating customer with tools to proactively analyze and systems to support the technology manage their energy usage. evolution and new business requirements. 3 SMART IS Knowing how to incorporate new and localized energy resources into the utility network. 17 © 2010 IBM Corporation
  • 18. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 Customers are demanding the ability to collaborate with utilities to create smarter homes and buildings. 90% 100 million 75% Of consumer respondents Smart meters will be Of consumers on a to IBM’s Global Utility deployed in the next five time-of-use pricing Consumer Survey years, half of which will pilot in Ontario were indicated that they would have a built-in Home-Area able to shift their like a smart meter and Network (HAN) gateway load and save an tools for managing their for in-home energy average of 3% on energy usage. management programs their energy bills. and services. 18 © 2010 IBM Corporation
  • 19. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 Smart is: Providing consumers and businesses with tools to proactively analyze and manage their energy usage. Communication channels Utility Consumer Usage information Energy Action Devices Utilities are employing smarter technologies and applications to enhance and improve customer relationships. 19 © 2010 IBM Corporation
  • 20. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 Smart is: Providing consumers and businesses with tools to proactively analyze and manage their energy usage. How will you do it? Ensure that usage information is timely and consistent across all customer communication channels. Provide customers with recommendations for alternate consumption patterns and reward actions that are advantageous to both the utility and the customer in measurable, transparent and meaningful ways. Enable the network Gather relevant data Collaborate Extend utility operations into the home Gather data from devices and Work with customers, incenting them by deploying smart meters and enabling provide information about energy to adjust their energy consumption via them to communicate with consumption patterns. time-of-use pricing or voluntary other devices. curtailment programs. The benefits: • Increased customer satisfaction • Alignment of values between the utility and its customers • New revenue streams through additional products and services • Automatic control for convenient and lower costs per customer usage adjustments 20 © 2010 IBM Corporation
  • 21. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 IBM has partnered with utilities around the world to implement innovative solutions. Energie Baden-Württemberg: Worked with IBM to put A centralized energy market operator: Seeking to improve in place a first-of-a-kind solution that generates and the quality of service they could offer, three utility providers displays the underlying price of electricity as it changes in one U.S. state wanted to provide energy consumers with throughout the day. In addition to providing a basis for direct access to their consumption metrics. The organizations changing consumption behavior, it also establishes a hoped that by being better informed, consumers would be able low-cost platform for changing EnBW’s customer-facing to act more responsibly when it came to their energy use. processes like billing. 21 © 2010 IBM Corporation
  • 22. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 A centralized energy market operator uses streaming data to help consumers make more responsible energy choices. Regulatory, Asset, Device Risk and and Service Compliance Monitoring Management Improved Informed Integration Customer Decision Optimization Experience Making Analytics Collaboration Security Resiliency Asset Business Lifecycle Process Management Automation Security Solutions Key IBM assets utilized: Key benefits: WebSphere portals and dashboards Provides a common point of information Tivoli security solutions sharing among energy retail companies and Business Process Management transmission companies Information integration and archiving Supports regulatory requirements and standards 22 © 2010 IBM Corporation
  • 23. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 1 These solutions are powered by our unique expertise spanning all facets of customer management and operations. Smart Metering and Beyond: Customer Intelligence and Analytics: Customer Web Portals: Transforms distributed utility Provides fact-based input and Enables next-generation online operations by extending operational customer-oriented methods to drive capabilities across new business awareness of consumer demand to customer insight across marketing, processes, customer experience the end points of the utility network sales and service. and technology innovation. and into the customer premises. 23 © 2010 IBM Corporation
  • 24. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer How will you… Provide your customers with the information and tools they need to make informed energy decisions? Provide incentives to your customers to make informed decisions that can help your utility manage the load in a more predictable manner? Achieve a reasonable cost-to-serve through consistent approaches to dealing with customers across all channels—including contact center, Web, mobile and IHDs? 24 © 2010 IBM Corporation
  • 25. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 2 The deployment of new technologies and shifts in customer behavior are demanding transformation on the part of utilities. 4 in 5 70% $4.2 billion Consumers would change Of the 5,000 respondents Will be spent in 2013 the times at which they in IBM’s 2008 Global Utility on information and perform energy-consuming Consumer Survey are willing communications housework in exchange for to experiment with how they technology for the savings of 50% or more on interact with energy providers. smart grid in the U.S. their energy bills. and Canada. 25 © 2010 IBM Corporation
  • 26. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 2 Smart is: Updating and integrating customer systems to support the technology evolution and new business requirements. Meter Data Customer Management Relationship Management Mobile System Workforce Load Management Outage Management Customer Communication Customer Information channels System Geospatial Information System Data Insight With customers’ emerging role as both a supplier and consumer of energy, there is a need for utilities to enhance tools and technologies to better integrate the customers’ participation in the value chain. 26 © 2010 IBM Corporation
  • 27. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 2 Smart is: Updating and integrating customer systems to support the technology evolution and new business requirements. How will you do it? Proactively shape the regulatory framework to drive change in an operating scope beyond traditional services. Modernize customer systems to support new processes and manage larger amounts of data. Provide seamless access to information through all channels. Update customer systems Manage data Present usage information Adapt to climate-related regulations, Manage high volumes of data, multiple Provide customers with information on complex rate structures, technology integration touch points and increased prices, costs and usage with convenient, innovation, increased data volumes number of participants requiring automated controls and tools to and an empowered consumer. access to customer data. enhance their experience. The benefits: • Leveraged meter data • New tools and information availability for customer care agents • Improved billing flexibility and scalability • More accurate billing information 27 © 2010 IBM Corporation
  • 28. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 2 IBM is beginning to partner with organizations around the world to implement innovative solutions. A Canadian regulator: Launched a pilot time-of-use A U.S. utility: Anticipates lowering its own operating program that rewards consumers for using less power costs while helping its customers lower their energy bills. during times of shortage or peak demand, leading The ability to monitor and change energy use through participants to shift 25% of their usage away from smart grid technology will save customers money and peak hours. lower general energy consumption. 28 © 2010 IBM Corporation
  • 29. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 2 These solutions are powered by our unique expertise spanning all facets of utilities’ customer systems. Customer Focused Utility: Customer Systems Implementation Customer Systems Management: Helps utilities understand their and Modernization: Focuses on Provides a managed environment for customers’ expectations, define the componentization, consolidation, customer systems and their technical the capabilities needed to satisfy modernization and replacement environments, which helps utilities those expectations, and build those of legacy and packaged customer improve service levels and business customer-related capabilities into systems, as well as their integration flexibility while reducing operational the smart grid transformation plans. with other applications across cost, time and risk. the enterprise. 29 © 2010 IBM Corporation
  • 30. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer How will you… Update customer-facing applications (CIS, CRM) to support new rates and manage larger amounts of data? Maintain the security of sensitive customer data—as well as the information that can be derived from it—contained in records generated by smart meters? Enroll consumers in demand-response and energy-efficiency programs? 30 © 2010 IBM Corporation
  • 31. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 3 The demand for alternate and renewable sources of energy is growing. 20-20-20 1 million Net-zero The EU climate package The California Solar A net-zero energy home sets targets of a 20% cut in Initiative authorized the is capable of producing, greenhouse gas emissions, state to invest $3.2 billion at minimum, an annual a 20% increase in the use in small-scale solar electric output of renewable of renewable energy and power systems over eleven energy that is equal to a 20% cut in energy years and to establish the the total amount of its consumption through statewide goal of building annual consumed/ improved energy efficiency one million solar electric purchased energy from by 2020. roofs amounting to 3,000 energy utilities. megawatts (MW) of solar electric power. 31 © 2010 IBM Corporation
  • 32. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 3 Smart is: Knowing how to incorporate new and localized energy resources into the utility network. Energy Solar storage Wind Coal Energy storage Hydro UTILITY Nuclear Solar Wind Energy Solar storage Energy flow Wind Information flow Payment/collection flow Plug-in vehicle Innovative processes and systems enable the utility to incorporate new energy resources into the grid, to manage and maintain those resources, and to ensure the necessary flow of information and finances among participants. 32 © 2010 IBM Corporation
  • 33. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 3 Smart is: Knowing how to incorporate new and localized energy resources into the utility network. How will you do it? Efficiently scale distributed energy resources by ensuring the safety and reliability of network operations and by implementing maximum adoption of distributed energy technologies at the lowest cost. Provide fair compensation and transactional efficiency for customers. Provisioning Monitor, maintain, control Settlement Track the installation of distributed Continuously assess resource availability, Securely execute all financial resources: where, when and how to impending failures, repairs and upgrades. transactions, including incorporate utility operating Dispatch the resources based on payments and collections. practices and models. operating needs. The benefits: • Ensure the safe and reliable • Ensure efficient transactions—i.e., operation of the network both utilities and consumers are fairly compensated • Provide distributed energy technologies at the lowest cost 33 © 2010 IBM Corporation
  • 34. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 3 IBM has partnered with utilities around the world to implement innovative solutions. European Demonstration Project: IBM Global Business MVV Energie: Teamed with IBM Global Business Services Services and IBM Research developed a real-time energy and others to create a virtual marketplace that provides monitoring and management solution that can balance the energy companies and customers with real-time energy charging of vehicles against the availability of wind energy generation, consumption and availability data. Users can reserves. Conversely, the solution can draw energy employ this solution, which leverages IBM WebSphere MQ reserves and regulation power back from the cars into the Telemetry Transport software, to monitor local energy grid to stabilize energy availability. An advanced modeling reserves and view current pricing for outside energy sources. and run-time solution, hosted on IBM BladeCenter servers, is used to analyze the collected data and host the real-time analytics and portal software. 34 © 2010 IBM Corporation
  • 35. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer 3 These solutions are powered by our unique expertise spanning all facets of the energy and utilities system. Electric Vehicles: Visioning and strategy to support the Renewable Energy Resources: Visioning, strategy and various business models which may develop around the development of IT and communications infrastructure supply and demand of electricity with PHEVs and EVs. required to integrate distributed energy into the utility network Development of IT infrastructure and standards required and to gain visibility that will enable better management of to enable the supply and billing of electricity to PHEV and electricity supply and demand. EV mobile customers. 35 © 2010 IBM Corporation
  • 36. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer How will you… Ensure the optimum time to charge and discharge grid-connected batteries for frequency control and energy resource? Manage network technologies so they become a controllable resource more than a customer service? Bill for an EV charge in a public space for a driver that does not have an account with your utility? Manage seamlessly in an environment where there are many different devices and companies? 36 © 2010 IBM Corporation
  • 37. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Why IBM? Only IBM can provide the unique combination of technology and expertise you need to ensure reliable, cost-effective and environmentally sound operations across the energy and utility value chain—from the source, through the grid, to the end consumer. 37 © 2010 IBM Corporation
  • 38. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Solution Architecture for Energy and Utilities Framework: Software capabilities. Visualize infrastructure availability Manage large quantities of and performance through device, utility documents and processes Regulatory, to comply with government- event and usage data, providing Asset, Device Risk and real-time control and analysis to and Service mandated regulations. Compliance speed time to resolution. Monitoring Management Use data and information Deliver convenient, personalized aggregated from business and customer experiences by enabling Improved Informed operation systems to analyze Integration Customer Decision interactive communication and Optimization events, develop insights, correlate Experience Making providing consumers with more Analytics reactions to change and improve control over their energy sources Collaboration business flexibility and performance. and usage. Security Resiliency Asset Business Model, manage and optimize Track, document and make decisions Lifecycle Process business processes resulting in faster about the procurement, deployment, Management Automation time to market, increased customer operation, maintenance and disposal satisfaction, and higher productivity. Security of generation plant, transmission or Solutions distribution field assets. Comprehensively manage and prevent security risk across all business domains. 38 © 2010 IBM Corporation
  • 39. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer IBM’s Solution Architecture for Energy and Utilities Framework enables utility companies to start with any solution and build upon it over time to achieve a simplified, strategic infrastructure. 1 Choose a project and implement it to achieve 2 Build on the value of previous projects, reusing assets and 3 Achieve a simplified, strategic infrastructure. immediate ROI. implementation patterns. 39 © 2010 IBM Corporation
  • 40. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Energy and Utility companies benefit from added speed, choice and flexibility, along with lower levels of risk and the support of a vast IBM Business Partner network. Speed: Leverage industry best practices, repeatable business patterns and open standards to implement solutions faster than ever. Choice: Utilities choose the solutions that provide the most value to them, in the order and at the pace that makes the most sense. Flexibility: Techniques built on business process management and service-oriented architecture means easier deployment and interoperability of solutions. Lower risk: Incremental projects, each with a defined payback period, are more easily scoped and implemented—and build on infrastructure deployed in previous phases. Business Partner network: Pre-validated, powerful applications integrate seamlessly with IBM SAFE Framework middleware. 40 © 2010 IBM Corporation
  • 41. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Why must we take action now? VOLATILE DEMAND AND INCREASING COST Changing utility business conditions will create new challenges of balancing supply and demand from both an operational and financial perspective. Current utility infrastructure will need to be upgraded to address this challenge. ENVIRONMENTAL CONCERNS Consumers are increasingly concerned about the environmental impact of the products they buy, including energy. As a result, they are demanding that utilities provide them with new sources of energy and more information that will enable them to make smarter decisions. CONSUMERS DEMAND A DIFFERENT MODEL Consumers desire more information and reliability when it comes to their energy use and the system as a whole. Building a smarter infrastructure is a singular way to meet these demands while stimulating growth in the greater economy. 41 © 2010 IBM Corporation
  • 42. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer How to get started: A five-step roadmap to smart. Strategy 1 Shape a sustainable energy and utilities environment wherever you operate. 2 Prioritization Invest in the transformation of your infrastructure. 3 Integration Share data across the value chain to promote smarter consumption. Optimization 4 Effectively manage supply and demand. 5 Discovery Identify the next frontier for energy and utilities locally and globally. 42 © 2010 IBM Corporation
  • 43. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer We’ve only just begun to uncover what is possible on a smarter planet. The world will continue to become smaller, flatter and smarter. We are moving into the age of the globally integrated and intelligent economy, society and planet. There’s no better time to start building smarter energy and utilities organizations—focused on providing energy responsibly to empowered consumers. And there’s no better time to invest in creating the kind of society we all desire. Let’s work together to drive real progress in our world. 43 © 2010 IBM Corporation
  • 44. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer APPENDIX 44 © 2010 IBM Corporation
  • 45. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer Where is IBM applying its expertise today? WE ARE… Developing smart energy grids around the world. Helping retailers track products from the supplier to the store shelf. Implementing intelligent traffic systems to increase efficiency and reduce environmental impact. Engineering more resilient and adaptable strains of rice. Providing crime fighters with instant mobile access to mountains of pertinent data. 45 © 2010 IBM Corporation
  • 46. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer To empower consumers, smart energy and utilities organizations are working to… DRIVE COLLABORATION INTEGRATE THE CUSTOMER AND SHARE DATA INTO THE VALUE CHAIN Engage and enable customers to Reshape services and processes, make more informed decisions, and ensure continuous access to and reward them for doing so. EMPOWERING information. THE CONSUMER MEET DEMAND FOR ALTERNATE ENERGY SOURCES Improve energy efficiency while mitigating environmental impact. 46 © 2010 IBM Corporation
  • 47. Let’s build a smarter planet: Energy and Utilities—Empowering the Consumer + + = An opportunity for energy and utilities organizations to think and act in new ways. Drive collaboration Integrate the customer into Meet demand for and share data. the value chain. alternate energy sources. 47 © 2010 IBM Corporation