Smarter Products For A Smarter PLanet - Neeraj Chandra

Delivering Cost-Effective Innovationin Challenging Economic TimesIntroducing Smarter Products for a Smarter PlanetNeeraj Chandra, Vice President, Worldwide Strategy© 2009 IBM CorporationIBM Rational Software Conference 2009The reality of living in a globally integrated world is upon usEconomic interdependencies and future uncertaintyIncreasingly complex supply chains and empowered consumersNew competitors and fast changing industry dynamicsImpact of emerging economiesEnergy shortfalls and erratic commodity pricesExplosion of compute power and embedded technologyOrganizations that design and create products face a world of growing complexity2IBM Rational Software Conference 2009The era of one-size-fits-all is overA new generation of smarter products — embedded with increasingly sophisticated software and instrumentation, able to connect to other devices and respond intelligently to user needs — is transforming the way the world works. These products are the building blocks of smarter solutions in every industry, from hospitals to manufacturing to the energy grid.162 million90%1 trillionAlmost 162 million smart Nearly 90% of innovation in Soon, there will be 1 phones were sold in 2008, automobiles is related to trillion connected surpassing laptop sales for software and electronics devices in the world, the first time.systems.constituting an “internet of things.”3IBM Rational Software Conference 2009Smarter Products require an unprecedented level of coordination between the companies that produce the products and their customers who consume and manage themProduce4IBM Rational Software Conference 2009Smarter Products require an unprecedented level of coordination between the companies that produce the products and their customers who consume and manage themProduceConsume5IBM Rational Software Conference 2009Smarter Products require an unprecedented level of coordination between the companies that produce the products and their customers who consume and manage themProduceConsumeManage6IBM Rational Software Conference 2009Organizations of the future must build the competencies to produce their products – and enable customers to consumeand manage them – in smarter ways……if they are successful, they will maximize their ability to capture value with smarter productsReduce the cost of Create new value and Improve product quality and development and innovate fasterreduce riskproduction7IBM Rational Software Conference 2009Incremental value is created by global interconnection across products, systems, applications and the InternetTraffic ServicesVehicle ServicesPolice/EmergencyPersonal ServicesVehicle MonitoringTraffic CongestionRoadside AssistanceNewsWeatherAdvanced DiagnosticsEntertainmentConciergeSoftware Fault AnalyticsBankingInsurance Service & Warranty DataGovernment(“pay as you drive”)UtilitiesVehicle to VehicleDealerVehicle to RoadsideTollsElectric Vehicle/ Hybrid GPSChargingChanges are being driven across the entire supply chain - even to commodity parts that now require sophisticated software & electronics8IBM Rational Software Conference 2009Smarter products are also the building blocks for new solutions across every industry that will collectively transform our planetSmarter health careSmartertransportationSmarter devicesand machinerySmarter Smarter aerospace systemsgreen technologiesSmarter energy9IBM Rational Software Conference 2009Software is the “invisible thread” in today’s innovation“The medical field is highly dependent on software, which significantly enhances delivery 66%of patient care”34%“Like many of the components that make up today's vehicles, the hydraulic hybrid systemsare intelligent software intensive systems.”Inclusion of embedded software components in product development “Software has evolved from a hidden component driving functionalityto the keystone of product differentiation and end-user experience.”-- VDC Research10