100 years of innovation Helping to build a smarter planet

tansysoapweedNetworking and Communications

Feb 16, 2014 (3 years and 6 months ago)

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100 years of
innovation


We are in the fabric of

everyday life

Helping to build a
smarter planet

IBM Canada Ltd.


Patrick Horgan


VP Manufacturing, Development

and Ops IBM Canada Ltd.



1

IBM Canada At
-
a
-
Glance


Established in
1917


$550M+

in R&D in 2012


Major Market S&D Country: Bromont &
Markham volumes

-
$2.1B

in imports in 2012 /
$2.2B

in exports in
2012


Ranked
#1 Best Corporate Citizen

by
Corporate Knights’ in 2010


Ranked Top 5
Most Attractive Employer

in
Canada by Randstad in 2011 / 2012 / 2013


Certified PAR Gold

for Progressive Aboriginal
Relations by the Canadian Council for Aboriginal
Relations in 2012


210,000+ hours
pledged by IBM Canada
Employees for Charity


$500M
new investments

in 2012, including
R&D & Canadian Cloud Computing Centre


Canada is home to
IBM’s 2nd largest
Software Development Org

-
Toronto / Ottawa (Cognos) SW Labs largest
locations

-
10 additional Satellite Labs including Montreal and
Victoria


World
-
class
high
-
tech manufacturing,
Bromont, Que.


National business and technology consulting
expertise

-
Pacific Development Centre, Burnaby

-
Customer Solution Centre, Markham

2

The Canadian Economic Climate

Canadian Chamber of Commerce
-

Top 10 Barriers to Competitiveness

1.
Human Resources

Canada suffers both from labour shortages and from serious mismatches between
existing skills of workers and the needs of business.

2.
Workforce productivity

Policies affecting the productivity of Canadian workers are growing more important
as real competition from low
-
cost labour markets intensifies.

3.
Innovation performance

Canada lacks a definitive innovation strategy that brings coherence to the
many government policies and programs affecting private research,
academic research and commercialization.

4.
Public infrastructure planning

Government commitments to infrastructure have been intermittent

and the criteria changeable; this approach makes private sector

investment difficult and expensive.

5.
Access to world markets for Canadian energy products

Federal and provincial governments need to develop options to

diversify the distribution of energy assets to secure Canada’s

status as a diversified and reliable source of energy.

3

The Canadian Economic Climate, Continued

6.
Tax complexity and infrastructure

Canada’s tax system is also overly complex and, as a result, imposes unnecessary
and significant compliance and administration costs on business and consumers.

7.
Trade strategies and access to new markets

Energetically building policies and programs to grow Canada’s non
-
U.S. trade over
the next decade would set Canada on the course to becoming a truly global trader.

8.
Internal trade

Canada is far from being a barrier
-
free internal market. Canadian business

has to petition governments for the “right” to sell goods and services in

Canada, across provinces.

9.
Travel and tourism strategies

Canada has cut the tourism marketing budget needed to expand

new markets, while the key historic source of travelers (the U.S.)

remains depressed.

10.
Access to capital

The competitive gap between Canadian and U.S. venture capital

financing continues to widen, with average Canadian firms securing

less then half the funds per deal that U.S. firms secure.

Canadian Chamber of Commerce
-

Top 10 Barriers to Competitiveness

4

5

Mobile

Social

Cloud

Internet of Things

6

The “Big Vs” of Big Data


Veracity

Uncertainty from
inconsistency,
ambiguities, etc.

Vulnerability

Protecting the
privacy and
integrity of the
data

Terabytes to
exabytes of
existing data
to process

Volume

Streaming
data,
milliseconds to
seconds to
respond

Velocity

Structured,
unstructured,
text &
multimedia

Variety

7

2010

Volume in Exabytes

9000


8000


7000


6000


5000


4000


3000

2015

Percentage of
uncertain data

Percent of uncertain data

100



80



60



40



20



0

Sensors

& Devices

VoIP

Enterprise
Data

Social
Media

We are
here

8

The “Big Vs” of Big Data


Volume

Terabytes to
exabytes of
existing data to
process

Velocity

Streaming data,
milliseconds to
seconds to
respond

Variety

Structured,
unstructured,
text &
multimedia

Veracity

Uncertainty from
inconsistency,
ambiguities, etc.

Vulnerability

Protecting the
privacy and
integrity of the
data

9

9

If Analytics is so valuable why doesn’t everyone have it?

Lack of
understanding how to
use analytics

to improve the
business

38%

Lack of
management bandwidth
due to competing priorities

34%

Lack of
skills

internally in the line of
business

28%

Ability to get the data

24%

Culture does not encourage sharing
information

23%

Ownership of the data is unclear or
governance is ineffective

23%

Lack of executive sponsorship

22%

Concerns with the data

21%

Perceived costs outweigh the projected
benefits

21%

No case for change

15%

Primary Obstacles to Widespread Analytics Adoption

Organizational

Data

Financial

Analytics: The New Path to Value

Joint Study MIT Sloan Management Review

& IBM Institute of Business Value

Copyright
©
Massachusetts Institute of Technology 2010.

10

Skill Needs in the Marketplace

What are we hearing from our customers and others?

Analytics


The United States faces a shortage of 140,000 to 190,000
people with analytical expertise


The U.S. Department of Labor forecasts that the number of
analytics
-
based jobs will grow by more than 20 percent
between now and 2018


40% of organizations report a skills shortage in the ability to
manage information

Sources: IBM Tech Trends report, McKinsey & Company, CompTIA, Enterprise Strategy Group, Dept of Labor

11

Explosion of data:

Harness
big data

to gain insight and develop new offerings

… your students could
harness

this explosion of
data

and
use analytics
to

gain insight
and

predict outcomes
for

smarter business


in any environment?

What if…


1 IDC,
The 2011 IDC Digital Universe Study Sponsored by EMC
, 2011, http://www.emc.com/collateral/about/news/idc
-
emc
-
digital
-
universe
-
2011
-
infographic.pdf

2 IDC, “IDC Releases First Worldwide Big Data Technology and Services Market Forecast, Shows Big Data as the Next Essential C
apa
bility and a Foundation for the Intelligent
Economy,” news release, March 7, 2012, http://www.idc.com/getdoc.jsp?containerId=prUS23355112

3 ReadWriteWeb, “Google CEO Schmidt: ‘People Aren't Ready for the Technology Revolution’” Marshall Kirkpatrick, August 4, 201
0;
http://www.readwriteweb.com/archives/google_ceo_schmidt_people_arent_ready_for_the_tech.php


You could increase
customer value with
every interaction?

You could anticipate and
shape the impact of
financial decisions?

You could prevent and
minimize losses
stemming from fraud?

What if…

What if…

What if…

12

12

IBM Canada’s investments in innovation

IBM Canada Research & Development Centre

New Research Center and Collaboration

IBM Canada Leadership Centre

Significantly expanded Big Data capacity

Atlantic University Partnership on Analytic Skills

SAP Global Delivery Center and

Academic Analytics Partnership

Bromont MiQro Innovation Centre

New advanced microelectronics research facility

13

Bromont MiQro Innovation Centre


New advanced microelectronics research facility


Microelectronics technology research facility


Pioneering the development of processes and
tools needed to develop, model, assemble, and
test future generations of microchips.


Partnership led by U of Sherbrooke and including
private sector leaders: DALSA and IBM


Leveraging the existing North
-
East corridor for
innovation and manufacturing of microchips.


Focused on industry directed innovation. Fueled
by world demand for embedded technology


Creating synergy between industry and
universities, providing access to state of the art
infrastructure.


Training a world
-
class specialized industrial and
scientific labour force

A Canadian Innovation Center in Quebec

to Secure the Assembly of Future Generation Microchips

14

Atlantic University Partnership on Analytic Skills

SAP Global Delivery Center and Academic Analytics Partnership

Led by Post
-
Secondary
institutions, building on
existing programs,
materials and case
studies

Research &
Development

Curriculum
Development &
Delivery

Develop and implement a model of cooperation that:

a)
Enhances education, training and research collaboration in the areas

of Analytics between IBM and Post
-
Secondary educational institutions

in Nova Scotia and the Atlantic Canada region,

b)
Increases the number of individuals with education, training, experience

and certification in Analytics throughout Nova Scotia and the Atlantic Canada region, and

c)
Engages Nova Scotia’s post
-
secondary educational institutions as key partners in research and development for
the creation of essential skills and applications in Analytics.

Technology
Installation &
Support

Specific actions and investment to facilitate three pillars of partnership:

IBM donation of HW
(SUR Grant) and SW
(Academic Initiative) to
develop a provincial
cloud to support
curriculum deployment
and skills development

Forward looking,
building on the critical
mass of skills,
technology
infrastructure and
additional industrial /
government partners

15

Southern Ontario Smarter Computing Innovation
Platform
(SOSCIP)


Bolster jobs, skills and innovation in Ontario through a ground
-
breaking collaborative research model focused on issues that impact
Canadian society and economic development


Provide researchers with support and access to a unique High
Performance Computing (HPC) environment to expand and
accelerate research scope and outcomes


Engage Ontario Businesses/SME’s to develop and accelerate “Made
in Canada” assets and economic development.

Collaborative research focused in five game
-
changing domains

HEALTH

ENERGY

WATER

CITIES

AGILE

16

IBM Canada Research & Development Centre

New Research Center and Collaboration

17

IBM Canada R&D Centre and SOSCIP Consortium


Announced April 10, 2012


$210M Investment over three years

-
IBM invests $175M in computing infrastructure and
new jobs

-
Federal and Provincial Governments invests $36.5M


Five focus areas to bolster Ontario and Canada
skills/capacity and innovation

-
Healthcare

-
Water

-
Energy

-
Cities

-
Agile Computing


Distinguished High Performance Computing
Infrastructure

-
Fastest supercomputer in Canada

-
Premier agile research environment

-
Advanced cloud/analytics research platform

-
Future role for IBM Canada Leadership Data Centre



Collaboration is foundational and key to success

-
Seven university partners

-
Federal and provincial Governments, including MEDI

-
Private industry through IBM and OCE collaboration

18

SOSCIP Project Summary
Institution
#Project
McMaster University
3
University of Ottawa
2
Queen

s
4
University of Ontario
3
University of Toronto
10
University of Waterloo
5
Western University
7
TOTAL
34
Institution
#Project
McMaster University
3
University of Ottawa
2
Queen

s
4
University of Ontario
3
University of Toronto
10
University of Waterloo
5
Western University
7
TOTAL
34
Focus Area
#Project
Health
13
Energy
6
Water
4
Cities
4
Agile
7
Focus Area
#Project
Health
13
Energy
6
Water
4
Cities
4
Agile
7
Platform
#Project
Blue Gene Q
14
Cloud
16
Agile
11
Multi
-
Platform
7
Platform
#Project
Blue Gene Q
14
Cloud
16
Agile
11
Multi
-
Platform
7
19

SOSCIP Project Examples

Institution

Project Summary

Focus

Area

REAL TIME ANALYSIS OF HUMAN BRAIN NETWORKS

Apply stream analytics to functional MRI data to analyze brain activity in near real time to improve
patient experience and reduce medical costs and timelines.

SMART METER DATA ANALYTICS

Develop software for small/medium enterprises which will help to identify smart ways to reduce energy
consumption.

WATER QUALITY MONITORING

Create a low
-
cost, easy
-
to
-
use, real
-
time sensor system for water

quality monitoring, including biological and chemical contamination detection.

SMART URBAN SYSTEM DESIGN

Research into transportation and urban activity systems in major cities, improving the decision
-
making
ability of urban planning designers.

MAKING CLOUD MORE SECURE

Improve the security of cloud environments by developing defense mechanisms that audit and fix
configuration
-
related vulnerabilities.

PREDICTING LEUKEMIA INHIBITORS (Business Led)

Develop a tool that simulates molecular behaviour to accelerate the selection of drugs for the treatment
of leukemia.

20

Artemis



1 in 14 babies are born prematurely in
Canada.


Approx 17% of babies born in Canada
require some form of special care.


Premature babies can be up to 17
weeks early and weigh only 450g.


They can spend 3
-
4 months in NICU.


Similar conditions apply elsewhere
around the world.

21


Multiple devices are attached to the
baby or humidicrib.


Medical devices output via serial port in
a range of formats.


Indicative readings are recorded on
paper every 30 or 60 minutes.


Cost of care per baby is approx $100
-
150K not including morbidity related
care

Artemis


Project with UoIT and Hospital for Sick Children


tracks stream of data form instruments


-

anticipates symptoms for Sepsis 24 hours prior to illness (emergency)


-

adjusts to prevent


With new technology


move technology to Cloud Computing and new areas of focus


22

What is Unique about SOSCIP?

Our Approach

Public
-
Private

Collaboration

SME Focus and

Engagement


Business
-
based

Outcomes

Grand Challenges

Exascale Computing

Speed of Deployment

Commercial Assets

Dedicated

Support Teams

Agile

Computing

Advanced

Analytics

Canada’s

Fastest

Supercomputer

22

High Impact research

Unique talents/perspective of IBM, Academic Researchers, OCE/SME

Speed of Execution/Fast Deployment

Commercial Asset optimization

Re
-
useable Skills and Assets

Our Research HPC Platform

23

Imperatives for Canadian IT Innovation

Commit to a path
of constant and
continuous
transformation

Cultivate public
and private
partnerships

Convert Big Data
into solutions
using analytics
with real
-
world
benefits

24

Striving to improve the innovation scorecard in Canada


Early feedback is very positive, emphasizing the importance of building collaborative
partnerships.

Creation of new partnership opportunities with:


Corporations,
both large and small,

that want to
invest and join the industry led innovation model.


Governments

that want to broaden their
partnerships with new approaches and programs.


Universities/Colleges and Hospitals

from across
all regions of Canada who want to expand their
research.

Canada can lead by building foundational skills for the future.