Andrew Stevens
Managing Partner, IBM Global Business Services
Collaborating with business to deliver
solutions to support Well Being
Why ask IBM?
 Voted most Inventive Company in the world –
17th consecutive year
 4,914 Patents in 2009
 $6 Billion in R&D annually
 Workforce is made up of mathematicians,
researchers and engineers
 Passionate about expanding
analytics capabilities
– Invested over $12B in software
acquisitions
– 10 years of services research
– Biggest mathematics department
in Private Enterprise
– Subject Matter Experts across
the globe
© 2010 International Business Machines Corporation
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* CGR 2009 through 2015, Source IBM Market Intelligence
A series of wake-up calls
 World financial markets
 Threat of global climate change
 Greater awareness surrounding
energy and water supplies
 Global terrorism and crime
 More vulnerabilities of global supply
chains for food and medicine, even
labour
The world is connected
 ECONOMICALLY
 SOCIALLY
 TECHNICALLY
© 2010 International Business Machines Corporation
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Infusion of Intelligence into the Way the World Works
Our world is becoming
INSTRUMENTED
Our world is becoming
INTERCONNECTED
Virtually all things, processes and
ways of working are becoming
INTELLIGENT
If you’re responding……...it’s already too late
© 2010 International Business Machines Corporation
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Predict and Act……the new mode of operation for a world
that is working in fundamentally different ways
We must be able to see the patterns in the data, make correlations
and predict consequences ahead of time
Analytics enables:
 Financial institutions to understand the exposures to risk
 Transportation authorities to predict and avoid traffic jams
 Energy companies to monitor equipment
and automatically issue alerts in the event of failure
© 2010 International Business Machines Corporation
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Societal issues facing Australia
 Reshaping the Healthcare system to
deal with an ageing population
 Treating water
as a finite
resource
 Dealing with Crime in an increasingly
complex, global environment
© 2010 International Business Machines Corporation
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Reshaping the healthcare system through
predictive data
 Market forces are putting enormous pressure
on an already struggling healthcare system
in Australia
– The proportion of people aged 65 years or over
is projected to increase from 13 per cent in
2010 to 23 per cent by June 2050
– An ageing population will place greater
demands on government services –
particularly healthcare
– Public hospital costs on average are five times
greater for the older population
– Medical errors in Australia cost between
$1 – 2 Billion annually
© 2010 International Business Machines Corporation
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Driving change in the healthcare system
 If we could make a step change in just the
treatment of chronic conditions like coronary
artery disease, congestive heart failure and
diabetes, we’d attack 80 percent of all
healthcare costs
 Benefits of optimising data
– Integrates patient information from electronic
medical records, claims, medication, lab data
and clinical decision support
– Allows for Evidence based Medicine
– Enables Chronic Disease Management –
preventive treatments before the disease hits
– Doctors can deliver more complete and
accurate decisions, reducing medical mistakes
and unnecessary tests and treatments
– Gives healthcare organisations access to all the
tools and services without making big individual
investments
– Could alert people to catastrophic medical
events before they happen
© 2010 International Business Machines Corporation
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Water - a finite resource
 Australia's rainfall is one of the lowest of all
continents in the world.
– Despite this, Australia has one of the
highest per capita water consumption rates
in the world.
 We are hard pressed to meet our water use needs
for domestic, agriculture, community and
environmental purposes.
– The OECD estimates that more than 75 per cent
of Australia’s population will face severe water
stress in terms of supply by 2030
 The Murray-Darling Basin is Australia’s most
important agricultural region, accounting for over 39
per cent of Australia’s gross value in agricultural
production
– Many of our farmers, who use 70% of our fresh water,
still irrigate on a ‘flood the field’ basis, losing up to 75%
of the water to evaporation.
© 2010 International Business Machines Corporation
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Meeting supply and demand - better monitoring,
measuring and distribution
 An intelligent water system monitors its own health,
remotely senses damage, assesses water availability
and predicts demand
– Research is being conducted in Australia to implement
systems that automatically sense water requirements and
direct water where it’s needed
– With advances in sensor networks, smart meters, deep
computing and analytics, we can now monitor, measure and
analyse entire water ecosystems
Benefits of Optimizing Data:
 Create an integrated, intelligent water system to:
– Effectively measure what water we have
– Interpret and make intelligent decisions from the information
collected
– Encourage and enable every user to conserve our scarce
water resources
– Deliver water to the right place at the right time
– Store data in one central location
– Avoid large investment in infrastructure
© 2010 International Business Machines Corporation
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Law enforcement agencies face growing complexity
 In Australia – global connections have
increased criminal activity and the complex
way in which they operate
 Law enforcement Agencies are unable to
compete with large, global criminal rings that
are backed by money and resources
 Major police departments have become
extremely adept at capturing information – the
problem is how to share, leverage, analyse
and predict actions to combat crime.
© 2010 International Business Machines Corporation
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Fighting crime – with ones and zeros
Benefits of optimising data
• Helps prevent crimes through pattern
recognition and information gathering
• Enables faster closing of cases
through more efficient gathering,
consolidation and analysis of
crime-related data
•Monitoring
•Solving
•Predicting
• Dispatchers can flag dangerous
situations for responding officers, thus
contributing to increased officer safety
…..Analytics takes fighting
crime to a whole new level
© 2010 International Business Machines Corporation
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• Enables officers to concentrate on
solving crimes rather than gathering
information and writing reports
about them.
Fighting crime at the NYPD
 Play Video
NYPD Short 16x9 HD.mov
© 2010 International Business Machines Corporation
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Getting serious about the next steps…..
 Potential to bring to life solutions that
promote well-being
 Must shift from ‘Sense and Respond’ to
‘Predict and Act’
Government
services
Transportation
 Collaboration between business and
Public Sector makes sense
 Leadership is required
Education
1. Standards
2. Innovation and Openness
3. Collaboration
© 2010 International Business Machines Corporation
Public safety
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Energy
and
utilities
Healthcare