SOSCIP & IBM Allen Lalonde, Senior Executive, IBM Canada R&D Centre alalonde@ca.ibm.com June 24, 2015 OCE-SOSCIP Networking Forum IBM Canada At-a-Glance Established in 1917 110,000+ hours pledged by IBM Canada Employees for Charity annually $500M+ in R&D in 2014 Major Market S&D Country: Bromont & Markham volumes – $1.8B in imports in 2014 / $1.4B in exports in 2014 Ranked #1 Best Corporate Citizen by Corporate Knights’ in 2010 $500M new investments since 2012, including R&D Cloud Computing Centre Canada is home to IBM’s 2nd largest Software Development Organization – Toronto / Ottawa (Cognos) SW Labs largest locations – 10 additional Satellite Labs including Montreal and Victoria Ranked Top-5 Most Attractive Employer in Canada by Randstad in 2011 / 2012 / 2013 / 2014 World-class high-tech manufacturing, Bromont, Que. Certified PAR Gold for Progressive Aboriginal Relations by the Canadian Council for Aboriginal Relations for past 5-years National business and technology consulting expertise – Pacific Development Centre, Burnaby – Customer Solution Centre, Markham IBM Confidential The Idea: Stimulate Innovation in Canada “Productivity growth in Canada has ranged from disappointing to dismal. Since 2001, Canada’s productivity growth has slowed to historically low rates…… … with Canadian workers having only about half as much M&E and ICT capital stock to work with as their U.S. counterparts. … and with a widening competitiveness gap, low interest rates, strong balance sheets and increasing labour scarcity on the horizon, the imperative for Canadian businesses to invest has rarely been more compelling.” Speech by Senior Deputy Governor 10/04/12 “Innovation is the ability to turn knowledge into new and improved goods and services….. Canada remains a below average performer on its capacity to innovate ...Canadian companies are rarely at the leading edge of new technology and too often find themselves a generation or more behind” Conference Board of Canada: How Canada Performs, Sept 2012 Canadian Chamber of Commerce – Top 10 Barriers to Competitiveness 1. Silos in skills development Canada is not producing enough graduates with the needed skills for its economy. Must improve links between education and employment. 2. Access to capital 6. Canada’s tax code is also overly complex and over relies on income and profit tax rather than consumption tax. 7. Insufficient innovation rate Investment in disruptive technologies and innovation policy framework not sufficient enough to overcome barriers in manufacturing sector. 4. 5. 8. Trade constrained by infrastructure deficiencies Public investment in infrastructure has not kept up with economic needs to support prosperity. An ongoing commitment by all levels of government required to create a more competitive, modern public infrastructure. Territorial businesses lack required tools To fully leverage economic potential of Canada’s territories and drive financial independence, need to decide whether or not to provide territorial businesses with tools needed to drive financial independence. Internal barriers to trade Lack of single domestic market in Canada is a serious and self-imposed weakness. Need to address tariff barriers between provinces and promote free internal trade. Missing foreign trade opportunities Canadian businesses not globalizing as quickly as peers which requires renewed focus on highquality trade agreements and strengthen Canada’s system of trade promotion and economic diplomacy. One of the most critical determinants of competiveness is access to capital particularly for companies moving from innovation to commercialization. 3. Tax complexity and infrastructure 9. Uncompetitive in world tourism sector Considered a high-cost, high hassle destination with aging attractions infrastructure and inadequate marketing. 10. Lack of clarity regarding duty to consult Aboriginal peoples Project developers have no clear direction on the extent of consultation and accommodation required. IBM Canada Innovation Ecosystem: Cycle of Innovation GAP Government Funds & Programs IBM Canada Innovation Ecosystem: Collaborative Innovation Centres (CIC) • 1990: First IBM Centre for Advanced Studies (CAS) in the IBM Toronto Lab • 2000 - 2008 : Locations established across Canada: CAS Alberta, CAS Atlantic & CAS Academic Partnerships in Ottawa • 2012 to Present: Established Canadian Research and Development Centre and several CICs • Supports Canadian innovation agenda Government University Develop regional skills Invest in specific priority industries Improve desired capabilities Position Cdn companies to compete globally Gain external & global market recognition CIC Students get world class analytics education/ job experience Gain access to world class research/ education platforms Improve Tech transfer and commercialization Gain /improve research reputation Industry (IBM & Partners) Influence and drive revenue Enhance brand recognition Access world class talent/research resources Apply technology to real world challenges Accelerate industry specific R&D Drive competitive advantage & IP IBM Canada Innovation Ecosystem: CRDC exemplifies CIC Model at it’s best The Canadian Research and Development Centre is addressing Canadian challenges and driving IBM Strategy and Results … 1. Bolster skills and economic growth for IBM and Canada through ground-breaking collaborative research models focused on important aspects of Canadian society/economics 2. Provide researchers with support and access to unique IBM and other open Computing Infrastructure and Resources to expand and accelerate research scope and outcomes 3. Accelerate commercialization of “Made in Canada” new products and services, leveraging small-med sized businesses and industry partnerships 4. Incent Federal, Provincial and Partner funding aligned with IBM Research and Development priorities such as CAMSS, Healthcare and Natural Resources, effectively attracting more IBM Research to Canada IBM Canada Innovation Ecosystem: Building Canada’s “Innovation Engine” one collaboration at a time Southern Ontario Smart Computing Innovation Platform (SOSCIP) • • • • IBM & 11 Ontario Universities Health, Energy, Water, Cities, Agile $218M Investment ($20M Fed, $15M Prov, $183M IBM) 50 projects with 38 SME’s (opportunity to move to incubators ) MiQro Innovation Collaboration Center Ctr. for Health Informatics, Analytics (CHIA) • IBM & Sherbrooke U., Dalsa & Bromont Microelectronics R&D + commercialization • $218M investment (Fed & Quebec) • IBM & Memorial University • Health Solutions, Big Data Analytics (incl. SPOR) • $30M in IBM investment CARET • IBM & Atlantic Post secondary schools • Analytics curriculum, training, research Includes IBM Global Delivery Center 500 jobs Ocean Networks Canada • IBM with Smart Oceans British Columbia • Marine sensors & safety, env’tal stewardship • $1M IBM investment Southern Ontario Smart Computing Innovation Platform 2.0 (SOSCIP 2.0) 2.0 • • • • Expanding to all Ontario Universities, Colleges, Partners Mining, Digital Media, Cybersecurity & Adv. Manuf. $20M Fed awarded to SOSCIP Expand to over 80 projects (8 applications in queue) Southlake Wellness Ecosystem • IBM & Southlake Health Center, Seneca, UOIT • Health R&D/commercialization in York Region $65M+ IBM additional investment Grow skills base and focused HQP Grow business incubation footprint Drive commercialization efforts Atlantic Canada/ New Brunswick / McCain • IBM & U of New Brunswick (Q1 Labs - skills) • Agribusiness, employment, educ., risk mitigation IBM’s Role in the SOSCIP Innovation Ecosystem IBM BGQ Canada’s #1 Supercomputer Dedicated state of the art High Performance Computing and Big Data IBM to Stage and Provide and Support Globally Leading and Unique HPC Platforms: • Simulate Real World • Complex system modeling • Fast design and prototyping • Real time analysis/response IBM Advanced Analytics Cloud IBM Agile Computing Site Large Memory System True Collaboration with Focus on Research Outcomes High value cross disciplinary analytics skills Governance and Cross Team Support Academic Leaders Research and Innovation Outcomes Research Framework on Economic Priorities Analytics Curriculum Assets IBM Small-Med Enterprises IBM’s role: • Platform Specialists • Project Mgmt Expertise • Mentors • Collaborators/Funding • Research Assets and IP IBM’s role: Campus Job Related Ontario Training Opps • • • • • Curriculum & Training Internships Job creation Mentors Academic Programs Board of Directors Scientific Advisory Committee Agreements and Frameworks Cross Team Collaboration IBM Canada Innovation Ecosystem: Timing is right to take advantage of opportunity IBM CRDC as true innovation collaboration partner: • • • • • • Academia, Gov’t and Industry Partners with IBM as model collaboration partners Researchers are indicating the infrastructure is speeding up research by years Discussion moved from ‘procurement’ to ‘partnership’ Developing special collaborative relationships and leveraging to incubators and other government sponsored initiatives Initiates a strong platform for growth Leverages our R&D investments - for competitive advantage What’s Next? Continually Assess Approach Commit and Engage Focus on Outcomes 12 SOSCIP & IBM Blair Adamache, Project Executive and SAC Member IBM Canada R&D Centre June 24, 2015 OCE-SOSCIP Networking Forum adamache@ca.ibm.com Research Delivery Framework Key Activity The Research Governance Framework has three key goals: Project Selection Project Start-up Target Outcomes Issue Call for Proposals and select projects that align to Consortium research themes and selection criteria Prepare team and agreements 1. Select Projects that leverage HPC to drive social and economic benefit HPC Platform Project Checkpoints Onboard to Consortium hardware and software Perform activities in statement of work with six month milestone checkpoints 2. Support projects towards delivering clear outcomes Commercialization Package outcome and selectively prepare offering to take to market 3. Highlight and leverage best project practices and cross-team assets. Skills Build new skills and promote technology adoption in Big Data and High Performance Computing Cross Team Collaboration Highlight and leverage best project practices and cross team assets 14 SOSCIP Confidential Smart Meters Analytics (Ryerson) A. Miranskyy, A. Miri, A. Bener, and M. Davison (Western) DB2 Streams (real-time) Central Smart Meters Data Repository, e.g., IESO Big Insight (offline) • The problem: predict electricity usage, but keep data secure • The solution: near-real time analytics with smart meters data Secure model for prediction of energy consumption at a household level Analyst: sees prediction, but not the historical Smart Meters data