On the Path to a Smarter World
Content
On the Path to a Smarter World
Introduction: Analytics plays an increasingly important role in the daily operations of data centers, businesses, building controls and governmental agencies worldwide. This paper discusses some of the ways IBM solutions are making this happen.
Contents
Smart meters and smart grids ...................................................................................................................... 1 Smarter datacenters ..................................................................................................................................... 2 Smarter buildings .......................................................................................................................................... 3 Smarter cities ................................................................................................................................................ 3 Optimized cities, buildings and data centers ................................................................................................ 5 IBM analytics ................................................................................................................................................. 6
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 1
Analytics is being used in data centers, buildings, and municipalities to provide streamlined, proactive services. The deeper understanding of daily operations that analytics provides enables companies and governments to address problems that stretch across their systems, and makes it easier for them to simplify infrastructures and reduce costs. Early adopters of analytics – both companies and governments – are already getting significant value from such tools, achieving visible results in areas such as infrastructure simplification and costreduction. Just as importantly, the insights they have drawn from their new ability to examine data are identified as significant contributors to both growth and innovation. Data centers now build efficient technology roadmaps that can be adjusted in real time to meet the changing demands of the businesses that they serve. Businesses can address problems that span even the largest enterprises. Buildings use power and cooling more efficiently. Public utilities improve operations by increasing the life of expensive assets, and by dispatching work crews when they are needed and providing them with optimized routing. Police departments anticipate public safety issues before they happen, and address them proactively rather than simply responding to problems as they occur. Other operational groups deploy solutions more rapidly and are able to drive a greater return on project investment through streamlining operations and through improved asset reuse. Data centers, buildings, and even cities have become, at last, smart. Companies prosper, consumers see lower costs, and public safety improves.
How is this happening? Smart meters and smart grids Companies have been gathering data for decades. Until recently, much of that data has done little more than collect in boxes or on computer tapes. Today, new technologies – smart meters and smart grids – provide a different category of data: real-time data streams. The ability to collect, analyze and act on real-time data stream opens up new opportunities for controlling and optimizing environments in a broad spectrum of environments including data centers, commercial buildings, and even homes.
Today smart meters measure, collect and analyze data on electric, gas, heat and water use. They differ from more traditional meters in two important aspects. First, they interact with thermostats and other electric appliances in home area networks, both reporting on changes and, increasingly, managing the smart devices as well. Second, this two-way digital communication between the consumer and the utility takes place in real-time,
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 2
Optimizing Operations CenterPoint Energy, one of the largest combined electric and natural gas delivery companies in the US, needed to streamline their operations so as to provide services in a more efficient manner to their 5 million customers. Previously, the company would routinely dispatch field staff to read meters and record information at residences and businesses, a method that was inefficient both in its use of personnel and because the data that was available was often several days out of date. They wanted a more advanced meter reading system that could simultaneously reduce management workloads and provide usage data more easily and in a more timely manner. In 2008, CenterPoint installed 10,000 smart meters, which transmit data on energy usage back to the central office in real time. At the same time, they implemented a comprehensive, end-to-end meter monitoring and management system based on IBM technology. This provided the utility with a centralized monitoring system that gives insight into both consumer usage and the general health of the network, and which provided an accurate view of the customer experience. The company further leverages its smart grid by remotely activating and terminating service without the need to dispatch field teams. By automating the data collection and service activation processes, the utility has cut operating costs, reduced the number of employees needed in the field, and has achieved faster problem resolution and, as a consequence, higher customer satisfaction levels. Using insights gained from its improved meter reading capabilities, CenterPoint is making more informed decisions regarding its daily operations, and has an information base on which you can develop new products and services.
providing the utility with information that is always current so it can track changes in demand (amongst other things) and make changes before problems occur. This network of smart meters connected to a central control point overlays the public utility electrical grid with an information system, and is termed a "smart grid". With this in place, information on conditions is immediately available to system users, operators and automated devices, making it possible to respond dynamically to changes in grid conditions. This in turn enhances the ability of both consumer and utility provider to save energy, reduce cost and increase reliability.
Smarter datacenters Moving IT service into the cloud represents a profound shift in the IT consumption model, with users accessing services only when they are needed and paying only for the services that they use. This "utility" model, which closely parallels the on-demand model seen in the public utilities sector, is highly efficient if service providers can ensure that necessary assets will be available when needed. Providers of cloud-based services need to make sure their infrastructure supports this on-demand environment so they can deliver contracted
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 3
service levels to their customers in an optimal fashion. IBM Tivoli provides a broad set of intelligent management solutions that incorporate predictive analytics to help managers align IT operations to business priorities. IBM Tivoli Monitoring, IBM Tivoli Netcool/OMNIbus, IBM Tivoli Network Manager, and IBM Retrofitting a Building for Improved Power Efficiency Tivoli Business Service Manager are now enabling the shift from A good example of retrofitting to improve power use and energy traditional reactive IT efficiency can be found at IBM's facility in Rochester Minnesota, an extremely large interconnected complex of 35 office buildings that management techniques to the covers 3.2 million square feet, and which houses test labs, proactive management that manufacturing facilities and a worldwide data center. Complementing service providers need in order to conservation initiatives that were already in place, IBM retrofitted the ensure contracted service levels existing workplace to make smarter buildings by installing highefficiency instrumentation and advanced sensor and metering to their subscribers. Smarter buildings Both economics and environmental pressures drive the need for increasing energy conservation in the world's buildings. New facilities are being built to take advantage of deep analysis of real-time data flows in order to moderate power and other utilities usage to maximize operational efficiency. But corporations don't have to build new structures in order to become more energy-efficient. Smarter cities
technology. A common data repository consolidates data from the building management system, from electrical meters, from advanced asset management software, and from outdoor temperature and humidity gauges. For example, the company integrates information from 87 of the site’s largest and most heavily used air handling units, as well as information about lighting and perimeter heating in three buildings. Facilities managers get immediate insight into valve and damper positions (are they open or closed?), motor operations, temperature and speed, and other equipment and environmental parameters. Next, the company applies IBM data analytics and optimization software to measure and record operational performance against a set of rules they have already defined, highlighting variances as they occur. If a variance is detected, a service request is automatically generated and appropriate personnel are notified. So far, results are impressive. Energy consumption and carbon emissions have been reduced an estimated 5% year-over-year. Annual equipment operating costs have been reduced by 8%. Asset reliability and lifespan has been improved. Staffing operational costs have decreased due to streamlining the identification, diagnosis and resolution of problems. Equipment is more reliable and lasts longer, and staff operates more efficiently. As a result, the current phase of the project is being expanded to include operational data from a total of 254 air-handling units. Future phases will incorporate data from hundreds of other facility assets, including boilers, compressors, chillers, pumps, steam traps and air cooling towers.
Cities all over the world are using real-time data collection and predictive analytics, making themselves smarter, safer, and more efficient. They do this by leveraging information to make better decisions, to anticipate problems and to resolve those
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 4
problems proactively. As a result, they are able to coordinate resources so that they can operate more effectively. Many cities apply IBM’s deep analytics to data from several sources: real time data streams, existing repositories of structured data, and large amounts of unstructured data (records of emails, videos and chat room interactions) that until now could not have been analyzed within the context of other available information. Applying statistical data exploration and machine-learning techniques to large datasets of historical information – including even seemingly innocuous variables such as Smarter Cities the World Over weather conditions – they can then use advanced Cities and metropolitan districts worldwide are adding intelligence to their operations in order to deliver improved services faster and with greater dashboards and data efficiency. For example: visualization techniques to help them uncover previously Washington, DC uses customer and usage analytics, work management analytics, predictive maintenance analytics, and automated project and hidden relationships within work crew scheduling to ensure its sewer department delivers services the disparate data, which in efficiently, maintains equipment and pipes, and dispatches repair teams and turn allows them to uncover equipment in an optimal manner. This includes predicting failures (and thus hidden patterns, minimizing outages), predicting demand, optimizing the way assets are used, and anticipating customer behavior. Results include improvements in associations, correlations and revenue forecasting, capacity planning, emergency response, use of work trends, and to anticipate crews, and strategic planning, to name only a few. events.
The City of London in the UK uses analytics in the area of public safety. It takes streaming data from traffic control and other cameras, adds that to data already on hand from a variety of sources (police data, of course, but also traffic control information and weather data, plus a wide variety of unstructured data such as emails and other monitor traffic), and applies deep analytics to understand relationships between disparate data sets and as a result, to either improve response times to emergencies or, in some cases, to preempt emergencies altogether. As a result, they can better predict hotspots and crime trends, can deploy resources proactively, and make for generally safer communities.
Many cities have gotten smarter and safer by using analytics to analyze crime patterns, giving their agencies have real-time information and improved situational awareness. A city’s operational groups can better predict hot spots, identify crime trends, and plan for impending emergencies. Police can now view and observe crime as it happens, and can review surveillance video in response to incident reports. By reviewing the volumes of data collected on incidents the departments are improving efforts in resolving false allegations, are
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 5
getting deeper insight into unsolved crimes, and have more success identifying possible suspects. More efficient deployment of municipal resources and faster response times when problems do occur are the most obvious result, but even more important is the fact that being proactive in the way municipal services are dispatched saves lives and helps cities build safer communities.
Optimized cities, buildings and data centers Managers of cities, buildings and data centers apply analytics to their business needs because it gives them the chance to move from traditional reactive management models and take a more proactive approach, one that lets them preempt problems rather than resolving them, and that helps them identify and plan for opportunities rather than just waiting for them to appear. Day-to-day operations easily feed into the strategic planning process. Available data strongly indicate that companies employing analytics are measurably more efficient than those companies that do not,1 and are much further along on their road to business optimization. Such organizations are able to improve their competitiveness because they can: Optimize the use of limited resources Improve the efficiency of operations, and thus reduce costs Plan proactively, rather than reactively Implement dynamic workload scheduling Increase visibility to assets and operations Fix things before they break Predict what will happen before an event actually occurs.
1
IBM research: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at http://public.dhe.ibm.com/common/ssi/ecm/en/gbe03263usen/GBE03263USEN.PDF
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 6
IBM analytics IBM is driving analytics research and development in all of these areas. In addition to the products mentioned in this paper, IBM analytics solutions also include:
SPSS One of the most widely used group of solutions for predictive analytics and statistical analysis; Cognos Business intelligence solutions; Netezza A provider of appliances and advanced analytics used in data warehousing, business intelligence, predictive analytics and business continuity planning; InfoSphere A platform for data warehousing, information integration, data management and big data analytics.
This white paper was sponsored by IBM. Publication Date: November 3, 2011 This document is subject to copyright. No part of this publication may be reproduced by any method whatsoever without the prior written consent of Ptak Noel & Associates LLC. To obtain reprint rights contact [email protected] All trademarks are the property of their respective owners. While every care has been taken during the preparation of this document to ensure accurate information, the publishers cannot accept responsibility for any errors or omissions. Hyperlinks included in this paper were available at publication time. About Ptak, Noel & Associates LLC We help IT organizations become “solution initiators” in using IT management technology to business problems. We do that by translating vendor strategy & deliverables into a business context that is communicable and actionable by the IT manager, and by helping our clients understand how other IT organizations are effectively implementing solutions with their business counterparts. Our customers recognize the meaningful breadth and objectively of our research in IT management technology and process. www.ptaknoel.com
About the Author Mike Karp is Vice President and Principal Analyst at Ptak/Noel, an industry analyst and consultancy firm, where he leads the infrastructure analytics and storage management practices. He focuses on issues associated with driving efficiency into IT operations, and has a particular interest in how technology intersects with business operations.
----------- © 2011 Ptak, Noel & Associates LLC -----------
Introduction: Analytics plays an increasingly important role in the daily operations of data centers, businesses, building controls and governmental agencies worldwide. This paper discusses some of the ways IBM solutions are making this happen.
Contents
Smart meters and smart grids ...................................................................................................................... 1 Smarter datacenters ..................................................................................................................................... 2 Smarter buildings .......................................................................................................................................... 3 Smarter cities ................................................................................................................................................ 3 Optimized cities, buildings and data centers ................................................................................................ 5 IBM analytics ................................................................................................................................................. 6
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 1
Analytics is being used in data centers, buildings, and municipalities to provide streamlined, proactive services. The deeper understanding of daily operations that analytics provides enables companies and governments to address problems that stretch across their systems, and makes it easier for them to simplify infrastructures and reduce costs. Early adopters of analytics – both companies and governments – are already getting significant value from such tools, achieving visible results in areas such as infrastructure simplification and costreduction. Just as importantly, the insights they have drawn from their new ability to examine data are identified as significant contributors to both growth and innovation. Data centers now build efficient technology roadmaps that can be adjusted in real time to meet the changing demands of the businesses that they serve. Businesses can address problems that span even the largest enterprises. Buildings use power and cooling more efficiently. Public utilities improve operations by increasing the life of expensive assets, and by dispatching work crews when they are needed and providing them with optimized routing. Police departments anticipate public safety issues before they happen, and address them proactively rather than simply responding to problems as they occur. Other operational groups deploy solutions more rapidly and are able to drive a greater return on project investment through streamlining operations and through improved asset reuse. Data centers, buildings, and even cities have become, at last, smart. Companies prosper, consumers see lower costs, and public safety improves.
How is this happening? Smart meters and smart grids Companies have been gathering data for decades. Until recently, much of that data has done little more than collect in boxes or on computer tapes. Today, new technologies – smart meters and smart grids – provide a different category of data: real-time data streams. The ability to collect, analyze and act on real-time data stream opens up new opportunities for controlling and optimizing environments in a broad spectrum of environments including data centers, commercial buildings, and even homes.
Today smart meters measure, collect and analyze data on electric, gas, heat and water use. They differ from more traditional meters in two important aspects. First, they interact with thermostats and other electric appliances in home area networks, both reporting on changes and, increasingly, managing the smart devices as well. Second, this two-way digital communication between the consumer and the utility takes place in real-time,
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 2
Optimizing Operations CenterPoint Energy, one of the largest combined electric and natural gas delivery companies in the US, needed to streamline their operations so as to provide services in a more efficient manner to their 5 million customers. Previously, the company would routinely dispatch field staff to read meters and record information at residences and businesses, a method that was inefficient both in its use of personnel and because the data that was available was often several days out of date. They wanted a more advanced meter reading system that could simultaneously reduce management workloads and provide usage data more easily and in a more timely manner. In 2008, CenterPoint installed 10,000 smart meters, which transmit data on energy usage back to the central office in real time. At the same time, they implemented a comprehensive, end-to-end meter monitoring and management system based on IBM technology. This provided the utility with a centralized monitoring system that gives insight into both consumer usage and the general health of the network, and which provided an accurate view of the customer experience. The company further leverages its smart grid by remotely activating and terminating service without the need to dispatch field teams. By automating the data collection and service activation processes, the utility has cut operating costs, reduced the number of employees needed in the field, and has achieved faster problem resolution and, as a consequence, higher customer satisfaction levels. Using insights gained from its improved meter reading capabilities, CenterPoint is making more informed decisions regarding its daily operations, and has an information base on which you can develop new products and services.
providing the utility with information that is always current so it can track changes in demand (amongst other things) and make changes before problems occur. This network of smart meters connected to a central control point overlays the public utility electrical grid with an information system, and is termed a "smart grid". With this in place, information on conditions is immediately available to system users, operators and automated devices, making it possible to respond dynamically to changes in grid conditions. This in turn enhances the ability of both consumer and utility provider to save energy, reduce cost and increase reliability.
Smarter datacenters Moving IT service into the cloud represents a profound shift in the IT consumption model, with users accessing services only when they are needed and paying only for the services that they use. This "utility" model, which closely parallels the on-demand model seen in the public utilities sector, is highly efficient if service providers can ensure that necessary assets will be available when needed. Providers of cloud-based services need to make sure their infrastructure supports this on-demand environment so they can deliver contracted
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 3
service levels to their customers in an optimal fashion. IBM Tivoli provides a broad set of intelligent management solutions that incorporate predictive analytics to help managers align IT operations to business priorities. IBM Tivoli Monitoring, IBM Tivoli Netcool/OMNIbus, IBM Tivoli Network Manager, and IBM Retrofitting a Building for Improved Power Efficiency Tivoli Business Service Manager are now enabling the shift from A good example of retrofitting to improve power use and energy traditional reactive IT efficiency can be found at IBM's facility in Rochester Minnesota, an extremely large interconnected complex of 35 office buildings that management techniques to the covers 3.2 million square feet, and which houses test labs, proactive management that manufacturing facilities and a worldwide data center. Complementing service providers need in order to conservation initiatives that were already in place, IBM retrofitted the ensure contracted service levels existing workplace to make smarter buildings by installing highefficiency instrumentation and advanced sensor and metering to their subscribers. Smarter buildings Both economics and environmental pressures drive the need for increasing energy conservation in the world's buildings. New facilities are being built to take advantage of deep analysis of real-time data flows in order to moderate power and other utilities usage to maximize operational efficiency. But corporations don't have to build new structures in order to become more energy-efficient. Smarter cities
technology. A common data repository consolidates data from the building management system, from electrical meters, from advanced asset management software, and from outdoor temperature and humidity gauges. For example, the company integrates information from 87 of the site’s largest and most heavily used air handling units, as well as information about lighting and perimeter heating in three buildings. Facilities managers get immediate insight into valve and damper positions (are they open or closed?), motor operations, temperature and speed, and other equipment and environmental parameters. Next, the company applies IBM data analytics and optimization software to measure and record operational performance against a set of rules they have already defined, highlighting variances as they occur. If a variance is detected, a service request is automatically generated and appropriate personnel are notified. So far, results are impressive. Energy consumption and carbon emissions have been reduced an estimated 5% year-over-year. Annual equipment operating costs have been reduced by 8%. Asset reliability and lifespan has been improved. Staffing operational costs have decreased due to streamlining the identification, diagnosis and resolution of problems. Equipment is more reliable and lasts longer, and staff operates more efficiently. As a result, the current phase of the project is being expanded to include operational data from a total of 254 air-handling units. Future phases will incorporate data from hundreds of other facility assets, including boilers, compressors, chillers, pumps, steam traps and air cooling towers.
Cities all over the world are using real-time data collection and predictive analytics, making themselves smarter, safer, and more efficient. They do this by leveraging information to make better decisions, to anticipate problems and to resolve those
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 4
problems proactively. As a result, they are able to coordinate resources so that they can operate more effectively. Many cities apply IBM’s deep analytics to data from several sources: real time data streams, existing repositories of structured data, and large amounts of unstructured data (records of emails, videos and chat room interactions) that until now could not have been analyzed within the context of other available information. Applying statistical data exploration and machine-learning techniques to large datasets of historical information – including even seemingly innocuous variables such as Smarter Cities the World Over weather conditions – they can then use advanced Cities and metropolitan districts worldwide are adding intelligence to their operations in order to deliver improved services faster and with greater dashboards and data efficiency. For example: visualization techniques to help them uncover previously Washington, DC uses customer and usage analytics, work management analytics, predictive maintenance analytics, and automated project and hidden relationships within work crew scheduling to ensure its sewer department delivers services the disparate data, which in efficiently, maintains equipment and pipes, and dispatches repair teams and turn allows them to uncover equipment in an optimal manner. This includes predicting failures (and thus hidden patterns, minimizing outages), predicting demand, optimizing the way assets are used, and anticipating customer behavior. Results include improvements in associations, correlations and revenue forecasting, capacity planning, emergency response, use of work trends, and to anticipate crews, and strategic planning, to name only a few. events.
The City of London in the UK uses analytics in the area of public safety. It takes streaming data from traffic control and other cameras, adds that to data already on hand from a variety of sources (police data, of course, but also traffic control information and weather data, plus a wide variety of unstructured data such as emails and other monitor traffic), and applies deep analytics to understand relationships between disparate data sets and as a result, to either improve response times to emergencies or, in some cases, to preempt emergencies altogether. As a result, they can better predict hotspots and crime trends, can deploy resources proactively, and make for generally safer communities.
Many cities have gotten smarter and safer by using analytics to analyze crime patterns, giving their agencies have real-time information and improved situational awareness. A city’s operational groups can better predict hot spots, identify crime trends, and plan for impending emergencies. Police can now view and observe crime as it happens, and can review surveillance video in response to incident reports. By reviewing the volumes of data collected on incidents the departments are improving efforts in resolving false allegations, are
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 5
getting deeper insight into unsolved crimes, and have more success identifying possible suspects. More efficient deployment of municipal resources and faster response times when problems do occur are the most obvious result, but even more important is the fact that being proactive in the way municipal services are dispatched saves lives and helps cities build safer communities.
Optimized cities, buildings and data centers Managers of cities, buildings and data centers apply analytics to their business needs because it gives them the chance to move from traditional reactive management models and take a more proactive approach, one that lets them preempt problems rather than resolving them, and that helps them identify and plan for opportunities rather than just waiting for them to appear. Day-to-day operations easily feed into the strategic planning process. Available data strongly indicate that companies employing analytics are measurably more efficient than those companies that do not,1 and are much further along on their road to business optimization. Such organizations are able to improve their competitiveness because they can: Optimize the use of limited resources Improve the efficiency of operations, and thus reduce costs Plan proactively, rather than reactively Implement dynamic workload scheduling Increase visibility to assets and operations Fix things before they break Predict what will happen before an event actually occurs.
1
IBM research: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at http://public.dhe.ibm.com/common/ssi/ecm/en/gbe03263usen/GBE03263USEN.PDF
----------- © 2011 Ptak, Noel & Associates LLC -----------
On the Path to a Smarter World
Page 6
IBM analytics IBM is driving analytics research and development in all of these areas. In addition to the products mentioned in this paper, IBM analytics solutions also include:
SPSS One of the most widely used group of solutions for predictive analytics and statistical analysis; Cognos Business intelligence solutions; Netezza A provider of appliances and advanced analytics used in data warehousing, business intelligence, predictive analytics and business continuity planning; InfoSphere A platform for data warehousing, information integration, data management and big data analytics.
This white paper was sponsored by IBM. Publication Date: November 3, 2011 This document is subject to copyright. No part of this publication may be reproduced by any method whatsoever without the prior written consent of Ptak Noel & Associates LLC. To obtain reprint rights contact [email protected] All trademarks are the property of their respective owners. While every care has been taken during the preparation of this document to ensure accurate information, the publishers cannot accept responsibility for any errors or omissions. Hyperlinks included in this paper were available at publication time. About Ptak, Noel & Associates LLC We help IT organizations become “solution initiators” in using IT management technology to business problems. We do that by translating vendor strategy & deliverables into a business context that is communicable and actionable by the IT manager, and by helping our clients understand how other IT organizations are effectively implementing solutions with their business counterparts. Our customers recognize the meaningful breadth and objectively of our research in IT management technology and process. www.ptaknoel.com
About the Author Mike Karp is Vice President and Principal Analyst at Ptak/Noel, an industry analyst and consultancy firm, where he leads the infrastructure analytics and storage management practices. He focuses on issues associated with driving efficiency into IT operations, and has a particular interest in how technology intersects with business operations.
----------- © 2011 Ptak, Noel & Associates LLC -----------
