Trends in TechnologyAGA/EEI Accounting Leadership Conference

Joe Laethem June 29, 2005

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Accenture

Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 110,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. Its home page is www.accenture.com.

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Agenda

Five Core Disciplines Utilities Technology Take-up Curve Major trends in 2005-2007 Infrastructure Current Situation World Class IT Infrastructure Emerging Technologies

o SmartDust /Remote Sensing Infrastructureo Silence Commerceo Mobilityo Sentiment Monitoring Serviceso Human Performance

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High performance in five core disciplines

Innovation

Industrialization

Infrastructure

Integration

Information

Infrastructure

Replacing technology with better technology

Strategy enabling innovations

Labor cost arbitrage

Cycle time focused delivery

Predictable and repeatable

Business productivity innovations

Cross enterprise service oriented architecture

BasicBasic ProgressiveProgressive PioneeringPioneering

Enterprise integration

Point integration solutions

Real time insight

Business intelligence

Transaction data efficiency

Dynamically provisioned and externally secure

Internal on-request

Consolidate and standardize

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Utilities Technology Take-up Curve

Incubate

Rat

e of

Gro

wth

Take UpGrowth MaturityEmerging “State of Market”

Mobile & Wireless

Scaling

Ubiquitous Computing

Predictive Operation Arch

Performance Arch

Web Services

Storage & Database TechSecurity

Enterprise Integration Arch

Next Gen Networks

Business Intelligence

Content Mgmt

Portals

Tech Infrastructure & Optimization

Silent Commerce/RFID

Advanced Metering (mass market)

AMR (mobile, mass market)

Narrowband PLC

Asset Telemetry/Remote Sensing

Distributed Generation

Hydrogen Economy

Insight Driven Operations

Broadband over Powerline (BPL)

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Major trends in 2005-2007

Consolidation

No new thing

Pricing declines continue

Hardware replacement cycle moderating

Software growth moderate, except in specialty areas

Growth slowing in most major technology sectors

Risk averse buying

Focus on enhancements

Procurement driven deals

Possible LAN upgrade next

No major builds; security, BI and HR top spending

9% increases in opex; 15% in capex; 25 to 35% in compliance, M&A and security

Supply Side TrendsDemand Side Trends

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Major changes in growth and share of technology sectors continuing

High-end Enterprise Servers

Mid-range Enterprise Servers

Volume ServersNetwork Equipment

PCs

SRM

CRM

HR

Finance

Middleware

Security

BI

DBMS

Monitoring

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

2003 Share of Total Infrastructure Market (%)

2001

- 20

03 G

row

th (%

)

Mainframe losing share to networked computing

Specialized software far outpacing growth in integrated enterprise applications

Security riding high but likely to crash as it becomes like airbags to cars

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Recent Accenture CIO research on adoption rates in key technologies

61%4%22%13%Virtualized storage

9%

35%

41%

23%

26%

41%

23%

18%

Starting

a pilot

4%30%57%RFID

39%22%13%XML Document and workflow

23%36%18%Open source applications

14%36%9%VOIP

13%17%35%Linux

41%5%14%Wireless for workforce

46%14%18%Enterprise integration tools

55%23%5%Web services

Committing a major part

of our business

Doing

Nothing

Starting to

investigate

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Infrastructure Current Situation

Infrastructures in most organizations are overly complex … IT budgets have been reduced and most organizations have not been able to

effectively capitalize on recent advances in technology... New business demands are requiring flexibility and adaptability around the IT

infrastructure…

Business Computing Flexibility Cost Reduction Mobility Flexibility

Demands Web Presence, eCommerce / B2B Virtual Enterprise ROI Simplified Integration AgilitySecurity Implications on B2B Virus Protection Mobility

Industry PCs, Client/Server, The Internet Intel Economics Web Services VirtualizationTrends Unix / Windows in the Data Center Enterprise IP, WiFi Linux Utility Computing

Security / Patch Mgmt

Typical IT Frenetic, unplanned Cost cutting RationalizationActivity Infrastructure deployment Infrastructure neglect Consolidation Virtualization….

Internet Firewalls Firewalls become Mainstream

1993 1997 2001 Today

Most organizations are operating in catch-up mode to the technology

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Data Center

(WAN)

(LAN)

Workplace

Operations& Security

Network

LVI

2004 2005 2006 2007 2008

Virtualization

Consolidated & standardised Utility Data Center Utility Computing

Point to point

MPLS All IP Enterprise on demand

(Voice & Data)

Copper /FibreWireless

Desktop

Laptop

PDA Thin client/wireless devices

Manage and servicingwithin the Data Center

Manage and servicinga full mobile workforce

outside the firewall

Operations & Security – Moving to full mobility, virtualization will place greater challenges to operations and is redefining security functions – the firewall was the boundary. Security evolution will place greater emphasis on architectural design, business process engineering, and business owners of technology solutions.

Workplace – With working environments and functions moving out of the traditional environments, end-user devices will become “thinner” and customised to the business function supported – thus continuing the pendulum effect of Fat vs. Thin Client evolution.

Network (LAN) – Moving towards widespread wireless connectivity will be required to enable true mobility computing capabilities.

Network (WAN) – To take advantage of utility computing capabilities, flexible and variable bandwidth capacity will need to be made available from the carriers with a dominance of IP bandwidth capacity combining Voice and Data.

Data Center – Virtualization and dynamic provisioning will lead to a Utility Computing model.

World Class IT Infrastructure

A World Class IT Infrastructure will be one that achieves the objective of being agile, flexible and scalable

Consolidated & standardised Proactive Ops

Self Defending Enterprise

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Emerging Technologies

Sensor Telemetry / SmartDust-

Remote Sensing Infrastructure

Digital Pen & Paper-

Field Force Enablement

Silent Commerce / RFID-

Automated Asset Management

+

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SmartDust and Self-assembling, wireless sensor networksSelf-assembling wireless sensor networks combines sensors, computing, and communications at a smaller scale than previously seen in the industry

The hardware design consists of a small, low-power radio and processor board and one or more sensor boards - a “networkable” wireless sensor.

Build-in software runs the hardware and network—making sensor measurements, routing measurement data, and controlling power dissipation.

Over the next 3-5 years, Self-assembling wireless sensor networks motes are expected to shrink to a significantly smaller scale, drop in price dramatically, and become an ubiquitous commodity component.

< Millennial NetMulti-hop networking20-40 meter range per node115 kb/s data rate2.8 x 2.3 x 0.5 cmΛ Berkeley

Working prototype of Self-assembling wireless sensor networks mote

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Accenture Technology Labs’ Remote Sensing Infrastructure

The goal of our proof of concept is to demonstrate that gathering in real-time key viticulture variables delivers business value through more effective management of Soil, Irrigation, Disease, Pest, Nutrition, and Climate control.

Sensor Type Units

Air/Soil Temperature

3 air3 soil

Soil Moisture 17

Leaf Wetness 3

Anemometer 3

Rain Gauge 3

Insects type & count 1

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Application to Utilities

Mesh Network modules can be attached to or built in different Utilities’ assets to enable applications such as:

Automated Meter Reading

Street light remote monitoring

Electric poles maintenance and line monitoring

Equipment predictive maintenance

Tank Telemetry

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Automated Meter Reading

Low cost AMR deployment: Mesh-network enabled meters relay each other’s signals to a single connected neighborhood aggregator, reducing network hook-up cost. Signal can either be sent in real-time over a data network or collected wireless by driving within range.

Deeper reach: Mesh-network enabled modules can be used to monitor and/or control other home items such as security systems and appliances.

New services: Gathering of real-time data can be leveraged by the utility or third parties to provide end-customers value added services.

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Street light remote monitoring

Automated remote monitoring: Mesh-network enabled streetlamps relay each other’s status to a single connected neighborhood aggregator that can relay the data in near-realtime to a centralized server, providing a more effective alternative to manual inspection.

More insight: Mesh-network sensor modules can provide more insight into the nature and cause of the anomalies.

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Electric poles/pylons maintenance and line monitoring

Mesh-network sensor modules can be mounted on electric poles and pylons to relay status information that can be used to improve their maintenance as well as optimize energy transportation.

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Equipment predictive maintenance

Mesh-network sensor modules can be mounted on equipment to monitor temperature, vibration.

Data from sensors is transmitted wirelessly to a centralized data center where the data is compared to expected results, past performance and maintenance history of the equipment.

Abnormalities are reported to maintenance crews, often with expected solutions.

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Tank Telemetry

Active RFID are attached to the tanks’ gauge to relay the inventory level to a customer-site monitoring unit.

Monitoring units communicate readings back to the supplier central server using either a wireless data network (paging, cellular or satellite) or the wired internet.

An alerting mechanism triggers orders when tank level thresholds are met.

Scheduling deliveries are based on real time tank level information.

Client sitedata

aggregator / remote

monitoring unit

Supplier monitoring

server

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Silence Commerce: Key Tracking Technologies

The tag is powered by a small internal battery. However the tag goes to sleep if it is not within the decoder field, hence the life of the tag is typically 5 years. Longer range than passive tags, Lower cost than Active Tags. They can also monitor sensor inputs, such as the temperature of an item, without needing to be powered by radio waves.

Passive RFID

Semi-Passive RFID

Active RFID

GPS

Active Tags are powered by an internal battery. The tag will for the duration of its life, transmit a radio frequency (RF). Some active tags offer localization capability based on triangulation (RTLS – Real time localization System).Like for semi passive ones, they can also be used to monitor sensor inputs and transmit the readings.

Tags receive power from RF energy beamed by the interrogator and only transmit information when the RF energy activates the internal circuitry. Because passive tags rely solely on radio waves for power, these tags require no battery, can be made extremely small, are low in cost and have a long operating life.

Tags Readers

GPS uses a constellation of satellite as reference points to calculate positions accurate to a matter of meters. GPS receivers are embedded in a tracking unit that communicates the position back using a wireless network such as a cellular network or satellites for global coverage.

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Applications to Utilities

Equipment Management

Enforcement of safety procedures

Machine Operational Control Security Tracking, maintenance and Inspections of field assets

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Equipment management

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Enforcement of safety procedures

Workers are identified using RFID badges. Personal Protection Equipment (PPE) such as gloves, boot, hardhat and goggles are also tagged using miniature passive RFIDs.

When a worker enters a potentially hazardous areas or get into the proximity of products or equipment requiring specific PPEs, the RFIDs attached to the PPEs are read and compared to the requirements.

When heavy machinery is operated the driver’s identity is verified and his certification level, and alertness are checked in order to protect those operating as well as those around.

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Machine Operational Control Security

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Tracking, maintenance and Inspections of field assets

Rugged Button memory can be used to help track and monitor asset such as utility poles and pylons.  Vital  maintenance and repair information can be stored on the Button and easily accessed with one touch..

Button memory are rugged autoID designed for use and survival in harsh operating environments and with the ability to store up to 8MB of data. Some comes with built in sensors such as temperature, combined with a data logger.They are similar to RFID, but require contact to be read.

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Mobility: Research prototypes

Multimedia Response CenterAllows end users to use camera phones and other emerging portable multimedia devices to communicate with call center.

Digital Pen Captures records digitally while maintaining the ease of use of paper-based solutions and leaving a paper-trail for end-users.

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Digital Pen and Paper is how Reality Online is applied to ordinary devices we use every day.

• Digital Pen– An ink pen equipped with electronic sensors

to allow it to digitally capture what the Digital Pen writes and transmit it back to a computer.

• Digital Paper– A normal piece of paper with a unique

pattern printed in the background – Pattern allows the Pen to orient itself on the

paper, enabling it to understand where it is writing on the page

• 1000 Sensor Data Points Per Keystroke– Location, Speed, Pressure, Timestamp,

Inclination and Rotations• Always Connected

– Bluetooth or USB for syncing

Battery

Memory

Camera

Ink Cartridge and Pressure Sensor

BluetoothTransceiver

Processor

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Hand Written Form Translated Text

Character Recognition: Pen strokes are transmitted to the computer, and then translated to type written text.

Context: The Pen tells the computer what form/fields the text was written into for automatic filing/indexing.

Digital Pen technology captures both the content and context of written forms.

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Digital pen technology can be used in application requiring near-realtime feedback.

Hand Written Form

Bluetooth enabled phone

Bluetooth enabled pen( Nokia Mobile Pen)

Data center

Pen wireless Synchronization over Bluetooth

Form’s information sent to server

Server returns feedback via SMS to

cellular phone.

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Application to Utilities

Digital Pen & Paper Technology

Supply Chain CRM / ERP

Integration

Imaging Field Force

CoreCapabilities

Fleet management Inventory tracking Quality assurance / compliance

Near real-time field form submission into backend systems (ex. SAP, Siebel Integration)

Automated form submission

Remote form submission Remote invoicing Digital access to field reports Remote Quality Assurance Maintenance updates / tracking Quality Assurance / compliance Time Reporting

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Applications to Utilities

Remote ExpertiseSensors like wireless cameras could enable a remote expert to directly see the context in which the user is carrying out a tasks, and to provide guidance virtually step-by-step through a complex set of the tasks.

Wireless Networks

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Sentiment Monitoring Services

Sentiment Monitoring combines a search agent going over all publicly available data sources as well as subscription content and a perception engine to present users a gauge of the market perception of any feature, product, brand or organization.

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High Performance Visual Workspaces

Interactive visualizations can be used to explore large amounts of enterprise information simultaneously and provide insights to help optimize organizational performance.

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Other Utilities Applications

Weather damage prediction

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Human Performance: Enterprise Knowledge Retention

As workforces rapidly change, organizations are often left with critical knowledge gaps. This problem can be seen in many forms, across several different functional areas such as Succession training, On-boarding, Facility/office expansion, Workforce agility, Granular learning aids and Best practices dissemination. Our research explores how emerging collaboration technologies can provide an integrated set of tools to support the intense colleague-to-colleague interaction required for an enterprise knowledge transfer program.

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Wrap-up

• Performance, not cost, must be the IT end game• IT must re-think the production methods of the

business services factory• Supplier networks are assets, not liabilities• IT Transformation is not a codeword• Without performance metrics, IT agendas will stall• IT investment is not an event, but a way of life