Today, consumers, businesses and governments are united in their sense of urgency about the sustainability of the planet. But how do we go about achieving it? In this episode of Smart Talks, Malcolm talks to Marc Rolfe, Senior Vice President and Head of Strategic Partners Ecosystem Success at SAP, and Jason Kelley, General Manager, IBM Strategic Partners, about how strategic partnerships between companies can create a larger industry shift toward sustainability. This is a paid advertisement from IBM.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Everybody. Its Robert and Joe here today, and we ve got something a little bit different share with you, it's an
the addition of the podcast Smart talks with IBM, which is produced in partnership with IBM
in this season of smart talks with IBM, Malcolm Gladwell, will sit down for chat with thought, leaders and industry, innovators from IBM and beyond
Splore. What it means to look at today's most challenging problems in a new way, look out for new episodes of smart top
with IBM every month on the ice, radio, app apple podcast. Wherever you get your PA,
cast and learn more at IBM dot com, slash Smart talks, hello, hello! This is smart talks with IBM podcast from Pushkin industries,
I already have and IBM about what it means to look at today's most challenging problems in a new way mountain Babel.
this episode, we're going to dive into sustainability and specifically how customers in businesses want to decrease their carbon footprint and verifying that their efforts are accurately calculated I'll, be digging into this topic, with Jason Kelly General manager?
IBM strategic partners. It's the data that in the system, it's the data that in our partners, capabilities such as s, eighty that's from the source, all the way to consumption.
where there's more data, which are always will be.
There's more insight and there's more progress. You may remember Jason Kelly from his conversations with Jonathan Strickland of text of in earlier episodes of smart talks. Jason is working closely with us
The partners like us, AP to think of creative solutions for businesses to measure and offset their environmental impact,
I will also be speaking with Mark Ralph senior vice president head of strategic partners partner.
ecosystem success as helping people
making progress from a manufacturing perspective and our applications and services from four messy paean IBM help make that much more transparent prior to his current role mark served as global vice president responsible for ecosystem innovation and once worked as the good
Google account director for me together will discuss the ways businesses can work together and use technology like blockchain to create
more sustainable operations with more so
anti about their actual impact and footprint. That's daddy! You mentioned your partnership, I'm an outsider to your world, namely, I would have thought. Aren't you guys competitors? Why? What hey? What what's going on here, then I would have thought that you too would be added
roads, and it said your teacher, you talking you're, like your old friends, we can talk about a bit about the role of these kinds of strategic partnerships.
the little boy heritage year of collaboration between the two companies, but the two requests
and I think you know, I think what the realisation, at least in our industries in others they did the amount
a collaboration of these exist today. Everyone cannot do everything and you need to focus, and so
Saint Pierre, you now just taking the example baby unless they pay the collaboration of the biggest
are. The collaboration. From my perspective is how do we ability to run our platform and our application for specific industries like we ve been talking about ass if he has a very good technology basis for for many industries over twenty seven industries?
but the special sauce comes in from companies like I'd be under, have the expertise from their services divisions around enhancing and invested class mutations of our technology,
those industries. So pretty- and I know how brain that subject matter- refugees in making a very relevant financial perspective and building on top of essay platforms. With that that expertise is he.
Huge piece of our business. We will never invest in that type of expertise. We rely on our ecosystem and then in this example IBM and let them that's been the basis of the success we ve got it well
Fifty years now between the two organisations yeah? What is it that collaboration? Look like
Minister literally in office from both organisations where people go together and they grew talking about utilities are. Is there a t made up of people from both organisations that are travelling together to exceed accustomed? To answer yes,
got a couple clients IBM and as a p sitting down around a table activist
How do we work with where you are to get to where you want to be and what are the best and best prioritize steps you can take to get their yeah? I think that the best minutes by Malcolm is that, in a way of teams that company
the other and and look at what the market really is. What our customers really asking actually working together between IBM recipe with customers to build
solutions number one and then
they ve done the market and go talk to that. Is that the larger set of customers in particular industry or particular region together? So we actually look at the whole life cycle between how we innovate together and build the solutions with input from actual costs,
where's all the way through the sky and that in any global fashion? So it is
collaborative setting them
we really have and that nothing that's part of what mail from a technology perspective. Many technology companies are really understand. The ecosystem is the real power out there in a working with partners, working and Calabrian together to to really advanced goals, whether sustainability or other initiatives yeah chasing. Can you talk about how many partnerships in this
in sustainability world as IBM have through we look across hours. We have up to twelve active
partnerships across our strategic partners, but that would be limiting just to look at our largest clients, because within those they are other eagle
system players specific to wear
They are in a geography and by industry, and so
we're only limited to extend.
We can be inclusive that that that number of players in that ecosystem. So that's why
I demand an open type of
platform that allows these players to come together,
you can do it on one type of technology can do it at one cloud and this
where d? You know you your question about: don't you compete?
Of course, we do in times are things that we the, but the opportunity
for the tides? Derisory boats is bigger than us fighting in what would be perceived as a zero sum game, because it's not in fact that
The challenge is now Malcolm, are so complex that one company by itself chant solve that problem
So when you hear say you know yet
Sustainability is a team. Sport is not just because it's a cool way to say it. It's the truth requires all of us. We want to talk today about sustainability and I use the word gets bandied about a lot and I wanted to
start with the two of you telling me, what is your definition of that word? That I'll jump
in IRAN. I think of sustainability.
I believe that is real,
asked in transparency.
Making sure that we ass humans have a plan.
it's going to be there now and in future, by employing methods that can be practiced by everyone in a way that is self sustaining the one I think us
then ability, I think, of you- know, organizations trying to make a better place for them for the future generations of our planet. When I think about,
is. How do we make it better? Now we start progressing towards a better planning and making the world better
I think this is another question, but when I think of that word, the first people to come to my would be in our airlines. Automakers
people who have obvious large carbon footprints. Who are
making things that are highly energy, intensive that in our you could be God give the reasons. Tell me why tech companies such as yours,
also need to be, as mindful of that
DE mountaineer question started with easing of people?
and
your example went straight to airlines.
and
again, there is is part of what we see is
important as it it's a b to pee type of operation, business the people were
people all of us, and so that's the first thought, as we are trying to make sure that were taken care of each other, and so, if we think of people being the centre,
we formalised our efforts at IBM in the seventies, say: look we want to be forward thinking and environmental management for decades
the common we have and
where we see that commitment being made? Is it what if we can do
it together and not alone. That's as a mere with Markham, proud to say. We see it the same way with regard to an ecosystem, and it takes all of us working
the other, because sustainability is truly a team sport. I think what what we see from ass. They pay off
from our side we are very focused on supporting transactions.
cross, most of the of the enterprise business and the world. Seventy percent of the world's trade,
actions run through our systems. Those are true:
that support product, the manufacturing of product and the roll out of problems. So we think about my perspective,
where we are very interested in making sure that those manufacturing practices, the design practices around those products are efficient, are transparent and are ethically progressive.
in a way that these companies are manufacturing or running their businesses, so so that, from our perspective, it does I back the people, but we take a step back and look at the products that are being manufactured or the services being offered to people and how we can be more transparent around that. For me, sustainability perspective. Can you give me an example mark
What you're talking about? Yes, so everything about a manufacturing for I'm in
of the data that goes into design a product to actually building a product, and I actually distributing a product as a peace systems. Along with our partners like, I began
we put together applications and our overall systems that monitor that data that allows the companies to build, manufacture and distributors.
so we have visibility into how companies
actually distributing manufacturing these products? We can make make that much more transparent
start to measure the progress that making us certain sustainability goals and and start to
to really drive a conversation, sustainability around a product or a area. So I think that's kinda what we see around whether a circular economy in terms
Understanding greenhouse effect on manufacturing ability,
if certain customers of or if we look
overall carbon neutrality goals setter people making progress from a manufacturing perspective and our applications and services from from ass if he and idea help make that much more transparent. If I, my client, a customer of yours, I'm interested in addressing this issue, one place, I might look for guidance- would be the kind of data that will come from yours
Software is what you're saying, if you, if you think about the overall like value chain of of what we deal with it from a customer's those manufacturers and consumers,
etcetera, we're allowing that value chain. Can we impact you know I'm stainable goals and and drive towards more transparency to improve upon those? So that's really what we're looking at more perspective.
Jason, can you talk a little bit about ivy ends,
position at all of this Windows IBM as a company start thinking seriously about this issue and how big of a transition is it in the priorities of the company we ve been doing
As for decades, with regards to
making sure that we focused on the environment, the returns that we get our clients again and working across it
system as a shit formalised. Nineteen, seventy one say: look: this is a priority for our companies.
and
we just announce our latest commitment,
which is, as you have gas emissions by twenty thirty. We did this
just at the beginning of this year so
that's the commitment that we recently made, but
called out something here that key and more
yeah, it is thought of data. It's the data.
It's in the system is the data that in our partners, capability such as S, AP, that's from the source,
the way to consumption
there's more data which are always will be
there's more insight,
more progress, progressively more data, more care
aberration,
there is even more insight which gets faster progress in. So
Our position in this is to say look. Can we create open platforms of innovation, because
borrow from New Malcolm that's. Where innovation
comes in and desperate situations from the David and Goliath examples you desperate
you reach out you say: look. How can I find
that innovation and its through this collaborative technology
Ultimately, it is the consumer. It is asking for this
no. This because consumers now forty percent,
other consumers, our per
driven before the pandemic and nodded
Fifty seven percent, their purpose driven mean companies with a purpose their driving. After things,
a jazz sustainability
can you talk a little more or less in concrete terms, what does a focus on sustainability mean for IBM? You citizen,
new focus, but is it fair to call it a renewed focus? Our I would say that share Malcolm and I would say that renewed for
in a new era of capability and
One place worth spending a lot of time and effort nets, along with our partners as a Microsoft,
and others were receiving less in vast World Business Council for sustainable development. As
they pull together. Many of our partners.
And those are other other clients which is the dolls.
Lastly, shells of the of the world
who are also raising their hand in this renewed, as you said, the sense of sustainability and what's
really keen now. Is it okay? If we're going to pay attention to
carbon emissions and carbon foot, how we document at how do we do that with trust and transparency in that ecosystem of value?
it's not just that linear supply chain. But how do we account for all of us?
data in that value chain, and so companies like this,
yells and an exile
the dolls bs out of the world, are seen. How do I
count for that with trust and transparency and we're investing that with
new technologies that are on
such as a I or even more.
Jane that says, listen, how can I share data with trust, and this is where it comes in. If you can't trust the data,
How can you make sure that we are counting for carbon credit
How do you know? Those are real credits? How do you know those credits are accountable for IBM of recipe
so, I'm an airline?
I want to buy carbon credits to offset my footprint harm and the question arises. How can I be sure that I am accurately?
running for my own consumption and I'm in the marketplace is correct
measuring the. What the offset looks like how how its price
How we would ever it is. What you are saying is someone has to do that kind of has to produce that data verify that data exchange that data on that's, which does what you guys are thinking about. Is that a fair summary? Let's that's what
that's doing. That's exactly, I think, that's a very important point that a what what
I hear on the market places as about goals right stain ability goals in the future? I think there is a need to be a kind of a ship them entirely that
We can do this now we are doing this now we have applications that are you know, tracking the stated
You mentioned the airline industry think about the about the airline industry supplier, the of side of that of the procurement side, of that companies need to start putting together. Procurement goals, relate to sustainability and have applications and systems that track private
against those procurement girls, wherever the measure that progress? So that's that's happening today.
I will get much stronger, is as Jason mention when, when you Brian Smart Technology.
like I and other technologies that will make that even more for progressive, so its aid is
in today's? I would say: goals are important, but we can actually start doing something to language ethics even more important. Can you give me an exam
What concrete example, I'm interested instead of the nuts and bolts of this is actually going too fast it in question. Can you pick a kind of protection
early, either hard or interesting case study and tell me
What are some of the challenges from your end in providing this kind of data coming up with it, terrifying it providing it
Why did they from our side and one example, if you think about a utility company and their legacy
way of managing their suppliers, verses where they need to be a very, very much asylum view from from providing information to and from those suppliers closed system.
that does not allow much transparency or even accuracy and in what are able to actually provide to measure eagle, there's nothing in place that has done
before right. So now we're pulling out applications that actually now take a look at those suppliers understand where things are coming from. Have they been ethically manufactured in our enviable again to trace that through that the value chain that Jason I weapon talking about and be able to understand every step of the way and be able to track that data and interact track that process throughout that the entire value chain? I think that's something very concrete, especially that enables the posting teams and the suppliers, whereas they do to improve efficiency and visibility, round
curious supply chain operations and serves the foundation for those procurement goal. So kind of it is a new way of driving transparency more these utility companies that have tons of suppliers for their their manufacturing plants for their their energy plants etc and be able to report publicly that that those are sustainable practices
leveraging to improve the operation or supply chain capabilities. Except her against that. That sounds like a really complex problem. Some he's got a power plant which might be fifty years old and making it up but conceived of and built in an era when we weren't thinking about computers on every everyone's pocket. You ve got hundreds of thousands.
Of customers, you ve got- I mean the I'll, even know what kind of on the other end of it, the number of suppliers
they're gonna, have in every corner of the world summit, has been an entire life, trying to figure out how proud that some have right. That's that's exactly it. That's the power of what I think a technology company again,
location, technology, company and innovation copy like ass, deeply and IBM from the table, the expertise around an industry like utilities there
The M brings the table. You know it is something that we are trying to reinvent business models based on new technology and take those fifty year old plants. Those fifty year old systems and modernized
they got all starts with leveraging things that we didn't have and applying technology to that to have much more of a transfer,
and an overall view of the data of the systems of how that thing is built of those parts. Again, that's what were companies like IBM Recipe, another
are trying to do in these in his very old industries that need about prevention and welcome
I've got a hit on you, your example there, because you use you ask for something concrete, the others the city's upon sees. You complain
dad you s or international you're gonna get a Chattanooga men than the: U S, dirtier cities, nineteen, sixty nine and then all the way
Twenty years later it was a cleaner city, okay, so it can happen. But how does it happen at scale and we think concrete would give one
one one example, starting from the other side of a pandemic,
and here we had a challenge across industries of just coming up with something we can address it with a vaccine.
And try and figure out. How could we possibly do quicker better
master in any way that we ve ever done before and it took-
a lot of time and effort to sit down and say with with the likes of of
fires or, along with S AP, on the back and by the way working with us
and how do you? How do you change the way this is gonna be developed and pushed through the supply chain? We have the challenge of then going through
the levels of domestic with the? U S federal
state local governments to get dispersed, and then we
the challenge of Saint, whose tested and whose receive a shot, and how
Prove that you ve received a shot in that example. I crossed industries. I've
cross multiple lines of private public situations in there,
it was to keep people alive. Now,
I ve, been carbon credits,
no one does anyone have a sense of urgency debate would with a vaccine. Some do some doubt, but if it's that challenging with a vaccine,
and a global pandemic. How do we do with something it's called sustainability? Well, it starts with
What are we seeing with the data data tells us is what do we address? We address it with the carbon
it's in carbon emissions and then whose whose accountable for what based on trust it data yeah. Those two examples: you talk about one covered vaccine to utilities, utilities his heart, a problem from your end, like units, not a technology forward industry, you ve got state regulators like dealing with, so you fifty some. I different re debate, which date you and you have a whole different maze. You ve gotta work through, I mean with the vaccine you're talking about three multi national.
the twenty first century, companies using a brand new, the best platform known to man versus seventy rolled and whatever that you know in fifty different states chasing and elusive,
that they may not me, I'm bored, I bingo
Why is it behind?
the times in many cases and in need
diversification as well as modernization is it now you have yourself.
Competing platforms
How do I leap frog? Some things are old or new and we're we're ready to celebrate a fifty year relationship with us, a pay your. Why is because, as a p continues to evolve and that's what
in that year example Malcolm, how else to evolve
and get to where you goin than with with trusted partners that, in that this part, I do feel like it
commercial, but I know that it takes more than just the essay, Peas and IBM.
Takes the others in the ecosystem to make that leap frog from where they are to where they have to go? And I think it's not just about the the company's we're talking about here is
it's the technologies that are allowing thus enabling Us- because you know- maybe if you really, I mean the pace of it
Asian that's happening out there with things like AI, in machine learning and all that aren't Abraham
other things that, though we couldn't do five years ago. So I think I think that the technology piece of this and so much larger discussion
but you can't understand, though there is a huge enabler that wasn't there.
Now. Five years does, I said it had just it's gonna ex continue to increase.
the innovation pace here and our opportunity.
In the very complex industries, like you like, imagined around utilities, a mandate that you rightly right- it's a tougher ya wanna talk a little bit about blockade,
and I and its role in all of this. What do we want? What do those two particular technologies bring to the table here? Blockchain? The bottom line is a trusted platform to share data amongst many players.
in real time. That's it share data in atrocity way, and
You can do that in this, this thought of whose carbon
it is at hand where does it sit on the ledger of carbon credits? Now you do that so that it a high the insight
so we started thinking about augmented intelligence or, as some like call, artificial intelligence, now
You can use that to process and look at all this data that we couldn't before it took us
lot of time and effort, so it was just too high or hurdle to jump over, not only that
but now we can sense and predict ahead of time before something happens. If you put those two together trusted data, which is the fuel for I M doing it at scale
That's when you say: okay, we are in a new place, the play, and you have some place. You can pull that data.
if you could just to have someone that was touching those those companies,
from the source all the way to consumption. So it sounds to me, though, that what you're saying is this kind of thing your envisioning now would have been all but impossible.
five or six years ago. I'm here am I hear you when you're nodding mark you down,
as I mentioned before me again, going back the utilities industry. We can't do this virus
she was, and I think that's why I think technologies enabler when things like watching the gay I like machine learning,
This is all changing the landscape of that they are the possibility if we don't transform what we're doing by leveraging these technologies as neighbours were what we're not gonna, make it
so I think that the key thing here is that and that's why I come from a technology background where
These things are real their happening now they weren't here five years ago and they are making a big difference. If we really want to accelerate this, we need your past the division of of goals that setting Emily start to implement a sea change in some
these things, because it is possible that, in your ass re, wasn't around five years ago was impossible five years ago, and I do so
in another five years. What one is this really going to advance into submitting this huge opportunity here? Yeah, so looking ahead five years, I give you a magic wand. You can change one thing to make your life easier. What would it be was the biggest impediment that you could in a perfect
I would remove at all. I think, for my perspective, engage about to hear you say man, it's not the technology,
I think we know where the technologies that will leave us. If people, how can people open up
the more open mind to think differently, because even us,
on these issues and again we talk a lot. I tell. Is there not thinking differently, they're just trying to operate their businesses and the way they have been for four years? We need its culture as people's changing. I guess that brings us back to behave. Our conversation is really is about people and making sure that people changing the way people think about these things.
and seeing the attitude and I would agree it's there- the trust and culture change. It would be like
you trying to head out from where, where we are today, Malcolm and
I'm gonna get a ride share, but you call a dispatcher like. Are you kidding me, you know you, you don't use it. You just click on your phone, so,
its changing in the process and in doing it with trust on the flip side. What's been the unexpectedly the easiest part of this campaign, if you want to call
Just it any case, any reason why that was a loaded question, the easiest, the easiest part
is acknowledging that there is a challenge, I think in Britain,
together. The different players that have to play
I love my Theseus part but the most exciting part to see the passion behind the semi mean now
at least allow innovation. I know when I Bianca's views very, very similar in the way we think about this there's so much passion.
behind this met and people to understand what these technologies can do are really pushing the envelope so that I think that if you do
You know how to convincing. If anybody is the right thing to do, they see that the air, the possibility- and I think that that is a very strong opportunity- will thank you so much. This is then like so many. This comes there since I've had with IBM Ibm and friends, which is really what this has been. The suspicion. Fascinating and
and I really thank you for your time. Arrival thanks a lot, Malcolm and and always marked thank you both
conversation really appreciate appreciate it
you again to Jason Kelly and Mark Ralph for joining me, it feels promising to hear about these efforts from IBM an essay p and how these partnerships create a larger industry shift towards sustainability.
smart talks with IBM is produced by Emily Rostock with car.
Big Liore and Catherine, Gerardo edited by Karin Scheele, Kaji mixed and mastered by Jason, Gambro music by Kramskoy, special thanks to Molly Sosa any Kelly meal of L, Jacob Iceberg had a faint, Eric, Sandler, Maggie Taylor and the teams at eight bar and IBM Smart talks with IBM is the production of Pushkin industries, and I heart radio, this
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Transcript generated on 2022-02-27.