The article I read was titled “IT Innovation: Robots, Supercomputers, AI and More” by Meredith Levinson, CIO. The article focused on how by using new elements of IT businesses were able to increase productivity and decrease cost. Five companies were profiled to show how they used IT to achieve these means.
The first company profiled was Monsanto. They created software that helped to identify genes in plants that would, “indicate a plant’s resistance to drought, herbicides and pests;”. By implementing this research they were able to find, “a commercially viable combination of genetic traits from one in a trillion to one in five”. They started this research because one of their products, Round-up, a weed killer, was losing its patent. This is also enabled breeders to save costs and produce healthier products, as they were not using as many chemicals in growing their product. The technology used was done on both a Windows system and a Linux system. Their ROI was significant as, “earnings per share on an ongoing basis grew from $1.59 to $2.08, or 30 percent, from 2004 to 2005. Its EPS is expected to grow by 20 percent more in 2006.”
The second company profiled was JEA, a public utility. They created a neural network that, “automatically determines the optimal combinations of oil and natural gas the utility’s boilers need to cost-effectively produce electricity given fuel prices and the amount of electricity required”. This shift in developing this technology came about when gas prices started to increase, as “forty percent of JEA’s”, budget goes towards purchasing gas and oil. The technology is called “optimization software” and what it does is maximize the amount of oil and gas needed to maintain operations while at the same time minimizing emissions. JEA was the first utility to use this type of software and due to their innovation, which cost, “$800,000 and paid for itself in eight weeks”, they were able to reduce the use on Natural Gas by, “15 percent”, and save an estimated, “$4.8 Million dollars”, and they estimate saving “13 Million” in fuel costs”.
The third company profiled was Goodyear Tires. They partnered with an IT company to test tires virtually. Their main reason behind this was to improve the time it took from testing the tires to getting the products on the market. In developing this software Goodyear has decreased cost of goods sold by, “2.6 percent from 2003 to 2004”, and decrease R&D costs on tires by, “25 percent”. The software was built for Goodyear and the, “math required in order to model a tire on a computer is as complicated as that needed to simulate a nuclear explosion, which is why Goodyear partnered with weapons researcher Sandia.”
The fourth company profiled was NOAA’s Undersea Research Center, NURC. This project cost just, “$70,000”, and, “constructed the network infrastructure to connect NURC’s Key Largo office with its laboratory near a coral reef on the ocean floor, nine miles off Florida’s southern tip”. The previous infrastructure only allowed for choppy communications and frequent break ups in the lines. This new system allows for crystal clear communication and virtually streaming video. The, “video streams have gone from 30 second delays to 3 second delays” and Astronauts in the international space station in theory can now talk to the Aquanauts once this part of the system is in place. The main reason for this project was to facilitate better communication and to provide the research industry and the public with a better understanding of what they were doing so that receiving funding in the future would hopefully be easier.
The fifth and final company profiled was the Ohio State University Medical Center (OSUMC). They replaced their, “overhead rail transport system with 46 self-guided robotic vehicles to move linens, meals, trash and medical supplies”, throughout the hospital. They looked into this process as revenue for the hospital was decreasing and they were looking at ways to cut costs. The robots, “are guided by a wireless infrared network from Cisco Systems. The network is embedded in corridor walls and elevators designed for the robots’ use”. OSUMC was the first hospital in the U.S. to do this and while the system cost $18 Million it, “is expected to save the hospital around $1 million a year over the next 25 years.”
This article shows that through innovation and IT, a company can get a return on their investment no matter what the industry. As technology continues to evolve so should all of our industries in the U.S. if we are to remain on the cutting edge in the ever increasing global economy.
Company Links:
The first company profiled was Monsanto. They created software that helped to identify genes in plants that would, “indicate a plant’s resistance to drought, herbicides and pests;”. By implementing this research they were able to find, “a commercially viable combination of genetic traits from one in a trillion to one in five”. They started this research because one of their products, Round-up, a weed killer, was losing its patent. This is also enabled breeders to save costs and produce healthier products, as they were not using as many chemicals in growing their product. The technology used was done on both a Windows system and a Linux system. Their ROI was significant as, “earnings per share on an ongoing basis grew from $1.59 to $2.08, or 30 percent, from 2004 to 2005. Its EPS is expected to grow by 20 percent more in 2006.”
The second company profiled was JEA, a public utility. They created a neural network that, “automatically determines the optimal combinations of oil and natural gas the utility’s boilers need to cost-effectively produce electricity given fuel prices and the amount of electricity required”. This shift in developing this technology came about when gas prices started to increase, as “forty percent of JEA’s”, budget goes towards purchasing gas and oil. The technology is called “optimization software” and what it does is maximize the amount of oil and gas needed to maintain operations while at the same time minimizing emissions. JEA was the first utility to use this type of software and due to their innovation, which cost, “$800,000 and paid for itself in eight weeks”, they were able to reduce the use on Natural Gas by, “15 percent”, and save an estimated, “$4.8 Million dollars”, and they estimate saving “13 Million” in fuel costs”.
The third company profiled was Goodyear Tires. They partnered with an IT company to test tires virtually. Their main reason behind this was to improve the time it took from testing the tires to getting the products on the market. In developing this software Goodyear has decreased cost of goods sold by, “2.6 percent from 2003 to 2004”, and decrease R&D costs on tires by, “25 percent”. The software was built for Goodyear and the, “math required in order to model a tire on a computer is as complicated as that needed to simulate a nuclear explosion, which is why Goodyear partnered with weapons researcher Sandia.”
The fourth company profiled was NOAA’s Undersea Research Center, NURC. This project cost just, “$70,000”, and, “constructed the network infrastructure to connect NURC’s Key Largo office with its laboratory near a coral reef on the ocean floor, nine miles off Florida’s southern tip”. The previous infrastructure only allowed for choppy communications and frequent break ups in the lines. This new system allows for crystal clear communication and virtually streaming video. The, “video streams have gone from 30 second delays to 3 second delays” and Astronauts in the international space station in theory can now talk to the Aquanauts once this part of the system is in place. The main reason for this project was to facilitate better communication and to provide the research industry and the public with a better understanding of what they were doing so that receiving funding in the future would hopefully be easier.
The fifth and final company profiled was the Ohio State University Medical Center (OSUMC). They replaced their, “overhead rail transport system with 46 self-guided robotic vehicles to move linens, meals, trash and medical supplies”, throughout the hospital. They looked into this process as revenue for the hospital was decreasing and they were looking at ways to cut costs. The robots, “are guided by a wireless infrared network from Cisco Systems. The network is embedded in corridor walls and elevators designed for the robots’ use”. OSUMC was the first hospital in the U.S. to do this and while the system cost $18 Million it, “is expected to save the hospital around $1 million a year over the next 25 years.”
This article shows that through innovation and IT, a company can get a return on their investment no matter what the industry. As technology continues to evolve so should all of our industries in the U.S. if we are to remain on the cutting edge in the ever increasing global economy.
Company Links:
Monsanto: http://www.monsanto.com/monsanto/layout/default.asp
JEA: http://www.jea.com/
Goodyear: http://www.goodyeartires.com/
Sandia: http://www.sandia.gov/
NOAA’s Undersea Research Center, NURC: http://www.uncw.edu/aquarius/
Ohio State University Medical Center: http://medicalcenter.osu.edu/
