Around the Corner

I recently wrote about the SmartGrid. Did you know the US is not the only country planning a SmartGrid? The European Union (EU) is also planning a SmartGrid. In fact, the European Commission, the executive branch of the EU, is taking some very important steps to update its electrical transmission and distribution systems. The European Commission sponsors the European Technology Platform for the Electricity Networks of the Future (ETPENF) and leading investors in ten EU member countries sponsor the Desertec Foundation.

When it comes to the production, transmission and distribution of electricity, sustainability matters. ETPENF aims to increase the efficiency, safety and reliability of EU transmission and distribution systems. Efficient, safe and reliable electrical systems means better managed systems. Desertec plans to harvest wind and solar energy from the deserts of North Africa for transmission and distribution to the EU. And for tomorrow, sustainability will require well managed electrical transmission and distribution systems supplied by renewable resources.

A nation's abililty to produce, transmit and distribute electricity has become recognized as part of its global competitiveness. You might remember I previously wrote about the World Economic Forum's (WEF) Global Competitiveness Report (GCR) and Global Information Technology Report (GITR). Both the GCR and GITR include electricity supply in their assessments. GCR in Institutions, Infrastructure where the US ranks 16th for quality and the GITR in Environment, Infrastructure where the US ranks 8th for production.

In July the WEF in partnership with Accenture released Accelerating SmartGrid Investments, a new report that nicely defines the SmartGrid and discusses barriers to implementation and their solutions. The report indicates that electricity production, transmission and distribution require better alignment of regulatory and policy frameworks. Today, the regulatory environment lacks incentives for private sector investment in carbon capture, reliability and security on electrical grids. Tomorrow, the regulatory environment will need to reward risk for investment in emerging technologies that help make the grid smart and distribute that risk among producers and consumers. SmartGrid investments under the American Recovery and Reinvestment Act help to reduce that risk.

Cities will serve as as catalysts for SmartGrid investments too: Boulder, Colorado and Austin, Texas are already smart grid cities. And GSA's Public Building Service Office of Sustainable Design leads Federal agencies with investments in high performance green buildings that meet the LEED standard and incorporate sustainable design into Federal workplaces because Sustainability Matters.

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On the afternoon of Thursday August 14, 2003 some 50+ million people in eight states and the province of Ontario lost power. Known as the Northeast Blackout of 2003, this event was the largest blackout in North American history. According to Scientific American, the blackout caused 11 deaths and cost approximately $6 billion.

The events that caused the blackout have been investigated and we've learned that the electrical power grid on which we depend for necessities like lights and heat is really quite fragile. The grid barely meets our current needs and, because it is based on 20th century technologies, our ability to manage it is limited.

As a response to what we learned from events like the Notheast Blackout of 2003 and as a key step toward energy independence, the American Recovery and Reinvestment Act contains funding for the SmartGrid Investment Grant Program under the Department of Energy's Office of Electricity Delivery and Energy Reliability. The SmartGrid is an update of the 20th century power grid with 21st century technology. Smart metering, reliable and secure transmission and clean energy generation are all part of the SmartGrid.

So how do we create the SmartGrid with updated 21st century technologies? As Federal CTO Aneesh Chopra remarked in his recent speech at the Churchill Club in Silicon Valley, while there's a lot of work to be done, the government's most appropriate level of influence is to support a collaborative approach to standards that will ensure we have a level playing field to deliver game changing innovation.

Standards serve as both a mechanism to constrain costs and as a platform for innovation. Although this statement may seem to be a paradox, collaborative, or open, standards can achieve both by creating the right kind of competition. That is, competition based on delivering better features that give consumers choice in products as well as encouraging mobility and interoperability across producers. Broad participation by producers, both social and economic, as well as the transparent nature of an open standard drives game changing innovation. And open standards bodies remove or reduce barriers to entry (like membership fees) and publish standards openly so social producers can compete with economic producers on a level playing field.

Smart consumers will benefit from standards. IEEE 802.15.4-2003 is one such standard. It is used to specify the physical layer and media access control for low-rate wireless and personal area networks used in home automation devices. On the SmartGrid, home automation devices using smart metering based on IEEE 802.15.4-2003 will inform smart consumers when they can save money on their electrical bill. Imagine a consumer who uses their mobile phone to display smart metering information from their personal area network to avoid peak load costs. Smart!

As a CIO, standards are all around me. They are the DNA of our operations. When applied well, open standards allow Federal agencies to reduced costs and as a platform for innovation.

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Last year when I started Around the Corner I promised a place where we could challenge some of our assumptions, explore something new or discover something unknown. Out of Control: The New Biology of Machines, Social Systems and the Economic World by Kevin Kelly is the second in the list of Gary Hamel's essential reading for management innovators. It presents a wonderful opportunity to challenge, explore and discover.

Kelly, previously the founder and Executive Editor of Wired Magazine and member of the Board of the Long Now Foundation, imagines a world for us in which biological principles can help to enable human collaboration. For instance, the typical organizational structure is very hierarchical and top-down driven. But Kelly suggests a beehive model might be informative for our modern knowledge economy. The members of the beehive do not have formal roles and responsibilities, but each member makes a contribution. The beehive as a whole is adaptive, distributed, and organic. Likewise, a spider web is a useful model to describe the interrelated nature of suppliers, employees, customers, and stakeholders in today’s complex organizations. These and other systems in nature don’t generally follow a centralized hierarchy, but instead work through networks of cooperation. In some cases the group seems to possess a kind of knowledge that surpasses the individual intelligence of any one member. Consider migrating geese. None of the flock have made the trip before, yet somehow the flock knows its migration path from hemisphere to hemisphere

Another of Kelly’s key ideas is that complex systems work best when they grow incrementally: “The only way to make a complex system that works is to begin with a simple system that works. Attempts to instantly install highly complex organization without growing it, inevitably lead to failure..... Time is needed to let each part test itself against all the others...."

Out of Control is not a quick read, but it is a thoughtful book that challenges the reader to think about future possibilities. As technology professionals we know from what we experience every day that success requires careful attention to every detail and that progress is slow and most times really quite laborious. Possibilities are endless in Out of Control. It is worth the reading because we're too often led to exclude possibilities rather than wonder what's Around the Corner.

It's on my bookshelf and I hope you have the time to add it to yours!

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