CISCO SMART CITY
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IT STRATEGYTeam 3 : Yann Robyn, Pujan Motiwala, Rohit Bodhe, Shilpi Talukdar, Ashwani Dua
CISCO SMART CITY
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“What is a Smart City?
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Executive Summaryo Approximately 50% of world’s population
live in urban areas, a number which is expected to increase to nearly 60% by 2020.
o The need to leverage ubiquitous connectivity, big data and analytics that are enabling Smart City initiatives all over the world.
o IoT platforms that will reduce the time, cost, and risk - connect multiple systems in a city.
o Improving infrastructure, creating more efficient and cost effective municipal services, enhancing public transportation, reducing traffic congestion, and keeping citizens safe and more engaged in the community.
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Executive Summary
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Introduction
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CISCO - IoE (Internet of Everything)
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Corporate Strategy
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Corporate Strategy
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Business Unit Strategy
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Business Unit : IoT Solutions
Mission
Vision
Objective
Strategy
Value Statement
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IT Strategy
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MISSIONCisco smart city aims to pioneer Internet of Everything (IoE) into every home, street and community aimed at ensuring safety for
citizens and increasing energy efficiency.
VISION Be an industry leader in helping forge Smart Cities worldwide to
unlock technology innovation.
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OBJECTIVES
Applications
Technology
Infrastructure
Strategy
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What brings to Cisco to work on smart city projects?
o Expertiseo Trusted Partnero Knowledge transfer between Business Unitso Cost savingso Improved business capabilitieso Improved technical capabilities
VALUE STATEMENT
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Mintzberg’s 5 P’s StrategyPattern• Automate and analyze• Data Aggregation and
Transformation• Enterprise Analytics &
Reporting• Integration with available
products/services
Plan• Expand business
opportunities • Competitive advantage• Development of resources• Acquire new competencies• Build a network with
providers
Pattern• Building on legacy of
networking supremacy
• Innovate in-house products
• Acquiring smaller innovative companies
• Consolidate global presence
Position• Leader in developing
smart city• Cisco
Smart+Connected City has safety & security solutions
• Being the GO TO partner for networking solutions
Ploy• Gain trust based on
global reputation • Compete on price
(economy of scale)• Target emerging cities
as well as developed cities
• Market monopoly• Intellectual property
Perspective• Maintain a balance
between innovation and reputation
• Constantly improve other businesses
• Outsourcing +in-house talent development
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Business Strategy and IT Strategy AlignmentStrengthsEstablished networks marketGlobal presenceHigh financial credibilityNetwork of business partnersExpertise and insights in sensors, digital devicesMultiple revenue streams
WeaknessDirect dependence on suppliersDisruptive technology trendsRisk based approachLack of collaboration with other firmsNon-audit and assessment of current trends
OpportunitiesCapture the next wave of internetEstablish foothold in new businessesDevelop new expertiseReach various cities world to gain local insightsUtilize insights for different businesses
ThreatsCompetition: Investment firms, Auditing firmsNext wave of technology: bigger than Big DataSecurity of data and insightsTalent poachingVulnerability to attacks
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IoT Solutions - Business Unit Objectives
o Expansion to new clients (cities)o Leverage brand recognitiono Gain local insightso Trusted partnershipo Combine Talent + Opportunities
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Golden thread
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Implementation of a Smart City
Efficient crime analytics solutions identifies incidences of crimes amongst masses of data with help of Big data.
Capturing masses of data from Smart cameras, Smart lights and different monitoring sensors as well as social network and people.
And the victim can be alerted on the smart city app on phone or on wearable tech before crime occurs.
The Facial recognition with help of Artificial Intelligence can predict the criminal and the victim by real time crime analysis and with help of investing agencies.
Different sensors detect live traffic conditions & send data over network for analysis.
Analytics identify sudden changes in traffic conditions signalling likely traffic incidents.
Traffic flow patterns are monitored to identify congestion, update the traffic situational awareness picture & alert operator.
Safer streets and neighborhoodsas well as Improved road safety provides expertise on & branding for CISCO Smart City.
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Implementation of a Smart City
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Add Value to Cisco o HOW WILL IT ADD VALUE ?
o Expand our portfolio of competencieso Explore new market segmento Disruptive innovation
o WHEN WILL IT ADD VALUE ?When Cisco will really acquire expertise and brand recognition for developing smart cities.
o WHO WILL BE AFFECTED WITH THE ADDED VALUE ?o Citizenso R&Do Employment opportunities (International project)
o WHERE WILL IT ADD VALUE ?o Innovation Business Unito Extra perks with Government partnerships
o WHAT WILL HELP IN ADDING VALUE ?o Mergers and Acquisitionso Client endorsement and recommendations
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Five Principles for Delivering Value
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Business improvement & Competitive advantage
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IT Business Relationship
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Use of Information Management
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Use of Master Data Management
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Use of Big Data & Social Media
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Improve Customer Experience
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Use of Business Intelligence
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Compliance Impact & Needs
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● Console Access● Logging and Syslog● Terminal Access● User Passwords● AAA● AAA Accounting - Commands● AAA Authentication - Login
● Cisco respects and is committed to protecting customer’s personal information. CISCO privacy statements reflect current global principles and standards on handling personal information – notice and choice of data use, data access and integrity, security, onward transfer and enforcement/oversight.
● Part of the Global Export Trade team, the Strategic Product Group primarily directs and counsels product teams on export issues.
● The group also provides expertise on the export classifications of Cisco products to internal and external customers and to government agencies, as needed.
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Suppliers & Alliances
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Golden thread
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Process Structure
IT Governance“Governance means establishing accountability while creating a model that balances operational excellence and innovation to enable business growth. Like most large IT organizations, Cisco is a strong advocate of using industry frameworks.”
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IT Governance
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A handful of principles define Cisco’s IT governance objectives and keep IT focused on priorities:
1. Business value and quality of solutions 2. Globalization 3. Architectural compliance4. Security governance and compliance5. Operational excellence
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IT Governance: Risk Identified
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Risk Management Strategy: Disruption of Service
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Communication Plan for CISCO
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Professional assessment
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Smart City Strengths
Network InfrastructureGlobal OutreachRobust financial results
Weaknesses
Global EconomyDisruptive technology trendsDecline in traditional business (storage devices)
Opportunities
Develop new business linesExpand partner networkConsulting portfolio
SO Strategies
Partner with developing economiesInvest in emerging technology
WO Strategies
In-house pilot projectsAcquire emerging firmsEnhance in-house cloud storage/solutions
Threats
Data Governance PoliciesCyber attacksDisruption of Service
ST Strategies
Work with government agencies to develop policiesHire best talent + advance training to counter cyber attacks
WT Strategies
Develop agile framework to adopt latest technologies
Internal technology audit to manage controls/defenses
Super SWOT
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Ansoff Matrix
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Porter’s 5 forces
Industry Rivals
Buyers
Substitutes
SecuritySuppliers
New Entrants
Threat: Medium
Threat: Low Threat: Medium
Threat: HighThreat: High
Threat: MediumHigh Capital InvestmentTechnology ExpertiseGeographic Limit
High cost of servicesLaggard citiesLack of digital infrastructure
Upgraded sensor networkLack of trusted partnersLimited services
Enormous private/public dataHacktivistsData sharing and utilization
Drivers of smart citySupplier-chain monopolyHigh cost of equipmentSupplier poaching
Industry growth rateSize of competitorsExit barriers
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Smart Cities – IT Strategy
IT
Factors AS-IS TO- BE
People
Connections to the Internet via :
Devices – smartphones, tablets or PC’sSocial Networks – Facebook, Twitter, LinkedIn or Pinterest
Crime reporting via Social networks, alerts or manual reporting
Connections to the Internet will be dynamic with creative use of technology
Gartner: People will be nodes that transmit information.
Body sensors, smart apps, live reporting and monitoring via smart cities, homes and workspace.
Smart sensing of potential target zones and hot targets
Data
Use of data from various sources can be transferred to a platform such as IoT for processing or analysis
Smart evaluation of real time data is limited to response time from IoT servers
Data and analytics need clean data to show insights or decision supporting analysis
Smart cities will collect, transmit, analyze data on the go and drive insights into reducing crime
Connected things in smart cities will open up “Device Talk” to combine data and drive real-time insights
Faster decision making with smart information will allow for advanced tactical responses from law agencies to prevent, control or mitigate situations
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IT
Factors AS-IS TO- BE
Things
Makes up of sensors, consumer devices or assets that communicate with the internet
Smart data is not context driven
Sensors and collected data need an active internet connection to transfer and analyze data
Limited integration of sensors in equipments or daily use products – limits data monitoring and analysis
Smart sensors can be placed at various locations to track, monitor and update law agencies regarding issues or conflicts
Context aware devices will provide critical information regarding people, sustainable conditions, predict unsafe zones
Sensors built into structures such as bridges can provide vital information
Smart-sensing objects can be used to transmit real-time traffic updates with re-routing patterns
Processes
Digital cities have crime reporting processes that are dependant on human initiation
Safety concerns, governance processes and lack of support from law enforcement for victims
Processes do not maximize the potential of smart data or highly specialized devices ( FAA Unmanned Aircraft Regulations)
Processes combined with People, Data and Things focuses on unlocking potential of Smart Cities
Governance models to combat crime, increase awareness, ease of reporting via Device Talk
Well phased deployment plan to develop smart cities
Processes to prevent redundancies, mitigate risks, address security and privacy concerns and manage sensor outburst.
Smart Cities – IT Strategy
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Golden thread
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Market Analysis and Demand
“Smart City Market is Likely to be Worth a Cumulative $1.565 Trillion by 2020 “ -
IBM
26 global cities and 90 sustainable cities by 2020.
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Market Analysis and Demand
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Market Demand
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IT Service Design
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Cisco - Service Blueprint
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Smart City - Services
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Technology RoadMap
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Recent Technology Curve
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Smart Cities
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Smart Integration
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Smart Collaboration
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Business Model
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Business Model‘Tomorrow starts here’Improve safety in the citiesCitizens empowermentAvoid waste of energyBetter traffic managementAttract new people in cities Beneficial returns on city tax and commerceReal-time data analytics
BMC SoftwareCA TechnologiesCitrixDimension DataHitachi Data Systems (HDS)IBMMicrosoftOracleRed HatSAPVCEVMwareAccenture LtdCap GeminiAT&T ...
Network connection & accessSmart City SolutionDevelop infrastructureOperationResearch & Dev.Data ManagementMarketing
Consulting likeDedicated teamsCo-creation
Multi-products salesWebsitesMobile AppsSocial MediaGlobal Events PlatformHelpLine
Big cities (>250k inhab.)Public SectorCity innovation dept.Private firm
StaffIT infrastructureIntellectual propertiesBackup equipmentBrand/CultureLocal CompanyGlobal Outreach
Consulting, Auditing, Ads, Data Analytics, Gain Competitive Advantage, Sell data insightsExpertise to gain trust => so more customers, Sales Solutions, Software, H/W, Networking services, Subscription for extra services, Renting material
Cost of sales for products, Cost of sales for services, Operating expenses, Marketing expenses, Maintenance
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Business ModelSmart City as a Service
Monthly plan:● Monitor your house $5
o Intrusion Alert▪Send Notification to police around your
house● Traffic & Parking information $3● Get report on the city $2
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Business Model AlignmentDevelop expertise:o Network connection & accesso Tech. platformo Smart City Solutiono Operationo Research & Developmento Data Management & analytics
Be a differentiator:o Smart city as a serviceo Work with local company
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Functional strategiesMarketing Strategy
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Target marketo 1,900 cities throughout the world with populations of 250,000 or
moreo 26 excess 10 million inhabitants
o Assumptions on potential smart city deployments based on city size:
• 27% of the world’s cities are viable candidates for smart city solutions over the next 3 to 5 years.
• Global market opportunity of $7.5 billion of new annual revenues for technology vendors
• Small cities are ideal settings for pilot projects
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Marketing Mix Analysis
PRODUCT
Smart City Solution
Improve Safety & Energy consumption
Experience
Technology platform
Network
PRICE
Big project with consequent ROI
No big differences in pricing between competitors
PLACE
Multi- channel
Internet
Mobile App
Website
Wholesale
Cities meeting
PROMOTION
Use sales forces to convince cities
Create events to promote these solutions
Advertising
Recommendation
Show results from previous projects
PEOPLE
Dedicated Team
Management
R&D
Customer Service
Employees
PROCESS
Customer focus
IT Development
InstallationService delivery
Configuration
Training
Testing
PHYSICAL EVIDENCE
Previous smart city implemented
Previous project
Online experience
Sales
Buzz
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Value Proposition● City Management:
○ Quality of life indicators○ Environmental sustainability○ Economic development ○ Use intelligence and insight to build and operate municipal infrastructure.○ Create work
● Citizens: ○ Live in a safe community with access to all smart city services.○ Beneficial returns on taxes paid, reliable and useful services○ Cost saving (energy, transportation..)
● Enterprises in the City: ○ Location in an environment that supports and promotes prosperity○ New market, new opportunities => Productivity growth
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Market Segmentation● Geographic Segmentation
○ Psychographic/Demographic Segmentation■ Smart Security Systems
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Customer Satisfaction and LoyaltyCustomer satisfaction:
● Set customer expectation early
● Build trust
● Gain experience and reputation in the market
● Make interactive surveys & Use social media analytics to identify improvement areas
● Focus on customer experience
● Build customer loyalty
Customer loyalty:
● Reward customers
● Create loyalty program
● Follow up
● Have dedicated team
● Personalized services
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Functional strategiesFinancial
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Revenue predictionBaltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+
Revenue 2016 2017 2018
Tax revenues $4M $8M $12M
Monthly Subscriptions
$3.7M 5% of the population
$11.2M15% of the population
$18.6M25% of the population
Energy saving $2.6M $2.6M $2.6M
TOTAL (per year) $10.3M $21.8M $33.2M
TOTAL (over 3 years)
$65.3M
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Expense forecast on 3 yearsBaltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+
CAPEX
Build Wifi-Network (100% of the city) $9.2M
Buy Smart Street Light (LEDs+Camera) $9.6M
Operation Cost (Installation) $17M
TOTAL $35.8M
OPEX
Solution Platform(Data Warehouse+Analytics)
$3M/year
Cost of labor and materials $0.6M/year
TOTAL (per year) $3.6M
TOTAL (over 3 years) $46.6M 68
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Smart city revenue by solution
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Revenue RepartitionFor a project like Baltimore Cisco can make around $32M
per year for technology vendors and partnersTraffic incident management, smart lighting, smart parking, safety & security.
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Functional strategiesDelivery/Operation
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Distribution ChannelPhysical Channel:o Eventso Meetingo Infrastructure
Electronic Channel:o Websiteso Mobile Appso Social Mediao HelpLine
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Customer Service StrategyDifferentiation:o Customize our solution for each cityo Address specific customer needs (Focus)o Try to maintain the level of risk at the minimum
• Improved Security• Private networks• Multi-layer complex architectures
o Provide training for police dept. and people involved in the processes
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Human RessourcesStrategy: Reduce turnover through retention incentives and employee engagement
o Hire talents to develop and enhance solutions• Experienced people for the management• Fresh people for the innovation▪Develop key skills
o Hire and train people to provide free training for police & fire department
o Hire and train technicians to maintain the infrastructureo Offer competitive salary to avoid information leak and keep our
employeeso Empower employees
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Outsourcing
What?o Operation
• Construction▪Infrastructure▪Command
center• Equipment▪Smart light▪Cable
o Maintenance
Who?Choose trusted and local partners to avoid issues like:
• Weak infrastructure• Security issues• Delay in the project• Problem while doing
maintenance
Strategy: Outsourcing for operation efficiency
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Implementation StrategyRollout Plan
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Formulating Implementation Strategy
People Process Technology
“Every community is different, with different needs and different approaches. But communities that are making the most progress on these issues have some things in common. They don't look for a single silver bullet; instead they bring together local government and nonprofits and businesses and teachers and parents around a shared goal.” – President Barack Obama
Prio
ritiz
e G
oals
Project Scope and Phase
ProjectBoundaries & Timelines
Key Deliverables
ProjectOwner and Stakeholders
Conduct Feasibility Study +What are others doing? Lessons Learnt. Collaborate …
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Implementation StrategyPeople Process Technology
Project Scope and Phase
ProjectBoundaries & Timelines
Key Deliverables
ProjectOwner and Stakeholders
Current Stakeholders of Citizen Services –Crime Monitoring. interface with cities like Boston with real-time crime monitoring
ASIS – TOBE with high-level requirements.
Skills, Partners, Interaction with current infrastructure,Cybersecurity
Who is not impacted? What is not included - Criminal Court Processing. Timelines
Constraints Timelines , Pilot by 2016
License Fee , SLA, Key Players
Key Skills, Training, CoordinationCustomer care. metrics, Balanced Scorecard
Application, Metrics, Data constraints, Phased deliverable , Data Standards & Repository, Standardized Processes
Data quality, Platform , Metrics,Monitoring Dashboard* – *Inspired Smart London Vision.
Initial support and Testing availability Funding , Metrics
Funding, Metrics, Feedback
Funding, Metrics, Feedback
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Implementation Strategy – Development
Collaborate & Feedback
Analysis and
Document
Analysis of Alternatives
Design with focus on
Innovation&
Standardization
Develop
Test
Implement (Roll Out)
Waterfall
Agile In
tegr
ated
Stra
tegy
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Implementation Plan – Deployment
With SDLC , Gantt Chart for Deployment, Change
Management and Training
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Implementation Strategy Incorporate feedback
Analysis and Document
Analysis of Alternatives Design Develop Test Implement
(Roll Out)
Analysis and Document
Analysis of Alternatives Design Develop Test Implement
(Roll Out)
Analysis and Document
Analysis of Alternatives Design Develop Test Implement
(Roll Out)
Iteration 1
Iteration 2
Iteration 3
Feedback , Lessons Learnt
Feedback , Lessons Learnt
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Project Rollout Dashboard
Delay Alert On Time Coming Up
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Measurement and Metrics
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Metrics - What are we looking at ...
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Metrics - ISO 37120
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Some of the benefits envisioned for ISO 37120:2014 include:
1. More effective governance and delivery of services2. International benchmarks and targets3. Local benchmarking and planning4. Informed decision-making for policy makers and city managers5. Leverage for funding by cities6. Framework for sustainability planning7. Transparency and open data for investment attractiveness8. Comparable data for city decision-making and insight
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Metrics - ISO 37120 stated Benefits
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Metrics Traditional 1. Project Metrics2. Enterprise Risk Metrics3. IT Risk and Compliance Metrics4. City Performance (ISO 371202014)• Financial management• Human capital management• Education etc.
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New 1. Social networking and Microblogging2. Lessons Learnt Processes and
Approaches 3. Knowledge Management - Wikis4. Data Quality metrics5. Process Standardization and
Improvement6. IT – Process, Data, Platform, Things7. Innovation8. Product development9. Sales and marketing10. Supply chain management
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ISO 37120:2014 Metrics
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ISO 37120:2014 Metrics
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ISO 37120:2014 Metrics
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ISO 37120:2014 Metrics
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Project MetricsTactical Measure Question Answered Sample Indicator
Time How are we doing against the schedule?
Schedule Performance Index (SPI) = Earned Value ÷ Planned Value
Cost How are we doing against the budget?
Cost Performance Index (CPI) = Earned Value ÷ Actual Cost
Resources Are we within anticipated limits of staff-hours spent?
Amount of hours overspent per software iteration
Scope Have the scope changes been more than expected?
Number of Change Requests
Quality Are the quality problems being fixed?
Number of defects fixed per user acceptance test
Action Items Are we keeping up with our action item list?
Number of action items behind schedule for resolution
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Enterprise Risk Metrics
APAQ
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IT Risk and Compliance Metrics
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Issues
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Issues/Challenges 1. Retrofitting existing legacy city infrastructure to make it smart
2. Financing smart cities
3. Availability of master plan or city development plan
4. Financial sustainability of Smart City Infrastructure
5. Technical constraints including Cyber security
6. Multi-tier governance
7. Dealing with a multivendor environment
8. Capacity building program
9. Reliability of utility services – For implication in Crime reduction, Reliability has to be 100%
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Conclusion & Recommendations
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Conclusion - Current
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Conclusion - Cont’d “Baltimore city budget is running $12.4M surplus” – Baltimore Sun Dec 6th 2015Police overtime costs, meanwhile, continue to come in high. A new patrol schedule for officers, rolled out earlier this year, is helping to bring down costs. Kleine projects nearly $33 million in spending on overtime, down from $38 million. The city had budgeted $20.5 million for overtime.
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Conclusion Component Cost as communicated in Functional Section
Build Wifi-Network (100% of the city)+Monitoring Lab $9.2M
Buy Smart Street Light (LEDs+Camera)+ Sensors $9.6M
Operation Cost (Installation) $17M
Solution Platform(Data Warehouse+Analytics) $3M/year
Energy Saving / Visibility
Connectivity
Reduction in Response Time by Officials
Crime Recorded - Criminals off Street
Better Personnel Allocation + Reduction in Patrol Costs
24 X 7 Monitoring of High Risk Areas and Priority area like schools.
Reduction in Crime Rate
Infrastructure for Smart Connected City
Smarter, Safer & Energy Savvy Community
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Recommendations 1. Move towards Smart Framework
2. Prioritize - on the area’s and CLEAR Project SCOPE - What are we trying to achieve?
3. Identify right stakeholders
4. Identify Build and Operate or other financial business models like Crowdsourcing for Design. 5. Implement standardized, flexible solution with opportunity for expansion
6. Top management has to promote and support the initiative
7. Monitor Multivendor environments for timelines, collaboration, compatibility and Licensing Costs. Evaluate Tax benefits for investments for Public and Partners.
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Thank you!Questions?
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http://www.federaltimes.com/story/government/dhs/blog/2015/09/24/protecting-internet-things-and-living-smart-cities/72742172/http://www.citylab.com/tech/2012/03/how-catch-criminal-data/1477/http://www.cisco.com/web/about/ac79/docs/ps/motm/Smart-City-Framework.pdfhttp://www.ibm.com/smarterplanet/global/files/us__en_us__cities__smart_city_e_summary.pdfhttp://www.cisco.com/web/strategy/smart_connected_communities.htmlhttp://www.cisco.com/web/about/ac79/docs/ps/motm/Smart-City-Framework.pdfhttp://www.bizjournals.com/kansascity/news/2014/05/22/ciscos-smart-city-plan-for-kc-the-biggest-they-ve.htmlhttp://www.cisco.com/web/strategy/docs/gov/everything-for-cities.pdfhttp://www.ibm.com/smarterplanet/global/files/us__en_us__cities__smart_city_e_summary.pdf
References
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http://www.neighborhoodscout.com/md/baltimore/crime/#descriptionhttps://www.cisco.com/web/services/portfolio/documents/strategy-and-analysis-service-overview.pdf
References
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