Living in a Hyper-Connected World – How Cities Need to get Smarter and More Digitally Enabled
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Transcript of Living in a Hyper-Connected World – How Cities Need to get Smarter and More Digitally Enabled
Nirvesh Sooful Chief Executive Officer (CEO)
African Ideas
Living in a Hyper-connected World – How Cities Need to get Smarter and More Digitally Enabled
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Innovation Development Empowerment Action Solutions
African Ideas – who we are • Strategic consultancy helping Governments to accelerate the benefits of ICT
enabled change through transformation of the public sector and the wider economy. Operates primarily in the ICT4D space.
• Key projects – Western Cape Broadband – Strategy & Digitisation Readiness Advisory Service – Western Cape Municipal ICT roadmap – Municipal Shared Service Solution (Cloud based) – ICAN Centres (Digital Inclusion) – WIFI Mesh (Rural – Saldanha, Urban – Khayelitsha & Mitchells Plain) – Rethinking Libraries (Libraries of the future) – Community spaces of the future – E-enabling Education (utilising broadband)
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“dropping a stone, or even a drop of water, in a pond causes ripples to emanate from the source, getting bigger and bigger the further away from
the source they get. This is a powerful example of small changes causing large and far-
reaching effects” At African Ideas, we specialise in working with our clients to identify these ‘big lever’ projects – the projects which, when embarked upon, will set the necessary ripples in motion to drive change and transformation throughout an eco-system. In this way we aim to have a profound effect on the society in which we operate.
Innovation Development Empowerment Action Solutions
Introduction – who am I? • Involved in the IT industry for over 25 years • Many large, complex, innovative and award winning projects • Spent 10 years at City of Cape Town. First CIO of Metro city. • Architect & driver of the “Smart City” strategy - turnaround
strategy for the city aimed at information-enabling all key business processes in the city & embarking upon a modernisation programme to deliver services based on real information emanating from the ground (operations)
• Currently CEO of African Ideas. Also Strategy & Readiness Advisor to Western Cape Broadband Programme
“Nirvesh is the architect and driver of the City’s Smart City strategy, which Communications Minister Ivy Matsepe-Cassaburri in January 2005, called a “visionary transformation strategy,” which positioned Cape Town “to become one of our most technologically advanced cities” and “a frontrunner in South Africa’s National IT Strategy”. The strategy also focuses on how to harness the power of ICT to meet the development needs of the city and all its citizens.
While at the City of Cape Town, Nirvesh has implemented some of the largest ICT enabled business transformation projects in South Africa, creating billions of Rands of value for the City. These have resulted in the city winning numerous national and international awards including the Bill and Melinda Gates Foundation Access to Learning Award and the 21st-Century Achievement Award from the Computerworld Honors Programme. In September 2007, Nirvesh received a Provincial Honour Award from the Premier of the Western Cape as a person “rendering exceptional achievements and exceptional meritorious service in the interest of the Western Cape.”
ITWEB July 2008
Innovation Development Empowerment Action Solutions
Scene Setting
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Ubiquitous Information Access
1950 1960 1970 1980 1990 2000 2010 2020
Era I: Automation, Cost Control and Efficiency
Era II: Productivity and End - User Empowerment
Era III: Value Creation and Business Effectiveness
Internet/Network Computing
Mainframe/Midrange Computing
Client/Server Computing
IT Impact
on Business Structure
Low
High
Era IV: IT Enabling New Business Models
The Rules
Internally Focused
Externally Focused
Source: Gartner
Key Issue
IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles
Era I: Automation, Cost Control and Efficiency
Era II: Productivity and End - User Empowerment
Era III: Value Creation and Business Effectiveness
Era IV: IT Enabling New Business Models
The Rules
Era V: Digitisation Hyper-connected world
Outside in – the impact of digitisation on the enterprise
Innovation Development Empowerment Action Solutions
More than ever, human life revolves around the city One hundred years ago, 2 out of every 10 people lived in an urban area. By 1990, less than 30% of the global population lived in a city, but as of 2010, more than half of all people live in an urban area. By 2050, this proportion will increase to 7 out of 10 people.
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Source: UN, Department of Economic & Social Affairs, Population Division
Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
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Municipal Policing
Urban Planning & Environment
Sport & Recreation
City Administration
Community Services
Emergency Services
Primary health care Economic & Social
Development
Public Housing
Roads, Stormwater & Transport
Solid Waste / landfill, removal & area cleaning
Water & Sanitation - storage, treatment & distribution
Electricity - distribution & retail
The city is a microcosm of the major challenges and opportunities facing the planet today—intensified and accelerated.
Here, all man-made systems come together and interact with one another.
The information/ ICT challenge
• Leveraging information to make better decisions • Anticipating problems to resolve them proactively • Co-ordinating resources to operate effectively
Cities are amazing places
Innovation Development Empowerment Action Solutions
In 2000 City of Cape Town had to merge 7 previously autonomous local government administrations and become a single integrated metropolitan City, but it found that creating a Unicity to be complex due to:
“Lack of standardised financial policies and procedures”
“Each Administration / Directorate ran its own IT systems, many of which did not meet business requirements and were not properly integrated”
“Paper based processes where labour intensive, prone to error and information could not be shared.
“Difficulty in merging these systems was in fact hindering the merger of the administrations and undermining the objectives which motivated the creation of the Unicity”
“To utilise ICT as a key enabler to ensure integration, facilitate the merger and bring
about organisational transformation.” Thereby, enabling the City to deliver on its
Strategic Objectives”
Blaauwberg
Tygerberg
Oostenberg
HelderbergSouth Peninsula
CapeTown
CAPEMETROPOLITAN
AREA
City of Cape Town
Smart City Program
Objectives
Transforming Cape Town
Innovation Development Empowerment Action Solutions
• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
• Lack of communication with communities • Corruption and Nepotism • Financial mismanagement and Maladministration • Outstanding debt payments for municipal services • Lack of capacity – poor project planning, poor management and/or
under-spending by municipalities • Government officials who spend time focusing on their personal
business interests at the expense of service delivery. • Violation of MFMA & Supply Chain Mgt - results in tender
irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
• Poverty and unemployment
Many of the issues that we were facing then, still plague local government in SA today
A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009
So, the key question is: Can ICT be used to help government deal with these business issues?
Innovation Development Empowerment Action Solutions
Outstanding debt payments for municipal services
• Improved visibility and transparency of information on the new invoice, the ability for citizens to pay their accounts at any municipal pay point and the implementation of a call center to address billing queries.
• Revenue Services performed significant data alignment duties in converting data to SAP.
• Revenue enhancement interventions have received priority attention.
Calculation:
• 1% increase in the payment ration = R6 mil per month.
• ROI option: 90 % payment ratio was used as the baseline for this ROI study and only 11% of financial value of the increase above baseline has been used. = R224.6 mil.
• 100% option: Instead of allocating only 11% - if 100% allocation over 90% base is to be used the financial value would be = R794 mil.
How was the benefit realised?
12 Month Moving Average -Payment Ratio
82.00%84.00%86.00%88.00%90.00%92.00%94.00%96.00%98.00%
100.00%
Jul-0
3A
ug-0
3S
ep-0
3O
ct-0
3N
ov-0
3D
ec-0
3Ja
n-04
Feb-
04M
ar-0
4A
pr-0
4M
ay-0
4Ju
n-04
Jul-0
4A
ug-0
4S
ep-0
4O
ct-0
4N
ov-0
4D
ec-0
4Ja
n-05
Feb-
05M
ar-0
5A
pr-0
5
Payment RatioROI Baseline
Innovation Development Empowerment Action Solutions
Cash Position - City of Cape TownJune 2002 to July 2006
0
500
1,000
1,500
2,000
2,500
Jun-
02
Dec
-02
Jun-
03
Dec
-03
Jun-
04
Dec
-04
Jun-
05
Dec
-05
Jun-
06
R '0
00 0
00
Budget Actual Cash Position
Go-live
Financial mismanagement and Maladministration Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.
Innovation Development Empowerment Action Solutions
Lack of Capacity
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000 Inv Value per Day
Sum of Inv Value
01 0002 0003 0004 0005 0006 0007 0008 000
No Txns per Day
Sum of No Txns
Average Daily Value: R744,201 Average Daily No. of Transactions : 1140 Andre Stelzner, Director: IS&T, City of CT
“Another interesting area has been the automation of fuel payments through e-fuel system and interface into SAP. Through this we pay approximately R750 000 per day for fuel to the respective suppliers without any human intervention......
......What makes things even better is that the price is checked against contract pricing and payment is optimised to ensure that we only pay on due date. In the past we had the fuel supply cut to the city due to late payment, now nobody worries about it.”
Innovation Development Empowerment Action Solutions
Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
All Services / Works Request follow the same process to overcome the challenge of initiating and tracking the diversity of services government is responsible for:
Innovation Development Empowerment Action Solutions
Creating Citizen Value creates Citizen Loyalty.
Lack of communication with communities
• Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via
Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels
including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
Innovation Development Empowerment Action Solutions
Government officials who spend time focusing on their personal business interests at the expense of service
delivery.
Innovation Development Empowerment Action Solutions
Help deal with poverty and unemployment • Large disparity in the socio-economic status of citizens.
Systems assist with – Identifying citizens which can – but don’t pay; versus – Citizens which do not have the means to pay. – Support the vulnerable members of society.
• Examples of social responsible Policies and Tariff- structures enable via the ERP Program: – Free Basic Utility Services. – Grants for the Indigent – Debt relief through arrangements and incentives
• Other ICT initatives – Smart Cape – reducing the digital divide and empowering
communities – Digital Business Centres – assisting small businesses – Learnerships, volunteerism and skills development
Innovation Development Empowerment Action Solutions
Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and
compromises service delivery.
Innovation Development Empowerment Action Solutions
Mayor fights cash crisis
Effective Service Delivery and confidence in municipal leadership
Jun
200
1
Dec
200
0
Creation of City of Cape Town “Lack of standardised financial policies and procedures”
“Each Administration / Directorate ran its own IT systems, many of which did not meet business requirements and were not properly integrated”
“Paper based processes where labour intensive, prone to error and information could not be shared.
“Difficulty in merging these systems was in fact hindering the merger of the administrations and undermining the objectives which motivated the creation of the Unicity”
Launch of Smart City Programme
Mayor fights cash crisis
Go Live!!!!
Bill & Melinda Gates Access to Learning Award, Berlin, 2003
Jun
200
8
ComputerWorld Honours Programme 21st Century Achievement Award, Washington DC, 2004
Mayor fights cash crisis
Innovation Development Empowerment Action Solutions
Implementing effective ICT in the Public Sector can help deal with
• Lack of / Poor service delivery (water, sanitation, electricity, refuse removal)
• Lack of communication with communities • Corruption and Nepotism • Financial mismanagement and Maladministration • Outstanding debt payments for municipal services • Lack of capacity – poor project planning, poor management
and/or under-spending by municipalities • Government officials who spend time focusing on their
personal business interests at the expense of service delivery. • Violation of MFMA & Supply Chain Mgt - results in tender
irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009
People
Strategy
Process
Tech
Innovation Development Empowerment Action Solutions
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However, that is only the start …
Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
20
Municipal Policing
Urban Planning & Environment
Sport & Recreation
City Administration
Community Services
Emergency Services
Primary health care Economic & Social
Development
Public Housing
Roads, Stormwater & Transport
Solid Waste / landfill, removal & area cleaning
Water & Sanitation - storage, treatment & distribution
Electricity - distribution & retail
The city is a microcosm of the major challenges and opportunities facing the planet today—intensified and accelerated.
Here, all man-made systems come together and interact with one another.
The information/ ICT challenge
• Leveraging information to make better decisions • Anticipating problems to resolve them proactively • Co-ordinating resources to operate effectively
Cities are amazing places
Innovation Development Empowerment Action Solutions
Broadband
21
Innovation Development Empowerment Action Solutions
Broadband Western Cape Broadband – Proposed core backbone
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Innovation Development Empowerment Action Solutions
Western Cape Broadband – Access network coverage area
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Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
25
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
26
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
27
WIFI – Mitchells Plain Phase 5 Coverage
WIFI - Khayelitsha Phase 5 Coverage
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
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WIFI – Mitchells Plain Phase 5 Coverage
WIFI - Khayelitsha Phase 5 Coverage
Source: http://digitalcivilization.blogspot.com/2010/11/freedom-from-wires.html
Innovation Development Empowerment Action Solutions
Source: Bosch Internet of Things and Services Lab
Cities of the future: key issues
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• Interconnected Systems and the “internet of things”
Innovation Development Empowerment Action Solutions
Cities of the future: key issues
30 30
hedonometer.org an instrument that measures
the happiness of large populations in real time
• Interconnected Systems and the “internet of things”
• Citizens having powerful platforms of their own
Innovation Development Empowerment Action Solutions
Cities of the future: key issues
31 31
• Interconnected Systems and the “internet of things”
• Citizens having powerful platforms of their own
• Big data or Big brother (power & control)
Innovation Development Empowerment Action Solutions
Source:http://www.slideshare.net/gleonhard/data-is-the-new-oil-publicy-is-the-new-privacy-futurist-speaker-gerd-leonhard
Cities of the future: key issues
32 32
• Interconnected Systems and the “internet of things”
• Citizens having powerful platforms of their own
• Big data or Big brother (power & control)
Contact Details: [email protected], www.slideshare.net/nsooful
Living in a Hyper-connected World – How Cities Need to get Smarter and More Digitally Enabled
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Thank You & Discussion