Smarter Cites: When you get the chance, start smarter (Keynote at Arab Future Cities Summit)

© 2013 IBM Corporation

SmarterCitiesforSmarterGrowthWhenyougetthechance,startsmarter

Lynn [email protected]

© 2013 IBM Corporation2

Threethings. 1

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The Century of the City

IBM’s view of smarter

Smarter by design

Trends and opportunities for purposeful development of new cities … and implications for growth

Beyond infrastructure – people, services, systems, patterns …

Ways to start smarter

“The 19th century was a century of empires… the 20th century was a century of nation states … the 21st century will be a century of cities.”

Wellington WebbFormer Mayor, Denver


What’s going on?

Profound change

Contribution to Urban Growth (2010 to 2015)

as % of

<25% 20 50 >75%

50% 20 07 50%

90% 19 90 10%

<25% 20 50 >75%

50% 20 07 50%

90% 19 90 10%

World Population

0.15

0.25

0.35

0.45

1978-1987 1988-1997 1998-2007 2008-2017(f) 2018-2027(f)

Traditional Manufacturing Modern ManufacturingTraditional Services Modern ServicesAll sectors

Contribution of talent to growth in economic value added Percent, average annual rate

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What’s going on?

All cities are competing more intensely for talent because all industry sectors in the modern economy are becoming more talent-intensive

Regulatoryframework

Workforce Infrastructure

Real estate

Naturaldisaster

Knowledge & innovation

Taxation

Incentives

Businesscosts Living

environment

EconomicDevelopment

4


What’s going on?

Increasing expectations …

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Water, Energy

Walls, Roads

Lifestyle, Culture

Jobs, Education

AccessSecurity ProsperityOpportunity

Leaders set conditions for serendipity and deliver …

People and their communities expect more …

Time

Progress

“Place”


What’s going on?

… and new forms of collaboration

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The choice is theirs

The city’s enabling environment is shaped by many factors considered by talented people and knowledge-intensive companies

Built and natural environment

Health and social services Transport

Energy + water

Career opportunities

Knowledge and innovation

Salaries +Taxation

Public safety

Government services Cultural / Living

environment

City’s human capital and innovation enabling

environment

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A virtuous circle

A climate conducive to skills, creativity and knowledge-driven growth can create differentiating and enduring new value and new capital

Source: IBM Global Center for Economics Development analysis, IBM Institute for Business Value8

Competencies,knowledge andcreativity

RetainRetain

AttractAttract

CreateCreate

EnableEnableCompetencies,knowledge andcreativity

RetainRetain

AttractAttract

CreateCreate

EnableEnable

Energy and Water

MiddleEastesp


Imperative

Assure future generations that investments return “100X” later on while surfacing net new opportunities to do so along the way

Brand ValueBrand Value

Societal /City ValueSocietal /City Value

Financial /Operational Value

Financial /Operational ValueStrategic Value

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FinancialCapital

PhysicalCapital

HumanCapital

NaturalCapital

Yet …

The traditional nexus of economic growth is characterized by human capital predominantly acting as a substitute to other types of capital

Old Nexus Technological

Innovation

Economic Activity

and Growth

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Critical to cities’ competitiveness

The new nexus implies that human capital and innovation are playing a rapidly increasing and direct role in driving economic growth

CreativeInnovation

FinancialCapital

PhysicalCapital

HumanCapital

NaturalCapital

Old Nexus Technological

InnovationCREATIVE NEW ANDAND TECH OPTIMIZEDINNOVATION CAPITAL

AN

DCREATIVE NEW ANDAND TECH OPTIMIZEDINNOVATION CAPITAL

AN

D

NewNexus

Informatio

n capital

Brand capital

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We talked about human capital driving creative innovation and related jobs; now let’s move to technology …


Master planning is a relatively new concept

Even with new cities, technology is often left out – yet every aspect of a city has a related technology – existing cities know this only too well

Water

Municipalities lose as much as 20% of their

water through leaks.

A blackout in the Northeast of the US affected over 55

million people.

Transport Energy

A major traffic jam in China caused gridlock for 60 miles

and lasted ten days

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The opportunity

Purposeful city development with growing emphasis on I-C-T

Urban Planning & Development Phases

Adding the I-C-T dimension

Master Planning

Design

Physical Infrastructure

Buildings

Urban Systems and Services

Institutions Integration

Population Integration

Life Cycle Management

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The opportunity

We all have the power to know

“We will go beyond … to systems that enable humanity to reach itsgreatest potential for human creativity, innovation and ingenuity.”

- IBM Global Technology Outlook 2010, Frontiers of IT

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Smart vs. smarter

IBM has developed a technology reference architecture for starting smarter, but there’s more

Master Planning

Design


Buildings





Master Planning

Design


Buildings




Life Cycle ManagementUrbanPlanningandDevelopmentPhases

SmarterCityICTDomains

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Starting SmarterTechnologyReferenceArchitecture

•Consolidated analytical and information infrastructure•Consolidated telecommunications infrastructure•Consolidated mobility infrastructure•Consolidated commerce infrastructure•High performance computing centric capabilities

City operations, consolidated response, event mgmt

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Smart vs. smarter

Many think about “smart” only in the context of the communications technology infrastructure

Physical spaces and buildings

Transport and utilities network

Information and communications technology

Design

Master Planning


Buildings





UrbanPlanningandDevelopmentPhases

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Smart vs. smarter

But, does connectivity and its enabling technologies really mean smarter?

Water, Energy

Walls, Roads

Lifestyle, Culture

Jobs, Education

AccessSecurity ProsperityOpportunity

Leaders set conditions for serendipity and deliver …

People and their communities expect more …

Time

Progress

“Place”

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Healthy

Accessible

Efficient

Learning

SustainableHealthcare

Citizen participation

Remote connectivity

Transportation

Housing

Mobile connectivity

Communications

Public safety

Privacy

Energy

Education

Innovation

Commerce

Investment

Vibrant

Culture

Natural resources

Safe

Distinctive

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A smarter city is…

Smart vs. smarter

A city is – a living organism – a system of systems that transcends multiple lifetimes

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Do you know what

it’s known for

today?

How can you capitalize

on new forms of

collaboration?

What do you want

your city to be

known for?

Do you know how

your city is

experienced?


Smart vs. smarter

Technology advances are creating new solutions and new markets

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Smart vs. smarter

Here’s where it gets really interesting

Role of Information

“See”, “Discover”

Understand, learn

Define

Prioritize

Make choices

Act / catalyze / coordinate action

Measure, evaluate

Better manage

Tell the story

Role of ICTs

Low and high-level mediation within and among urban systems

Sensing urban system activity

Visualizing, analyzing, optimizing

Transparency among people, government, commerce

New forms of urban infrastructure

2-way interaction beyond portals

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Camera phones in existence able to document accidents, damage, and crimes

1 billionRFID tags embedded into our world and across entire ecosystems

30 billion

Smart vs. smarter

We can collect data from almost anything …

Every day, 15 petabytes of new information are being generated. This is 8X more than the information in all U.S. libraries.

15 petabytes

Digital and physical infrastructures of the planet are converging21


Smart vs. smarter

… and provide information to cities and communities ...

https://www-304.ibm.com/connections/blogs/ibmireland/entry/innovative_new_data_sharing_network_to_create_commercial_opportunities1

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City Recycling

River QualityUrban Water Loss

Building C02

Data from sensors and systems

Understanding

Information

Smart vs. smarter

… aggregate, visualise and draw insights from it …

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Smart vs. smarter

… and reveal how city systems affect each other …

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Smart vs. smarter

We can tell people the impact of the choices they are about to make …

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Start Time

End Time

Purpose

7:27 7:39 HBW

8:35 8:47 NHBO

9:30 9:55 NHBW

10:56 11:15 NHBO

11:23 11:31 NHBW

12:22 12:33 NHBO

12:53 13:09 HBW

14:00 14:04 NHBO

14:29 14:48 NHBW

19:28 19:47 NHBO


Smart vs. smarter

… appeal to their sense of place and community …

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ResidentView

CityView


Smarter means different things to different people

What are the common underlying themes of the Smarter City?

In an increasingly instrumented, interconnected and intelligent world, a smarter city is …

… a city, district, metro area or urbanizing region …

… with communities of people and organizations / businesses that interact …

… using pervasive and integrated information from ICT-enabled urban systems to …

… address common issues for shared outcomes

How? Make optimal use of information available

today to:

• Better understand and control city operations;

• Optimize the use of limited resources;

• Balance social, commercial and environmental needs;

• Measure (and spur) progress and outcomes.

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So what?

For Arab Future Cities, a profound opportunity to “future ready” your cities in unique and differentiating ways and lead

Smart metering inMalta helpscitizens pay only for the energy they use

Predictive analytics helped slash Richmond’s crime rate by

40% in one year

In Taiwan,

99% of smarter trains run on time

Smart cards helped increase capacity at Singapore Land Transport Authority, to over 20M fare transactions per day

Amsterdam Airport Schiphol

moves 20 million more bags every year with a smarter baggage system

In Delft, developing enhanced

flood prediction and protection systems

for coastal areas and river deltas

lower costs in Reggio Emilia via collaborative education platform

Miami-Dade County Public Schools have increased academic achievement across the board

2xEndessa, Spain utilizes real- time monitoring & smart meters to reduce energy use by 20%


New cities have a unique opportunity to start smarter

Let the information guide what your next moves should be

Integrating and using information within and across

New dataNew data--drivendrivenframe(sframe(s) of reference) of reference

Professions that plan, design, build, operate, manage and renew cities

Professions that plan, design, build, operate, manage and renew cities

Denizens in cities(and their

communities)

Denizens in cities(and their

communities)Soft and hard

infrastructures Soft and hard

infrastructures

Apply lessons learned from / Avoid the mistakes of the past

Take advantage of capabilities of the present

Deliberately design for a sustainable, vibrant and vital future

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When you get the chance, start smarter

Look beyond infrastructure to systems-in-context to frame solutions; there’s always temptation to start with operational solutions

Leadership and governance, networks and community organizations, innovation forums

Soft infrastructure


Hard infrastructures Physical spaces and buildingsTransport and utilities network

Information and Communications Technology



City Systems(their competencies,capabilities, processes) Tran

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i-tie

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(their competencies,capabilities, processes) Tran

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(Urban / City Systems)

Ecosystem oforganizations(and their roles)

PublicSector

ThirdSector

CommunityOrgs

PrivateSector

Ecosystem oforganizations(and their roles)

PublicSector

ThirdSector

CommunityOrgs

PrivateSector

People(and their roles)

Citizens, Employees, Innovators, Visitors, Residents …People(and their roles)

Citizens, Employees, Innovators, Visitors, Residents …

HealthHealth WealthWealth OpportunityOpportunity SafetySafety

IndependenceIndependence ChoiceChoice SustainabilitySustainability Others Others ……Shared Outcomes

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Asystemprovidescontext

Source: Adapted. Rick Robinson, “The New Architecture of Smarter Cities”, Blog: The Urban Technologist

http://theurbantechnologist.com/?s=architecture



It is better to start with an overarching city ecosystem model and then use proven assets to address common solution areas …

IBM Approach Overall Design

DirectC

ontrolE

xecute

Marketing & Customer Manage ment

Consumer Segmentation

Customer Relationship Strategy

Marketing Strategy & Planning

Customer Behav ior Model ing

Market & Competit or Research

Customer Satisf ac tion Measurement & Management

Segmentation Management

Clientelling

Call Center

Campaign Management

Customer Serv ice

Loyalty

Customer Communications

Mass Market ing & Advertising

Target Market ing

Af ter Sales Services

Customer Reposit ory

Products

Merchandise St rategy

Merchandise Planning

Assortment Planning

Product Development (e.g. Private Label)

B rand Management

P ric ing S trategy

Sourc ing P lanning

Price / Prom ot ions Management

Inventory Management

S uppl y Terms A dminis trat ion & Pricing

Product Lifecycle

Managem ent (P LM)

Allocations

PO & Trade Funds Management

Purchas ing / Sourc ing

Demand Forecasti ng

Master Data Management

Store a nd Channel

Multi-channel S trategy

Store & Channel Strategy

Store Desi gn & Layout

Channel Des ign & Layout

Store & Channel Prof itability

Store Operations Management

Transact ion Management

Planogram

Replenishment

Serv ices Delivery

Price Changing

Time & A ttendance

Floor Stock ing, Back Room Task Mgt

Loss Prevention

Work force Management

P OS Execut ion / Cash Management

Multi-channel Call Center

Distribution & Warehousing

Dist ribution, Warehouse, Supply Chain St rategy

Transportation Planning

Supplier Relat ionship P lanning (Logis tics )

Supplier Perf ormance Management

In-bound Logist ics

Intra-company & Outbound Logi stics

Transportation / Fleet Management

Warehouse Management

Dis tribution Center Operat ions

Yard Management

Returns & Rec lamati on

Product Track & Trace

Transportation / Fleet Operat ions

Busine ss Administration

Corporate St rategy

Financial Management & Planning

LOB Planning

Locat ion S trategy

Alliance Management

Bus iness Performance Report ing

Legal & Regulatory Compliance

Real Es tate & Constructi on Management

Risk Management

S tock Ledger HR Management (Career Development , Training, Recruiting)

HR Administ ration / Payrol l

Corporate Audit

Corporate A ccount ing (GL AP, Treasury , etc

Sal es Audi t

Indirec t P rocurement

Credit Operat ions

PR & Investor Relati ons

IT S ystems & Operations

DirectC

ontrolE

xecute









Clientelling

Call Center

Campaign Management

Customer Serv ice

Loyalty



Target Market ing



Products



Assortment Planning


B rand Management

P ric ing S trategy

Sourc ing P lanning




Product Lifecycle

Managem ent (P LM)

Allocations



Demand Forecasti ng


Store a nd Channel








Planogram

Replenishment

Serv ices Delivery

Price Changing

Time & A ttendance


Loss Prevention









In-bound Logist ics





Yard Management





Corporate St rategy


LOB Planning

Locat ion S trategy

Alliance Management




Risk Management



Corporate Audit


Sal es Audi t


Credit Operat ions



DirectC

ontrolE

xecute









Clientelling

Call Center

Campaign Management

Customer Serv ice

Loyalty



Target Market ing



Products



Assortment Planning


B rand Management

P ric ing S trategy

Sourc ing P lanning




Product Lifecycle

Managem ent (P LM)

Allocations



Demand Forecasti ng


Store a nd Channel








Planogram

Replenishment

Serv ices Delivery

Price Changing

Time & A ttendance


Loss Prevention









In-bound Logist ics





Yard Management





Corporate St rategy


LOB Planning

Locat ion S trategy

Alliance Management




Risk Management



Corporate Audit


Sal es Audi t


Credit Operat ions



DirectC

ontrolE

xecute









Clientelling

Call Center

Campaign Management

Customer Serv ice

Loyalty



Target Market ing



Products



Assortment Planning


B rand Management

P ric ing S trategy

Sourc ing P lanning




Product Lifecycle

Managem ent (P LM)

Allocations



Demand Forecasti ng


Store a nd Channel








Planogram

Replenishment

Serv ices Delivery

Price Changing

Time & A ttendance


Loss Prevention









In-bound Logist ics





Yard Management





Corporate St rategy


LOB Planning

Locat ion S trategy

Alliance Management




Risk Management



Corporate Audit


Sal es Audi t


Credit Operat ions



Component Business Modeling

Actionable Business Architecture

Business ModelsCity Ecosystem

Transportation Public Safety Water

…Local Govt Core Systems

• Water Mgmt• Citizen Health• Energy• Environment• Urban planning

• Social Services• Education• Culture and Recreation• Judicial and Justice• etc.

Business of IT Finance Human CapitalPayment

…

Shared Services• Procurement• Asset Management• Tax Collection• etc.

Operations Models IT Models Investment and Initiatives

Aligned with Business Scenarios

and Key Performance Indicators

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… then chart a shared roadmap – a “living” path of progress – in collaboration with others

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City Master Plan(physical, spatial, etc.)

“Digital” Master Plan(informational, digital, temporal, technological, etc.)

City Master Plan(physical, spatial, etc.)

“Digital” Master Plan(informational, digital, temporal, technological, etc.)

City Operational Governance

City Information “Backbone”

City Operational Governance

City Information “Backbone”

City Services & Enforcement

Engagement & Interoperability “Platforms”

City Services & Enforcement

Engagement & Interoperability “Platforms”

Continuous Improvement & Adaptation

Innovation Infrastructure

Continuous Improvement & Adaptation

Innovation Infrastructure


Know and understand what you have to offer and how it compares with other cities

1.

Defineyourcity’secosystemmodelandunderstandhowithasperformed

2. Takestockofyourcity’sassets,uniquestrengths,weaknesses

3. Understand“talent”

needsandexpectations… what’simportant

Systems thinking plus integrated design discipline are essential

4. Co‐defineanddecidehowyoursmartercitywillbeexperienced

5.

Identifycitysystems(+smarterenablers+data)usedineachexperience

Removing bar- riers is much harder than making sure unnecessary ones aren’t built

6.

Integrateintothecity’smasterplan,downstreamdesign,roadmap,etc.

7. Execute!Only

whenthechangeisvisible,“brand” it

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LessonsfromtheSmarterCitiesjourneysofothers

Smarter Cites: When you get the chance, start smarter (Keynote at Arab Future Cities Summit)

Technology

Transcript of Smarter Cites: When you get the chance, start smarter (Keynote at Arab Future Cities Summit)