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Aerotropolis: The Gateway to Globalisation  and Competitiveness GCF 2012 “ The Entrepreneurship Imperative” 21-24 January ...
Perspective from  a Technology Company  Former President of India, Dr. Abdul Kalam in San Jose Students from a High School...
Memphis the Aerotropolis World ’s Busiest Cargo Airport:  A Magnet for Jobs and Companies Airports Emerge as a Globalisati...
Globalisation Innovation:  Evolving from Physical Transport  to Physical Transport & Intellectual Transport Global R&D Tra...
Making Schiphol  Europe’s Preferred Hub Source:  Schiphol  Group 2011 12.5% of  Regional GDP Europe’s 2 nd   Largest Airpo...
Everything is Becoming Connected: The Industrialization of the Internet is Now Source:  Cisco  50 2010 2015 2020 Billions ...
Regional Residents Industrial Companies Office  Parks Logistics Companies Visitors Passengers Aviation Companies Airports ...
Airports Becoming Service Providers: Technology is Consumed as a Service Smart Retail: Lean Retail, Secure Store Solutions...
The World In Flight – Aerotropolis at the Center Source: IATA Growth:  1975 - 2005 Growth:  2010 - 2014 Growth:  2010 - 20...
The Rules of Competition  Have Changed What Cities Want: What Cities Require: Industrial  Competitiveness Job Creation Bus...
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Wim Elfrink: Cisco Aerotropolis Session Jan 23, 2012

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Cisco EVP Wim Elfrink presentation from participation in a session at the 6th annual Global Competitiveness Forum, in Riyadh, Saudi Arabia. The overall theme of the event focused on the positive impact of competition on economic and social development around the world. Elfrink spoke on the emergence of the aerotropolis and the opportunities it presents for the development of cities. As a concept developed by John D. Kasarda and Greg Lindsay in their book ‘Aerotropolis: The Way We’ll Live Next ‘, an aerotropolis is an urban form whose layout, infrastructure, and economy is centered on an airport, offering its businesses speedy connectivity to suppliers, customers, and enterprise partners worldwide.

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  • You can view the blog regarding this presentation at http://blogs.cisco.com/news/aerotropolis/
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  • Heather and team we are going in the right direction for my Aerotropolis preso, Airports will play a key role in the globalization of the corporate brain, I used the fourth phase of globalization a lot in the past and want to introduce again as Airports will have the bulk of brain transportation instead of physical transport. “ only Cities with an international airport can become global cities” could be my opening statement. On one hand I represent technology and TP, which assumes that we can travel less, on the other hand I want to make the point that we add and replace, both in physical and brain transportation you can conclude that high value high margin goes thrue airports the effect of e-commerce with fast and quality transport is not really known yet ,however having an efficient airport also for physical transport, example of Fed EX is compelling. Airports have to use technology as key enablers to be smart, agile and fast is key. Please provide me stats with GDP added due to airports, etc. Will need some work but I like the slides, The world in Flight, provide me percentage growth numbers, Everybody wants to be the hub No one the spoke, the rules of competition have changed, global gateway
  • “ only Cities with an international airport can become global cities Globalisation 1.0 (started hundreds of years ago) Trading and the globalisation of market presence Globalisation 2.0 (1980 ’s) Globalisation of manufacturing Globalisation 3.0 (1990 ’s) Globalisation of knowledge work R&D at the high-end and call centres at the low-end (focused on labour/cost arbitrage) Globalisation 4.0 (2006-beyond) Globalisation of the corporate brain Global sensing, decision-making, and execution capabilities of a company ’s leadership
  • The economic impact can be huge. The goods-based economy is built on a “physical Internet” comprised of hubs and planes. Cities grow when they are able to effectively utilize technology to expand their networks and overall reach, creating a grid that shortens the distances between neighboring cities. This helps cities, and the businesses within them to become more competitive as supply chains and networks become an increasingly vital part of how companies gain competitive advantage. A functioning Aerotropolis offers great accessibility for businesses, jobs for citizens and revenues through tourism. A real-life example, Memphis, shows the benefits; it’s an Aerotropolis that has created 220,154 jobs in the region and added $29 billion to GDP since its inception around 2006. So the role of the airport is changing and so are the business models associated with them. Airports derive greater revenue share from non-aeronautical sources Airports become leading urban growth generators through commercial development around airport areas Airports create a ‘halo effect’ attracting even non-airport linked businesses
  • E commerce and intellectual “ only Cities with an international airport can become global cities Globalisation 1.0 (started hundreds of years ago) Trading and the globalisation of market presence Globalisation 2.0 (1980 ’s) Globalisation of manufacturing Globalisation 3.0 (1990 ’s) Globalisation of knowledge work R&D at the high-end and call centres at the low-end (focused on labour/cost arbitrage) Globalisation 4.0 (2006-beyond) Globalisation of the corporate brain Global sensing, decision-making, and execution capabilities of a company ’s leadership
  • http://www.airportmetropolis.qut.edu.au/news/documents/JoopKrul.pdf The economic impact can be huge. The goods-based economy is built on a “physical Internet” comprised of hubs and planes. Cities grow when they are able to effectively utilize technology to expand their networks and overall reach, creating a grid that shortens the distances between neighboring cities. This helps cities, and the businesses within them to become more competitive as supply chains and networks become an increasingly vital part of how companies gain competitive advantage. A functioning Aerotropolis offers great accessibility for businesses, jobs for citizens and revenues through tourism. A real-life example, Memphis, shows the benefits; it’s an Aerotropolis that has created 220,154 jobs in the region and added $29 billion to GDP since its inception around 2006. So the role of the airport is changing and so are the business models associated with them. Airports derive greater revenue share from non-aeronautical sources Airports become leading urban growth generators through commercial development around airport areas Airports create a ‘halo effect’ attracting even non-airport linked businesses
  • Now everything is becoming connected The Internet of Things or what we call the Industrialization of the Internet is already starting to become a reality – it ’s not a futuristic event. Right this minute … there are more devices than people on earth that are connected over the Internet What this means is that You and I, among the lucky 2 billion people who are using the Internet today, are surrounded by at least 6 or more connected physical objects each … eg, 2 smartphones + 1 laptop + 1 iPad + 1 IP phone + a media entertainment center + a telematics car + a games console … Cisco estimates this inflection point happened some time between 2008 and 2009 This trend will continue to grow exponentially – doubling to at least 25 billion devices in 2015, and to 50 billion devices by 2020 – smart physical objects that are connected to each other and to humans using the Internet Protocol over public or private networks. Why does this matter? If you think about the massive amounts of data being generated – and available for people to use – just wait until the 50B devices are connected! (you haven ’t seen anything yet!)
  •   The growth and development of the airport is crucial to how well the Aerotropolis functions. Airports are increasingly faced with the obstacle of delivering excellent customer service, targeting and segmenting customers in meaningful ways and investing in future business models and solutions. Cisco knows from our Smart+Connected communities that there are many benefits of using the network to help. Airports benefit from the ability to sell personalized services to their customers, tap into revenue streams from non-aeronautical sources, generate meaningful intelligence to service customers and create additional services that enhance the overall consumer experience and provide reliable security. We has identified five different “smart-service” categories that will help to make these ideas more tangible: 1. Smart Transport and Parking Services Real-time travel services keep passengers informed of any travel problems and offer premium services, such as personalized hospitality and retail offerings, valet parking or route switching, if the passenger is at risk of being late. 2. Smart Retail, Hospitality, and Entertainment Services Passenger-specific retail and hospitality offers can be provided to the passenger ’s mobile phone based on customer information gathered by the airport. Intelligent advertising allows destination- or status-specific messages to be dis­played based on flight stage, location within the airport, and the passenger’s reason for travel. Lean retail solutions help minimize lines, allowing retailers to increase sales while reducing wait times and abandoned shopping baskets. TelePresence rooms within the airport offer high-end, life-size virtual conferencing on a per-hour basis to enable “face-to-face” business meetings around the world. 3. Smart Workplace Services Equipment telematics solutions use radio frequency identification (RFID) to keep track of movable equipment to improve equipment availability and utilization. A mobile worker and expert locator can deliver the right information to the right person at the right time, enabling staff to quickly and effectively deal with airport problems that impact the passenger. This includes customer relations, maintenance, and security staff.   4. Smart Airport Processes Location-based services use passenger entry and destination details, along with location information and terminal zones, to direct people through the airport in a way that reduces stress, minimizes queues, and increases retail sales. RFID baggage tagging enables airports to detect luggage at a distance or out of sight, making it easier to find misplaced or missing bags and provide up-to-date location information to passengers. 5. Smart Business-to-Business Services Smart airports and airport cities have the opportunity to provide a variety of value-added services to airport-city commercial customers. These include traffic and facilities management, and security services
  • A16 billion passengers by 2050: a growth of 566% from 2010 400 million tonnes of freight by 2050 - growth of 1190%
  • This deluge of information from connectivity has changed the rules of competition. For urban planners and those making decisions affecting city planning, there is a shift in power structures enabled by connecting technologies; what was once multinational competition is now ultra-local, and what was considered best for the nation must now be looked at through the lens of the community, and even the individual citizen. Cities are competing against each other on the same scale as many nations are competing against other nations.   With these shifting trends in mind, city planners’ jobs have become harder than ever. They must plan to optimize the livelihood of their citizens by boosting the local economy, in order to foster industrial competitiveness, job creation, business development and a high quality of life for their citizens. More and more, city leaders are seeking novel ways to enable speed, agility and accessibility within their infrastructures, to meet the changing and increasing demands of their communiites. They need speed, agility and accessibilty…because competition has evolved, not just from being between nations….it has moved to competition being primarily between cities…and now you’re seeing another shift…which is competition being between companies to supply chains and networks. Those who deploy the most robust, efficient and future-proof supply chain and networks will emerge as leaders. One way planners have begun to plan for the future is to reinvent and re-imagine the core of what has defined urban planning for decades: what exactly should be at the heart of the city? Airports or more specific the Aeortropolis, are key hubs of the supply chain networks.
  • Transcript of "Wim Elfrink: Cisco Aerotropolis Session Jan 23, 2012"

    1. 1. Aerotropolis: The Gateway to Globalisation and Competitiveness GCF 2012 “ The Entrepreneurship Imperative” 21-24 January 2012 Wim Elfrink EVP, Emerging Solutions and Chief Globalisation Officer January 23, 2012
    2. 2. Perspective from a Technology Company Former President of India, Dr. Abdul Kalam in San Jose Students from a High School in California Visiting Bangalore Virtual Healthcare - Residents of a Village in India
    3. 3. Memphis the Aerotropolis World ’s Busiest Cargo Airport: A Magnet for Jobs and Companies Airports Emerge as a Globalisation Engine, Stimulating Economic Growth Source: Aerotropolis : The Way We’ll Live Next Created 220,154 Jobs 1 in 3 Jobs in the Region Added GDP: $29 Billion Foreign Companies:100
    4. 4. Globalisation Innovation: Evolving from Physical Transport to Physical Transport & Intellectual Transport Global R&D Trade Globalisation 1.0 (started 100s of years ago) Globalisation of the Corporate Brain: Co-creation & Talent Global Manufacturing Globalisation 4.0 (2006-beyond) Globalisation 3.0 (1990s) Globalisation 2.0 (1980s)
    5. 5. Making Schiphol Europe’s Preferred Hub Source: Schiphol Group 2011 12.5% of Regional GDP Europe’s 2 nd Largest Airport Europe’s 3 rd Largest Airport By Cargo By Connectivity Europe’s 5 th Largest Airport By Passengers 120 Added Recently Foreign Companies: 1800 Created 120,000 Jobs 45 Million Passengers 1.5 Million Tons of Cargo
    6. 6. Everything is Becoming Connected: The Industrialization of the Internet is Now Source: Cisco 50 2010 2015 2020 Billions (units) 0 40 30 20 10 Evolution of the Internet 25 12.5 7.2 6.8 7.6 Inflection point World Population Enables Real-Time Connectivity and Accessibility Expansion of Ecommerce Collaboration of Intellectual Talent
    7. 7. Regional Residents Industrial Companies Office Parks Logistics Companies Visitors Passengers Aviation Companies Airports as Infrastructure Providers Airports as Service Providers Services Evolution The Aerotropolis As A City Opportunity for Entrepreneurship Source: Cisco <ul><ul><li>Arrival and departure </li></ul></ul><ul><ul><li>Hotel </li></ul></ul><ul><ul><li>Retail </li></ul></ul><ul><ul><li>Parking </li></ul></ul><ul><ul><li>Extended Airport Terminal </li></ul></ul><ul><ul><li>Significant non-aviation commercial activities </li></ul></ul><ul><ul><li>Mall, offices </li></ul></ul><ul><ul><li>Multimodal transportation </li></ul></ul><ul><ul><li>Airport City </li></ul></ul><ul><ul><li>Megacities, urban development </li></ul></ul><ul><ul><li>Adjacent region as catchment area </li></ul></ul><ul><ul><li>Branded destination on its own </li></ul></ul><ul><ul><li>Vertical clusters with top companies </li></ul></ul><ul><ul><li>Free trade zones </li></ul></ul><ul><ul><li>Aerotropolis </li></ul></ul>
    8. 8. Airports Becoming Service Providers: Technology is Consumed as a Service Smart Retail: Lean Retail, Secure Store Solutions Smart Transport Services: Personal Travel Assistant Smart Building Services Smart Hospitality: Shared Concierge Smart Traffic and Facilities Management Smart Supply Chain and MRO Services Smart Location-Based Services Smart Security      Airport Services Menu    Enabling Enhanced Customer Experience, New Revenue Streams, Operational Excellence and Improved Security
    9. 9. The World In Flight – Aerotropolis at the Center Source: IATA Growth: 1975 - 2005 Growth: 2010 - 2014 Growth: 2010 - 2050 154% Global GDP 335% World Trade 1,395% Air Cargo Value 37% Air Travelers 23% Cargo Traffic 566% Air Travelers 1190% Cargo Traffic 1/3 World Goods $1 Trillion World Goods 1% World Goods By Weight By Air - Today
    10. 10. The Rules of Competition Have Changed What Cities Want: What Cities Require: Industrial Competitiveness Job Creation Business Location Citizen Quality Of Life <ul><li>Speed </li></ul><ul><li>Agility </li></ul><ul><li>Accessibility </li></ul>Competition Has Evolved From Nations to Cities. From Companies to Supply Chains and Networks .
    11. 11. Thank You
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