ICT for City ManagementUsing information and communications technology to enable, engage and empowercity stakeholdersA res...
ForewordForewordR   ecent research by the Organization for    Economic Cooperation and Develop-ment (OECD) indicates that ...
Table of Contents    Table of Contents                                       	   Foreword	                             03 ...
Case Studies                                                             50Abu Dhabi’s Masdar City: A Sustainable Metropol...
Executive Summary6     ICT for City Management
Executive SummaryM     ore than half the world’s population      lives in cities. This level of urbanizationis unprecedent...
Executive Summary                                                                  eas crucial to effective city governanc...
managing traffic flow more efficiently in        when filing taxes or applying for licenses) is   The key findings of the ...
Executive Summary                               ability in government; complex and over-        to invest heavily in new t...
tory view is doubtless due to the financial     adoption of such innovations, as well as put     citizen engagement though...
Enhancing Competitiveness01Key findings 	 Public-sector officials and businesses think a strong Internet network is crucia...
Enhancing     CompetitivenessC    onsiderations of competitiveness are     crucial in the city governance balancingact. In...
Enhancing Competitiveness                                                         nies, which would like to run all sales ...
“ICT needs be considered in the same       petitiveness. This is to be expected, since     pore’s Infocomm Development Aut...
Enhancing Competitiveness                                                          trol, often dictate core workforce skil...
solved through making processes simpler             dents globally pick “higher efficiency” as      cates needed to renew ...
Enhancing Competitiveness                                                     and permits by 70% and reduce the need      ...
“Some of these [city] systems have grown                                ment level] so green initiatives become           ...
Managing Physical Infrastructure02Key findings 	 Emerging cities are integrating ICT into their new infrastructure, while ...
Managing Physical   InfrastructureA   city’s core physical infrastructure in-    cludes its buildings, transport networksa...
Managing Physical Infrastructure                                                            barrier to competitiveness tha...
volves the aggregation of data on the usage    criminal cases and residents’ complaints).      the transportation, housing...
Managing Physical Infrastructure                                                           New York University. “In Wester...
ing such systems is not always straightfor-                                   in emerging cities, 58% in transitional citi...
Managing Physical Infrastructure                                              shows that lack of awareness about such     ...
issues like traffic management and securi-      used both to make better decisions about           police department has b...
Protecting the Natural Environment03Key findings 	 Citizens feel that ICT can influence behavior towards environmental con...
Protecting the      Natural EnvironmentM     anaging a city’s impact on the natural      environment was not always seen a...
Protecting the Natural Environment                                                      Citizens and businesses feel that ...
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders
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ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders

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This paper is based on surveys about ICT and city management of three stakeholder groups—public officials, city residents and business executives—in 15 cities across the world, conducted in March-April 2010 by the Economist Intelligence Unit. The EIU compiled the survey questions in consultation with Siemens Global Centre of Competence, City Management (the sponsors of the research, based in Singapore) and with input from Ashish Lall, Associate Professor affiliated with the Asia Competitiveness Institute at the Lee Kuan Yew School of Public Policy, National University of Singapore.

In addition to the surveys, the Economist Intelligence Unit’s research team independently interviewed public officials, executives and experts on the subject of ICT in city management. From these interviews, and extensive background research, the Economist Intelligence Unit selected a number of innovative case studies to illustrate findings in each section of the report. These are included in a separate section at the end of the report. The Economist Intelligence Unit bears sole responsibility for the editorial content of this report.

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ICT for City Management: Using information and communications technology to enable, engage and empower city stakeholders

  1. 1. ICT for City ManagementUsing information and communications technology to enable, engage and empowercity stakeholdersA research project conducted by the Economist Intelligence UnitSponsored by Siemens ICT for City Management 1
  2. 2. ForewordForewordR ecent research by the Organization for Economic Cooperation and Develop-ment (OECD) indicates that a little more This study by the Economist Intelligence Unit, sponsored by Siemens, focuses on the role of ICT in four areas crucial to effective ubiquity is a long one, riddled with uncer- tainties. For instance, I first encountered intelligent vehicle highway systems as athan half the population of OECD countries city governance: competitiveness, physical researcher for the Canadian Royal Commis-lives in cities, and that capital cities account infrastructure, the natural environment and sion on National Passenger Transportationfor about half of gross domestic product.1 public administration. It explores how the in the early 1990s. Nearly twenty yearsIn developing countries, cities are often use of ICT helps cities reap the benefits of have passed but the technology is not ineven larger relative to national econo- agglomeration while mitigating the costs common use; far from it. This is becausemies. Globally, urban centers account for of increasing urbanization that can hinder a sponsor of new technology must playan overwhelming proportion of national economic activity and damage the natural two games: a game of value and a gamepopulation, employment, output, industry environment. of perceptions. This study is important be-clusters and patents. This is not a new phe- cause it addresses the latter: by adminis-nomenon. Since the Industrial Revolution This study draws our attention to sev- tering surveys to public officials, businessin the nineteenth century the importance eral important characteristics of ICT. Firstly, and private individuals it can help city of-of cities has been growing steadily. The vi- the virtual world reflects the realities of ficials get a sense of the perception gapssionary social observer Jane Jacobs noted the physical world, so leveraging ICT for between city stakeholders that often putmany years ago that cities are the engines improved city governance requires orga- the brakes on the adoption of new tech-of national economic development.2 nizational change in city administrations. nologies. Conflicting regulations, complicated proce- A much more recent development is the dures, and silo mindsets must change be- I feel fortunate to be associated withemergence and proliferation of informa- fore e-government can deliver on its poten- this effort, albeit in a very small way, andtion and communications technology (ICT). tial. Secondly, the medium of technology I am confident that it is of value to privateIn the past half century ICT has already is interactive: as many of the case studies citizens, business and public officials to ap-changed our lives and our behavior in nu- included in this report indicate, the average preciate not just the challenges but alsomerous ways. With the advent of 24-7 con- citizen has an important role to play, not the opportunities that ICT can provide fornectivity and cloud computing we are start- just in contributing data anonymously but urban governance.ing to get a glimpse of how this technology also in developing applications for anythingcan achieve significantly more, and reach from spotting trees to crime prevention Ashish Lallits true potential. Indeed, it is fast becom- measures. The creativity and contribution Associate Professoring the “fifth utility” (after electricity, water, of citizens must be tapped. Asia Competitiveness Institutegas and telephony), in that some basic level Lee Kuan Yew School of Public Policyof service is increasingly considered essen- Lastly, it is important to remember National University of Singaporetial to meet citizens’ everyday needs. that in networked technology, the road to June 20101) “Competitive Cities in the Global Economy”, OECD (2006)2) Jane Jacobs, Cities and the Wealth of Nations: Principles of Economic Life, Vintage Books, New York (1985). ICT for City Management 3
  3. 3. Table of Contents Table of Contents Foreword 03 Executive Summary 06 Chapter 01 Enhancing Competitiveness 12 02 Managing Physical Infrastructure 20 03 Protecting the Natural Environment 28 04 Improving Public Administration 34 Conclusions 42 About the Research 464 ICT for City Management
  4. 4. Case Studies 50Abu Dhabi’s Masdar City: A Sustainable Metropolis 52Berlin: Controlling Green Buildings 53Buenos Aires: Capacity Building 54The Copenhagen Wheel 55Delhi’s Mission Convergence: Welfare to the People 56Dubai: Saving Time, Saving Money 57Istanbul: Safer Streets Through Technology 58London: Adaptive Signalling 59Madrid’s Modern Metro 60Mumbai’s Citizen Services Portal: Power to the People 61Munich: Efficiency Through E-Government 62New York: Dial 311 in a Non-Emergency 63Shanghai: Smart City, Smarter Transport 64Singapore: Smarter Grids, Cleaner City? 65Vienna: Public Transport Information on the Move 66 ICT for City Management 5
  5. 5. Executive Summary6 ICT for City Management
  6. 6. Executive SummaryM ore than half the world’s population lives in cities. This level of urbanizationis unprecedented in human history—and it century ago of widespread electrification. Systems to collect and analyze data are enhancing the safety, security, usability ers must balance: achieving a high quality of life for all citizens, maintaining economic competitiveness and protecting the naturalis expected to keep increasing. By 2050 the and efficiency of city infrastructure. Mobile environment. Traditionally, the provisionworld’s total population is forecast to grow phones, the Internet and wireless technol- of an effective and efficient infrastructureby 3.1bn people while the urban popula- ogy are transforming the way citizens and system was the principal tool used by pub-tion is expected to grow by 2.5bn, reach- businesses interact with city officials, en- lic administrations to meet these gover-ing nearly 70% of the total.3 Urbanization abling them to monitor the impact of their nance challenges, and this was the focuson this scale brings numerous governance actions on the natural environment. of the first report. But it is only one side ofchallenges. Increasingly, information and The nature of this revolution in city the story. ICT is becoming as vital a tool incommunications technology (ICT) is help- governance warrants closer examination. the governance balancing act as buildings,ing to meet these challenges. Previous research sponsored by Siemens, transport networks and utilities systems. A revolution in city management is “Megacity Challenges”4, investigated the The chapters of this report thereforeunderway, comparable to the adoption a three overriding concerns that city manag- examine the importance of ICT in four ar-3) World Urbanization Prospects, the 2007 Revision, UN Population Division, Department of Economic and Social Affairs4) “Megacity Challenges: A stakeholder perspective”, GlobeScan/MRC McLean Hazel, 2007 ICT for City Management 7
  7. 7. Executive Summary eas crucial to effective city governance (and therefore, indirectly, to a high quality of life). The first is Enhancing Competitive- ness. Basic ICT infrastructures like broad- band and Wi-Fi are vital to making a city an attractive investment destination. But so too are e-government services, such as online portals and processes, that can be used to drive efficiencies and make interac- tions between businesses and city officials quicker and more transparent. These are all areas that business executives claim have a major impact on competitiveness. The second chapter, Managing Physical Infrastructure, looks at ICT’s crucial role in making the operation of cities’ transport, buildings and utilities systems more ef- ficient. This includes technologies such as congestion charging, traffic-flow manage- ment, smart payment systems and video surveillance. Here, new technology can be applied to old infrastructure, for example Competitiveness Governance Quality of life Environment8 ICT for City Management
  8. 8. managing traffic flow more efficiently in when filing taxes or applying for licenses) is The key findings of the research include theolder transport systems creaking under the obvious. But the research demonstrates the following:strain of population expansion. importance of changing people’s attitudes The third chapter, Protecting the Natu- in order to make the most of what ICT can Businesses and public officials think aral Environment, examines how technolo- offer. strong Internet network is crucial for agy is enabling stakeholders to keep track of To ascertain the opinions of each stake- city’s competitiveness. Some 77% of busi-their use of scarce resources and their im- holder group of the role of ICT in city gov- nesses surveyed think an improved broad-pact on the natural environment. The provi- ernance, research for this paper involved band network would have a significant im-sion of knowledge about energy and water surveys of public officials, residents and pact on city competitiveness, making it theconsumption—combined with the right fi- businesses in 15 cities across the world. The most important ICT technology for attract-nancial incentives—could lead to more en- cities were chosen to represent a broad mix ing private-sector investment. City authori-vironmentally sound behavior on the part of size, economic maturity, level of devel- ties therefore need to consider that suchof all stakeholders. Meanwhile, online envi- opment and importance to national econo- technologies are as fundamental to a city’sronment monitoring tools are empowering mies. The report compares the survey re- infrastructure as are its buildings, transportcitizens to hold city managers accountable sults across three city archetypes related networks and utilities.for substandard air and water quality, two to their economic development: emerging,pressing quality-of-life concerns. transitional and mature (explained in more Businesses feel that government ineffi- Finally, Improving Public Administration detail on page 48). Examples of successful ciency and opacity are among the biggestlooks at the role of services like e-govern- deployment of ICT solutions in cities world- constraints to a city’s competitiveness—ment in improving the efficiency and trans- wide across the four topic areas are also but expect e-government to help. Moreparency of public administration. Here the described in case studies at the end of the than half the businesses surveyed cite a lackrole of ICT in making life easier (for example report. of efficiency, transparency and account- ICT for City Management 9
  9. 9. Executive Summary ability in government; complex and over- to invest heavily in new transport systems, lapping regulations and policies; and lack of buildings and other physical infrastructure, engagement with businesses and investors doing so from scratch enables them to in- as major barriers to city competitiveness. corporate cutting-edge ICT systems from These are all problems that e-government the outset. In mature cities, the basic foun- can address to some degree. More than dations of the physical infrastructure were 89% of business respondents picked “High- often put in place before ICT was available, er efficiency” as an expected key benefit of and hence the key application of ICT is to using electronic service delivery. However, enhance the efficiency (and prolong the businesses also see “silo mentalities” be- life) of legacy infrastructure. tween public-sector agencies as a barrier to the adoption of electronic services. Though While solutions like congestion charg- connecting departments through common ing are known to be effective, citizens technology platforms and sharing data can may not necessarily see their value. help resolve this, organizational change is Residents in all cities agree that road traf- equally as important. fic congestion has a severe negative impact on quality of life (cited by 50% of respon- Emerging cities are integrating ICT into dents, making it the most commonly cited their new infrastructure, while mature quality-of-life problem). And in cities where cities can make use of ICT to prolong the they have been implemented, ICT solutions life of existing systems. A higher propor- like congestion charging have been shown tion of public officials in emerging cities to be effective. Yet transport does not rank than in mature cities (67%, compared to highly in terms of citizens’ priorities for ICT 57%) agree or strongly agree that investing investment—nor do many citizens think in ICT to manage infrastructure is as impor- congestion charging in particular will have tant as building the infrastructure itself. a major impact on their quality of life or the Though these cities are often more likely natural environment. While this contradic-10 ICT for City Management
  10. 10. tory view is doubtless due to the financial adoption of such innovations, as well as put citizen engagement though ICT. Thoughpenalties that congestion charging impos- in place the right policy and pricing frame- much of this is convenience-related, it mayes, getting public support for such schemes work to encourage environmentally sound have direct benefits for city authorities. Forrequires more from public officials in the behavior. example, platforms enabling citizens toway of education and information sharing. contribute their own assessments of envi-This also applies to other “top-down” ICT Stakeholders blame each other for the ronmental factors could lead to a more ac-infrastructure management solutions, such slow adoption of electronic service de- curate assessment (and closer scrutiny) ofas video surveillance systems. livery. Businesses perceive the attitude of urban environmental conditions. For mu- public officials to be the biggest barrier to nicipalities with limited budgets, citizen-Citizens feel that ICT can influence behav- the more widespread use of online public designed apps are a cheap source of inno-ior towards environmental conservation services. A majority of citizens surveyed also vation: some city governments have beenby giving them more information about think public officials would not respond to launching competitions for applicationstheir usage of resources such as energy them online. By contrast, public officials in that not only increase transparency but alsoand water. Some 74% of citizens globally the survey cite citizens’ resistance to online improve city services.claim that they would be likely to change transactions as one of the greatest chal- These findings show that while ICTtheir energy and water consumption if their lenges to e-government (second only to a has the power to address the four cityaccess to information about their own us- lack of appropriate technology in the first governance challenges described in eachage improved. Some 61% of businesses say place). Such finger-pointing reflects the chapter—and thereby improve quality ofthe same. ICT technologies that provide fact that the successful adoption of elec- life for city residents—the successful usesuch information therefore have the poten- tronic service delivery requires attitudinal of ICT is about far more than merely invest-tial to help city stakeholders moderate their shifts on the part of all stakeholders. This ing in hardware and software. City officialsconsumption of natural resources. How- is recognized to some degree: citizens ad- must understand the needs of citizens andever, citizens admit that changing behavior mit that for many transactions they would businesses to ensure they are effectivelyultimately depends on the right financial still rather interact in person (although meeting them. They must educate and in-incentives and disincentives being in place. email is by far the most preferred form of form stakeholders about contentious (butThis admission suggests that public officials communication with public officials), and effective) technologies. They also need toneed to play a leading role in driving the public officials admit they lack training and be aware of the attitudinal and organiza- equipment. Public officials need to address tional change needed to make the most of the organizational and attitudinal barriers e-government. that may prohibit the adoption of e-govern- Finally, municipal governments can use ment, which are as important to address as citizens’ engagement (and creativity) to getting the right hardware and software in their own advantage, whether by collect- place. ing data or promoting the development of citizen-designed applications. Unlike other Citizen-developed applications are an technologies that have transformed city life emerging trend around the world. The in the past, ICT enables stakeholders to in- proliferation of citizen-designed ICT ap- volve themselves directly in how cities are plications to improve urban living is phe- run, and thereby play a part in meeting the nomenal, demonstrating the real power of challenges of urbanization. ICT for City Management 11
  11. 11. Enhancing Competitiveness01Key findings Public-sector officials and businesses think a strong Internet network is crucial for a city’s competitiveness Businesses also think an ICT-savvy workforce is vital to competitiveness Businesses feel that government inefficiency and opacity are the biggest constraints to a city’s competitiveness, and want interactions with officials to be quicker Businesses feel that public sector officials are still averse to electronic service delivery. But online government services can improve efficiency and help break down bureaucratic silos12 ICT for City Management
  12. 12. Enhancing CompetitivenessC onsiderations of competitiveness are crucial in the city governance balancingact. In the “Megacity Challenges” report, A strong Internet network is crucial for a city’s competitiveness. Access to uni- versal high-speed broadband services is on competitiveness while 60% think the same of an improved broadband network (see Figure 1).81% of city managers cited the economy now seen by business as a prerequisite The importance of high-speed Internetand employment as key issues driving their for competitiveness. In the survey, 77% connections for business is difficult to over-decision-making.5 ICT has a dual role in this of businesses globally think an improved state. In an increasingly 24-7 professionalaspect of municipal governance. Firstly, a broadband network would have a major world, to be competitive means being ablecity needs to provide core ICT infrastructure or significant impact on competitiveness, to pitch for contracts, make deals, and de-(or allow the private sector to provide it) to while 65% thought the same of citywide liver goods and services regardless of theenable businesses to function effectively. Wi-Fi coverage. The latter is increasingly day of the week or the time of day.Secondly, authorities need to be able to of- important in enabling seamless connectiv- Sara Draper, head of knowledge econo-fer streamlined and efficient public services ity to broadband services. Public officials in my at the Confederation of British Industryto business through online e-government fact prioritize this: 71% think citywide Wi-Fi (CBI), the UK’s leading business lobby, citesplatforms. coverage would have a significant impact the example of one of its member compa-5) “Megacity Challenges: A stakeholder perspective”, GlobeScan/MRC McLean Hazel, 2007 ICT for City Management 13
  13. 13. Enhancing Competitiveness nies, which would like to run all sales pre- tives in emerging cities (60%, compared to sentations from a central database to which 46% elsewhere) give this the highest rank its sales agents can connect remotely. in terms of its impact. It is no surprise that, “They don’t do this because they can never in general, countries that are more geared guarantee that their reps can log on to re- towards attracting services investment trieve the presentation,” she says. “So each tend to place a higher emphasis on upgrad- sales rep has different versions on different ing the communications infrastructure. laptops—and from a quality control point Cities that are rapidly expanding have of view that’s not great.” the chance to include such vital ICT infra- Such is the fundamental nature of In- structure from scratch (or put in place the ternet infrastructure in modern globalized regulations and guidelines to allow the pri- economies that there is very little differ- vate sector to do so), rather than upgrad- ence between the views of businesses in ing legacy technology piecemeal. From a emerging, transitional and mature cities on planning perspective technologies such as the importance of broadband—although it broadband should be treated as part of city is notable that a higher proportion of execu- infrastructure, not separate from it.Figure 1 ICT with biggest expected impact on competitiveness % respondents expecting each technology to have a major/significant impact on city competitiveness (ranking 1/2 on 5-point scale of expected impact, where 1=major impact and 5=no or negative impact) Public officials 60% Businesses 77% Public officials 71% Businesses 65% Improved broadband network Citywide Wi-Fi coverage14 ICT for City Management
  14. 14. “ICT needs be considered in the same petitiveness. This is to be expected, since pore’s Infocomm Development Authority,category as water, electricity, roads and installing world-class ICT infrastructure is cites a number of specialized training planspublic transport,” says Peter Siggins, a pointless unless employees know how to for high-school students to postgraduatesmobile business expert at PA Consulting use it. Having a workforce that is skilled in that aim to create “a pipeline of experts inGroup. “And if business is being attracted the use of ICT is another crucial component high-end, niche areas” such as cloud com-[by improved connectivity], governments to attracting investment. puting and ICT security that will ensure anneed to consider what speeds and capacity Singapore recognizes the complemen- available supply of highly-skilled employ-are needed and how that can be built into tary relationship between ICT infrastruc- ees.the urban planning process.” ture, education and competitiveness. As a Cities that are aiming to become high- city-state it is in the fortunate position of tech clusters will need to follow a similarAn ICT-savvy workforce is also vital to being able to marry municipal and national strategy. Even those that do not have suchcompetitiveness. In the surveys 71% of goals: building a workforce with good tech- lofty aspirations need to ensure that, atbusiness executives globally say greater nology skills will attract businesses to the the very least, to maintain their competi-public use of ICT in education, training and city, while also enhancing the competitive- tiveness their workforces are ICT-savvy.development of the workforce would have ness of Singapore’s own national ICT indus- National education curricula, over whicha major or significant impact on city com- try. Ronnie Tay, chief executive of Singa- individual cities may not have much con- ICT for City Management 15
  15. 15. Enhancing Competitiveness trol, often dictate core workforce skills. And jor barriers. A majority of businesses see budgetary limitations often hinder the ex- complex and overlapping regulations and tent to which ICT can be used in education, policies and a lack of efficiency, transpar- training and development. But municipal ency and accountability in government as authorities nonetheless need to ensure that the biggest constraints on city competitive- the workforce is trained in using ICT effec- ness (see Figure 2). These could be seen as tively. symptomatic of old-fashioned bureaucratic inefficiency—as well as more serious issues Businesses feel that government inef- like corruption, which is unsurprisingly seen ficiency and opacity are among the big- as a bigger problem in emerging cities. gest constraints to a city’s competitive- To be sure, complex rules and regula- ness, and want interactions with officials tions often have deep legislative roots not to be quicker. If a modern ICT infrastruc- easily untangled through the mere appli- ture is a major enabler of competitiveness, cation of technology. But many practical then slow and inefficient interactions be- problems related to interactions between tween authorities and businesses are ma- businesses and city authorities can be re-Figure 2 Biggest barriers to competitiveness 58% Lack of efficiency, transparency 64% and accountability in government 43% 47% Complex and overlapping 59% regulations and policies 58% 49% Corruption 23% 7% 44% Poor physical infrastructure 14% (roads, airports, ports, etc) 15% 23% Poor air quality/ 5% environmental standards 4% Emerging cities Transitional cities % business respondents mentioning in Mature cities their top three competitiveness constraints16 ICT for City Management
  16. 16. solved through making processes simpler dents globally pick “higher efficiency” as cates needed to renew their visas. Puttingand quicker. Business executives cite “Re- an expected key benefit of using ICT in the the application process online has reducedducing process time or complexity” as the delivery of public or regulatory services the time taken to do this from seven work-most important factor where improve- to businesses—followed by lower costs ing days to an overnight service. (See thements should be made by the government (67%) and improved transparency and ac- case study on Dubai on page 57.)and regulatory authorities. This was true of countability (55%). In emerging cities, 75% Meanwhile, in Barcelona, the city coun-all business-government transactions with of businesses think ICT will improve trans- cil is making efforts to streamline govern-the exception of procurement, where “Im- parency and accountability, which is sig- ment-to-business procedures. Pilar Conesa,proving transparency and accountability” nificant given their greater concerns over chief information officer and e-governmentcame top. (Figure 3.) corruption. director of the Barcelona City Council, ex- There are some straightforward ways There are numerous examples of this plains that the goal is to make government-that municipal governments can reduce sort of improvement in efficiency. In Dubai, to-business transactions far quicker andprocess time and complexity by moving where a high proportion of business execu- simpler. For example, the city believes thatservices online. Businesses expect signifi- tives are non-residents, the city has used a new e-licenses service—available onlinecant competitiveness benefits from doing ICT to make it easier for expatriates to book or through self-service machines—will cutso. More than 89% of business respon- the medical tests and obtain the certifi- the processing time for obtaining licensesFigure 3 Businesses want clearer, quicker cheaper interaction with authorities Registration of new business/ 61% application for approvals and 32% licenses 22% 46% Filing of taxes 27% 22% Trade (export-import) approvals, 37% licenses and clearances from 34% customs/ border agencies 19% 28% Procurement by the 18% government 37% Should be quicker/simpler Should be cheaper % business respondents mentioning in their top two most sought-after Should be more transparent improvements ICT for City Management 17
  17. 17. Enhancing Competitiveness and permits by 70% and reduce the need businesses, executives picked “Public sector for businesses to travel into city offices. The is averse to online transactions with busi- time taken to obtain public road occupancy nesses (e.g., insisting on paper documents)” permits (used by companies such as con- and “Lack of inter-departmental connectiv- struction firms) should fall from 35 days to ity and communication in the government”, 15 days. in equal measure. The latter suggests con- tinuing problems with the “silo mentality” Businesses feel that public sector offi- that can afflict bureaucracies—exemplified cials are still averse to electronic service in the need to deal with multiple agencies delivery. The solutions discussed above or offices, each of which often has little depend on public officials being willing to idea of what the others are doing. adopt online service delivery. But business- Two examples serve to underline the es are not sure that they are ready to do so. frustrations that such a mentality can pro- Figure 4 shows that, when asked to iden- duce. One is when trying to implement tify the key challenges in driving the use of cross-departmental initiatives targeted at online administration services targeted at a broader goal, such as climate change.Figure 4 Top barriers to usage of business-related e-government Public sector is averse to online transactions with businesses (eg, 42% insisting on paper documents) Lack of inter-departmental connectivity and communication in 42% the government Lack of suitable training and skill development for 33% public-sector executives Lack of strong leadership within the government/ regulatory authorities 31% Lack of appropriate technology in the public sector 23% Businesses are averse to online transactions with public agencies (eg, concerns over privacy security, complexity, etc) 22% % business respondents mentioning in their top three barriers to usage of online administration services targeted at businesses18 ICT for City Management
  18. 18. “Some of these [city] systems have grown ment level] so green initiatives become in the federal states, and a single onlineup without central control so the transpor- complex to deliver.” interface was adopted as a national publictation system is not necessarily controlled A second example is with procurement, agency standard for transactions. (See alsoby one department and lighting systems in which keeping track of opportunities can the case study on page 62.)might be controlled by different boroughs,” be a headache given the involvement of Broadly, therefore, the biggest boostsays Molly Webb, head of strategic engage- many different jurisdictions. “There are still to competitiveness can come from cityment at The Climate Group, an internation- some difficulties [in the UK] in that there agencies transforming themselves fromal non-profit organization that promotes are thousands of portals that agencies use,” departmentally confined institutions toenvironmentally sound policy and tech- says James Fothergill, head of public ser- being customer-driven service providers.nologies. vices at the CBI. “So it’s difficult for a small Barcelona’s government recognizes this. This can be a particular frustration for company to monitor all the opportunities “It’s not enough to simply switch paper tothe private sector, notes Ms Webb. “Com- coming out.” Business respondents cite electronic documents,” says Ms Conesa. “Topanies like IBM, HP, Cisco, Siemens and GE better transparency as the most sought- reduce the number of signatures, you needall have systems integration capabilities or after improvement relating to procurement to change the process inside the city coun-large-scale software deployment capability (picked by 37% of respondents). cil and take account of the external actorsbut there isn’t one owner [at city govern- The adoption of ICT systems can help that take part in the process.” drive bureaucratic connectedness and ICT can help drive this process but it is improve communication between de- far from easy. “We should never underes- partments. For example, the Vienna City timate the power of entrenched organiza- Administration has networked all its busi- tional cultures,” says Mitchell Moss, profes- ness-related administrative departments, sor of urban policy and planning at New and the local chamber of commerce is also York University’s Wagner Graduate School part of the system. This means that busi- of Public Service. “There’s still an amazing ness customers only need to deal with a capacity of different public service agencies single entity when conducting tasks such to try to act as if they’re monopolies.” If mu- as applying for a business license, register- nicipal agencies can temper this mentality ing the appointment of a new managing they will improve their city’s competitive- director or changing a business address in ness. Vienna. The system, launched in 2001, has The research therefore suggests ICT’s proved popular. Online business registra- role in urban competitiveness is twofold. tions rose sevenfold in the four years after First the provision of ICT infrastructure, par- it was introduced.6 ticularly high-speed Internet connections, Installing systems that require the use is crucial to attracting investment. This across different departments of common is no longer a matter of convenience—it data can also help improve bureaucratic should be considered equally vital to a city’s connectedness. Shanghai, for example, is smooth operation as its transport networks working to enable several departments to and utilities. Secondly, public agencies can use a common database (see the case study use online service delivery to speed up and on page 64). Another example of such inte- simplify government-to-business interac- gration is evident in Munich. When the city tions, while common data platforms can was developing its e-government services, help inter-departmental connectedness. public agencies had to agree upon single But organizational change is necessary if data standards to facilitate seamless data such ICT solutions are to yield their full ben- exchange with other registration offices efits.6) “E-Government Models: Cases from European Cities”, Barcelona City Council, 2007 ICT for City Management 19
  19. 19. Managing Physical Infrastructure02Key findings Emerging cities are integrating ICT into their new infrastructure, while mature cities make use of ICT to prolong the life of existing systems While solutions like congestion charging are known to be effective, citizens may not necessarily see their value20 ICT for City Management
  20. 20. Managing Physical InfrastructureA city’s core physical infrastructure in- cludes its buildings, transport networksand utilities. The emergence of ICT allows increasingly aware that investment in such technologies is needed as much as invest- ment in the built environment. At first take this is a surprising result: one of the key characteristics of emerging cities is the incredible level of investment incity managers to manage this infrastruc- physical infrastructure that has taken placeture more efficiently. Data from transport Emerging cities are integrating ICT into as they have expanded. This has often beensystems (for instance traffic lights or con- their new infrastructure. In emerging and driven by the needs of competitiveness. In-gestion charging cameras) can help au- transitional cities, ICT appears to be taking deed, businesses themselves in these citiesthorities manage passenger or traffic flow on a greater role than in more mature cit- (59%) are far more likely to agree with theand prioritize transport investments. Sen- ies. A higher proportion of public officials in statement “Investment in roads, buildingssors that gather data and send it wirelessly these cities than in mature cities (66-67%, and physical infrastructure should be priori-to central databases can monitor the use of compared to 57%) agree or strongly agree tized ahead of ICT” than businesses in ma-buildings and public spaces. Systems con- that investing in ICT to manage infrastruc- ture cities (27%; Figure 6). And in emergingnected to CCTV around the city can track ture is as important as building the infra- cities, not surprisingly, far more businessessecurity threats. Municipal authorities are structure itself. (Figure 5.) (44%) cite poor physical infrastructure as a ICT for City Management 21
  21. 21. Managing Physical Infrastructure barrier to competitiveness than in transi- are certainly more popular in emerging cit- tional or mature cities (14% and 15%). ies, where public transport systems are new- Nonetheless, public officials in emerg- er, than in more mature cities (particularly ing cities are surer than their counterparts in Western Europe and the US), where they elsewhere of the power of ICT (nearly 80% have been grafted onto older systems, and agree that ICT can solve competitiveness more antiquated payment methods persist. problems, compared to 60% in transitional Some 57% of respondents in emerging cit- and mature cities). This may be because ies say they used smart cards or e-payment they often have the opportunity to include for public transport, compared to 33% in cutting-edge ICT systems within the physi- transitional cities and 25% in mature cities. cal infrastructure they are building from Transport systems are not the only kind scratch. of physical infrastructure that can benefit E-payment systems for public transport from the application of ICT. Shanghai, for are one example. Such payment methods example, is taking a broad approach that in-Figure 5 Figure 6 “Investing in ICT systems to manage “Investment in roads, buildings and infrastructure is as important as physical physical infrastructure should be infrastructure itself” prioritized ahead of ICT” Emerging cities 66% Emerging cities 59% Transitional cities 67% Transitional cities 35% Mature cities 57% Mature cities 27% 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 * % public officials agreeing or * % business respondents agreeing or strongly agreeing with the statement strongly agreeing with the statement22 ICT for City Management
  22. 22. volves the aggregation of data on the usage criminal cases and residents’ complaints). the transportation, housing and land de-of a variety of buildings and public spaces The Commission is planning to use the data velopment, and environmental protection(as well as transport systems). The munici- it collects to manage the city’s entire built agencies. The goal is to integrate public-pal government has a bureau dedicated to environment. space-related information both for day-to-collecting, collating and using this data, A key focus of the integration of infor- day management purposes and to informpart of the Shanghai Municipal Commis- mation across departments is space man- policymakers’ long-term decision-making.sion of Economy and Informatization. Ac- agement, the target of a project known as (The transport-related aspects of this plancording to the Commission, its priority is a the “Shanghai Digital Space” initiative. In are examined in more detail in a case study“grid-style public management information this program, the city has installed wireless on page 64.)system” that integrates information across sensing devices to gather and report datavarious city departments—including land on issues such as building management Mature cities need ICT to support lega-and housing development, environmental and traffic flow. The Commission keeps a cy infrastructure. Shanghai’s holistic ap-protection, and public safety agencies (for central database that can be shared among proach may be contrasted to the situationexample in the reporting and handling of the city’s various departments—including facing mature cities. In some of them, es- sential systems—from water supply net- works and sanitation systems to under- ground rail transport—were designed and installed more than a century ago and are deeply embedded in the fabric of the city, making it difficult to replace or upgrade them except on a piecemeal basis. Information technology can still en- hance the efficiency of older systems in a variety of ways. For example, micropro- cessors such as remote telemetry units that connect the physical infrastructure to monitoring systems help companies and municipalities manage the water supply or wastewater collection and disposal. In wa- ter management, this kind of information flow enables the detection of leaks remote- ly without the need for manual inspections, while software allows companies to control water pressure to minimize the occurrence of leaks. Among the systems coming under most pressure in mature cities is transportation. Here, building roads or railways may not be physically, financially or politically possible, whereas investing in ICT to help manage the situation is. “The real change in transportation is not the building of new infrastructure but the use of information to make the infrastruc- ture more efficient,” says Mitchell Moss of ICT for City Management 23
  23. 23. Managing Physical Infrastructure New York University. “In Western countries timization Technique), a traffic light control we’re going to be relying more and more on system, has road sensors on the approach information technology to manage existing to a junction to monitor the traffic and set infrastructure—especially if we can’t afford the appropriate duration of the green light. to build new systems.” This can result in a 12% reduction in delays, London, for example, has deployed says Mr Bristow. (See also the case study on various ICT systems to optimize the use of page 59.) its roads, the layout of some of which dates from the days of horse-drawn transport. “It’s While solutions like congestion charging about having the technology in the road to are known to be effective, citizens may gather information,” says Alan Bristow, di- not necessarily see their value. The ap- rector of traffic operations at Transport for plication of information technology to the London. He says about 1,400 cameras on management of passenger and vehicle flow London’s streets help build up a picture of is essential if urban transport systems are to what is happening on the road network. At continue to support the growing number of the same time, Scoot (Split Cycle Offset Op- citizens using them. However, implement-Figure 7 Citizens don’t necessarily see the value of ICT solutions to congestion Road traffic has a big negative 50% impact on quality of life in the city* Congestion charging will have a major or significantly positive impact on the natural 40% environment** Congestion charging will have a major or significantly positive impact on quality 33% of life** * % respondents mentioning in their top three quality-of-life concerns ** % respondents ranking impact on quality of life 1 or 2 out of 5, where 1=major impact and 5=no or negative impact24 ICT for City Management
  24. 24. ing such systems is not always straightfor- in emerging cities, 58% in transitional cities paper permits to electronic tags) and 2003,ward. The survey suggests that even with and 44% in mature cities pick this in their road traffic was reduced by 13% and vehicleproven solutions for addressing some of the top three quality-of-life concerns. speed increased by 22%. In Stockholm, dur-most pressing urban infrastructure prob- There are numerous examples of ICT ing a trial period from January to July 2006,lems, not all stakeholders recognize their being deployed effectively to combat con- use of public transport rose by 6%, with 97%value. This is often because technologies gestion and carbon emissions. One solution of this increase occurring at times when thefor managing a city’s physical infrastructure is to impose restrictions or disincentives congestion tax was charged, while use ofare invisible, or may put a financial burden such as road pricing and tolls to reduce the park-and-ride systems increased by 23%.on the end user. flow of traffic into the city centers. These By the end of the trial, traffic was down by A good example of conflicting priorities systems can be highly effective, often almost 25%. Meanwhile, in San Diego, rev-is road traffic congestion. In the surveys, persuading citizens to change their sched- enues from a toll—which varies based onresidents in all cities agree that traffic con- ules, embark on car-sharing schemes with the congestion level that is analyzed everygestion has the most severe negative im- friends and colleagues or use public trans- six minutes—have allowed the city to makepact on quality of life—especially in those port more often. improvements to public transport, contrib-emerging cities experiencing the fastest For example, in Singapore between uting to a 25% increase in bus ridership.7population growth. Some 54% of citizens 1998 (when it upgraded its system from Despite these impressive results, con- gestion charging is not widely deployed. And the surveys in this report show that transport does not rank highly among citi- zens in terms of priorities for more informa- tion via ICT. Nor do many people think con- gestion charging in particular will have a major impact on the natural environment. Transport-related technologies, for exam- ple, were seventh (of 14) on the list of ICT investment priorities for citizens globally. In emerging and transitional cities, transport services ranked 12th and eighth respective- ly—although in mature cities they ranked fifth on aggregate. In addition, congestion charging itself is not regarded as having (or likely to have) a positive quality-of-life impact, doubtless because of the financial penalties it im- poses. One in five citizens globally think congestion charging has either no impact or a negative impact on quality of life, while only a third see it as having a significantly positive impact—making it by far the least popular ICT technology among those in the surveys. (Figure 7.) City governments planning to imple- ment such systems (or that have already adopted them) therefore need to do a bet- ter job of selling their benefits. The survey7) Figures in this paragraph cited in “Transit and Congestion Pricing: A Primer”, US Department of Transportation, Federal Highway Administration, April 2009 ICT for City Management 25
  25. 25. Managing Physical Infrastructure shows that lack of awareness about such vironmental issues (discussed in Chapter technologies is common. When asked 3). Some 65% of citizens, for example, say whether or not congestion charging was they would change their driving behavior available in their city, and whether they given better access to information about used it if so, some 45% of citizens on aggre- public transport options. Sharing informa- gate responded “don’t know/no opinion”. tion is therefore important to getting broad Even in the cities where congestion charg- stakeholder support for contentious ICT so- ing has been adopted, a surprising number lutions like congestion charging. of people picked this option. Financially punitive systems like road Keeping citizens informed is important. charging are never likely to be popular. But The principal benefit of such ICT systems better awareness of their benefits could is that they enable more efficient manage- influence the way citizens perceive them. ment of infrastructure through the collec- The surveys show the potential power of tion of better usage data. But there is no information to change behavior is signif- reason why they cannot also be used to icant—particularly when it comes to en- keep citizens informed about contentiousFigure 8 “Public safety and security concerns should always be prioritized ahead of citizens’ privacy concerns” Emerging cities 75% Transitional cities 65% Mature cities 46% Global 57% * % respondents agreeing or strongly agreeing with the statement26 ICT for City Management
  26. 26. issues like traffic management and securi- used both to make better decisions about police department has been rolling out aty—and thereby help them understand the city management and to inform the public. scheme called Mobile Electronic Systemsbenefits ICT can confer. Even in areas such as safety and secu- Integration to manage its security infra- Some cities are beginning to recognize rity, some cities are using ICT to keep the structure (examined in more detail in a casethis. For instance, the information collected public informed. This has become an espe- study on page 58). The system is accessibleby Transport for London’s road cameras is cially sensitive issue, with authorities need- to the general public.posted on the website, given out through ing to maximize safety and security while “Cameras, pointing to 175 differentthird parties such as the BBC’s local radio addressing citizens’ privacy concerns. In points in Istanbul, are accessible for the citi-stations, and broadcast by the Highways recent years, with cities such as New York, zens whenever they want via our websiteAgency via a digital radio station, while London, Mumbai and Madrid targeted by or using the IMM Mobile application,” says150 “JamCams” can be viewed by the pub- terrorist attacks, ensuring safety and se- Hakki Tok, head of the information technol-lic. New York City’s 311 service, through curity has become stakeholders’ topmost ogies department at the Istanbul Metropol-which citizens can register their complaints priority. itan Municipality. Clearly Istanbul is havingor concerns on a host of public services— Poor public safety is cited as a key quali- some success in engaging its constituents.examined in the case study on page 63—is ty-of-life concern by a third of citizens in the “Lack of transparency in government or en-another example. In both cases, data is survey (and 40% in emerging cities). Some gagement with city residents” is cited as a 57% of citizens globally (and 75% in emerg- problem by only 1.3% of its residents. ing cities) also say public safety and secu- ICT is therefore playing a dual role in rity should be prioritized ahead of citizens’ the management of physical infrastructure: privacy concerns. (Figure 8.) Despite vocal enabling the more efficient use of physical opposition in some Western cities—such systems but also informing citizens. Surpris- as London—about the implications for pri- ingly, it is the emerging cities in the survey vacy, such results tend to support the intro- that seem to recognize the power of ICT in duction of technologies like CCTV. Indeed, this regard more than their counterparts some 51% of citizens (60% in emerging cit- elsewhere. Given they are experiencing the ies) say more remote CCTV surveillance of most rapid growth, it is as well that authori- public areas would have a positive impact ties in these cities are aware of the ICT tools on their quality of life. available to cope with the challenges of ur- Some cities recognize the need to share banization. It also suggests that in the fu- information when introducing such tech- ture technology in these cities may surpass nologies. In Istanbul, for example, the city’s that used in richer countries. ICT for City Management 27
  27. 27. Protecting the Natural Environment03Key findings Citizens feel that ICT can influence behavior towards environmental conservation by giving them more information about their use of natural resources such as energy and water Citizens are increasingly engaged in environmental initiatives via ICT, particularly those in emerging cities28 ICT for City Management
  28. 28. Protecting the Natural EnvironmentM anaging a city’s impact on the natural environment was not always seen asbeing as important as managing its economic fied constraint on city competitiveness. From a global perspective it is also par- ticularly important that cities manage their for example, can track water consumption and also relay information remotely to water authorities to manage leaks. Smart energyenvironment or physical infrastructure. This impact on the environment. The C40, a grids can track energy usage data and allowis no longer the case: protecting the natural global group of cities united in tackling cli- flows of energy to as well as from the grid,environment is a key part of the governance mate change, estimates that cities account encouraging the use of renewable energybalancing act. Citizens across the world cite for 75% of energy consumption and 80% of sources by households and businesses. And“poor air quality” as a major quality-of-life the greenhouse gas emissions worldwide.8 importantly, the Internet and connectedconcern, for example (picked by one-third Often, reducing cities’ impact on the wireless devices allow citizens to monitor airof respondents in the survey). City officials environment means encouraging citizens and water quality—and provide their ownare also increasingly seeing this as vital for and businesses to change their behavior— feedback on the natural environment—the viability of the urban economy: globally particularly in their use of scarce resources. thereby holding authorities accountable“poor air quality and environmental stan- Here, ICT can play a vital role in gathering in their bid to manage the natural environ-dards” is the second-most-frequently identi- and providing information. Water meters, ment.8) “C40 Large Cities Climate Summit, Seoul Declaration”; http://www.c40cities.org/news/news-20090522.jsp ICT for City Management 29
  29. 29. Protecting the Natural Environment Citizens and businesses feel that ICT can meters, ranking above smart cards and e- influence behaviour towards environ- payment systems for public transport as mental conservation. The surveys show the most-used ICT initiative. Additionally, strong awareness among stakeholders that 28% of citizens say that, although smart en- ICT can play a significant part in helping ergy grids are not available they would like them reduce their impact on the environ- them to be (Figure 10). ment, in particular by giving them greater Such promises are encouraging, but access to information. Some 74% of citi- in practice changed behavior only comes zens globally claim that they would be likely through the application of sufficient incen- to change their energy and water consump- tives and disincentives. Citizens recognize tion if their access to relevant information this point: 40% agree that when attempt- improved. Some 61% of businesses say the ing to change peoples’ behavior towards same (Figure 9). environmental protection, financial incen- Promises to act are encouraging and tives and disincentives must be given more suggest that ICT solutions that provide such weight than education and awareness. information to stakeholders might be ex- Only 20% think it’s the other way round. pected to have a significant impact. Indeed, In some cases the technologies them- citizens’ use of water meters is already high selves provide this incentive. The reason in the cities where they are available. Some why water meters are popular, for example, 36% of citizens globally claim to use water is doubtless because in the long run theyFigure 9 Figure 10 “We are likely to change our energy/ “Which of the following initiatives are water consumption if given better access available in your city, and do you use them?” to information about usage levels” 100% 90% 23% 80% 34% Citizens 31% 43% 21% 1% Don’t know/ 70% 18% no opinion 4% 60% Not available but I would like it to be 50% 28% 23% Available but I 40% don’t use it Businesses 16% 45% 27% 12% 1% 30% Available, 23% 20% and I use it 36% Strongly agree Agree 10% 14% 0% Neither agree nor disagree Disagree “Smart” electricity Water meters grids that allow * Survey totals may not * Survey totals may not greater control Strongly disagree add to 100% because of add to 100% because of over energy usage rounding. rounding.30 ICT for City Management

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