Connected Cities
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Connected Cities



The ideas explored in Connected Cities chart the emergence of a political and economic phenomenon-the city as the new connected republic of the 21st Century. Simon Willis, Global Head of eGovernment ...

The ideas explored in Connected Cities chart the emergence of a political and economic phenomenon-the city as the new connected republic of the 21st Century. Simon Willis, Global Head of eGovernment for the Internet Business Solutions Group at Cisco Systems, has collated essays that show how different cities, at the cutting edge of the process, are grappling with the various stages of connectivity.



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Connected Cities Presentation Transcript

  • 1. Thought Leaders Essays from urban innovators Edited by Simon Willis
  • 2. Cities Contents Preface 2 Simon Willis, Director of the European Public Sector team, Internet Business Solutions Group, Cisco Systems Dubai 12 Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority Barcelona 20 Joan Clos, Mayor of Barcelona New York 28 Michael R Bloomberg, Mayor of the City of New York Stockholm 36 Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administration and Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm Milan 44 Silvio Scaglia, Chairman of e.Biscom, Milan Wroclaw 50 Slawomir Najnigier, Deputy Mayor of Wroclaw Manchester 54 Dave Carter, Director of the Digital Development Agency, Manchester Hamburg 68 Senator Gunnar Uldall, Minister for the Economy and Employment, Hamburg Hillingdon A case study: How to create the business case 74 Pacey Cheales, Corporate Programme Manager, Hillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council Biographies 110 1
  • 3. Preface Simon Willis, Director, Public Sector, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa T his is a book about cities, largely need flows more effectively to where written by cities. It is also a book people are, then there is less imperative to about the future of the city and bring them all into the same place. therefore a book about the Secondly, more collaborative ways of future of the place where most of us live. working and decision-making emerge and The city leaders writing here are a diverse this changes the relationship of the city group and their experiences with with itself and with its citizens. connecting themselves and their citizens are very different – but a number of In the following sections I look at three common themes emerge, which taken themes that emerge from the essays. The together and carried forward, suggest that first is the changing nature of work and we are on the brink of some very particularly the increasing importance of profound changes. collaboration in the successful enterprise. This is a much wider trend that cities are People construct the endlessly complex inevitably effected by. The second is the architectures of their cities over time – growing realisation that for the city to driven by their desire to be with each change in the way enterprises have other, learn from each other, and grow changed, they require the kind of economically, culturally and spiritually. To information exchange environment that serve these desires, cities have created enterprises now take for granted. In the physical spaces and mechanisms; the process they may have discovered the next street, the marketplace or the coffee pervasive social infrastructure to follow shops. In our own age these have been water, roads, power and telecoms. The supplemented by digital spaces. As the third theme is political – a new model for means for the instant exchange of digital the polis becomes possible when new information are built, a new dynamic ways of working are combined with a new emerges at the heart of what makes a city pervasive social infrastructure. These cities – information can flow towards people are collaboratively reconstructing rather than people towards information. themselves around the needs of their citizens. What emerges is the As this dynamic begins to affect work so it connected republic. has subtle but profound effects on the nature of the city. Firstly, the boundaries The first common theme we see emerging of the working day and of the workplace in these essays is that changes in ways of begin to blur. Cities are partly defined by working are starting to effect the city’s days and offices. If the information people fundamental strategic planning. The first 2
  • 4. essay from Dubai by a true innovator and verbal information is that networked entrepreneur, Saeed al Muntafiq, Director information takes the best route – General of Dubai Development and traditional information goes from point to Investment Authority, shows how point, while networked information takes digitisation and networking develops the the best route it can find. One of the way people work. Dubai constantly implications of this is that it becomes reinvents itself around the concept of the harder to control. This makes it both more trading hub. Demands for education and resilient – and harder to gatekeep. With IP medicine across a huge area are networking, fewer premiums are placed converging on Dubai’s new knowledge on, and less power is given to, the city – built on a fibre infrastructure. gatekeepers of information. This is potentially revolutionary. In the essay from Barcelona by Joan Clos, visionary mayor of Barcelona, you see an In connected cities, power and influence is example of an innovative, creative and a function of how well you facilitate competitive city that has seized the networks of information and action, not opportunity to change itself again and how much information you control. again over the past few decades. Mayor Collaboration and facilitation supplant Clos has put education at the heart of his hierarchy and formal structure as the city’s endless recreation of itself. dominant tests of effective organisation. It is not surprising to find cultures that The essay from New York by Mayor already tend towards the collaborative are Bloomberg shows how digitisation and at the forefront of this revolution. Our networking change the nature of work by fourth essay is a collective work from developing collaboration. The traditional Anita Ferm, Education Director of the City model of government put public servants of Stockholm, Per-Olof Gustafsson, Deputy in a position of gatekeepers, controlling Managing Director of Stockholm’s flows of information. The focus was to get Economic Development Office and Monica access to the information – to control it, Bernestrom, Head of the Department to trade it, to protect it. In New York (as TIME (Telecom, IT, Media and elsewhere) networked information has Entertainment|). Stockholm is a city changed the nature of gatekeeping. whose long-standing enthusiasm for collaboration has given it an edge in the One of the differences between networked struggle to embrace new thinking. information and telephonic, mailed or 3
  • 5. Preface Many cities are on the brink of taking a a slightly different set of effects on the fundamentally new step in their thinking. nature of our cities. It is in the nature of That is to categorise, in their minds, many of these infrastructures that the communications infrastructure as on the market cannot provide them at the outset. same level as roads, railways, dams and We all are aware that water and transport airports. The cities highlighted in this book are first developed as a social (and many others) know that they need to infrastructure, in the first instance created, modernise their cities so that people can paid for and owned by the public sector. interact within them more effectively. If a What emerges from these city essays is city is sufficiently connected, then the possibility that the next pervasive investors will arrive and find the right kind social infrastructure that society wants of employees. Competitive cities are to advance to the next stage, is increasingly regarding real broadband broadband fibre. networks as belonging in the same political and investment categories as Although there are exceptions, it appears transport networks. Fibre infrastructure for that the public sector may have a key role a couple of million people is equivalent in to play in this development. There are two cost to a couple of miles of highway. It fundamental reasons why a pervasive has become a viable option for a city social infrastructure cannot generally be investing in its future. The question is, effectively provided by the market. Firstly, whether and when it will become an that the investment required in this case imperative. (in order to achieve critical mass in connectivity) is so huge that the market All those reading this book will be acutely cannot move, because the services cannot aware of the rapid growth of the amount be provided to the consumer by the and the speed of connectivity in the past private sector until the connectivity is ten years. This transformation is available and the connectivity cannot be happening much faster than previous invested in until the demand for future revolutions. If you go to the Linx server services is understood. ( and look at internet activity over Europe’s largest internet exchange Investing in real broadband infrastructure point over recent years, you will see that is expensive. The establishment of the dot-com crash apparently didn’t telecoms presents the most obviously happen. Just about the only event that has comparable example. To build the a significant impact on the graph is fundamental social infrastructure for Christmas. The apparent rollercoaster that telecoms required public-sector we have been on since 2000 has been just intervention both at the beginning of that a trivial variation around a remorseless revolution and well into it. Then came a upward rise in connectivity. point of maturity where it became appropriate to allow the market much Each of the pervasive social infrastructures more freedom. In fact, you may require that our cities are built around, such as the market to drive innovation onwards those for water and transport, have a and give the consumer more choice, but slightly different set of characteristics and there is a build-out stage where you 4
  • 6. Preface require some kind of public investment the really fundamental passive longterm and public intervention to make it work. In infrastructure. The essays show different the case of real broadband the amount of models in different cities of what stands investment involved is large. between the infrastructure and the end users. These allow people access to The second set of reasons as to why the different service providers – whether it is market cannot provide broadband telephony, video telephony, IP telephony, structure is based on what services people security applications around housing require. Someone investing in estates and into schools, and then infrastructure will have to get payback education, healthcare provision, video on over such a long period of time that they demand and entertainment and more. We will require exclusivity over the services still don’t know what services will develop that they are going to provide. This limits in this environment. It is clear that the field of access and services. The city somebody needs to sit between the decision-maker or public-sector decision- fundamental investment and the set of maker (who wants people to have access services that are going to be provided, to a wide range of entertainment services, and the city is emerging in many places as government services, communications the vehicle to do that, on its own or services and so on) will find that their through a public/private partnership or needs are not met. City decision-makers through some other joint mechanism. may not want to have access limited and pre-defined by a single infrastructure Among our examples, the Milan story told investor or service provider. by the far-sighted Silvio Scaglia, Chairman of e.Biscom, is of a pure private play. The The essays in this book show how availability of venture capital in the late different environments create different 90s, the lack of pre-existing cable to models, but increasingly the city is prevent the new entrant from getting stepping in as a fundamental stakeholder rapid take-up of services and the density and investor. The city will invest in the of housing were a set of unique passive infrastructure for connectivity and circumstances in Italy that allowed can borrow more cheaply than the private e-Biscom to take off in a really impressive sector. The city can run the business case way. Italian cities are only just beginning and will be able to sustain its borrowing to look at the wider set of city-service from quite a small stream of returns by applications and aggregated demands giving access to the infrastructure. The city that they want to use this infrastructure knows that this passive infrastructure (and for. The Fastweb experience has not been I’m thinking here about fibre) has about driven by the desire to put e-learning into 15-20 years of life in terms of its usability, schools or do initial primary care health which takes it beyond the type of return consultations in people’s living rooms. on investment calculations that most The driver for growth in Milan has come shareholder-owned companies and from the video on demand and video organisations are able to contemplate. telephony and entertainment and private communication applications that So, the public sector steps in and funds people demanded. 5
  • 7. Preface That is one end of the spectrum and it has complex, and affected by the local political produced an interesting and successful environment as well as local legal and business. The next step will be for those economic factors. One model is like a city governments (increasingly not just utility, which is majority-owned by the city Milan but many other Italian cities as but has a lot of private-sector money and well) to look to the infrastructure investment. Wroclaw’s story as told by the to see how they can improve their own deputy mayor, Slawomir Najnigier, is a services as well as proving an attractive good example of that kind of approach, as investment environment for the growth they have actually used the heating utility of small businesses. (which has the holes in the ground) as a public/private vehicle to develop the Stokab is at the other end of the spectrum passive infrastructure. Hamburg too, as in that it is a pure public play. There was a shown by Senator Gunnar Uldall, offers a very clear vision in Stockholm that the mixed model, where the private sector building of a knowledge economy and the leads and the public sector encourages attraction of inward investment and the and invests. In Hamburg, the public sector provision of better public services would will intervene as and when necessary, and all be facilitated by a fibre-based will ensure that through the services communications infrastructure. When you provided Hamburg remains a growing and read the essay by key Stockholm decision- successful trading hub. makers (and visionaries) Anita Ferm, Per-Olof Gustafsson and Monica How significant is this trend? We are Bernestrom, you see that at the very heart aware of at least 40 European cities that of it is not only a business plan but a are currently either planning or building profound belief that this would be the real (Ethernet) broadband infrastructures. right way to go. They couldn’t calculate all The number increases weekly. It seems the benefits to Stockholm at the time that likely that something very significant is the investment was commenced, but they taking place here. can see the benefits now. For example, as people in Stockholm begin to In this very complex and confusing telecommute, strain on the transport environment, it may be useful to try to infrastructure is being reduced. This is a look at what is happening in more fascinating development and is more or conceptual terms. This may allow us to less at the forefront of what is happening develop a framework within which we can in the modern city. Stockholm already has see what is common to these success a different approach to work and the stories. The republic in political history was workplace emerging. Now they are an idea that broke with the concepts of looking at wireless and turning Stockholm monarchy, oligarchy and timocracy and into a wireless hotspot. The whole established the idea of rule by the ‘polis’. Stockholm model represents a very It was in the small trading-hub cities of Swedish belief in public provision of Greece in the 6th century BC that the fundamental infrastructure. democratic experiment truly began. Then we have a mixed model, often very The prospect of a ‘connected republic’ 6
  • 8. Preface now presents us with the opportunity to that the schools are not good enough, make the idea of rule by the people more healthcare is not good enough and the real than it has ever been, creating an police can’t protect them from danger on environment in which people reconnect the streets of the city. These are the big with each other politically and at the same city issues, and our politicians are caught time rediscover the connection they have in a situation where their people are lost with their rulers. And the natural disengaged and not willing to pay more geographical confines of the connected money but are demanding higher republic are, as in ancient Greece, those of levels of service. the city-state rather than the nation-states which dominated the past century. At the same time, technology has created the possibility of more responsive services Every city is an autonomous competitor in that are more flexible to the signals that a globalising economy. It is not enough consumers send. The new connectivity has that a national government is doing the made the private sector much more right things to attract investment. The responsive to consumer demand, and that individual city needs to attract investors. has made consumers much more The people in that city need to be demanding, which has in turn made them attractive to employers. Workers in a more disconnected from their successful city have to deliver value in an unresponsive governments. That is not environment where what you knew ten because the public service is stupid and years ago is irrelevant to what companies the private sector is clever. The reason that now need from their employees. As a the private sector grabbed hold of change successful city, once you start to is that for a private sector company, understand modern educational needs you change is a life or death issue. For start to get this sense of lifelong example, when British Airways has education actually built into the heart of competition from easyJet and Ryanair it the economic strategy of city, the survival either responds or it goes out of business strategy of the city. in the face of competitors with lower back-office costs, simplified fare structures Meanwhile it is widely accepted that there and incredibly low transaction costs is an emerging crisis in democracy because based on new forms of technology- people do not feel engaged with their enabled connectivity. political decision-makers. They don’t understand them, they don’t know what For government, with its quasi-monopoly, motivates them and decisions appear to it has been harder to respond to this new come from on high. There is a kind of trend, although governments are disengagement. This is a disaster for beginning to see that they face an politicians as it takes away their legitimacy emerging crisis of legitimacy and service. just as it begins to undercut their ability to City governments have responsibility for raise revenues. Unwillingness to pay tax looking after the poor and vulnerable and, leads directly to restrictions on their ability because they are using public money, they to provide services. This feeds back into must take fewer risks. So they find their unpopularity with people, who feel themselves unable to move as quickly as 7
  • 9. Preface the private sector, and up until now have been 25 or so different departments they could not subject social services or dealing with everything – if you want your healthcare provision or the criminal justice garbage picked up it is this department, system to the risks associated with and if you want your water turned off it is innovation and new technology. another one, and if the people next door are noisy it is another. But as the New York That may now be changing. Even if the essay makes clear, you shouldn’t need city governments are boxed in, they are someone with a doctorate in municipal responsive political animals; they want to politics standing next to you as you try to deliver good things to their communities. sort your way out of a problem. Now, the They need to find a solution. These essays city’s networked information system document the emergence of that solution allows New Yorkers to pick up a phone, in the development of what we call the dial 311 and be put through to the right connected republic. Ideas that have been person to solve their problem. It is the applied to business over the past ten years city which thus has to rearrange itself are being applied to the different public- around the needs of its citizens, and not sector environment in ways that overcome vice-versa. the obstacles which are holding this process back. (I’m indebted to my Several years ago, Barcelona rearranged its colleagues, Martin Stewart-Weeks and network around a portal that reflected the Mark Badger for much of this analysis – way people live their lives and the see their forthcoming book on the problems they have. This sounds very Connected Republic.) obvious, but it is very difficult for public servants to make that fundamental shift Despite their differences, all cities have from ‘this is the way we are arranged’ to some fundamental things in common. ‘this is how your needs as a citizen are arranged’. Clearly public servants are not First of all, they must grapple with the going to reorganise their departments issue of how to re-engage with people around citizens’ needs every week. who are becoming disengaged. People’s needs are different: they are Governments have to become transparent: constantly changing; they overlap and citizens must be able to see what contradict each other. However, once government is doing. Communications citizen and official are networked, they technologies unlock the possibility of can collaborate. The official finds himself reorganising and presenting information or herself working in a great virtual in a way that is appealing to citizens. contact centre where inquiries can be routed to the appropriate destination. It’s what the Government of Canada called Mayor Bloomberg’s New York essay ‘No Wrong Door’. And once information is describes what appears to be a small, but networked, citizens see it is transparent is in fact a crucial step forward. The and become ready to engage with principle behind the 311 service is that authority, which they now see as offering citizens shouldn’t have to work out for them a service. Indeed, it becomes more themselves how the city is organised. likely that citizens will use the opportunity Cities have been opaque because there to influence, shape and guide authority. 8
  • 10. Preface A key element of any strategy for the It’s that kind of emerging role as connected city is customer-centricity, or orchestrator that you see in the essay from citizen-centricity. Hillingdon is a borough David Carter, Director of Manchester’s of London and it discovered that the Digital Development Agency. Connectivity investment required for customer- in Manchester is not just about big centricity would repay itself in an business and knowledge workers. It is also incredibly short amount of time. So one of about excluded communities becoming the fundamental drivers for Hillingdon’s connected through the city as it connectivity was to reorganise its services orchestrates local community groups. around what citizens actually wanted and These local voluntary groups and public- to be more responsive to requests coming sector groups are trying to meet the needs in. It has discovered a double win. Firstly, of local communities, whether by giving citizens feel better served, and re- them access to training, or giving them engaged; secondly, it becomes cheaper for information about where they can get the city to do its work. It is a similar story childcare so they can get back to work, or in Barcelona, where the CAT 365 project by helping them connect with other has set up a clearing house for citizen people in similar situations so that they information. CAT 365 involves the private can feel more part of a community and sector as well – a public/private develop common, mutually supportive partnership runs the clearing-house, which strategies. Manchester is an example of also offers services out to banks, and real people using connectivity so they can utilities and other private-sector players start to take control of their own which need private sector information. development and their own fate. The city What will perhaps emerge is a new depends on its infrastructure to become funding model, as these people pay for an orchestrator – and in the Manchester the ability to become more responsive to case, wireless has played in increasing part citizens. If the government is effectively of that infrastructure, even in the poorer subsidising the service, so much the better. eastern district of the city. Citizen-centricity can help make it possible Mancunians are typically innovative, for organisations to become orchestrators creative and entrepreneurial people. The rather than doing everything themselves. city is trying to serve all of them and at They reach out to the place where the the same time include that group of thing is best done. The city is no longer people who were left behind when the the great monolithic provider of services last industrial revolution left Manchester. to all people and disappointer of people at So there is a very rich emerging portfolio all times. In contrast, the city is the of what the city can orchestrate. Dubai facilitator for a set of groups, some of the has also developed an orchestrator independent, some of them semi- function, but one much more focused on independent, who are able when the resources of its people and their networked together to provide a much ingenuity. Through the internet, it is more responsive service. orchestrating local talent, regional players and the private sector. Large companies are being attracted to Dubai to provide a 9
  • 11. Preface set of services for the region so the city real value in services that citizens require. can re-invent itself as a knowledge hub for So successful has Hamburg become that the region – and Dubai has a typically the countryside around it has towns radical conception of what its region is. coming to the city and asking them to act as a bureau for them as well. It is the None of this is easy. The industry is awash same in Hillingdon, which has started to with the dynamic of early hopes and work with larger groupings of local expectations that shoot up too high and authorities in London. lead to disappointment when they are not fulfilled. Yet these essays engender the The Hillingdon in-depth case study offers a feeling that people have recently been too road-map for the early part of the journey. glum; new connectivity is actually Resources are limited, however strong the happening. It turns out that it is harder to case is, and the options for what you do than some people thought. It is not might do are many. Any city manager will just a matter of whacking up a website be standing with a small pot of money and saying, ‘come and visit our city’. Nor and a huge number of claims on it – and is it just a matter of putting a bunch of the question is, ‘What do I do next week? networks out to the classrooms and How do I get started on this journey and hoping that classrooms will be what should I do first?’ The reason the transformed by mere access to technology. case study shows step-by-step It actually requires changes in processes prioritisation and budget allocation is that and fundamental changes in the way even in a tough investment environment it people work. You can see in the Hillingdon will allow a city to make changes that will case study how people had to stop doing not only pay back and allow it to expand certain jobs because functions ambitions, but will change the way that disappeared. Hamburg too offers a great people work. example of quite ruthless standardisation, driven by a finance department in Hillingdon takes quite small processes and Hamburg which would not give access to changes people’s relationship to their IT budgets to anybody who failed to work and the way they collaborate. With adhere to the standards it had established. all the money and political will in the This is pretty dry stuff, but it is actually world you are not going to get anywhere critical because it turns out that this is unless the actual city workers buy into where money has been wasted, as collaboration, start to behave differently everybody re-invents the wheel in the and become more responsive. housing department, the refuse collection department, the benefits department The development of a business case to and so on. support the modernisation of Hillingdon council’s housing service is a tangible Addressing that back-office process, re- outcome. Although not completely engineering, standardisation, the creation unexpected, the scale of the potential for of shared service bureaux, will be the task deploying new working methods – of the next wave. The city can increase the affecting nearly 70% of the workforce – productivity of its workforce, unlocking and the consequential impact on office 10
  • 12. Preface accommodation – almost a 50% reduction based services, they can redefine what – was more significant than anticipated. they offer around the actual needs of The relevance and impact of these initial their citizens. findings were enhanced by the subsequent quantitative ROI analysis. This work They are driven by democratic demands established a financial cost and saving of for re-engagement and for better and fully deploying modernised working in more responsive and accessible city housing services. More people can work services. They are also driven by from home and stripping out 35% of competitive forces. office costs on a recurring basis from year four onwards means local councillors have As it looks outside its nation-state choices to make regarding reallocating boundaries to define what it is going to resources that were previously locked up be in the future and how it is going to be in relatively fixed assets. successful in this environment, the successful city learns not just how to work The Hillingdon business case generated, or differently within its departments and rather confirmed, a piece of learning that agencies but how to collaborate with its has been stated before but is worth own citizens on the project and make reiterating. The modernisation business them part of the success of their own city case is not ‘about’ putting forms on the – thus giving the city back to them. web, implementing CRM or having colleagues work from home. What the modernisation business case is “about” is achieving profound business transformation through carefully managed organisational change. There is nothing particularly radical in this statement other than that the words are now grounded on a detailed business case whose scope and scale constitute a complete transformation for Hillingdon’s housing service. What is more, the business case process is now a useful diagnostic tool. What we see in these essays is perhaps the emergence of a political and economic phenomenon – the city as the new connected republic of the 21st century. Standing on the bedrock of real broadband as a new social infrastructure, these innovators and visionaries are redefining their role in the globalising information economy. As orchestrators of networked information and information- 11
  • 13. Dubai Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority D ubai has an economic blueprint Why did we start with technology? for the future, first conceived in 1998 by the Crown Prince with History – and there was no more pressing the simple objective of historical example at the time than increasing per capita GDP. Unlike some of Netscape: a small company that IPOd at our neighbours, we have little in the way about $18 dollars and closed on the same of naturally occurring mineral resources, day at $75. Examples like this were still so we needed a service- or technology- very much in everyone’s mind in 1999, based approach. when His Highness launched Dubai Internet City (DIC). The strategy we adopted was based on the model usually referred to as ‘cluster We soon realised that technology alone development’1 and is designed to create was not enough. We also needed content, specific engines to drive economic growth. convergence and – of course – talent. So, The objective was the creation of a after the launch of DIC, Dubai Media City ‘technology cluster’. (DMC) arrived in 2001. In late 2003 we moved ahead with Dubai Knowledge Six years later, Dubai has become the hub Village, an enclave within DIC designed to of – and therefore the gateway to – an provide a broad range of education and untapped market that spans the Middle training faculties. East, North and South Africa, the Indian subcontinent and the CIS. This market We had to learn tough lessons throughout consists of 31 countries, 53 languages, this process, and especially when we 1.8 billion people and a collective GDP developed our second and third clusters, of $1.1 trillion. for the financial and health sectors respectively. Each time, we had to go back Our vision is now increasingly focused on to the drawing board. Every project went one aim: to make Dubai a global hub of through major revisions with regard to the the world knowledge economy by 2010. parties involved and the relationships, as well as the basic model. 1 Professor Porter of the Harvard Business School’s Institute for Strategy and Competitiveness launched the Cluster Mapping Project to define clusters statistically and create objective, detailed profiles of regional economies. Cluster mapping involves the analysis – at several geographic/economic/demographic levels – of regional economic units. This data is used to identify those areas that, by virtue of their performance, location and interdependencies between different industries, can be termed ‘clusters’. Clusters can be evaluated in terms of their contribution to employment and earnings, 12 economic growth, generation of new businesses, and development of IP.
  • 14. Dubai at the centre Change of plans Since Media City the model has changed, Firstly, it’s forced us to focus on sound and with Dubai Health Care City (DHCC – business planning, working through see panel), we raised finance exclusively everything from (in the case of Dubai from the regional private sector. This came Media City) how technology and media about from a change in our appreciation companies can work together, to of our position geographically and how real-estate management can increase economically – we had to revise what we return on investment. thought of as being our 'region'. This planning process goes through several Investment in any given region flows to stages. First, the business opportunity the ‘hub’: for example, the USA has New analysis, from conception through idea York, Europe has London, Asia has Hong mapping, process specification and so on. Kong and Singapore. But if you look at the We bring in experts to look at each sector, wider geographical context of Dubai, you weighing up the value propositions. soon see that we’re in a ‘region’ that used not to have a hub at all – even, and Once we’ve mapped the sector within the perhaps especially, taking Africa into industry and within the cluster, we choose account, although it has a vast economy. specific business opportunities and create a top-level business plan for each one. We It was this realisation that transformed our run due diligence on the plan, then profile ambitions. We stepped in to fill the gap. the top 150 or so key investors in the We have since been very successful in region. We establish relationships with positioning ourselves as the hub of the them, so that we understand their extended region outlined above. With a investment profiles and can match our collective GDP of $1.1 trillion, it’s no offerings to their portfolios. surprise that we can rely increasingly on ‘regional’ financing! This is hard, carefully targeted work. For example, when we launched Health Care This shift has changed the way we work City, we knew exactly who to go to for and especially the way we plan, legislate, investment in our teaching hospital, our foster talent and create communications diabetes research centre (diabetes is the infrastructures. number-one killer in this region), the medical centre and so on. 13
  • 15. Dubai The rule of law subsidiary has its own president and operates as a separate business unit. So Secondly, it’s forced us to introduce new just as GE, for example, has its statutory frameworks – especially where engine’s division, its plastics and finance and health are concerned. There chemicals, so Dubai has its Media City, are numerous issues that can be Financial City and so on. overlooked – the role of intellectual property law in healthcare, for example, But you also need to be aware of the where companies are investing heavily in human element at the bottom of the pile. IP research and development. Where is the skills pool that is driving the machine? Personally, this is something I The lessons we’ve learned here are think about every day: from where are we principally that you can’t do it all at once. going to get the talent? Right now, if you You have to focus on one sector and map sat down and worked it out, we’d have it out carefully. Every new regulation you about six projects for every individual! introduce is going to impact on the People are the issue, which is why we country and the region as a whole. When spend a lot of time in finding, grooming, you’re operating subsidies at the level mentoring and then pushing new required for these sorts of projects, young nationals. statutory influence is mandatory to avoid destabilising niche economic sectors: Our educational strategy is an identical you’re not simply managing projects at proposition to Boston. It is not cluster- this scale; you’re also macro-managing the driven – any cluster structure emerges economy as a whole. The critical success organically from seed projects. Boston has factor here is leadership – you have to stay Harvard; it also has MIT, and that’s what on top of everything – and you need to be we’re aiming for here. We’re expanding able to win vital support and commitment our facilities for those entering high to keep going. school and, at the other end of the scale, for postgraduates. We’re not dealing with The human factor the 18-year-old age range, where there are very significant costs involved. We want to Next, we’ve had to deal with human lay the foundations with a good general factors, such as how the people at the top education, and then we’ll provide the should be incentivised to boost specialist finishing courses to take people performance. This is an important into work. example, because each cluster is totally independent, responsible for its own Making connections success and managed, in effect, like a company. Today, each city independently determines its technology and connectivity At a higher level, there’s a council of requirements but, going forward, we ministers or executive council, which is envisage that all of these cities will effectively the corporate holding company be connected. with all the cities as subsidiaries. Each 14
  • 16. Dubai Their needs will be different, of course. Oracle, IBM, Cisco, Compaq and Ariba. You only have to think of something like We allow 100% foreign ownership and telemedicine to realise that the Health sales. Furthermore, company earnings and City, for example, will require higher private income are exempt from any form communications specifications than other of taxation. DIC is already cash-positive, sectors. It’s not just infrastructure either: although not profitable yet, but this is applications and protocols are needed to largely an issue of how we treat create a comprehensive healthcare system depreciation – there are obviously vast in Dubai, answering the requirements of infrastructure costs. the teaching hospital and ultimately enabling the linking of all healthcare Dubai Media City is already home to over information systems – clinics, hospitals, 550 media companies including key pharmacies etc – to the central Health players such as CNN, Reuters, Sony City ‘hub’. Broadcast & Professional, McGraw Hill Publishing, Bertelsmann and MBC. Then there are the cultural challenges Regional companies and new start-ups implicit in extending communications supplement the mix and there’s a growing links. Schools don’t want to lose control talent pool offering creative skills and over communication between students of services to the larger companies. Media different gender, for example. In all these City is cash-positive and already looking at cases, the first step is to research and launching a second project: Film City – a identify what the customers want and Hollywood of our own. need. Broadband may be driving infrastructure development in many Dubai Knowledge Village launched in the modern cities, but that doesn’t mean fourth quarter of 2003. It's become home you can take your eye off the basic to a broad range of education and question: what do people actually want training operations, ranging from major to use it for? international universities, such as the US Purdue University with large, on-campus It’s also important to define your own role facilities, to independent, freelance in this process. Our approach is to get the trainers operating out of fully serviced experts to define the needs and the business centres. specifications and to carry out the work; we’re only the project managers. After all, Dubai Health Care City will take longer to we’re not doctors (for example) and reach profit. This is because the health shouldn’t pretend that we are. sector has demanded a different approach. DHCC operates in both the From vision to reality academic research and healthcare service arenas. We feel that we have to subsidise These strategies have borne fruit: our the former while allowing the private projects have been extremely successful. sector to develop the latter – and therefore to take the profit. This isn’t a Today, DIC is home to over 500 companies problem for us: any economy that aspires including Microsoft, Hewlett Packard, to global status needs to invest a 15
  • 17. Dubai percentage of GDP in research. in the first phase to develop the project's infrastructure. The sky’s the limit. The business model for Dubai International Financial City works Killer instincts predominately through real estate. We also offer access to regional markets – What have I learned during this period of Saudi, Bahrain, Kuwait etc. One of our enormous growth and tremendously hard value propositions is our time zone. work? The most important lesson, I think, We have a six-and-a-half-hour slot has been to trust your instinct. between close of business in New York and the start of trading in Asia – a Articulate the vision, address the very attractive proposition for finance economies of scale, clusters, houses and especially those involved in competitiveness of the region – then go foreign exchange. with what you know. Don’t keep asking consultants: go for entrepreneurs, for In the past, the main focus in the real people who get the things done. Plan, estate market has been on taking profit. cost, manage – and then don’t let But there’s increasing focus on taking anything get in the way of executing the longterm revenue from real estate, via plan – ruthlessly. You want to think like a tourism, financial services, manufacturing team of mercenaries: go in, assassinate, and so on. If you look at a ten-year and get out! business plan for any of these cities, the first four are going to be focused on real estate revenue streams, but strategic revenue streams kick in during the second half. Revenues generated by a city from its real estate will not go to government: they help to pay back the banks and boost investment in the value-added industries that the city needs to take it to the next level. Dubai Internet City, for example, can pay back the bank and put money into research in technology and telecoms, redefining itself as an alternative service provider. Meanwhile, it’s onwards and upwards. In October 2003, Dubai announced the region’s biggest tourism project yet – Dubailand – with an estimated investment of more than Dh18 billion. The government intends to spend Dh2.6 billion 16
  • 18. Dubai Dubai Internet City Broadcast & Professional, McGraw Hill Publishing, Bertelsmann, and MBC, A strategic base for companies along with regional companies and targeting emerging markets in a vast new start-ups. The interdependent region extending from the Middle East media community also boasts a to the Indian subcontinent, and Africa growing talent pool that offers a range to the CIS countries, covering of creative skills. Currently, over 250 1.8 billion people with GDP $1.1 trillion. freelance media professionals are based in the City. As a free-zone entity, Within a short span of time, a dynamic Dubai Media City allows companies international community of ICT 100% company ownership along with companies has established itself in commercial benefits that include a 50- Dubai Internet City. These companies year tax exemption from personal, represent a community of over 10,000 income and corporate taxes. knowledge workers. The cluster of ICT companies in Dubai Internet City Dubai Knowledge Village comprise software development, business services, web based and Knowledge Village aims to create a rich e-commerce, consultancy, education ecosystem for a variety of and training, sales and marketing, and organisations and individuals to create back-office operations. DIC provides a and disseminate knowledge. scalable state-of-the-art technology Knowledge Village provides a world- platform that allows companies class learning infrastructure and looking to provide cost-effective environment for the development of Business Process Outsourcing (BPO) scholarship, education, training, ideas, services, such as call centre operations, creativity, innovation and and easy access to these services. entrepreneurial expertise. Dubai Media City Knowledge Village will be a catalyst for the development of a strong and The Media City provides an advanced sustainable future, based on a wealth infrastructure and supportive of knowledge – human resources environment for media-related rather than natural resources. businesses to operate globally out of Knowledge Village creates access to Dubai. The Media City brings to the this new culture of learning in three media community an advanced distinct ways: firstly, by facilitating infrastructure based upon a global access to high-quality learning interconnected network, linked by opportunities – for all ages, career satellites, computers, the internet, stages and levels; secondly, through television, radio, journalism, cinema the wide diversity of areas of studies and film production. available; thirdly, through the strong, close and diverse background and The Media City is already home to over interaction of learners at Knowledge 600 media companies, including global Village – a global learning habitat giants such as CNN, Reuters, Sony where individual contact and 17
  • 19. Dubai connectivity into global networks via cluster economy is a university medical technology are richly combined into a complex; consisting of a university unique experience. specialty hospital, a post-graduate medical school and nursing school, Dubailand and a life science research centre. The combination of these three The government intends to spend components will enable Dubai to Dh2.6 billion in the first phase to leapfrog to the forefront of regional develop the project’s infrastructure, medical practices, establishing a and with an estimated investment of position of regional leadership through more than Dh18 billion. leading edge education and research, and thereby becoming a centre of Dubai’s strategic plan is to add more excellence in global healthcare. depth to the tourism sector and contribute towards transforming the Dubai International Finance city into one of the top tourist Centre destinations internationally. The project will be built along Emirates Situated as a bridge between the Road, next to Nad Al Sheba, Al Qouz financial centres of Europe and Asia, and Al Barsha, which will give it the Dubai International Finance Centre advantage of easy access from Abu (DIFC) is a platform for accessing the Dhabi, Dubai, Sharjah and the trillion-dollar regional market. Dubai is Northern Emirates. building its international financial centre on four foundations: Dubailand will be completed by late 2006 and expects to attract 15 million The first is regulation and transparency, tourists to Dubai by 2010. because a global finance centre of the 21st century has to be Dubai Health Care City open and well regulated so that it is trusted by other jurisdictions and The Dubai Health Care City (DHCC) companies who locate within it, initiative is to provide the highest knowing their reputation is safe. quality of healthcare services to Second is the creation of new medical care and wellness seekers from financial capital markets, which will the region (comprised of the GCC, help bring prosperity to the entire Indian Subcontinent, Northern Gulf, region. Financial capital moves to Central Asia, the Levant, North and where it is safest and best rewarded, East Africa), by creating a world-class so DIFC’s combination of total cluster of healthcare professionals and transparency and zero tax enable service providers at the heart of Dubai. Dubai to benefit from the global flight to quality. Third is, it’s a great DHCC aspires to provide state-of-the- environment for people, and fourth is art medical care services in selected its stable political environment. disciplines that are relevant to the health problems facing the patients in the region. The ‘core’ of the healthcare 18
  • 20. 19
  • 21. Barcelona Joan Clos, Mayor of Barcelona B arcelona, one of Europe’s major neighbourhood portals have created cities, is the economic, cultural debate, because they are not only news and administrative capital of portals but also interchange platforms Catalonia, an autonomous region within the community. For example, when in the northeast of Spain on the an urban city planning reform is launched, Mediterranean coast. It is sixth in Europe the community can air their views – the in population density and fifth in industrial dialogue itself is a tool for the planners in concentration. The metropolitan area of the decision-making process. These Barcelona traditionally had a high websites work in the majority of the proportion of industrial activity as part of Barcelona districts and have increasing its total economic activity. Today, the city citizen participation. and its surrounding area are a significant economic centre in terms of new Barcelona City Council is moving towards technologies and advanced services within e-government, using the internet as a tool the framework of the information society. to achieve the following key strategic objectives: Our aim is to transform Barcelona into a great city, where the knowledge economy • Rethinking and improving internal can develop out of the dense urban management nucleus that is our city. The new EU • Enhancing and deepening policies that will increase the funds commitments to citizens available for research and knowledge offer • Developing a participatory strategy for us a great opportunity to move forward. the city We are known as a city that produces and At present, the data network of Barcelona exports medium-high-tech goods. ICT City Council is made up of four clearly manufacturers have increased exports distinct areas: almost fourfold since 1993 and Barcelona has become the principal export • Corporate network base in Spain. • Access network • Extranet More important is the capacity of the • Internet ‘New Technologies’ to bring government closer to our citizens and to create The official website of Barcelona City transparency in the city management. We Council provides access to a broad range have experience in citizen networks. The 20
  • 22. ‘ of information and services. Barcelona is a by Barcelona City Council (Ómnibus, June European city with a high number of 2003), 46.5 per cent of the city’s homes transactional services. The site displays its are connected to the internet. That means contents in three languages – Catalan, that nearly one in every two Barcelona Spanish and English – and provides homes is connected to the net. Of this information for residents, companies and group, 37.8 per cent has a broadband tourists. The site and its services have won connection at home, and the last quarter several awards: third prize in Design in the has seen swift growth in DSL connections, European E-City Awards (2002), first prize a technology that is replacing the of the Auna Foundation (2002), the traditional telephone line, along with slow Stockholm Challenge Award (2002), and it but steady growth in connections was also a finalist in the World Technology by cable. Awards (2002). Compared to the Scandinavian countries Barcelona City Council has broad or Southeast Asia, these figures are low, experience participating in European but one must bear in mind our projects: Dalí, Gala, Exe, NetForNets, demographic context. Permis, Gaudi, Eurociti, Elda and others. It also belongs to large networks of cities In Spain as a whole, 27.4% of the such as TeleCities, and belongs to big city population is connected to the internet, networks (currently holding the while the figure is 32% in Catalonia, presidency), including EuroCities, according to the latest EGM survey Metropolis, Major Cities of Europe performed by AIMC. However, it must be and ELANET. remembered that this survey includes all internet users, not only those with home The broadband city connections. That is, there is a differential of at least 20 points between Barcelona’s In order to explain the development of geographic surroundings and Barcelona broadband in Barcelona, you need to itself. The same trends can be seen in understand the setting in which it has broadband connections. taken shape. This essay first describes the demographic context, and then the Furthermore, certain socio-economic socio-economic context. factors have hindered the growth of broadband in the city. Elsewhere in the According to the latest data from studies world, broadband developed in the 21
  • 23. Barcelona framework of a pre-existing cable Channel Integrated Service network, which had been created, System (MISS). extended, operated and made profitable in the 80s and 90s for television. The system, which serves more than However, in Spain, digital television 18 million requests a year, centrally entered people’s homes by satellite manages most of the information and rather than by cable, and satellite services going both from the City Council technology has not yet made an to citizens and from citizens to the effective leap to bi-directional data City Council. transmission – a necessary condition for broadband internet. MISS is based on internet technology, and it allows for sharing the same information Barcelona City Council has faced up through three channels: the website to these challenges with the longterm, the telephone information vision of providing better services to service and the public information offices. citizens, as broadband is not an end in itself but rather a tool for improving the In order to develop the MISS, intranet and productivity, and therefore the integrated internal services, we have had competitiveness, of the city. And most to create a powerful internal broadband of all for achieving internal changes in network to support the information flows the council itself. As we have said, the required in an information architecture of aim is always to provide citizens with this type. better services. Data network For instance, for some time now the City Council has been broadcasting live online, • Corporate network via streaming video, all municipal plenary • Access network sessions. Users can also see all past • Extranet plenary sessions on demand through an • Internet index of plenums by subject. Here, the limited spread of broadband in the city The Corporate network is a private has prevented provision of more advanced network that links together the 123 services to citizens. centres of the City Council. • The Broad Services City: the challenge The Access network ensures the of transforming administration through connectivity of centres with lower broadband • Multi-Channel Integrated Service broadband requirements to City Council System (MISS): e-government beyond applications by means of a channel an Internet portal between the centre and the CPD/IMI. It is • The creation of a 155 Mbit/s high- defined on the basis of public networks speed internal network for the City and configured like a VPN. There are four Council has enabled the development main access technologies: frame-relay, and implementation of the Multi- ADSL, XDSI-XTC and GPRS. 22
  • 24. Barcelona more complex, thereby being capable of Public administrations must take including citizens, other public institutions, advantage of the development of private companies and other actors wireless technologies to involve in the city. citizens by giving them a greater role in management processes Towards the universal availability of public services and information Most of the equipment supporting the Public administrations must take network is Cisco. All the networks use a advantage of the development of wireless combination of Radius-LDAP as the technologies to involve citizens by giving authentication system of entering users. them a greater role in management processes, while reducing costs in service management. Above all, the most For its part, the Extranet provides a link important goal is to improve both between external companies and the City provision of services to the public and Council. It is based on point-to-point links citizens’ quality of life. that originate in the City Council and have an endpoint in each of the companies involved. The technology of the Extranet is One of the most important challenges of Gigabit Ethernet and is supported by m-government in meeting this aim is to operator links. The system operates with effectively combine secure methods of CISCO 2948 and 3512 units. identification and easy-to-use applications so as to ensure citizen-accessibility. The corporate Internet provides an internet connection to the internal The following are some good examples of network as well as to the public internet the possibilities of m-government: services available. automatic question-and-answer services (the voice portal, currently under development in Barcelona, based on voice- The City Council has its own public IP recognition and web-semantic address, as it is constituted as an LIR. technologies); reminders of appointments with the administration; sending of public The Multi-Channel Integrated Service transport timetables depending on System helps improve people’s quality of location; use of multimedia messages life by offering those without internet (MMS) as instruments of public access the chance to benefit from the participation; payment of public parking same information and the same services tolls; tickets for public transport; provided by the City Council on the information about public employment internet. vacancies; services in museums and other tourist attractions; and an endless list Moreover, the MISS structure is the limited only by our imagination. technological framework that allows us to enlarge our internal network and make it 23
  • 25. Barcelona Barcelona is already seeking to design an of life. effective model of global m-government that would meet all these challenges and In short, e-governance helps citizens take place all these actors at the service of a more proactive role in deciding what the city. kind of services they want and through what type of structure they wish to This is because m-government is not only receive them. a phase of e-government, but a reinvention of public services from the Two emblematic projects standpoint, more than ever, of the citizen. • 22@ Bcn The broadminded city: towards • The Universal Forum of Cultures 2004 e-governance Currently, two projects are running in According to the United Nations, the Barcelona that are examples of the concept of governance must be commitment of the city to the socio- understood as a process. In this process, economic, urban and international institutions, organisations and citizens position of the city in the future. At organise to make decisions through the same time, these two projects effective mechanisms of transparency. show our belief in technology as an indispensable element of building a just Thus, and continuing with the definition and equal society. of the United Nations, e-governance is the use by the public sector of the most 22@ Bcn innovative information and communication technologies, such as Barcelona has set itself a new goal: to fully internet, to provide citizens with better integrate itself into the new technological services, more reliable information and revolution and face the challenge of the more knowledge in order to facilitate information economy. The Poblenou, the access to governing processes and leading nucleus of industrialisation in promote citizen participation.’ It is, Spain in the 19th century, is striving to be indeed, an unequivocal commitment by the main technological platform for decision-makers to strengthen the Barcelona and Catalonia. collaboration between private citizens and the public sector. Real, living Barcelona, as a labour market that includes nearly two million jobs The introduction and acceptance of and a population of 4.3 million, is the e-governance is the path towards ensuring sixth leading metropolitan region that each citizen has the same right to be of the EU demographically, exporting a part of decision-making processes that 22.5% of Spain’s industrial and affect them directly or indirectly, and to non-industrial goods. influence the process so that it can improve his or her conditions and quality 24
  • 26. Barcelona The updating of the regulatory framework In short, e-governance helps has taken the form of the Modification of citizens take a more proactive the General Metropolitan Plan for the role in deciding what kind of renewal of the industrial areas of services they want and through Poblenou (MPGM), approved 27 July 2000, what kind of structure they wish which has generated conditions to receive them. favourable to stimulating and attracting advanced economic activities. These activities demand a central location, good infrastructures and a quality urban The network of metropolitan cities, with environment. Barcelona in the lead, is quickly shifting its productive specialisation: nearly two-thirds The Modification of the PGM changes the of its exports today are goods with high or characteristics of the urban planning middle-high technological intensity. Its regulations of the industrial area, future competitiveness critically depends replacing the old urban zoning on its capacity to integrate new qualification 22a with the modern 22@: information and communication technologies and to strengthen • It regulates the uses and density of knowledge-dense tertiary or industrial construction activities. The city of Barcelona acts as • It provides incentives for conversion to both the main centre of services to a attract knowledge-dense activities multi-nucleus metropolitan area and as • It creates a new equipment capital of Catalonia. To preserve its leading qualification called 7@, which role economically and professionally, it will clear the way for building must deepen its specialisation in information infrastructures knowledge-dense activities, as these are • It defines new standards of urban also employment-dense activities. development and – in the Special Plan for Infrastructures – provides for Barcelona’s traditional economic and the complete urban development of urban planning strategies were based on the area manufacturing as the dominant economic • It defines the obligations of activity, and on the premise that zoning in landowners and determines the the central municipality of the metropolis forms and mechanisms for derivative was needed to preserve manufacturing. planning – Special Plans – in order to The transition from an industrial enable conversion manufacturing model to one based on the information society has entailed in-depth Throughout its execution over 15 to 20 revisions of urban regulations of the old years, the project will allow for the industrial areas of the Poblenou district building of 3,200,000 m2 of new and (zone 22a of the General Metropolitan used buildings for productive uses, Plan of 1976). between 3,500 and 4,000 new housing units under a regime of official 25
  • 27. Barcelona subsidisation, the freeing of some safeguarding of human rights and forms 220,000 m2 of land for new facilities of living in harmony with the and garden areas, and for an increase environment. These elements, among of 100,000 to 130,000 jobs in the area. others, are crucial for forging conditions that are more favourable to progress and Forum 2004 human development. Barcelona is committed to a future where a stable Barcelona is starting the innovative peace means much more than absence Universal Forum of Cultures in 2004. This of conflict. is a new type of event with an international dimension, where the city aims to provide a space in which to reflect upon and experiment with the most important cultural and social conflicts faced by the world in the 21st century. It will be held from 9 May to 26 September, and will be structured around three themes: cultural diversity, sustainable development and the conditions of peace. Knowledge of other cultures is essential to engaging in constructive dialogue between peoples. Such knowledge entails reflection upon the commonalities of all human beings as well as their differences. To the extent that we are able to conceive difference as enrichment and a common heritage, not an obstacle, we will be able to reduce tensions and turn them into a positive force. Today, it is more urgent than ever to find forms of growth that respect natural resources and conserve them for the good of all, particularly for future generations. It is important to understand sustainability as a concept that goes beyond ecology, and also as a factor that enables creating conditions for coexistence, dialogue between peoples and peace. The creation of a culture of peace must be based, most of all, on respect for other cultures, social and political justice, 26
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  • 29. New York By Michael R Bloomberg, Mayor of the City of New York C itizen Service – the concept of we are streamlining government and government agencies providing doing better with less. world-class service to its citizens – is a major goal for my New York City is at the forefront of administration. Over the past 20 months, technological innovation in municipal we have focused our attention not only on government. From our 311 Citizen Service balancing the budget, improving our Hotline, to digitising 911 emergency schools and keeping crime down, but also response calls, New York City continues to on improving service delivery wherever deploy technology to every agency to help possible. Technology is a driving force in them fulfil their goals. providing better Citizen Service to all New Yorkers. Instead of paper-based systems Below is a sampling of the different that inherently make it difficult, costly and programmes New York City has underway time-consuming to share information, we and how we are using them. have made an aggressive push to drive more applications and functions to the 311 Citizen Service Hotline internet (or other digital mediums) where the information can be quickly shared and On March 9 2003, the 311 Citizen Service distributed to the parties that need it. Hotline went online. Before 311, every Over this period, there is no question that time the city announced a new New York City has become more efficient, programme or service, there was always a innovative, technologically adept, and new number attached to that programme citizen service-friendly. or service. By the time I took office, there were 11 pages of telephone numbers in During the current fiscal crisis, we cannot the phone book listing different ways New afford to operate at anything less than full Yorkers could contact their government. efficiency. In business, we are judged by Whenever New Yorkers had to contact performance, not by how much we spend. their government, they had to be a Government should also be judged by the near-expert in municipal government to same standard. Cutting $2.3 billion from find the right office (for instance, the Fire the budget does not mean we cannot Department doesn’t repair broken fire provide good or improved services to the hydrants, the Department of public, and that is exactly what we have Environmental Protection does). 311 done this year. From using technology to changes all of that. Now New Yorkers only improving citizen service, to cutting into need to remember two numbers when the city bureaucracy of cars and permits, contacting their city government – 911 for 28
  • 30. emergencies and 311 for everything else. of them conduct their business more If you want to report a broken streetlight, efficiently and with better citizen service. find out if you qualify for food stamps, or even report graffiti, all you need to do is Digitising x-rays dial 311 (or 212-NEW YORK if you are outside New York). In November 2002, the Health Hospitals Corporation (HHC) completed the In five months we have already received installation of Picture Archiving two million calls, and call volume is Communications Systems (PACS) at all picking up every day (nearly 20,000 calls HHC facilities. Each year, PACS come into 311 each day). Clearly, electronically stores digital x-ray images providing easy access to city services is a for one million radiology cases, replacing big hit with New Yorkers. the use of outmoded and cumbersome x-ray film. Prior to the system-wide Using 311 technology, for the first time installation of PACS, it took 24 to 48 hours the cty can prevent problems before they to access almost every radiology image. arise. How can we do this? For instance, With PACS, every image is available within we can map all double-parked car four minutes. Using PACS, a patient’s complaints, noise complaints, and all medical team can review the digital x-rays establishments with liquor licences from from virtually any location over secure the State of New York. We can use this internet gateways 24 hours a day, seven data to ascertain if some of these double- days a week, consult on treatment options parked car complaints and noise faster and more efficiently, and maximise complaints are coming from a club or bar, the productivity of scarce radiology and and try to prevent the problem from medical expertise. Digital storage further arising again. improves patient care by allowing for easy comparison of images over time, and by 311 represents a major achievement of my providing detailed and accurate administration. Not only did we magnifications of images. consolidate 12 call centres (eventually, all 40+ city call centres will be rolled into The programme saves doctors’ time and 311), but we now have sophisticated tools hospitals’ money – $1 million at Elmhurst to measure our performance in alone. In fact, instead of having a responding to requests. 311 affects every radiologist at all times at both Elmhurst city agency in New York and has helped all Hospital Center and the Queens Hospital 29
  • 31. New York Center, just one is needed for both only enhance patient care but also locations at night. The PACS system improve the bottom line – patients are maximises the productivity of scarce treated more quickly, at a lower cost, and radiology and medical expertise. insurers are providing higher While fewer than ten per cent of reimbursement rates to healthcare hospitals nationwide have digitised facilities with CPOE, an increase of as x-rays, the PACS system has been much as four per cent in 2002. installed at every HHC facility in the city. This has saved $4 million Putting all medical records online and will save $11 million annually. The successful implementation of the Computerising physician orders Computerized Physician Order Entry system is hastening the completion of In 2002, HHC completed system-wide HHC’s overall goal of storing all patient installation of Computerized Physician records in its Electronic Medical Record Order Entry (CPOE) throughout its (EMR). Currently, the electronic medical 11 acute care hospitals and at over 100 record of every one of HHC’s 1.3 million community-based clinics. Annually, HHC patients includes medication history, lab clinicians now use CPOE to order results and radiology tests. The EMR also approximately 13 million pharmacy links to the Micromedex patient prescriptions, 96 million lab tests, and one information system, which clinicians use to million radiology tests. National safety provide patients with a printout – in experts widely agree that using a CPOE English or Spanish – of complete system reduces medication errors by as information about their prescribed much as 50 to 70%, and HHC’s medications, specific medical conditions medication error rate with this system is such as asthma, and other critical less than .000001% – or less than one in a medical information. million. CPOE also provides clinicians with alerts and warnings, and detailed Improved adoption access medication history. CPOE further improves patient care by giving clinicians faster In February 2002, the Administration for centralised access to lab results, allowing Children’s Services (ACS) launched the doctors to treat patients promptly. For ‘Meet Our Kids’ website. The website routine lab tests, results are available in allows interested families to view photos under two hours, urgent tests are and stories of children who are waiting for available in under 30 minutes, and a permanent, loving adoptive family. The emergency screening results are back in benefits of having adoption information less than ten minutes. HHC remains far online include immediate availability of ahead of the national trend in this effort, adoption information, 24 hours a day, with 100% of all HHC physicians using the seven days a week, significant savings in CPOE system for all their ordering. Only staff time, and the ability to reach five per cent of all hospitals nationwide – adoptive homes outside of New York City, public and private – have achieved this which is a great way for ACS to find goal. Ultimately, these innovations not homes for children who might be hard to 30
  • 32. New York State-of-the-art revenue collection New Yorkers can now pay parking tickets, property taxes, water bills Thanks to NYCServ, New Yorkers can now and other fees in one quick visit pay parking tickets, property taxes, water over the internet bills and other fees in one quick visit over the internet at Through NYCServ, which went online in February 2002, New Yorkers can also place. Since ‘Meet Our Kids’ was launched, contest tickets online by conducting a enquiries to the ACS Parent Recruitment hearing with an Administrative Law Judge Hotline have increased by 65%, with via email. Individuals can also track down internet inquires accounting for about towed cars and pay certain business taxes. 50% of the average 600 total calls to the Since January, NYCServ has serviced hotline each month. ‘Meet Our Kids’ is 630,000 transactions, collecting a total of also one of the most visited areas of the $1.4 billion. ACS website, consistently ranking among the top ten pages viewed, with about Purchasing permits online 2,200 hits per month. Savings for the city include a reduced number of mailings, reduction in staff time on the phone and Last year Parks established an online credit digital photography cost savings of card payment system for special events $35,000 a year. and tennis permits. The Parks website also allows users to obtain special events permits/applications, athletic permits and Benefit QuickCheck for seniors applications, forestry permits, lifeguard applications, guidelines for donating In May 2002, the Department for the works of art to Parks, volunteer sign-up Aging released QuickCheck, an easy-to- forms, and more. use, online tool that helps New York City’s senior citizens check their eligibility for a Mayor’s Office of Film, Theatre and variety of benefits and programmes. The Broadcasting QuickCheck user completes an online application, and can then choose from 16 assistance programmes administered by In 2002, the Mayor's Office of Film, various branches of federal, state and local Theatre and Broadcasting loaded all government. QuickCheck informs the permit applications online at applicant which benefits they are most Prior to this, the likely to receive and then provides a link agency had been processing permits by to the administering agency’s eligibility hand and with typewriters. In addition form. Following the introduction of to streamlining the permit process, the QuickCheck, the number of monthly visits agency has installed a new phone to Aging’s website rose by nearly 50% to system whereby an individual answers over 23,000 hits. the phone rather than an automated voice mailbox system. 31
  • 33. New York Mayor’s management report – Leveraging technology resources streamlined and online At the beginning of 2002 the DoITT was In September 2002, the Mayor’s Office of instructed to assist agencies in cutting Operations released the newly streamlined their technology and telecommunications Mayor’s Management Report (MMR – a costs, and upgrading their technology report of different statistics compiled by infrastructure. DoITT began sharing its the different city agencies). The new MMR data centre and fibre resources to save has been redesigned as a ‘Public Report agencies the costs typically associated Card’ – to help citizens, civic groups and with securing internet access or housing public officials understand how data centre facilities at alternative government is performing. The City locations. Currently, 13 agencies are introduced a companion website – using the service, saving the city $1.3 – that million annually. makes obtaining and understanding the data more user-friendly and accessible. In addition, city agencies are now able to The website also allows the public to view, use DoITT’s Virtual Private Network facility locally mapped performance statistics, so to gain remote access from the internet the average user can enter his or her zip for individual agency users, saving the city code and learn the local crime statistics, $1 million annually. DoITT has also opened park cleanliness rates, fire response times up its data centre to any agency, allowing and more. Since its launch on 24 them to save the cost of building their September 2003 the e-MMR has received own data centre, saving the city over $5 over 170,000 page views, and over 59,000 million annually. people have taken advantage of the neighbourhood performance application. And finally, DoITT is transferring the website from its external host site Telecommunications cost-savings in New Jersey to the DoITT data centre to initiative avoid third-party vendor costs. The move will save the city $1.4 million annually. In 2002, the Department of Information Technology and Telecommunications Paperless procurement (DoITT) began an aggressive review of all city telecommunications needs to discover Starting in July 2002, the Department of ways to reduce telecommunications costs Citywide Administrative Services (DCAS) without reducing service. DoITT suspended the monthly distribution of all negotiated a revised local telephone usage paper copies of its Requirement Contracts billing plan with Verizon that is expected (RC) to City agencies. Instead, city to reduce expenses by approximately agencies now must log onto the city’s $10 million annually. In addition, the city intranet to view RCs. To make the new will save $1.7 million by cancelling unused system work, DCAS developed a voice and data lines, and save $2 million searchable database of all RCs as well as by securing better pricing for various the central storehouse catalogue of items telephone services. in inventory. Users can easily search the 32
  • 34. New York Using technology and multi- By making procurement agency coordination to combat information available domestic violence electronically, paper waste has been reduced dramatically and In October 2002, the NYPD completed Requirement Contracts are work on a new system that digitally records and indexes all calls made to the accessible instantaneously city’s 911 emergency response system. As a result, clear and accurate recordings of these calls are now retrieved and made databases based on key words, contract available to prosecutors almost numbers, vendor names or contract types, immediately. Prior to the implementation and view or print electronic versions of the of this new technology, 911 calls were actual RC reports. By making the manually retrieved by technicians and information available electronically, paper provided to prosecutors on cassette tapes, waste has been reduced dramatically and a process that took an average of three RCs are accessible instantaneously. This months to complete. The Kings County programme has saved $55,000 in FY2002. District Attorney is now using the system In FY2003, and every year thereafter, the to strengthen the prosecution of programme will save $100,000. misdemeanor domestic violence cases. Prosecutors may now play victims‘ 911 Paperless city offices calls for arraignment judges, increasing the likelihood that bail will be set. In some In 2002, the Human Resources cases, 911 recordings can even serve as Administration (HRA) converted 19 of 31 direct evidence, enabling prosecutions to job centres to a paperless office system, proceed even if the victim refuses to with the intention of having all the centres cooperate. From 22 October through 4 completed by June 2003. With the December 2002, the District Attorney’s paperless system, employees enter Office accessed and screened 197 digital information about clients directly into the 911 recordings prior to arraignment. computer, instead of filling out forms in Approximately one-third of those calls longhand or on a typewriter. The system were deemed to be of significant prompts workers to ask for information evidentiary value and were played in the and ensures that data is not missed. As courtroom to bolster bail applications. workers become increasingly familiar with the system, the time necessary to serve DNA technology each client will continue to decrease, and to date HRA has imaged 230 million During the first three-quarters of 2002, documents. The paperless office has OCME‘s Forensic Biology Laboratory already substantially cut processing time increased the number of Combined DNA and eliminates paper files and the need to Index System (CODIS) profiles 140%, from search for them. 1,313 to 3,156 profiles, resulting in a 52% increase in case-to-case matches, a 36% increase in convicted offender matches, 33
  • 35. New York and a 61% increase in conviction matches. grant from the New York City Police Turnaround time for DNA work related to Foundation. The NYPD has also expanded sexual assaults averaged 39 days per case the ‘Digital Photographs Pilot Project’ from – the fastest turnaround time for regular Queens to Brooklyn to assess the use of casework in any large public DNA new digital camera technology and laboratory in the United States. Over the software, and expedite the transmission of past year, OCME has also electronically photographs to the District Attorney’s archived two years of medical examiner Offices for the prosecution of defendants case records, forming the basis for an in domestic violence cases. In addition, the electronic records management system. NYPD has provided laptop computers to Finally, OCME has been developing an all precinct, PSA and transit commanders, agency-wide system to electronically connecting each to the Compstat. generate death certificates. This system will be fully operational on1 January 2004, Forensics when the city adopts the new national death certificate standard. The NYPD has launched several technological initiatives to enable forensic OCME has successfully continued to scientists to provide a higher quality respond to the largest, most complex report in a timely manner to prosecutors mass fatality incident in the history of the in New York City. These include the United States, namely the September 11th enhancement of ballistic imaging, digital attacks. The Office restructured imaging and the handling of data operations, created new processes and and evidence. procedures and coordinated efforts with other agencies, jurisdictions, and more than 80 countries. As of this date, 52% (1,443) of the victims reported missing have been identified, and OCME anticipates that the introduction of new DNA technology will push the figure to 72% (2,000) of the victims. OCME has also utilised DNA technology to link remains of the victims of Flight 587. The victims’ families have claimed more than half of the remains and OCME is meeting with the families to decide upon a final resting place for the remains that have not been identified or claimed. Digital cameras In 2002, the NYPD distributed digital cameras to all precinct, housing, and transit commanding officers through a 34
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  • 37. Stockholm Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administration and Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm A passionate interest in technology deregulated telecoms market in the world. – and communications in We wanted to improve the infrastructure particular – seems to be a by laying new fibre, but we wanted to do hallmark of the Swedish national so in a manner that would not perpetuate character. Perhaps it’s the combination of the existing monopoly (since, like most a small population and many isolated countries, we had only one telecoms island communities. Or perhaps it’s provider at that time). because we feel ourselves part of a little country on the outskirts of the world, so The solution was Stokab ( that when new ideas arrive we delight and the international community was in making it possible for all our initially as dismissive of this as Lars countrymen to share these innovations Ericsson’s neighbours must have been as quickly as possible. about his fishing rods. It has, however, been equally successful. By 1898, for example, Stockholm had more telephones than London or Paris. The idea was simple. The City of The phone had become an enduring Stockholm raised the finance and national pastime. It’s an obsession that incorporated a vehicle (AB Stokab – the has certainly paid off: in 1910, when the name is not an abbreviation or anything, wife of inventor Lars Magnus Ericsson first simply the title of the company), to cable bought a car, her husband insisted on the city. This meant turning our backs on taking his phone with him on every short-term revenues – making a quick journey. They solved the problem of buck by effectively selling the right to dig connecting to the exchange with fishing up the roads – and embracing long-term rods. When Lars felt a compulsion to make investment. Just as the civil authority is a call, Hilda would park the car under the responsible for the roads but not for the nearest telegraph pole and wave the rods traffic, so Stokab is responsible for in the air, hooking the wires onto the providing dark fibre (ie fibre-optic cable overhead lines. The rest, as they say, without the light signalling component), is history... without dictating the use it is put to. This story perfectly illustrates another There are now 68 customers or operators national trait: a desire not to adopt the that lease capacity from Stokab. We conventional solution, but to implement reached break-even in three to four years. practical strategies that actually work. In It’s a lot easier to buy capacity from 1993, Stockholm became the first Stokab than it is to start from scratch. And 36
  • 38. it’s not just a corporate resource: 95% of district has its own local council and its homes in the city of Stockholm have been own public administration. Together, passed, so all the home-owner needs to these districts are responsible for the great do is connect to Stokab either by majority of the city’s budget and also have themselves or through a service provider. direct control over childcare, schools, care of the elderly and other social duties We developed the Stokab model because within their district boundaries. we wanted to foster competition, but we didn’t want the situation that had arisen This decentralisation was an excellent in, for example, London, where numerous opportunity for the city to rewire and different providers dug holes in the put fibre into city institutions. Each ground, causing difficulties for citizens district council was connected to the and endless traffic disruption. On the network and at the same time it was other hand, at a strategic level, the issue decided that all schools should also be of competition had to be addressed connected, as well as elderly care because in the inner parts of the city there institutions and daycare centres. was room for two or three operators. This future-proofed infrastructure was In addition to practical considerations, we financed by the city, the expenditure chose the public investment route because justified by the benefits of having a public we realised that we could use the network access network. These benefits have fallen as a tool in raising the profile of the city. principally into the areas of education and Our international marketing position is training, information services and that Stockholm is a good place to invest telecommuting. in. This is an indirect financial benefit for the city: Stokab itself is not a revenue The networked school source. Although it does make a small profit, this is not the objective. Indeed, the Stockholm has good-quality upper city is a customer and pays for network secondary schools. 41% of children in capacity just like everybody else. Stockholm have one parent that comes from another country – and even with this By 1997 the city had become a market high level of immigration the schools are leader and a decision was made to break successful. In fact, 70% of 16-19 year olds up the city into 24 districts (although this are satisfied with their education and will number has now fallen to 18). Each recommend the programme they are 37
  • 39. Stockholm studying to other pupils. A recent OECD teaching are different, the approach of the survey highlighted the success of the teacher has had to change – and that’s system, with 91% of the population not an easy task. We had begun an achieving the equivalent of 5 GCSEs at extensive teacher training programme in grades A-C (placing the country’s new media studies as far back as 1985, educational system ahead of the USA and using city- and government-funded every European country except Norway). education programmes. We discovered There is a private system as well – 13% of that there was no substitute for practical schools are independent, but the students experience: teachers need to experience are paid for by the state, and every the value of the net in their own subjects independent school must use the national so they can see what’s possible both for curriculum. themselves and their students. Stockholm has been working for many Some teachers are understandably nervous years trying to provide all schools with about IT, but once critical mass is achieved network and computers. The programme the late arrivals start hurrying to catch up. has been running since 2000; all schools We now have teachers in different schools are now connected and the focus is on exchanging lesson plans with each other older students – 16-19-year-olds. Students and cooperating in other ways. now have much greater individual choice of study topics. The traditional classroom It’s not just teachers that benefit, either. with a teacher lecturing to assembled School administrators can now students is on the way out as greater use communicate much more effectively with is made of broadband internet resources. parents. Initial feedback seems to suggest that parents are particularly concerned to For example, a student interested in get information about homework, food, history would traditionally have picked up tests (pass and fail) and what the teachers a book, read five or ten pages on World are like, so we’re developing programmes War II and then looked for another book to share this information as part of an to consult on another related subject. A overall strategy to improve communication library search involved not only locating between school and home. This is volumes, but scanning the indices and particularly useful now that parents reviewing the content before building a choose the school they want the child to reading list. Today, you can use the web attend; getting to know more about the and find many different resources for the school in question is very important. topics you are particularly interested in, easily building a reference library of books Another established project centres on and articles that enable you to approach distance learning. Mature students – or the topic from many different angles. You those who don’t want to come to school – can even find people who were living can find up to 25 courses on the web. This during World War II and discuss the war has been particularly important for adults with them in person. who failed in their earlier years. Initially it was difficult persuading people to sign up, Of course, now that the methods of but several hundred adults have now 38
  • 40. Stockholm everyone may welcome a reduction in The political objective behind e- paperwork, new systems involve process learning is not to increase or re-engineering and can be seen as decrease the number of staff, but reducing face-to-face contact. to raise the status of working in the public sector; attracting the As a result, 2bn krona have been set aside right people and developing the for training local government staff and an important part of the fund is to use IT as a right skills tool to develop e-learning. The political objective behind e-learning is not to increase or decrease the number of staff, taken these courses. Your work is graded but to raise the status of working in the remotely by a qualified teacher via email. public sector; attracting the right people An additional benefit is that distance and developing the right skills. We want learning can be made available to be an attractive alternative to the internationally: we have Swedes using the private sector – and by having well-trained service all over the world. personnel we increase the status of public sector employees. Improving public service The business case Distance learning and lifelong education extends into the workplace as well. It’s not Of course, the city is involved in the school just about taking a course in English or budgets – how much they spend and their German: it can be about developing new results – and there are procedures laid skills and changing jobs. This is an area down that need to be followed, but in the where we still have a lot to learn, but we development of the education network are looking at ways of briefing staff on there was not always a formal business new working practice, legislation and analysis. We were not asked what the other issues, as well as simply making alternatives were or could be. We didn’t materials available for sharing and re-use have to submit a formal business plan in by small, widely distributed groups. every case and we didn’t necessarily know how much things would cost. However, Up until recently, most of our investment the city district budget set aside 200m has been in providing services to the krona per year to start with (recently general public. However, it is clear that our reduced to 80m), an allocation which own internal training methods are reflected general agreement that pump inefficient and we’d like to introduce priming was necessary for growth. The computer-assisted training for the 45,000 central education authority has a specific employees who work for the state. To do budget earmarked for computers and this, we have to re-educate our staff to software and each individual school has its find and use material online. We also need own budget as well. new authoring and publishing tools to adapt core material for use by many different groups. It’s not easy: while 39
  • 41. Stockholm It’s therefore very difficult to assess the decided it is not secure. And on the topic exact expenditure on e-learning. It’s of security, we have a PKI (Public Key equally impossible to establish the Infrastructure) project in progress and measure of the benefits. Our attitude is expect this to be rolled out in 2004. that this is a question of democratic right, rather than a profit and loss account. The Telecommuting programme extends from the very young to the very old. It helps the disadvantaged Sweden’s island geography makes as well as the physically and mentally telecommuting more attractive here than handicapped. One young man pointed out it might be in other countries. People to me recently that ‘although I may often work from home one or two days a struggle to write my email, no-one who week and Stockholm has invested in laying receives it knows that I took seven hours fibre out to the many tiny islands to move to write it. For the first time in my life, companies away from the city centre. We I am an equal.’ Can you put a value had another agenda here: wiring the on that? islands reduces traffic flow into the city, easing congestion. Call centres, cab and e-democracy taxi firms, and others now work from the islands, and managers are growing If you’re going to exercise your vote accustomed to the idea. If it’s a sunny day, correctly, you need the information to then a work team can sit in a warm spot make a decision. 10m krona has been set outside; never mind their location – only aside for e-democracy projects. We have their output matters. tried to put as much as we can on the web, providing information and at the Information online same time helping to demystify the political process. In addition to the information services already referred to, there are two other For example, Kista is often referred to as areas of application that have been Sweden’s ‘Science-City’. There are over particularly useful. The first relates to 700 technology companies based there, job-hunting. We have seen a great deal employing 65,000 members of the local of development in this field and all job population. Forthcoming votes in the city searches are computerised and published council are now published online a month online at a national level. This makes it ahead, together with an application that much easier for us to support and monitor allows people to chat with and email employment services. politicians. We also made sure that people could view the debate on the web via a Finally, we’ve made a considerable live video link. investment in our transport system. Thanks to investment by the city, we Stockholm is also working with the Cyber can now publish real-time online Vote EU project (, information about traffic jams and other but currently we do not plan to use it in transport issues, reporting both local and the next election. The Government has national conditions. 40
  • 42. Stockholm A more specific M-City case study involves People often work from home one a small daycare unit for the elderly. It has or two days a week and between 10 and 15 workers and one Stockholm has invested in laying manager. The workers are elderly fibre out to the many tiny islands themselves and often unable to work – the manager would have days when five out to move companies away from of ten of her team were sick. On these the city centre days she had to spend two hours a day phoning other people to fill the slots in the complicated schedule. The M-City What’s next in Stockholm? programme enables her to send a group SMS to everyone who wants to work that day and the first person who calls in gets We have a new project called M-city, a the work. She now spends only five generic title for services accessed by minutes a day on this task, saving 40 mobile phone. The city sees 3G as having hours a month. a role in creating public services, providing better administration for services related to the care of the elderly and fast-tracking We’re already seeing the benefits of the the registration of students in schools. M-city programme. Inward investment from the IT sector is increasing and at the time that this article went to press, ten IT M-City connections could be through fibre companies had relocated to Stockholm in or wireless – 3G or wireless LAN (and in the preceding six-month period. Our Stockholm they are complementary). infrastructure makes it possible for us to Wireless LAN enables operators to create be a test-bed for services and we can open hot spots within the city – there is already up marketing opportunities at many a huge hot-spot at the university campus different levels, contributing to the critical and another in the city centre. mass of demand that the markets require. All this has helped enormously in For schools, pupil check-in each day is a marketing the city as a place to live heavy administrative burden for every and work. teacher. Our aim is to link this process with feedback to parents, using SMS. Looking ahead We can text them to tell them if the child is not at school. We can also use GPS in the phone to pinpoint a child’s Issues ahead of us include how we can get location for both teachers and parents. rich educational content into the home. Over a certain age every child in Sweden We believe that users will want more has a mobile phone, so the system has a games, more movies and hopefully more lot going for it. And in higher education, of a say in how they are governed. All students can receive SMS notification of these things come from dialogue between cancelled lectures and other last-minute people and government. programme changes. • We have our fibre network; now all we need are more ideas for applications. 41
  • 43. Stockholm With this in mind, the Stockholm Challenge Award was developed to e-learning – connect with other cities. The Challenge the lessons we learned! Award is a competition for user-driven application development. New ideas Here are the five most important have to be innovative, user-friendly and lessons we learned in deploying must show a clear social benefit. We our e-learning programmes: now have a database of 4,000 ideas. In the end, we believe that investment in • Efficient technical support is our own city has not only brought crucial. Frustration with benefits to Stockholm, but will also technical problems involving bring benefits to the world. the computer, the network or the switches is completely unacceptable The Stockholm archive • There must be enough capacity. If the net is down it kills interest Our latest municipal project is about the city itself. We’ve built an online • Support in learning is necessary archive of historical views onto the network so that students can see • Try to arrange network structures what it would have been like to live that bring teachers together in Stockholm 100 years ago – not only what the environment looked like, • Remember that it’s not going to but also how people lived and worked. be easy! Never downplay the challenges involved This project has shown the benefits of inter-departmental collaboration: the city archive, administration and libraries are all working together to see how schools and citizens can interact with the past. One archive project went back to the 13th and 14th centuries, focusing on a single district of the city. The knowledge base is derived from historical, political and social archives and one of the main objectives is that it should encourage a sense of belonging among those living in the city. It’s also timely: the city celebrated its 750th anniversary in 2002, an event that helped to raise interest in the project and vice versa. 42
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  • 45. Milan Silvio Scaglia, Chairman of e.Biscom, Milan M ilan, city of La Scala and Da company has achieved this by maintaining Vinci’s Last Supper, sits at the a strong cable presence and centre of northern Italy’s road simultaneously beating the telco sector at and rail networks, straddling its own game by rolling out a DSL service lines of communication between east and that is not only three times faster than the west. For Europeans travelling overland, main competitor but has succeeded in Milan is the gateway to Italy. more than doubling subscription levels in 12 months to 249,000 customers (with an Its dominant position in the physical ARPU of over $900). This growth has network infrastructure of the country is continued in the context of strong mirrored by dominance in networks of a national demand; Italy as a whole saw different kind. A fortuitous combination of over 525,000 new DSL lines taken up in entrepreneurial daring, good fortune and the first six months of 2003. technological innovation has put Milan at the forefront of Italy’s broadband Template for a networked city revolution, helping to push the country into the world’s top-performing DSL and Although e.Biscom operates in the main fibre-optic broadband performers. metropolitan areas of Italy and further afield, Milan was the cradle of the Fibre-optic came first. In 1999, our operation. This was not just for company e.Biscom rode the internet wave geographical reasons, but also because with the largest private-sector IPO in of Milan’s unique characteristics as a Italian history, raising 1.6bn euros in a city and community. float that valued the company at 7.3bn euros. The cash was earmarked for a First, the city has a vibrant creative courageous rollout of 2,500 kilometres of industry that drives an economy based new optical fibre, offering business and around design, fashion, media and IT R&D. consumer broadband cable services. The We set up e.Biscom knowing that Italy only threat came – as it has done already had the highest proportion in elsewhere – from the telco sector and Europe of SMEs (Small and Medium its deployment of cheaper but slower Enterprises). These thrive in small offices DSL technology. and home offices and are often in the same multi-storey buildings as Over three years later, e.Biscom has residential customers. emerged from the IT downturn with rising sales and a burgeoning stock price. The Second, Milan is characterised by a high 44
  • 46. proportion of high-rise buildings, IP to cut costs concentrating both domestic and business demand for services into a single address. From the beginning, e.Biscom’s service We were aware that AEM, the local utility, was based on pure IP (Internet Protocol). had already developed an infrastructure There would be no voice switches, no of ducts for fibre optic cables, which had cables, no boxes. Milan’s micro-markets not been completed. We reasoned that, can be served by an IP switch or router since the average number of residential for a fixed cost; the costs then decrease clients is 16 per building, the critical as take-up in the same building, or parameter would be the adoption rate cluster of buildings, increases. Given in these high-rise buildings. Since each that penetration is now 20-25% presented a micro-market demanding of areas covered by the service and that anything from VOD and entertainment an average of four clients per building will through broadband voice and data be connected, the company forecasts a services to traditional home internet return of the initial investment in just over service provision, e.Biscom set its sights two-and-a-half years, reaching break-even on a diverse offering. in 2005. When you have a single provider in this IP gave e.Biscom this competitive context, it can have a dramatic effect advantage over other telecoms companies, on people’s lives. You live and work locally but there is another benefit for Milan. The and time is of the essence. Your provider company uses IP to facilitate the offers VOD, so you don’t have integrated management of voice, data and to wander the streets in search of a title video using a packet-switched network to rent or buy. The same provider running over fibre-optic cable. This gives cables up your business, provides your the Milan operation two advantages – digital TV service and helps you call your practically unlimited bandwidth and mother. This makes for ease of use that maximum efficiency of its investments in attracts creative companies; while the infrastructure. The fibre-optic IP network performance advantage helps to grow has enabled e.Biscom to integrate innovative operations. previously separate functions and develop innovative, value-added services, which can be used simultaneously over a single connection that suit perfectly the physical structure and creative drive of 45
  • 47. Milan the Milanese community and its Content companies, however, are growing workplaces. We can offer entertainment, increasingly aware of the gate-keeping commercial services such as video role played by local network providers. conferencing, and other high-bandwidth This probably helped e.BisMedia to sign applications that would not be possible agreements with leading content over a standard DSL offering (generally producers such as Universal Studios, three or more times slower). 20th Century Fox, Dreamworks, Discovery Channel, BBC, MTV/Nickelodeon, United Entertainment as business driver Features, as well as complete channel offerings from companies including CNN Entertainment services such as VOD and and Cartoon Network. These companies digital TV are not only profit-centres in see innovative distribution (and VOD over their own right: they also carry a branding IP can be an especially powerful advantage that demystifies the technology combination), as a means of building service, drawing in the individual who positive brand associations as well as in turn brings commercial custom in generating additional revenue. his wake. Entry into the digital broadcast market Cable TV combined with VOD and means brushing up against new statutory broadband internet (itself a rapidly bodies and legislation. In Italy, the merger growing entertainment medium) is a between TELE+ and Stream into the new compelling offer. Technology companies satellite pay-TV platform Sky Italia, and the cannot change their spots entirely, consequent ruling of the EU Antitrust however, and e.Biscom’s successful Commission, means that e.Biscom will be strategy was initially to build Joint able to complete its television offer with Ventures (JVs) with established operations. live Serie A and Serie B soccer matches, starting from September 2003. On the Rai Click, for example, is a JV between basis of the European Commission’s e.BisMedia (a wholly-owned e.Biscom decision, the premium content of the new content provider) and RAI, the Italian State single platform Sky Italia (mainly Serie A owned broadcaster. This JV provides on- and Serie B football matches, sports demand content on a commercial basis, events and movies) will be purchasable by with over 2,500 videos available through non-satellite competitors at a ‘retail minus’ TV and Web. Rai Click also supplies access price; that is, the price offered to the final on a PC via ADSL (and, in the case of client reduced by a percentage. FastWeb – e.Biscom’s operating company – customers (see panel) on television), to The power of telepresence RAI’s current and archival programming of films, fiction, TV shows, classical music, Video networking provides another concerts and theatre. The customer can example of how IP over fibre optic can choose between a fixed-fee subscription generate new applications. e.Biscom’s and a pay-per-view option. broadband telecoms operator FastWeb launched a videocoms service in the third quarter of 2002, making it available to all 46
  • 48. Milan communication and links between Fast Web technology supports geographically distant schools. audio/video links between remote government agencies, public There are also numerous applications in bodies, schools and hospitals to tele-healthcare and e-health. Remote permit significant enhancements medical consultations, healthcare services, transmission of patient records, samples in the quality of public services as and x-rays are all possible without getting well as cost-effectiveness out onto the road. Another growing area is remote security: the ability to monitor your office, shop or studio from another its residential customers in Milan, Rome, location using high-definition CCTV. Genoa, Turin, Naples and Bologna. The business model and partnerships/JVs The technological features of the new we pioneered in Milan are all based on service and its applications in public, new technology, which makes investment private, social and business environments more efficient than traditional approaches. make it easier to manage or establish in The city itself – its historic, physical businesses in Milan. TV-quality video infrastructure – helped to create this conferencing is a world away from the technology for the vital triple play of more familiar narrow/mid-band variety telecoms-entertainment-internet, which and is a strong competitor to established we’ve driven to profit by maintaining satellite linking technologies. Subscribers service, visibility and branding in each need only a TV, touch-tone telephone of the consumer and business sectors. (cordless, for preference) and a small Within those sectors, we maintain strong FastWeb TVcam video camera placed on focus and maximise market share. The top of or next to the TV. The simplicity investment is very high, but the returns that arises out of service integration is are there and our quarterly returns are immediately obvious: to make a video call demonstrating that we’re meeting you simply press the asterisk key before the challenge. keying the phone number. FastWeb: triple play to home Apart from opening up new opportunities and business for person-to-person, videocoms can be used for a host of applications in the FastWeb was originally a partnership with public sector. FastWeb technology existing local municipal utility provider supports audio/video links between AEM. In 2003 e.Biscom acquired AEM’s remote government agencies, public stake in the company and since then we bodies, schools and hospitals to permit have driven the operation into a period of significant enhancements in the quality of rapidly increased growth and profitability, public services as well as improved cost- reporting an EBITDA of 40.1m euros in the effectiveness. Application opportunities six months to June 2003 compared to include tele-education and e-learning 5.5m euros in the first half of 2002. (extra lessons from home), parent-teacher 47
  • 49. Milan FastWeb provides voice, broadband Click titles on-demand. There’s also internet connectivity, data transmission an EPG (Electronic Programme and video services in all existing formats: Guide) and a virtual network video broadcast (ie traditional free-to-air TV), recording system (VideoRec) which multicast (ie pay TV and pay-per-view) and allows the recording of programmes unicast (ie video-on-demand and full without the use of videotapes or interactive TV). Access to the end-user is VCRs. FastWeb TV is provided over provided directly through fibre optics its network without the need of (with Fibre-to-the-Home/Fibre-to-the- antennas, satellite dishes or Office solutions), or through xDSL decoders technology over unbundled lines. • Wi-Fi – this service allows customers to take full advantage of FastWeb’s The technological solution and the fibre- bandwidth, surfing the net rapidly optic infrastructure support much faster from any point at home without access speeds than those currently having to install additional cabling available on the market: up to 10 Mbit/s upstream and downstream for residential There are many business applications on customers and virtually unlimited speeds offer, but the most requested services for business subscribers. Also, the use of include VPN (Virtual Private Networks) and the IP protocol has allowed the Business to Employee (B2E) services. development of a DSL service in cities FastWeb offers connectivity between where the fibre-optic network is still being different branches at speeds of up to 1 rolled out, thus enabling advanced Gb/s, and from employees’ premises to the telecommunication services, at reception corporate LAN at speeds of at least 2 Mb/s speeds of up to 4 Mbit/s and transmission on FastWeb’s network, with no need for speeds of up to 0.512 Mbit/s, much faster dedicated links. than those delivered by other DSL operators in Italy. Business users can also benefit from video-conferencing systems, web hosting As well as providing faster access (including audio-visual streaming services), compared to the competition, FastWeb is and a number of bandwidth solutions constantly focused on the development of from bandwidth-on-demand to SDH high new value added services. The residential capacity lines at speeds of up 155Mb/s. offer, on top of voice and broadband internet services, includes: • Videocommunications via the TV set • FastWeb TV – this service allows subscribers to access the main Italian broadcast TV channels in digital format, plus a selection of satellite channels and a video-on- demand service. The latter offers more than 3,000 e.BisMedia and Rai 48
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  • 51. Wroclaw Slawomir Najnigier, Deputy Mayor of Wroclaw M y city Wroclaw is in Poland, who fail to adapt to the data revolution the capital of Lower Silesia, will be eliminated from the game. with a history going back over 1,000 years. Following the Programmes alone are not enough: you collapse of communism in 1989, Wroclaw also need the skills. Wroclaw has them. has been making up for lost time. External Not only are our academic standards well- investment has multiplied enormously: in known throughout Poland and elsewhere, 1989, there were only 17 companies with we also have a fund of new ideas, which a foreign capital base: now there are local entrepreneurs (there are around 400 almost 2300. IT companies in Wroclaw) are quick to put into practise. The country is politically stable, has several industry sectors ranked in the Broadband infrastructure has been put top five in European economic tables, into place, largely because the Wroclaw enjoys an international reputation for regional authority itself has, with over 350 innovation and has established new departments and nearly 20,000 staff, an benchmarks in several IT areas. urgent need for it. No surprise, then, that Fashionable and popular, Wroclaw the e-Wroclaw programme is principally enjoys growing international recognition. concerned with municipal operations and management. Initiatives range from the All these advances have taken place construction of e-Administration, against a background of increasing e-Education, e-Transport, and e-Security connectivity, driven by targeted platforms, to providing support to local programmes, a strong skills base, the business (e-Services). Local government provision of a broadband infrastructure cannot, of course, provide the answers (or and assiduous promotion. the services) which rightly come from the independent sector – nor can it provide all First, the programmes. ‘e-Wroclaw – City the capital that that sector requires – but of the Future’ is part of the Wroclaw it can provide support and help to speed Economic Development Support things along. Programme and is a good indicator of our objectives. The slogan ‘City of the Future’ Hence the provision of broadband highlights our belief that state-of-the-art infrastructure, without which none of data technologies have a direct impact these initiatives could be put into practice. upon local economic development. Those The city has financed the building of the 50
  • 52. largest local communication system owned 56% by the city and the first (TETRA) in the country. At present TETRA is heating company quoted on the Warsaw set to become the national standard for Stock Exchange) is responsible for municipal and police services. The providing heating to 60% of the authorities in Wroclaw were also the first apartments in Wroclaw. Following the in Poland to initiate the launch of a disastrous floods of 1997, MPEC Wroclaw broadband multimedia network (described S.A. had to restore and re-engineer parts in more detail below). Broadband service of the system and, with typical local infrastructures will soon, we believe, be an ingenuity and enterprise, decided to use the cables (used for system monitoring) to everyday feature of city life, just like water provide broadband services. and sewage systems. A local consulting firm provided the Finally, self-promotion. We’ve found that expertise needed for building, integrating new media distribution is the cheapest and commissioning the network, which and most effective. Our website went live in March 2003. The services, ( is the most popular including permanent and fast internet municipal site in Poland, with around access, are affordable at around 250,000 visitors per month, including 12.5 euros per month and between July 15% from abroad. and October 2003 contracts were signed with over 3,100 customers (out of 7,000 E-Wro Municipal Data Network homes wired). We plan to extend the E- Wro network to approximately 40,000 Our flagship project is undoubtedly the flats by 2005. E-Wro Municipal Data Network. On its own initiative, the city launched a state-of- What makes this project extraordinary is the-art municipal infrastructure project that it’s comparable with similar projects with the objective of building a taking place in the best-developed broadband multimedia network (METRO countries of the world. We may be only or MAN). the fourth largest city in Poland, but we have always been an important economic, E-Wro is a good example of local academic and cultural centre. Wroclaw drive and ingenuity. Miejskie needs to compete with other cities and it’s Przedsilbiorstwo Energetyki Cieplnej pleasing to realise that, in many places, Wroclaw S.A. (MPEC Wroclaw S.A., projects like this are still confined to the 51
  • 53. Wroclaw drawing board. E-Wro was innovative, Non-commercial projects are not ignored. turned a natural disaster to our advantage The City of Wroclaw actively researches and, most important of all, was entirely the possibilities of securing – and conceived and carried out by the canvasses for – EU funding for deserving local community. causes. We have been using these funds for years for expanding the road and E-Wro is not just about shuttling data sewage system – we now apply our back and forth. We now have evidence to experience in raising such finance to the support the theory that data funding of IT projects. infrastructures act as catalysts for new applications. Schools located in the E-Wro We further believe that private, catchment area, for example, are using the commercial and public-sector projects service to create e-mail accounts and web- should not be carried out in isolation. sites, as well as to swap information and For example, by developing the set up local networks. We expect most of e-Administration programme, the city not Wroclaw’s 300 schools and educational only provides new services, but also institutions to be connected to the reduces the business risk of the METRO network by the end of 2003. network by acting as a consumer. It works the other way too – the company Another example can be found in developing the network indirectly enables neighbourhood security. Wroclaw has a many non-commercial schemes. The TETRA-based communication system, burden of developing IT is therefore which provides the foundations for the spread between different organisations e-Security Programme, but it was the and sectors. The benefits are shared by all. broadband infrastructure that made it possible to install a CCTV camera network One thing is paramount: the E-Wro to monitor housing estates. Without network has to follow the market and access to a network such as E-Wro, bow to market forces. Its primary task is projects of this kind would have been not to meet the requirements of education prohibitively expensive. and administration, but to provide commercial broadband services to Projects in Wroclaw use a range of Wroclaw residents. Before the network different financial models to get was built, we studied and developed off the ground. Some projects, like careful business plans. It’s a little early to e-Administration, e-School or e-Transport speak of a commercial success – as I have are financed by the city and, in some already explained, the local authorities cases, from European Union grants. In have not spent a single zloty on the these cases, the City has direct status and project – but it's just as important for us influence. Other projects, including the to see that the services are being used. E-Wro network, involve the independent Take-up of the services has already sector. So far the implementation of this exceeded our original projections. broadband network has not cost the city a single zloty. Computer-based administration platforms can be rather incestuous affairs; 52
  • 54. Wroclaw multimedia promotion is just one E-Wro is a project on a truly recent example. European scale, watched with interest by our colleagues I said at the start of this essay that we are throughout the international building an international reputation and, community again, the E-Wro network is a great example – a project on a truly European scale, watched with interest by our colleagues throughout the international government departments can get carried community and matched by very few away by new internal applications, initiatives elsewhere. I’m convinced that forgetting the true end-user – the citizen. the developments taking place in Wroclaw In the third quarter of 2003, Poland began are a taste of the future: witness the level the task of introducing legislation to of attention paid to the city and the E-Wro enable and promote online services to project in particular. Other cities in Poland ease the administrative burden on the are eager to benefit from our experience public. Without such appropriate and plan similar investments - and what legislation, we could waste the entire better example than a good plan, potential of IT. It’s a myth that the public successfully implemented? We can only is indifferent: most inhabitants of Wroclaw hope that the number of connected cities are behind us on this and, wherever the E- will grow steadily in future. Wro network offers free line installation (with no obligation to sign a service provision contract immediately), over 80% Finally, I am delighted that you have of inhabitants place an order. The demand taken the time to read about what is proven. we’ve been up to and for giving me this opportunity to present our town. I invite you to Wroclaw – a City of the Future. Wroclaw plays an active role in regional And, if you cannot visit us in the flesh, development, so these projects are having you can always pay us a virtual visit an impact way beyond the boundaries of over the internet! Wroclaw City limits. Early 2004 should see the launch of the Wroclaw Technology Park (with the city as principal Important addresses: shareholder), while the Wroclaw Technology Transfer Centre is active at City of Wroclaw: Wroclaw Technical University. Institutions such as these, as well as other colleges, MPEC S.A.: chambers of commerce and industrial bodies are invited to sit on the Board of Miejskie Sieci Informatyczne ‘e-wro’: the e-Wroclaw Programme. It’s a prime board objective to ensure that innovations are propagated throughout the region; ‘E-Wro’ operator: a regional conference devoted to online 53
  • 55. Manchester Dave Carter, Director of Manchester Digital Development Agency T he success of modern Manchester of world trade in textiles, and from this is founded on a long and proud base in textile manufacture and trade the history. Manchester was the first economy diversified into engineering, city of the Industrial Revolution – chemicals, publishing, legal services and the first city in the world to experience the banking. These are still the cornerstones of shock of rapid industrialisation. Within the the regional economy, together with the space of little more than a century, it grew fastest-growing internet and new media from a small mercantile centre to become sector in the UK outside of London. the second largest city in England, with a During this period of wealth creation the global recognition of its ‘Made in foundations of the city’s traditions and Manchester’ brand. The cradle of the institutions were laid. In education, Industrial Revolution, it remains a Manchester has the largest student breeding ground for innovation and campus in the UK, with 60,000 students enterprise. and three universities within one kilometre of the city centre; in health, teaching Manchester was founded as a Roman hospitals and research institutes; and in settlement and was a historic commercial transport, it has the world’s first and trading centre for 400 years before passenger railway and now one of the the Industrial Revolution. It has a proud world's top-ten airports. The foundations international history dating back to the of the city’s cultural life were also laid settlement of Flemish weavers in the city with Manchester having England’s first in the 14th century, through Manchester public library, the first professional merchants playing an active role in the orchestra, the first repertory theatre Hanseatic League, to its role as an company and a series of historic museums international centre for political and and art galleries. economic thought in the 19th century, hosting both Adam Smith and Karl Marx. A new strategy for Manchester as By the middle of the 20th century, a post-industrial city Manchester had already provided the world with the first steam engine and The challenge for Manchester now is to passenger railway system, split the atom combine sustainable economic growth and started the IT revolution with the with the delivery of real local benefits to invention of the first computer with a the city’s residents, in terms of stored programme. employment and quality of life. The impact of globalisation and the new At its height, Manchester controlled 80% knowledge-based economy presents new 54
  • 56. challenges where traditional approaches increasing the number of people living to urban regeneration will not necessarily in the city centre from 600 in 1989 to ensure sustainable economic growth or more than 6,000 in 2000, with that social exclusion can be tackled associated leisure facilities effectively. Alongside a continued • Business tourism: with new hotels and commitment to physical regeneration, a new international exhibition and and the development of the new conference centre infrastructures required for the knowledge • Cultural facilities: the opening of the economy and the information society, new new international concert hall – the approaches need to be developed to Bridgewater Hall, the City Art Gallery connect opportunities with needs and Extension and the renovation of the re-engage excluded communities with Royal Exchange Theatre economic and civic life. • Our Sports City initiative where, in 2002, Manchester hosted the In response to this situation, the city is Commonwealth Games with a pursuing parallel economic strategies. The new national stadium, new city has seized the opportunity to national Velodrome and strengthen its position as the regional Swimming Centre capital of the North-West of England with new investment, including: The primary objective is to ensure that there is real benefit provided to local • Transport infrastructure: with the communities while, at the same time, continuing expansion of Manchester assisting the city to emerge as a key Airport and the extension of the new European Regional Centre which is able to Metrolink tram system attract and deliver investment and major • City-centre regeneration, particularly sporting and cultural events. The City following the impact of the terrorist Council has taken the lead in channelling bomb in June 1996 which destroyed resources towards area regeneration and part of the centre, and the local benefit strategies. These aim to development of a new retail core develop sustainable local economic including the world’s largest Marks & communities linked into the opportunities Spencer store provided by the regional centre. We also • New residential developments, both in need to be able to identify areas for the city centre itself and at the potential economic growth which will Castlefield industrial canal site, contribute positively to local employment 55
  • 57. Manchester opportunities and to social inclusion. It is There are also other challenges to face up here that ‘new’ industries, such as the arts to in terms of achieving our vision. Some and cultural industries and the are practical and not all are in our control. internet/New Media sector may have an We are, for example, in European terms important role to play in the structure of for example, a peripheral region and, the economy of the 21st century. because of this, transport links with the rest of the world are a key priority. This is Manchester's vision for the future partly why the airport is of such strategic importance but also why the upgrading of Manchester’s vision for the future, as rail links is essential to our future. expressed in its ‘City Pride’ Prospectus, is Manchester Airport has 95 airlines serving to be a European regional capital – centre 175 destinations and employs, directly and for investment growth, rather than indirectly, over 50,000 people. It continues regional aid, and an international city of to grow, serving over 18 million outstanding commercial, cultural and passengers a year since the second runway creative potential. The city will be an area opened in February 2001 and with distinguished by the quality of life and predicted sense of wellbeing enjoyed by its growth to over 40 million passengers in residents, where all will have the the next 15 years. opportunity to participate in and benefit from the investment and development of Sustaining economic growth and their city and, therefore, live in truly connecting the new opportunities thus sustainable communities. created with the needs of local people, many of whom face poverty and social Our aims and objectives also characterise exclusion, underpins all aspects of the what has become an increasingly city’s regeneration strategy. One of the sophisticated role played by the City biggest causes of poverty is Council. We continue to be a major unemployment and low-wage deliverer of services; and as an employment, and that is why job creation organisation employing over 20,000 is such a high priority. Where will the jobs people, with gross expenditure of some of the future be? Some traditional sectors, £1.4 billion, a significant player in the like construction, are key, while others, like local economy. Increasingly, however, our textiles, chemicals and engineering, will role has become that of coordinator and remain significant. But jobs that have been facilitator; that of bringing together lost from manufacturing in these sectors different public-sector organisations and are not likely to be replaced. Quantum- ensuring that they deliver services inspired electronic devices, convergent together in an integrated way, linking media technologies, nanotechnology, them with the communities they serve. biotechnology and other innovation-led The City Council also aims to provide developments can create a very leadership to develop shared visions and considerable number of jobs. Similarly, the the public/private/community partnerships region’s strengths in environmental that are required to deliver them. management are another key asset. The cleaning up of more than 100 years of 56
  • 58. Manchester industrial pollution regionally and Manchester has a significant and growing nationally in the UK, let alone the rest of level of employment in film, media, music, the world, is a massive task in itself and authorship, architecture and design and in will create many jobs. internet services. The largest enterprises are mainly in the field of television and Manchester will be concentrating on publishing. The most significant of these is creativity, innovation and technology but Granada TV, which is the UK’s largest we recognise that so too will many other private sector television company and part cities and regions in similar positions all of a large global enterprise. Manchester is over the world. This means that while the only regional city with a role in Manchester continues to highlight its national newspaper publication. Since the particular strengths, building upon 1950s’ Manchester has been at the textiles, computers, broadcasting, forefront of British pop and dance music, publishing and football, it is now looking ranging nowadays from the commercial forward to the new entrepreneurial spirit success of local bands like Simply Red and coming from the creative and cultural Oasis to the dynamic underground dance sectors, from its local universities and from scene that has sent Manchester-made the new enterprise partnerships that the music and DJs across the world. City Council is helping to facilitate. These new growth sectors are in the Manchester as a creative city position of maintaining their local position and competing for access into global There is a strong tradition of creativity, economies. The fastest growth is being pioneering and invention in Manchester. seen in the design-based sectors (fashion, This creativity is taking new forms and is buildings and products), which are less part of the experience of Manchester dominated by large enterprises because today: the conversion of redundant small businesses are more able to access warehouses by innovative property global market opportunities directly. developers and local architects into Recent research in the city has confirmed accommodation for design, software and that employment in the cultural industries multimedia companies; the clubs where in Manchester is significant and that it many of the UK’s leading music groups promises future growth. This is why we have emerged; the café bars and are trying to create one of the world’s restaurants fitted out by young designers. leading ‘post-industrial’ sustainable cities, Manchester is a seedbed of youth based on the new technologies and enterprise and creativity. The presence of industries of the future. Manchester is, not the universities is a major influence, and it for the first time, reinventing itself. is essential that the city should not only attract students but also provide Central to this is the need to accelerate opportunities for them to remain. Cultural the transition to a knowledge-based industries are important in their own right; economy by stimulating creativity and they are also a source of creative capital, innovation across the local and regional of ideas and communication, which is so economy. We need to be at the forefront vital to the future. of a cutting-edge digital culture, based on 57
  • 59. Manchester innovative business clusters and networks, City Council and the universities, which is which are uniquely capable of and the home for 50 companies employing necessary for sustaining growth within the 700 people. This will double in size over information society. In the UK, a recent the next three years. Added to this must Government report highlighted ten critical be Manchester's growing internet and success factors for cluster development, e-business success, the most rapid growth starting with the importance of a strong of any region outside London and the science base and including an South-east, where we have the only entrepreneurial culture, the ability to international Internet exchange outside attract key staff, effective networking and London, called ‘TeleCity’, which is also a supportive policy environment. based on the Science Park. Manchester making it – a Manchester’s first strategic report on new networked city in a networked technologies and regeneration appeared in global economy 1989 under the title of ‘Manchester – the Information City’, and more recently we The regeneration of Manchester is far have stressed Manchester’s focus both as from complete, but much has been a ‘creative city’ and a ‘digital city’. What is achieved in the past ten years. This has now clear from our experience is that only been possible through the these capacities are interdependent, and imaginative and dynamic partnerships that that to be a successful creative city you the City Council has been able to establish must be a digital city and vice versa. This with the private sector and the wider is why, in 1993, Manchester was one of six community. This idea of a networked city European cities that set up a new being essential for operating in the network, called TeleCities, which now has increasingly networked and global more than 150 cities involved in a trans- economy is central to our thinking. European network stretching from Iceland and Ireland in the west to Russia and A partnership approach to economic Romania in the east. development is particularly important in building the foundation of the knowledge- Creating a sustainable future for based industries of the future. They play a Manchester leading role in incubating new businesses, for example, where through the Campus The longterm vision for Manchester is Ventures agency, established as a based on achieving a thriving economy in partnership between the city and the three the industries of the future. To do this we local universities, 50 new companies need the research and educational employing 400 people have been facilities to keep us thriving and a established so far, with another 70 new population with the skills to maintain start-up businesses planning to spin out those industries. Key to this success is the over the next year. growth of the city centre’s population, from the current 6,000 to over 20,000, Alongside this is the Manchester Science and the sound infrastructure to support Park, another joint venture between the that population. The development of the 58
  • 60. Manchester e-commerce, e-government and Manchester is on the way to the internet/New Media sector in achieving the successful transition Manchester – the national policy from being the world’s first great context in the UK industrial city to one of the world’s leading post-industrial The UK Government has set out its ambition to make the UK the best place in success stories the world for e-business and e-commerce. At the same time it aims to make the UK a world leader in the electronic delivery of Manchester City region with its own public services: e-government. All public government, at the heart of social and bodies, including local government, have economic revival of the North-west, is also to ensure that 50% of services are vital, as is the country’s first fully delivered electronically by 2003 and that integrated public transport system, 100% of services will be capable of being building on our successful and expanding delivered in this way by 2005. Four key Light Rapid Rail Transport System – challenges have been highlighted, which Metrolink. Finally, we must ensure an need to be addressed before these improved quality of life and environment ambitions can be fully realised. We must in every part of the city. develop a world leading infrastructure with access for all, both in terms of Manchester is on the way to achieving the business and the wider community, and successful transition from being the ensure that the education and skill base is world’s first great industrial city to one of there to develop the workforce of the the world’s leading post-industrial success future. It’s also essential that we tackle the stories. Even then, the speed of economic ‘digital divide’, ensuring that the and social change will require that the city information society is fully inclusive and, continually finds new forms of dynamic finally, that we create a business-friendly urban management to ensure that this environment for e-commerce and success can be sustained. We believe that e-business to develop. only by adopting a holistic, creative and cooperative approach can we rise to the The UK Government has made strenuous challenge of the new global knowledge efforts to push forward the agenda with economy and information society. We the appointment of e-Minister together need to ensure that what makes with a national e-envoy. All government Manchester an increasingly attractive place departments are now required to produce in which to live, study and work can be e-business strategies and to set clear sustained in ways that will continue to targets for the delivery of e-government attract and develop creative talent, services. Priorities for local-national noteworthy events and lasting Government cooperation include forging opportunities for the people who do and closer links between local authorities and will make it their home. national government, increasing the use of e-commerce for public procurement and business-to-business transactions including 59
  • 61. Manchester digital signatures, promoting e-democracy The future is here, so what through improved Internet services for happens next? MPs and councillors, developing community-based networks and moving The city has recently established the towards electronic voting. Manchester Digital Development Agency to take forward new initiatives aimed at Manchester – from information making Manchester a world-class digital city to e-city city. By working with a wide range of partners in the universities, business and Manchester has a number of important the voluntary sector, the Development strengths as a leading location for Agency will ensure that projects internet/New Media investment, that across the city are coordinated and enable it to take a leading role in made sustainable. e-business and e-government developments. It has one of the best Whereas many of the drivers for infrastructures outside London in terms of e-government have come from the centre, telecommunications and R&D networks – Manchester’s approach has always been using the universities’ broadband supported by officers and representatives Metropolitan Area Network – ‘Net North at the local level, and, ultimately, this West’, with digital cable, ADSL and improves the chance of sustainability wireless broadband services. It has an through the ‘mainstreaming’ of services. extensive enterprise and incubation network – the North west Incubation Manchester’s aim of making ICT accessible Partnership – coordinated by Campus to all does not stop with the internet as it Ventures at the University of Manchester is now, but looks forward to the and linked into Manchester Science Park, development of new technologies and the new Manchester Science such as broadband and Wi-Fi and Enterprise Centre, based at UMIST mobile communications. (Institute of Science and Technology). Another strong point has been the By pulling together responsibility for the development of local community-based use of technology across business, initiatives such as the network of communities, education and local Electronic Village Halls (EVHs) and government, the city is building on its ICT community access centres together with legacy in ways that are innovative and the award-winning Manchester inclusive. Our experience has shown that Community Information Network (MCIN) businesses in the city require a skilled and and Innovation in Digital and Electronic technologically literate workforce, that Arts (IDEA), which is the largest online local government needs to use electronic access learning initiative in the UK. Lastly, methods to engage directly with all the partnership agencies supported by businesses and communities, and that the the City Council are committed to support city’s creative and entrepreneurial spirit the further growth of the internet/New benefits from the opportunities made Media and creative industry sectors available through new technologies. as a priority. 60
  • 62. Manchester information system, the Manchester Host, The city’s creative and with a not-for-profit company, Poptel. entrepeneurial spirit benefits from the opportunities made available This partnership resulted in Manchester through new technologies being one of the first local authorities in the UK to have an extensive website and the first to be an Internet Service Provider (ISP) through its partnership with Poptel. At the Digital Development Agency’s 2003 In 2000, a not-for-profit consortium led launch, there were representatives from by Poptel won the right to administer one community groups, businesses and the of the new high-level domain names for universities, alongside web designers and the internet on a global basis, with .coop. New Media developers. A specially made This means that Manchester, the original film for the event asked the question, home of ‘The Co-op’, is now the home to ‘What’s the trouble with technology?’ the worldwide administration of the on- highlighting a determination to see line ‘.coop’ of the future. Poptel is still technology as an enabler, rather than as the UK’s only employee-owned and an end in itself. A poem, written specially controlled ISP. for the event ended with the words: Manchester’s strategy is based on a ‘The future is here commitment to encourage partnerships So what happens next? across the city to provide the services When even your grandma required to ensure that both businesses Sends you a text.’1 and the wider community can take up the opportunities offered by the information In Manchester, at least, that is not likely to society and the new internet/New Media be a rarity, but an everyday occurrence. technologies. City Council supported initiatives include: Networking Manchester • Establishing local Electronic Village Manchester City Council has a long- Halls, community access and learning standing commitment to prioritising centres, where people can gain information and communication confidence, overcome their technologies as a key part of its economic technophobia and learn new skills and regeneration strategy for the city. The City where small businesses can get ‘hands- Council recognised this more than ten on’ experience of IT and the internet years ago, when it carried out the first • The setting up of the Manchester major review of its economic development Community Information Network strategy in 1989. Manchester was the first (MCIN) in 1994, which has since city in the UK to highlight this as a priority expanded to be one of the largest in its Economic Development Strategy in online community networks in the UK, 1991. In the same year Manchester available over the internet (and soon launched the UK’s first public-access via Digital TV) and through interactive computer communications and information points in libraries, health 1 The entire poem follows this essay. 61
  • 63. Manchester centres, advice centres and community of the most dynamic contributors to the buildings across the city – it has also development of the information society in just joined up with Radio Regen, Manchester are the three original EVHs – Manchester’s community radio training the Women’s EVH; Bangladesh House EVH, agency to launch the first internet whose work involves excluded community radio station for the city communities from many different ethnic • Developing partnerships with the local minorities; and Chorlton Workshop EVH, universities, particularly the Manchester based in one of the local churches, as well Metropolitan University (MMU), where as the trade union-based ‘Labour a wide range of business support Telematics Centre’ and the digital arts services are provided through a linked pioneers who established new digital arts set of centres and projects including: initiatives across the city. • The Manchester Technology Management Centre (MTMC) All of these groups demonstrate a social • The Manchester Multimedia Centre entrepreneurship which has historically • the Information Society Awareness – been largely untapped and ignored, yet ‘IS Aware’ – project which has a real potential to create new • The North-west New Media jobs and training opportunities and to Network, coordinated by the reconnect excluded communities to the Manchester Institute for Telematics benefits of the information society. This is and Employment Research, MITER, one of the most important challenges based at MMU facing this area of work: how to find ways • Supporting the arts and cultural of connecting these capacities across industries through a new business Manchester and the wider region and to support agency – the Creative develop new pathways into employment Industries Development Service (CIDS) – in these growth areas for society as a which provides advice, training and whole. This is the only way that we can support for business networking realise the critical mass of activity and • Coordinating events through the Digital participation required to achieve Summer/Inter:face festival which sustainability in the longer term. This is showcases cutting edge collaborations what Manchester is most committed to in between arts, science and technology terms of linked strategies for economic • Developing new community based regeneration and developing the broadband services, such as the information society. Eastserve community portal ( backed up with wireless broadband access for the local community In Manchester’s experience, those projects and initiatives supported by sections of the community facing social exclusion are often some of the most creative and innovative. It is no coincidence that some 62
  • 64. Manchester The Eastserve Project: wired up Through New Deal for Communities, and ready to go2 over 140 regeneration projects are completed or under way, helping the East Manchester is using new community get back on its feet. One of technology to turn its community into the most popular of these – taken up one of the most computer-literate in by around half the households in the the country, helping to drive the area and with around 1,000 ‘hits’ a regeneration of the whole area. day – is Eastserve, an interactive website. Raise your eyes above the rows and rows of terraced houses that make up ‘Connecting’ the neighbourhoods of many of the traditional streets of East Beswick, Clayton and Openshaw, Manchester and you will see the masts Eastserve is much more than an of the new Sportcity Stadium, pointing information service. It is helping to bravely upwards. promote many of the NDC objectives by drawing longterm unemployed Built for the very successful people into training and jobs, Commonwealth Games in 2002, the encouraging those who are without a stadium seems to symbolise the area’s bank account or credit rating to save, huge efforts to pull itself out of a and getting people who have been seemingly endless cycle of decline. hard to reach involved in new initiatives. There are signs that it may also be sparking improvements to key East Manchester has taken many public services. knocks over the decades, driven by successive losses of coal, steel and power industries and large parts of the Eastserve’s first aim was to provide manufacturing sector, particularly in residents with computers and internet the 1970s and 1980s. access. By March 2003, over 4,000 households had their own computer. Schools and other organisations are The resulting wide-scale also linked in. unemployment, often affecting several generations, has left its scars in the shape of heightened crime and The equipment is supplied by ITEM, a vandalism, poor-quality and local community enterprise that abandoned homes, wastelands of collects and recycles redundant empty spaces, as well as low computers and buys new ones in bulk educational achievement and to sell at a large discount. Many people poor health. still can’t afford the £200 to buy a new computer, and that’s where East Manchester Credit Union (EMCU) Today that picture is changing... the comes in. They arrange a loan, in the Industrial Revolution may be over, but process taking on new customers and a new IT revolution is just beginning. introducing them to the benefits of 2 This information is reproduced from an article by Sara Lovell in ‘Inclusion’ magazine, published by the Social Exclusion Unit in the Office of the Deputy Prime Minister. The Social Exclusion Unit cannot accept liability for any omissions or errors. The views expressed are not necessary those of the Social Exclusion Unit. (C) Crown Copyright 2003. 63
  • 65. Manchester saving. This has turned EMCU into the schoolchildren downloading their fastest growing credit union in the homework, to working out benefits country, with around 3,000 new using an online calculator. members via Eastserve. As a bonus, new jobs have been created to handle Much of the local information on the the huge demand. site is provided by a Residents’ Panel of journalists who also make decisions Everyone who buys a computer must about the site’s future direction. also take up a three-hour training course to learn how to use it. The Eastserve’s Website Manager, Daniel training, provided by Manchester Bainbridge, says: ‘Broadband can help College of Arts and Technology to develop individual projects on issues (MANCAT), may be their first learning such as crime, safety and health. For experience in a very long time, example, we are talking to the local providing a gateway to further training Primary Care Trust about video- and, for some people, into work. conferencing GP surgeries so that doctors can consult with patients Shirley Hughes, who was unemployed about minor problems online. There for 14 years, bought a reconditioned are wider implications too – we could computer for just £30, and with the improve consultation with help of training and support gained organisations such as the Greater new teaching and ICT qualifications, Manchester Police Authority, enabling enabling her to secure a job as a residents to influence policy.’ teacher with MANCAT. ‘It has been an amazing experience and my thirst for There have been a few initial stumbling knowledge is growing. I was pretty blocks during the development of much a novice at the start,’ says more interactive services with public Hughes, ‘but now I am confident in my services, in that some have been wary own ability. I am looking forward to of speaking directly to their customers providing other women with the via discussion forums and local chance to gain confidence and new businesses have been slower than computer skills at MANCAT.’ anticipated to get on board. Once people have the funding, The DFES will be carrying out a full hardware, training and back-up to get evaluation of the project, but NDC online, they can use Eastserve’s Regeneration Officer Lesley Spencer extensive website service, which is just believes that it has already contributed about to be launched on a wireless to the overall renewal of the area. broadband network, solely for the East ‘Eastserve has been very valuable in Manchester community. Broadband pushing things along and engaging costs less, and is more in tune with a services and local people faster than whole range of community uses – from would otherwise be possible. Having it ‘surgeries’ with service providers to 64
  • 66. Manchester developments in Manchester tied into training and the credit union has made it much more sustainable.’ MIDAS: The inward investment agency for Partner organisations such as Manchester Manchester. MIDAS is also managing the City Council are now starting to provide Commonwealth Games Economic Benefits some of their services online. Lesley adds: Legacy Programme ‘Service providers are keen to see how Eastserve can help them and to promote Marketing Manchester: themselves, but they also have to respond. They cannot just deliver services online in their existing format – they The tourism and promotional agency for are finding that they have to change Greater Manchester and improve them.’ Creative Industries Development How far the website can influence the Service quality of public services may be difficult to assess at this stage, but it has certainly CIDS: had a considerable impact on local people and on the NDC programme and it looks The business support agency for the arts like it is here to stay. Eastserve is confident and cultural industries sector that by the time its funding runs out in 2004, it will be an integral, self-standing North-west New Media Network part of the community. The regional network supporting the Key network contacts in development of the new media sector (see Manchester also MITER below) Manchester City Council: Manchester Community Information Network MCIN: The current website, for more details about the city’s work in the internet/New One of the first and now largest Media field contact the Economic community information networks in Initiatives Group (EIG) at the City Council the UK Manchester Digital Development MITER@MMU: Agency: The Manchester Institute for Telematics and Employment Research at the Manchester Metropolitan University The website of the Digital Development (MMU) has been developed from one of Agency articulating a vision for ICT the longest-running partnership initiatives 65
  • 67. Manchester in the city, established by the City Council THE FUTURE IS HERE and the MMU more than ten years ago. by Adrian Slatcher The key projects which are co-ordinated by the partnership: We once painted cave walls With berries crushed down, Digital Media – U: Made music with jawbones And horsehair we’d found. Scratched on slates, Made papyrus from reed, Digital Media Watch: Learnt ABC When we wanted to read Dipped quills in ink Further information on MITER from: To fill our long scrolls, Then bound up the pages Into books we could hold. IDEA – Innovation in Digital and We once filled whole rooms With adding machines, Electronic Arts: Abacus to spreadsheet Still counting out beans. Digital Summer/Inter:face - We used smoke signals And pigeons to send, Advance warnings of foes Or news to a friend. Telecities and the European Digital The email of the species Cities programme: Is quicker than the mail And our most hated words Are Abort-Retry-Fail. If the future is here Then think what comes next, When even your grandma Sends you a text. 66
  • 68. 67
  • 69. Hamburg Senator Gunnar Uldall, Minister for the Economy and Employment B roadband is a way to a digital broadband technology, is deployed. We quality of life. While an athlete’s now have approximately 200,000 DSL motto is ‘higher, faster, further’, connections in Hamburg, allowing the motto of the networked broadband access to many more people. society is ‘faster, further and broadband’. After you have tried the video-on-demand In addition, last year the Hamburg@work offering (as explained later), there really is initiative started the largest non- no going back. commercial WLAN project. Forty hot-spots throughout Hamburg will offer DSL-based To Hamburg, e-government means fast wireless internet access for everybody. and effective administrative services for citizens and local businesses. Public-sector As the so-called Gateway to the World, processes must keep pace with the the Free and Hanseatic City of Hamburg technological advances made by private sets the framework for all companies to be industry and consumers. As Hamburg is an successful on the base of a solid, future- open-minded trade and media city, as well oriented infrastructure. as a centre for the digital economy, we must drive e-government to provide the Finance department: best possible service to our customers, e-Government, IT infrastructure Hamburg’s citizens. for the administration1 In Hamburg there is intense competition The access to local services through the between carriers and service providers, internet is an additional way of which leads to a wide range of low-priced communicating with the administration in high quality services based on the Metro an effective and convenient way. There is a Ethernet infrastructure. Local providers wide range of offerings for citizens and offer bandwidths of up to 9.2 Mb/s. So businesses in our e-government road map. this is interesting even for businesses with high data traffic volume. For example, citizens who want to contact a government official may prepare DSL is also available throughout the city themselves online by finding the best and there is increasing demand from contact. They may also research the private households. Furthermore, relevant regulations and download all Hamburg is one of the first cities in necessary forms. Germany where UMTS, the latest mobile 68 1 This essay has been prepared by the Government of Hamburg
  • 70. The business service offers companies a element. The aggregated budget is held database with more than 100 online forms under the stewardship of the finance and links to contacts and other sources of department, which also holds information. Furthermore, Hamburg uses responsibility for e-government. Funds are the latest software for public tenders via then allocated from that single source. the internet. A committee – which also records, reviews Hamburg is currently implementing a and manages development spending – unique access point to our internet takes all IT investment decisions centrally. services – the Hamburg Gateway. You can Each agency wishing to establish an IT or use all administrative services with only e-government project has to make a case one user ID and password. Our goal is to for each project, develop its own save unnecessary travel and waiting time proposals and submit a business case into for our customers, while at the same time an applications databank. All projects are improving the quality of service with assessed in the same way for ROI and significantly less cost and complexity. cost savings. How it works Diether Schönfelder, Head of e-government for the City of Hamburg, For ten years, the City of Hamburg has explains: ‘Any department wanting to managed its IT infrastructure in a simple – establish an IT or e-government project and possibly unique – way, which has to make a specific case for that facilitates a unified and coherent IT project. Each business case is assessed so strategy. This budgetary mechanism that we can make decisions according to a provides focus and muscle to ensure that citywide view.’ all IT spending is planned and controlled from the centre, which virtually removes The system requires that each project must the possibility of duplication, state how and when the investment will incompatibility and waste. be paid back. If a proposal is not considered sound and is not in line with There are no Hamburg local government Hamburg’s overall e-government strategy agencies with discrete IT budgets. Before and IT standards, it will not proceed. any money is allocated to departments Annual reviews are held and, occasionally, such as justice, finance or internal affairs, projects have been terminated as a result there is a mechanism that removes the IT of technology problems or lack of success 69
  • 71. Hamburg according to the city’s criteria. ‘Every the areas served by Hamburg. From the project,’ says Schönfelder, ‘has to be a start of 2004, the single business will run win-win: this means that it must provide services for two adjoining councils, and citizens with a better service and save the offer services further afield, to provinces city money.’ and small cities to the north of the region. Only sound projects that fit with overall There are two key projects for the citizens city and regional strategy are permitted of Hamburg and her neighbours as to proceed. This budget mechanism explained by Jörn Riedel, Head of Network has also been responsible for introducing Architecture and IT for the City of a healthy element of competition Hamburg. ‘The internet platform has gone between the various agencies in their from strength to strength during the last pursuit of IT funding, cost-cutting and six years and now supports the second improving service. biggest website in Germany, with over ten million page views per month.’ This Germany’s federal system can lead to website is run as a public/private duplication of resources in bordering partnership and reflects all the activities of states: Hamburg, however, has the city including the booking of theatre sidestepped the issue by extending its tickets and hotel rooms, as well as e-government domain bilaterally across administrative services. the neighbouring states of Schleswig- Holstein and Niedersachsen. The second project is the Hamburg Gateway. ‘This,’ says Riedel, ‘will provide Collaboration across the region benefits the connectivity for all transactions with citizens, particularly those who travel daily our citizens and our commercial customers into the city and have no time to visit their as well.’ Online public information services local office. Early next year, commuters are already hugely successful. The most into the city will be able to log into the used, with up to 750,000 hits per month, Hamburg office to transact their own helps people get the services they need. council business during their working day. Once a query has been input, a page This is enabled by a secure network using comes up with the nearest office that XML, which allows information to be deals with the matter, its opening times, shared and data to be input in one the requisite forms and information on the location – in Hamburg – and processed in public transport that will take the citizen another, their local office. to that office. Other well used services are the online ordering of birth certificates, The merging of the IT provider for new passports and special voting forms Hamburg with that of Schleswig-Holstein for voters away from home. will bring economies of scale. These are publicly-owned companies organised as Diether Schönfelder is convinced of the stand-alone businesses with their own value of getting the e-government budgeting and accounting systems, message across to customers and to providing services for private companies as partner organisations alike. ‘Number of well as managing the infrastructure for users is what counts for us, not number of 70
  • 72. Hamburg road, up to 16 copies of the request must Western democracies have be sent to interested parties like cable deliberated long and hard on the companies, building contractors and other vital task of providing access to public services. Soon the utility or builder government services to all citizens will only have to register once to receive messages electronically. while maintaining levels of security and confidentiality The benefits of websites and online transactions can be measured in many ways: in Hamburg this is done by usage services. e-government must not be and by the savings made. But Diether esoteric: access has to be simple. Our e- Schönfelder emphasised that in Hamburg: government strategy and what we offer ‘The “electronification” of services is are designed to make it that way.’ always accompanied by improvement in business processes, so that further But while Schönfelder believes that financial benefits are derived from simplicity of access to electronic services is these as well as from the transfer of all important to their quick take-up, he is systems online.’ well aware that it will take time for electronic routes to take over. Traditional Economy department: broadband, methods of access – letters, telephone SP competition, economic calls to the developing Citizen Contact development Centre and visits to the local office – are all still in place and being updated so that As a result of the commitment to whichever access method is used by e-government, Hamburg is focusing on business or by individuals, there will be no new technologies including the ongoing doubling-up of data input; the same development of broadband. The electronically supported business processes implementation of a modern technical will be used throughout. Hamburg is also infrastructure for effective e-government planning the online management of has been under way for several years with municipal grants. An example of this the administration network of 30,000 PCs, would be the administration required a standardised communication when a claim is made by a charitable infrastructure and secure online access at institution such as a church, for the its heart. running of a kindergarten. The church is entitled to reclaim some of the costs, but Western democracies have deliberated in staggered payments, and only once long and hard on the vital task of receipts have been provided. The process providing access to government services will be quicker and easier online and will to all their citizens while simultaneously no longer require piles of paperwork. maintaining appropriate levels of security and confidentiality. The endorsement of Another simplified process will deal with digital certificates by the European permissions. Currently, when a public Parliament has led many federal German utility requests permission to dig up a authorities to insist on their use online, 71
  • 73. Hamburg in all cases where a handwritten services will be up and running shortly signature would otherwise be required. once relevant legislation has been passed But the digital certificate is not commonly by the Department of the Interior. used by individuals (fewer than one per cent of Hamburg citizens), or indeed by The new Hamburg Gateway, using a many businesses, and there are problems similar model to the Government Gateway with compatibility of systems from in the UK, will provide connectivity for different suppliers. citizens and commercial customers for all transactions through a single interface. Having analysed practices across Europe Jörn Riedel explains: ‘Four or five hundred and examined the UK model, Hamburg software applications run on the back end managers found that digital certificates systems, and data shared across the are not mandatory, provided there is a infrastructure will be translated to provide single secure gateway to government the view seen by the user. This will share websites, and that once a stringent an underlying functionality so that process of authorisation has taken place, a features can be accessed in the same digital signature is not required to way with a similar look and feel for ease undertake e-government transactions. of use.’ Now Hamburg is adopting a process Companies use the broadband service similar to that used when a client opens a mainly for fast data transfer and real-time bank account. To access those more secure connectivity. The media and logistics areas of the Government intranet in order industries, including the harbour, are good to, for example, make payments for e- examples of industries in our diverse government services, a citizen completes economic landscape that have a strong an application form and sends it to the demand for broadband. In the private council. The council sends authentication sector, a local service provider has started data, password and ID to a local office. To an innovative video-on-demand service collect the data that will enable that has set the ball rolling for vod transactions to be made online, citizens services all over Germany. visit that office to show their faces and a personal ID card or passport. They then Take the example of mobile radio receive authentication data and it is their technology via UMTS: the combination of responsibility to keep it secure. mobility and broadband is a high technology base for the development of This data is entered just like a normal innovative services, and therefore new login process with a user code and market opportunities. Consequently, password. The data includes address and driving the adoption of these technologies other personal details that can make it will also have a positive impact on the more useful, and arguably more secure numerous Hamburg-based IT and Telco than those digital certificates with single companies. With the variety of mobile fields. Once the citizen is signed up, all business applications used, they are services can be accessed and transactions already among the pioneers in that made. The gateway to the government sector in Germany. 72
  • 74. Hamburg All services that Hamburg provides will be available electronically. Once an account has been established, all data made available is on that account. If a user accepts a service, and a result cannot be provided online immediately, the user can logout and will later be sent an email. They can then return to find the result of the query, or the completion of the transaction. Senator Uldall summarises: ‘Hamburg works as a team so that everything goes easier and faster – especially with broadband.’ 73
  • 75. Hillingdon - a case study How to create the Business Case Pacey Cheales, Corporate Programme Manager for the Hillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council The local strategic Services department. planning context London Borough of Hillingdon: for modernisation Hillingdon is London’s second largest Introduction unitary borough – covering 42 square miles of west London from Harefield in Each local authority will have its own the north to Heathrow airport in the drivers for modernisation. Whether south. Located 14 miles from central responding to national or local priorities, London Hillingdon shares its boundaries the modernisation of service delivery with neighbouring west London boroughs through e-government is a common factor and the counties of Hertfordshire, in community plans, best value Buckinghamshire and Surrey. performance plans and service specific plans. The borough is home to 250,000 people Hillingdon’s business case for from diverse backgrounds. BAME (black, modernisation work does not try to Asian and minority ethnic) communities establish a definitive set of modernisation currently comprise 19% of the population drivers applicable to all local authorities. – this figure is expected to rise to 25% by However, the detailed analysis carried out the end of the decade. Hillingdon includes by Hillingdon’s Housing Service the world’s busiest international airport at highlighted the importance of answering Heathrow and the main campus for the question ‘What are the drivers for Brunel University. modernising the service?’. The answer to this important question is for each local Housing Services: authority to determine based on its own circumstances. Hillingdon council’s Housing Service provides a comprehensive range of Strategic planing context for housing-related services to all tenures in modernisation – London borough the local community. The department’s of Hillingdon and housing services strategic priorities and operational activities are focused on positively To place the more detailed aspects of contributing to the borough’s Community Hillingdon’s modernisation work in Plan in the following areas: context, this section provides a thumbnail sketch of the council and its Housing 74
  • 76. COMMUNITY PLAN AIM HOUSING’S STRATEGIC OBJECTIVE A HEALTHIER BOROUGH Improve services for older people and promote independent living for vulnerable tenants A SAFER BOROUGH Work with the police and others to reduce crime, anti-social behaviour, domestic violence and racial harassment AN ECONOMICALLY PROSPEROUS Increase the supply of housing for low BOROUGH income and key worker households A CLEANER AND MORE PLEASANT Satisfy basic needs for warm homes and BOROUGH safe streets and improve conditions in the private sector A BOROUGH WHERE OPPORTUNITIES ARE Focus resources on excluded groups, reduce OPEN TO ALL homelessness and ensure equality for all service users A BOROUGH THAT ENCOURAGES LIFELONG Provide training opportunities for council LEARNING tenants and people living in temporary accommodation Within this strategic context the £18,500,000 operational scope of Hillingdon’s Housing • Provision of 23 sheltered housing Service is illustrated by highlighting the schemes providing independent living operational services delivered by the accommodation for 925 elderly and department’s 520 directly employed staff vulnerable members of the community and its other partners: • 18-month, £27,000,000 capital programme to supply 230 new • Landlord for more than 11,500 affordable homes tenancies and 1,500 leaseholders – collecting rent and service charges Drivers for modernisation: valued in excess of £45,000,000 per annum This local context helped Housing Services • Administering housing and related identify the following objectives for benefits valued in excess of modernising the service: £70,000,000 per annum to 18,500 new and existing service users • National and local government policy • Annual planned maintenance and day- agenda re: BV157 and wider Best to-day repairs investment in council Value regime housing stock valued in excess of • Generate cost/productivity gains, 75
  • 77. Hillingdon – a case study: how to create the business case demonstrate willingness to positively Building the Modernisation scrutinise costs and working methods Business Case • Socially inclusive e-delivery, ensuring potentially excluded groups had access There follows a brief explanation of to digital delivery channels Hillingdon’s process, as well as the key • Work-Life-Balance aspirations, strive to outcomes from the Housing department’s be an employer of choice in a modernisation business case: competitive labour market • Meeting citizen expectations, ensuring a positive response to evidence from citizen panel of awareness and desire Step 1 to transact electronically Benefit identification • Improving accessibility to services, Identify the benefits modernisation using online facilities and new working needs to deliver for your organisation arrangements to establish more flexible pathways into services Step 2 The modernisation diagnostic Identifying these objectives at an early Identify the opportunities and risks of stage was productive as they focused modernising working practices, Housing Service’s attention on the benefits e-delivery and citizen contact that had to be delivered by modernisation. Step 3 Reality check Building the Review the diagnostic outcome modernisation against the benefits required business case Step 4 Introduction Completing the business case Develop a costed ROI on all or selected Having identified the most important priority elements of the diagnostic ‘drivers’ for modernisation, the core of Hillingdon’s work focused on building the Step 5 business case for modernisation. The Prioritising the business case business case emerged over time and was Evaluate the business case using refined through an iterative process. agreed prioritisation criteria to assist Having completed the process Hillingdon’s resource allocation decision-making experience suggests there are five steps (This step is not relevant to the main involved in building the modernisation focus of this paper and is not business case. reported in here) 76
  • 78. Hillingdon – a case study: how to create the business case the first instance as the benefits from Step 1: modernisation can be unexpected Benefit identification and diverse. INTRODUCTION • Third, a practical categorisation system was used to map each ‘long list’ Each local authority’s strategic and benefit against one of three operational context will create the broad groupings: framework in which the modernisation business case is built. In building any • Red benefits – are those that will business case the importance of (when delivered) realise hard establishing the anticipated benefits tangible cost savings, eg reduced of a particular initiative at the outset premises costs or savings in if self-evident. procurement costs. In the case of modernisation the • Orange benefits – are productivity anticipated benefits will be relevant to improvements in terms of employee each council’s circumstances. time saved, eg from web-enabled Consequently, Hillingdon’s work is not citizen self-service. These types presented as a definitive list of benefits for of benefit require proactive modernisation. Instead the experience management to be realised. gained from Hillingdon’s approach They can either be banked as may assist other councils faced by financial savings or alternatively similar challenges. used as ‘free’ resources to be reallocated elsewhere. BENEFIT IDENTIFICATION – LONDON BOROUGH OF HILLINGDON • Green benefits – are those benefits that cannot be converted with any Hillingdon’s process of benefit degree of reliability into cash or identification was as follows: productivity gains, eg, building organisational capacity or raising • First, the benefits associated with the council’s profile with modernisation were explicitly defined. key stakeholders. Hillingdon found it helpful to identify a number of broad target groups as When this process was complete, a set of potential beneficiaries of desired red, orange and green modernisation: modernisation benefits were identified • Citizen and community by Hillingdon: • Employees • Service providers • External stakeholder • Second, a ‘long list’ of benefits was developed. Nothing was ruled out in 77
  • 79. Hillingdon – a case study: how to create the business case Potential red hard cost benefits Reduced premises costs – savings on officer accommodation Reduced ICT costs – reduced connectivity as accommodation declines Flexible working methods – simplified terms and conditions Recruitment costs – reduced turnover, declining advertising costs Restructuring – potential increased spans of control Reduced facilities management costs – reduced premises numbers Cheaper, faster procurement – enabled by b2b online procurement Reduced postage costs – channel swapping from manual post to email Potential orange time and/or productivity benefits which may be converted to cash or redirected elsewhere Reduce commuting time – flexible working reduces commute frequency Greater productivity – increased staff motivation from flexible working Better use of specialists – focus on value-added tasks, via job redesign Reduced staff turnover – improved work-life-balance Access to electronic information – greater efficiency in data-handling Single point of contact – reducing resource duplication Standardisation of response – via call-scripting, reduced transaction costs Online forms/transactions – citizen self-service and channel-swapping Tracking/data management – enhanced performance-monitoring Disintermediation of third party – simplify supply chains Regional/subregional economies of scale – west London mechanisms 78
  • 80. Hillingdon – a case study: how to create the business case Potential green intangible benefits, not reasonably converted to a financial value Community leadership – major local employer embracing information age Reputation – as a forward-looking organisation Closeness to citizen – better understand needs and more responsive Social inclusion – use digital technology to promote inclusion Identify and respond to trends – via improved data capture and management Citizen empowerment – via digital self-service and engagement Meeting citizen e-expectations – surveys indicate citizen readiness/desire Faster turnaround time for the citizen – self-service, single point of contact Ability to attract funds – improved reputation helps attract resources Attracting partners – private sector attracted to local authority exemplars Quality of service – reduced cost, faster services that meet citizen needs Improved work-life-balance – for staff involved in modernisation Staff motivation – improved by modernised flexible working Openness to innovation – building future capability and capacity Project image of modernity to stakeholders – innovator to work with Greater employee responsibility – cultural change via modernised working Output/outcome based management – performance orientated focus Service accessibility – better meeting statutory duties Regional/sub-regional good practice – being an exemplar for peer authorities The process of benefit identification resulted in a matrix that combined both benefit categories and target groups shown below: Benefit, target group matrix: TARGET BENEFIT CATEGORIES GROUPS RED ORANGE GREEN Citizen and Disintermediation Socially inclusive community Employees Reduce commute Staff motivation time & turnover Service Reduce premises & Greater Service accessibility, providers recruitment costs productivity staff motivation and meeting citizen e-expectations External Subregional Meeting citizen stakeholder s economies of scale e-expectations 79
  • 81. Hillingdon – a case study: how to create the business case By identifying the benefits of communications technologies to modernisation at the outset of the change the organisation business case Hillingdon found: • Sensitive to the human resource benefits, implications and risks of • It focused attention on the benefits deploying and sustaining most relevant to the organisation. modernisation • It established a set of benefits that the modernisation diagnostic would be However, the diagnostic was relatively assessed against, and, finally, time-consuming to apply, required data • It helped address the question of where preparation beforehand and a fair amount to apply the modernisation diagnostic – of quantitative and qualitative analysis which is explained further in step 2. afterwards. Scoping the modernisation diagnostic: Step 2: The modernisation Hillingdon decided to carry out all three diagnostic elements of diagnostic across the Housing Service. An alternative would have been to INTRODUCTION focus a single part of the diagnostic on a wider range of service function, eg The objective of the Hillingdon’s applying the modernised working modernisation diagnostic was to identify diagnostic to staff who work in major civic the opportunities, benefits and risks buildings or all peripatetic staff. associated with deploying digital communication technologies to: Clearly there is a continuum of scoping options available, and each council will 1. Modernise working practices determine what’s best for its own 2. E-enable service delivery circumstances. For example, if cost 3. Improve citizen contact management improvements were a priority, applying the modernised working element of the diagnostic would be most relevant. The diagnostic was characterised Whereas if identifying services to be as follows: e-enabled to meet BVPI157 was of particular significance then the e-services • A set of pre-determined questions part of the diagnostic would be used. applied systematically • Service-based approach that focused on Hillingdon’s experience was that reviewing the experience and judgement of the benefits identified (during step 1) service managers helped scope the application of the • Scaleable management tool applied diagnostic. both to relatively small staff groups of half a dozen as well as service teams of more than staff • Conscious of the capabilities presented by the internet and other digital 80
  • 82. Hillingdon – a case study: how to create the business case BREADTH OF MODERNISATION Modernised e-Service Citizen Contact Few Service Functions Working Delivery Management More Service Functions Diagnostic scoping matrix modernised working. The following sections summarise each Opportunities for modernised working element of modernisation diagnostic and set out the opportunities and risks The objective was to work with service identified when it was applied to the managers to identify opportunities to Housing Service. utilise a range of modernised working arrangements in Housing Services, THE MODERNISED WORKING including: DIAGNOSTIC – HOUSING SERVICES • Mobile working The broad objective was to work with • Teleworking service managers to identify the • Hot desk modernised working opportunities to modernise the way arrangements Housing Service’s 500 staff work. • Extended service availability Particular attention was paid to how • Increased use of flexible working mobile and teleworking could be utilised in parallel with more flexible The investigation highlighted the job working policies and electronic functions that best lent themselves to document management (EDM) to modernised working, as well as the enable modernised working. numbers and proportions of FTE's involved. Teleworking functions were The importance of effectively managing defined as non-public contact back-office human resource (HR) issues to deliver activities that supported front-line delivery, modernised working was recognised as eg client casework, project preparation, being central to the entire modernisation write-up/preparation for inspections/visits agenda. Consequently priority was etc. High-volume telephone public contact given to identifying the important HR work was excluded from the teleworking policy, organisational and staff category. The view was taken that initially competencies associated with deploying employees should not be isolated at home 81
  • 83. Hillingdon – a case study: how to create the business case dealing with potentially irate telephone Similar to other organisations, Hillingdon calls in virtual contact centres. Mobile recognised that pursuing opportunities for working was defined as any functions modernised working would require hot requiring regular, dedicated time away desk/touchdown facilities being from a civic office, whether to deliver substituted for existing dedicated work services to the community, inspect desks. This in turn could leverage the properties or meet with external partners. opportunity for space savings, more efficient use of assets and associated Service managers also highlighted how reductions in accommodation costs. The they thought their team(s) would respond potential impact on office accommodation to the implementation of modernised pre- and post-modernised working in working. The modernised working Housing Services is summarised in the diagnostic identified the following: table below:  Estimate of 295 or 70% of the total Indications were that a reduction of workforce was potentially suitable for approximately 50% in the number of mobile working and/or teleworking for work desks could be achieved post- between 2 – 4 days per week. modernisation – when compared with the number used in mid-2001. However,  Consequently, that 295 staff could the overall space reduction (and cost move from a dedicated work desk in reduction) could be greater if modernised a civic building to a hot-desking/ working was deployed in parallel with touchdown facility. EDM, as the latter could further reduce the office space required to store manual data. Location CURRENT Opportunities Hot desks on Balance needing MODERNISED (headcount) WORKDESKS For mobile, 1:3-1:4 ratio 1:1 desk ratio WORKDESKS Teleworking Civic Centre 265 183 45-61 82 127-143 Area Housing 154 112 28-37 42 70-79 Offices x 4 TOTAL 419 295 73-98 124 197-222 82
  • 84. Hillingdon – a case study: how to create the business case Opportunities for flexible working: 6 days in 7 by working Saturday mornings The objective was to identify the  Flexible weekly hours within a banded preferences of service managers for upper and lower limit was not promoting the use of flexible working supported in general as this would arrangements to support the make resource planning too difficult implementation of modernised working.  Annualised and compressed hours were seen as offering potential benefits to Service managers were asked to evaluate service delivery and resource planning the potential benefits of deploying a number of flexible working arrangements,  Pre-set annual leave, ie prohibiting including: leave at certain times, smoothing leave throughout the year or use of • Changes to the start and end of the ‘closedown’ periods were seen as working day, ie 8am – 8pm offering potential benefits, particularly • Service availability each week, ie 6 or 7 where there were cyclical peaks day working in workload • Application of flexi-days • Flexible weekly hours within a banded  Common theme to emerge was the upper and lower limit. continued relevance of core/fixed • Annualised hours, eg working standard working hours to teleworkers. Service pattern/hours during specified periods – managers broadly took the view that leaving other periods when the so long as work was carried out to employee does not attend work. agreed levels working time could be • Compressed hours – eg, the ability to credited on a 24/7 basis either work agreed annual hours in a shorter period (at flat rate) or to work Opportunities to utilise HR to support above contracted hours (at flat rate). modernised working: In both cases above the 36 hours national conditions The objective was to identify: • Pre-set annual leave arrangements, ie prohibiting leave at certain • The HR policy priorities that service times, smoothing leave throughout managers believed were needed for entire leave year and the use of modernised working to be ‘closedown’ periods. effectively deployed • To highlight the ‘softer’ less The options were discussed with service tangible organisational risks that managers and a number of priorities threatened the effective delivery of consistently emerged across the modernised working Housing Service: • The competencies (knowledge, skill and behaviour) that service managers  Preference to extend both the start and believed were most necessary for their end of the working day (ie, to 8am- staff and managers to deliver 8pm) and extend service availability to modernised working 83
  • 85. Hillingdon – a case study: how to create the business case This part of the analysis identified a Opportunities for electronic data number of consistent perceptions and management (EDM) to support messages from service managers: modernised Working:  The priority was for HR to develop an The objective was to identify the data that effective policy response to teleworking needed to be available electronically to (including health and safety issues), support modernised mobile and/or managing the performance of teleworkers. geographically dispersed teams and resolving the contractual issues Service managers identified the manual associated with modernised working and electronic data requirements for each function previously earmarked as being  Potential threats to modernised potentially suitable for modernised working identified by service managers working. The following results emerged: included focusing on ICT at the expense of human factors (eg maintaining team • Confirmation of the value of Housing’s identity and culture despite geographic previous ICT investments in an dispersal), ineffective performance integrated housing management management of dispersed teams, system and the deployment of ‘thin’ (management concerns that ‘I can’t client technology across Housing’s manage what I can’t see’) and 430 user base in 2001. Both were seen managing the uncertainty created for as providing foundations for future both managers and employees by web based applications and new modernised working working methods • Broad categories of data needed to  Common competencies for employees support modernised working were and managers necessary to sustain highlighted as information hubs for modernised working included: a number of modernised working practices: • Self-learning • Professionally up to date • Tenant files (people based data) • ICT self sufficient • Client case files (Benefits, Emergency • Increased health and safety and Housing, Private Sector, Sales etc) equalities awareness • Property files (capital programme • Customer focused project data, property related, ie • Personally accountable and estates, sheltered and hostels) organised • Mobile data requirements for • Flexible and having good employees, particularly for staff colleague relationships involved in site inspections/visits. These offered opportunities for productivity gains by enabling remote access to back office databases (either read only or to update online) 84
  • 86. Hillingdon – a case study: how to create the business case • Service specific and generic Flexible working preferences: policy/technical/professional guidance (ie health and safety etc) 1. How to manage the potential tensions between the needs of the service and Risks and issues raised by the employees’ desire for an improved modernised working diagnostic work-life-balance? The opportunities presented by greater flexible working Completing the modernised working could allow employees to develop a element of the diagnostic raised a number work-life-balance suitable to their of issues and risks for Housing Services to personal circumstances. However consider: service need to take precedence. A solution being considered is to Modernised working: develop a ‘menu’ of flexible working options that managers and employees can select from to ensure service 1. How to effectively manage the needs are met. reduction in dual purpose building 2. How to manage the resource assets – ie those that contain both implications of extending total hours of office space and face-to-face public service delivery and availability? The key contact facilities? factor is likely to be the impact of 2. What happens to office accommodation modernised working on aggregate post-modernised working? Is the demand for services. Where demand remaining office space rationalised (ie remains unchanged despite increased close down), consolidated (ie merged) service availability (ie total demand is or centralised? spread more thinly), the priority will be 3. Where and how will future face-to-face to reorganise existing resources to cover contact with the community be the extended hours of service conducted after the accommodation availability. Where aggregate demand portfolio has contracted post- expands in line with increased service modernised working? availability, additional resources will be needed unless modernised working Housing Services’ approach to the delivers offsetting productivity gains. sensitive and complex issue of face-to-face 3. How to reconcile the need for public contact was to seek the increased flexible local community’s views via a citizen survey. employment practices with local The options being evaluated are to government’s national employment increase the use of home appointments conditions framework? Hillingdon’s (where safe to do so), develop single approach has been to seek a negotiated delivery points for face-to-face contact provision of flexible working through ie at centralised or consolidated office the council’s existing single table locations or develop surgeries/drop-in harmonisation machinery. facilities located at community facilities ie hospitals, GP surgeries, other council premises – libraries, or shopping centre etc. 85
  • 87. Hillingdon – a case study: how to create the business case Human Resource priorities design? Throughout Housing Services staff multi-task, performing front and Some of the most important questions back office tasks at different times as posed by the modernisation agenda were well as desk-based and mobile working. highlighted at this stage: Productivity gains could be achieved by specialising and consolidating 1. Is the implementation of modernised tasks at particular times. Indeed, this working (particularly teleworking, is likely to be a prerequisite for mobile working and changes to service modernised working as tasks suitable availability) mandatory or voluntary? If for tele and mobile working will have mandatory, does it apply to existing to be consolidated into continuous and/or new employees, or will working periods. implementation be phased over time? There are a range of factors to be Electronic document management: considered, particularly social exclusion, health and safety, and issues where 1. The EDM aspects of the diagnostic employees do not have suitable raised the question of how to domestic accommodation to support effectively manage existing manual teleworking. There is also the clear issue data? Consideration needs to be given of personal choice: some people want to data protection, client confidentiality to go to their employer’s place of work and possible Human Rights Act and do not want to remain at home. implications. In addition, the practical However, this needs to be carefully consideration that widescale balanced against potential cost and modernised working is not sustainable productivity gains that may accrue from if mobile and teleworkers are reductions in accommodation costs, transporting large amounts of manual improved productivity and enhanced data between different places of work service quality resulting from needs to be addressed. modernised working. 2. Are managers and colleagues Housing’s objective is that to support competent (knowledge, skills and modernised working, data needs to be behaviour) to operate effectively in available electronically via the council’s ICT a post-modernised working network – and that the data is accessible environment? The greater degree to remote staff 24/7 without the need for of personal responsibility and confidential citizen or commercial data accountability, professional discretion, being hosted/stored outside the council’s lone working, often accompanied secure ‘firewall’. by more direct contact with the community may not motivate all existing staff. What will the employer’s response be in these circumstances? 3. What is the impact of modernised working on established forms of job 86
  • 88. Hillingdon – a case study: how to create the business case CITIZEN CONTACT DIAGNOSTIC – Preferred service delivery and HOUSING SERVICES communications channels: The context for this element of diagnostic The objective was to work with service was the recognition that digital managers to identify and categorise communication technologies were service delivery using two criteria. First, creating new opportunities in the the channel used (for both inbound and management of citizen contact. In North outbound communications) and second, America and the EU, large public and the qualitative nature of the service private sector organisations are relationship between Housing and progressing beyond telephony based call the citizen. centres and towards multi-channel contact centres. These changes in channel • Channels were categorised as management have been giving greater face- to-face, telephone, letter, focus by the emergence of customer (or email or fax citizen) relationship management (CRM) • Service relationships were software applications being marketed for qualitatively categorised as either: use in the UK public sector. • ‘Tell Me’ – where there was a relatively simple exchange of Consequently, the objective of this part of information that was not necessarily the diagnostic was to understand the client-specific. nature of Housing Services contact with its • ‘Help Me’ – where further community and the channel preferences assistance/enquiry was needed and for this contact. This information would related to the specific circumstances help determine how citizen contact could of the citizen. deliver higher quality service outcomes for • “Relate To Me” - where the specific the community and leverage potential communication or transaction was, in economies of scale for the council by almost all cases, part of a longer deploying: term, more complex relationship between the council and citizen. • Multi-channel contact centre(s) • Consolidated handling of Service managers estimated current generic enquiries volumes of interactions with the • A single point of contact community for each channel – and for citizens characterised the nature of the • Improved service accessibility through relationship as either ‘tell’, ‘help’ or 24/7 online information ‘relate to me’. • Citizen self service 87
  • 89. Hillingdon – a case study: how to create the business case Total inbound communication was characterised as follows: Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 29% 49% 16% 4% 2% 100% 29% ‘Help me’ 39% 44% 12% 4% 1% 100% 38% ‘Relate to me’ 36% 49% 11% 3% 1% 100% 33% TOTAL 35% 47% 13% 4% 1% 100% 100% Analysis of inbound communication identified that:  The reasons why citizens’ contact with Housing were in broad terms equally split between ‘tell’, ‘help’ and ‘relate’ – in other words more than two in three contacts were seeking some form of generic information/general help with a specific problem.  In line with other research the telephone was the preferred channel for inbound communication, although not unsurprisingly face-to-face contact increases in preference for more complex/sensitive service contact(s). It was of interest to note that one in six inbound communication remained in writing, either manual or electronic. Total outbound communication was characterised as follows: Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 23% 50% 23% 3% 1% 100% 27% ‘Help me’ 34% 43% 19% 3% 1% 100% 39% ‘Relate to me’ 40% 33% 23% 3% 1% 100% 34% TOTAL 33% 42% 21% 3% 1% 100% 100% 88
  • 90. Hillingdon – a case study: how to create the business case Analysis of outbound communication Risks and issues raised by the citizen identified that: contact diagnostic  The reasons why Housing Services’ Completing this element of the diagnostic contacted citizens appeared to be highlighted a number of important risks similar to the inbound analysis, namely, and issues for Housing Services: equally split between ‘tell’, ‘help’ and ‘relate’ interactions. This suggested that 1. The importance of developing a two in three outbound transactions thorough citizen contact strategy – were related to an exchange of setting out how first line citizen contact information or providing general help will be managed on a channel-by- to the citizen. channel basis. Housing Services’ preferred approach is to consolidate the  Housing’s preferred channel for handling of the 65% ‘tell me’ and outbound communication was also the ‘help me’ transactions in a contact telephone. However, face-to-face centre – while retaining specialist teams communication was preferred for the to manage the 35% of complex ‘relate more sensitive and complex ‘relate to to me’ interactions. me’ interactions. It was noted that one 2. The citizen contact strategy will need to in four outbound transactions was address sensitive organisational issues. undertaken in writing – the vast For example, which forms of citizen majority undertaking in writing and contact are best managed on a council posted to the recipient. wide basis and which are best managed by individual services? Hillingdon’s In overall terms this analysis suggested a corporate approach has been to number of priorities for Housing Services: simultaneously participate in a Pathfinder CRM project, pilot a contact • The need to develop online citizen centre in a discreet service area while self-service for the 65% of total prioritising services that could be communication which was either located in a council-wide contact centre exchanging data (‘tell me’) or providing in the future. general advice to the citizen (‘help me’) 3. At an organisational level a key • Seek to digitise (email etc’) written question was whether Housing communication that for legal or other possessed the specialist skills to manage reasons needs to be retained effectively the high volume of ‘tell me’ and ‘help me’ transactions. The deployment of a contact centre would require people with specialist customer (citizen) service and management competencies. This would represent a potential threat to existing back office and public contact staff who may possess different competencies. 89
  • 91. Hillingdon – a case study: how to create the business case E-SERVICES DIAGNOSTIC – government agency or voluntary sector. HOUSING SERVICES There were examples where the council acted as an intermediary between the The context for this part of the diagnostic citizen and third parties. The diagnostic was central government’s information-age challenged the council to review society agenda and the specific e-services whether this intermediary role added performance measure BVPI157. Moving value or whether direct access between beyond the work required for BVPI157, the citizen and third party should Housing Services considered the ways that be e-enabled service quality and effectiveness could be • Cross-boundary working: It was enhanced via e-enablement. From this recognised that digital communication work the e-services element of the and government policy were diagnostic emerged. challenging existing administrative boundaries. Therefore the diagnostic Opportunities for modernised was directed to identify opportunities to develop regional and sub-regional e-Services inter-agency partnership and service delivery The objective was to build on the initial • e-speed: The statutory nature of BV157 audit by working with service Housing’s activities and the long-term managers to systematically identify the relationship with tenants meant that opportunities to e-enable service functions end-to-end service delivery processes against of the following themes: could be time-consuming, particularly if mail was posted. Consequently • Citizen self-service: Making both the diagnostic identified opportunities generic and citizen specific information to use electronic communication to available online – so the community reduce the total elapsed time to could directly access information to complete multiple stage transactions. answer their own queries without • Community engagement: It was needing to make direct contact with recognised that direct, ongoing the council engagement with service users, the • Online transactions: At its simplest wider community and hard-to-reach level this meant digitising existing groups could be facilitated online. manual processes including service Improved online engagement could be enquiries, commissioning, online facilitated between the council and payment for services and the ability to community on a number of levels. For provide citizens with an end-to-end example between citizens and business, online process for services that are between citizens themselves and fragmented amongst different parts of between citizens and the voluntary the council or between local and sector or government agencies. central government agencies. • Removing intermediaries: Digital An extensive range of e-service communication could facilitate direct opportunities emerged from discussions contact between citizens and service with service managers. Examples include: providers – eg council, contractor, 90
  • 92. Hillingdon – a case study: how to create the business case • Citizen self-service: Online FAQs, programme formulation, Works Over access criteria and policies for all Prescribed Limit consultation, tenant services. Making project case files initiative funds and advisory services. accessible to tenants and development Ongoing performance and tenant partners etc. E-enabling client case files feedback on service delivery and (Benefits etc) to facilitate online citizen promotion of take-up for particular enquiry. Online referral points/contact services could also be e-enabled. details for tenant associations and landlord services. Risks and issues raised by the • Online transactions: Including service e-services diagnostic request forms, booking appointments for home visits, end-to-end online The step-wise change envisaged by wide service process, eg Housing Benefits scale e-service modernisation raised a application, decision, appeal and number of challenging questions. change of circumstances. Discreet transactions eg ‘Homefinder’, 1. Does a robust community access nuisance complaints, mutual strategy exist? The potential benefits of exchange, arrears escalation process e-services are underpinned by an access and the tenant exit checklist were strategy that raises awareness, also identified. promotes, and supports the take-up of • Removing intermediaries: Direct digital technologies. This is particularly tenant-to-service provider contact to relevant for hard to reach, socially or address Resident Quality Promise economically excluded groups who performance issues were identified and otherwise are likely to be late adopters direct tenant-to-tenant contact where of digital technologies. Hillingdon’s needed, eg for mutual exchange and approach has been to promote library finally b2b procurement by service based public access terminals and managers with suppliers. develop an iDTV pilot. • Cross-boundary working: 2. How to prioritise investment in Opportunities to develop sub-regional e- services? This was particularly procurement and/or delivery difficult to answer, due to a lack of mechanisms were identified, eg, empty clear evidence demonstrating the homes strategy, procurement of tangible benefits of e-service initiatives. property, temporary accommodation Hillingdon’s response was to develop an support, mutual exchanges, transfers e-services prioritisation model which is and Right to Buy process. not reported on here. • e-speed: Lengthy, multi-stage 3. How will the supply chain be processes such as Benefits, e- enabled? Housing’s initial diagnostic Repairs for services (tenants and work focused on e-services to the end leaseholders) could benefit from service user or citizen. It became using electronic communication. apparent that this approach did not pay • Community engagement: More sufficient attention to e-enabling other immediate and targeted community elements of the supply chain, including engagement opportunities were procurement, supply of goods and identified including the capital 91
  • 93. Hillingdon – a case study: how to create the business case services, and data exchange with following issues: government agencies and partners. 4. Does a resilient network of technology • If an acceptable level of benefit was providers and partners exist? Work with not demonstrated – pause and council colleagues and other suppliers review the original benefits, revisit has developed a resilient the diagnostic’s scope and if communications infrastructure to necessary determine why the support the piloting of mobile and modernisation business case was teleworking solutions as well as online not sustainable. payments and citizen authentication • If an acceptable level of benefit was portals. More problematic (in Housing’s demonstrated, the costs and savings case) was generating supplier markets, associated with the opportunities in commitment to develop a question were developed into a comprehensive range of innovative costed ROI in step 4, completing the citizen focused e-service solutions. business case. Housing’s approach has been to continue to work with existing and new REALITY CHECK – LONDON suppliers to pilot innovative solutions as BOROUGH OF HILLINGDON AND a step towards achieving a broader HOUSING SERVICES strategic partnership(s). Clarify the opportunities and risks Step 3: generated by the diagnostic Reality check Applying the three elements of the INTRODUCTION modernised working diagnostic to Housing Services identified a number of Having completed the modernisation opportunities and risks: diagnostic and identified the key opportunities and risks – step 3, The Business case opportunities: reality check – was the next element in building the business case. The objectives 1. 70% of office-based staff could benefit of step 3 were to: from modernised tele/mobile working for 2-4 days per week. Wide scale 1. Clarify the key opportunities and risks deployment of modernised working generated by the diagnostic could reduce the number of office work 2. Assess the opportunities and risks desks by between 47% – 53% via the against the benefits identified at step 1 provision of internet-enabled e-working 3. Determine whether the opportunities arrangements. and risks were likely to generate an 2. The preference among service acceptable level of benefit, paying managers to combine improved service particular attention to the evaluation availability (both morning and evenings, and management of risks identified by plus Saturday mornings) with more the diagnostic. In Hillingdon this flexible working practices including assessment was directed towards the annualised and compressed hours, 24/7 92
  • 94. Hillingdon – a case study: how to create the business case credit for working time and changes to community expectations and annual leave arrangements. aggregate demand 3. Approximately 65% of total services 2. The effective management of physical transaction volumes with the assets was identified as crucial. community were characterised as Decisions on how to rationalise post- relatively generic in nature. This data modernised working office generated the opportunity to use online accommodation and how future face- applications to centralise the to-face public contact will be delivered management of these generic citizen are vital contacts – while leaving the more 3. Fostering and promoting community complex sensitive transactions with access to digital channels was identified existing specialist teams. as critical to realising the opportunities 4. A wide range of service functions were and benefits of e-services. Without an identified as suitable for e-enabling. effective access strategy the risk exists Opportunities to deliver potentially that considerable public resources will faster, cheaper and more consistent be committed to e-enable services that services online were clarified. In only a relatively small proportion of the addition, new and innovative local community will access or use opportunities to enhance community 4. Delivery of the modernisation agenda engagement, reduce the need for needs a robust and diverse network of mediation and develop sub-regional technology partners to plan, deliver delivery mechanisms through e- and maintain the core ICT infrastructure enablement were also identified. and value-added software that underpins both modernised working, Business case risk factors improved first line citizen service and e-enabled services 1. A common theme to emerge was the importance of effectively managing key Does the business case deliver human resource factors – and the risk acceptable benefits? to the modernisation programme of not doing so. In particular: The modernisation diagnostic identified a wide range of opportunities to improve • Whether modernised working was cost-effectiveness, service quality and mandatory or voluntary? citizen service. It also highlighted a • Maintaining a balance between number of risks – primarily associated with employee expectations for improved delivering organisational change, asset work-life-balance and the needs of management, socially inclusive e-delivery the service and maintaining a robust network of • Capability gap analysis – whether the partners and suppliers. right skills to sustain a modernised organisation exist, and if not how are To assist the discussion on whether the they going to be nurtured diagnostic delivered acceptable benefits, • Managing constrained human Housing revisted the original benefits resources when faced by increased matrix. Through a qualitative, rather than 93
  • 95. Hillingdon – a case study: how to create the business case quantitative process, each of the key benefits originally identified was reviewed with the opportunities and risks generated by the diagnostic. The outcome was to rate each benefit as either: • Sustainable (ie ‘Yes’) • Unclear due to partial or incomplete data (‘?’) or, • Compromised due to insufficient opportunities or outweighed by risk (ie ‘No’). In Hillingdon’s particular case ‘Nos’ were not identified Benefit, target group matrix TARGE T BENEFIT CATEGORIES GROUPS RED ORANGE GREEN Citizen and (?) Disintermediation (Y) Socially community inclusive Employees (Y) Reduce (?) Staff commute time. motivation Reduce turnover Service (Y) Reduce Greater productivity (Y) Service providers premises costs accessibility (Y) Reduce (?) Staff recruitement cost motivation (?) FM costs (Y) Meet citizen (?) Post costs e-expectations (?) Telephony External (?)Subregional (Y) Meet citizen stakeholders economies of scale e-expectations The qualitative review of the benefit was to complete the business case by matrix suggested the modernisation carrying out a quantitative assessment of diagnostic had provided evidence that a the costs and savings derived from the key number of benefits identified at step 1 opportunities and benefits. were potentially sustainable. The next step 94
  • 96. Hillingdon – a case study: how to create the business case Step 4: Orange benefits Completing the Restructuring – additional business case person hours Reduced commute time – INTRODUCTION additional person hours Reduced average response time To support the business case for –additional person hours implementing key initiatives a financial Citizen self-service (self-service) – Return on Investment (ROI) model was additional person hours developed covering each of the three areas of modernisation diagnostic: modernised working practices, ROI METHODOLOGY – STRENGTHS implementation of CRM practices to AND LIMITATIONS improve citizen contact and e-enabling service delivery. The ROI analysis was carried out using a cashflow model as is common practice in The outcome of Housing’s reality check, the private sector. The model was identified a number of red and orange developed specifically for Hillingdon’s benefits that appeared sustainable. The purposes using the same methodology as purpose of the step 4, completing the has been used to evaluate benefits of business case was to use an established internet business solutions at Cisco ROI model to identify and scrutinise the Systems across a number of e-business quantitative costs and savings associated domains including Customer Care, Supply with each of the following benefits Chain Management, Workforce highlighted by Housing’s reality check: Optimisation and E-Learning. Simple cash-flow-based models like this Red benefits have been widely developed by Reduced office space organisations looking at combinations of internet business solutions and IP Reduced ICT infrastructure – technologies. ROI analysis is particularly related to fewer buildings helpful when used to consider not only Reduced recruitment costs through new technologies being adopted but also improved staff retention impacts on working practices and associated business processes. This is the Potential savings from manner in which it was used at Hillingdon. restructuring Reduced commute time For each of the three areas of modernisation, a number of scenarios was created and modelled. Each scenario considered a different combination of initiatives with associated benefits and costs. In each case: 95
  • 97. Hillingdon – a case study: how to create the business case • Red benefits (ie hard cost reductions) The ROI is a way of capturing assumptions were estimated in terms of their about initiatives, their likely costs and monetary value benefits in a transparent manner which • Orange benefits (ie time saving allows inspection and investigation of productivity benefits) were modelled in the implications of variations to the two ways; in terms of their monetary assumptions. Ultimately the real value of value (by equating the time saved to the model is making assumptions explicit the average salary rate); and in terms and capturing the logical implications of of the additional hours of time those assumptions in terms of value to available to provide extra value- the organisation. The ROI at the planning added services stage does not address the key issue • Green (ie non-financial) benefits of allocating accountability to those were not modelled as part of the responsible for achieving the estimated ROI although they do, of course, benefits. The following sections describe form part of the overall justification the analysis and main results from for implementation. the analysis. It is important to interpret what comes out of an ROI analysis. It should not be THE ROI BUSINESS CASE FOR thought of as a ‘forecast’ predicting a E-WORKING – HOUSING SERVICES known future outcome. Such a view implies that the hard work is done once Cost categories and indicative values: the business case is estimated. Rather, it is a way of helping an organisation to The table below describes the major cost design the future that they wish to create. components in the ROI model. These costs Cost summary Estimated Costs One-off costs £ One-off electronic data management costs 265,000 (backscanning of images, EDM software) One-off voice and data network costs 83,500 (enhanced corporate, mobile and teleworker infrastructure) One-off implementation support costs 90,000 (project management and employee training) One-off real estate costs 371,000 (potential reverse premiums and new office kit) One-off delayering costs 80,000 Annual costs £ Annual electronic data management costs 15,000 (EDM software maintenance and upgrade) Annual voice and data network costs 128,500 (enhanced corporate and teleworker infrastructure) Annual mobile technologies costs 25,000 (mobile worker technologies) Annual real estate costs 100,000 (provision of alternative public contact premises) Annual restructuring costs 128,250 (potential redundancy and regrading costs) 96
  • 98. Hillingdon – a case study: how to create the business case are broken down into those which are one-off costs associated with the implementation of modernised working and recurring annual costs. Descriptions of each category are provided below. Benefit categories and indicative financial values To create the ROI business case, the costs outlined above were compared to the benefits achieved from modernised working. These benefits were derived by comparing the working practices under modernisation to those pre-modernisation and examining the costs associated with each. The resulting savings, over a four year period, are described in the following table. Benefit category Year 1 Year 2 Year 3 Year 4 £ £ £ £ Real estate – Benefit from 116,096 559,994 682,920 682,920 released space Technology Infrastructure - 7,560 18,060 21,000 21,000 benefits from fewer location Employee Retention – 11,100 22,200 33,300 44,400 annual recruitment cost saving Restructuring – Average 142,500 213,750 285,000 285,000 annual net cost saving Commute time – Value of 49,138 73,707 98,276 98,276 commute time Sub total – modernised £326,394 £887,711 £1,120,496 £1,131,596 working benefits 97
  • 99. Hillingdon – a case study: how to create the business case Indicative additional service provided by reallocating productivity time savings In addition to ‘red’ cost savings’ opportunities to save employee time were examined. These productivity (or ‘orange’) savings were converted to a cash equivalent by applying the average salary rates for the relevant job functions. These benefits differed from the red benefits in that they represent an opportunity for Hillingdon to do something with this saved time. At one extreme this could mean fewer people providing the same service at the other it could mean the same people providing more service to citizens. Benefit category Year 1 Year 2 Year 3 Year 4 Hours Hours Hours Hours Restructuring – additional 6,380 9,570 12,760 12,760 person hours Reduced commute time – 2,200 3,300 4,400 4,400 additional person hours Sub Total – modernised 8,580 12,870 17,160 17,160 working benefits Additional hours converted 4.9 7.4 9.9 9.9 to full time equivalents(*) (* Based on 1728 working hours per • In case 1 orange productivity benefits annum, ie 36 hours X 48 weeks) were not included; in cases 2 and 3 some productivity benefits were Modernised working - scenarios included modelled and outcomes • In case 2 orange productivity benefits were evaluated in financial terms • In case 3 orange productivity benefits A number of scenarios were modelled were evaluated in terms of additional which are summarised in the following hours of service available table and described below. Each scenario represented a separate run of the model where some of the input assumptions were changed: 98
  • 100. Hillingdon – a case study: how to create the business case The table below summarises the outcome of each case 1, 2 and 3: Modernised working scenario Payback Net annual Additional month benefit In hours In year 4 year 4 Case 1: 39 £435,000 0 Property benefits only Case 2: 29 £735,000 0 Full case with orange productivity benefits converted to monetary value Case 3: 37 £480,000 17,160 Full case with orange productivity benefits converted to hours The potential benefits of each case were profound – although to differing degrees. Taking Housing’s annual gross office accommodation costs of £1,300,000: • Case 1 represented an ongoing saving of 33% on office accommodation costs from year 4 onwards • Case 2 represented an ongoing saving of 56% on office accommodation costs from year 4 onwards • Case 3 represented an ongoing saving of 37% on office accommodation costs from year 4 onwards and 3% productivity gain from mobile and teleworking staff Case 1: Property benefits only The most significant red benefit identified Case 1: Property benefits only Year 1 Year 2 Year 3 Year 4 £ £ £ £ Total financial benefits 123,656 578,054 703,920 703,920 Total costs 978,000 268,500 268,500 268,500 Cumulative financial benefits 123,656 701,711 1,405,631 2,109,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -854,344 309,554 435,420 435,420 ROI on financial benefits 13% 56% 93% 118% Financial break even month 39 99
  • 101. Hillingdon – a case study: how to create the business case at step 1 was the potential to reduce between the employee and Hillingdon office accommodation costs. This was (for all grades below manager it was examined in detail during the diagnostic assumed that the employee takes all of phase (step 2). Case 1 examines the ROI this benefit). associated with this option. Payback In case 2 all productivity time saving occurred just after three years and annual benefits were converted to cash at the net benefits from year four onwards were appropriate average salary rate. The £435,000. The table below describes the outcomes were: outcome from this scenario in more detail. In this case break-even moved from month This shows that the upfront cost of 39 to month 29 and recurring net benefits e-working was estimated to be £978,000 increased to £734,000 in year 4. This with a net cost of £854,000 in year 1. The illustrated (in financial terms) the annual net benefit is positive in each significant additional benefits from the subsequent year rising to £435,00 in extra initiatives considered in this case. year 3 and beyond. The ROI percentage However, it is unlikely that Hillingdon value is cumulative benefits divided by would attempt to convert productivity cumulative costs, ie 100% ROI indicates time saving benefits into cash. More likely break even. would be case 3, where red benefits are evaluated in terms of cash savings and Case 2: full case with monetary orange benefits are evaluated in terms of productivity benefits additional hours of service available for value added services. In addition to consolidation of the property portfolio based on modernised Case 3: full case with service mobile working practices the business case productivity benefits was extended to include: The results from this case were: • Improved employee retention achieved as a result of an enhanced work-life- balance for employees. It was assumed that this benefit would manifest itself in a reduced staff turnover rate with a resulting impact on recruitment costs. The ultimate improvement to the retention rate was assumed to be phased in over four years. • Restructuring and redesign of supervisory processes were assumed to be phased from year 2 onwards. • Reduced commute time for managers achieved through flexible working arrangements. It was assumed that these time savings are shared 50:50 100
  • 102. Hillingdon – a case study: how to create the business case Case 2: Wider Business Case Year 1 Year 2 Year 3 Year 4 £ £ £ £ Total financial benefits 233,032 983,530 1,120,496 1,131,596 Total costs 1,058,000 396,750 396,750 396,750 Cumulative financial benefits 233,032 1,216,563 2,337,058 3,468,654 Cumulative costs 1,058,000 1,454,750 1,851,500 2,248,250 Annual net benefit -824,968 586,780 723,746 734,846 ROI on financial benefits 22% 84% 126% 154% Financial break even month 29 Case 3 Full case with service Year 1 Year 2 Year 3 Year 4 productivity benefits £ £ £ £ Total financial benefits 134,756 600,254 737,220 748,320 Total costs 978,000 268,500 268,500 268,500 Total hrs for additional services 4,400 17,160 17,160 17,160 Cumulative financial benefits 134,756 735,011 1,472,231 2,220,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -843,244 331,754 468,720 479,820 ROI on financial benefits 14% 59% 97% 125% Financial break even month 37 Cumulative additional 4,400 21,560 38,720 55,880 service hrs Financial break-even was achieved in THE ROI BUSINESS CASE FOR CRM month 37 and the annual recurring net AND E-SERVICE DELIVERY – benefit by year 4 was £480,000. In HOUSING SERVICES addition this case ‘freed’ 56,000 working hours in productivity gains over the four INTRODUCTION years (at a recurring annual rate of 17,000 hours) that could be made available to Building on the results from the e-service improve service quality to Housing’s delivery and citizen contact diagnostics, tenants and other service users’ services. the purpose of the ROI was to estimate Of course the managerial challenge of the impact on Hillingdon of implementing ensuring that this ‘freed’ time is used CRM and moving routine enquiries effectively remains, and this is an issue towards web-based citizen self-service. that needs to be addressed to ensure that benefits are actually realised. However, there was less clear cost data available in this area and more uncertainty about the impact of the benefits identified by the diagnostic. Therefore the initial work in developing a business case focused on establishing an hypothesis as to what impact was hoped for, how it may 101
  • 103. Hillingdon – a case study: how to create the business case be achieved and what some of the key impact of allocating more staff to deal risks appeared to be. To do this a cause with the backlog of unresolved queries. and effect map was developed to make This results in fewer staff available to deal explicit the key relationships impacting the with new queries. Consequently, as staff likely outcome. are reducing the backlog of existing queries, new queries are being added to the same backlog. This compensating Conventions used in the diagrams In the diagrams that follow a ‘+’ indicates that the variable at the head of the arrow moves in the same direction as the variable at the foot of the arrow while a ‘-’ indicates that the variable at the head of the arrow moves in the opposite direction to the variable at the foot of the arrow (all other things being equal). The direction of the arrow shows the hypothesised nature of causality. For example an increase in unresolved queries (foot of the arrow), other things being equal, will lead to an increase in the average response time (head of the arrow). Where feedback loops are formed in the diagram ‘B’ indicates a balancing loop where increasing (or reducing) any variable in the loop then working round the chain of cause and effect leads to a compensating decrease (or increase) in the same variable next time round. Conversely ‘R’ indicates a reinforcing loop where any increase or decrease in a variable is amplified by working through the chain of cause and effect. Hypothesis for impact of CRM and Unresolved e-services deployments on service – queries capacity, aggregate demand and service quality B1 Staff on Initially, consideration was given to the backlog way unresolved queries are dealt with. As staff deal with backlog they build up, the response time to the + + customer gets longer (ie time to deal with the query increases) thus more staff are Average allocated to dealing with the backlog of response time unresolved queries. This is captured in the first balancing loop shown right. behaviour shown in the reinforcing loop Next, consideration was given to the means that, overall, the backlog may be 102
  • 104. Hillingdon – a case study: how to create the business case increasing or decreasing depending on the average time to deal with a query? arrival rate of new queries and the rate at Irrespective of why this time may be which they are being resolved. What decreased, what is the likely impact on the tends to happen over time is that demand backlog of unresolved queries? An initial is fairly constant and, with a response is that as queries are dealt with fixed allocation of resource between faster, other things being equal, this the backlog and new queries, a more would lead to a fall in the backlog. or less constant level of unresolved However, this means that the equilibrium queries results. described in loops B1 and R1 is disturbed, therefore consideration needs to be given What is the impact of reducing the to any knock on effects this may have. Average touch time per query + – R1 Unresolved queries – staff on new queries Staff responding to new queries – B1 Staff on backlog staff deal with backlog + + Average response time 103
  • 105. Hillingdon – a case study: how to create the business case Average touch time per query + – R1 Unresolved – + queries staff on new queries Staff responding to New queries new queries – B1 Staff on + backlog staff deal with backlog B2 + + expectations and demand Customer Average expectation response time + – Customer satisfaction The model developed so far shows the again. As customers are served faster, their impact would be entirely positive, satisfaction levels increase and, over time, however demand had not been introduced they come to expect this faster service as to the model at this stage. Loop B2 the norm. Consequently, they are more illustrates a counter-effect that could likely to come back with another query in potentially increase the backlog once the expectation that this too will be dealt Average touch time per query + – R1 Unresolved + queries – staff on new queries Staff responding to New queries new queries + – Employee stress B1 Staff on + backlog B3 staff deal with backlog B2 + + service level expectations and demand – Customer Average Quality of service to expectation response time customer + – Customer satisfaction + 104
  • 106. Hillingdon – a case study: how to create the business case with promptly. Thus the overall demand service which reduces customer increases as more new queries emerge satisfaction, with potential implications which once again adds to the backlog. for discretionary demand. A further complication was added when So, it is important that improvements in considering the impact on the workforce customer satisfaction achieved through of high levels of unresolved queries. reduced touch time are not lost through a Customers become agitated and staff are combination of excess growth in put under increasing levels of stress. If aggregate demand and deteriorating maintained over a period of time this is quality of service. likely to lead to a deterioration in the service provided to customers and a Finally consideration was given to the reduction in the level of customer mechanism by which average touch time satisfaction. would be reduced through implementation of CRM processes and This analysis suggests that reducing touch introduction of self-service channels on time in a stable environment produces at the web. In doing this it was recognised least three effects: that these initiatives eventually have the desired effect on touch time. However, in 1. As the average query handling time is the short term these new ways of working reduced unresolved queries are reduced mean that the workforce have to learn and customer satisfaction improves. new skills, which can actually increase 2. This can lead to an increase in demand touch time during this transition period. which increases the backlog of queries This means that there may actually be an and reduces customer satisfaction. initial deterioration in service to customers 2. In the meantime an increasing while the new processes are ‘bedded in.’ backlog can lead to a deterioration of – R1 Unresolved queries – staff on new queries Staff responding to new queries – B1 Staff on backlog staff deal with backlog + + Average response time 105
  • 107. Hillingdon – a case study: how to create the business case Hypothesis for impact of CRM and e-services deployments on service capacity, aggregate demand and service quality New CRM and e-services e-working initiatives + CRM process + deployment Self-service channel deployment + – + Employee familiarity with working processes – – Average touch – time per query + – R1 Unresolved – staff on new queries + queries Staff responding to New queries new queries + – Employee stress B1 Staff on + staff deal with backlog backlog B3 B2 + + service level expectations and demand – Customer Average Quality of service to expectation response time customer + – Customer satisfaction + The desired impact of reduced touch time, reduce customer satisfaction. Furthermore achieved via the introduction of self- customer satisfaction could, potentially, service through the web and CRM, will be fall to levels below the initial levels to reduce average response times for achieved prior to the introduction of e- dealing with queries and improve services (see line ‘Risk 2’ below). These customer satisfaction. However, the hopes and fears are captured in the impact of increasing demand following diagram. anddeteriorating service levels could 106
  • 108. Hillingdon – a case study: how to create the business case Potential impact of CRM and e-services on citizen satisfaction Customer Satisfaction Desire Risk 1 Learning Risk 2 Time In conclusion this means it is important to e-services initiatives into (orange) understand the capacity of the workforce, productivity time savings. However, the to manage customer expectations and the implementation was not defined quality of service provided. sufficiently at the time of this analysis to obtain accurate costs of implementation, Investigating The Extra Capacity consequently the analysis focused on the Generated By CRM And E-Services: productivity benefits ie this was an ‘R’ analysis rather than an ‘ROI’ analysis. This To manage these risks Hillingdon wanted provides the basis for planning to estimate the additional service capacity enhancements to service, actively it was capable of generating through managing expectations and considering modernisation. An ROI model was the value by comparing costs, when known, ideal vehicle to do this as it provided the to anticipated service improvements. means of translating the CRM and 107
  • 109. Hillingdon – a case study: how to create the business case The following table describes the initiatives and benefits analysed for CRM and e-service delivery. Case Initiative Description Benefits Case 1 CRM • Single point of contact • Faster service for citizen for citizens • Reduced touch time for • Consolidated public Hillingdon contact centre • Consistency of service Case 2 e-services • Citizen self-service • Faster service for citizen • Online transactions • Reduced touch time for • E-speed Hillingdon • Disintermediation • Consistency of service Case 3 CRM and • Multi-channel customer • Faster service for citizen e-services contact facility • Reduced touch time for Hillingdon • Consistency of service Case 4 Regional • Consolidation across • Economies of scale consolidation local authorities • Adoption of best practices These four cases were considered in the regional delivery of services has not been order suggested as this represents the sufficiently well defined. This provided an most likely sequence of implementation. estimate that could be tested in pilots to Cases 1 to 3 are self-explanatory, case 4 determine the actual level of additional considers the potential impact of regional capacity generated through the consolidation across local authorities introduction of these initiatives. Once beyond Hillingdon, for example the West these estimates are validated via pilots London Alliance. they may be compared to the cost of implementation to assess value for money. The scenarios modelled and outcomes They can then be used to set policies to manage citizen expectations (and future The results from the analysis indicates that demand) as well as desired service levels. between 2.3% and 6.3% of the total All three components: capacity, demand workforce can be freed up from the management and quality of service should introduction of the initiatives described in then form part of the performance cases 1 to 3. Case 4 was not estimated as review system. Case Impact by year 4 Equates to Case 1: CRM only 12 people freed up to 2.3% of the total workforce deliver value added service (approx) Case 2: e-service only 21 people freed up to 4.0% of the total workforce deliver value added service (approx) Case 3: CRM and 33 people freed up to 6.3% of the total workforce e-service deliver value added service (approx) Case 4: Regional Not estimated, as solution not scoped. Clearly potential e-service for additional benefit 108
  • 110. Hillingdon – a case study: how to create the business case SUMMARY – COMPLETING THE BUSINESS CASE 1. The business case for modernised working practices shows a payback of just over three years on a cashflow basis (ignoring any benefits of charges to capital). The total cost, both capital and operating expenditure, over four years is approximately £1.8m. By the end of this period annual net benefits of something like £435 to £480k were estimated with up to an additional 17,000 hours per annum (or approx 10 FTE’s) of value- added service time made available. 2. CRM and e-service delivery were less well defined and pilots are now under way that should allow a better estimation of costs. However, a compound growth in productivity of approximately 6.3% is estimated from full implementation of these solutions which would result in an additional 51,000 hours of time (or 33 FTE’s) for value-added customer service. This case study has demonstrated the value of a rigorous structured approach to identifying the costs, benefits and risks associated with implementing modernised working practices and e-government. The process of articulating and quantifying the business case was an invaluable step in understanding and communicating the opportunities at stake. This analysis can now be extended to all other service areas and will form the basis of setting and managing targets for real improvements in services to citizens. 109
  • 111. Author biographies Michael R. Bloomberg fields at city high schools throughout The 108th Mayor of the City of the five boroughs. He also served on the New York boards of 20 different civic, cultural, educational and medical institutions, He was born in 1942 to including: the High School for middle-class parents in Economics and Finance; Lincoln Center Medford, Massachusetts, for the Performing Arts; Metropolitan where his father was the Museum of Art; Police & Fire Widows’ & bookkeeper at a local dairy. Children’s Benefit Fund; SLE (Lupus) Mayor Bloomberg’s thirst for Foundation and Prep for Prep. information and fascination with technology was evident at an early age, In 1997, Michael Bloomberg published and led him to Johns Hopkins University, his autobiography, Bloomberg by where he parked cars and took out Bloomberg. All of the royalties from loans to finance his education. After his sales of the book are donated to the college graduation, he gained an MBA Committee to Protect Journalists. from Harvard and in the summer of 1966 he was hired by Salomon Brothers to work on Wall Street. Monica Berneström As a young trader, he created a financial Head of the Department TIME (Telecom, information computer that would collect IT, Media and Entertainment) at the and analyse different combinations of Economic Development Agency in the past and present securities data and City of Stockholm. deliver it immediately to the user. In 1982, Bloomberg LP sold 20 Member of the working subscriptions to its service; 20 years group ‘IT and Democracy’ later, Bloomberg LP has over 165,000 run by the Swedish subscribers worldwide. As the business Government. Member of proved its viability, the company the Council of Mobile branched out and in 1990 Bloomberg LP Services. Chairman of the national entered the media business, launching a council of ‘e-services and growth’ news service, and then radio, television, internet, and publishing operations. He funded relief programs for victims of domestic violence in New York City, sponsored the Children’s Health Fund's Mobile Medical Unit, which serves the children of homeless families, and supported construction of new athletic 110
  • 112. Author biographies Dave Carter strategic business support, project and Director of the Manchester Digital programme change management with Development Agency following on from London authorities; as well as an MBA being Acting Head of the Economic from Warwick Business School and Initiatives Group within the Prince2 qualification. Regeneration Division of Manchester City Council. Over the past 15 years he Joan Clos has been involved in Mayor of Barcelona since 1997. developing projects utilising information and In 1999 he was elected for communication a four-year term, and was technologies in the context of urban then re-elected in the regeneration. municipal elections of May 2003. Joan Clos was born at Parets del Vallès in 1949. He is a doctor, having taken his degree in medicine Pacey Cheales with the first graduating class from the Corporate Programme Manager for the Universitat Autònoma de Barcelona, and Hillingdon Improvement Programme studied at the Hospital de Sant Pau, one (HIP) of Barcelona's modernist architectural jewels. After a period working as an Pacey Cheales is a corporate anaesthetist, he decided on a radical Programme Manager for change of course in his professional life, the Hillingdon Improvement moving into epidemiology, community Programme (HIP), where he medicine and health resource is leading the management. He took part in the implementation of flexible working and movements of anti-Franco professionals e-delivery programme for the council. and health services reform. During the He developed the initial Modernisation post-Franco period of political transition Business Case in Housing Services in he worked in primary healthcare with 2001, and worked with Cisco Systems in a group of doctors who defended 2002 to create the final case study that the political transformation of the was referenced in the UK Government’s country as a means of reclaiming National e-Strategy for Local professional dignity. Government in late 2002. Since then, in partnership with Cisco, he has presented Joan Clos has led the process of Hillingdon’s Modernisation Business transformation from the industrial city Case at both national and regional born in the 19th century towards the seminars. He has 17 years’ experience in ‘city of knowledge’ of the 21st century. 111
  • 113. Author biographies The future of welfare, cohesion and Director for external relations at the City opportunities for Barcelona, destined of Stockholm’s Executive Office directly to be a natural leader in southern subordinate to the CEO. Europe, depends on its excelling in the new economy. Saeed Al Muntafiq Director General of the Dubai Anita Ferm Development and Investment Authority Director of Education Administration, Stockholm Saeed Hussain Al Muntafiq graduated from Schiller Anita Ferm has for many International University, UK, years been Director for the with a Bachelor of Arts Stockholm Education Degree in International Administration with Relations with Psychology. He also responsibility for upper attended the Program Management secondary schooling, local-government Development at Harvard Business School administrated adult education, Swedish in USA. language tuition for immigrants, and special schools for people with learning Saeed Al Muntafiq has worked for difficulties. Anita Ferm has also held Emirates Petroleum Products Company positions directed towards adult, (EPPCO) for a period of 11 years. While technical and vocational education at at EPPCO, he spent two years at Caltex the Swedish Educational Agency and at Malaysia as the Assistant Director of the Swedish Ministry of Education. Marketing. In December 1999, he joined the Dubai Technology, E-Commerce and Media Free Zone as Project Manager to compile the strategy for Dubai Internet Per-Olof Gustafsson City and in May 2000 was promoted to Deputy Managing Director, The City of the role of Chief Executive Officer of Stockholm’s Economic Development Dubai Media City While at DMC, Saeed Office and Chairman of IT-forum (an Al Muntafiq achieved numerous organisation for cooperation and successes including attracting 400 development in the IT-sector in the companies ranging from broadcast to Stockholm region) publishing, formulating the Freedom of Expressions Laws and engineering the Some examples of Mr infrastructure and legal landscape for Gustafsson’s earlier the media industry to operate in Dubai. positions are Controller, In August 2001 Saeed Al Muntafiq was Deputy IT Director and appointed Chief Executive Officer of 112
  • 114. Author biographies Dubai Ideas Oasis and in November he Committee and then became President was given the additional role of Vice- of the State Office for Housing and President of Real Estate and Facility Urban Development. In 2002 he was Management of the Free Zone. In Adviser to the Executive Board of KGHM March 2002 he was again promoted to Polish Cooper Ltd. the role of Chairman of the Board of Media City. In April 2002 Saeed Al Muntafiq was Steve Palmer appointed Director General of the Dubai Head of Technology and Development and Investment Authority Communications, Hillingdon where he now heads a team that is Council responsible for advancing the economic development and growth of Dubai. Steve Palmer is Head of Technology and Communications at Hillingdon Council in London and he has a brief for E-Service delivery both within Slawomir Najnigier the Borough and as part of its regional Deputy Mayor of Wroclaw working. He was elected to be Chairman of SocITM London Branch in November In 1983 Slawomir Najnigier 2001 having been its Secretary for the graduated from the previous 2 years. The broad issues of Department of Fundamental citizen access and identification are key Technology Issues at the and his Communications brief includes Wroclaw University of management of the Council’s Press and Technology and in 1988 he graduated Public Relations functions as well as the from the Faculty of National Economy at Council’s ICT infrastructure. As a the Wroclaw University of Economics. geographic area Hillingdon is currently Following this he worked as chairman of enjoying unprecedented commercial a computer company and since 1990 he investment but it also suffers from has been a councillor and a member of significant deprivation. The Borough is the Municipal Government of Wroclaw, multi-cultural and reflects the residency responsible for finances and ownership of Heathrow within its Boundaries. transformations. From 1992-1993 he was Undersecretary of State at the Prior to his move into a Corporate level Ministry of Physical Planning and role he had a 20 year background at Construction and in July 1994 he senior level in delivering and supporting became Deputy Mayor of Wroclaw, front line service delivery including responsible for the municipal economy. refuse collection, street cleaning, vehicle During the flooding in Poland in 1997 maintenance and engineering. He has he headed the Wroclaw District Flood also managed a diverse range of 113
  • 115. Author biographies environmental issues including working definition of strategy projects, with the Coroner’s Service, Infectious marketing and organisation regarding Disease Control and other similar, the automobile sector and distribution glamorous, functions. He has acted as in Italy, Switzerland and Germany. an adviser to the Law Society Local Government Group and has chaired a Two years later, in 1991, he moved from number of policy development teams. the consultancy field to direct He lives in Essex, is married with two management entering the Piaggio grown-up children, and has two Group, initially as General Director of grandchildren. He has the rare Motovespa S.p.A. in Madrid, and then distinction of being one of the select as Senior Vice-President of non- few Leyton Orient Football Club European activities, establishing and supporters and enjoys travel and managing companies in China, India, reading in his spare time. Indonesia and South America. At the beginning of 1995 he entered Omnitel as Chief Operating Officer and Silvio Scaglia became CEO in July 1996. During this Chairman of e.Biscom, Milan period Omnitel underwent its transformation from start-up to Silvio Scaglia was born in successful company, becoming the 1958 in Lucerne, second largest mobile operator in Switzerland, and grew Europe and one of the five highest value up in Novara. Italian companies. After graduating from the Polytechnic At the end of July 1999, Silvio Scaglia University of Turin in 1983 with a degree founded e.Biscom with Francesco in Electronic Engineering, specialising in Micheli and has been CEO ever since. In telecommunications and computer April 2003 he was also appointed science, he worked for a short period in Chairman of the Group. e.Biscom’s Aeritalia Spazio on the data transmission success comes from the development of system between the tethered satellite a new generation of broadband and the Space Shuttle. telecommunications services, based on the innovative Fiber To The Home and IP In the autumn of 1983, he moved into technology, allowing the company to the consultancy field, becoming part of become Italy’s main alternative carrier. Arthur Andersen Management Today e.Biscom employs over 1,850 Consulting, transferring in 1986 to people and has total revenues of about McKinsey & Co, and subsequently in 237 million euros. 1989 to Bain Cuneo e Associati. During this time, he was mainly involved in the 114
  • 116. Author biographies Adrian Slatcher proposals on the reform of Taxation. ICT Development Officer of the Since 2001 he has been Minister for Manchester Digital Development Agency Economy and Employment. and poet Since 1999 Adrian Slatcher has worked in developing, Simon Willis researching and Director, Public Sector, Internet Business disseminating ICT in Solutions Group Europe, Middle East & universities, local Africa Cisco Systems, Inc government and the voluntary sector. He has published poetry and short Simon Willis came to Cisco stories widely. He is now ICT after 15 years of work in Development Officer of the Manchester government and e-business. Digital Development Agency He has held various senior management and policy positions in the UK Government, including private secretary to a Minister Senator Gunnar Uldall of State, head of operational reform at Minister for the Economy and Employment the Department of Social Security, head of pensions equalisation and Chief Gunnar Uldall was born in Executive of a national disability agency. Hamburg. After military He ran a high-level criminal justice service he studied Political operation and helped design the new Economics. In 1962 he financial services regulatory regime for became a member of the the UK Treasury. He also headed CDU and in 1966 a management numerous UK delegations to the EU, UN consultant. From 1966-1982 he was a and OECD. After leaving Government he Member of Hamburg City Council and worked for a large systems integrator, then Member of the German Parliament. where he focused on IT integration From 1996-2001 he was spokesman on and e-business work specialising in economic policy for the CDU/CSU payment systems, security and market Parliamentary group. In 1996 he infrastructures. He has run the published ‘Die Steuerwende – Eine neue European Public Sector Group at Cisco’s Einkommenssteuer, einfach und gerecht’ Internet Business Solutions Group for (‘The Tax Reform, a new income tax, three years. simple and just’ ) Knauer Verlag, München Simon Willis has a first-class degree in Gunnar Uldall has won many awards – Politics, Philosophy & Economics from the 1997 Deutscher Mittelstands Prize Balliol College, Oxford. and the 1998 Wolfram-Engels Prize for 115
  • 117. Cisco Internet Business Solutions Group As a long-term trusted business and technology advisor, Cisco Internet Business Solutions Group (IBSG) helps customers maximize their return from technology investment. IBSG business and industry experts bring customers the latest industry trends and technology innovations, sharing Cisco and industry best practices. The group engages globally with Cisco’s largest customers to help refine their business processes to increase productivity, reduce costs, and create new revenue streams. IBSG offers business and internet expertise across seven vertical industries, including the public sector. It works with more than half the largest organisations across each vertical industry and all of the top ten global telecoms service providers. Simon Willis is Director of the Public Sector team, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa. He works as trusted advisor at the most senior levels of large public-sector organisations where transformation is imminent or there is the potential for ground-breaking projects likely to be emulated by others. These projects include tax, education and payment systems along with mass client service and claims-processing organisations. Other projects range from integrated justice and security initiatives, large procurement operations as well as whole-government programmes and those seeking seamless government and transformed service delivery across their full range of services. Among his team’s current engagements are public- sector projects in the Netherlands, Belgium, Spain, Italy, Germany, France, UK, Russia, Jordan, Lebanon, Turkey, Morocco, Romania, Poland, Bulgaria and Hungary. 116
  • 118. Thought Leaders Essays from urban innovators Edited by Simon Willis The ideas explored in this book chart the emergence of Monica Berneström, Stockholm a political and economic phenomenon – the city as the Michael R. Bloomberg, New York new connected republic of the 21st Century. Simon Willis, Dave Carter, Manchester Director of the European public sector team in Cisco Internet Pacey Cheales, Hillingdon Business Solutions Group, has collated essays that show how Joan Clos, Barcelona different cities, at the cutting edge of the process, are grap- Per-Olof Gustafsson, Stockholm pling with the various stages of connectivity. Anita Ferm, Stockholm Saeed Al Muntafiq, Dubai There are striking differences between their experiences. Slawomir Najnigier, Wroclaw But they also have certain things in common. They are driven Steve Palmer, Hillingdon by their citizens’ demands for political re-engagement and Adrian Slatcher, Manchester for better, more responsive, more accessible city services. Silvio Scaglia, Milan They are also driven by competitive forces. As they look out- Gunnar Uldall, Hamburg side their nation state boundaries to define what they Simon Willis, Cisco are going to be in the future and how they are going to be successful in the newly emerging global environment. The successful city learns not just how to work differently within and between its departments and agencies but how to collaborate with its inhabitants on the project and make them part of the success of their own city – thus giving own- ership of the city back to its citizens. Price £9.99 and u14 ISBN 0-9546445-1-4