Cities are where the action is. That's where innovation is happening. A city is an interconnected system of systems. Infrastructure, people, processes and technology make a city. In modern cities, there's a lot of data about everything. Lots of sensors are already deployed everywhere - in buildings, roads, and utility grids; and lots of new information-based processes are in place. Everything is more information-rich, so you have to think about information as another significant resource you use to manage city life. Citizens are also more connected than ever before, they have access to a lot more information, and have powerful platforms of their own. Big data, mobile, social media, cloud, digital inclusion, open data, broadband, etc. are powerful forces that will impact on cities now and in the future - creating both opportunities and challenges for cities. This case study explores the digital enablement of one large South African city. In 2000, the newly formed metropolitan City of Cape Town adopted the “Smart City” strategy, which was a turnaround strategy for the city aimed at information-enabling all key business processes in the city and embarking upon a modernisation programme to deliver services based on real information emanating from the ground (operations). This case study looks both at what has been done in the 13 years since the Smart City strategy was adopted, as well as what needs to be done in a future hyperconnected world. In addition to being of relevance to government leaders, the presentation should be of relevance to all CIOs and business leaders on how today’s new technologies, global competition and new business models will shift the focus from an internal efficiency view to a more outside-in view of the digital world and the role of their organisation within it.

1. Nirvesh Sooful
Chief Executive Officer (CEO)
African Ideas
Living in a Hyper-connected World – How Cities
Need to get Smarter and More Digitally Enabled
1

2. Innovation Development Empowerment Action Solutions
African Ideas – who we are
• Strategic consultancy helping Governments to accelerate the benefits of ICT
enabled change through transformation of the public sector and the wider
economy. Operates primarily in the ICT4D space.
• Key projects
– Western Cape Broadband – Strategy & Digitisation Readiness Advisory Service
– Western Cape Municipal ICT roadmap
– Municipal Shared Service Solution (Cloud based)
– ICAN Centres (Digital Inclusion)
– WIFI Mesh (Rural – Saldanha, Urban – Khayelitsha & Mitchells Plain)
– Rethinking Libraries (Libraries of the future)
– Community spaces of the future
– E-enabling Education (utilising broadband)
2
“dropping a stone, or even a drop of water, in a pond causes ripples to
emanate from the source, getting bigger and bigger the further away from
the source they get.
This is a powerful example of small changes causing large and far-
reaching effects”
At African Ideas, we specialise in working with our clients to identify these ‘big
lever’ projects – the projects which, when embarked upon, will set the
necessary ripples in motion to drive change and transformation throughout an
eco-system. In this way we aim to have a profound effect on the society in
which we operate.

3. Innovation Development Empowerment Action Solutions
Introduction – who am I?
• Involved in the IT industry for over 25 years
• Many large, complex, innovative and award winning projects
• Spent 10 years at City of Cape Town. First CIO of Metro city.
• Architect & driver of the “Smart City” strategy - turnaround
strategy for the city aimed at information-enabling all key
business processes in the city & embarking upon a
modernisation programme to deliver services based on real
information emanating from the ground (operations)
• Currently CEO of African Ideas. Also Strategy & Readiness
Advisor to Western Cape Broadband Programme
“Nirvesh is the architect and driver of the City’s Smart City strategy, which Communications Minister Ivy Matsepe-
Cassaburri in January 2005, called a “visionary transformation strategy,” which positioned Cape Town “to become
one of our most technologically advanced cities” and “a frontrunner in South Africa’s National IT Strategy”. The
strategy also focuses on how to harness the power of ICT to meet the development needs of the city and all its
citizens.
While at the City of Cape Town, Nirvesh has implemented some of the largest ICT enabled business
transformation projects in South Africa, creating billions of Rands of value for the City. These have resulted in the
city winning numerous national and international awards including the Bill and Melinda Gates Foundation Access
to Learning Award and the 21st-Century Achievement Award from the Computerworld Honors Programme. In
September 2007, Nirvesh received a Provincial Honour Award from the Premier of the Western Cape as a person
“rendering exceptional achievements and exceptional meritorious service in the interest of the Western Cape.”
ITWEB July 2008

4. Innovation Development Empowerment Action Solutions
Scene Setting
4
Ubiquitous Information Access
1950 1960 1970 1980 1990 2000 2010 2020
Era I: Automation, Cost Control
and Efficiency
Era II: Productivity and End-User
Empowerment
Era III: Value Creation and
Business Effectiveness
Internet/Network Computing
Mainframe/Midrange Computing
Client/Server Computing
IT
Impact
on
Business
Structure
Low
High
Era IV: IT Enabling New
Business Models
The Rules
Internally
Focused
Externally
Focused
Source: Gartner
Key Issue
IT’s Changing Destiny
Evolving IT Investment Drivers and Technology Cycles
Era I: Automation, Cost Control
and Efficiency
Era II: Productivity and End-User
Empowerment
Era III: Value Creation and
Business Effectiveness
Era IV: IT Enabling New
Business Models
The Rules
Era V: Digitisation
Hyper-connected world
Outside in –
the impact of
digitisation on
the enterprise

5. Innovation Development Empowerment Action Solutions
More than ever, human life revolves around the city
One hundred years ago, 2 out of every 10 people lived in an urban
area. By 1990, less than 30% of the global population lived in a city, but
as of 2010, more than half of all people live in an urban area. By 2050,
this proportion will increase to 7 out of 10 people.
5
Source: UN, Department of Economic & Social Affairs, Population Division

6. Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
6
Municipal Policing
Urban Planning &
Environment
Sport & Recreation
City Administration
Community Services
Emergency Services
Primary health care
Economic & Social
Development
Public Housing
Roads, Stormwater
& Transport
Solid Waste / landfill,
removal & area cleaning
Water & Sanitation - storage,
treatment & distribution
Electricity - distribution & retail
The city is a microcosm of the major challenges and opportunities facing the planet
today—intensified and accelerated.
Here, all man-made systems come together and interact with one another.
The information/
ICT challenge
• Leveraging information to make better decisions
• Anticipating problems to resolve them proactively
• Co-ordinating resources to operate effectively
Cities are amazing places

7. Innovation Development Empowerment Action Solutions
In 2000 City of Cape Town had to merge 7 previously autonomous local
government administrations and become a single integrated metropolitan
City, but it found that creating a Unicity to be complex due to:
“Lack of standardised financial
policies and procedures”
“Each Administration / Directorate ran
its own IT systems, many of which
did not meet business requirements
and were not properly integrated”
“Paper based processes where labour
intensive, prone to error and
information could not be shared.
“Difficulty in merging these systems
was in fact hindering the merger of
the administrations and undermining
the objectives which motivated the
creation of the Unicity”
“To utilise ICT as a key enabler to ensure
integration, facilitate the merger and bring
about organisational transformation.”
Thereby, enabling the City to deliver on its
Strategic Objectives”
Blaauwberg
Tygerberg
Oostenberg
Helderberg
South
Peninsula
Cape
Town
CAPE
METROPOLITAN
AREA
City of
Cape Town
Smart City
Program
Objectives
Transforming Cape Town

8. Innovation Development Empowerment Action Solutions
• Lack of / Poor service delivery (water, sanitation, electricity, refuse
removal)
• Lack of communication with communities
• Corruption and Nepotism
• Financial mismanagement and Maladministration
• Outstanding debt payments for municipal services
• Lack of capacity – poor project planning, poor management and/or
under-spending by municipalities
• Government officials who spend time focusing on their personal
business interests at the expense of service delivery.
• Violation of MFMA & Supply Chain Mgt - results in tender
irregularities, fuels corruption, erodes confidence in municipal
leadership and compromises service delivery.
• Poverty and unemployment
Many of the issues that we were facing then, still
plague local government in SA today
A REPORT ON THE CURRENT ‘SERVICE DELIVERY
PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees,
Oversight and ICT, Parliament of South Africa, 2009
So, the key question is: Can ICT be used to help
government deal with these business issues?

9. Innovation Development Empowerment Action Solutions
Outstanding debt payments for municipal
services
• Improved visibility and transparency of information on the new invoice, the
ability for citizens to pay their accounts at any municipal pay point and the
implementation of a call center to address billing queries.
• Revenue Services performed significant data alignment duties in converting
data to SAP.
• Revenue enhancement interventions have received priority attention.
Calculation:
• 1% increase in the payment ration = R6
mil per month.
• ROI option: 90 % payment ratio was
used as the baseline for this ROI study
and only 11% of financial value of the
increase above baseline has been
used. = R224.6 mil.
• 100% option: Instead of allocating only
11% - if 100% allocation over 90%
base is to be used the financial value
would be = R794 mil.
How was the benefit realised?
12 Month Moving Average -
Payment Ratio
82.00%
84.00%
86.00%
88.00%
90.00%
92.00%
94.00%
96.00%
98.00%
100.00%
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
Apr-05
Payment Ratio
ROI Baseline

10. Innovation Development Empowerment Action Solutions
Cash Position - City of Cape Town
June 2002 to July 2006
0
500
1,000
1,500
2,000
2,500
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
R'000000
Budget Actual Cash Position
Go-live
Financial mismanagement and Maladministration
Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.

11. Innovation Development Empowerment Action Solutions
Lack of Capacity
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000 Inv Value per Day
Sum of Inv Value
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
No Txns per Day
Sum of No Txns
Average Daily Value: R744,201
Average Daily No. of Transactions : 1140
Andre Stelzner, Director: IS&T, City of CT
“Another interesting area has been the
automation of fuel payments through e-fuel
system and interface into SAP. Through this
we pay approximately R750 000 per day for
fuel to the respective suppliers without any
human intervention......
......What makes things even better
is that the price is checked against
contract pricing and payment is
optimised to ensure that we only
pay on due date. In the past we had
the fuel supply cut to the city due
to late payment, now nobody
worries about it.”

12. Innovation Development Empowerment Action Solutions
Lack of / Poor service delivery (water, sanitation,
electricity, refuse removal)
All Services / Works Request follow the same process to overcome the
challenge of initiating and tracking the diversity of services government is
responsible for:

13. Innovation Development Empowerment Action Solutions
Creating Citizen Value creates Citizen Loyalty.
Lack of communication with communities
• Citizens demand Private Sector Convenience:
• Itemized Billing and Consolidated Invoicing.
• Pay Municipal Account at any Cash Hall across the City, via
Internet, Debit / Stop Order, 3rd party vendors etc.
• Centralised Call Centre for account queries and defect reporting.
Citizens demand that their requests be actioned
• Works Management via Generic Enterprise-wide Process.
Citizens are looking for Flexibility of Service
• Account available in 3 official Languages
• Progress and other communications via multiple channels
including SMS
Transparency in performance and operational reporting
• Reports, tenders, performance, statistics, etc. available online

14. Innovation Development Empowerment Action Solutions
Government officials who spend time focusing on their
personal business interests at the expense of service
delivery.

15. Innovation Development Empowerment Action Solutions
Help deal with poverty and unemployment
• Large disparity in the socio-economic status of citizens.
Systems assist with
– Identifying citizens which can – but don’t pay; versus
– Citizens which do not have the means to pay.
– Support the vulnerable members of society.
• Examples of social responsible Policies and Tariff-
structures enable via the ERP Program:
– Free Basic Utility Services.
– Grants for the Indigent
– Debt relief through arrangements and incentives
• Other ICT initatives
– Smart Cape – reducing the digital divide and empowering
communities
– Digital Business Centres – assisting small businesses
– Learnerships, volunteerism and skills development

16. Innovation Development Empowerment Action Solutions
Violation of MFMA & Supply Chain Mgt - results in tender irregularities,
fuels corruption, erodes confidence in municipal leadership and
compromises service delivery.

17. Innovation Development Empowerment Action Solutions
Mayor
fights
cash
crisis
Effective Service Delivery and confidence in
municipal leadership
Jun2001
Dec2000
Creation of City of Cape Town
“Lack of standardised financial policies and procedures”
“Each Administration / Directorate ran its own IT systems, many of which
did not meet business requirements and were not properly integrated”
“Paper based processes where labour intensive, prone to error and
information could not be shared.
“Difficulty in merging these systems was in fact hindering the merger of
the administrations and undermining the objectives which motivated the
creation of the Unicity”
Launch of Smart City
Programme
Mayor
fights
cash
crisis
Go Live!!!!
Bill & Melinda Gates
Access to Learning
Award, Berlin, 2003
Jun2008
ComputerWorld Honours Programme 21st
Century Achievement Award, Washington DC,
2004
Mayor fights
cash crisis

18. Innovation Development Empowerment Action Solutions
Implementing effective ICT in the Public Sector can help
deal with
• Lack of / Poor service delivery (water, sanitation, electricity,
refuse removal)
• Lack of communication with communities
• Corruption and Nepotism
• Financial mismanagement and Maladministration
• Outstanding debt payments for municipal services
• Lack of capacity – poor project planning, poor management
and/or under-spending by municipalities
• Government officials who spend time focusing on their
personal business interests at the expense of service delivery.
• Violation of MFMA & Supply Chain Mgt - results in tender
irregularities, fuels corruption, erodes confidence in municipal
leadership and compromises service delivery.
• Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY
PROTESTS’ IN SOUTH AFRICA.
Commissioned by the House Chairperson Committees,
Oversight and ICT, Parliament of South Africa, 2009
People
Strategy
Process
Tech

19. Innovation Development Empowerment Action Solutions19
However, that is only the start …

20. Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
20
Municipal Policing
Urban Planning &
Environment
Sport & Recreation
City Administration
Community Services
Emergency Services
Primary health care
Economic & Social
Development
Public Housing
Roads, Stormwater
& Transport
Solid Waste / landfill,
removal & area cleaning
Water & Sanitation - storage,
treatment & distribution
Electricity - distribution & retail
The city is a microcosm of the major challenges and opportunities facing the planet
today—intensified and accelerated.
Here, all man-made systems come together and interact with one another.
The information/
ICT challenge
• Leveraging information to make better decisions
• Anticipating problems to resolve them proactively
• Co-ordinating resources to operate effectively
Cities are amazing places

21. Innovation Development Empowerment Action Solutions
Broadband
21

22. Innovation Development Empowerment Action Solutions
BroadbandWestern Cape Broadband – Proposed core backbone
22

23. Innovation Development Empowerment Action Solutions
Western Cape Broadband – Access network coverage area
23

24. Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
25

25. Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
26

26. Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
27
WIFI – Mitchells
Plain Phase 5 Coverage
WIFI - Khayelitsha
Phase 5 Coverage

27. Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
28
WIFI – Mitchells
Plain Phase 5 Coverage
WIFI - Khayelitsha
Phase 5 Coverage
Source: http://digitalcivilization.blogspot.com/2010/11/freedom-from-wires.html

28. Innovation Development Empowerment Action Solutions
Source: Bosch Internet of Things and Services Lab
Cities of the future: key issues
2929
• Interconnected
Systems and the
“internet of
things”

29. Innovation Development Empowerment Action Solutions
Cities of the future: key issues
3030
hedonometer.org
an instrument that measures
the happiness of large
populations in real time
• Interconnected
Systems and the
“internet of
things”
• Citizens having
powerful
platforms of their
own

30. Innovation Development Empowerment Action Solutions
Cities of the future: key issues
3131
• Interconnected
Systems and the
“internet of
things”
• Citizens having
powerful
platforms of their
own
• Big data or Big
brother (power &
control)

31. Innovation Development Empowerment Action Solutions
Source:http://www.slidesha
re.net/gleonhard/data-is-
the-new-oil-publicy-is-the-
new-privacy-futurist-
speaker-gerd-leonhard
Cities of the future: key issues
3232
• Interconnected
Systems and the
“internet of
things”
• Citizens having
powerful
platforms of their
own
• Big data or Big
brother (power &
control)

32. Contact Details: nirvesh@africanideas.co.za, www.slideshare.net/nsooful
Living in a Hyper-connected World – How Cities
Need to get Smarter and More Digitally Enabled
34
Thank You & Discussion