Summary of Masterclass w/CK Prahalad in Amsterdam. Invited by Congress of New Urbanism with Portland-experts Earl Blumenhauer, David Bragdon, Joe Cortright & Marcy McInelly.

1. Better choices for the commons?
IBM’s Global Innovation Outlook
and “smarter” approach
Congress for the New Urbanism, PTR Summit – November 5th
, 2009
Stan Curtis, IBM PLM Services, Smart Cities Research

2. What does this mean for cities and planners?
• Goal: Provide a framework to improve community development (service science)
• Approach: Applying IBM’s Global Innovation Outlook (open innovation)
• Outcomes: Configurable building-blocks…better choices! (re-districting, re-pricing)
Abstract
With Moore’s Law driving technology and
embedding change in our business practices
globally, what does this mean for cities,what does this mean for cities,
transportation plans and policy innovations?
Mr. Curtis will share his insights from recent
projects in China, India, with Intel, CH2M and
IBM’s Innovation Centre in Dublin.
• Berkeley, MIT
• P&G, Raytheon
• Accenture, IBM
Background (bias):

3. “Smarter Planet” - a test plan for your region?
• “Heard the one about 600,000 Chinese Engineers?” Washington Post 21may06
• “Planning for ‘Megaregions’ in the United States.” Dewar, Epstein; Journal of Planning nov07
• Nobel-prize! - “An Inconvenient Truth” Al Gore; Nobel Prize 12oct07
Plan for “Mega-regions”
- “Governing the Commons” Elinore Ostrom; Nobel Prize 12oct09
Better choices?Better choices?
Economics!Economics!
Smarter? … more in commonSmarter? … more in common

4. Gordon Moore's original graph from 1965
“Global Innovation Outlook” - what’s wrong with this picture?
• Ramping global supply-chains …1B cars, … 4B cellphones
• Green Tech jobs? … solar panels, wind turbines, and batteries?
• What about my hometown? … global and local trade skills?
Kurzweil – Law of Accelerating Returns
IBM GIO 2004
Q: the next 1B?Q: the next 1B?
Malthus – “Limits to growth”?

5. “Smart Growth” – what’s wrong with this picture?
• “Shovel-ready” roads, bridges ... and cash-for-clunkers? (commodity-jobs)
• “Smarter” product bundling is re-framing business services. (iPod, iPhone)
• “Smarter” Services (search) are re-framing market pricing. (Craigslist, Google)
0
100
50
Agriculture:
Value from
harvesting nature
20501850 1900 1950 20001800
%ofTotalRevenue
Services:
Value from enhancing the capabilities
of tasks that one organization
beneficially performs for others
Goods:
Value from
making products
0
100
50
Agriculture:
Value from
harvesting nature
20501850 1900 1950 20001800
%ofTotalRevenue
Services:
Value from enhancing the capabilities
of tasks that one organization
beneficially performs for others
Goods:
Value from
making products
0
100
50
Agriculture:
Value from
harvesting nature
20501850 1900 1950 20001800
%ofTotalRevenue
Services:
Value from enhancing the capabilities
of tasks that one organization
beneficially performs for others
Goods:
Value from
making products
0
100
50
Agriculture:
Value from
harvesting nature
20501850 1900 1950 20001800
%ofTotalRevenue
Services:
Value from enhancing the capabilities
of tasks that one organization
beneficially performs for others
Goods:
Value from
making products
Q: “shovel-ready” in my home town?Q: “shovel-ready” in my home town?
flexible, demand-mgmt …just-in-time?

6. “Smarter Services” - what’s missing?
www.globalsmartenergy.com
http://www.economist.com/opinion/displaystory.cfm?story_id=14505519
The power of mobile money
Economist 24sep09
Why cities? Power Law: T >B >S >PWhy cities? Power Law: T >B >S >P
- Micro lending and payment
- Market supply and delivery
- Equal opportunity for women
- Health, education, safety
- Tourism, shopping, gaming
“village phone” operator, Uganda
Better Choices?Better Choices?
“inconvenient truth?” …pricing!

7. Global Eco-system? … local innovation!
GLOBAL: Today’s “collision” of ecosystems is recognized as
the most important shortcoming each industry must correct.
GLOBAL: Today’s “collision” of ecosystems is recognized as
the most important shortcoming each industry must correct.
LOCAL: New solutions that meet the needs of the marketplace
can only be achieved through this type of collaboration.
City-Success?
INDUSTRY Eco-systems:
• Automotive
• Energy
• Consumer Electronics
• Telecommunications
• Government/Transportation
“the last-mile problem”!

8. Global (regional) planning: IBM’s approach?
•248 thought leaders •178 organizations •33 countries
• IBM works with global experts on regional Economic Development plans.
• “Triple-Bottomline?” Policy innovation is key!

9. City Success – reconfiguring block by block
GIFT, Bangalore International Airport,
Silicon Valley - CA, International
Financial Services Centre – Dublin
A geographic area with a specific industry or technology
focus enabled by economic incentives to attract foreign
enterprises, increase trade, or serve a local/regional
economic or administrative significance.
(Aerotropoli, SEZ, Technology Parks, Centers of
Commerce or Education)
Specialized City/Hub5
Road user charging system
(Copenhagen), Automated Driverless
Metro (Sao Paolo), City-wide
Electricity Grid (Moscow)
A single system within an urban area that captures and
manages data to enable increased efficiency and real-
time decision making (transportation, communications,
energy, security, water/waste systems, etc.)
Urban Infrastructure
(Single smart system)
4
Ave Maria University (Naples, FL),
CityStars Cairo (Cisco), University of
Southern California - Enterprise
Buildings Integrator (EBI) system
(Honeywell)
A localized geographic area designed to serve a specific
purpose to a larger community (retail, business,
residential, entertainment, education). These areas
consist of complex integrated services, governance and
management systems.
Neighborhood/
Complex/Campus/
Resort
3
Shanghai St. Regis (IBM), The Verve
(Toronto), Bank of America Tower
(New York)
Intelligent buildings successfully merge building
management and IT systems, they converge data, voice,
and video with security, HVAC, lighting, and other
electronic controls on a single network platform; A
building is “green” if it meets certain environmental and
conservation measures
Intelligent/Green Buildings2
Disneyland Innoventions Dream Home
(Microsoft, HP, Life| ware, Taylor
Morrison), Solaire (New York), Duke
Smart Home Program
A home equipped to remotely monitor, control or
program a variety of home systems of varying
complexity (appliances, entertainment, lighting,
environmental control, security, communications, etc.).
Home Automation/ Smart
Home
1
EXAMPLESDEFINITIONSEGMENT
GIFT, Bangalore International Airport,
Silicon Valley - CA, International
Financial Services Centre – Dublin
A geographic area with a specific industry or technology
focus enabled by economic incentives to attract foreign
enterprises, increase trade, or serve a local/regional
economic or administrative significance.
(Aerotropoli, SEZ, Technology Parks, Centers of
Commerce or Education)
Specialized City/Hub5
Road user charging system
(Copenhagen), Automated Driverless
Metro (Sao Paolo), City-wide
Electricity Grid (Moscow)
A single system within an urban area that captures and
manages data to enable increased efficiency and real-
time decision making (transportation, communications,
energy, security, water/waste systems, etc.)
Urban Infrastructure
(Single smart system)
4
Ave Maria University (Naples, FL),
CityStars Cairo (Cisco), University of
Southern California - Enterprise
Buildings Integrator (EBI) system
(Honeywell)
A localized geographic area designed to serve a specific
purpose to a larger community (retail, business,
residential, entertainment, education). These areas
consist of complex integrated services, governance and
management systems.
Neighborhood/
Complex/Campus/
Resort
3
Shanghai St. Regis (IBM), The Verve
(Toronto), Bank of America Tower
(New York)
Intelligent buildings successfully merge building
management and IT systems, they converge data, voice,
and video with security, HVAC, lighting, and other
electronic controls on a single network platform; A
building is “green” if it meets certain environmental and
conservation measures
Intelligent/Green Buildings2
Disneyland Innoventions Dream Home
(Microsoft, HP, Life| ware, Taylor
Morrison), Solaire (New York), Duke
Smart Home Program
A home equipped to remotely monitor, control or
program a variety of home systems of varying
complexity (appliances, entertainment, lighting,
environmental control, security, communications, etc.).
Home Automation/ Smart
Home
1
EXAMPLESDEFINITIONSEGMENT
Pan European Oil Pipeline, Global
Digital Cities Network, Trans-European
Transport Networks (TEN-T)
A system of roads, water supply, power grids, or
telecommunications that spans two or more countries to
facilitate the trade of goods or services between countries
or regions.
International/Global
Infrastructure
10
Denmark’s Rejsekort system, China’s
national rail system, Portugal’s Via
Verde Toll System, India’s Golden
Quadrilateral
Within a country, the system of roads, water supply, power
grids, telecommunications, etc. that facilitates the
production of goods, services and overall economic growth.
National infrastructure may also include associated
information systems and social services such as education,
public safety and medical care.
National Infrastructure9
Boston-New York-Washington,
London-Leeds-Manchester-Liverpool-
Birmingham, Greater Tokyo, Hong
Kong-Shenzhen-Guangdong
An integrated set of cities and their surrounding suburban
areas, competing on a global scale, linked together via
social, economic and transportation systems.
Mega-Urban Region8
New York City, Mexico City, Tokyo,
Seoul, Mumbai, Cairo
Usually defined as a metropolitan area with a total
population in excess of 10 million. Megacities are
characterized by rapid growth, new forms of spatial density
of population, formal and informal economics, as well as
poverty, crime, and high levels of social fragmentation. A
megacity can be a single metropolitan area or two or more
metropolitan areas that converge upon one another.
Megacity
(Multiple smart systems)
7
Dallas-Fort Worth-Arlington, London
Commuter Belt, Lisbon Metropolitan
Area
An extended urban area that also includes peripheral areas
(suburbs) with close economic and social ties to the urban
area. Populations and commerce easily flow within this
area are linked though complex transport and
communications systems. These areas can vary in
population and geographic area.
City/Metropolitan Area
(Multiple smart systems)
6
Pan European Oil Pipeline, Global
Digital Cities Network, Trans-European
Transport Networks (TEN-T)
A system of roads, water supply, power grids, or
telecommunications that spans two or more countries to
facilitate the trade of goods or services between countries
or regions.
International/Global
Infrastructure
10
Denmark’s Rejsekort system, China’s
national rail system, Portugal’s Via
Verde Toll System, India’s Golden
Quadrilateral
Within a country, the system of roads, water supply, power
grids, telecommunications, etc. that facilitates the
production of goods, services and overall economic growth.
National infrastructure may also include associated
information systems and social services such as education,
public safety and medical care.
National Infrastructure9
Boston-New York-Washington,
London-Leeds-Manchester-Liverpool-
Birmingham, Greater Tokyo, Hong
Kong-Shenzhen-Guangdong
An integrated set of cities and their surrounding suburban
areas, competing on a global scale, linked together via
social, economic and transportation systems.
Mega-Urban Region8
New York City, Mexico City, Tokyo,
Seoul, Mumbai, Cairo
Usually defined as a metropolitan area with a total
population in excess of 10 million. Megacities are
characterized by rapid growth, new forms of spatial density
of population, formal and informal economics, as well as
poverty, crime, and high levels of social fragmentation. A
megacity can be a single metropolitan area or two or more
metropolitan areas that converge upon one another.
Megacity
(Multiple smart systems)
7
Dallas-Fort Worth-Arlington, London
Commuter Belt, Lisbon Metropolitan
Area
An extended urban area that also includes peripheral areas
(suburbs) with close economic and social ties to the urban
area. Populations and commerce easily flow within this
area are linked though complex transport and
communications systems. These areas can vary in
population and geographic area.
City/Metropolitan Area
(Multiple smart systems)
6
A software framework, in computer programming, is an abstraction in which common
code providing generic functionality can be selectively overridden or specialized by
user code providing specific functionality. Frameworks are a special case of software
libraries in that they are reusable abstractions of code wrapped in a well-defined API,
yet they contain some key distinguishing features that separate them from normal
libraries.
A software framework, in computer programming, is an abstraction in which common
code providing generic functionality can be selectively overridden or specialized by
user code providing specific functionality. Frameworks are a special case of software
libraries in that they are reusable abstractions of code wrapped in a well-defined API,
yet they contain some key distinguishing features that separate them from normal
libraries. http://en.wikipedia.org/wiki/Software_framework

10. Developing a Platform: Carrier-grade Linux
IBM – Integrated Product Development (IPD)
Market planning and portfolio management
Product development and launch
Linux: Open Source Development Lab (OSDL)
The right investments in
development across
brands and products
tied to ROI, strategic
direction, and risk
Efficiency in the total
product lifecycle
from concept to
marketplace including
people, process,
and technology
Integrated product management pipeline
Product development pipeline
Profit
Satisfied
customers
– Customer buying behavior
– Product objectives
– Business strategy
– R&D roadmap
Understand
the
marketplace
Define the
market
segment
Analyze
the portfolio
Create
market
segment
strategy
Develop and
optimize
market
segment
plans
Manage market segment
and assess performance
– Project management data
– Segment performance data
Market
information
Customer
feedback
Competitor
information
Technology
trends
Current
product
portfolio
Conceive Define Develop Manu-
facture
Launch Manage
life
cycle
Profit
Satisfied
customers
– Customer buying behavior
– Product objectives
– Business strategy
– R&D roadmap
Understand
the
marketplace
Define the
market
segment
Analyze
the portfolio
Create
market
segment
strategy
Develop and
optimize
market
segment
plans
Manage market segment
and assess performance
– Project management data
– Segment performance data
Market
information
Customer
feedback
Competitor
information
Technology
trends
Current
product
portfolio
Conceive Define Develop Manu-
facture
Launch Manage
life
cycle
Program Mgmt – OSDL.org
Platforms
• Data Center
• Desktop
• Carrier Grade
• Embedded
Management
• 7 founders
• 70 members
• 6 global-ctrs
““Governing the COMMONS”Governing the COMMONS”
““the FUNNEL”the FUNNEL”

11. Building Blocks – Platform mgmt
Applying lessons learned to city development
It will SCALE!It will SCALE!
Governing the COMMONSGoverning the COMMONS

12. IBM “Smart Cities” – Portland
3plays, 3 pilots
3 utilities
3 design innovations
Public Safety, Unified Comm
Smart Grid
Intelligent Transit
Auto/Heavy
Energy/Buildings
Aero/Comm
GOVT funds
DOT
DOE
DHS
11
22
33
11
22
33
IBM/CH2M – Smart alliance
Hybrid-powertrain + Fleet-mgmt
Gen-kits + Building-mgmt
Unified-Comm + Security-mgmt
POLICY INNOVATION – PDX Commons, CEO4Cities
SCALABLE SERVICES – Transit, SmartGrid, Safety
MASDAR – Green City.Mgmt Integration Framework
(local)
(global)

13. Better choices: ZipCar, Enterprise, U-Haul
ZipCar: car-share, pay-per-useZipCar: car-share, pay-per-use
NOT more-cars … better services!

14. Component models make an Eco District
Experts:
- Portland + Oregon Sustainability Institute
- Portland + Metro
- EcoTrust + Pearl District

15. Whole systems: configuration mgmt with CH2M Hill
BidOr
Negotiate,
&Award
Design Team
(Engrs./Archs.)
Construction Team
(Cms./Gcs./Scs)
Owner Team
(May Include Users/Operators)
Operations Team
(Users/Operators)
Preliminary
Planning&
Funding
Project
Definition
Package
Conceptual/
Schematic
Design
Design
Development
Contract
Documents
Endof
ServiceLife
Decision
Assessment
&Objectives
Setting
Operation/
Maintenance/
Management
Construction
Planning
Execution
Start–Up
Procurement
Problems
Needs
Opportunities
Decommission
Deconstruct
Rehabilitate
Retrofit
Recover
Restore
Replace
Remediate
Primary
Lead
Active
Participation
Primary
Lead
Primary
Lead
Possible Active Participation
Primary
Lead
Possible Active Participation
Possible Active
Participation
Design/Build or
Integrated E/P/C
Planning Phase
Design Phase
Construction Phase
Operation Phase
Vendors/Suppliers Team
Possible Active Participation
Commissioning
External Parties
Possible Active Participation
Whole System Design? – Building Info Mgmt(BIM)!
Smarter City framework? …Open standards!
1. configurable Bill-of-Material
2. requirements based models
3. compliance, certification testing
Smarter City framework? …Open standards!
1. configurable Bill-of-Material
2. requirements based models
3. compliance, certification testing

16. Green Building – SMART framework?
the greenest building? ... the one NOT built!
http://www.environmentalleader.com/2009/04/07/the-greenest-building-is-the-one-you-don
%e2%80%99t-build/
Consider that 95 percent of our building stock remains
static year to year, and that most existing buildings are
startlingly inefficient in their energy use, and you’ll
understand the immense green opportunity presented by
existing buildings; they offer the single-greatest
opportunity to improve energy efficiency and
improve profits across an organization
Why Energy-service …companies?
How to? …eco-partners, …step-by-step!

17. Why Energy Mgmt? Business model? … services solutions!
JOBS!JOBS!
Better choices!Better choices!

18. Open Home.Area.Network - Berkeley/Stanford NIST/EPRI IEEE 802.154 … PeoplePower SmartGrid-stimulus proposal
People Power: my community!
GreenSentry
(whole house
electricity meter)
GreenEgg
(fridge monitor)
GreenPup
(2-plug 110V)
People
Power
Servers
Personal
Web Portal
GreenPump
(monitor + hub)
PowerMeter
Electric Terminator
Power Console
Mobile
Device
Internet
Fridge or
Microwave
GreenField (6-plug 110V)
Lamp, TV, VCR, Radio, Toaster
GreenStat
(thermostat)
GreenDog
(1-plug 240V)
Dryer,
Oven
GreenHeat
(hot water
pipe)
GreenVent
(HVAC vent)

19. Step by step - like Weight Watchers!
http://www.scientificamerican.com/article.cfm?id=the-greenhouse-hamburger&print=true
Most of us are aware that our cars, our coal-generated electric power and even our cement factories adversely
affect the environment. Until recently, however, the foods we eat had gotten a pass in the discussion. Yet according
to a 2006 report by the United Nations Food and Agriculture Organization (FAO), our diets and, specifically, the
meat in them cause more greenhouse gases carbon dioxide (CO2), methane, nitrous oxide, and the like to spew into
the atmosphere than either transportation or industry.
The FAO report found that current production levels of meatmeat contribute betweenbetween 14 and 22 percent14 and 22 percent of the 36 billion
tons of "CO2-equivalent" greenhouse gases the world produces every year. It turns out that producing half a pound
of hamburger for someone's lunch a patty of meat the size of two decks of cards releases as much greenhouse gas
into the atmosphere as driving a 3,000-pound car nearly 10 miles.
Most of us are aware that our cars, our coal-generated electric power and even our cement factories adversely
affect the environment. Until recently, however, the foods we eat had gotten a pass in the discussion. Yet according
to a 2006 report by the United Nations Food and Agriculture Organization (FAO), our diets and, specifically, the
meat in them cause more greenhouse gases carbon dioxide (CO2), methane, nitrous oxide, and the like to spew into
the atmosphere than either transportation or industry.
The FAO report found that current production levels of meatmeat contribute betweenbetween 14 and 22 percent14 and 22 percent of the 36 billion
tons of "CO2-equivalent" greenhouse gases the world produces every year. It turns out that producing half a pound
of hamburger for someone's lunch a patty of meat the size of two decks of cards releases as much greenhouse gas
into the atmosphere as driving a 3,000-pound car nearly 10 miles.

20. Smarter Cities? … community networks!
http://senseable.mit.edu/nyte/visuals.html
http://www.zinio.com/pages/Seedmagazine/Feb-09/355120772/pg-27
http://pages.stern.nyu.edu/~xgabaix/papers/zipf.pdfhttp://en.wikipedia.org/wiki/Power_law
Power Law: “80/20” Rule
• Ciy-Population (Zipf)
• Wealth (Pareto)
• Firmsize (Gibrat)
Pareto: 80% of wealth, 20% of pop.
http://en.wikipedia.org/wiki/Scale-free_network
Cities: economic “hubs”

21. Think globally, act locally
• Flat World
• Open Innovation
• Wiki-nomics
• Regional Innovation Initiatives (RII)
• Digital Community collaboration
• Sustainable development (TOD)
• Eco district zoning
• Condo, car share
• SmartGrid cell services
Global challenges:
Regional solutions:
Personal choices:
Ex: “Small Steps…”
• Open Innovation (IBM wiki)
• City Success! (CEOSforCities)
• Cascadia (Seltzer.06)
• Intel World Ahead
• Dublin Innovation Centre
• Endurance.net
• GOSCON – Deb&Stuart
• Masdar – Colin&Mogge
• PeoplePower – John&Gene
3 Papers:
3 Partners:
3 Pilots:
• If you’re not part of the solution… ?If you’re not part of the solution… ?
• Keep it simple!Keep it simple! (Be cheerful)(Be cheerful)

22. References
• IBM “Global Innovation Outlook”C.Harrison, M.Fleming
• “Portland: Green Dividend” Ceos4cities, J.Cortright
• “Better Places” Israel, Denmark, Hawaii
• “Gridwise”PNNL- PGE, IBM
• “Smart Garage”Google, IBM
• “The US Inter-operability Problem”National InterOp, IBM
• “Smart Planet”IBM, CH2M
• MIT SENSEable-cityReal Time Copenhagen 2008