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Cities of the future - Jan Sturesson
1. www.pwc.com
Cities of...
- Opportunity...
- Tomorrow ...
- the Future...
Global Challange 2012 05 30
Jan Sturesson
Global Leader Government and Public Services
Partner
4. COGNITIVE LANDSCAPE
II Simpósio Internacional PwC - Inovação em Gestão Pública
5. Är vi en intelligent eller ignorant
stad?
The Ignorance Meter
Ignorance High ignorance/ Low Ignorance/ Intelligence
Low intelligence High Intelligence
Autism 1 7 Openness
Blindness 1 7 Vision
Followership 1 7 Leadership
Disintegration 1 7 Cohesion
Vanity 1 7 Self-Reflection
Abuse of IC 1 7 Use of IC
Regression 1 7 Learning
Disruption 1 7 Connectivity
Lethargy 1 7 Initiative
No-risk 1 7 Experimentation
II Simpósio Internacional PwC - Inovação em Gestão Pública Source. K.North
6. Vision
”Creating the Society of the Future for the
Citizens of Tomorrow - Today – together
with a more Trusted, Sustainable and
Collaborating Government!
6
8. It is all about cities….or….
“There is no question that cities are the engines of
economic growth and centres of dynamic social and
cultural activities and development, although there
exist some contrary messages like the future lies in
a living country side….”
John Naisbitt
Author and Futurist, USA
11. Global Distribution of Population
Source: The Rise of the Mega-Region Richard
Florida, Tim Gulden & Charlotta Mellander
12. Global distribution of Economic
Activity (LRP)
Source: The Rise of the Mega-Region Richard
Florida, Tim Gulden & Charlotta Mellander
13. Global distribution of patent
activity
Source: The Rise of the Mega-Region Richard
Florida, Tim Gulden & Charlotta Mellander
14. Global distribution of star
scientists (highly cited science
authors)
Source: The Rise of the Mega-Region Richard
Florida, Tim Gulden & Charlotta Mellander
16. Future of Future Cities !
“The future is not as it used to be – we need energizing visions,
personal leadership and passion to be able to imagine possible
futures to accomplish the mission of reinventing future cities”
From mega to meta - bigger and bigger…
The urban meets the rural –thought high speed transport and
internet
Green, solar, wind etc. integrated
Without - or much less – cars...
Strategic business insourcing and citizen crowd sourcing
Social intelligence 2.0 – Local leverage on global
mega trends *
3
17. Future of Future Cities !!
The future is not as it used to be – we need energizing visions,
personal leadership and passion to be able to imagine possible
futures to accomplish the mission of reinventing future cities
Stakeholder Collaboration - cross sectors – The new core business
for city management
Holistic approach to sustainability – The “New Capitalism” …
Opened citizen participation and digital mass collaboration -
through legitimate leadership
Reinventing the power of innovation and prototyping - big is
beautiful, but in small scale…
3
18. The agenda of today and tomorrow…
Competitiveness Attractiveness
Sustainable Balanced
Development
Brand defining Growth
Citizen Effective
Engagement Service
19. A City Government Staircase The vision of future
well fare and growth
to the Future…
External control
”New Core Business” – Brand, Collaboration
Magnetism, Excitement, Attractiveness Experiences
for growth and well fare.
Attractiveness
Blue Ocean – New Business Logic Innovation
Tomorrow
Brand development
Opportunity focus
Citizen Consultation
Yesterday
Communication
Streets, water ”Old Core Business” – taken for granted…
Social care Red Ocean – traditional business logic.
Internal control
Risk Focus
21. Mega trends - effecting the strategic agenda !
• Uncertainty – the new normal – financial crisis, epidemics, catastrophes'
and terrorism
• Globalization and localization Glocalisation*
• Competition & Collaboration Co-opetition*
• Territoryzation and flow
• Merging and fusion - territories and spheres melting together
• Urbanization (Urban corridors)
• Individualization
• Governmentization and Privatization
• Hi-tech (www, E-government)
• Hi-touch (Experience society)
22. Mega trends - effecting the strategic agenda !!
• Hi-tech (www, E-government)
• Hi-touch (Experience society)
• Peak oil and renewable energy
• Water – the new oil
• Mobility & Connectivity
• Transparency and openness
• Acceleration and time effectiveness – distance in minutes
• Integration – living, working, shopping and leisure
• Migration / segregation / integration (people, money, knowledge and
values)
• Demographic changes and ageing
23. Some Global Mega, Giga or Tera
Trends…
Globalization Glocalization
Financial / Economic crisis debt, deficit, economies under pressure
Urbanization Corridors, Urbanomics, territoryzation, rurbanization, “smartcitieszation”
Competition Co-opetition
Amalgamation (spheres of society, industries, etc.)
New Technologies ICT, E mobility, smart grids etc.
Knowledge & experience society
Individualization / personalization
Climate change / sustainability sustsinagility
Demographic changes aging - the silver potentials…
23
24. The Future is different… The new normal
2.0
Collaborating
Society
Global
The Local club
Innovation
Team
• Uncertainty
•Glocal-ization
Local • Co-opetition Global
Approach •Ra-plexity Approach
The Local fight
Everybody goes global
by themselves
Competing
Society
25. Some Global Mega, Giga or Tera
Trends…
Globalization Glocalization
Financial / Economic crisis debt, deficit, economies under pressure
Urbanization Corridors, Urbanomics, territoryzation, rurbanization, “smartcitieszation”
Competition Co-opetition
Amalgamation (spheres of society, industries, etc.)
New Technologies ICT, E mobility, smart grids etc.
Knowledge & experience society
Individualization / personalization
Climate change / sustainability sustsinagility
Demographic changes aging - the silver potentials…
25
26.
27.
28. Economic Perspective
E7 could overtake G7 by 2020
60000 By 2030, the global
Convergence Catch-Up Overtaking GDP rankings (at
50000 PPPs) could read as
follows:
GDP at PPPs (constant 2008 I$)
40000 1. China
2. US
30000 3. India
4. Japan
20000 5. Brazil
6. Russia
10000
7. Germany
G7 GDP
E7 GDP 8. Mexico
0
9. France
10. UK
Source: World Bank for 2000-8, PwC projections of actual GDP in 2009-10 and trend GDP thereafter
E7 includes China, India, Brazil, Russia, Mexico, Indonesia and Turkey (the seven largest emerging economies).
28
29. Some Global Mega, Giga or Tera
Trends…
Globalization Glocalization
Financial / Economic crisis debt, deficit, economies under pressure
Urbanization Corridors, Urbanomics, territoryzation, rurbanization, “smartcitieszation”
Competition Co-opetition
Amalgamation (spheres of society, industries, etc.)
New Technologies ICT, E mobility, smart grids etc.
Knowledge & experience society
Individualization / personalization
Climate change / sustainability sustsinagility
Demographic changes aging - the silver potentials…
29
30. Leverage on current trends and integrate strategy
and operations in our value prop
Territory
Transforming a territory
(a city or a nation) for growth
and development
cross sectors
Transform through Strategic
Internal Implementation External
Prototyping
Developing wealth
and well fare -
effective processes
and efficient service
Organization
31. Understanding the Smart Communities concept in
a comprehensive and holistic manner
• eGovernment • Education
• Data centers • Small & Medium
• Broadband Intellectual Enterprises
• Wireless ICT & Innovation • Human Development
• E Payments
• Digital economy • Urban planning
• Conventional &
• Health Renewable Energy
• Safety & Security Social Infrastructure • Smart grids
• Social integration &
cohesion
Smart • Transportation
• Water
Communities • Buildings/Housing
• Tourism • Lighting
• Leisure venues
management Culture & Environmental • Solid Waste
• Cultural venues Leisure management
management Political • Water Waste
Participation management
• Citizen consultation & • Air quality
participation management
• Government outreach • Green areas
PwC 31
32. Det bästa från två världar…
Action, puls, täthet, ljud
och ljus…
Relax, utrymme, stjärnljus,
mörker och tystnad…
Slide 32
34. Future of Future Cities !!
The future is not as it used to be – we need energizing visions,
personal leadership and passion to be able to imagine possible
futures to accomplish the mission of reinventing future cities
Stakeholder Collaboration - cross sectors – The new core
business for city management
Holistic approach to sustainability – The “New
Capitalism” …
Opened citizen participation and digital mass collaboration -
through legitimate leadership
Reinventing the power of innovation and prototyping - big is
beautiful, but in small scale…
3
35. Creating a new playground for growth -
stakeholder collaboration
37. The New Value Matrix for Societal
Innovation – Opportunity Space
Opportunity space…
38. Structure of PwC Cities Assessment Tool
Strategic Vision
Ambition
Social
Leadership City Brand City finance
Intelligence
Enablers
Management Prioritisation
Capacity
Programme/ Performance
Partnerships
Project & Risk
Environmental
Social capital Culture and leisure
capital capital
Capital policy and
management Sustainable Local Economy
Intellectual Participation and
capital political capital
Infrastructure ICT
capital capital
Delivery and Achievement
Performance & A City of
Results KPIs
the Future
39. Methodology - Facing the urban challenge
How do we create a
How do we guarantuee sense of community?
a sustainable level of
welfare?
Social Capital How do we utilise all of
Welfare capital the human potential?
Do we have an
attractive brand Human - or
for global visitors? intellectual capital
Tourist and Do we have the
visitors capital infrastructure in place
to support growth?
Infrastructure
capital
Financial capital
Are we
financially Environmental and
sustainable? natural resources
Trade and capital
industry capital &
immigration
Which policies Political and citizen How do we
manage our
should we adopt Culture and participation capital resources in a
to drive economic
growth? experience capital sustainable
manner?
How do we promote
How do we citizen participation?
create a liveable
PwC city? 39
40. A changing picture of urban success
Central thesis:
The more well-balanced a city is
for both businesses and residents,
the better it will fare
PwC Cities of Opportunity - What makes the difference? 40
41. City of the Future (CoF) measurement tool
+ “Dreaming” Intelligent City: City
city of the future (CoF)
?
Policy
?
“Ignorant” city “Gambling” city
-
- Performance +
The results of the tool, coupled with further analysis, may give the city
an idea of where it stands in relation to being or becoming a CoF and
PwC how to chart its path towards becoming a CoF. 41
43. Capital model measurement tool for cities
Illustrative
Vision
100
ICT Capital Leadership
75 Own Value
Infrastructure Capital 50 Brand Benchmark
25 Best In Class
Social
Environmental Capital 0
Intelligence
Culture & Leisure Capital Finance
Capital
Participation Intellectual
& Political Social Capital
Capital Capital
The above spider graph allows a city to assess where its capital
strengths and weaknesses are, in comparison to best practice and
PwC international benchmarks. 43
44. Utrecht – City vs stakeholder perspective
City perspective
Stakeholder perspective
PwC 44
45. Solna – Assessment of its capitals
Intellectual
Capital
100
80
Infrastructure
Social Capital
Capital 60
40
20
0
Information &
Communications Environmental
Technology Capital
Capital
Participation and Culture and
Political Capital Leisure Capital
PwC 45
46. Arendal – City positioning & development
potential
PwC 46
47. Result – Utrecht Development Board (UDB)
Partnering to achieve success
As an independent advisory board, the UDB supports the Critical success factors for partnering__
city of Utrecht in realizing its potential. To achieve
this, cooperation between local leaders, citizens and
businesses is crucial for its success.
The UDB has succeeded over the last year in working
together with the municipality (setting up strategy)
and executing the strategy by connecting various
stakeholders of the city of Utrecht. In particular,
UDB has created partnerships between various
stakeholders within, and also outside, the city of
Utrecht, including:
• ‘City labs’ – working together (education,
business communities, government
organizations) on different challenges e.g. local
labor market, broadband, civil society and new
ways of working.
• An annual encouragement award for the local
economy, initiated by the UDB and the
municipality
• A permanent lobby to encourage the
participation of industries within the city’s
Strategic Agenda
• Creating a new connection between the Trade
PwC 47
area and the municipality
49. Cities of Opportunity is a highly visible thought
leadership initiative reflecting PwC’s views on
cities
Central thesis: “The more well-balanced a city is for both businesses and
residents, the better it will fare”
• Reflects PwC’s holistic approach to city management
• The report in its fourth edition is produced by PwC with
support from the global network and the ISU and in
cooperation with the Partnership for New York City.
• Takes both a quantitative and qualitative look at the emerging
picture of city life in 21 capitals of business, finance and
culture worldwide.
• To a great extent, the successes and shortcomings that surface
in the study substantiate the central thesis of the research.
• Cities of Opportunity may prove most useful for government
officials, policymakers and business persons as a good
orientation point on the move toward a city-centered world.
• The study takes notice of the actions and policies that are
working best for the common good, and its insights will prove
valuable in that context.
49
50. How the cities rank overall
Stockholm
23 5 Moscow
London
21 14 Berlin
Toronto 19 Paris
Chicago 25
San Francisco 24 20 26 New York 4 Istanbul Seoul
12 Beijing 10 11 13
15
Los Angeles 16 Houston Madrid
Shanghai 8 Tokyo
7 Abu Dhabi 9 17
Mexico City 1 Hong Kong
Mumbai
18 Singapore
São Paulo Johannesburg
3 2
Santiago 6 22 Sydney
PwC Partnership for New York City 50
52. Beta cities fared very well, compared to the
dominant Alpha cities
Top 3 cities in each indicator
New York/
Intellectual capital and innovation Stockholm Toronto
San Francisco
Technology readiness New York Seoul Stockholm
Transportation and infrastructure Paris Chicago New York
Demographics and livability Stockholm Sydney Toronto
Economic Clout London Paris New York
Cost Houston Los Angeles Chicago
Lifestyle Assets New York Paris London
Health, safety and security Stockholm Toronto Chicago
1
Ease of doing business Hong Kong Singapore New York
2
3 Sustainability Berlin Sydney Stockholm
PwC Cities of Opportunity - What makes the difference? 52
53. Indicator Rankings
Indicator Best performing cities
Intellectual capital and innovation Stockholm Toronto New York
Technology readiness New York Seoul Stockholm
Transportation and infrastructure Paris Chicago New York
Demographics and livability Stockholm Sydney Toronto
Economic Clout London Paris New York
Cost Houston Los Angeles Chicago
Lifestyle Assets New York Paris London
Health, safety and security Stockholm Toronto Chicago
Ease of doing business Hong Kong Singapore New York
Sustainability Berlin Sydney Stockholm
PwC Partnership for New York City 53
54. How it’s done …
For example, 2 of 10 indicators + variables
• Math/science skills attainment
• Class size
Social… • Percent of population with higher education
• Literacy + enrollment
• Libraries with public access
Intellectual Capital • Research at top universities
• Percent GDP spent on R+D
+ innovation • Intellectual property protection
• Entrepreneurial environment
• Mass transit coverage
• Miles of mass transit track
Economic … • Traffic congestion
• Taxis
• Cost of public transport
Transportation + • Aircraft movements
infrastructure • In/outgoing passenger flows
• Airport to central business district ease
• Skyscraper construction
PwC Partnership for New York City 54
55. Indicator and variable sampling
• Math/science skills attainment
Intellectual Capital • Percent of population with higher ed
and innovation • Intellectual property protection
• Mass transit coverage
Transportation and • Miles of mass transit track
infrastructure • Traffic congestion
• Political environment
Health, safety and • Crime
security • Hospitals
• Flexibility of visa travel
Ease of doing • Foreign embassies or consulates
business • Workforce management risk
PwC Partnership for New York City 55
58. …How many
apples are there
in a seed..…
New approach
with new
insights and
increased
opportunity
space
Disruptive
innovation and
“rapid
protoptyping”…
63. FINALLY...
We need a:
Higher density of knowledge,
innovation and solid relationships -
inclusiveness
Lower friction in communication,
collaboration and between people,
sectors and cultures
Higher frequency and speed in
citizen and stakeholder dialog in order
to create the new!
3
