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Cisco smart city aims to pioneer Internet of Everything (IoE) into every home, street and community aimed at ensuring safety for citizens and increasing energy efficiency. This presentation on the alignment of IT, Business and Corporate strategies gives a detailed idea on how a company as big as cisco can implement their plan into action.

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  1. 1. IT STRATEGY Team 3 : Yann Robyn, Pujan Motiwala, Rohit Bodhe, Shilpi Talukdar, Ashwani Dua CISCO SMART CITY
  2. 2. “ What is a Smart City? 2
  3. 3. Executive Summary o Approximately 50% of world’s population live in urban areas, a number which is expected to increase to nearly 60% by 2020. o The need to leverage ubiquitous connectivity, big data and analytics that are enabling Smart City initiatives all over the world. o IoT platforms that will reduce the time, cost, and risk - connect multiple systems in a city. o Improving infrastructure, creating more efficient and cost effective municipal services, enhancing public transportation, reducing traffic congestion, and keeping citizens safe and more engaged in the community. 3
  4. 4. Executive Summary 4
  5. 5. Introduction 5
  6. 6. CISCO - IoE (Internet of Everything) 6
  7. 7. Corporate Strategy 7
  8. 8. Corporate Strategy 8
  9. 9. Business Unit Strategy 9
  10. 10. Business Unit : IoT Solutions Mission Vision Objective Strategy Value Statement 10
  11. 11. IT Strategy 11
  12. 12. MISSION Cisco smart city aims to pioneer Internet of Everything (IoE) into every home, street and community aimed at ensuring safety for citizens and increasing energy efficiency. VISION Be an industry leader in helping forge Smart Cities worldwide to unlock technology innovation. 12
  13. 13. OBJECTIVES Applications Technology Infrastructure Strategy 13
  14. 14. What brings to Cisco to work on smart city projects? o Expertise o Trusted Partner o Knowledge transfer between Business Units o Cost savings o Improved business capabilities o Improved technical capabilities VALUE STATEMENT 14
  15. 15. Mintzberg’s 5 P’s Strategy Pattern • Automate and analyze • Data Aggregation and Transformation • Enterprise Analytics & Reporting • Integration with available products/services Plan • Expand business opportunities • Competitive advantage • Development of resources • Acquire new competencies • Build a network with providers Pattern • Building on legacy of networking supremacy • Innovate in-house products • Acquiring smaller innovative companies • Consolidate global presence Position • Leader in developing smart city • Cisco Smart+Connected City has safety & security solutions • Being the GO TO partner for networking solutions Ploy • Gain trust based on global reputation • Compete on price (economy of scale) • Target emerging cities as well as developed cities • Market monopoly • Intellectual property Perspective • Maintain a balance between innovation and reputation • Constantly improve other businesses • Outsourcing +in-house talent development 15
  16. 16. Business Strategy and IT Strategy Alignment Strengths Established networks market Global presence High financial credibility Network of business partners Expertise and insights in sensors, digital devices Multiple revenue streams Weakness Direct dependence on suppliers Disruptive technology trends Risk based approach Lack of collaboration with other firms Non-audit and assessment of current trends Opportunities Capture the next wave of internet Establish foothold in new businesses Develop new expertise Reach various cities world to gain local insights Utilize insights for different businesses Threats Competition: Investment firms, Auditing firms Next wave of technology: bigger than Big Data Security of data and insights Talent poaching Vulnerability to attacks 16
  17. 17. IoT Solutions - Business Unit Objectives o Expansion to new clients (cities) o Leverage brand recognition o Gain local insights o Trusted partnership o Combine Talent + Opportunities 17
  18. 18. Golden thread 18
  19. 19. Implementation of a Smart City Efficient crime analytics solutions identifies incidences of crimes amongst masses of data with help of Big data. Capturing masses of data from Smart cameras, Smart lights and different monitoring sensors as well as social network and people. And the victim can be alerted on the smart city app on phone or on wearable tech before crime occurs. The Facial recognition with help of Artificial Intelligence can predict the criminal and the victim by real time crime analysis and with help of investing agencies. Different sensors detect live traffic conditions & send data over network for analysis. Analytics identify sudden changes in traffic conditions signalling likely traffic incidents. Traffic flow patterns are monitored to identify congestion, update the traffic situational awareness picture & alert operator. Safer streets and neighborhoods as well as Improved road safety provides expertise on & branding for CISCO Smart City. 19
  20. 20. Implementation of a Smart City 20
  21. 21. Add Value to Cisco o HOW WILL IT ADD VALUE ? o Expand our portfolio of competencies o Explore new market segment o Disruptive innovation o WHEN WILL IT ADD VALUE ? When Cisco will really acquire expertise and brand recognition for developing smart cities. o WHO WILL BE AFFECTED WITH THE ADDED VALUE ? o Citizens o R&D o Employment opportunities (International project) o WHERE WILL IT ADD VALUE ? o Innovation Business Unit o Extra perks with Government partnerships o WHAT WILL HELP IN ADDING VALUE ? o Mergers and Acquisitions o Client endorsement and recommendations 21
  22. 22. Five Principles for Delivering Value 22
  23. 23. Business improvement & Competitive advantage 23
  24. 24. IT Business Relationship 24
  25. 25. Use of Information Management 25
  26. 26. Use of Master Data Management 26
  27. 27. Use of Big Data & Social Media 27
  28. 28. Improve Customer Experience 28
  29. 29. Use of Business Intelligence 29
  30. 30. Compliance Impact & Needs 30 ● Console Access ● Logging and Syslog ● Terminal Access ● User Passwords ● AAA ● AAA Accounting - Commands ● AAA Authentication - Login ● Cisco respects and is committed to protecting customer’s personal information. CISCO privacy statements reflect current global principles and standards on handling personal information – notice and choice of data use, data access and integrity, security, onward transfer and enforcement/oversight. ● Part of the Global Export Trade team, the Strategic Product Group primarily directs and counsels product teams on export issues. ● The group also provides expertise on the export classifications of Cisco products to internal and external customers and to government agencies, as needed.
  31. 31. Suppliers & Alliances 31
  32. 32. Golden thread 32
  33. 33. 33 Process Structure IT Governance “Governance means establishing accountability while creating a model that balances operational excellence and innovation to enable business growth. Like most large IT organizations, Cisco is a strong advocate of using industry frameworks.”
  34. 34. IT Governance 34 A handful of principles define Cisco’s IT governance objectives and keep IT focused on priorities: 1. Business value and quality of solutions 2. Globalization 3. Architectural compliance 4. Security governance and compliance 5. Operational excellence
  35. 35. IT Governance: Risk Identified 35
  36. 36. Risk Management Strategy: Disruption of Service 36
  37. 37. Communication Plan for CISCO 37
  38. 38. Professional assessment 38
  39. 39. Smart City Strengths Network Infrastructure Global Outreach Robust financial results Weaknesses Global Economy Disruptive technology trends Decline in traditional business (storage devices) Opportunities Develop new business lines Expand partner network Consulting portfolio SO Strategies Partner with developing economies Invest in emerging technology WO Strategies In-house pilot projects Acquire emerging firms Enhance in-house cloud storage/solutions Threats Data Governance Policies Cyber attacks Disruption of Service ST Strategies Work with government agencies to develop policies Hire best talent + advance training to counter cyber attacks WT Strategies Develop agile framework to adopt latest technologies Internal technology audit to manage controls/defenses Super SWOT 39
  40. 40. Ansoff Matrix 40
  41. 41. Porter’s 5 forces Industry Rivals Buyers Substitutes SecuritySuppliers New Entrants Threat: Medium Threat: Low Threat: Medium Threat: High Threat: High Threat: Medium High Capital Investment Technology Expertise Geographic Limit High cost of services Laggard cities Lack of digital infrastructure Upgraded sensor network Lack of trusted partners Limited services Enormous private/public data Hacktivists Data sharing and utilization Drivers of smart city Supplier-chain monopoly High cost of equipment Supplier poaching Industry growth rate Size of competitors Exit barriers 41
  42. 42. Smart Cities – IT Strategy IT Factors AS-IS TO- BE People Connections to the Internet via : Devices – smartphones, tablets or PC’s Social Networks – Facebook, Twitter, LinkedIn or Pinterest Crime reporting via Social networks, alerts or manual reporting Connections to the Internet will be dynamic with creative use of technology Gartner: People will be nodes that transmit information. Body sensors, smart apps, live reporting and monitoring via smart cities, homes and workspace. Smart sensing of potential target zones and hot targets Data Use of data from various sources can be transferred to a platform such as IoT for processing or analysis Smart evaluation of real time data is limited to response time from IoT servers Data and analytics need clean data to show insights or decision supporting analysis Smart cities will collect, transmit, analyze data on the go and drive insights into reducing crime Connected things in smart cities will open up “Device Talk” to combine data and drive real-time insights Faster decision making with smart information will allow for advanced tactical responses from law agencies to prevent, control or mitigate situations 42
  43. 43. IT Factors AS-IS TO- BE Things Makes up of sensors, consumer devices or assets that communicate with the internet Smart data is not context driven Sensors and collected data need an active internet connection to transfer and analyze data Limited integration of sensors in equipments or daily use products – limits data monitoring and analysis Smart sensors can be placed at various locations to track, monitor and update law agencies regarding issues or conflicts Context aware devices will provide critical information regarding people, sustainable conditions, predict unsafe zones Sensors built into structures such as bridges can provide vital information Smart-sensing objects can be used to transmit real-time traffic updates with re-routing patterns Processes Digital cities have crime reporting processes that are dependant on human initiation Safety concerns, governance processes and lack of support from law enforcement for victims Processes do not maximize the potential of smart data or highly specialized devices ( FAA Unmanned Aircraft Regulations) Processes combined with People, Data and Things focuses on unlocking potential of Smart Cities Governance models to combat crime, increase awareness, ease of reporting via Device Talk Well phased deployment plan to develop smart cities Processes to prevent redundancies, mitigate risks, address security and privacy concerns and manage sensor outburst. Smart Cities – IT Strategy 43
  44. 44. Golden thread 44
  45. 45. Market Analysis and Demand “Smart City Market is Likely to be Worth a Cumulative $1.565 Trillion by 2020 “ - IBM 26 global cities and 90 sustainable cities by 2020. 45
  46. 46. Market Analysis and Demand 46
  47. 47. Market Demand 47
  48. 48. IT Service Design 48
  49. 49. Cisco - Service Blueprint 49
  50. 50. Smart City - Services 50
  51. 51. Technology RoadMap 51
  52. 52. Recent Technology Curve 52
  53. 53. Smart Cities 53
  54. 54. Smart Integration 54
  55. 55. Smart Collaboration 55
  56. 56. Business Model 56
  57. 57. Business Model‘Tomorrow starts here’ Improve safety in the cities Citizens empowerment Avoid waste of energy Better traffic management Attract new people in cities Beneficial returns on city tax and commerce Real-time data analytics BMC Software CA Technologies Citrix Dimension Data Hitachi Data Systems (HDS) IBM Microsoft Oracle Red Hat SAP VCE VMware Accenture Ltd Cap Gemini AT&T ... Network connection & access Smart City Solution Develop infrastructure Operation Research & Dev. Data Management Marketing Consulting like Dedicated teams Co-creation Multi-products sales Websites Mobile Apps Social Media Global Events Platform HelpLine Big cities (>250k inhab.) Public Sector City innovation dept. Private firm Staff IT infrastructure Intellectual properties Backup equipment Brand/Culture Local Company Global Outreach Consulting, Auditing, Ads, Data Analytics, Gain Competitive Advantage, Sell data insights Expertise to gain trust => so more customers, Sales Solutions, Software, H/W, Networking services, Subscription for extra services, Renting material Cost of sales for products, Cost of sales for services, Operating expenses, Marketing expenses, Maintenance 57
  58. 58. Business Model Smart City as a Service Monthly plan: ● Monitor your house $5 o Intrusion Alert ▪ Send Notification to police around your house ● Traffic & Parking information $3 ● Get report on the city $2 58
  59. 59. Business Model Alignment Develop expertise: o Network connection & access o Tech. platform o Smart City Solution o Operation o Research & Development o Data Management & analytics Be a differentiator: o Smart city as a service o Work with local company 59
  60. 60. Functional strategies Marketing Strategy 60
  61. 61. Target market o 1,900 cities throughout the world with populations of 250,000 or more o 26 excess 10 million inhabitants o Assumptions on potential smart city deployments based on city size: • 27% of the world’s cities are viable candidates for smart city solutions over the next 3 to 5 years. • Global market opportunity of $7.5 billion of new annual revenues for technology vendors • Small cities are ideal settings for pilot projects 61
  62. 62. Marketing Mix Analysis PRODUCT Smart City Solution Improve Safety & Energy consumption Experience Technology platform Network PRICE Big project with consequent ROI No big differences in pricing between competitors PLACE Multi- channel Internet Mobile App Website Wholesale Cities meeting PROMOTION Use sales forces to convince cities Create events to promote these solutions Advertising Recommendation Show results from previous projects PEOPLE Dedicated Team Management R&D Customer Service Employees PROCESS Customer focus IT Development Installation Service delivery Configuration Training Testing PHYSICAL EVIDENCE Previous smart city implemented Previous project Online experience Sales Buzz 62
  63. 63. Value Proposition ● City Management: ○ Quality of life indicators ○ Environmental sustainability ○ Economic development ○ Use intelligence and insight to build and operate municipal infrastructure. ○ Create work ● Citizens: ○ Live in a safe community with access to all smart city services. ○ Beneficial returns on taxes paid, reliable and useful services ○ Cost saving (energy, transportation..) ● Enterprises in the City: ○ Location in an environment that supports and promotes prosperity ○ New market, new opportunities => Productivity growth 63
  64. 64. Market Segmentation ● Geographic Segmentation ○ Psychographic/Demographic Segmentation ■ Smart Security Systems 64
  65. 65. Customer Satisfaction and Loyalty Customer satisfaction: ● Set customer expectation early ● Build trust ● Gain experience and reputation in the market ● Make interactive surveys & Use social media analytics to identify improvement areas ● Focus on customer experience ● Build customer loyalty Customer loyalty: ● Reward customers ● Create loyalty program ● Follow up ● Have dedicated team ● Personalized services 65
  66. 66. Functional strategies Financial 66
  67. 67. Revenue prediction Baltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+ Revenue 2016 2017 2018 Tax revenues $4M $8M $12M Monthly Subscriptions $3.7M 5% of the population $11.2M 15% of the population $18.6M 25% of the population Energy saving $2.6M $2.6M $2.6M TOTAL (per year) $10.3M $21.8M $33.2M TOTAL (over 3 years) $65.3M 67
  68. 68. Expense forecast on 3 years Baltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+ CAPEX Build Wifi-Network (100% of the city) $9.2M Buy Smart Street Light (LEDs+Camera) $9.6M Operation Cost (Installation) $17M TOTAL $35.8M OPEX Solution Platform(Data Warehouse+Analytics) $3M/year Cost of labor and materials $0.6M/year TOTAL (per year) $3.6M TOTAL (over 3 years) $46.6M 68
  69. 69. Smart city revenue by solution 69
  70. 70. Revenue Repartition For a project like Baltimore Cisco can make around $32M per year for technology vendors and partners Traffic incident management, smart lighting, smart parking, safety & security. 70
  71. 71. Functional strategies Delivery/Operation 71
  72. 72. Distribution Channel Physical Channel: o Events o Meeting o Infrastructure Electronic Channel: o Websites o Mobile Apps o Social Media o HelpLine 72
  73. 73. Customer Service Strategy Differentiation: o Customize our solution for each city o Address specific customer needs (Focus) o Try to maintain the level of risk at the minimum • Improved Security • Private networks • Multi-layer complex architectures o Provide training for police dept. and people involved in the processes o Constantly improve our solution by collecting feedbacks 73
  74. 74. Human Ressources Strategy: Reduce turnover through retention incentives and employee engagement o Hire talents to develop and enhance solutions • Experienced people for the management • Fresh people for the innovation ▪ Develop key skills o Hire and train people to provide free training for police & fire department o Hire and train technicians to maintain the infrastructure o Offer competitive salary to avoid information leak and keep our employees o Empower employees 74
  75. 75. Outsourcing What? o Operation • Construction ▪ Infrastructure ▪ Command center • Equipment ▪ Smart light ▪ Cable o Maintenance Who? Choose trusted and local partners to avoid issues like: • Weak infrastructure • Security issues • Delay in the project • Problem while doing maintenance Strategy: Outsourcing for operation efficiency 75
  76. 76. Implementation Strategy Rollout Plan 76
  77. 77. Formulating Implementation Strategy People Process Technology “Every community is different, with different needs and different approaches. But communities that are making the most progress on these issues have some things in common. They don't look for a single silver bullet; instead they bring together local government and nonprofits and businesses and teachers and parents around a shared goal.” – President Barack Obama Prioritize Goals Project Scope and Phase Project Boundaries & Timelines Key Deliverables Project Owner and Stakeholders Conduct Feasibility Study + What are others doing? Lessons Learnt. Collaborate … 77
  78. 78. Implementation Strategy People Process Technology Project Scope and Phase Project Boundaries & Timelines Key Deliverables Project Owner and Stakeholders Current Stakeholders of Citizen Services – Crime Monitoring. interface with cities like Boston with real- time crime monitoring ASIS – TOBE with high-level requirements. Skills, Partners, Interaction with current infrastructure, Cybersecurity Who is not impacted? What is not included - Criminal Court Processing. Timelines Constraints Timelines , Pilot by 2016 License Fee , SLA, Key Players Key Skills, Training, Coordination Customer care. metrics, Balanced Scorecard Application, Metrics, Data constraints, Phased deliverable , Data Standards & Repository, Standardized Processes Data quality, Platform , Metrics, Monitoring Dashboard* – *Inspired Smart London Vision. Initial support and Testing availability Funding , Metrics Funding, Metrics, Feedback Funding, Metrics, Feedback 78
  79. 79. Implementation Strategy – Development Collaborate & Feedback Analysis and Document Analysis of Alternatives Design with focus on Innovation & Standardization Develop Test Implement (Roll Out) Waterfall AgileIntegratedStrategy 79
  80. 80. Implementation Plan – Deployment With SDLC , Gantt Chart for Deployment, Change Management and Training 80
  81. 81. Implementation Strategy Incorporate feedback Analysis and Document Analysis of Alternatives Design Develop Test Implement (Roll Out) Analysis and Document Analysis of Alternatives Design Develop Test Implement (Roll Out) Analysis and Document Analysis of Alternatives Design Develop Test Implement (Roll Out) Iteration 1 Iteration 2 Iteration 3 81
  82. 82. Project Rollout Dashboard Delay Alert On Time Coming Up 82
  83. 83. Measurement and Metrics 83
  84. 84. Metrics - What are we looking at ... 84
  85. 85. Metrics - ISO 37120 85
  86. 86. Some of the benefits envisioned for ISO 37120:2014 include: 1. More effective governance and delivery of services 2. International benchmarks and targets 3. Local benchmarking and planning 4. Informed decision-making for policy makers and city managers 5. Leverage for funding by cities 6. Framework for sustainability planning 7. Transparency and open data for investment attractiveness 8. Comparable data for city decision-making and insight 86 Metrics - ISO 37120 stated Benefits
  87. 87. Metrics Traditional 1. Project Metrics 2. Enterprise Risk Metrics 3. IT Risk and Compliance Metrics 4. City Performance (ISO 371202014) • Financial management • Human capital management • Education etc. 87 New 1. Social networking and Microblogging 2. Lessons Learnt Processes and Approaches 3. Knowledge Management - Wikis 4. Data Quality metrics 5. Process Standardization and Improvement 6. IT – Process, Data, Platform, Things 7. Innovation 8. Product development 9. Sales and marketing 10. Supply chain management
  88. 88. ISO 37120:2014 Metrics 88
  89. 89. ISO 37120:2014 Metrics 89
  90. 90. 90 ISO 37120:2014 Metrics
  91. 91. ISO 37120:2014 Metrics 91
  92. 92. ISO 37120:2014 Metrics 92
  93. 93. Project Metrics Tactical Measure Question Answered Sample Indicator Time How are we doing against the schedule? Schedule Performance Index (SPI) = Earned Value ÷ Planned Value Cost How are we doing against the budget? Cost Performance Index (CPI) = Earned Value ÷ Actual Cost Resources Are we within anticipated limits of staff-hours spent? Amount of hours overspent per software iteration Scope Have the scope changes been more than expected? Number of Change Requests Quality Are the quality problems being fixed? Number of defects fixed per user acceptance test Action Items Are we keeping up with our action item list? Number of action items behind schedule for resolution 93
  94. 94. Enterprise Risk Metrics APAQ 94
  95. 95. IT Risk and Compliance Metrics 95
  96. 96. Issues 96
  97. 97. Issues/Challenges 1. Retrofitting existing legacy city infrastructure to make it smart 2. Financing smart cities 3. Availability of master plan or city development plan 4. Financial sustainability of Smart City Infrastructure 5. Technical constraints including Cyber security 6. Multi-tier governance 7. Dealing with a multivendor environment 8. Capacity building program 9. Reliability of utility services – For implication in Crime reduction, Reliability has to be 100% 97
  98. 98. Conclusion & Recommendations 98
  99. 99. Conclusion - Current 99
  100. 100. Conclusion - Cont’d “Baltimore city budget is running $12.4M surplus” – Baltimore Sun Dec 6th 2015 Police overtime costs, meanwhile, continue to come in high. A new patrol schedule for officers, rolled out earlier this year, is helping to bring down costs. Kleine projects nearly $33 million in spending on overtime, down from $38 million. The city had budgeted $20.5 million for overtime. 100
  101. 101. Conclusion Component Cost as communicated in Functional Section Build Wifi-Network (100% of the city)+Monitoring Lab $9.2M Buy Smart Street Light (LEDs+Camera)+ Sensors $9.6M Operation Cost (Installation) $17M Solution Platform(Data Warehouse+Analytics) $3M/year Energy Saving / Visibility Connectivity Reduction in Response Time by Officials Crime Recorded - Criminals off Street Better Personnel Allocation + Reduction in Patrol Costs 24 X 7 Monitoring of High Risk Areas and Priority area like schools. Reduction in Crime Rate Infrastructure for Smart Connected City Smarter, Safer & Energy Savvy Community 101 Energy Saving
  102. 102. Recommendations 1. Move towards Smart Framework 2. Prioritize - on the area’s and CLEAR Project SCOPE - What are we trying to achieve? 3. Identify right stakeholders 4. Identify Build and Operate or other financial business models like Crowdsourcing for Design. 5. Implement standardized, flexible solution with opportunity for expansion 6. Top management has to promote and support the initiative 7. Monitor Multivendor environments for timelines, collaboration, compatibility and Licensing Costs. Evaluate Tax benefits for investments for Public and Partners. 102
  103. 103. Thank you! Questions? 103
  104. 104. internet-things-and-living-smart-cities/72742172/ y.pdf the-biggest-they-ve.html y.pdf References 104
  105. 105. service-overview.pdf References 105