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Road to Resilient Cities: Don de Loach - Centri Technology Infrastructure Week Presentation
- 1. Don DeLoach President & COO, Centri Technology Co-Chair, Midwest IoT Council The Road to More Resilient Cities
- 3. The ”Array of Things” Project
- 4. The Future of IoT • The market will shift from a focus on IoT- enabled products to the IoT-enabled Enterprise • The key role of data and in particular: –Considerations regarding governance, ownership, privacy, and stewardship • The keys to leverage will be the deployment architecture with particular regard to data primacy and analytics
- 5. Resiliency
- 6. Stability
- 7. Security
- 8. Agility
- 9. Scalability
- 10. Profitability
- 11. Sustainability
- 12. Equitability
- 13. So What?
- 14. People
- 15. Education
- 16. Framework
- 17. Concentration
- 18. Security
- 19. Privacy
- 20. Governance
- 21. Resiliency
- 22. Thank You
Editor's Notes
- By way if context, I would note that I understand that a Resilient city is a specific term Rockefeller grants - initiatives Designed to help cities prepare for and address acute shock - - survive, adapt and grow in spite of chronic stress and acute shock The chronic stresses seem to be more behaviors – unemployment, Acute – Earthquakes, terrorism, etc. Encompassing, but beyond specifically the smart city space – I believe resiliency has meaning relative to how we see the world and our future As My friend Chris Rezendes says, Resiliency is the killer app. In that regard, this morning I will talk about more generally I would also note that I am pulling from numerous articles and research form the public domain, some of which I am quoting directly, but woven into a larger narrative. (100 resilient cities Website)
- Key Message – We really do care about this. We want to be driving the adoption of IoT regionally for a better quality of life
- Key message - learning about bringing the level of instrumentation in cities to a new level. Enabling better data to make better decisions
- Key message – passionate about IoT – data is the key. We can do more (and better) when we know more Talk (a little, not long) about the evolution of IoT Speak to Pilots to Production
- When we think about resiliency, we need to think about scale, complexity, and friction Where the systems are physical, there is friction Where the systems are purely digital, far less friction The friction might be regulatory, or policy based The friction could be cultural or organizational - The friction might be technical The organic and inorganic matter collectively represent friction The artifacts of what have been built physically are the hardest things to change physically Like changing the physical landscape that has been in place over generations The first role of industry is to understand when it comes to the physical or carbon footprint on the planet, it was much for industry to change and mitigate those activities that cause degradation as it is for individuals That’s where there is some tension, because the industry will say “they are just following the market” “We don't make markets - we respond to them” – this is a cop out - a convenient excuse to continue to to the wrong thing There are profit motives that create imbalances – so we have to consider HOW we measure ourselves. Auto industry – Oil and Gas... Conflicts We have to find leadership to be better than that - to say something more than or better than we are just responding to markets” Top business schools are good at doing this doing good at this On the input side - start from outcomes - you must synthesize on social impact. This is critical, but might be tough to accomplish. A starting point might be the UNSDG’s being elevated to the power and importance of generally accepted accounting principles financial outcomes Revenue, Ebitda, EPS - all will continue Its taught brilliantly in business schools What needs to be elevated with that - now - KPIs tied to UN environmentally sustainable goals This introduces the idea that we have outcomes that are not necessarily direct dollars and cents first or dollars and cents forward You have to say - another set of outcomes as important or more important than GAAP If that’s the outcome - you need to prove value through your share price All these metrics that re monetary - good, but cant be the primary or exclusive driver forever Cant be the only metrics If that is the outcome – that’s how you have to train the entrepreneurs The role of industry and entrepreneurs - From ground zero we have to accept and assume 1) the definition of success not only truly GAAP - add the UNSDG’s - So you have to work your way all the way back to where the inputs are... Critical to pursuing this > Students need to be trained immediately about Cyber Risk and Climate risk so they can build into their tools, products, experiences, services, business models, and operating models relative to the life cycle of these organizations 2) So whether a startup or F500 - if you do not produce the SDG’s you will not get what you need. industry needs to redefine entrepreneurship. This will, in turn, should define access to and impact regarding Revenue, capital or risk products. Is this ambitious? Maybe. Maybe not. If enough capital sources adopt these beliefs and act on them, it will drive a different set of behaviors. In the future the vast majority of capital for spend or investment will be run by individuals who or more female than male, more concerned with sustainability than not, so if you want Capital - you better produce the UN SDGs or something like it as much as you produce income statement, cash flow statements, balance sheet And - since you are not going to get to scale with anything without digital, you have to have cyber risk nailed down because if the systems become more dependent or more cyber-physical than cyber or physical > the two key risk vectors or opportunities going forward are to elevate cyber risk as a key input to a business plan or investment scenario and climate risk - if your focus on those two thing and have the digital tools produce not only GAAP but impact. The digitizing of our world is happening, and on an unmistakable path forward. With that there are obvious risks, like security, and slightly less obvious ones, like the concentration of digital rights and power falling into the hands of an oligarchy of companies or organizations at the expense of others, and that will begin to compromise the ability to achieve success in the context of the elements of resiliency – namely - stability, security, agility, scalability, profitability, sustainability, and equitability.
- Let’s start with Stability. We have to ask ourselves the obvious questions? - How do you get stable cities? - What defines a stable city? - Look at the I/F? Is it intact? Getting Drinkable water to the citizens of a city seems like table stakes, right? If you look around today, there are signs of progress, but greater signals of where we need to improve. We all saw what happened in Flint. - Then there is Toledo, Ohio, gets its drinking water from the western end of Lake Erie. IN 2014 Toledo had a bloom of bacteria formed there producing a dangerous toxin called microcystin. City officials warned half a million residents against drinking municipal water. At high doses, the toxin can cause liver failure. America’s water infrastructure is not even close to being stable. According to the American Society of Civil Engineers (ASCE), there are an estimated 240,000 drinking water main breaks per year in the U.S. When you look at any city you have to also ask: How do we take the less and the more desireable areas of a given city and address them without sacrificing its overall competitiveness? How do we strike the right policy balance? How do we achieve stability across the entire city as opposed to parts of it?
- What makes a city secure? Is Chicago Secure? Is NY? Is Detroit? Is Jaurez Mexico? - Is Security a function of Crime? Is it physical? - What about digital? - If we stick to the most basic elements, for cities we should always start with the infrastructure. How secure is our water supply? Can it be contaminated? How secure are our energy sources? Can they be marginalized? Is the exposure physical, digital, or both? How secure are our roads and transportation system? Is the exposure physical or digital? Potholes are physical. We know that. But the traffic system is increasingly digital today, and will progress 100 fold in the future. So how important is security in ensuring the transportation system functions correctly? - Can we have a resilient city if the transportation system, or the energy resources, or the water supply are at risk? Absolutely not. The linkages between the physical and the digital will converge on all levels. Security might suggest cameras everywhere, with big brother looking over our shoulder. Then one might ask – in today’s world, does security compromise privacy? Maybe – but not necessarily We will return to this. And we think about security on a grand scale – but to the average person it might be entirely different. Large scale security might be les impactful than personal security, so for instance: Crossing and an intersection? Technology can play a role As people move through the city A key focus of AoT – understanding patterns But what we do know is that greater levels of instrumentation yield greater levels of understanding and the ability to - hopefully – make better decisions.
- What makes a city AGILE? As urbanization trends continue - cities face the complex challenge of delivering improved quality of life to its citizens using ever more constrained resources. With 557,000 local governments spending $4.5 trillion each year on service delivery, large investments in new and high technology infrastructures are expected to help meet these challenges. But government is not known for highly agile processes. To deliver these services, cities are faced with a considerable challenge in becoming agile global procurers and regulators of technology on a large scale, in a marketplace that is currently highly inefficient and fragmented. The challenge lies in effectively communicating the emerging needs of cities, as well as communicating challenges, discovering, evaluating, procuring and scaling solutions. Sascha Haselmayer is the founder and CEO of Citymart.com. They have developed a platform to link cities with solution providers dramatically improving the accessibility of information and diffusion of information on available products and services. They develop tools for cities and solutions providers to link together for faster, more efficient innovative process The desired outcomes better services at lower costs delivered to market faster And the cost of doing business for the solutions provider drops dramatically – as much as 90% The idea is that cities will use data to increase leverage in delivering more efficient and effective services to it’s citizens. One EXAMPLE of data leveraged for increased agility is in Chicago: Chicago not the only city with peaks and valleys with use of public transit Night cubs game, etc. - uncomfortable.. But capacity is UNSAFE Long term – more train cars and new train lines – NOT AGILE More agile – use analytics and behavioral economics to change behavior – alter travel patterns = smooth the peak CTA – did this – changed rider behavior by 18% using various incentives But part of the very real challenges to being agile are the forces against status quo. A big example of this is the “I’m not a scientist” mentality adopted by people, often (and sadly) politically expedient– that climate change is not real.. Therefore efforts to become more agile are undermined. James Russell is an architecture critic, journalist, teacher and consultant. He's the author of the book, The Agile City, In it, he states The goal has to be a realistic transformation of America's energy consumption – and that means – like many other things – we have to abandon conventional thinking and think differently The imperative to think differently is not long term – it is immediate. This has implications, now and in the future, for land use, transportation, and coordination of public and private investments
- We are unprepared for the speed and scale the world is about to move Lux Research, an innovation research and advisory firm, has a report that suggests the world will deploy 1 trillion sensors by 2020. The U.S. alone buys over 3 billion batteries a year. We have not built 1 trillion batteries in the history of humankind, yet we’re supposed to make enough batteries to power 1 trillion sensors within three years? That creates practical implications for simply monitoring the deployed battery based devices throughout a given city. One way to begin to address this is wireless power Overcoming these type of power and related issues allow for the city to begin to effectively deal with the acquisition of all types of data at scale Mass data aggregation will show patterns and correlations that provide empirical evidence of many things unkown today. That’s dangerously optimisThat said - if urban data was the answer, then collecting it would eliminate traffic, poverty, crime, etc. tic Having the data is only a part of the equation. Smart cities need leadership who will stand behind their data, and use it confidently as the basis for how and why cities make decisions. Let’s return to water. climate change and urban population growth, are dramatically affecting urban water management. On one hand, growing populations water demand and on the other, climate change has increased water variability Again Infrastructure is a key focus. Global water infrastructure: old and was built for the demand of cities decades ago. Much of the water infrastructure cannot meet the challenges of today, including population growth and climate change. Traditional centralized, networked systems of drinking water supply, storm water drainage, and wastewater disposal are not sufficient. In reality, water is demanded, and storm and waste water are generated in decentralized, disorganized locations. Instead of sourcing water from sources farther away or deeper underground, what if we asked how to reduce our need? How do we reuse what we have, or recycle what we’ve used? Water management philosophy in cities has to evolve Water for human consumptive uses, like drinking, cooking, bathing etc. are the major concerns for urban areas. Globally, about 2.5 percent of the water in the world is freshwater, and only 32 percent of that is accessible. Although there is enough water in the world for everyone, the distribution of the resource is the one of the biggest concern. Moreover, growing cities get thirsty fast, requiring exponentially more water for their people and their needs. Last, from a scalability standpoint – architecture and deployment models for IoT make a huge difference. As IoT and data mature to platform levels at cities – we may see greater leverage from the underlying sensors Leverging the Utility value of the data One other notion is City to City scale – if a cohort of cities work together (diverse) work on a solution – if you are Cleveland – not in the cohort – why not learn from the initiative and draft off the learning from the initiatives > ties to profitability and sustainability
- In speaking about profitability relative to cities, we draw a parallel to business in the context of being well run and financially sound. Advanced technology is increasingly being used to become more efficient and effective and better engaged with their residents Cities are not established to be PROFITABLE There is a lot going on – controlled shrinkage of Youngstown, Detroit – bankruptcy – controlled shrinkage The key is that cities have to be on sound financial footing That allows for investment in the future That allows for maintaining and investing in the infrastructure That allows for delivery of services with the citizens – ALL citizens_ and makes for a better quality of life
- In city terms – sustainability is generally meant in the context of environment Green buildings, Bike lanes, Carbon footprint A smart, connected city should enhance liveability — which includes everything from quality of work and caliber of jobs, to arts and culture, to public facilities and transit, and transport options. The inaugural Sustainable Cities Index, compiled by the London-based Center for Economics and Business Research, bases its ranking on how cities fare in three areas: social (people), environmental (planet) and economic (profit.) - Europe. Its cities lead on sustainability. Aside from Frankfurt and London, Copenhagen, Amsterdam, Rotterdam, Berlin and Madrid make the top 10 list. While Frankfurt tops the Profit sub-index, followed by London, Rotterdam does best in the People category because of its high literacy rate and a good work-life balance. Frankfurt and Berlin score highest for Planet factors because of their waste management and low levels of air pollution. - North America. Its cities fare best on Profit factors because of their relatively high income per capita and ease of doing business. That sad - None make the top 10 overall. Toronto ranks highest overall at 12th place. Boston and Chicago, ranking 15th and 19th respectively, score highest among U.S. cities. In the Profit sub-index, San Francisco is the highest-ranked U.S. city, scoring 7th, while all U.S. cities appear in the top half. Yet in the Planet category, when carbon dioxide emissions are considered, every North American city sits in the bottom half — alongside cities in the Middle East. We have to make better progress.
- Perspectives on equitability will vary city by city There are a number of well intentioned smart city inititaives rthat have been slowed, compromised, or abandonded for a variery of reasons. There are also retrofitted smart cities, which focus on attracting investment to business districts and urban neighbourhoods. They add smart features such as e-waste recycling, e-rickshaws, smart water meters and more to existing infrastructure. Unfortunately, this approach can create winners and losers, depending on who accesses and pays for these developments. More often than not, the “losers” are those whose interests are not protected by smart city policies. Smart cities should find ways to encourage more grassroots efforts to engage with marginal citizens Many such policies already exist at an international level. The UN rights to livelihoods and entrepreneurship, rights for indigenous people, the UN-Habitat network on secure land rights for all, the UNESCO convention for safeguarding intangible cultural heritage and the UN’s guidelines for power sharing – all of these call for the use of socially inclusive urban development processes. Smart cities may be even more important in developing countries – there are cultural implications that vary widely, but the list of needs and the opportunity for positive impact can be enormous.
- So given what we have discussed, what are the key considerations relative to taking action?
- The ability to leverage the opportunity in the future, cyber physical world has as much or more to do with people that it does technology. We have to change how we think Maybe we should consider smart cities as integrated platforms, entwining systems, people, and processes. it requires that cities become the provider of the enabling infrastructure; residents ideally provide input to both problems they want solved as well as the desired solutions We have to re-think how we interact with citizens, and the meaning and substance of smart cty initiatives n the context of the well being of all citizens - now and in the future
- In order to change how we think, we need to learn Education will play a key role, and not when kids are in grad school, but at the youngest levels Think about how thoughts are formed We are not born racist or sexist. We are not born pre-disposed to a certain religion or any cultural bas - we learn form an early age and form the basis for our principles as a result. We have to understand there is a better way, then teach that early and consistently
- That consistent framework will suggest there is more than just money. A rising tide can lift all ships. Not about anti capitalism at all - about being smart. We have had the opportunity to learn from past mistakes - so why keep making them They key is to strive for a better world in every way, and we have an opportunity in front of us, but we have to be willing to confront the big issues GAAP and traditional models are. Not going to be enough. We need to change the framework - adding in the UN SDG’s would be a good starting point. We will begin to see examples where this is being done.
- One of the main issues is concentration of wealth and power. Massive concentration of data intro an oligarchy of companies undermines society as a whole. The road to a resilient society, the road to resilient cities is not paved by concentration of power and wealth. That de-stablizes. That makes our communities less secure, less agile, and certainly less profitable. Tim berners-Lee recently said “The fact that power is concentrated among so few companies has made it possible to weaponize the web," He believes "today's powerful digital economy calls for strong standards that balance the interests of both companies and online citizens." "This concentration of power creates a new set of gatekeepers, allowing a handful of platforms to control which ideas and opinions are seen and shared." The recent net Neutrality ruling is another example for concern relative to concentration of power and resources.
- Re-touch on security relative to Infrastructure Talk about the reach of security and power, footprint, and bandwidth implications Talk about re-thinking security – what it means to be secure Physically, digitally, financially environmentally…
- Talk about the choices and tradeoffs of privacy Point to GDPR Point to Facebook At a higher level, there needs to be choice around buying something without it being tracked by my bank or loyalty program, or the ability to go off the grid while still accessing the services and infrastructure of the city. Talk about what privacy in the future world means in terms of people and collaborative communities How the ecosystem works - or can work - without compromising privacy What we see as a business inhibitor – GDPR – can acrtually be an enbler Anonos – Digital Twin > Varient Twn We have to be creative, and we have to re-think the problems inn the context of our future
- Data is the battle line Governance is the enabler to get the right data to the right constituent in the right way First receiver Abstract the creation of the data form the consumption of the data Data Ownership Data Stewardship Data Leverage Microshare > It is a very basic concept – but people struggle with it relative to IoT (Silos) This speaks back to concertation and the role that industry and government must play in reaching the right equilibrium This also speaks to technology architecture and understand what deployment models will provide the opens we need to truly make progress
- Information is not equivalent to knowledge, Resources matter We’re still struggling to protect rights on the internet We have an enormous opportunity in front of us – which is equal to the enormous challenges we face If we meet these correctly, we can overcome the challenge and live in a better world we all help create If we fail to learn the lessons from past mistake, the challenge will be too great We have to think differently We need t adjust our models beyond GAAP to include the UN SDG’s We have to understand an avoid the massive concentration of resources for the good a a few at the the expense of the broader population. We need to understand the implications of Stability Security Agility Scalability Profitability Sustainability; and Equitability When we do that, we build the road to Resilient cities, and to a resilient planet