We have discussed various examples from cities around the world and how they: Use information to make more insightful and better decisions Predict problems to resolve their causes proactively Coordinating all of the city resources to operate more effectively These are merely a few examples from the hundreds of solutions we have driven to date. In fact, Smarter Cities are able to leverage this same approach to address both challenges and opportunities that require the involvement of departments across the city. Cities can improve the performance of individual departments as well as coordinate across the departments. And every bit of efficiency we produce alleviates some of the strain on city budgets, freeing up time and resources to continue helping the city become more competitive and driving more prosperity.
In Smarter Cities across the world today, city leaders understand all of these trends. The understand that they have opportunities to leverage technology to help increase the prosperity of their residents. They are: Using information to make more insightful and better decisions Predicting problems to resolve their causes proactively Coordinating all of the city resources to operate more effectively All of these things are possible today, because we live on a Smarter Planet. Let’s talk about how our planet is changing and how cities can take advantage of these changes.
The second conclusion that we gathered from our Smarter Cities conferences is that technology can help with this challenge of increasing prosperity. We can address this goal in two ways. First, we can use technology to gather and make use of all of the information that’s surrounding us today. When city leaders use the right information, they can make better decisions and have more insight into the impacts of their decisions. But truthfully, the majority of our cities have more information than they no how to use. Without the right technology to support their decision making, they are often making important choices without all of the available insight. Second, we can use technology to integrate and coordinate the different parts of the city to deliver better outcomes. A City is a very complicated system. In fact, some would call it a system of systems, relying on the interactions of different departments and individuals both within and outside of the city structure. Often, these groups need to work together. For example, a problem with flooding or sewer overflow may cause a power outage in part of the city. This power outage could, in turn, shut down traffic lights causing transportation problems, which require assistance from the police and public safety officials to maintain productivity. That’s at least 4 different departments working together. There are many more examples, all of which show the importance of collaborating to reduce the impact of challenges. When departments are not integrated, the city needs to spend more money and time than is necessary. The result? Fewer resources available to thelp the city improve prosperity and quality of life.
On our smarter planet, we are able to collect and use information from almost anything. For example we have over 30 billion RFID tags and 1 billion camera phones that can share information from around the city. City residents and visitors can use their camera phones to send pictures of problems that they see to help cities repair issues more quickly. Cities we are getting even more innovative. In some cities, we have put sensors on manhole covers to measure the flow of drainage in the sewer systems. When we notice that the flow under the manhole covers has slowed too significantly, it can be an indication that something might have broken or be blocking that part of the system. Identifying and fixing that problem early can help to ensure that larger problems such as sewer overflows and floods do not happen. These are real examples, but it’s not necessary to use sensors to collect data. There’s plenty of data all around us today…
The final way our Smarter Planet helps us to drive prosperity in our cities is by coordinating resources to execute as effectively as possible. All of us are interconnected better than ever before with 2 billion people on the internet, 4 billion mobile phone subscribers and over 1 trillion connected devices. But connectivity isn’t enough. We have to use this connectivity to coordinate all of our resources to optimize the outcomes of our efforts. Let’s see how cities are doing this today.
The second way our smarter planet is helping cities become smarter is by predicting problems to enable proactive responses. In the past, we had models that predicted trends. But these models were often showing trends over weeks or months. Or they looked at the general trend for large areas. Many of these models were limited by available computing power, or data management capacity. But today, we can manage data more effectively than ever before and we can perform calculations with astounding speed. As a result, Our predictions have evolved from looking at traffic patterns over the coming months, to predicting a traffic jam only 1 hour into the future based on the current traffic information. Additionally, detailed weather models allow us to predict where storms may cause downed power lines to within a square kilometer This predictive capability is changing the ways cities operate. Let’s look at a few examples.
There are four stages in power grid, including power generation, power transmission, power distribution, and power consumption, which form a complex system covering a very wide area and running lots of mission-critical tasks. To ensure safety and improve efficiency, different kinds of sensors will be deployed in different power grid stages, with different requirements on transmission distance, data throughput and communication latency. There are many challenges. One challenge is to provide high flexibility with high efficiency in a very wide-area. Another challenge is to ensure low latency, high reliability and high accuracy across different layers (e.g. data transmission, data analysis, and command dispatch).
Today SCADA systems are expensive, and are mostly used in transmission grid, not distribution grid. For distribution grid, clients may choose to start from GPRS based solutions for communication with distribution terminal units. To reduce cost and improve reliability/management, some clients have started to turn to private network based solutions such as WIMAX or LTE based private networks.
Run and Manage - IoT provides new dynamic infrastructure for managing the huge scale & complexity Design and Build (in the context of specific Smarter Planet domains) - IoT enables high-value knowledge-based Smarter Planet services Design & Build IoT infrastructure to help provide the right data to the right application, process and people at the right time Situational Awareness: What events are of interest and how they should be correlated? Transactional Transparency: What is the appropriate sampling rates for transactional visibility? Process Automation & Integration: Automating processes based on information from physical world
Existing Internet-of-Things related standards range from general standards to industry-specific standards. Examples of industry-specific standards include IEC 61850 and IEEE DNP3 for smart power grids; WMMP for mobile networks; and Continua for healthcare.
This recharacterization of the industry value chain will dramatically reshape the value proposition among energy, service and product providers, as well as customers of these enterprises and the value model of the industry as a whole. A value model is the combination of value provided to customers and the reciprocal value received from customers in return. In the case of the electric power industry, the traditional value model involves customers receiving reliable and universal power at reasonable rates, for which they offer providers reciprocal value in the form of intermittent (usually monthly) revenue. Today, customers are demanding more from their providers than merely reliable power at reasonable rates. Our global utility consumer surveys show consumers want more control over their expenditures and environmental impact and more information about their energy usage – both in content and frequency. While customers are becoming more demanding, they also have much more to offer in return to power providers and other participants than just payment for energy consumed. Some of these new elements of reciprocal value are primarily operational in nature; demand response, load profile flexibility, and distributed power and storage (where the customer has these on their premises) allow for optimization of system performance and asset utilization. Others, such as information on energy consumption patterns, other consumer demographic and behavioral information, and access to personal connections/networks for marketing purposes, are the foundation for new revenue sources for companies able to effectively leverage the information. Not only are there many more types of reciprocal value, the very nature of the value has changed from an intermittent source of reciprocal value to a continuous flow. As the number and frequency of reciprocal value exchanges grow, the complexity of the ecosystem increases and the total amount of value in the system available for capture by ecosystem participants increases dramatically.
Many platforms are single-sided platforms, with a seller at one end and a buyer at the other and, often, intermediaries (distributors) between them that transfer the product from buyer to seller without changing it substantively. The electric power network has historically operated as a single-sided platform. Until the advent of wholesale generators, the business operated as the simplest possible form of a platform – the manufacturer (generating utilities), by virtue of owning the entire value chain from the point of input of fuel to the point of entry into the user’s premises, sold directly to the customer with no intermediaries; in fact, some utilities also controlled the fuel production itself. The emergence of independent generators and pure energy retailers moved the power transmission and distribution network closer to a position where it did act in an intermediary fashion, transporting power from wholesalers for purchase and use by end users.
A shopping mall is an example of a multisided platform: manufacturers, retailers and shoppers all benefit from having a single location where they can meet and transact business. Malls provide common facilities, like restrooms and parking, which help lower costs to stores that otherwise would have to individually provide them. Since these economies help reduce costs to retailers, prices can be lower, benefiting shoppers. A wider variety of stores and services brings more shoppers; more shoppers bring higher sales volumes for manufacturers and lower costs for retailers (and, in theory, also lower prices for shoppers). Thus, some element of network economy is bundled into the shopping mall value proposition. The platform owner (the mall operator) extracts some of this value in the form of rents to store owners and, in some cases, service fees to shoppers. (There are also organizations not directly involved in the mall transactions – credit card issuers, for example – that benefit and take revenue from the transactions.) But without all of the parties being involved, none would get any of the benefits. Other examples of multisided platforms include newspapers (with readers serving as one side and advertisers another) and health maintenance organizations (with patients being one side and doctors and pharmaceutical companies serving as other sides). Yet another example is video games (with players being one side and developers, publishers, content providers, licensors, tools and middleware providers making up the other sides).
3 million people (4,5% of Italy) 150.000 ha total (0.5% of Italy) 80.000 ha green areas buildings in 30% of the area (almost 1/3 unauthorized) 5,3 Mtoe consumptions (3,6% of Italy) 13,3 Mton CO2 (3% of Italy) 2,4 million vehicles 1,8 ton waste (0,6 kg/pers, 20% RD)
The first conclusion is: Even though there are so many problems across cities, the primary objective of our city leaders is to increase the prosperity for everyone in their cities. They want to establish great centers of business and culture. With strong education and health services. That are both growing dynamically, and are increasingly sustainable. Yes, the city leaders know they have to repair the leaking water infrastructure. But it’s extremely important that all of us focus on how we help these cities to become more competitive and sustainable. These are significant challenges. And they will take creativity and innovation to accomplish.
SMART CITY 3 novembre
Systems thinking per la crescita sostenibile delle nostre città Carlo Maria Drago IBM Italia
<ul><li>Challenges </li></ul><ul><li>Population Growth </li></ul><ul><li>Aging infrastructure </li></ul><ul><li>Declining tax revenue </li></ul><ul><li>Opportunities </li></ul><ul><li>Economic Development </li></ul><ul><li>Quality of Life </li></ul><ul><li>Sustainability </li></ul>Public Safety Government Administration Education Healthcare Transportation Energy and Utilities Social Services Smart cities need to address priorities through a systems approach
A Smarter City is one that increases prosperity by… Using information to make insightful decisions Predicting problems to resolve them proactively Coordinating its resources to operate effectively
Technology can help increase prosperity Turning Information into Insight Integrating systems and people to deliver outcomes
Camera phones in existence able to document accidents, damage, and crimes 1 billion RFID tags embedded into our world and across entire ecosystems 30 billion Of new automobiles will contain event data recorders collecting travel information 85 % Instrumented Interconnected Intelligent We can collect information from almost everything
Mobile phone subscribers globally 4 billion People on the internet by 2011 2 billion Connected devices in the “internet of things” 1 trillion Intelligent We can coordinate people and resources effectively Instrumented Interconnected
Or one quadrillion operations per second can be calculated 1 petaflop Of new information generated every day and can now be managed 15 petabytes Of granularity for weather prediction can be modeled and measured 1 square kilometer Interconnected We can predict problems and respond quickly Instrumented Intelligent
Turning information into insights: Internet of Things <ul><li>Internet-of-Things (IoT) provides the end-to-end infrastructure for a smarter planet, driving from data to information, from information to insights. </li></ul><ul><li>IoT will streamline the opportunities for collaboration based on a common understanding of real-time scenarios </li></ul><ul><li>Highest benefits are demonstrated to come from cross-domain challenges </li></ul>Internet of Things
Common Architecture of IoT Infrastructure <ul><li>IoT access appliance and application gateway are two cornerstones of the IoT infrastructure </li></ul><ul><li>IoT infrastructure provides distributed management functions to support IoT end-to-end services </li></ul>IoT Application Gateway Physical World Wide Area Network IoT Access Appliances Physical World Sensor Network IoT Service Platform Smart supply chain Smart grid Smart healthcare Smart building app1 app2 app3 Data Center IoT Application Gateway Wireless Network Edge Appliance for IoT IoT Access Appliance Enhanced Middleware for IoT IoT End-to-End Services (Management & Operation) New Technology for IoT 50,000,000,000 devices 500,000 units (1:1000) 500,000,000 units (1:100)
IoT Scenarios Show a Pattern of Customer Pain Points <ul><li>Lack of capability to design, implement, deploy, operate and manage complex IoT systems </li></ul><ul><li>Lack of situation awareness leading to unacceptable responsiveness and resilience </li></ul><ul><li>Requirement of end-to-end security </li></ul>Food Safety Water Management Grid Transportation Home Healthcare Logistics
Example: Grid Monitoring Transmission Distribution and Consumption Generation <ul><li>Differentiating technologies (e.g. PowerEN, wireless, management, security, and analytics) </li></ul><ul><li>IT-based platforms for integration and flexibility </li></ul><ul><li>Global leadership in Smarter Planet ecosystem </li></ul>Our Capabilities <ul><li>End-to-end monitoring and control infrastructure </li></ul><ul><li>Infrastructure flexibility for application innovations </li></ul><ul><li>Easy and low-cost infrastructure management </li></ul><ul><li>End-to-end infrastructure security </li></ul>Client Pain Points IoT Edge Appliance IoT Access Appliance IoT Access Appliance IoT Access Appliance IoT Access Appliance IoT Edge Appliance Control Center IoT Application Gateway Control Center IoT Application Gateway Control Center IoT Application Gateway
Wireless Distribution Grid Monitoring <ul><li>Distribution grid monitoring, for ~150 cities, with ~100 substations deployed per city, and ~200 terminal units managed per substation </li></ul><ul><li>Large-scale device and network management </li></ul><ul><li>Private wireless network for monitoring & control </li></ul>Client Requirement <ul><li>IoT infrastructure with access appliances, edge appliances and application gateways </li></ul><ul><li>Integrated management solution to automate grid monitoring and reduce management cost </li></ul><ul><li>Wireless system for capability and reliability </li></ul>Our Solution Feeder Terminal Unit Transformer Terminal Unit Feeder Terminal Unit Transformer Terminal Unit IoT Application Gateway (1: 100) IoT Edge Appliance (1: 200) SCADA Wimax Substation Wimax Substation Control Center Security Management IoT Access Appliance
Example: Chronic Disease Management WAN IoT Application Gateway Health Record Bank Community Health Kiosk EKG SaO2 Blood Glucose EEG physician IoT Access Appliance Home Health Kiosk Oximeter Pulse IoT Access Appliance Emergency Hospital Holter Blood Pressure Disease Management Applications Remote Monitoring Health Portal <ul><li>Scalable, resilient and secure infrastructure for chronic disease management </li></ul><ul><li>Support of applications with personalized guidelines for various chronic diseases </li></ul><ul><li>Continuous remote monitoring and real-time intervention </li></ul><ul><li>Health kiosks at communities and homes </li></ul>Client Requirement <ul><li>IoT infrastructure with access appliances and application gateways </li></ul><ul><li>I ntegrated service management capability </li></ul><ul><li>Evidence based clinical decision support </li></ul><ul><li>Reliable and secure backend for storing health records and performing analytics </li></ul>Our Solution monitoring alarm event personalized guidline security diagnosis assistance privacy event personalized guidline security
Example: Container Management Headquarter Data Center Asset Mgmt Port Rail Truck Ship GPRS ActiveRFID, Zigbee 3G/GPRS ActiveRFID, 433M, Zigbee Depot Regional Data Center ActiveRFID, 433M VPN Multi-modal Transport Track & Trace Planning <ul><li>position </li></ul><ul><li>direction </li></ul><ul><li>speed </li></ul><ul><li>temperature </li></ul><ul><li>humidity </li></ul>VPN <ul><li>IoT infrastructure with access appliances and application gateways, with access appliances installed across wide geo regions </li></ul><ul><li>Integrated service management capability </li></ul>Our Solution <ul><li>Enhance asset management with end-to-end visibility (e.g. reducing container empty ratio) </li></ul><ul><li>Improve operation efficiency with advanced planning and dynamic decision making </li></ul>Client Requirement Device Mgmt Track & Trace Device Mgmt Track & Trace Device Mgmt Track & Trace MT
IoT Capabilities Required for Effective Solutions IoT Access Appliances <ul><li>Support common sensor communication technologies </li></ul><ul><li>Manage resource-constrained sensor devices and network </li></ul><ul><li>Detect and handle security issues of managed devices </li></ul><ul><li>Provide local intelligence, and data store/processing capability </li></ul>Complexity from heterogeneous, geo-distributed & large-scale deployment IoT Application Gateways <ul><li>Perform unified data mediation </li></ul><ul><li>Support naming, addressing and reach-ability management for sensors </li></ul><ul><li>Provide security services, e.g. encryption/decryption, and AAA (authentication, authorization & accounting) </li></ul><ul><li>Manage WAN connections </li></ul>IoT End-to-End Services (Enabled via Service Management Functions at Edges) Design, implementation, integration, deployment, operation and management of IoT systems End-to-End Security Security with insecure components and environment Resilience Availability with unreliable devices and changing environment Collaborative Intelligence Model-based intelligence distributed across edges
IoT Presents a New Service Opportunity for Enabling Reliable, Secure and Intelligent IoT Infrastructures <ul><li>Scalable </li></ul><ul><li>Automatic </li></ul><ul><li>Intelligent </li></ul><ul><li>Distributed </li></ul><ul><li>Real-time </li></ul><ul><li>Integrated </li></ul><ul><li>Predictive </li></ul><ul><li>Actionable </li></ul><ul><li>System Health Check </li></ul><ul><li>Run diagnostics </li></ul><ul><li>Smart Change </li></ul><ul><li>Patch management </li></ul><ul><li>Auto Provisioning </li></ul><ul><li>Firmware & software </li></ul><ul><li>Device Management </li></ul><ul><li>Auto configuration </li></ul><ul><li>Auto Identification </li></ul><ul><li>Tag & register </li></ul><ul><li>Audit & Provenance </li></ul><ul><li>Assurance alerts </li></ul><ul><li>Incident Handling </li></ul><ul><li>Automatic resolution </li></ul>Design and Build <ul><li>IoT enables high-value knowledge-based Smarter Planet services </li></ul><ul><li>Situational awareness </li></ul><ul><li>Transactional transparency </li></ul><ul><li>Process automation and integration </li></ul><ul><li>Predictive decision analytics </li></ul>Run and Manage Wide Area Network IoT Access Appliances Physical World Sensor Network IoT Service Platform Smart supply chain Smart grid Smart healthcare Smart building app1 app2 app3 Data Center IoT Application Gateway <ul><li>Security & Compliance </li></ul><ul><li>Policy enforcement </li></ul>
IoT Service Scenario: Device Diagnostics <ul><li>Perform system diagnostics, and automatically identify device failures </li></ul><ul><li>Streamline incident handling, and automatically resolve device failures </li></ul>IoT Application Gateway Perform health check Isolate device Raise e xception Processes and A pplications Perform automatic r esol ution (e.g. r eset devices ) Respond (e.g. success/f ailure c ode ) Service Desk G enerate p roblem t icket s (device / a ppliance ID, d iagnostic s info rmation) IoT Access Appliance System Health Check Incident Handling Report device e rror 2 1 3 4 5 Incident Handling System Health Check
IoT Service Scenario: Device Firmware Upgrade Service Desk Select devices for firmware upgrade Send firmware upgrade requests to corresponding access appliances Upgrade firmware for on-line devices, and record upgrade requests for off-line devices Device group (Firmware to be upgraded) IoT Application Gateway IoT Access Appliance Check pending requests for waking-up devices, and perform firmware upgrade accordingly IoT Access Appliance <ul><li>Perform group-based batch firmware upgrade operations </li></ul><ul><li>Handle off-line devices when firmware upgrade cannot be performed temporarily </li></ul>Auto Provisioning Auto Provisioning Auto Provisioning Auto Identification 3 2 3 4 1
IoT Service Scenario: Security Incident Detection & Handling i nfected devices IoT Application Gateway IoT Access Appliance Processes and A pplications Incident Handling System Health Check Auto Provisioning Auto Provisioning Contain infected nodes Notify applications Perform security upgrade 4 3 4 2 <ul><li>Detect infected nodes via cyber security analytics </li></ul><ul><li>Perform security countermeasures automatically </li></ul>System Health Check Service Desk Incident Handling Detect infected nodes with cyber security analytics 1 1 2
IoT Access Appliance and Application Gateway Push Datacenter Capabilities into Network Edges Local data store Local data processing IoT Access Appliance Management Analytics & optimization Data Center Universal sensor data capture Service management Threat detection and prevention App App App Process integration Registration App component App component WAN IoT Application Gateway Service Bus Security Accounting Mediation Management Historic data
New Open Industry Standards for IoT Technologies Need to be Developed <ul><li>Identify which existing standards should be used and where new open industry standards are required </li></ul>Network Layer Service Layer Sensor Layer Open Geospatial Consortium IETF 6LowPAN IEC 61850 IEEE DNP3 IETF ROLL OPC OASIS DPWS EPCglobal RFID ETSI M2M IETF XMPP China Mobile WMMP 3GPP MTC Continua Industry Specific General Illustrative Examples of IoT Standards
Integrating people to deliver outcomes: collaboration for the new energy consumer value model Traditional Industry Value Model Emerging Industry Value Model At the same time customers are becoming more demanding, they actually have much more to offer in reciprocal value to energy and other product/service providers.
… a shift from single-sided to multi-sided application platforms The emergence of the smart grid will provide the means for a multi-sided applications platform to develop Electric utilities have operated as single-sided platforms serving electricity users for over 100 years Marketing Value Intelligence Cash Applications Distributor/ Intermediary Manufacturer/ Seller End Users creates value (products and services) creates value (access to products and services) Platform Owner Application Providers creates value (applications) Device Providers creates value (physical devices) Energy Management Service Providers End Users creates value (information on products and services) creates value (links to buyers) creates value (expertise in energy management) Non-Energy Retailers creates value (links to buyers) Generation/ Transmission/ Distribution creates value (power)
Multi-sided platforms outside the energy industry are becoming reference models for today smart grid projects Sources: Eisenmann, T., G. Parker, and M. Van Alstyne, “Strategies for Two-Sided Markets,” Harvard Business Review, 2006; Evans, D., A. Hagiu, and R. Schmalensee, Invisible Engines, MIT Press, 2006; IBM Institute for Business Value analysis
Water Management Work order optimization Usage Analytics Predictive Maintenance Leak Detection Flood Management Smart Metering Contamination Mgmt Water Security Storm water Mgmt Wastewater Mgmt Asset Management Traffic/ Trasportation Data Integration Traffic Prediction Route optimization Bus Arrival Prediction Planning and Simulation Road User Charging Asset Management Integrated Fare Mgmt Multi-modal Mgmt Revenue Management Fleet Optimization Public Security Video Surveillance Crime Information Predictive Policing Dispatch Cyber Security Fusion Centers Border Security Communications Emergency Response Non-Emergency Response Operations management City-wide Dashboard Geo spatial mapping Data modeling & integration Cross-Agency Collaboration Situational Awareness Domain Analytics Event & KPI Management Incident Management Consequence Management Integrating systems to deliver outcomes: The City Operation Center
City Operation Center address priority both on urgency and effort needs justr Optimize Maximize Low Urgency Minimum Effort Moderate Urgency Moderate Effort High Urgency High Effort Non Emergency Management Emergency Management Crisis Management Operations Centre
Active Workflows: Intelligent Operations Center Automated Emails Integrated System Monitoring Roles & Permissions Data drill down Data Exporting Event correlation detection Click to Action Mouse over Pop-ups Event Mgt. Progress Reporting Executive Executive Operator Operator Intelligent Operations Center basic functionalities
The city of Rome has developed a master plan for a sustainable energy future based on smart grids
The goal of City Leaders is to increase prosperity… ...in a Smarter Planet