Smarter	Cities	for	
Smarter	Growth
When	you	get	the	chance,	start	smarter

Lynn Reyes
lynncreyes@ae.ibm.com

© 2013 IBM Co...
Three	things.

“The 19th century was a
century of empires… the 20th
century was a century of
nation states … the 21st
cent...
What’s going on?

World Population

20 50

>75%

50%

20 07


50%

90%

19 90

10%

<25%

Profound change
Contribution to...
What’s going on?

All cities are competing more intensely for talent because all industry
sectors in the modern economy ar...
What’s going on?

Increasing expectations …

People and their communities expect more …
Security

Access

Opportunity

Pro...
What’s going on?

… and new forms of collaboration

6

© 2013 IBM Corporation
The choice is theirs

The city’s enabling environment is shaped by many factors
considered by talented people and knowledg...
A virtuous circle

A climate conducive to skills, creativity and knowledge-driven growth
can create differentiating and en...
Imperative

Assure future generations that investments return “100X” later on
while surfacing net new opportunities to do ...
Yet …

The traditional nexus of economic growth is characterized by human
capital predominantly acting as a substitute to ...
Critical to cities’ competitiveness

The new nexus implies that human capital and innovation are playing
a rapidly increas...
Master planning is a relatively new concept

Even with new cities, technology is often left out – yet every aspect of
a ci...
The opportunity

Purposeful city development with growing emphasis on I-C-T
Urban Planning & Development
Phases

Adding th...
The opportunity

We all have the power to know

“We will go beyond … to systems that enable humanity to reach its
greatest...
Smart vs. smarter

IBM has developed a technology reference architecture for starting
smarter, but there’s more
Urban	Plan...
Smart vs. smarter

Many think about “smart” only in the context of the communications
technology infrastructure

Urban	Pla...
Smart vs. smarter

But, does connectivity and its enabling technologies really mean
smarter?

People and their communities...
Smart vs. smarter

A city is – a living organism – a system of systems that transcends
multiple lifetimes
A smarter city i...
Smart vs. smarter

Technology advances are creating new solutions and new markets

19

© 2013 IBM Corporation
Smart vs. smarter

Here’s where it gets really interesting
Role of Information
 “See”, “Discover”
 Understand, learn
 D...
Smart vs. smarter

We can collect data from almost anything …

30 billion

1 billion

15 petabytes

RFID tags
embedded int...
Smart vs. smarter

… and provide information to cities and communities ...

https://www-304.ibm.com/connections/blogs/ibmi...
Smart vs. smarter

… aggregate, visualise and draw insights from it …

City Recycling
River Quality

Urban Water Loss

Bui...
Smart vs. smarter

… and reveal how city systems affect each other …

24

© 2013 IBM Corporation
Smart vs. smarter

We can tell people the impact of the choices they are
about to make …
Start
Time

Purpose

7:27

7:39

...
Smart vs. smarter

… appeal to their sense of place and community …
Resident
View

City
View
26

© 2013 IBM Corporation
Smart vs. smarter

… offer new ways to form markets

27

© 2013 IBM Corporation
© 2013 IBM Corporation
Smarter means different things to different people

What are the common underlying themes of the Smarter City?
In an incre...
So what?

For Arab Future Cities, a profound opportunity to “future ready” your
cities in unique and differentiating ways ...
New cities have a unique opportunity to start smarter

Let the information guide what your next moves should be
Integratin...
When you get the chance, start smarter

Look beyond infrastructure to systems-in-context to frame solutions;
there’s alway...
When you get the chance, start smarter

It is better to start with an overarching city ecosystem model and then
use proven...
When you get the chance, start smarter

… then chart a shared roadmap – a “living” path of progress – in
collaboration wit...
Lessons	
from	the	
Smarter	
Cities	
journeys	
of	others

Know and
understand what
you have to offer
and how it
compares wi...
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Smarter Cites: When you get the chance, start smarter (Keynote at Arab Future Cities Summit)

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Smarter Cities-When you get the chance, start smarter
Keynote at the Arab Future Cities Summit

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Smarter Cites: When you get the chance, start smarter (Keynote at Arab Future Cities Summit)

  1. 1. Smarter Cities for Smarter Growth When you get the chance, start smarter Lynn Reyes lynncreyes@ae.ibm.com © 2013 IBM Corporation
  2. 2. Three things. “The 19th century was a century of empires… the 20th century was a century of nation states … the 21st century will be a century of cities.” 1 The Century of the City 2 IBM’s view of smarter 3 Smarter by design Trends and opportunities for purposeful development of new cities … and implications for growth Beyond infrastructure – people, services, systems, patterns … Ways to start smarter Wellington Webb Former Mayor, Denver 2 © 2013 IBM Corporation
  3. 3. What’s going on? World Population 20 50 >75% 50% 20 07  50% 90% 19 90 10% <25% Profound change Contribution to Urban Growth (2010 to 2015)  as % of  Contribution of talent to growth in economic value added Percent, average annual rate 0.45 0.35 Traditional Manufacturing Traditional Services All sectors Modern Manufacturing Modern Services 0.25 0.15 1978-1987 3 1988-1997 1998-2007 2008-2017(f) 2018-2027(f) © 2013 IBM Corporation
  4. 4. What’s going on? All cities are competing more intensely for talent because all industry sectors in the modern economy are becoming more talent-intensive Regulatory framework Workforce Taxation Economic Development 4 Real estate Natural disaster Incentives Business costs Infrastructure Living environment Knowledge & innovation © 2013 IBM Corporation
  5. 5. What’s going on? Increasing expectations … People and their communities expect more … Security Access Opportunity Prosperity Progress Walls, Roads Water, Energy Jobs, Education Lifestyle, Culture “Place” Time Leaders set conditions for serendipity and deliver … 5 © 2013 IBM Corporation
  6. 6. What’s going on? … and new forms of collaboration 6 © 2013 IBM Corporation
  7. 7. The choice is theirs The city’s enabling environment is shaped by many factors considered by talented people and knowledge-intensive companies Built and natural environment Salaries +Taxation Public safety Government services 7 Health and social services City’s human capital and innovation enabling environment Cultural / Living environment Transport Energy + water Career opportunities Knowledge and innovation © 2013 IBM Corporation
  8. 8. A virtuous circle A climate conducive to skills, creativity and knowledge-driven growth can create differentiating and enduring new value and new capital Retain Enable Competencies, knowledge and creativity Energy and Water Attract Create Middle East esp Source: IBM Global Center for Economics Development analysis, IBM Institute for Business Value 8 © 2013 IBM Corporation
  9. 9. Imperative Assure future generations that investments return “100X” later on while surfacing net new opportunities to do so along the way Brand Value Financial / Operational Value Strategic Value Societal / City Value 9 © 2013 IBM Corporation
  10. 10. Yet … The traditional nexus of economic growth is characterized by human capital predominantly acting as a substitute to other types of capital Natural Capital Human Capital Old Nexus Physical Capital 10 Economic Activity and Growth Technological Innovation Financial Capital © 2013 IBM Corporation
  11. 11. Critical to cities’ competitiveness The new nexus implies that human capital and innovation are playing a rapidly increasing and direct role in driving economic growth Natural Capital Human Capital Physical Capital Financial Capital an dc ap it a l Creative Innovation New Nexus Technological Innovation rm fo In n tio a c ta pi a l CREATIVE AND TECH INNOVATION AND Old Nexus Br NEW AND OPTIMIZED CAPITAL We talked about human capital driving creative innovation and related jobs; now let’s move to technology … 11 © 2013 IBM Corporation
  12. 12. Master planning is a relatively new concept Even with new cities, technology is often left out – yet every aspect of a city has a related technology – existing cities know this only too well Water Transport Energy Municipalities lose as much as 20% of their water through leaks. A major traffic jam in China caused gridlock for 60 miles and lasted ten days A blackout in the Northeast of the US affected over 55 million people. 12 © 2013 IBM Corporation
  13. 13. The opportunity Purposeful city development with growing emphasis on I-C-T Urban Planning & Development Phases Adding the I-C-T dimension Life Cycle Management Population Integration Institutions Integration Urban Systems and Services Buildings Physical Infrastructure Design Master Planning 13 © 2013 IBM Corporation
  14. 14. The opportunity We all have the power to know “We will go beyond … to systems that enable humanity to reach its greatest potential for human creativity, innovation and ingenuity.” - IBM Global Technology Outlook 2010, Frontiers of IT 14 © 2013 IBM Corporation
  15. 15. Smart vs. smarter IBM has developed a technology reference architecture for starting smarter, but there’s more Urban Planning and Development Phases Life Cycle Management Population Integration Institutions Integration Urban Systems and Services Buildings Smarter City ICT Domains Physical Infrastructure Design Master Planning Others Resou rces Utilities Ed Social Pub Safety City Admin Ind & Econ Culture City operations, consolidated response, event mgmt Health Technology Reference Architecture Transport Starting Smarter • Consolidated analytical and information infrastructure • Consolidated telecommunications infrastructure • Consolidated mobility infrastructure • Consolidated commerce infrastructure • High performance computing centric capabilities 15 © 2013 IBM Corporation
  16. 16. Smart vs. smarter Many think about “smart” only in the context of the communications technology infrastructure Urban Planning and Development Phases Life Cycle Management Population Integration Institutions Integration Urban Systems and Services Buildings Physical Infrastructure Design Master Planning Information and communications technology Transport and utilities network Physical spaces and buildings 16 © 2013 IBM Corporation
  17. 17. Smart vs. smarter But, does connectivity and its enabling technologies really mean smarter? People and their communities expect more … Security Access Opportunity Prosperity Progress Walls, Roads Water, Energy Jobs, Education Lifestyle, Culture “Place” Time Leaders set conditions for serendipity and deliver … 17 © 2013 IBM Corporation
  18. 18. Smart vs. smarter A city is – a living organism – a system of systems that transcends multiple lifetimes A smarter city is… Do you know what  it’s known for  today?  Mobile connectivity Remote connectivity Accessible Transportation Healthy Citizen participation Housing Privacy Distinctive Communications Safe Vibrant Commerce Investment Do you know how  your city is  experienced?  18 18 Education Innovation Healthcare Energy Learning Culture Public safety Sustainable What do you want  your city to be  known for?  Efficient Natural resources How can you capitalize  on new forms of  collaboration? © 2013 IBM Corporation
  19. 19. Smart vs. smarter Technology advances are creating new solutions and new markets 19 © 2013 IBM Corporation
  20. 20. Smart vs. smarter Here’s where it gets really interesting Role of Information  “See”, “Discover”  Understand, learn  Define  Prioritize  Make choices  Act / catalyze / coordinate action  Measure, evaluate Role of ICTs  Low and high-level mediation within and among urban systems  Sensing urban system activity  Visualizing, analyzing, optimizing  Better manage  Transparency among people, government, commerce  Tell the story  New forms of urban infrastructure  2-way interaction beyond portals 20 © 2013 IBM Corporation
  21. 21. Smart vs. smarter We can collect data from almost anything … 30 billion 1 billion 15 petabytes RFID tags embedded into our world and across entire ecosystems Camera phones in existence able to document accidents, damage, and crimes Every day, 15 petabytes of new information are being generated. This is 8X more than the information in all U.S. libraries. Digital and physical infrastructures of the planet are converging 21 © 2013 IBM Corporation
  22. 22. Smart vs. smarter … and provide information to cities and communities ... https://www-304.ibm.com/connections/blogs/ibmireland/entry/innovative_new_data_sharing_network_to_create_commercial_opportunities1 22 © 2013 IBM Corporation
  23. 23. Smart vs. smarter … aggregate, visualise and draw insights from it … City Recycling River Quality Urban Water Loss Building C02 ing tand ers Und tion rma Info fro ata D 23 sor sen m ms yste ds s an © 2013 IBM Corporation
  24. 24. Smart vs. smarter … and reveal how city systems affect each other … 24 © 2013 IBM Corporation
  25. 25. Smart vs. smarter We can tell people the impact of the choices they are about to make … Start Time Purpose 7:27 7:39 HBW 8:35 8:47 NHBO 9:30 9:55 NHBW 10:56 11:15 NHBO 11:23 11:31 NHBW 12:22 12:33 NHBO 12:53 13:09 HBW 14:00 14:04 NHBO 14:29 14:48 NHBW 19:28 25 End Time 19:47 NHBO © 2013 IBM Corporation
  26. 26. Smart vs. smarter … appeal to their sense of place and community … Resident View City View 26 © 2013 IBM Corporation
  27. 27. Smart vs. smarter … offer new ways to form markets 27 © 2013 IBM Corporation © 2013 IBM Corporation
  28. 28. Smarter means different things to different people What are the common underlying themes of the Smarter City? In an increasingly instrumented, interconnected and intelligent world, a smarter city is … … a city, district, metro area or urbanizing region … … with communities of people and organizations / businesses that interact … … using pervasive and integrated information from ICT-enabled urban systems to … … address common issues for shared outcomes How? Make optimal use of information available today to: • Better understand and control city operations; • Optimize the use of limited resources; • Balance social, commercial and environmental needs; • Measure (and spur) progress and outcomes. 28 © 2013 IBM Corporation
  29. 29. So what? For Arab Future Cities, a profound opportunity to “future ready” your cities in unique and differentiating ways and lead Smart metering in Malta helps citizens pay only for the energy they use Predictive analytics helped slash Richmond’s crime rate by 40% in one year In Taiwan, 99% of smarter trains run on time Miami-Dade County Public Schools have increased academic achievement across the board lower costs in Reggio Emilia via collaborative education platform Endessa, Spain utilizes realtime monitoring & smart meters to reduce energy use by 20% Amsterdam Airport Schiphol 20 moves million more bags every year with a smarter baggage system In Delft, developing enhanced flood prediction and protection systems for coastal areas and river deltas Smart cards helped increase capacity 2x at Singapore Land Transport Authority, to over 20M fare transactions per day © 2013 IBM Corporation
  30. 30. New cities have a unique opportunity to start smarter Let the information guide what your next moves should be Integrating and using information within and across Professions that Professions that plan, design, build, plan, design, build, operate, manage operate, manage and renew cities and renew cities Denizens in cities Denizens in cities (and their (and their communities) communities) Soft and hard Soft and hard infrastructures infrastructures New data-driven frame(s) of reference  Apply lessons learned from / Avoid the mistakes of the past  Take advantage of capabilities of the present  Deliberately design for a sustainable, vibrant and vital future 30 © 2013 IBM Corporation
  31. 31. When you get the chance, start smarter Look beyond infrastructure to systems-in-context to frame solutions; there’s always temptation to start with operational solutions Soft infrastructure Shared Outcomes Wealth Opportunity Independence Choice Safety Sustainability Others … Citizens, Employees, Innovators, Visitors, Residents … Starting Smarter Technology Reference Architecture Others Resou rces Private Sector Utilities Ed Social Community Orgs Pub Safety Third Sector Culture Health City Systems (their competencies, capabilities, processes) Transport Public Sector City Admin Ecosystem of organizations (and their roles) Ind & Econ People (and their roles) A system provides context Health City operations, consolidated response, event mgmt (Urban / City Systems) • Consolidated analytical and information infrastructure • Consolidated telecommunications infrastructure • Consolidated mobility infrastructure • Consolidated commerce infrastructure • High performance computing centric capabilities Information and Communications Technology Transport and utilities network Hard infrastructures Physical spaces and buildings Leadership and governance, networks and community organizations, innovation forums Source: Adapted. Rick Robinson, “The New Architecture of Smarter Cities”, Blog: The Urban Technologist 31 © 2013 IBM Corporation
  32. 32. When you get the chance, start smarter It is better to start with an overarching city ecosystem model and then use proven assets to address common solution areas … IBM Approach Component Business Modeling Overall Design Business Models Aligned with Business Scenarios  and Key Performance Indicators City Ecosystem Actionable Business Architecture Transportation Public Safety Water Core Systems Local Govt … Marketing & Customer Manage ment Pro du cts Sto re a nd Chan nel Distribution & W areho using Busine ss Ad min istration Merc handis e St rategy Multi-channel S trat egy C onsumer Segmentation Merchandis e Planning As sortment Planning D ct ire Cust omer Relationship Strategy B rand Management D ist ribution, W arehouse, Supply Chain St rategy Store & C hannel Strategy Product D ev elopment (e. g. Private Label) C orporate St rategy Financial Management & Planning Business of IT Finance Payment • • • • • Water Mgmt Citizen Health Energy Environment Urban planning Human Capital Social Services Education Culture and Recreation Judicial and Justice etc. Shared Services Trans portation Planning St ore Desi gn & Lay out • • • • • LOB Planning P ric ing S trat egy Mark eting Strategy & Planning Channel D es ign & Lay out Supplier R elat ions hip P lanning (Logis tics ) Loc at ion S trat egy Sourc ing P lanning Cust omer Behav ior M odel ing Price / Prom ot ions Management St ore & Channel Prof itability Supplier Perf ormanc e Management Market & C ompetit or R esearch Control Inventory Management Segmentation Management S uppl y Terms A dminis trat ion & Pricing I n-bound Logist ics St ore Operations Management Legal & R egulatory C ompliance Intra-c ompany & Out bound Logi stic s Real Es tate & Constructi on Management Transact ion M anagement C lientelling Product Lifecy cle Trans portation / F leet Management R isk Management Call C enter C ampaign Management Customer Serv ice Allianc e Management Bus iness Performance R eport ing C us tomer Satisf ac tion Meas urement & Management Managem ent (P LM) Allocations Planogram R eplenis hment W arehous e Management Dis tribution Center Operat ions Serv ices Delivery Loyalty Price C hanging Purc has ing / Sourc ing Floor Stock ing, Back Room Task Mgt D emand Forecasti ng Ex ecute PO & Trade Funds Management W ork forc e Management Cust omer Communications S tock Ledger H R Management (Career D evelopment , Training, Recruiting) HR Administ ration / Payrol l Corporat e Audit Yard Management Time & A ttendance Corporate A ccount ing (GL AP, Treas ury , etc Sal es Audi t Mas s Mark et ing & Advertising R et urns & Rec lamati on Indirec t P rocurement Los s Prevention Target Mark et ing Product Track & Trac e Af ter Sales Services P OS Ex ec ut ion / C as h Management C us tomer R eposit ory Mas ter Data Management Trans portation / Fleet Operat ions Multi-channel C all Center Credit Operat ions PR & Invest or R elati ons IT S yst ems & Operations … Operations Models 32 IT Models • • • • Procurement Asset Management Tax Collection etc. Investment and Initiatives © 2013 IBM Corporation
  33. 33. When you get the chance, start smarter … then chart a shared roadmap – a “living” path of progress – in collaboration with others City Master Plan (physical, spatial, etc.) “Digital” Master Plan (informational, digital, temporal, technological, etc.) City Operational Governance City Information “Backbone” City Services & Enforcement Engagement & Interoperability “Platforms” 33 Continuous Improvement & Adaptation Innovation Infrastructure © 2013 IBM Corporation
  34. 34. Lessons from the Smarter Cities journeys of others Know and understand what you have to offer and how it compares with other cities 1. Define your city’s ecosystem model and understand how it has performed 2. Take stock of your city’s assets, unique strengths, weaknesses 3. Understand “talent” needs and expectations … what’s important 4. Co‐define and decide how your smarter city will be experienced 5. Identify city systems (+ smarter enablers + data) used in each experience Removing barriers is much harder than making sure unnecessary ones aren’t built 34 Systems thinking plus integrated design discipline are essential 6. Integrate into the city’s master plan, downstream design, roadmap, etc. 7. Execute! Only when the change is visible, “brand” it © 2013 IBM Corporation

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