Nirvesh Sooful
Chief Executive Officer (CEO)
African Ideas
Living in a Hyper-connected World – How Cities
Need to get Smar...
Innovation Development Empowerment Action Solutions
African Ideas – who we are
• Strategic consultancy helping Governments...
Innovation Development Empowerment Action Solutions
Introduction – who am I?
• Involved in the IT industry for over 25 yea...
Innovation Development Empowerment Action Solutions
Scene Setting
4
Ubiquitous Information Access
1950 1960 1970 1980 1990...
Innovation Development Empowerment Action Solutions
More than ever, human life revolves around the city
One hundred years ...
Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
6
Municipal Policing
Urban ...
Innovation Development Empowerment Action Solutions
In 2000 City of Cape Town had to merge 7 previously autonomous local
g...
Innovation Development Empowerment Action Solutions
• Lack of / Poor service delivery (water, sanitation, electricity, ref...
Innovation Development Empowerment Action Solutions
Outstanding debt payments for municipal
services
• Improved visibility...
Innovation Development Empowerment Action Solutions
Cash Position - City of Cape Town
June 2002 to July 2006
0
500
1,000
1...
Innovation Development Empowerment Action Solutions
Lack of Capacity
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 0...
Innovation Development Empowerment Action Solutions
Lack of / Poor service delivery (water, sanitation,
electricity, refus...
Innovation Development Empowerment Action Solutions
Creating Citizen Value creates Citizen Loyalty.
Lack of communication ...
Innovation Development Empowerment Action Solutions
Government officials who spend time focusing on their
personal busines...
Innovation Development Empowerment Action Solutions
Help deal with poverty and unemployment
• Large disparity in the socio...
Innovation Development Empowerment Action Solutions
Violation of MFMA & Supply Chain Mgt - results in tender irregularitie...
Innovation Development Empowerment Action Solutions
Mayor
fights
cash
crisis
Effective Service Delivery and confidence in
...
Innovation Development Empowerment Action Solutions
Implementing effective ICT in the Public Sector can help
deal with
• L...
Innovation Development Empowerment Action Solutions19
However, that is only the start …
Innovation Development Empowerment Action Solutions
Well Run
Opportunity
Inclusive
Caring
Safe
20
Municipal Policing
Urban...
Innovation Development Empowerment Action Solutions
Broadband
21
Innovation Development Empowerment Action Solutions
BroadbandWestern Cape Broadband – Proposed core backbone
22
Innovation Development Empowerment Action Solutions
Western Cape Broadband – Access network coverage area
23
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
25
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
26
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
27
WIFI – Mitchells
Plain Phase 5 Cove...
Innovation Development Empowerment Action Solutions
Public Internet & Wireless mesh
28
WIFI – Mitchells
Plain Phase 5 Cove...
Innovation Development Empowerment Action Solutions
Source: Bosch Internet of Things and Services Lab
Cities of the future...
Innovation Development Empowerment Action Solutions
Cities of the future: key issues
3030
hedonometer.org
an instrument th...
Innovation Development Empowerment Action Solutions
Cities of the future: key issues
3131
• Interconnected
Systems and the...
Innovation Development Empowerment Action Solutions
Source:http://www.slidesha
re.net/gleonhard/data-is-
the-new-oil-publi...
Contact Details: nirvesh@africanideas.co.za, www.slideshare.net/nsooful
Living in a Hyper-connected World – How Cities
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Living in a Hyper-Connected World – How Cities Need to get Smarter and More Digitally Enabled

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Cities are where the action is. That's where innovation is happening. A city is an interconnected system of systems. Infrastructure, people, processes and technology make a city. In modern cities, there's a lot of data about everything. Lots of sensors are already deployed everywhere - in buildings, roads, and utility grids; and lots of new information-based processes are in place. Everything is more information-rich, so you have to think about information as another significant resource you use to manage city life. Citizens are also more connected than ever before, they have access to a lot more information, and have powerful platforms of their own. Big data, mobile, social media, cloud, digital inclusion, open data, broadband, etc. are powerful forces that will impact on cities now and in the future - creating both opportunities and challenges for cities. This case study explores the digital enablement of one large South African city.

In 2000, the newly formed metropolitan City of Cape Town adopted the “Smart City” strategy, which was a turnaround strategy for the city aimed at information-enabling all key business processes in the city and embarking upon a modernisation programme to deliver services based on real information emanating from the ground (operations). This case study looks both at what has been done in the 13 years since the Smart City strategy was adopted, as well as what needs to be done in a future hyperconnected world. In addition to being of relevance to government leaders, the presentation should be of relevance to all CIOs and business leaders on how today’s new technologies, global competition and new business models will shift the focus from an internal efficiency view to a more outside-in view of the digital world and the role of their organisation within it.

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Living in a Hyper-Connected World – How Cities Need to get Smarter and More Digitally Enabled

  1. 1. Nirvesh Sooful Chief Executive Officer (CEO) African Ideas Living in a Hyper-connected World – How Cities Need to get Smarter and More Digitally Enabled 1
  2. 2. Innovation Development Empowerment Action Solutions African Ideas – who we are • Strategic consultancy helping Governments to accelerate the benefits of ICT enabled change through transformation of the public sector and the wider economy. Operates primarily in the ICT4D space. • Key projects – Western Cape Broadband – Strategy & Digitisation Readiness Advisory Service – Western Cape Municipal ICT roadmap – Municipal Shared Service Solution (Cloud based) – ICAN Centres (Digital Inclusion) – WIFI Mesh (Rural – Saldanha, Urban – Khayelitsha & Mitchells Plain) – Rethinking Libraries (Libraries of the future) – Community spaces of the future – E-enabling Education (utilising broadband) 2 “dropping a stone, or even a drop of water, in a pond causes ripples to emanate from the source, getting bigger and bigger the further away from the source they get. This is a powerful example of small changes causing large and far- reaching effects” At African Ideas, we specialise in working with our clients to identify these ‘big lever’ projects – the projects which, when embarked upon, will set the necessary ripples in motion to drive change and transformation throughout an eco-system. In this way we aim to have a profound effect on the society in which we operate.
  3. 3. Innovation Development Empowerment Action Solutions Introduction – who am I? • Involved in the IT industry for over 25 years • Many large, complex, innovative and award winning projects • Spent 10 years at City of Cape Town. First CIO of Metro city. • Architect & driver of the “Smart City” strategy - turnaround strategy for the city aimed at information-enabling all key business processes in the city & embarking upon a modernisation programme to deliver services based on real information emanating from the ground (operations) • Currently CEO of African Ideas. Also Strategy & Readiness Advisor to Western Cape Broadband Programme “Nirvesh is the architect and driver of the City’s Smart City strategy, which Communications Minister Ivy Matsepe- Cassaburri in January 2005, called a “visionary transformation strategy,” which positioned Cape Town “to become one of our most technologically advanced cities” and “a frontrunner in South Africa’s National IT Strategy”. The strategy also focuses on how to harness the power of ICT to meet the development needs of the city and all its citizens. While at the City of Cape Town, Nirvesh has implemented some of the largest ICT enabled business transformation projects in South Africa, creating billions of Rands of value for the City. These have resulted in the city winning numerous national and international awards including the Bill and Melinda Gates Foundation Access to Learning Award and the 21st-Century Achievement Award from the Computerworld Honors Programme. In September 2007, Nirvesh received a Provincial Honour Award from the Premier of the Western Cape as a person “rendering exceptional achievements and exceptional meritorious service in the interest of the Western Cape.” ITWEB July 2008
  4. 4. Innovation Development Empowerment Action Solutions Scene Setting 4 Ubiquitous Information Access 1950 1960 1970 1980 1990 2000 2010 2020 Era I: Automation, Cost Control and Efficiency Era II: Productivity and End-User Empowerment Era III: Value Creation and Business Effectiveness Internet/Network Computing Mainframe/Midrange Computing Client/Server Computing IT Impact on Business Structure Low High Era IV: IT Enabling New Business Models The Rules Internally Focused Externally Focused Source: Gartner Key Issue IT’s Changing Destiny Evolving IT Investment Drivers and Technology Cycles Era I: Automation, Cost Control and Efficiency Era II: Productivity and End-User Empowerment Era III: Value Creation and Business Effectiveness Era IV: IT Enabling New Business Models The Rules Era V: Digitisation Hyper-connected world Outside in – the impact of digitisation on the enterprise
  5. 5. Innovation Development Empowerment Action Solutions More than ever, human life revolves around the city One hundred years ago, 2 out of every 10 people lived in an urban area. By 1990, less than 30% of the global population lived in a city, but as of 2010, more than half of all people live in an urban area. By 2050, this proportion will increase to 7 out of 10 people. 5 Source: UN, Department of Economic & Social Affairs, Population Division
  6. 6. Innovation Development Empowerment Action Solutions Well Run Opportunity Inclusive Caring Safe 6 Municipal Policing Urban Planning & Environment Sport & Recreation City Administration Community Services Emergency Services Primary health care Economic & Social Development Public Housing Roads, Stormwater & Transport Solid Waste / landfill, removal & area cleaning Water & Sanitation - storage, treatment & distribution Electricity - distribution & retail The city is a microcosm of the major challenges and opportunities facing the planet today—intensified and accelerated. Here, all man-made systems come together and interact with one another. The information/ ICT challenge • Leveraging information to make better decisions • Anticipating problems to resolve them proactively • Co-ordinating resources to operate effectively Cities are amazing places
  7. 7. Innovation Development Empowerment Action Solutions In 2000 City of Cape Town had to merge 7 previously autonomous local government administrations and become a single integrated metropolitan City, but it found that creating a Unicity to be complex due to: “Lack of standardised financial policies and procedures” “Each Administration / Directorate ran its own IT systems, many of which did not meet business requirements and were not properly integrated” “Paper based processes where labour intensive, prone to error and information could not be shared. “Difficulty in merging these systems was in fact hindering the merger of the administrations and undermining the objectives which motivated the creation of the Unicity” “To utilise ICT as a key enabler to ensure integration, facilitate the merger and bring about organisational transformation.” Thereby, enabling the City to deliver on its Strategic Objectives” Blaauwberg Tygerberg Oostenberg Helderberg South Peninsula Cape Town CAPE METROPOLITAN AREA City of Cape Town Smart City Program Objectives Transforming Cape Town
  8. 8. Innovation Development Empowerment Action Solutions • Lack of / Poor service delivery (water, sanitation, electricity, refuse removal) • Lack of communication with communities • Corruption and Nepotism • Financial mismanagement and Maladministration • Outstanding debt payments for municipal services • Lack of capacity – poor project planning, poor management and/or under-spending by municipalities • Government officials who spend time focusing on their personal business interests at the expense of service delivery. • Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery. • Poverty and unemployment Many of the issues that we were facing then, still plague local government in SA today A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA. Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009 So, the key question is: Can ICT be used to help government deal with these business issues?
  9. 9. Innovation Development Empowerment Action Solutions Outstanding debt payments for municipal services • Improved visibility and transparency of information on the new invoice, the ability for citizens to pay their accounts at any municipal pay point and the implementation of a call center to address billing queries. • Revenue Services performed significant data alignment duties in converting data to SAP. • Revenue enhancement interventions have received priority attention. Calculation: • 1% increase in the payment ration = R6 mil per month. • ROI option: 90 % payment ratio was used as the baseline for this ROI study and only 11% of financial value of the increase above baseline has been used. = R224.6 mil. • 100% option: Instead of allocating only 11% - if 100% allocation over 90% base is to be used the financial value would be = R794 mil. How was the benefit realised? 12 Month Moving Average - Payment Ratio 82.00% 84.00% 86.00% 88.00% 90.00% 92.00% 94.00% 96.00% 98.00% 100.00% Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 Payment Ratio ROI Baseline
  10. 10. Innovation Development Empowerment Action Solutions Cash Position - City of Cape Town June 2002 to July 2006 0 500 1,000 1,500 2,000 2,500 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 R'000000 Budget Actual Cash Position Go-live Financial mismanagement and Maladministration Net increase of R667mil between Sept ’03 (SAP go-live) and Sept ’04.
  11. 11. Innovation Development Empowerment Action Solutions Lack of Capacity 0 500 000 1 000 000 1 500 000 2 000 000 2 500 000 3 000 000 3 500 000 Inv Value per Day Sum of Inv Value 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 No Txns per Day Sum of No Txns Average Daily Value: R744,201 Average Daily No. of Transactions : 1140 Andre Stelzner, Director: IS&T, City of CT “Another interesting area has been the automation of fuel payments through e-fuel system and interface into SAP. Through this we pay approximately R750 000 per day for fuel to the respective suppliers without any human intervention...... ......What makes things even better is that the price is checked against contract pricing and payment is optimised to ensure that we only pay on due date. In the past we had the fuel supply cut to the city due to late payment, now nobody worries about it.”
  12. 12. Innovation Development Empowerment Action Solutions Lack of / Poor service delivery (water, sanitation, electricity, refuse removal) All Services / Works Request follow the same process to overcome the challenge of initiating and tracking the diversity of services government is responsible for:
  13. 13. Innovation Development Empowerment Action Solutions Creating Citizen Value creates Citizen Loyalty. Lack of communication with communities • Citizens demand Private Sector Convenience: • Itemized Billing and Consolidated Invoicing. • Pay Municipal Account at any Cash Hall across the City, via Internet, Debit / Stop Order, 3rd party vendors etc. • Centralised Call Centre for account queries and defect reporting. Citizens demand that their requests be actioned • Works Management via Generic Enterprise-wide Process. Citizens are looking for Flexibility of Service • Account available in 3 official Languages • Progress and other communications via multiple channels including SMS Transparency in performance and operational reporting • Reports, tenders, performance, statistics, etc. available online
  14. 14. Innovation Development Empowerment Action Solutions Government officials who spend time focusing on their personal business interests at the expense of service delivery.
  15. 15. Innovation Development Empowerment Action Solutions Help deal with poverty and unemployment • Large disparity in the socio-economic status of citizens. Systems assist with – Identifying citizens which can – but don’t pay; versus – Citizens which do not have the means to pay. – Support the vulnerable members of society. • Examples of social responsible Policies and Tariff- structures enable via the ERP Program: – Free Basic Utility Services. – Grants for the Indigent – Debt relief through arrangements and incentives • Other ICT initatives – Smart Cape – reducing the digital divide and empowering communities – Digital Business Centres – assisting small businesses – Learnerships, volunteerism and skills development
  16. 16. Innovation Development Empowerment Action Solutions Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery.
  17. 17. Innovation Development Empowerment Action Solutions Mayor fights cash crisis Effective Service Delivery and confidence in municipal leadership Jun2001 Dec2000 Creation of City of Cape Town “Lack of standardised financial policies and procedures” “Each Administration / Directorate ran its own IT systems, many of which did not meet business requirements and were not properly integrated” “Paper based processes where labour intensive, prone to error and information could not be shared. “Difficulty in merging these systems was in fact hindering the merger of the administrations and undermining the objectives which motivated the creation of the Unicity” Launch of Smart City Programme Mayor fights cash crisis Go Live!!!! Bill & Melinda Gates Access to Learning Award, Berlin, 2003 Jun2008 ComputerWorld Honours Programme 21st Century Achievement Award, Washington DC, 2004 Mayor fights cash crisis
  18. 18. Innovation Development Empowerment Action Solutions Implementing effective ICT in the Public Sector can help deal with • Lack of / Poor service delivery (water, sanitation, electricity, refuse removal) • Lack of communication with communities • Corruption and Nepotism • Financial mismanagement and Maladministration • Outstanding debt payments for municipal services • Lack of capacity – poor project planning, poor management and/or under-spending by municipalities • Government officials who spend time focusing on their personal business interests at the expense of service delivery. • Violation of MFMA & Supply Chain Mgt - results in tender irregularities, fuels corruption, erodes confidence in municipal leadership and compromises service delivery. • Poverty and unemployment A REPORT ON THE CURRENT ‘SERVICE DELIVERY PROTESTS’ IN SOUTH AFRICA. Commissioned by the House Chairperson Committees, Oversight and ICT, Parliament of South Africa, 2009 People Strategy Process Tech
  19. 19. Innovation Development Empowerment Action Solutions19 However, that is only the start …
  20. 20. Innovation Development Empowerment Action Solutions Well Run Opportunity Inclusive Caring Safe 20 Municipal Policing Urban Planning & Environment Sport & Recreation City Administration Community Services Emergency Services Primary health care Economic & Social Development Public Housing Roads, Stormwater & Transport Solid Waste / landfill, removal & area cleaning Water & Sanitation - storage, treatment & distribution Electricity - distribution & retail The city is a microcosm of the major challenges and opportunities facing the planet today—intensified and accelerated. Here, all man-made systems come together and interact with one another. The information/ ICT challenge • Leveraging information to make better decisions • Anticipating problems to resolve them proactively • Co-ordinating resources to operate effectively Cities are amazing places
  21. 21. Innovation Development Empowerment Action Solutions Broadband 21
  22. 22. Innovation Development Empowerment Action Solutions BroadbandWestern Cape Broadband – Proposed core backbone 22
  23. 23. Innovation Development Empowerment Action Solutions Western Cape Broadband – Access network coverage area 23
  24. 24. Innovation Development Empowerment Action Solutions Public Internet & Wireless mesh 25
  25. 25. Innovation Development Empowerment Action Solutions Public Internet & Wireless mesh 26
  26. 26. Innovation Development Empowerment Action Solutions Public Internet & Wireless mesh 27 WIFI – Mitchells Plain Phase 5 Coverage WIFI - Khayelitsha Phase 5 Coverage
  27. 27. Innovation Development Empowerment Action Solutions Public Internet & Wireless mesh 28 WIFI – Mitchells Plain Phase 5 Coverage WIFI - Khayelitsha Phase 5 Coverage Source: http://digitalcivilization.blogspot.com/2010/11/freedom-from-wires.html
  28. 28. Innovation Development Empowerment Action Solutions Source: Bosch Internet of Things and Services Lab Cities of the future: key issues 2929 • Interconnected Systems and the “internet of things”
  29. 29. Innovation Development Empowerment Action Solutions Cities of the future: key issues 3030 hedonometer.org an instrument that measures the happiness of large populations in real time • Interconnected Systems and the “internet of things” • Citizens having powerful platforms of their own
  30. 30. Innovation Development Empowerment Action Solutions Cities of the future: key issues 3131 • Interconnected Systems and the “internet of things” • Citizens having powerful platforms of their own • Big data or Big brother (power & control)
  31. 31. Innovation Development Empowerment Action Solutions Source:http://www.slidesha re.net/gleonhard/data-is- the-new-oil-publicy-is-the- new-privacy-futurist- speaker-gerd-leonhard Cities of the future: key issues 3232 • Interconnected Systems and the “internet of things” • Citizens having powerful platforms of their own • Big data or Big brother (power & control)
  32. 32. Contact Details: nirvesh@africanideas.co.za, www.slideshare.net/nsooful Living in a Hyper-connected World – How Cities Need to get Smarter and More Digitally Enabled 34 Thank You & Discussion

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