1. A Vision for Smarter Cities in Africa
Seizing the opportunity now
AITEC East Africa ICT Summit
October 24, 2012
© 2012 IBM Corporation

2. It’s an exciting time for Smarter in Africa
 The world is at an unprecedented level of urbanization
 Cities contain an increasingly large share of the world's
highly skilled, educated, creative and entrepreneurial
population …
 … and also can support large-scale networks that
absorb and extend innovation
 In Africa, the potential is palpable
2 © 2012 IBM Corporation

3. There are many different visions of a “smarter city”
An Accessible City The Healthy and Safe City The Sustainable Eco-City
The Cultural-Convention Hub The City of Digital Innovation The City of Commerce
3 © 2012 IBM Corporation

4. As focal points of economic activity, cities are strongly positioned to
benefit from the new talent-intensive economic growth
Top cities act as economic activity hubs
(size of the bubble – ratio of city share of national GDP to its share of national population, 2009)
30 Lisbon
City share of country population, %
Sydney
Mexico
20 Seoul
Paris
Brussels
10 Cape Town
Beijing Johannesburg
New
Delhi Shanghai
0
-5 5 15 25 35 45 55
Bangalore
Guangzhou
-10
City share of country GDP, %
Source: UN Habitat 2010, and IBM Global Center for Economics Development analysis
4 © 2012 IBM Corporation

5. Links between talent and innovation in jointly driving economic
vitality and growth are growing stronger
Links between skills, knowledge, creativity and
technological innovation contributions to growth
Annual average correlation
25
20
Correlation coefficient, rescaled x100
Traditional industries
15
Modern industries
10
5
0
-5
-10
-15
-20
-25
1980s 1990s 2000s 2010s(f)
Source: KLEMS data base (2010) and IBM Global Center for Economics Development analysis
5 © 2012 IBM Corporation

6. Youth bulge, consumer class
and room to grow
Projected population 2020
Source: UN
Source: McKinsey Global Institute Cityscope 2.0
East Africa Burundi Tanzania
Population • Age: 45.8% (0-14), 51.7% (15-64) • Age: 41.4% (0-14); 55.6% (15-64)
Structure Kenya Uganda
• Age: 42.5% (0-14); 54.8% (15-64) • Age: 49.8% (0-14); 48.2% (15-64)
Rwanda
• Age: 42.6% (0-14), 55% (15-64) Source: CIA World Factbook
6 © 2012 IBM Corporation

7. Attracting, retaining, developing and enabling talent and innovation
can act as a powerful, long-term competitive advantage for cities
 Cities, as focal points for economic growth and activity, are best
positioned to benefit from the rising importance of talent and innovation
There is an
urgent need for  Cities are facing intensifying competition globally for talent and
innovation as demand for higher quality and more diversified workers is
cities to act
increasing
 Business and businesses go to where the talent is
 Over the next 20 years, cities will need to attract, retain, create and
enable the right and diverse mix of talents necessary for sustained
growth by cultivating:
All cities need to
grow their talent – a thriving academic and creative culture
base – a critical mass of skills and learning
– business conduits through which knowledge and innovation flow
across all these communities
Achieving  Cities that possess the right mix of diverse talent will hold a powerful
competitive competitive advantage in the economy based on skills, knowledge,
advantage creativity and innovation
7 © 2012 IBM Corporation

8. Our world is becoming
INSTRUMENTED
Our world is becoming
INTERCONNECTED
All things are becoming
INTELLIGENT
8 © 2012 IBM Corporation

9. For the first time, CEOs identify technology as the most significant
force affecting their organizations
External forces that will impact the organization
2004 2006 2008 2010 2012
71%
Technology factors
69%
People skills
68%
Market factors
Macro-economic factors
Regulatory concerns
Globalization
Socio-economic factors
Environmental issues
Geopolitical factors
Source: 2012 CEO Study, IBM Institute for Business Value
Q1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?”
9 © 2012 IBM Corporation

10. Societal expectations are shifting with sociotechnical change
Source: IBM Institute for Business Value
Source: Forrester Research
10 © 2012 IBM Corporation

11. People, and the communities they belong to (business, social,
other), are expecting more
People and their communities expect …
Security Access Opportunity Prosperity Progress
Time
Walls, Water, Jobs, Lifestyle,
“Place”
Roads Energy Education Culture
Leaders set conditions for serendipity and deliver …
11 © 2012 IBM Corporation

12. We all have the power to know
Top 3 factors affecting organizations*
(to a large extent over the next 5 years)
Information 73%
Smarter Smarter Smarter food Smarter Smarter Smarter retail
transportation education explosion
systems 57%
healthcare energy grids
62%
Talent shortagess  Public sector
54%
 Private sector
Shorter time 61%
s
cycles 57%
Smarter Smarter SmarterSource: 2010 CEO Study
Smarter Smarter Smarter
IBM Institute for Business Value
Public Safety government countries water regions cities
services management
“We will go beyond … to systems that enable humanity to reach its
greatest potential for human creativity, innovation and ingenuity.”
12 © 2012 IBM Corporation
- IBM Global Technology Outlook 2010, Frontiers of IT

13. We all have the power to know
Top 3 factors affecting organizations*
(to a large extent over the next 5 years)
Information 73%
explosion 57%
62%
Talent shortagess  Public sector
54%
 Private sector
Shorter time 61%
s
cycles 57%
Source: 2010 CEO Study
IBM Institute for Business Value
“We will go beyond … to systems that enable humanity to reach its
greatest potential for human creativity, innovation and ingenuity.”
13 © 2012 IBM Corporation
- IBM Global Technology Outlook 2010, Frontiers of IT

14. Here’s where it gets really interesting
Role of Information
 “See”, “Discover”
 Understand, learn
Role of ICTs
 Define
 Prioritize  Low and high-level mediation
within and among urban systems
 Make choices
 Sensing urban system activity
 Act / catalyze action
 Visualizing, analyzing, optimizing
 Measure, evaluate
 Transparency among people,
 Tell the story government, commerce
 New forms of urban infrastructure
 2-way interaction beyond portals
14 © 2012 IBM Corporation

15. What is a Smarter City?
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
(examples) (examples)
Competing effectively for more diversified and An attractive place in which to live, work,
internationally mobile talent play, and thrive
Assuring safety and security “Worry-free” mobility
Extending urban infrastructure Infrastructure capacity and longevity
Balancing today’s growth, tomorrow’s stewardship Sustainable development
Increasing efficiency while reducing costs Optimized city services and operations
Preserving culture while opening up A modern platform for African voices
15 © 2012 IBM Corporation

16. 1. Engaging people to co-define / co- 2. Integrating and leveraging
produce “what’s important” in information to make better
context decisions
Government
and Agency Urban Planning
Administration
Planning and
Public Safety Management Environmental
Central / Citizens
Federal
government
Human Infrastructure
Social Energy
and Health and Water
City Businesses
government
Education Transportation
3. Coordinating resources to operate 4. Anticipating problems to resolve
efficiently and effectively them proactively and manage risk
16 © 2012 IBM Corporation

17. Four core systems play a crucial role in attracting and expanding
skills and innovation
Retain Attract
Cities that invest and enable human Cities that can attract mobile
capital must ensure increasingly mobile human capital and innovation
human capital stays will gain competitive advantage
Enable Create / Develop
Successful cities ensure people Cities need to invest in people and
make use of skills and abilities, their skills through education,
enabling innovation and investment training and learning opportunities
in human capital
17 Source: IBM Global Center for Economic Development analysis © 2012 IBM Corporation

18. These core systems make up the enabling environment
Smarter transport Improving education
improves the delivery and streamlining
attractiveness of a city for government services
highly skilled, diversified helps cities to support
citizens and innovation talent-focused growth and
intensive businesses enable innovation
Better emergency
Improving access to response and lower crime
patient-centric healthcare helps cities to attract and
boosts quality of care and retain skilled people and
the attractiveness of a city knowledge intensive
for creative and innovative businesses
workers
18 © 2012 IBM Corporation

19. Leaders can take steps today …
1 Define / Decide what the city’s Smarter brand should be and
how it might be experienced
2 Adopt policies conducive to skills, creativity and knowledge-
driven growth
3 Understand what you have today and use the information to
engage communities and optimize services around them
4 Employ systems thinking in all aspects of planning, design,
execution and management
5 Apply the fundamental enabling information technologies to
core city systems
19 © 2012 IBM Corporation

20. … and chart a path of progress forward
INSTRUMENTED INTERCONNECTED INTELLIGENT
Unified and
interactive
response and risk
Value
Value
Proactive management
planning and
decision making
Stakeholder and EXPANDING
context relevant
operational
insight
Integrated, EXTENDING
trusted
information
Access to
relevant data
EMBEDDING
EVOLVING
EMERGING
20 Maturity © 2012 IBM Corporation

21. It’s an exciting time for Smarter
in Africa
Projected population 2020
Source: UN
Source: McKinsey Global Institute Cityscope 2.0
East Africa Burundi Tanzania
Population • Age: 45.8% (0-14), 51.7% (15-64) • Age: 41.4% (0-14); 55.6% (15-64)
Structure Kenya Uganda
• Age: 42.5% (0-14); 54.8% (15-64) • Age: 49.8% (0-14); 48.2% (15-64)
Rwanda
• Age: 42.6% (0-14), 55% (15-64) Source: CIA World Factbook
21 © 2012 IBM Corporation

22. Cities (and regions) in Africa have a profound opportunity to
accelerate and sustain progress in their Smarter journey
 As cities in rapidly developing economies continue to mature, talent becomes an
increasingly valued resource, especially when combined with technological
innovation
 The core systems of a city – transport, government services and education,
public safety and health – profoundly influence the quality of life and the
attractiveness of a city
 Smarter Cities continuously strive to create an enabling environment conducive
to attracting, retaining, creating, developing and enabling talent and innovation
1. Define / Decide what your Smarter brand should be for your city and how it might be
experienced
2. Adopt policies conducive to skills, creativity and knowledge-driven growth
3. Understand what your have today and use the information to optimize services
4. Employ systems thinking
5. Apply the enabling ICTs to core city systems
22 © 2012 IBM Corporation