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

1. Smarter Cities for
Smarter Growth
When you get the chance, start smarter
Lynn Reyes
lynncreyes@ae.ibm.com
© 2013 IBM Corporation

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. 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. 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. 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. What’s going on?
… and new forms of collaboration
6
© 2013 IBM Corporation

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Smart vs. smarter
Technology advances are creating new solutions and new markets
19
© 2013 IBM Corporation

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. 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. 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. 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. Smart vs. smarter
… and reveal how city systems affect each other …
24
© 2013 IBM Corporation

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. Smart vs. smarter
… appeal to their sense of place and community …
Resident
View
City
View
26
© 2013 IBM Corporation

27. Smart vs. smarter
… offer new ways to form markets
27
© 2013 IBM Corporation
© 2013 IBM Corporation

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. 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. 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. 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. 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. 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. 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