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© 2013 IBM Corporation
Smarter	Cities	for	
Smarter	Growth
When	you	get	the	chance,	start	smarter
Lynn Reyes
lynncreyes@ae.ibm.com
© 2013 IBM Corporation
2
Three	things. 1
2
3
The Century of the City
IBM’s view of smarter
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
“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.”
Wellington Webb
Former Mayor, Denver
© 2013 IBM Corporation
What’s going on?
Profound change
Contribution to Urban Growth (2010 to 2015)
as % of 
<25% 20 50 >75%

50% 20 07 50%

90% 19 90 10%
<25% 20 50 >75%

50% 20 07 50%

90% 19 90 10%
World Population
0.15
0.25
0.35
0.45
1978-1987 1988-1997 1998-2007 2008-2017(f) 2018-2027(f)
Traditional Manufacturing Modern Manufacturing
Traditional Services Modern Services
All sectors
Contribution of talent to growth in
economic value added
Percent, average annual rate
3
© 2013 IBM Corporation
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
Infrastructure
Real
estate
Natural
disaster
Knowledge &
innovation
Taxation
Incentives
Business
costs
Living
environment
Economic
Development
4
© 2013 IBM Corporation
What’s going on?
Increasing expectations …
5
Water,
Energy
Walls,
Roads
Lifestyle,
Culture
Jobs,
Education
AccessSecurity ProsperityOpportunity
Leaders set conditions for serendipity and deliver …
People and their communities expect more …
Time
Progress
“Place”
© 2013 IBM Corporation
What’s going on?
Increasing expectations … 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 knowledge intensive companies
Built and natural
environment
Health and social
services Transport
Energy + water
Career
opportunities
Knowledge and
innovation
Salaries
+Taxation
Public safety
Government
services
Cultural / Living
environment
City’s human
capital and
innovation
enabling
environment
7
© 2013 IBM Corporation
A virtuous circle
A climate conducive to skills, creativity and knowledge-driven growth
can create differentiating and enduring new value and new capital
Source: IBM Global Center for Economics Development analysis, IBM Institute for Business Value
8
Competencies,
knowledge and
creativity
RetainRetain
AttractAttract
CreateCreate
EnableEnable
Competencies,
knowledge and
creativity
RetainRetain
AttractAttract
CreateCreate
EnableEnable
Energy
and Water
Middle
East
esp
© 2013 IBM Corporation
Imperative
Assure future generations that investments return “100X” later on
while surfacing net new opportunities to do so along the way
Brand ValueBrand Value
Societal /
City Value
Societal /
City Value
Financial /
Operational Value
Financial /
Operational Value
Strategic Value
9
© 2013 IBM Corporation
Financial
Capital
Physical
Capital
Human
Capital
Natural
Capital
Yet …
The traditional nexus of economic growth is characterized by human
capital predominantly acting as a substitute to other types of capital
Old	
Nexus Technological
Innovation
Economic
Activity
and
Growth
10
© 2013 IBM Corporation
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
Creative
Innovation
Financial
Capital
Physical
Capital
Human
Capital
Natural
Capital
Old	
Nexus Technological
Innovation
CREATIVE NEW AND
AND TECH OPTIMIZED
INNOVATION CAPITAL
AND
CREATIVE NEW AND
AND TECH OPTIMIZED
INNOVATION CAPITAL
AND
New	Nexus
Inform
ation
capital
Brand capital
11
We talked about human capital driving creative innovation
and related jobs; now let’s move to technology …
© 2013 IBM Corporation
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
Municipalities lose as much
as 20% of their
water through leaks.
A blackout in the Northeast of
the US affected over 55
million people.
Transport Energy
A major traffic jam in China
caused gridlock for 60 miles
and lasted ten days
12
© 2013 IBM Corporation
The opportunity
Purposeful city development with growing emphasis on I-C-T
Urban Planning & Development
Phases
Adding the I-C-T dimension
Master Planning
Design
Physical Infrastructure
Buildings
Urban Systems and Services
Institutions Integration
Population Integration
Life Cycle Management
13
© 2013 IBM Corporation
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
Smart vs. smarter
IBM has developed a technology reference architecture for starting
smarter, but there’s more
Starting Smarter
Technology
Reference
Architecture
Master Planning
Design
Physical Infrastructure
Buildings
Urban Systems and Services
Institutions Integration
Population Integration
Life Cycle Management
Master Planning
Design
Physical Infrastructure
Buildings
Urban Systems and Services
Institutions Integration
Population Integration
Life Cycle Management
Urban	Planning	and
Development	Phases
Smarter	City
ICT	Domains
15
•Consolidated analytical and information infrastructure
•Consolidated telecommunications infrastructure
•Consolidated mobility infrastructure
• Consolidated commerce infrastructure
•High performance computing centric capabilities
City operations, consolidated response, event mgmt
Trans-
port
Health
Cul-
ture
Ind&
Econ
City
Admin
Pub
Safety
Social
Ed
Resou
rces
Utili-
ties
Others
© 2013 IBM Corporation
Smart vs. smarter
Many think about “smart” only in the context of the communications
technology infrastructure
Physical spaces and buildings
Transport and utilities network
Information and communications technology
Design
Master Planning
Physical Infrastructure
Buildings
Urban Systems and Services
Institutions Integration
Population Integration
Life Cycle Management
Urban	Planning	and
Development	Phases
16
© 2013 IBM Corporation
Smart vs. smarter
But, does connectivity and its enabling technologies really mean
smarter?
Water,
Energy
Walls,
Roads
Lifestyle,
Culture
Jobs,
Education
AccessSecurity ProsperityOpportunity
Leaders set conditions for serendipity and deliver …
People and their communities expect more …
Time
Progress
“Place”
17
© 2013 IBM Corporation
Smart vs. smarter
A city is – a living organism – a system of systems that transcends
multiple lifetimes
Healthy
Accessible
Efficient
Learning
Sustainable
Safe
A smarter city is…
Vibrant
Distinctive
18
What do you want your city to be known for?
Do you know what’s it’s known for today? How it’s experienced?
© 2013 IBM Corporation
19
Healthy
Accessible
Efficient
Learning
Sustainable
A smarter city is…
Healthcare
Citizen
participation
Remote
connectivity
Transportation
Housing
Mobile
connectivity
Communications
Public safety
Privacy
Energy
Education
Innovation
Commerce
Investment
How can you capitalize (or create) on new forms of collaboration
between public and private actors of the city?
Vibrant
Culture
Smart vs. smarter
A city is – a living organism – a system of systems that transcends
multiple lifetimes
Natural resources
Safe
Distinctive
19
© 2013 IBM Corporation
Smart vs. smarter
Technology advances are creating new solutions and new markets
20
© 2013 IBM Corporation
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
 Better manage
 Tell the story
Role of ICTs
 Low and high-level mediation
within and among urban systems
 Sensing urban system activity
 Visualizing, analyzing, optimizing
 Transparency among people,
government, commerce
 New forms of urban infrastructure
 2-way interaction beyond portals
21
© 2013 IBM Corporation
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
Smart vs. smarter
We can collect data from almost anything …
Every day, 15 petabytes of
new information are being
generated. This is 8X more
than the information in all
U.S. libraries.
15 petabytes
Digital and physical infrastructures of the planet are converging
22
© 2013 IBM Corporation
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
23
© 2013 IBM Corporation
City Recycling
River QualityUrban Water Loss
Building C02
Data from sensors and systems
Understanding
Information
Smart vs. smarter
… aggregate, visualise and draw insights from it …
24
© 2013 IBM Corporation
Smart vs. smarter
… and reveal how city systems affect each other …
25
© 2013 IBM Corporation
Smart vs. smarter
We can tell people the impact of the choices they are
about to make …
26
Start
Time
End
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 19:47 NHBO
© 2013 IBM Corporation
Smart vs. smarter
… appeal to their sense of place and community …
27
Resident
View
City
View
© 2013 IBM Corporation
Smart vs. smarter
… offer new ways to form markets
28 © 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 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.
29
© 2013 IBM Corporation
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
Smart cards helped
increase capacity
at Singapore
Land Transport
Authority, to over
20M fare transactions
per day
Amsterdam Airport Schiphol
moves 20million more bags
every year with a smarter
baggage system
In Delft,
developing enhanced
flood prediction and
protection systems
for coastal areas and
river deltas
lower costs
in Reggio Emilia
via collaborative
education platform
Miami-Dade
County Public
Schools have
increased
academic
achievement
across the board
2x
Endessa, Spain utilizes real-
time monitoring & smart meters
to reduce energy
use by 20%
© 2013 IBM Corporation
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
New dataNew data--drivendriven
frame(sframe(s) of reference) of reference
Professions that
plan, design, build,
operate, manage
and renew cities
Professions that
plan, design, build,
operate, manage
and renew cities
Denizens in cities
(and their
communities)
Denizens in cities
(and their
communities)
Soft and hard
infrastructures
Soft and hard
infrastructures
 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
31
© 2013 IBM Corporation
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
Leadership and governance, networks and
community organizations, innovation forums
Soft infrastructure
Starting Smarter
Technology
Reference
Architecture
Hard infrastructures Physical spaces and buildings
Transport and utilities network
Information and Communications Technology
• Consolidated analytical and information infrastructure
• Consolidated telecommunications infrastructure
•Consolidated mobility infrastructure
• Consolidated commerce infrastructure
•High performance computing centric capabilities
City operations, consolidated response, event mgmt
City Systems
(their competencies,
capabilities, processes)
Trans-
port
Health
Cul-
ture
Ind&
Econ
City
Admin
Pub
Safety
Social
Ed
Resou
rces
Utili-
ties
Others
City Systems
(their competencies,
capabilities, processes)
Trans-
port
Health
Cul-
ture
Ind&
Econ
City
Admin
Pub
Safety
Social
Ed
Resou
rces
Utili-
ties
Others
(Urban / City Systems)
Ecosystem of
organizations
(and their roles)
Public
Sector
Third
Sector
Community
Orgs
Private
Sector
Ecosystem of
organizations
(and their roles)
Public
Sector
Third
Sector
Community
Orgs
Private
Sector
People
(and their roles)
Citizens, Employees, Innovators, Visitors, Residents …
People
(and their roles)
Citizens, Employees, Innovators, Visitors, Residents …
HealthHealth WealthWealth OpportunityOpportunity SafetySafety
IndependenceIndependence ChoiceChoice SustainabilitySustainability OthersOthers ……
Shared Outcomes
32
A	system	
provides	
context
© 2013 IBM Corporation
© 2013 IBM Corporation
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 …
33
IBM ApproachIBM Approach Overall DesignOverall Design
DirectControlExecute
Marketing & Customer
Manage ment
Consumer Segmentation
Cust omer Relationship Strategy
Marketing Strategy& Planning
Cust omer Behavior Model ing
Market & Competit or Research
Customer Satisf action Measurement &
Management
Segmentation Management
Clientelling
Call Cent er
Campaign Management
Customer Service
Loyalty
Cust omer Communications
Mass Market ing & Advertisi ng
Target Market ing
Af ter Sales Services
Customer Reposit ory
Products
Merchandise St rategy
Merchandise Planning
Assortment Planning
Product Development (e. g. Private Label)
B rand Management
P ricingS trat egy
Sourcing P lanning
Price / Promot ions Management
Inventory Management
S uppl yTermsA dministrat ion & Pricing
Product Lifecycle
Management (P LM)
Allocations
PO & Trade Funds Management
Purchasing / Sourcing
Demand Forecast ing
Master Data Management
Store and Channel
Multi-channel S trat egy
Store & Channel Strategy
St ore Design & Layout
Channel Design & Layout
St ore & Channel Prof itability
St ore Operations Management
Transact ion Management
Planogram
Replenishment
Services Delivery
Price Changing
Time & A ttendance
Floor Stocking, Back Room Task Mgt
Loss Prevention
Workforce Management
P OS Execut ion / Cash Managem ent
Multi-channel Call Center
Distribution & Warehousing
Distribution, Warehouse, Supply Chain
St rategy
Transportation Planning
Supplier Relat ionship P lanning (Logistics)
Supplier Perf ormance Managem ent
I n-bound Logist ics
Intra-company & Out bound Logistics
Transportation / Fl eet Management
Warehouse Managem ent
Distri bution Center Operat ions
Yard Management
Ret urns& Reclamati on
Product Track& Trace
Transportation / Fleet Operat ions
Bus iness Administration
Corporate St rategy
Financial Management & Planning
LOB Planning
Locat ionS trat egy
Alliance Management
B usiness Performance Report ing
Legal & RegulatoryCom pliance
Real Estate & Const ruct ion Management
Risk Managem ent
Stock Ledger HR Management (Career
Development, Training, Recruiting)
HR Administ ration / Payrol l
Corporat e Audit
Corporate A ccounting (GL AP,
Treasury, et c
Sal es Audit
I ndirect P rocurem ent
Credit Operations
PR & Invest or Rel at ions
IT S ystems& Operations
DirectControlExecute
Marketing & Customer
Manage ment
Consumer Segmentation
Cust omer Relationship Strategy
Marketing Strategy& Planning
Cust omer Behavior Model ing
Market & Competit or Research
Customer Satisf action Measurement &
Management
Segmentation Management
Clientelling
Call Cent er
Campaign Management
Customer Service
Loyalty
Cust omer Communications
Mass Market ing & Advertisi ng
Target Market ing
Af ter Sales Services
Customer Reposit ory
Products
Merchandise St rategy
Merchandise Planning
Assortment Planning
Product Development (e. g. Private Label)
B rand Management
P ricingS trat egy
Sourcing P lanning
Price / Promot ions Management
Inventory Management
S uppl yTermsA dministrat ion & Pricing
Product Lifecycle
Management (P LM)
Allocations
PO & Trade Funds Management
Purchasing / Sourcing
Demand Forecast ing
Master Data Management
Store and Channel
Multi-channel S trat egy
Store & Channel Strategy
St ore Design & Layout
Channel Design & Layout
St ore & Channel Prof itability
St ore Operations Management
Transact ion Management
Planogram
Replenishment
Services Delivery
Price Changing
Time & A ttendance
Floor Stocking, Back Room Task Mgt
Loss Prevention
Workforce Management
P OS Execut ion / Cash Managem ent
Multi-channel Call Center
Distribution & Warehousing
Distribution, Warehouse, Supply Chain
St rategy
Transportation Planning
Supplier Relat ionship P lanning (Logistics)
Supplier Perf ormance Managem ent
I n-bound Logist ics
Intra-company & Out bound Logistics
Transportation / Fl eet Management
Warehouse Managem ent
Distri bution Center Operat ions
Yard Management
Ret urns& Reclamati on
Product Track& Trace
Transportation / Fleet Operat ions
Bus iness Administration
Corporate St rategy
Financial Management & Planning
LOB Planning
Locat ionS trat egy
Alliance Management
B usiness Performance Report ing
Legal & RegulatoryCom pliance
Real Estate & Const ruct ion Management
Risk Managem ent
Stock Ledger HR Management (Career
Development, Training, Recruiting)
HR Administ ration / Payrol l
Corporat e Audit
Corporate A ccounting (GL AP,
Treasury, et c
Sal es Audit
I ndirect P rocurem ent
Credit Operations
PR & Invest or Rel at ions
IT S ystems& Operations
DirectControlExecute
Marketing & Customer
Manage ment
Consumer Segmentation
Cust omer Relationship Strategy
Marketing Strategy& Planning
Cust omer Behavior Model ing
Market & Competit or Research
Customer Satisf action Measurement &
Management
Segmentation Management
Clientelling
Call Cent er
Campaign Management
Customer Service
Loyalty
Cust omer Communications
Mass Market ing & Advertisi ng
Target Market ing
Af ter Sales Services
Customer Reposit ory
Products
Merchandise St rategy
Merchandise Planning
Assortment Planning
Product Development (e. g. Private Label)
B rand Management
P ricingS trat egy
Sourcing P lanning
Price / Promot ions Management
Inventory Management
S uppl yTermsA dministrat ion & Pricing
Product Lifecycle
Management (P LM)
Allocations
PO & Trade Funds Management
Purchasing / Sourcing
Demand Forecast ing
Master Data Management
Store and Channel
Multi-channel S trat egy
Store & Channel Strategy
St ore Design & Layout
Channel Design & Layout
St ore & Channel Prof itability
St ore Operations Management
Transact ion Management
Planogram
Replenishment
Services Delivery
Price Changing
Time & A ttendance
Floor Stocking, Back Room Task Mgt
Loss Prevention
Workforce Management
P OS Execut ion / Cash Managem ent
Multi-channel Call Center
Distribution & Warehousing
Distribution, Warehouse, Supply Chain
St rategy
Transportation Planning
Supplier Relat ionship P lanning (Logistics)
Supplier Perf ormance Managem ent
I n-bound Logist ics
Intra-company & Out bound Logistics
Transportation / Fl eet Management
Warehouse Managem ent
Distri bution Center Operat ions
Yard Management
Ret urns& Reclamati on
Product Track& Trace
Transportation / Fleet Operat ions
Bus iness Administration
Corporate St rategy
Financial Management & Planning
LOB Planning
Locat ionS trat egy
Alliance Management
B usiness Performance Report ing
Legal & RegulatoryCom pliance
Real Estate & Const ruct ion Management
Risk Managem ent
Stock Ledger HR Management (Career
Development, Training, Recruiting)
HR Administ ration / Payrol l
Corporat e Audit
Corporate A ccounting (GL AP,
Treasury, et c
Sal es Audit
I ndirect P rocurem ent
Credit Operations
PR & Invest or Rel at ions
IT S ystems& Operations
DirectControlExecute
Marketing & Customer
Manage ment
Consumer Segmentation
Cust omer Relationship Strategy
Marketing Strategy& Planning
Cust omer Behavior Model ing
Market & Competit or Research
Customer Satisf action Measurement &
Management
Segmentation Management
Clientelling
Call Cent er
Campaign Management
Customer Service
Loyalty
Cust omer Communications
Mass Market ing & Advertisi ng
Target Market ing
Af ter Sales Services
Customer Reposit ory
Products
Merchandise St rategy
Merchandise Planning
Assortment Planning
Product Development (e. g. Private Label)
B rand Management
P ricingS trat egy
Sourcing P lanning
Price / Promot ions Management
Inventory Management
S uppl yTermsA dministrat ion & Pricing
Product Lifecycle
Management (P LM)
Allocations
PO & Trade Funds Management
Purchasing / Sourcing
Demand Forecast ing
Master Data Management
Store and Channel
Multi-channel S trat egy
Store & Channel Strategy
St ore Design & Layout
Channel Design & Layout
St ore & Channel Prof itability
St ore Operations Management
Transact ion Management
Planogram
Replenishment
Services Delivery
Price Changing
Time & A ttendance
Floor Stocking, Back Room Task Mgt
Loss Prevention
Workforce Management
P OS Execut ion / Cash Managem ent
Multi-channel Call Center
Distribution & Warehousing
Distribution, Warehouse, Supply Chain
St rategy
Transportation Planning
Supplier Relat ionship P lanning (Logistics)
Supplier Perf ormance Managem ent
I n-bound Logist ics
Intra-company & Out bound Logistics
Transportation / Fl eet Management
Warehouse Managem ent
Distri bution Center Operat ions
Yard Management
Ret urns& Reclamati on
Product Track& Trace
Transportation / Fleet Operat ions
Bus iness Administration
Corporate St rategy
Financial Management & Planning
LOB Planning
Locat ionS trat egy
Alliance Management
B usiness Performance Report ing
Legal & RegulatoryCom pliance
Real Estate & Const ruct ion Management
Risk Managem ent
Stock Ledger HR Management (Career
Development, Training, Recruiting)
HR Administ ration / Payrol l
Corporat e Audit
Corporate A ccounting (GL AP,
Treasury, et c
Sal es Audit
I ndirect P rocurem ent
Credit Operations
PR & Invest or Rel at ions
IT S ystems& Operations
Component Business Modeling
Actionable Business Architecture
Business Models
City Ecosystem
Transportation Public Safety Water
…
Local Govt Core Systems
• Water Mgmt
• Citizen Health
• Energy
• Environment
• Urban planning
• Social Services
• Education
• Culture and Recreation
• Judicial and Justice
• etc.
Business of IT Finance Human CapitalPayment
…
Shared Services
• Procurement
• Asset Management
• Tax Collection
• etc.
Operations Models IT Models Investment and Initiatives
Aligned with Business Scenarios 
and Key Performance Indicators
© 2013 IBM Corporation
When you get the chance, start smarter
… then chart a shared roadmap – a “living” path of progress – in
collaboration with others
34
City Master Plan
(physical, spatial, etc.)
“Digital” Master Plan
(informational, digital, temporal, technological, etc.)
City Master Plan
(physical, spatial, etc.)
“Digital” Master Plan
(informational, digital, temporal, technological, etc.)
City Operational Governance
City Information “Backbone”
City Operational Governance
City Information “Backbone”
City Services & Enforcement
Engagement & Interoperability “Platforms”
City Services & Enforcement
Engagement & Interoperability “Platforms”
Continuous Improvement & Adaptation
Innovation Infrastructure
Continuous Improvement & Adaptation
Innovation Infrastructure
© 2013 IBM Corporation
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
Systems thinking
plus integrated
design discipline
are essential
4. Co‐define	and	decide	how	your	
smarter	city	will	be	experienced
5. Identify	city	systems	(+	smarter	
enablers	+	data)	used	in	each	
experience
Removing bar-
riers is much
harder than
making sure
unnecessary
ones aren’t built
6. Integrate	into	the	city’s	master	
plan,	downstream	design,	
roadmap,	etc.
7. Execute!	Only when	the	change	is	
visible,	“brand” it
35
Lessons	
from	the	
Smarter	
Cities	
journeys	
of	others

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  • 1. © 2013 IBM Corporation Smarter Cities for Smarter Growth When you get the chance, start smarter Lynn Reyes lynncreyes@ae.ibm.com
  • 2. © 2013 IBM Corporation 2 Three things. 1 2 3 The Century of the City IBM’s view of smarter 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 “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.” Wellington Webb Former Mayor, Denver
  • 3. © 2013 IBM Corporation What’s going on? Profound change Contribution to Urban Growth (2010 to 2015) as % of  <25% 20 50 >75%  50% 20 07 50%  90% 19 90 10% <25% 20 50 >75%  50% 20 07 50%  90% 19 90 10% World Population 0.15 0.25 0.35 0.45 1978-1987 1988-1997 1998-2007 2008-2017(f) 2018-2027(f) Traditional Manufacturing Modern Manufacturing Traditional Services Modern Services All sectors Contribution of talent to growth in economic value added Percent, average annual rate 3
  • 4. © 2013 IBM Corporation 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 Infrastructure Real estate Natural disaster Knowledge & innovation Taxation Incentives Business costs Living environment Economic Development 4
  • 5. © 2013 IBM Corporation What’s going on? Increasing expectations … 5 Water, Energy Walls, Roads Lifestyle, Culture Jobs, Education AccessSecurity ProsperityOpportunity Leaders set conditions for serendipity and deliver … People and their communities expect more … Time Progress “Place”
  • 6. © 2013 IBM Corporation What’s going on? Increasing expectations … new forms of collaboration 6
  • 7. © 2013 IBM Corporation 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 Health and social services Transport Energy + water Career opportunities Knowledge and innovation Salaries +Taxation Public safety Government services Cultural / Living environment City’s human capital and innovation enabling environment 7
  • 8. © 2013 IBM Corporation A virtuous circle A climate conducive to skills, creativity and knowledge-driven growth can create differentiating and enduring new value and new capital Source: IBM Global Center for Economics Development analysis, IBM Institute for Business Value 8 Competencies, knowledge and creativity RetainRetain AttractAttract CreateCreate EnableEnable Competencies, knowledge and creativity RetainRetain AttractAttract CreateCreate EnableEnable Energy and Water Middle East esp
  • 9. © 2013 IBM Corporation Imperative Assure future generations that investments return “100X” later on while surfacing net new opportunities to do so along the way Brand ValueBrand Value Societal / City Value Societal / City Value Financial / Operational Value Financial / Operational Value Strategic Value 9
  • 10. © 2013 IBM Corporation Financial Capital Physical Capital Human Capital Natural Capital Yet … The traditional nexus of economic growth is characterized by human capital predominantly acting as a substitute to other types of capital Old Nexus Technological Innovation Economic Activity and Growth 10
  • 11. © 2013 IBM Corporation 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 Creative Innovation Financial Capital Physical Capital Human Capital Natural Capital Old Nexus Technological Innovation CREATIVE NEW AND AND TECH OPTIMIZED INNOVATION CAPITAL AND CREATIVE NEW AND AND TECH OPTIMIZED INNOVATION CAPITAL AND New Nexus Inform ation capital Brand capital 11 We talked about human capital driving creative innovation and related jobs; now let’s move to technology …
  • 12. © 2013 IBM Corporation 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 Municipalities lose as much as 20% of their water through leaks. A blackout in the Northeast of the US affected over 55 million people. Transport Energy A major traffic jam in China caused gridlock for 60 miles and lasted ten days 12
  • 13. © 2013 IBM Corporation The opportunity Purposeful city development with growing emphasis on I-C-T Urban Planning & Development Phases Adding the I-C-T dimension Master Planning Design Physical Infrastructure Buildings Urban Systems and Services Institutions Integration Population Integration Life Cycle Management 13
  • 14. © 2013 IBM Corporation 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
  • 15. © 2013 IBM Corporation Smart vs. smarter IBM has developed a technology reference architecture for starting smarter, but there’s more Starting Smarter Technology Reference Architecture Master Planning Design Physical Infrastructure Buildings Urban Systems and Services Institutions Integration Population Integration Life Cycle Management Master Planning Design Physical Infrastructure Buildings Urban Systems and Services Institutions Integration Population Integration Life Cycle Management Urban Planning and Development Phases Smarter City ICT Domains 15 •Consolidated analytical and information infrastructure •Consolidated telecommunications infrastructure •Consolidated mobility infrastructure • Consolidated commerce infrastructure •High performance computing centric capabilities City operations, consolidated response, event mgmt Trans- port Health Cul- ture Ind& Econ City Admin Pub Safety Social Ed Resou rces Utili- ties Others
  • 16. © 2013 IBM Corporation Smart vs. smarter Many think about “smart” only in the context of the communications technology infrastructure Physical spaces and buildings Transport and utilities network Information and communications technology Design Master Planning Physical Infrastructure Buildings Urban Systems and Services Institutions Integration Population Integration Life Cycle Management Urban Planning and Development Phases 16
  • 17. © 2013 IBM Corporation Smart vs. smarter But, does connectivity and its enabling technologies really mean smarter? Water, Energy Walls, Roads Lifestyle, Culture Jobs, Education AccessSecurity ProsperityOpportunity Leaders set conditions for serendipity and deliver … People and their communities expect more … Time Progress “Place” 17
  • 18. © 2013 IBM Corporation Smart vs. smarter A city is – a living organism – a system of systems that transcends multiple lifetimes Healthy Accessible Efficient Learning Sustainable Safe A smarter city is… Vibrant Distinctive 18 What do you want your city to be known for? Do you know what’s it’s known for today? How it’s experienced?
  • 19. © 2013 IBM Corporation 19 Healthy Accessible Efficient Learning Sustainable A smarter city is… Healthcare Citizen participation Remote connectivity Transportation Housing Mobile connectivity Communications Public safety Privacy Energy Education Innovation Commerce Investment How can you capitalize (or create) on new forms of collaboration between public and private actors of the city? Vibrant Culture Smart vs. smarter A city is – a living organism – a system of systems that transcends multiple lifetimes Natural resources Safe Distinctive 19
  • 20. © 2013 IBM Corporation Smart vs. smarter Technology advances are creating new solutions and new markets 20
  • 21. © 2013 IBM Corporation 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  Better manage  Tell the story Role of ICTs  Low and high-level mediation within and among urban systems  Sensing urban system activity  Visualizing, analyzing, optimizing  Transparency among people, government, commerce  New forms of urban infrastructure  2-way interaction beyond portals 21
  • 22. © 2013 IBM Corporation 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 Smart vs. smarter We can collect data from almost anything … Every day, 15 petabytes of new information are being generated. This is 8X more than the information in all U.S. libraries. 15 petabytes Digital and physical infrastructures of the planet are converging 22
  • 23. © 2013 IBM Corporation 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 23
  • 24. © 2013 IBM Corporation City Recycling River QualityUrban Water Loss Building C02 Data from sensors and systems Understanding Information Smart vs. smarter … aggregate, visualise and draw insights from it … 24
  • 25. © 2013 IBM Corporation Smart vs. smarter … and reveal how city systems affect each other … 25
  • 26. © 2013 IBM Corporation Smart vs. smarter We can tell people the impact of the choices they are about to make … 26 Start Time End 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 19:47 NHBO
  • 27. © 2013 IBM Corporation Smart vs. smarter … appeal to their sense of place and community … 27 Resident View City View
  • 28. © 2013 IBM Corporation Smart vs. smarter … offer new ways to form markets 28 © 2013 IBM Corporation
  • 29. © 2013 IBM Corporation 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. 29
  • 30. © 2013 IBM Corporation 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 Smart cards helped increase capacity at Singapore Land Transport Authority, to over 20M fare transactions per day Amsterdam Airport Schiphol moves 20million more bags every year with a smarter baggage system In Delft, developing enhanced flood prediction and protection systems for coastal areas and river deltas lower costs in Reggio Emilia via collaborative education platform Miami-Dade County Public Schools have increased academic achievement across the board 2x Endessa, Spain utilizes real- time monitoring & smart meters to reduce energy use by 20%
  • 31. © 2013 IBM Corporation 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 New dataNew data--drivendriven frame(sframe(s) of reference) of reference Professions that plan, design, build, operate, manage and renew cities Professions that plan, design, build, operate, manage and renew cities Denizens in cities (and their communities) Denizens in cities (and their communities) Soft and hard infrastructures Soft and hard infrastructures  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 31
  • 32. © 2013 IBM Corporation 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 Leadership and governance, networks and community organizations, innovation forums Soft infrastructure Starting Smarter Technology Reference Architecture Hard infrastructures Physical spaces and buildings Transport and utilities network Information and Communications Technology • Consolidated analytical and information infrastructure • Consolidated telecommunications infrastructure •Consolidated mobility infrastructure • Consolidated commerce infrastructure •High performance computing centric capabilities City operations, consolidated response, event mgmt City Systems (their competencies, capabilities, processes) Trans- port Health Cul- ture Ind& Econ City Admin Pub Safety Social Ed Resou rces Utili- ties Others City Systems (their competencies, capabilities, processes) Trans- port Health Cul- ture Ind& Econ City Admin Pub Safety Social Ed Resou rces Utili- ties Others (Urban / City Systems) Ecosystem of organizations (and their roles) Public Sector Third Sector Community Orgs Private Sector Ecosystem of organizations (and their roles) Public Sector Third Sector Community Orgs Private Sector People (and their roles) Citizens, Employees, Innovators, Visitors, Residents … People (and their roles) Citizens, Employees, Innovators, Visitors, Residents … HealthHealth WealthWealth OpportunityOpportunity SafetySafety IndependenceIndependence ChoiceChoice SustainabilitySustainability OthersOthers …… Shared Outcomes 32 A system provides context © 2013 IBM Corporation
  • 33. © 2013 IBM Corporation 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 … 33 IBM ApproachIBM Approach Overall DesignOverall Design DirectControlExecute Marketing & Customer Manage ment Consumer Segmentation Cust omer Relationship Strategy Marketing Strategy& Planning Cust omer Behavior Model ing Market & Competit or Research Customer Satisf action Measurement & Management Segmentation Management Clientelling Call Cent er Campaign Management Customer Service Loyalty Cust omer Communications Mass Market ing & Advertisi ng Target Market ing Af ter Sales Services Customer Reposit ory Products Merchandise St rategy Merchandise Planning Assortment Planning Product Development (e. g. Private Label) B rand Management P ricingS trat egy Sourcing P lanning Price / Promot ions Management Inventory Management S uppl yTermsA dministrat ion & Pricing Product Lifecycle Management (P LM) Allocations PO & Trade Funds Management Purchasing / Sourcing Demand Forecast ing Master Data Management Store and Channel Multi-channel S trat egy Store & Channel Strategy St ore Design & Layout Channel Design & Layout St ore & Channel Prof itability St ore Operations Management Transact ion Management Planogram Replenishment Services Delivery Price Changing Time & A ttendance Floor Stocking, Back Room Task Mgt Loss Prevention Workforce Management P OS Execut ion / Cash Managem ent Multi-channel Call Center Distribution & Warehousing Distribution, Warehouse, Supply Chain St rategy Transportation Planning Supplier Relat ionship P lanning (Logistics) Supplier Perf ormance Managem ent I n-bound Logist ics Intra-company & Out bound Logistics Transportation / Fl eet Management Warehouse Managem ent Distri bution Center Operat ions Yard Management Ret urns& Reclamati on Product Track& Trace Transportation / Fleet Operat ions Bus iness Administration Corporate St rategy Financial Management & Planning LOB Planning Locat ionS trat egy Alliance Management B usiness Performance Report ing Legal & RegulatoryCom pliance Real Estate & Const ruct ion Management Risk Managem ent Stock Ledger HR Management (Career Development, Training, Recruiting) HR Administ ration / Payrol l Corporat e Audit Corporate A ccounting (GL AP, Treasury, et c Sal es Audit I ndirect P rocurem ent Credit Operations PR & Invest or Rel at ions IT S ystems& Operations DirectControlExecute Marketing & Customer Manage ment Consumer Segmentation Cust omer Relationship Strategy Marketing Strategy& Planning Cust omer Behavior Model ing Market & Competit or Research Customer Satisf action Measurement & Management Segmentation Management Clientelling Call Cent er Campaign Management Customer Service Loyalty Cust omer Communications Mass Market ing & Advertisi ng Target Market ing Af ter Sales Services Customer Reposit ory Products Merchandise St rategy Merchandise Planning Assortment Planning Product Development (e. g. Private Label) B rand Management P ricingS trat egy Sourcing P lanning Price / Promot ions Management Inventory Management S uppl yTermsA dministrat ion & Pricing Product Lifecycle Management (P LM) Allocations PO & Trade Funds Management Purchasing / Sourcing Demand Forecast ing Master Data Management Store and Channel Multi-channel S trat egy Store & Channel Strategy St ore Design & Layout Channel Design & Layout St ore & Channel Prof itability St ore Operations Management Transact ion Management Planogram Replenishment Services Delivery Price Changing Time & A ttendance Floor Stocking, Back Room Task Mgt Loss Prevention Workforce Management P OS Execut ion / Cash Managem ent Multi-channel Call Center Distribution & Warehousing Distribution, Warehouse, Supply Chain St rategy Transportation Planning Supplier Relat ionship P lanning (Logistics) Supplier Perf ormance Managem ent I n-bound Logist ics Intra-company & Out bound Logistics Transportation / Fl eet Management Warehouse Managem ent Distri bution Center Operat ions Yard Management Ret urns& Reclamati on Product Track& Trace Transportation / Fleet Operat ions Bus iness Administration Corporate St rategy Financial Management & Planning LOB Planning Locat ionS trat egy Alliance Management B usiness Performance Report ing Legal & RegulatoryCom pliance Real Estate & Const ruct ion Management Risk Managem ent Stock Ledger HR Management (Career Development, Training, Recruiting) HR Administ ration / Payrol l Corporat e Audit Corporate A ccounting (GL AP, Treasury, et c Sal es Audit I ndirect P rocurem ent Credit Operations PR & Invest or Rel at ions IT S ystems& Operations DirectControlExecute Marketing & Customer Manage ment Consumer Segmentation Cust omer Relationship Strategy Marketing Strategy& Planning Cust omer Behavior Model ing Market & Competit or Research Customer Satisf action Measurement & Management Segmentation Management Clientelling Call Cent er Campaign Management Customer Service Loyalty Cust omer Communications Mass Market ing & Advertisi ng Target Market ing Af ter Sales Services Customer Reposit ory Products Merchandise St rategy Merchandise Planning Assortment Planning Product Development (e. g. Private Label) B rand Management P ricingS trat egy Sourcing P lanning Price / Promot ions Management Inventory Management S uppl yTermsA dministrat ion & Pricing Product Lifecycle Management (P LM) Allocations PO & Trade Funds Management Purchasing / Sourcing Demand Forecast ing Master Data Management Store and Channel Multi-channel S trat egy Store & Channel Strategy St ore Design & Layout Channel Design & Layout St ore & Channel Prof itability St ore Operations Management Transact ion Management Planogram Replenishment Services Delivery Price Changing Time & A ttendance Floor Stocking, Back Room Task Mgt Loss Prevention Workforce Management P OS Execut ion / Cash Managem ent Multi-channel Call Center Distribution & Warehousing Distribution, Warehouse, Supply Chain St rategy Transportation Planning Supplier Relat ionship P lanning (Logistics) Supplier Perf ormance Managem ent I n-bound Logist ics Intra-company & Out bound Logistics Transportation / Fl eet Management Warehouse Managem ent Distri bution Center Operat ions Yard Management Ret urns& Reclamati on Product Track& Trace Transportation / Fleet Operat ions Bus iness Administration Corporate St rategy Financial Management & Planning LOB Planning Locat ionS trat egy Alliance Management B usiness Performance Report ing Legal & RegulatoryCom pliance Real Estate & Const ruct ion Management Risk Managem ent Stock Ledger HR Management (Career Development, Training, Recruiting) HR Administ ration / Payrol l Corporat e Audit Corporate A ccounting (GL AP, Treasury, et c Sal es Audit I ndirect P rocurem ent Credit Operations PR & Invest or Rel at ions IT S ystems& Operations DirectControlExecute Marketing & Customer Manage ment Consumer Segmentation Cust omer Relationship Strategy Marketing Strategy& Planning Cust omer Behavior Model ing Market & Competit or Research Customer Satisf action Measurement & Management Segmentation Management Clientelling Call Cent er Campaign Management Customer Service Loyalty Cust omer Communications Mass Market ing & Advertisi ng Target Market ing Af ter Sales Services Customer Reposit ory Products Merchandise St rategy Merchandise Planning Assortment Planning Product Development (e. g. Private Label) B rand Management P ricingS trat egy Sourcing P lanning Price / Promot ions Management Inventory Management S uppl yTermsA dministrat ion & Pricing Product Lifecycle Management (P LM) Allocations PO & Trade Funds Management Purchasing / Sourcing Demand Forecast ing Master Data Management Store and Channel Multi-channel S trat egy Store & Channel Strategy St ore Design & Layout Channel Design & Layout St ore & Channel Prof itability St ore Operations Management Transact ion Management Planogram Replenishment Services Delivery Price Changing Time & A ttendance Floor Stocking, Back Room Task Mgt Loss Prevention Workforce Management P OS Execut ion / Cash Managem ent Multi-channel Call Center Distribution & Warehousing Distribution, Warehouse, Supply Chain St rategy Transportation Planning Supplier Relat ionship P lanning (Logistics) Supplier Perf ormance Managem ent I n-bound Logist ics Intra-company & Out bound Logistics Transportation / Fl eet Management Warehouse Managem ent Distri bution Center Operat ions Yard Management Ret urns& Reclamati on Product Track& Trace Transportation / Fleet Operat ions Bus iness Administration Corporate St rategy Financial Management & Planning LOB Planning Locat ionS trat egy Alliance Management B usiness Performance Report ing Legal & RegulatoryCom pliance Real Estate & Const ruct ion Management Risk Managem ent Stock Ledger HR Management (Career Development, Training, Recruiting) HR Administ ration / Payrol l Corporat e Audit Corporate A ccounting (GL AP, Treasury, et c Sal es Audit I ndirect P rocurem ent Credit Operations PR & Invest or Rel at ions IT S ystems& Operations Component Business Modeling Actionable Business Architecture Business Models City Ecosystem Transportation Public Safety Water … Local Govt Core Systems • Water Mgmt • Citizen Health • Energy • Environment • Urban planning • Social Services • Education • Culture and Recreation • Judicial and Justice • etc. Business of IT Finance Human CapitalPayment … Shared Services • Procurement • Asset Management • Tax Collection • etc. Operations Models IT Models Investment and Initiatives Aligned with Business Scenarios  and Key Performance Indicators
  • 34. © 2013 IBM Corporation When you get the chance, start smarter … then chart a shared roadmap – a “living” path of progress – in collaboration with others 34 City Master Plan (physical, spatial, etc.) “Digital” Master Plan (informational, digital, temporal, technological, etc.) City Master Plan (physical, spatial, etc.) “Digital” Master Plan (informational, digital, temporal, technological, etc.) City Operational Governance City Information “Backbone” City Operational Governance City Information “Backbone” City Services & Enforcement Engagement & Interoperability “Platforms” City Services & Enforcement Engagement & Interoperability “Platforms” Continuous Improvement & Adaptation Innovation Infrastructure Continuous Improvement & Adaptation Innovation Infrastructure
  • 35. © 2013 IBM Corporation 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 Systems thinking plus integrated design discipline are essential 4. Co‐define and decide how your smarter city will be experienced 5. Identify city systems (+ smarter enablers + data) used in each experience Removing bar- riers is much harder than making sure unnecessary ones aren’t built 6. Integrate into the city’s master plan, downstream design, roadmap, etc. 7. Execute! Only when the change is visible, “brand” it 35 Lessons from the Smarter Cities journeys of others