The Role of the Private Sector in Partnering with Cities

Smart+Connected Cities The role of ICT: progress and ways forward

Shane Mitchell Sr Manager, Urban Innovation
WASHINGTON TOWARD A PARTNERSHIP FOR SUSTAINABLE CITIES June 13, 2011
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Many studies on business case for smart cities

Climate Group & GeSI Smart 2020 report 2009 concluded a 15% GHG reduction by utilising smart technologies in cities

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Benefits of smart connected cities are known

Within 20 years, a Community of 5 Million:
Community Revenues Economic Growth Energy Efficiency New Jobs

+$15B

9.5%

+30%

375,000

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Urban Innovation Blueprint

for the Smart Connected City
Smart Community (Public Service/ Work/Health/Edu)

Smart Urban Mobility

Smart Energy/ Resource Recycling

Smart Safety & Security

Green u-Logistics

Smart Community Centers Public Video Call Center (120) Mobile/Tele Healthcare Home TP-based Green u-Edu.

PTA & Green uBike Smart Travel Stations Smart Parking Mobile AR Tour EcoPass (Smart Road Pricing) 13~18%

Smart Green Urban Services Center Smart Energy Management Center Smart Buildings Eco-Mileage (EcoCard) ~33.4%

Real-time Smart Safety Logistics Infra Mobile Urban Services Platform Green Logistics Operation System Green u-City Urban Green u-Logistics Services IOC Info Utility Service Smart NakdongRiver, Disaster Prevention

Carbon Impact*

~33%

~21%

25~30%

Sustainability Collaboration Framework and Platform Next-Gen ICT Infrastructure

* Source: http://connectedurbandevelopment.org/toolkit(2010, GeSi Smart 2020, The Climate Group (2008), MIT Mobile Experience Lab., 2010
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3/40

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Cities realise importance of ICT & smart cities

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Development process is very complex smart or not !

Feasibility / Planning Design Stage Construction Stage Operation

Owner / Developer Strategic Consultants Lead Designer / Architects / Program Manager Engineers & sub-consultants General Contractor / Builder

Owner & Operator

Developer / Owner Development Process for Partnership / Ownership / Operations / Financing

Operation

Vision, Strategy & Feasibility Models

Asset Bundles

Partnership Models

Delivery Models Operating Models Governance Models

Illustrative
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So what have we learned about smart cities ?

To help summarise our learning about smart cities we need to review the following questions :

Why - ICT makes a city smarter

(economic business case) What - are the crucial ICT components in a smart city (where and how is ICT operating) How - do you enable smart city policies and solutions to be implemented in a city
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The why is partially understood and accepted The what is most popular with product / solution vendors The how is the biggest challenge facing smart cities
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Overall thoughts on smart cities

City Strategy

City Business Case

City Design

We Need

Define overall
Strategy Stakeholder alignment Macroeconomic impact

Financial Models
iterative process

Master Plan
Business Case led Iterative process

Understanding of
how cities operate and a city framework is required

Who do we attract
to a new city

What is the
fundamental demand for the city

Development
phasing

Stakeholder
alignment

Future Proof
smart city with Technology

Common typology/
taxonomy Better training / new smart city university education

Funding /
Partnership / business case first

Development
Decision process

ICT insertion Operator /

Operations involvement

Cross city siloteams required

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Change is needed to make cities smart

Five Building Blocks of Successful Change Awareness
Why Change Is Necessary

Desire

To Participate in Change

Knowledge and ability some key pieces missing to really make our cities smarter

Knowledge

Know How to Change

Ability

To Implement New Skills and Behaviors

Reinforcement

To Sustain the Change

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We need to understand the city framework to make the city smart

4. Policy Best practice & policy examples

1. Utilities

2. Transport 3. Real Estate 4. City Services

3. City Components

2. City Indicators 1. City Objectives Social, Environmental, Economic

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Stakeholders roles requires better understanding

Where is the role of smart cities actually inserted within each stakeholder ?

Policy

Regulators

Developers

Owners

Operators

Users / Public / Business

Stakeholders ultimately determine the shape of cities and how they will evolve and at what
speed

In many cities the above roles are often performed by the same or related entities which
changes the interdependences and dependencies (e.g. state controlled countries or cities)

Where and how smart ICT solutions / designs actually fits into the components of the city
needs to be carefully examined / understood within each stakeholder role
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Last thoughts.its still about people

crucial for sustaining recovery and laying the foundations for economies that are competitive in the long term.

ICT enables greater access to basic services by all segments of society and improves the ways these basic services (e.g., education, finance, and healthcare) are provided to citizens
World Economic Forum Global Information Technology Report 2009-2010

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Thank you.