Ask What Your City Can Do for You: How IoT Initiatives Are ...info.forbes.com/rs/790-SNV-353/images/Intel-IoT#3-REPORT-FINAL-WEB.pdfParkeon smart kiosks, electronic machines connected

Ask What Your City Can Do for You: How IoT Initiatives Are Improving City Dwellers’ Quality of Life

IN ASSOCIATION WITH:

2 | ASK WHAT YOUR CITY CAN DO FOR YOU: HOW IOT INITIATIVES ARE IMPROVING CITY DWELLERS’ QUALITY OF LIFE

TABLE OF CONTENTS

3 INTRODUCTION

3 PEOPLE FIRST

4 TOP FOCUS AREAS

6 TOP BENEFICIARIES

7 COLLABORATION

8 TECHNOLOGY

10 LOOKING AHEAD

11 METHODOLOGY

11 ACKNOWLEDGMENTS

COPYRIGHT © 2018 FORBES INSIGHTS | 3

INTRODUCTION

Smart technologies can do more than improve our lives. They can also give us some of our life back, 15 days a year to be precise, according to a study from Intel and Juniper Research.1 The technologies’ potential to give us this time back stems from improvements in mobility, safety, healthcare and productivity.

To better understand how smart technologies are improving our daily lives, Forbes Insights and Intel surveyed 211 “smart city” leaders globally from both the public and private sectors. This report discusses how they decide on and implement Internet of Things (IoT) initiatives in their cities, and the keys to success in realizing the potential of technology to improve peoples’ lives.

PEOPLE FIRST

“When introducing technology initiatives, you start with the people and you finish with the people,” says Bob Bennett, chief innovation officer of Kansas City, Missouri. The Forbes Insights/Intel survey confirms that a vast majority of smart-city executives—whether in government or corporations—agree that creating a smart city is not a question of cool technology but of what it can do for the cities’ inhabitants. When undertaking IoT initiatives, most are driven by improving the quality of life, with just 17% being driven mostly by financial goals.

Sometimes technology plays the role of a helpful human, or more often, multiple humans. CityBeacon kiosks, for example, which are currently being rolled out in the Dutch city of Eindhoven, act as a guide, guard, friend or even a career counselor, to name just a few roles they play. These 21st-century kiosks, powered by Intel processors, crunch data for analytics purposes and provide a valuable demonstration of how connected technology can help make cities easier to navigate and can connect with locals and tourists alike. Their displays and touchscreens contain all the details about nearby points of interest and entertainment. Users can also view city maps, real-time transport schedules and weather reports, as well as local news, events, housing and even job listings.

CityBeacons also help authorities maintain public safety. Integrated cameras can monitor the environment. Microphones allow the public to communicate with emergency services, and speakers allow the city to broadcast public service announcements. Air quality, UV-level and audience analytics sensors can collect the data local authorities need to make smarter decisions.

1 “Smart Cities – What’s in It for Citizens?” Juniper Research, 2018.


TOP FOCUS AREAS

The exact issues and areas that different IoT initiatives aim to address vary, of course, depending on the needs and priorities of specific locations. Across the board, the three focus areas that emerged as top IoT initiatives in the Forbes Insights/Intel survey are transportation, healthcare and the energy grid (Figure 1).

TRANSPORTATIONThe future of transportation captures people’s attention with images of self-driving, shared vehicles

choosing optimal routes and functioning as entertainment centers on wheels. The truth on the ground today is, of course, much different. Heavy congestion in cities can result in drivers’ spending more than 70 hours per year in gridlock.2 Additionally, the slow movement of traffic increases the volume of microscopic particulate matter, affecting the health of drivers as well as of pedestrians. Traffic and air pollution are serious issues facing cities today.

The need to solve these issues with IoT initiatives is becoming urgent considering the projected population growth of cities, from 54% of the total world population today to 66% in 2050.3

Alleviating drivers’ stress are multiple smart technologies that can be used to dynamically adjust traffic light phasing, with the aim of minimizing red light delays and smoothing overall traffic flow. Parkeon smart kiosks, electronic machines connected to the cloud, for instance, enable demand-based parking within a city.

With 540 vehicles per 1,000 people, San Francisco drivers waste, on average, 150 hours every year stuck in congestion. The city has developed a comprehensive strategy for a technology platform supporting an integrated service, including options such as Transportation as a Platform (establishment of a city framework for an integrated service across multiple providers); Transport as a Service (development of a consumer solution to handle pricing, routing, booking and payment through a single platform); and Shared AVs (autonomous vehicles).

Public transportation accounts for 10 billion trips every year. The San Diego Metropolitan Transit System (MTS) alone estimates that riders will take 92 million trips in the next year. To increase the quality of travel, the MTS worked with Cisco and Davra Networks on an Intel architecture-based solution that provides edge intelligence for sharing near-

Figure 1. Which of the following industries/areas currently have smart city solutions?

37%

28%

23%

21%

18%

20%

15%

20%

12%

20%

15%

Transportation

Shipping logistics

Building management

Energy/smart grid

E-government (administrative services)

Retail

Healthcare

Public safety systems

Irrigation/water management

Education/schools

Waste management

2 Ibid.

3 Ibid.


real-time scheduling information with citizens. The result is a dynamic estimated time of arrival (ETA) system that responds to changing variables to keep riders informed of schedule changes and arrival times. Information is shared on digital signage at all bus and train stations and on the transit vehicles themselves. In addition to the ETAs, the configuration supports a passenger announcement (PA) system to all the train depots and stations throughout the city.

HEALTHCAREThe Internet of Things in healthcare refers to the connected system of medical devices and applications that collect data that is then provided to healthcare IT systems through online computer networks. Today, there are 3.7 million medical devices in use that are connected to, and monitor various parts of, the body to inform healthcare decisions. A report by Allied Market Research predicts that the IoT healthcare market will reach $137 billion worldwide by 2021. Eighty-seven percent of healthcare

organizations plan to implement IoT technology by 2019—which is slightly higher than all other industries—and patient monitoring is the most cited use of IoT in this particular sector.

Simply put, IoT saves lives. City officials typically target their most acute health issues. Louisville, Kentucky—an industrial center nestled in the Ohio River Valley, with some of the worst air quality in the country—is a tough place for people living with lung diseases like asthma and chronic obstructive pulmonary disease (COPD). AIR Louisville was designed to be the largest public health study of respiratory disease ever conducted by a public/private collaboration.

Launched in 2015, AIR Louisville used medication sensors from Propeller Health, a digital therapeutics company, to track where, when and why people had asthma or COPD symptoms. The data was relayed to a dashboard app, viewable by individual patients and healthcare professionals from Propeller. Along with sending notifications about bad air quality days, the dashboard helped patients predict asthma patterns. AIR Louisville collected 1.2 million data points and combined this data with over 5.4 million environmental data points to help Louisville learn what causes asthma and COPD symptoms for its citizens. Over 12 months, AIR Louisville resulted in an 82% reduction in asthma rescue inhaler use by participants and more than doubled their asthma-free days.

ENERGY GRIDEnergy use presents the third major focus for cities. Cities already account for some 75% of power consumption around the world, with 40% going to buildings alone. A recent report by the American Council for an Energy Efficient Economy (ACEEE) estimates that buildings could attain a savings of roughly 18% on whole-building energy consumption just from installing smart technologies.

Smart city technology can not only help reduce energy consumption but also can make the use of renewables a more viable prospect. This means that, ultimately, it can help people save money and reduce their ecological footprint—good for cities and good for their inhabitants. At Bosch, energy solutions include virtual power plants, which store power or feed it into the grid as needed, and stationary energy storage systems—essentially massive batteries that can store enough energy to power dozens of homes.

In a smart grid, buildings are what in freight is called the last mile. The point where the product, in this case energy, reaches its final customer—a human being with individual needs, or a machine with its own production schedule. Without precision, this is where much of the cost is incurred and waste happens. Technology provides a solution. In 2016, Intel created its first IoT-enabled smart building in Bangalore, India. The office building is a 10-story, 630,000-square-foot structure, which was outfitted with approximately 9,000 sensors used to track and optimize temperature, lighting, energy consumption and occupancy in the building. The sensors provide 24/7 real-time data to generate actionable insights for Intel’s facilities team.


TOP BENEFICIARIES

While cities try to improve the quality of life of all citizens, those citizens who are most in need are a priority. One such group: Citizens with low economic status top the list of those targeted by IoT initiatives worldwide (Figure 2). “The difference in terms of the adoption of smart city initiatives are stark when looked at along economic differences. That is why we are focusing on digital inclusion. This is where the greatest impact will be for a community as a whole,” says Bennett.

Today, 34 million Americans lack an affordable and reliable broadband connection. For example, many low-income families may have only one device per family, which seriously limits their ability to access IoT initiatives. This digital divide means they are unable to take advantage of economic, health and educational opportunities that exist in other connected communities.4 With smartphones serving as the primary interface in the modern city, closing the digital divide,5 and extending access to networks and devices, is a critical first step.

Around the world, cities are creating inclusive IoT initiatives. In California’s Santa Clara County, predictive analytics help prioritize shelter space for the homeless. On the London Underground, an app called Wayfindr uses Bluetooth to help visually impaired travelers navigate the tube’s twisting pathways and escalators.

Figure 2. Whose quality of life are your IoT initiatives focusing on? Which of the following groups have benefited the most so far in terms of their quality of life from your IoT initiatives?

40%

33%

29%

26%

26%

17%

37%

29%

28%

22%

18%

27%

Citizens with low economic status

Senior citizens

Citizens in rural areas

The disabled

Students/youth

Patients

Beneficiaries to date

Target beneficiaries

4 Connect Americans Now.

5 http://www.g20-insights.org/policy_briefs/digital-infrastructure-overcoming-digital-divide-emerging-economies/

“Transportation and mobility are related to financial inclusion. To access economic opportunity, you need to be able to get from your home to the best job or school.”

MIGUEL GAMINO, EXECUTIVE VICE PRESIDENT FOR GLOBAL CITIES, MASTERCARD; FORMER CHIEF TECHNOLOGY OFFICER OF NEW YORK CITY


COLLABORATION

Almost exclusively, smart city IoT initiatives are undertaken by partnerships, often with multiple partners. Partnerships between government and corporations are perceived as the most effective in designing and implementing smart city solutions (Figure 3). However, less than half of survey respondents consider them effective, which points to the need for further improvement.

An important strength in the public sector is its ability to collaborate. “If something is solved by Los Angeles and something different is solved by Bogota, Colombia, those solutions can be shared among cities. For that strategy to work, we need to develop a set of standards and align on how the solutions are developed,” says Gamino. Mastercard has been emphasizing partnerships with other non-governmental entities as well. In the latter half of 2017, it launched City Possible, an effort to bring together partners to collaborate on solving urban problems using technology and data insights.

Costs are one reason public/private partnerships are so popular. Over the last three years, budgets have increased at less than half of the organizations surveyed (46%), and in many cases the increases were not significant (less than 10%). With lack of funding and costs of new initiatives being the top barrier holding back the success of smart city/IoT initiatives

Figure 3. Which of the following entities have been most effective in designing/implementing IoT/smart city solutions? (Percentage “mostly effective” or “highly effective”)

48%

48%

48%

44%

33%

40%

30%

36%

37%

27%

Partnerships between government and corporations

Local/city governments or agencies

Federal/national government or agencies

Education/schools

Health and human services agencies

Corporate entities

Energy services or agencies

State/regional government or agencies

Environmental agencies (water, air)

Traffic or motor vehicle agencies

6 Can smart cities be equitable?, Brookings, 2018.

And in Kolkata, India, a Dublin-based startup called Addressing the Unaddressed has used GPS to provide postal addresses for more than 120,000 slum dwellers in 14 informal communities. The goal is to give residents a legal means of obtaining biometric identification cards, essential documentation needed to access government services and register to vote.6

“Transportation and mobility are related to financial inclusion. To access economic opportunity, you need to be able to get from your home to the best job or school,” says Miguel Gamino, executive vice president for global cities at Mastercard and former chief technology officer of New York City. Mastercard is helping cities adopt open-loop payments, allowing people to tap the card they already carry—and pay for just one ride on a train or bus without having to use a proprietary card that requires a prepaid minimum.


TECHNOLOGY

Technology is an underlying enabler for improving peoples’ lives. An analysis of technology-related challenges shows that integration is a major issue (Figure 4). Without integration of different technologies, smart city solutions will be fragmented, inefficient and expensive.

The technology-related challenges vary by type of city executive. Leaders from federal, state and local governments find it most difficult to integrate new technologies with legacy networks (34%). Leaders representing verticals are also concerned about integrating technologies, but across different initiatives

Figure 4. What are the top technology-related challenges associated with these transformative technologies? (Top six)

34%

28%

28%

28%

28%

28%

Integrating technologies across different initiatives

Keeping up with all of the new technologies

Keeping technology projects on time

Overall costs/funding

Difficulties with making a business case/proving outcome

Securing the technologies

(34%), public/private partnerships offer an opportunity not only to leverage the technological know-how of corporations but also to help cities with costs. One way is to barter some of a city’s assets (e.g., real estate, access to existing networks) in exchange for investment and know-how.

Kansas City worked with 13 partners to create 54 smart blocks downtown. The total cost of the project was $20 million-plus, but the city’s cash outlay came to just $1.4 million. The city enabled its partners to access its fiber lines as well as streetlights. “The key to a successful collaboration is based on embracing the fact that partners need to make profits, and the right valuation of assets the city brings to the table,” says Bennett. He is now using the current partnership as a model for extension of IoT initiatives across the whole city.


and not legacy technologies (utilities: 44%; public transportation: 36%).

Technology and telecommunications companies are working on creating integrated solutions to help cities with integration. Intel, Current by GE and AT&T joined forces to provide an integrated, modular solution that improves city residents’ quality of life, optimizes city finances and accelerates city growth by attracting new residents and businesses.

The Current by GE CityIQ is a universal intelligent node that can be installed on any streetlight pole. The unique intelligent node embedded with multiple sensors is extensible through over-the-air updates that allow analytics, provide connection to neighboring devices and perform multi-sensor fusion over a secure cloud connection. Intelligent nodes on streetlights can instantly see, hear, feel and talk using cameras, microphones and environmental sensors that collect temperature, pressure, humidity, vibration, noise, lighting and compass data.

The City of San Diego, in the largest known urban sensor project in the world to date, is deploying 3,200 Current by GE CityIQ nodes to make the city infrastructure safer and smarter and to improve resident quality of life. For instance, one application called ShotSpotter uses the sensors’ sound and light detection capabilities to help law enforcement. Thanks to the information collected by the sensors, first responders know immediately where shots were fired before they even arrive on the scene.

But the most significant new ideas will come from San Diegans. The city plans to make much of the information from the nodes openly available to app developers. “We actually held a block party for streetlights,” David Graham, San Diego’s deputy chief operating officer, told GE Reports. “We asked the public to tell us what they thought an intelligent city could be and how they thought their streetlights could improve their lives.”

“We actually held a block party for streetlights. We asked the public to tell us what they thought an intelligent city could be and how they thought their streetlights could improve their lives.”

DAVID GRAHAMDEPUTY CHIEF OPERATING OFFICER, CITY OF SAN DIEGO


LOOKING AHEAD

We are at the very beginning of creating smart cities. Just 4% of those surveyed by Forbes Insights and Intel consider their cities to be very smart, mainly in environmental impact and public transportation (Figure 5). Typically, a city would have some pockets with smart IoT solutions, but there is still much work to be done for cities to be smart across the board. “We are a cool city with a smart corridor,” says Kansas City’s Bennett. Even these pockets of excellence are not common, as just a fifth of survey respondents or less indicate they have such specific smart pockets in their cities.

While executives are on the right path, looking three years ahead shows much room for improvement in how IoT initiatives will be developing. Less than half of survey respondents express full confidence in the momentum and resources of their IoT quality of life initiatives. Considering the advanced technologies that are being developed, as well as the needs of citizens, this should serve as a call to action to intensify smart city initiatives, starting with collaboration among partners and developing integrated solutions.

Figure 5. How would you assess the “smartness” of your city in the following areas? (The level of “smartness” is related to how well the city’s current IoT solutions work and how well they improve the quality of life of citizens.) (Percentage who chose 5 – Very Smart on a 1 to 5 scale.)

21%

20%

19%

19%

15%

15%

12%

17%

17%

17%

8%

13%

14%

4%

Environmental impact (e.g., carbon emissions or pollution)

Lower cost of services

Traffic

Irrigation/water management

Providing mobility

Public safety

Efficient energy use/smart grid

Public transportation

Air quality

Healthcare

Your city overall

Improved productivity (e.g., ports can ship more/faster)

E-government (administrative services)

Waste management


METHODOLOGY

The findings in this report are based on a survey conducted by Forbes Insights, in partnership with Intel, of 211 executives, all of whom had a working knowledge of their organization’s efforts to enhance quality of life through smart city initiatives. The survey included responses from North America (60%), Asia-Pacific (19%) and Europe/Middle East (21%). Titles included leaders in healthcare (24%), leaders in utilities (24%), leaders in public transportation (24%), leaders in local government (10%), leaders in state government (9%) and leaders in federal government (9%).

ACKNOWLEDGMENTS

Forbes Insights and Intel would like to thank the following individuals for their time and expertise:

• Bob Bennett, Chief Innovation Officer of Kansas City, Missouri

• Miguel Gamino, Executive Vice President for Global Cities, Mastercard; Former Chief Technology Officer of New York City


ABOUT FORBES INSIGHTS

Forbes Insights is the strategic research and thought leadership practice of Forbes Media, a global media, branding and technology company whose combined platforms reach nearly 94 million business decision makers worldwide on a monthly basis. By leveraging proprietary databases of senior-level executives in the Forbes community, Forbes Insights conducts research on a wide range of topics to position brands as thought leaders and drive stakeholder engagement. Research findings are delivered through a variety of digital, print and live executions, and amplified across Forbes’ social and media platforms.

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Ask What Your City Can Do for You: How IoT Initiatives Are ...info.forbes.com/rs/790-SNV-353/images/Intel-IoT#3-REPORT-FINAL-WEB.pdfParkeon smart kiosks, electronic machines connected