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© 2010 IBM Corporation A vision of smarter cities: How cities can the lead way into a prosperous and sustainable future Susanne Dirks, Manager, Global Center for Economic Development Green Economy Conference, Dublin, 21 st May 2010

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© 2010 IBM Corporation

A vision of smarter cities:How cities can the lead way into a prosperous and sustainable future

Susanne Dirks, Manager, Global Center for Economic Development

Green Economy Conference, Dublin, 21st May 2010

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© 2010 IBM Corporation2 Apr 10, 2023

The focus of our research is on topics relation to economics and the relationship between ICT and economics

Institute for Business Value: IBV Centre for Economic Development

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© 2010 IBM Corporation3 Apr 10, 2023

Agenda

Cities take centre stage

Cities are made up of a system of systems

Cities face a number of challenges that threaten sustainability and prosperity

Building a ‘smarter city’

Agenda

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© 2010 IBM Corporation4 Apr 10, 20234

The global environment has changed, making cities a critical level of action

Technology Politics

Economics

An urbanworld

The political landscape has

changed, with cities becoming more important actors

Cities will have a central role in the urbanized 21st century

world

The world economy is now globally integrated and

services-based, with cities as its hubs

Technological advances mean that

cities can better understand and control

their development

Cities take centre stage

A Vision for Smarter Cities | July 2009

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© 2010 IBM Corporation5 Apr 10, 20235

Cities are based on a number of core systems which are central to their operation and development

Cities are made up of a system of systems

A Vision for Smarter Cities | July 2009

CITY STRATEGYCITY GOVERNANCE

City Operations SystemsCity User SystemsCity Infrastructure Systems

City Services

CitizensBusinesses

WaterCommunication

EnergyTransport

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Current challenges Threats to sustainable prosperity

Energy Depletion of energy sources

Climate change

Communication

GHG emissions … energy supply shortages

CitizensDemographics … skills … health The pensions crisis

Exploding cities vs dying cities

Water

Challenge of a terabit world

BusinessGlobal competition…Administrative burdenBalancing ever increasing complexity with efficiency

Transport

Water leakage… access .. qualityFreshwater shortages

Flooding

ICT adoption and usage

Taxes and costsCongestion … pollution

City servicesPressure on delivery and funds Inadequate service levels

Inefficiencies

Cities are under pressure to tackle the significant interrelated challenges they face

Cities face a number of challenges that threaten sustainability and prosperity

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© 2010 IBM Corporation7 Apr 10, 20237

0

500000

1000000

1500000

2000000

1990 2007

Private car ownership, 1990-2007Total number of vehicles under current licence

Cities must act now and improve transport systems

Source: Sustainable Energy Ireland. Energy in Transport. 2009 Report

-15 100 215 330 445 560

<1.0 litre1.0-1.2 litre1.2-1.5 litre1.5-1.7 litre1.7-1.9 litre1.9-2.1 litre

>2.1 litre

Change in car engine size, 1990-2008% Growth

+1.086 million

Cities face a number of challenges that threaten sustainability and prosperity

Core challenges identified in the Eco-Efficiency Jam 2010:

Issue of pricing transport for suburban dwellers working in the city

Creating flexible and demand-responsive public transport systems

Reducing demand for transport without reducing workforce productivity

Uni-directional loads on public transport networks at peak hours

Energy consumptionLand consumption Lost farmlandWildlife habitat costIncreased taxesGDP impactAir pollutionWater and land pollutionNoise pollution

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© 2010 IBM Corporation8 Apr 10, 20238

Stockholm’s Intelligent Transportation System delivers sustainability in the broadest possible sense

Financial

Economic sustainability: using resources efficiently, meaning all

costs, private and public, are reflected in the price of a service in a city

Financial sustainability: so that a city’s costs are in

line with revenues

Environmental sustainability: so that a city does not run out of resources and is not wasting resources

Environmental

Economic

The congestion charge has been self-financing, generating €84m that will be channeled into

further reducing congestion

Example of Stockholm’s Smart Transport System

The environmental benefits include a

reduction in emissions from road traffic of up to 14% and in greenhouse

gases of 40%

Economic benefits include a decrease in inner-city traffic of up to 25%, greater use

of public transport, and a 6% boost in inner-city retail business

A Vision for Smarter Cities | July 2009

Cities face a number of challenges that threaten sustainability and prosperity

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Water systems in Irish cities face efficiency, quality and supply pressures

19.8

21.6

29.0

36.0

43.6

47.9

49.1

52.9

0 20 40 60

South Dublin

Fingal

Dun L/ Rathdown

Dublin City

Waterford City

Limerick City

Galway City

Cork City

Irish Cities: Unaccounted for Water, 2008% age of total volume of water supplied

Source: Local Government Management Services Board, Service Indicators in Local Authorities 2008

35%

18%

47%

Leakage ($9.3bn) Water used

Theft/Poor metering

Current usage of global water supplyEstimated Cost in brackets

Source: World Bank, SIWI, WEF, UNCTAD

Cities face a number of challenges that threaten sustainability and prosperity

Challenges from Eco-Efficiency Jam: Waste of water through losses in

transmission implies direct costs and also associated losses of energy

Water harvesting – currently not cost effective, despite being eco-efficient

There is a need to better manage demand for water from large footprint businesses

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© 2010 IBM Corporation10

Apr 10, 202310 April 10, 2023

Issue Unable to conduct large scale marine environment research and observe ecological phenomena at multiple levels at once.

None availability of live data and lack if capability to respond quickly

Solution Integrated sensor network to provide information on water quality, wave generation and harbour monitoring

Foundational user interface to serve both scientific and management need to make informed decisions

Data analysis and overlay of environmental data through Geographical Information System

Benefits Enables the reduction in time delays in acquiring data to be used in the complex testing of wave energy converter prototypes for green electricity generation

Facilitates real time large scale monitoring and prediction of flooding conditions in Galway Bay

Live data enables quicker response to environmental incidents and events

Smart Bay solution creates worldwide R&D platform for oceanic and environmental research in Galway, Ireland

Dr. Peter Heffernan stated “SmartBay offers a significant new opportunity for Irish industry to create new businesses for Irish technology companies as well as enhancing the viability of the seafood, shipping and water monitoring sectors.”

Cities face a number of challenges that threaten sustainability and prosperity

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Apr 10, 2023

A ‘Smarter City’ as a system of systems – interacting and interdependent – driven by policy – improving operations - meeting the needs of people

SENSE & RESPONDCAPABILITIES

CITIZEN-CENTEREDSERVICES

GREEN CITYFOR A GREENER PLANET

Building a smarter city

CITY POLICY & ACCOUNTABILITY

SMART CITY

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Apr 10, 202312

A smarter city is one that uses technology to transform its core systems and optimize finite resources

We live in a world of pervasive

technologies, sensors, networks

We live in a world of finite resources, such as energy, water, land,

skill

Cities can use technology to

transform their core systems and maximize

finite resources

Building a smarter city

A Vision for Smarter Cities | July 2009

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© 2010 IBM Corporation13

Apr 10, 2023

‘Smart’ requires that solutions be instrumented, interconnected and intelligent

Instrumented

Intelligent technology – in the form of new computing models that can analyze information and relationships - enables cities to use predictive insights for informed decision making and action

Instrumentation enables cities to gather more, better quality, and more timely data than ever before

This offers the ability to measure, sense and see the exact condition of everything

Interconnected technology offers the potential for cities to connect data, systems and people in ways that were not previously possible.

Interconnected Intelligent+ +

= SmartSmart

Building a smarter city

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Each core system can be made ‘smarter’ through instrumentation, generating more and better quality data for cities than ever before

System Elements Instrumentation

City Services Public service management

Local government administration

Citizens Health and education

Public safety

Government services

Business Business environment

Administrative burdens

Transport Cars, roads

Public transport

Airports, seaports

Communication Broadband, wireless

Phones, computers

Water Sanitation

Freshwater supplies

Seawater

Energy Oil, gas

Renewable

Nuclear

Creation of local authority management information system

Patient diagnostic and screening devices

Data gathering about use of online business services

Measuring traffic flows and toll use

Data gathering via mobile phones

Gather data for water quality monitoring

Fit sensors to gather data on usage across the energy system

Building a smarter city

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Each core system can be made ‘smarter’ through interconnection, connecting people, data and systems in ways not previously possible

System Elements Instrumentation Interconnection

City Services Public service management

Local government administration

Citizens Health and education

Public safety

Government services

Business Business environment

Administrative burdens

Transport Cars, roads

Public transport

Airports, seaports

Communication Broadband, wireless

Phones, computers

Water Sanitation

Freshwater supplies

Seawater

Energy Oil, gas

Renewable

Nuclear

Creation of local authority management information system

Interconnected service delivery

Patient diagnostic and screening devices

Interconnect records for doctors, hospitals, and other health providers

Data gathering about use of online business services

Interconnect stakeholders across city’s business systems

Measuring traffic flows and toll use

Integrated traffic, weather, and traveller information services

Data gathering via mobile phones

Interconnect mobile phones, fixed line, broadband

Gather data for water quality monitoring

Interconnect businesses, ports, energy users of water

Fit sensors to gather data on usage across the energy system

Interconnect appliances & devices between energy consumers and providers

Building a smarter city

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Each core system can be made ‘smarter’ through intelligence, giving cities unprecedented prediction powers

System Elements Instrumentation Interconnection Intelligence

City Services Public service management

Local government administration

Citizens Health and education

Public safety

Government services

Business Business environment

Administrative burdens

Transport Cars, roads

Public transport

Airports, seaports

Communication Broadband, wireless

Phones, computers

Water Sanitation

Freshwater supplies

Seawater

Energy Oil, gas

Renewable

Nuclear

Creation of local authority management information system

Interconnected service delivery

Immediate and joint-up service provision

Patient diagnostic and screening devices

Interconnect records for doctors, hospitals, and other health providers

Patient-driven pre-emptive care

Data gathering about use of online business services

Interconnect stakeholders across city’s business systems

Customized service delivery for businesses

Measuring traffic flows and toll use

Integrated traffic, weather, and traveller information services

Real-time road pricing

Data gathering via mobile phones

Interconnect mobile phones, fixed line, broadband

Information for consumers on city services in real time, on their own time

Gather data for water quality monitoring

Interconnect businesses, ports, energy users of water

Real-time quality, flood, and drought control

Fit sensors to gather data on usage across the energy system

Interconnect appliances & devices between energy consumers and providers

Optimise the use of the system and balance use across time

Building a smarter city

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Level 1

Single Mode

Level 2

Coordinated

Modes

Level 3

Partially Integrated

Level 4

Multimodal Integration

Level 5

Multimodal Optimized

Governance-Strategic planning

-Performance management

-Demand management

Single mode planning with little coordination between various transport providers.

A transport vision is articulated. Single overarching regulator but with limited planning and management powers.

Integrated multimodal transport authority. Coordinated demand management measures

Integrated corridor-based multimodal planning. Dynamic demand management schemes

Integrated regional multimodal planning. Continuous system-wide performance measures with dynamic pricing

Transport Network Optimization-Data collection, integration & analysis

-Network operational responsiveness

-Incident management

Limited data collection and integration. Ad-hoc analysis and incident response. Manual incident response by individual modes.

Data collection for major routes. Periodic data collection and analysis. Network and incident response mostly by individual modes.

Real-time collection of multiple data source with high-level analysis Automated network and incident response systems.

Real-time multi-modal coverage for most corridors. Detailed real-time data analysis. Automated pre-planned multimodal incident response.

System-wide real-time multi-modal data collection, integration and analysis. Dynamic network optimization and incident response.

Integrated Transport Services-Customer management

-Payment systems

-Traveller information

Minimal; mostly cash collection. Limited and static traveller information.

Customer accounts by mode. Mostly cash collection. Static trip planning with limited real time alerts.

Electronic payments. Multi-channel trip planning and account-based alert subscription.

Multimodal integrated transport card. On journey, multi-modal information services.

Single customer transport account. Location-based multi-modal pro-active trip advisory.

In sum, cities need to transform their (transportation) systems from discrete modes to optimized, integrated modes

Multimodal Network Management Maturity Model summary version 1.0 © Copyright IBM Corporation 2009

The IBM Intelligent Transport maturity model (summary version)

Building a smarter city

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Moving from left to right on the maturity model can bring a range of benefits across each of these areas

Traditional benefits

Congestion reduction

Modal shift

Shorter commutes

Reduced operating costs

Intelligent transport benefits

New sources of revenue

Better environment

Greater alignment among the transport stakeholders

Customer satisfaction

Improved economic competitiveness

Tokyo “aims to increase the average transport speed from 18km/h to 25km/h”, something that

will “contribute to gaining international competitiveness for the city”.

From traditional approaches To new intelligent transport approaches

The scale of reduction in London’s transport emissions envisaged by its 2025 strategy would be unprecedented across the world’s capital cities and would put London at the forefront of action to address climate change

Building a smarter city

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With limited resources, cities must set clear priorities when embarking on the journey toward becoming a ‘smarter city’

19

on

1. Develop long-term strategy

2. Prioritize high value projects

3. Integrate across

systems

4. Optimize services and operations

5. Discover opportunities

for growth and optimization

on

1. Develop long-term strategy

2. Prioritize high value projects

3. Integrate across

systems

4. Optimize services and operations

5. Discover opportunities

for growth and optimization

Guiding principles: Assemble the team

Think revolution, not evolution

Target all, not just one

Building a smarter city