Smarter Cities: Business Value Assessment

© 2012 IBM Corporation

Smarter Cities Business Value Assessment (BVA)Introduction and Approach

IBM Industry Business Value Assessment Introduction and Approach



Water

Work order optimizationUsage AnalyticsPredictive MaintenanceLeak DetectionFlood ManagementSmart MeteringContamination MgmtWater SecurityStorm water MgmtWastewater MgmtAsset Management

Water

Work order optimizationUsage AnalyticsPredictive MaintenanceLeak DetectionFlood ManagementSmart MeteringContamination MgmtWater SecurityStorm water MgmtWastewater MgmtAsset Management

Transportation

Data IntegrationTraffic PredictionRoute optimizationBus Arrival PredictionPlanning and SimulationRoad User ChargingAsset ManagementIntegrated Fare MgmtMulti-modal MgmtRevenue ManagementFleet Optimization

Transportation

Data IntegrationTraffic PredictionRoute optimizationBus Arrival PredictionPlanning and SimulationRoad User ChargingAsset ManagementIntegrated Fare MgmtMulti-modal MgmtRevenue ManagementFleet Optimization

Public Safety

Video SurveillanceCrime InformationPredictive PolicingDispatchCyber SecurityFusion CentersBorder SecurityCommunicationsEmergency ResponseNon-Emergency Response

Public Safety

Video SurveillanceCrime InformationPredictive PolicingDispatchCyber SecurityFusion CentersBorder SecurityCommunicationsEmergency ResponseNon-Emergency Response

Buildings

Energy Consumption & Optimization Carbon ManagementGreenhouse Gas Emissions TrackingAsset & Work ManagementPortfolio ManagementFacility Maintenance Condition MonitoringOccupancy ManagementUtilization PlanningSpace Optimization Move Management

Buildings

Energy Consumption & Optimization Carbon ManagementGreenhouse Gas Emissions TrackingAsset & Work ManagementPortfolio ManagementFacility Maintenance Condition MonitoringOccupancy ManagementUtilization PlanningSpace Optimization Move Management

Revenue Collection

•System-level and GIS view of cross silo data sources•Overlay mapping of key data values for at-a-glance status•Access & correlation of internal and external data•Trending/historical data from city operations for planning•GIS tracking and closed loop audit through collection process•Improved auditor and investigator performance•Increase city revenues by 5% or greater.

Revenue Collection

•System-level and GIS view of cross silo data sources•Overlay mapping of key data values for at-a-glance status•Access & correlation of internal and external data•Trending/historical data from city operations for planning•GIS tracking and closed loop audit through collection process•Improved auditor and investigator performance•Increase city revenues by 5% or greater.

Revenue (Sources)Operations (Expenditures)

BVA quantifies benefits of “Smarter Cities” capabilities in two key areas



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Activities

• Articulate a Business Vision: Based on a client’s strategic vision, IBM’s industry expertise, and the business environment

• Identify Inefficiencies and Bottlenecks: Model current processes to estimate time and cost improvement opportunities

• Define Technology Requirements: Envision a technical solution that supports process improvement

• Describe the Business Value: Estimate reductions in cost and/or time in the envisioned "to-be" environment

Artifacts (examples)

• Capability gaps

• Process improvements

• Benefits framework and analysis

• Solution architecture

3. Current and Future-State Gap Analysis4. Future-State Design

2. Business Goals and Requirements

Industry Business

ValueAssessment

5. Business ImpactAnalysis and Actions

1. Current-State Analysis

BVA includes a business case, backed by business and technical analysis, to advance key business initiatives



Required Interdepartmental Touchpoints

Analysis of CurrentProcesses and Technology

Facilitated Workshop --Pains Within / Between

Departments

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Example BVA outputs

1 2 3

Benchmarks and TargetedFuture Capabilities

4Actionable Plan -- Immediate

and Long-TermQuantification of Value from

Future Capabilities5 6



BVA can be a brief “Point of View” (~1 week) or In-Depth (~4 weeks)

Validate / confirm executive alignment on engagement scope, approach, timeline, objectives and deliverables

Identify key business areas of focus and pain points where IBM can help unlock business value

Secure executive commitment

Executive Summary: Key findings, business pain challenges and issues, IBM recommendations, value drivers and business benefits

Detailed Findings: Benefit impacts and calculations, Benchmark assumptions, solution detail, future state alternatives, roadmap considerations

Designing Future-State Opportunities

Alignment& Scope

As-IsDiscovery and Confirmation

BVA Presentation

Understand / validate company / BU strategy and pain points through targeted interviews

Investigate As-Is process/work systems

Define time and cost metrics

Determine future capabilities to meet business objectives

Develop future state business and technical architectures (high level)

Calculate time and cost metrics

Develop Benefits Framework

Presentation of findings and business case

Recommendation of next steps

Perform cost analysis Recommendation of

technology solution(s)

Activities

Output

Step 1 Step 2 Step 3 Step 4



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Checklist -- Which type of BVA should you go for?

“Point of View” BVA In-Depth BVA

Minimum Level of Sponsorship Required

Department Heads Governor, Mayor, or City Manager

Key Inputs Committed Budget IBM Case Studies

Committed Budget Department Heads and/or Staff Finance

Decision Mode

“We’re learning about various solutions”

“We’re not sure where to begin yet”

“We know we want to work with IBM”

“We have a good idea as to which area we want to tackle”

Level of Depth Desired

Directionally correct Ball-park estimate

“Hard dollars” only Scrutinize workflows and detailed

operational data

Time Frames Low urgency Seeking awareness and buy-in first;

funding later

High urgency Decision to be made within 4-6

weeks Seeking funding



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The BVA Workshop is designed to meet specific priority business issues. Results will help to better understand current capability gaps and the value the IBM-based solution will provide.

The BVA brings together executives, business and IT stakeholders and subject matter experts to understand cross-functional issues and develop a benefits framework in a relatively short time.

Component Description Participation

Current State

Assessment

Conduct discovery sessions to understand and document current business capabilities. Interview IT and business areas to understand current challenges

Impacted business stakeholders

IT architects Data Architects

Visioning

Meet with business to understand needs and vision Document critical success factors Perform gap analysis

Key business executives IT executives and architects Business managers and

SMEs

SolutionCreation

Model shortcomings of existing workbench Determine the IBM enabling solution Document impact of enabling features (i.e., jumpstart

capabilities, acceleration components, quality enablement, etc.)

Develop high-level solution architecture Develop sequenced roadmap of key activities

Workshop Liaison Workshop Executive Sponsor IT and Data Architects

BenefitsAnalysis

Develop business case that identifies value and opportunity Apply relevant industry trends and best practices

Financial analyst Workshop Executive Sponsor Key business executives

Workshop components for In-Depth BVA



Deliverables: Future state business and technology, + roadmap

Current state Future state

Smarter Cities DirectionExecutive perspective on opportunities and challenges

Operations Immediate challenges Improvement

opportunitiesVision on longer horizon

TechnologyPlatforms, standards in

common useTechnologies to be

introduced / sunset

Business value (1)What is most important to the business?

Technology (2)How does the solution fit together? Architecture

Roadmap (3)What do we prioritize first?Business valueOptionsInfrastructural prerequisites



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Client

Engagement Sponsor

Marshalls resources for interviews Kicks off engagement Reviews status periodically Advises on findings Champions recommendations

Engagement Liaison

Full participant in workshops Coordinates meetings and resolves

scheduling conflicts Provides informal background on

participants, issues, circumstances Hub for follow-ups and outstanding

questions

Process Owners, Performers

Describe who and what should be done Explain how work is actually done, and

potential opportunities and roadblocks

IT Architects, Engineers

Depict the IT operating environment today Provide intelligence on architectural

strategy / artifacts / governance

IBM

Software Sales

Point-of-contact Lines up IBM resources Participates in workshops

BVA Business Consultant

Sets engagement methods Conducts interviews Prepares models and documents as

appropriate Leads development of

recommendations

IBM Executive Sponsor

Secure IBM resources Champion the results. Involved in kickoff and review plus

periodic status updates.

Solution Architect

Understands tech environment Prepares solution architecture and

participate in workshops

Technical Specialists

Software brand SMEs

BVA roles



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Please don’t hesitate to call if you have questions

Jeffery ToSmarter Cities Lead, Business Value [email protected]

Documents

Smarter Cities: Business Value Assessment