1. © 2009 IBM Corporation Smarter Cities IBM Global Business Services

2. © 2009 IBM Corporation IBM Smarter Cities 2 A planet of cities In 2007, for the first time in history, the majority of the world’s population — 3.3 billion people — lived in cities. By 2050, city dwellers are expected to make up 70% of Earth’s total population, or 6.4 billion people.

3. © 2009 IBM Corporation IBM Smarter Cities 3 The city is a microcosm of the major challenges and opportunities facing the planet today—intensified and accelerated. Here, all man-made systems come together and interact with one another. CITY AGENDA CITY GOVERNANCE City Services People Businesses Water Communication Energy Transport City Operations Systems City User Systems City Infrastructure Systems

4. © 2009 IBM Corporation IBM Smarter Cities 4 44 Cities require smarter solutions  The systems are under increasing environmental, social and economic pressures  For sustainable prosperity, the systems need to be managed optimally  The systems need to become smarter! Not more…...but SMARTER!

5. © 2009 IBM Corporation IBM Smarter Cities 5 ‘Smart’ solutions are instrumented, interconnected and intelligent Instrumented Deep discovery, analysis and forecasting Event capture and filtering for timely response Any to any linkage of people, process, and systems InterconnectedIntelligent + + = Smart

6. © 2009 IBM Corporation IBM Smarter Cities 6 A Vision for Smarter Cities | April 20096 Real-time road pricing Real-time quality, flood and drought response Optimise the use of the system and balance use across time Customised service delivery for businesses Patient driven pre- emptive care Information for consumers on city services in real time, on their own time Integrated traffic, weather and traveller information services Interconnect businesses, ports, energy users of water Interconnect stakeholders across city’s business system Interconnect records for doctors, hospitals and other health providers Interconnect mobile phones, fixed line, broadband Measuring traffic flows and toll use Gather data for water quality monitoring Data gathering on use of specific online business services Data gathering via mobile phones Patient diagnostic and screening devices Interconnect appliances and devices between energy consumers and providers Fit sensors to gather data on usage across the energy system SystemElements InstrumentationInterconnectionIntelligence City services  Public service management  Local government administration People  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 Each core system can be made ‘smarter’ Establishment of local authority management information system Interconnected service delivery Immediate and joined-up service provision

7. © 2009 IBM Corporation IBM Smarter Cities 7 Cities have already started to focus on different aspects of smart solutions InstrumentedInterconnectedIntelligent + + Venice Using sensors to manage increased pollution and flow of 20m visitors Chicago Improving emergency management by installing new cameras, linking existing cameras Rotterdam Aims to use real-world, real- time information to manage the effects of climate change on the city’s water infrastructure and operations

8. © 2009 IBM Corporation IBM Smarter Cities 8 How smart is your city?

9. © 2009 IBM Corporation IBM Smarter Cities 9 1. Develop your city’s long-term strategy 5. Discover new opportunities for growth and optimization 2. Prioritize a few high-value projects 4. Optimize your services and operations 3. Integrate across your systems Smarter Cities Roadmap 9

10. © 2009 IBM Corporation IBM Smarter Cities 10 1. Develop your city’s long-term strategy 5. Discover new opportunities for growth and optimization 2. Prioritize a few high-value projects 4. Optimize your services and operations 3. Integrate across your systems Strategy Development requires understanding where you are today (challenges), and which improvements are needed 10

11. © 2009 IBM Corporation IBM Smarter Cities 11 Assessment should be guided by four key principles  Driven by city vision  Provide a holistic view of the city framework  Have comprehensive coverage of the transformation of each system  Benchmark against relevant peer cities Smarter city assessment = Holistic view of city framework + Driven by city vision + Appropriate benchmarks + Comprehensive coverage

12. © 2009 IBM Corporation IBM Smarter Cities 12 The city’s agenda needs to guide the assessment as it will determine priorities… The Sustainable Eco-City The Well Planned City The Healthy and Safe City The Cultural or Convention Hub The City of Innovation The City of Commerce Cities have different visions of what type of smarter city they wish to become. Measurement should be tailored to the agenda, rather than the agenda being tailored to the measurement.

13. © 2009 IBM Corporation IBM Smarter Cities 13 Weighted scoreboard methodology allows for tailored analysis  By means of weightings we indicate the relative importance of the various Smarter City systems and factors.  Based on specific city priorities, weightings can be modified, which will have a direct impact on the results. Example

14. © 2009 IBM Corporation IBM Smarter Cities 14 Provide a holistic and comprehensive assessment of each system – example variables Foundation Instrumented Intelligent Interconnected Governance Outcomes PrerequisitesManagementSmarter SystemsOutcomes City servicesLocal government expenditure Local government staff Coordinated service deliveryE-government Application and use of ICT for service delivery and management Efficiency and effectiveness of public service delivery PeopleInvestment in education, health, housing, public safety and social services Strategic planning and management for skills and health Application and use of ICT for education and health Education, health, housing, public safety and social outcomes BusinessAccess to finance, administrative burden, barriers to trade, business real estate Strategic planning and management for business (economic development strategy) ICT use by firms E-business Value added, business creation, innovation, job creation CommunicationInvestment in communication infrastructure Integrated strategic planning for communication system Coordinated regulation of communication system High-speed broadband, Wi-fiCommunication system quality and accessibility TransportInvestment in transport infrastructure and public transport. Quality of basic infrastructure. Integrated strategic planning and performance management for transport Use of RFID for traffic management. Use of congestion pricing (and type). Congestion levels; Accessibility within and to city; Energy intensity of transport system, CO2 emissions from transport WaterInvestment in water infrastructure; Investment in flood defences Integrated strategic planning and performance management for water Use of smart technologies for water management Water use; Water waste/loss; EnergyInvestment in energy infrastructure Integrated strategic planning and performance management of energy system Presence of smart grids; use of smart metering Energy waste/loss; Reliability of energy supply; Renewable energy; CO2 emissions

15. © 2009 IBM Corporation IBM Smarter Cities 15 WWW.IBM.COM15 Measure and compare the current state of cities on the different systems, separately and connected  The Smarter City Assessment Tool has been developed by IBM Global Location Strategies on the basis of proven location assessment methodologies for assessing business locations  The Tool ‘measures’ cities’ performance against many indicators for each of the Smarter City systems  It allows benchmarking of a city’s overall capabilities against peer locations, and best practice  The Tool identifies challenges that cities face and where improvements can be made Smarter City Assessment Tool

16. © 2009 IBM Corporation IBM Smarter Cities 16 Smarter City Assessment: Typical Work plan Kick-off −Project set up −Confirm smarter city vision and assessment objectives −Define peer cities −Explain approach and data required −Agree data delivery −Confirm timeline Data gathering  In house data gathering for client city and peer cities  Receive requested data from client city  Quality control and fine tuning as needed  Feed data into Tool  Define weightings in alignment with smarter city vision and objectives  Perform city scorings on system indicators based on raw data  Weighted analysis of scorings  Produce benchmarking results  Assess city’s position and improvement needs  Review draft results with client reps  Workshop preparation Analysis Workshop  Workshop with city −Review results −Identify and discuss improvement areas −Match with future vision and objectives −Initial recommendations −Identify priority actions Client Reps & IBM GLS 16

17. © 2009 IBM Corporation IBM Smarter Cities 17 Smarter Cities discussion17 Highlights and Outputs A systematic and informed approach to analysing a city’s performance against selected Smarter City systems. Tailors analysis to city vision and objectives. Delivers high-level analysis of a city’s strengths and weaknesses relative to peer cities. Leverages IBM-Global Location Strategies’ experience with global location assessments and direct access to a vast amount of relevant data on cities around the world. Focus on identifying high value strategic outcomes without lengthy and costly analysis

18. © 2009 IBM Corporation IBM Smarter Cities 18 Roel Spee Global Leader +32 2 416 59 28 Roel.Spee@be.ibm.com Global Location Strategies A service of IBM Global Business Services Web-site: www.ibm.com/gbs/pliwww.ibm.com/gbs/pli Contact details Jacob Dencik Manager Coordinator Smarter City Assessment Tool +32 2 718 40 16 Jacob.Dencik@be.ibm.com