Creating Value through Intelligent and Networked Lighting Infrastructures Cisco Philips Partnership: Smart Street Lighting Christoph Herzig, Philips Lighting James Crowther, Cisco IBSG MotM, San Francisco- October 2012

Global trends and relevance for cities Population rise & Urbanization New challenges are arising as our cities grow at an unprecedented speed. Surging demand for energy and resources There are rising concerns over price, availability and environmental impact. Cities want to establish identity Inter-city competition for people and business is on the rise. Growing connectivity There are huge new opportunities to improve urban life through intelligent, highly efficient solutions enabled by ICT. Slide intent: Provide overview of the realities affecting the outdoor market. Speaker notes: The interplay between nature, people and the human-made is complex and ever-changing. At the moment, we see these relationships guiding four major trends in the outdoor lighting market – offering new, exciting and ground-breaking changes: Urbanization New challenges are arising as cities grow at an unprecedented speed. Urban population growths with 200,000 people per day. The city has become a major strategic space. More than 3 billion people additionally will live in new build cities, extended or renovated urban areas by 2050. Surging demand for energy and resources There are rising concerns over price, availability and environmental impact. - Cities want to establish identity Inter-city competition for people and business is on the rise. - Increasing role of IT in all areas of society There are huge new opportunities to improve urban life through intelligent, highly efficient solutions enabled by IT. Increasing urgency and public pressure will drive acceleration of adoption of advanced city operation systems. These collective realizations remind us of just how closely we are connected to our surroundings and the things we create – economically, technically and socially. Although right now times are tough, we still view these challenges as opportunities − opportunities to work together, opportunities to improve the quality of people’s lives. A growing number of municipal authorities are embracing the benefits that innovative lighting has to offer in increasing comfort, safety and security, thus making districts more attractive, and enhancing the public’s sense of well-being. Not to mention its positive impact on environmental protection and city branding. 2

Our cooperation focuses on sustainable new joint solutions (business models and / or technologies) by combining the strength of Cisco in connectivity over the internet with Philips’ strength to improve people’s life with lighting. WIN for Cisco Lighting management is an important attribute that can be enabled over the internet, thereby enhancing the value of the network to many customers. WIN for Philips By providing lighting management solutions that can be managed over the internet we can provide our customers with attractive lighting solutions.

The potential of public lighting infrastructure Public lighting as a key application, providing safety, identity and facilitating traffic. It allows effective reduction of a city’s energy use Public lighting is an existing infrastructure offering opportunities for diverse and innovative public service applications ……

The Network as the Platform The “energy internet” will be a critical enabler for mass urban infrastructure innovation 1% 5% 2% 3% 4% 1997 2007 2005 2003 2001 1999 Productivity Business Phase 1 Consumer Phase 2 The Network as the Platform Collaboration Video Virtualization/ Data Center Industrial Phase 3 Internet of Things The Internet has undergone major phases of evolution. Phase 1 was about Business connectivity, Phase 2, it evolved to consumer – with the widespread proliferation of social networking such as Facebook and You Tube. But business and consumer connectivity are just the start of broader network of intelligent connectivity. The 3rd phase is what Cisco is calling the ‘Industrialisation’ of the Internet, we estimate that there being 1 trillion devices by 2013 so this phase is about connecting these devices over the network – the so-called ‘the Internet of Things’. What this means it that the network has become the new critical infrastructure (a sort of “4th utility”, after electricity, water and gas) which is not only transforming the delivery of public services (healthcare, education, safety&security, eGov) but also making ALL other urban infrastructures efficient. Grids become smart, real estate becomes energy efficient, transportation systems become intelligent, etc The pervasiveness of high quality Broadband is making this vision of the future a reality of today We’re not talking installing broadband to the home … so your citizens can access Google and YouTube We’re talking putting the network at the centre of how you plan your cities:’ healthcare, transportation, buildings, entertainment, etc. 2011 2013 2009

Creating value on public lighting user interaction MANAGEMENT SOFTWARE EMBEDDED ALGORITHMS LIGHTING DEVICES CONTEXT-DRIVEN ADAPTABILITY PRODUCT PERFORMANCE & DESIGN MONITORING AND CONTROL

Asset Bundling Source: Cisco IBSG, 2012

Overall Approach Vision Scope & Plan Economics User Cases Architectures Asset Bundling Partnership Models Execution Source: Cisco IBSG, 2012

Amsterdam Zuid-Oost (ArenA) Industry Highways Rural areas Entertainment Retail Residential Vision: Develop Amsterdam Metro as an open platform, using the availability of energy and connectivity to make the city a better place to life, work or travel Strategy: Using the AMA as a testbed for innovation, using light infrastructure as an enabler for Smart and Connected Light and create an open platform for SME’s and Corporates Operation: Strategic partnership of Alliander, Cisco, Philips, City of Amsterdam and Amsterdam Innovation Motor will gather the demand and come up with solutions Goals Improve Area: safety livability mobility/reachability Develop platform for services Incubate new services/products Use less energy Reduce maintenance

Amsterdam Zuid-Oost (ArenA) Value Case Candidate Long List Benefits Best efforts quantification 1. Reduced assaults, car theft, car burglary Visitors/Residents 2. Improved vehicle and pedestrian traffic management 3. Increased visitors, improved experience 4. Brand improvements associated with area improvements leading to increase Entertainment Owners Incremental Benefits 5. Public service advertising 6. Increased sales from digital signage, advanced advertising and visitor increases Overall business case Retail and other businesses 7. Reduced shrinkage 8. Reduced police time Incremental Costs (compared to 10 year Lighting as Usual 9. Provision of municipal data Municipality 10. Change in CO2e emissions 11. Job creation, GDP impact

Nurah

Amsterdam WesterGasFabriek Building a Living Lab Facilitating the user experience suppliers innovation Designing the user experience Nurah Enabling liveable cities Enabling smart infrastructures innovation

Building a bridge between partners, R&D and business A Living Lab Building a bridge between partners, R&D and business Flexible environment Westergasfabriek is the place in Amsterdam for a scalable Living-Lab demonstrating a developing range of urban transformation propositions. Allows to Build a “ready to grow” open environment (and infrastructure) enabling a process of iterative implementation. RELEVANT SOLUTIONS SCALABLE BUSINESS Improving quality of life, security and sustainability A living lab TESTING and developing new concepts to enhance urban sustainable lifestyles Complementing and enriching the physical environment of the Westergasfabriek and park Proven value propositions for ‘smart-city’ business differentiation UNDERSTANDING the value of propositions in relation to the public and businesses at the WGF SHOWCASING the combined expertise with relevant, innovative experiential solutions

Philips and Cisco collaborate to create value through intelligent and networked lighting infrastructures Cisco Smart + Connected Communities and IBSG Philips Outdoor Lighting Solutions Connected Energy Architectures Asset bundling Value case Go beyond TCO First market proof points in 2013 Amsterdam South East Westergasfabriek, Amsterdam