Best practices from 22 smart citiesJeremy Green (Machina Research) and Marc Jadoul (Nokia)

November 2016

http://nokia.ly/smartcitywebinar

Machina Research

Agenda

• About the research

• Key findings

• Three routes to a mature smart city

• The data table

2Machina Research

About the research

• Sponsored by Nokia to illustrate the experience and learnings from a number of cities at different stages on the smart city journey

• Carried out by Machina Research, a specialist analyst and consulting company focused on IoT

• Focused on those aspects of smart cities that are most closely aligned to the IoT.

• 22 cities of varying sizes, geographies and levels of progress in terms of ‘smartness’ so as to investigate the key parameters and lessons involved in becoming smart.

3Machina Research

The cities in the research

• Auckland

• Bangkok

• Barcelona

• Berlin

• Bogota

• Bristol

• Cape Town

• Cleveland

• Delhi

• Dubai

• Jeddah

• Mexico City

• New York City

• Paris

• Pune

• San Francisco

• São Paulo

• Shanghai

• Singapore

• Tokyo

• Vienna

• Wuxi

4Machina Research

Why cities need to become smart

• Demographic pressures

• Environmental pressures

• Fragility - vulnerability to ‘shocks’ and ‘stresses’

• Financial pressures and a need to ‘do more with less’

• Economic pressures - increased competition between cities within and across regions

5Machina Research

Technology and business enablers

• More and better connectivity options

• A new role for the public sector in driving, supporting and financing communications infrastructure.

• New tools and paradigms for ingesting, managing, storing and analyzing data, including cloud architectures and machine learning

• Open data models in the public sector

• The Living Labs paradigm for research and development

• Smartphones as a near-ubiquitous sensing and user interface device

• Platform-as-a-Service (PaaS) and Software-as-a-service (SaaS)

• Open source software and open APIs as a counter to proprietary lock-in

• New financing and funding paradigms, especially Public-Private Partnerships (PPP) and vendor financing

6Machina Research

Key messages

1. Data matters. So does sharing it, on the right terms. Cities need to put in place rules, to make sure that they get the most benefit from data assets.

2. Coordination of smart initiatives across different departments doesn’t just happen. Getting it right requires forethought and leadership.

3. Ultimately it’s the citizens that are paying for the smart city. Vendors and city authorities need to engage them make the benefits visible.

4. Procurement departments need to be better educated. This will enable them to evaluate bids more effectively and allow for new kinds of relationship

5. The best project structures enable cities to work closely with ICT vendors without getting locked into proprietary ecosystems

6. Smart city solutions can help to revive declining cities or districts, and this can build support and mobilize resources for projects

7Machina Research

A mature smart city

8

Open data portal

Applications

Smart City Infrastructure

Businesses

NGOs

Citizens

MunicipalityA mature smart city enables individual citizens, businesses, NGOs and the municipality itself (including its business processes and its IT systems, and sensors attached to its physical assets) to:• Contribute data• Extract data• Create and make use of

applications (including automated controls) based on that data.

Machina Research

Three routes: Anchor, Platform, BetaAnchor City Platform City Beta City

• Adds working applications in series

• A clear and pressing need for one application

• Others are added as priorities dictate

• Focuses on deploying infrastructure first

• Several applications can be delivered later

• Experiments with multiple

applications without a

finalised plan for how to

bring pilots to full

deployment

• Accepts that currently

available technologies and

business models are

provisional

• Prioritises hands-on

experience over short-

term/medium-term tangible

benefits.

9Machina Research

No single path to smartness for cities

• We do not believe that one of these three routes is the ‘right’ answer.

o Each has something to recommend it, and which one fits best will depend on the city’sresources, issues, and priorities.

o A ‘beta’ approach may deliver more visible ‘easy wins’ quickly.

o An ‘anchor’ approach might be absolutely determined by a single issue, such as preparationsfor earthquakes, which dwarfs all others.

• Few cities are pursuing an absolutely pure form of one of these routes.

o Most have something of more than one route;

o Either they are hedging their bets, or are in the process of shifting from one route to another.

o Several are at such an early stage that they have not yet settled down into one route oranother.

10Machina Research

Which route is best for your city?Anchor City Platform City Beta City

Short path to deployment Concrete gains and easy to

evaluate ROI Use case driven

Synergies between applications are possible

Smooth path to integration Future flexibility Can engage third parties via APIs

and open data Capabilities and performance “by

design”

Engagement with citizens and politicians

Access to funding for trials and research

Easy involvement of start-ups and small innovative companies

Opportunity to use many tools including consumer-grade internet applications (e.g. Twitter, WeChat)

Future integration can be hard Absence of synergies between

applications

Absence of mature standards can make specification and choice hard

Risk of lock-in Upfront investment without initial

RoI from applications

Hard to go beyond pilot and achieve operational deployment

Diffusion of focus

11Machina Research

Applications: Smart, Safe, SustainableSmart Living Smart Safety Smart Sustainability

IoT applications to improve the

quality of life for citizens and

stimulate economic

development, making cities

more attractive places to live.

IoT applications to

prevent/minimize adverse

events including crime,

accidents, environmental

pollution and natural disasters.

IoT applications to reduce the

environmental impact of the

city’s own operations and those

of businesses and citizens. who

live there.

Connected signage

City applications to support

tourism and culture

Event notification

Public WiFi

Connected street furniture

Smart care/assisted living

CCTV and Smart CCTV

Incident detection Crowd

monitoring

Adaptive lighting

Environmental monitoring

Emergency alerts

Disease surveillance

Energy management

Transport

Smart parking

Traffic management

Bicycle sharing

Smart lighting

Public space water management

Waste management

12Machina Research

The cities compared

13

smart

safe

sustainable

Download the reportnokia.ly/smartcityplaybook

Machina Research

© 2016 Nokia14

Our vision is to expand

the human possibilities

of the connected worldWe continue to reimagine how technology blends into our everyday lives,

working for us, discreetly yet magically in the background…

© 2016 Nokia15

Why did Nokia commission this Smart Cities Playbook?

• Ubiquitous connectivity, IoT technologies, and smart services have become

focal points of the discussion and planning around smart cities

• Smarter infrastructure and applications only make a difference when they enrich

people’s lives; and respond to cities’ and citizens’ real needs

• Cut through the clutter, and understand cities’ real challenges and strategies

• Identify best practices, leading to a pragmatic set of recommendations

• Provide concrete guidance to city leaders and stakeholders, to make their

municipalities smarter, safer and greener

© 2016 Nokia16

What does it take to become a smart city?

• Advanced applications to ensure the

best use of urban assets and data to

create a smart, safe and sustainable

environment

• This requires shareable, secure and

scalable connectivity and platform

infrastructure that combines

everything from the network to the

devices, the applications, and the data

• An open ecosystem, standards-

based solutions and a continuous

dialog with/between city leaders,

stakeholders, and citizens

© 2016 Nokia17

Network and platform infrastructure can make or break a smart city

Shared• Wireless and wireline broadband access and IoT connectivity

• Applications and data over a single IP/optical network

• A ‘horizontal’ city platform, with a common set of capabilities

• Real time access to applications, anytime and everywhere

Secure• Endpoint and data protection

• Device management, authentication and authorization

• Traffic profiling and encryption

Scalable• Fast take-up of sensor devices and applications

• Massive growth in network traffic, data, and analytics

• Huge variety in applications and traffic profiles

• Critical applications need low latency and edge computing

© 2016 Nokia18

What are the building blocks? Nokia’s layered value proposition

© 2016 Nokia19

Nokia’s smart city engagement is built upon open collaboration

• We work with independent and recognized analysts to identify best practices,

and provide concrete guidance to city leaders and stakeholders

• We partner with 300 companies, members of our ng Connect ecosystem,

to bring innovative services to governments, citizens and businesses

• We participate to standardization initiatives to collectively define the best

technology and architectures to realize the smart city vision

• We deliver a shared, secure and scalable foundation to support smart city

applications, now and for the future

• We help create smart anchor, platform and beta cities around the world

© 2016 Nokia20

Thank you!

Let’s collectively develop smart, safe and sustainable cities

Connect with usmarc.jadoul@nokia.com jeremy.green@machinaresearch.com

Downloadthe Smart City Playbookhttp://nokia.ly/smartcityplaybook

Learn more about Nokia Smart City at http://nokia.ly/smartcity

Machina Research