Smart Cities webinar (2016)

1. Machina Research Best practices from 22 smart cities Jeremy Green (Machina Research) and Marc Jadoul (Nokia) November 2016 http://nokia.ly/smartcitywebinar

2. Agenda • About the research • Key findings • Three routes to a mature smart city • The data table 2 Machina Research

3. 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. 3 Machina Research

4. 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 4 Machina Research

5. 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 5 Machina Research

6. 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 6 Machina Research

7. 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 7 Machina Research

8. A mature smart city A 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. Municipality Open data portal Applications Smart City Infrastructure Citizens Businesses NGOs 8 Machina Research

9. Three routes: Anchor, Platform, Beta Anchor 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. 9 Machina Research

10. 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’s resources, 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 preparations for 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 or another. 10 Machina Research

11. 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 11 Machina Research

12. Applications: Smart, Safe, Sustainable Smart Living Smart Safety Smart Sustainability  IoT applications to reduce the environmental impact of the city’s own operations and those of businesses and citizens. who live there.  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.  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 12 Machina Research

13. The cities compared Download the report nokia.ly/smartcityplaybook smart safe sustainable 13 Machina Research

14. Our vision is to expand the human possibilities of the connected world We continue to reimagine how technology blends into our everyday lives, working for us, discreetly yet magically in the background… 14 © 2016 Nokia

15. 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 15 © 2016 Nokia

16. 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 16 © 2016 Nokia

17. 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 17 © 2016 Nokia

18. What are the building blocks? Nokia’s layered value proposition 18 © 2016 Nokia

19. 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 19 © 2016 Nokia

20. Thank you! Let’s collectively develop smart, safe and sustainable cities Learn more about Nokia Smart City at http://nokia.ly/smartcity Download the Smart City Playbook http://nokia.ly/smartcityplaybook Connect with us marc.jadoul@nokia.com jeremy.green@machinaresearch.com Machina Research 20 © 2016 Nokia