aitec east africa ict conference (24 oct12)

© 2012 IBM Corporation

A Vision for Smarter Cities in Africa Seizing the opportunity now

AITEC East Africa ICT Summit October 24, 2012

© 2012 IBM Corporation2

It’s an exciting time for Smarter in Africa

The world is at an unprecedented level of urbanization

Cities contain an increasingly large share of the world's highly skilled, educated, creative and entrepreneurial population …

… and also can support large-scale networks that absorb and extend innovation

In Africa, the potential is palpable


There are many different visions of a “smarter city”

The Sustainable Eco-CityAn Accessible City The Healthy and Safe City

The Cultural-Convention Hub The City of Digital Innovation The City of Commerce


As focal points of economic activity, cities are strongly positioned to benefit from the new talent-intensive economic growth

Top cities act as economic activity hubs(size of the bubble – ratio of city share of national GDP to its share of national population, 2009)

Source: UN Habitat 2010, and IBM Global Center for Economics Development analysis

Bangalore

New Delhi

Beijing

Guangzhou

Shanghai

Johannesburg

Cape Town

SydneyMexico

Paris

Lisbon

Brussels

Seoul

-10

0

10

20

30

-5 5 15 25 35 45 55

City

sha

re o

f cou

ntry

pop

ulat

ion,

%

City share of country GDP, %


Links between talent and innovation in jointly driving economic vitality and growth are growing stronger

Source: KLEMS data base (2010) and IBM Global Center for Economics Development analysis

-25

-20

-15

-10

-5

0

5

10

15

20

25

1980s 1990s 2000s 2010s(f)

Traditional industries

Modern industries

Links between skills, knowledge, creativity and technological innovation contributions to growth

Annual average correlationC

orre

latio

n co

effic

ient

, res

cale

d x1

00


Youth bulge, consumer class and room to grow

Projected population 2020Source: UNSource: McKinsey Global Institute Cityscope 2.0

East Africa Population Structure

Burundi• Age: 45.8% (0-14), 51.7% (15-64)Kenya • Age: 42.5% (0-14); 54.8% (15-64)Rwanda• Age: 42.6% (0-14), 55% (15-64)

Tanzania• Age: 41.4% (0-14); 55.6% (15-64)Uganda• Age: 49.8% (0-14); 48.2% (15-64)

Source: CIA World Factbook


Attracting, retaining, developing and enabling talent and innovation can act as a powerful, long-term competitive advantage for cities

Cities, as focal points for economic growth and activity, are best positioned to benefit from the rising importance of talent and innovation

Cities are facing intensifying competition globally for talent and innovation as demand for higher quality and more diversified workers is increasing

Business and businesses go to where the talent is

Over the next 20 years, cities will need to attract, retain, create and enable the right and diverse mix of talents necessary for sustained growth by cultivating:

– a thriving academic and creative culture

– a critical mass of skills and learning

– business conduits through which knowledge and innovation flow across all these communities

Cities that possess the right mix of diverse talent will hold a powerful competitive advantage in the economy based on skills, knowledge, creativity and innovation

There is an urgent need for

cities to act

All cities need to grow their talent

base

Achieving competitive advantage


Our world is becoming

INSTRUMENTED

Our world is becoming

INTERCONNECTED

All things are becoming

INTELLIGENT


Source: 2012 CEO Study, IBM Institute for Business ValueQ1 “What are the most important external forces that will impact your organization over the next 3 to 5 years?”

External forces that will impact the organization

68%

69%

71%2004 2006 2008 2010 2012

Technology factorsTechnology factors

People skills

Market factors

Macro-economic factors

Regulatory concerns

Globalization

Socio-economic factors

Environmental issues

Geopolitical factors

For the first time, CEOs identify technology as the most significant force affecting their organizations


Source: IBM Institute for Business Value

Societal expectations are shifting with sociotechnical change

Source: Forrester Research


Water, Energy

Walls, Roads

Lifestyle, Culture

Jobs, Education

AccessSecurity ProsperityOpportunity

Leaders set conditions for serendipity and deliver …

People and their communities expect …

Time

People, and the communities they belong to (business, social, other), are expecting more

Progress

“Place”


Top 3 factors affecting organizations*(to a large extent over the next 5 years)

Public sector

Private sector

s

s

57%73%

54%62%

57%61%

57%73%

54%62%

57%61%

Information explosion

Talent shortages

Shorter time cycles

We all have the power to know

“We will go beyond … to systems that enable humanity to reach itsgreatest potential for human creativity, innovation and ingenuity.”

- IBM Global Technology Outlook 2010, Frontiers of IT

Source: 2010 CEO StudyIBM Institute for Business Value

Smarter transportation

Smarter energy grids

Smarter healthcare

Smarter food systems

Smarter regions

Smarter water management

Smarter countries

Smarter government services

Smarter cities

Smarter retailSmarter education

Smarter Public Safety


Top 3 factors affecting organizations*(to a large extent over the next 5 years)

Public sector

Private sector

s

s

57%73%

54%62%

57%61%

57%73%

54%62%

57%61%

Information explosion

Talent shortages

Shorter time cycles

We all have the power to know

“We will go beyond … to systems that enable humanity to reach itsgreatest potential for human creativity, innovation and ingenuity.”

- IBM Global Technology Outlook 2010, Frontiers of IT

Source: 2010 CEO StudyIBM Institute for Business Value


Here’s where it gets really interesting

Role of Information

“See”, “Discover”

Understand, learn

Define

Prioritize

Make choices

Act / catalyze action

Measure, evaluate

Tell the story

Role of ICTs

Low and high-level mediation within and among urban systems

Sensing urban system activity

Visualizing, analyzing, optimizing

Transparency among people, government, commerce

New forms of urban infrastructure

2-way interaction beyond portals


What is a Smarter City?

A city, district, metro area or urbanizing region …

… with communities of people and organizations / businesses that interact …

… using pervasive and integrated information from ICT-enabled urban systems to …

Address common issues …(examples)

… for shared outcomes(examples)

Competing effectively for more diversified and internationally mobile talent

An attractive place in which to live, work, play, and thrive

Assuring safety and security “Worry-free” mobilityExtending urban infrastructure Infrastructure capacity and longevity

Balancing today’s growth, tomorrow’s stewardship Sustainable developmentIncreasing efficiency while reducing costs Optimized city services and operations

Preserving culture while opening up A modern platform for African voices


InfrastructureHuman

Planning and Management

Governmentand AgencyAdministration

Environmental

Socialand Health

Transportation

Energy and Water

Education

Public Safety

Urban Planning

InfrastructureHuman



Environmental

Socialand Health

Transportation

Energy and Water

Education

Public Safety

Urban Planning

InfrastructureHuman



Environmental

Socialand Health

Transportation

Energy and Water

Education

Public Safety

Urban Planning

4.Anticipating problems to resolve them proactively and manage risk

3.Coordinating resources to operate efficiently and effectively

2. Integrating and leveraging information to make better

decisions

1.Engaging people to co-define / co- produce “what’s important” in context

Central / Federal

government

City government

Citizens

Businesses


Four core systems play a crucial role in attracting and expanding skills and innovation

EnableSuccessful cities ensure people make use of skills and abilities,

enabling innovation and investment in human capital

RetainCities that invest and enable human

capital must ensure increasingly mobile human capital stays

AttractCities that can attract mobile human capital and innovation

will gain competitive advantage

Create / DevelopCities need to invest in people and

their skills through education, training and learning opportunities

Source: IBM Global Center for Economic Development analysis


These core systems make up the enabling environment

Smarter transport improves the attractiveness of a city for highly skilled, diversified citizens and innovation intensive businesses

Improving education delivery and streamlining government services helps cities to support talent-focused growth and enable innovation

Better emergency response and lower crime helps cities to attract and retain skilled people and knowledge intensive businesses

Improving access to patient-centric healthcare boosts quality of care and the attractiveness of a city for creative and innovative workers


Define / Decide what the city’s Smarter brand should be and how it might be experienced

1

Adopt policies conducive to skills, creativity and knowledge- driven growth

2

Understand what you have today and use the information to engage communities and optimize services around them

3

Employ systems thinking in all aspects of planning, design, execution and management

4

Apply the fundamental enabling information technologies to core city systems

5

Leaders can take steps today …


… and chart a path of progress forward

INSTRUMENTED INTERCONNECTED INTELLIGENT

Access to relevant data

Integrated, trusted information

Stakeholder and context relevant operational insight

Proactive planning and decision making

Unified and interactive response and risk management

EXPANDING

EXTENDING

EMBEDDING

EVOLVING

EMERGING

Value

Maturity

Access to relevant data

Integrated, trusted information

Stakeholder and context relevant operational insight

Proactive planning and decision making

Unified and interactive response and risk management

EXPANDING

EXTENDING

EMBEDDING

EVOLVING

EMERGING

Value

Maturity


It’s an exciting time for Smarter in Africa

Projected population 2020Source: UNSource: McKinsey Global Institute Cityscope 2.0

East Africa Population Structure

Burundi• Age: 45.8% (0-14), 51.7% (15-64)Kenya • Age: 42.5% (0-14); 54.8% (15-64)Rwanda• Age: 42.6% (0-14), 55% (15-64)

Tanzania• Age: 41.4% (0-14); 55.6% (15-64)Uganda• Age: 49.8% (0-14); 48.2% (15-64)

Source: CIA World Factbook


Cities (and regions) in Africa have a profound opportunity to accelerate and sustain progress in their Smarter journey

As cities in rapidly developing economies continue to mature, talent becomes an increasingly valued resource, especially when combined with technological innovation

The core systems of a city – transport, government services and education, public safety and health – profoundly influence the quality of life and the attractiveness of a city

Smarter Cities continuously strive to create an enabling environment conducive to attracting, retaining, creating, developing and enabling talent and innovation

1. Define / Decide what your Smarter brand should be for your city and how it might be experienced

2. Adopt policies conducive to skills, creativity and knowledge-driven growth

3. Understand what your have today and use the information to optimize services

4. Employ systems thinking

5. Apply the enabling ICTs to core city systems

aitec east africa ict conference (24 oct12)

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