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60 minute lecture to Harvard GSD Exec. Edu Leading Organizations course. February 5th. Boston. MA. Trends in technology. Smart Cities. Impact on business, infrastructure, and real estate. What it takes to manage this change. Our role and participation in the journey of City transformation.
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Future of Smart Cities:How can organizations contribute to economically and environmentally sustainable cities?
Leading Organizations 2014
Dr. Rick HuijbregtsHarvard Faculty Club
5 February 2014
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
Purpose and backgroundHow can planners, developers, architects, city-builders (etc) play a constructive role and pursue economic opportunities in the shaping of our future cities that are experiencing the impact of the technology revolution.
• Video on Smart Barcelona: http://youtu.be/TCbvxb5t5_8
• Case study on Smart Songdo: http://www.rickhuijbregts.com/wp-content/uploads/2013/03/Songdo-v1.0.0.pdf
• Video on Smart Toronto: http://youtu.be/M3iR5h5aagw
• Internet of Everything for Public Sector (Smart + Connected Communities) in PDF: http://internetofeverything.cisco.com/sites/default/files/docs/en/ioe_public_sector_vas_white%20paper_121913final.pdf
• Internet of Everything for Private Sector in PDF: http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
Then…and now.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
Then…and now.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
Then…and now.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
Pace of Innovation Accelerating
Source: IBM’s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004
0
Cellular PC Internet Television Radio VCR Electricity Telephone Automobile
200 30 40 50 60 70 80 90 100 110 120 130 1400
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@CiscoSCRE #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
from 2010 to 2020, the digital universe will grow 50-fold
Source: IDC Digital Universe in 2020 Report
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
Exponential Growth In IP Traffic
Source: Cisco IBSG, Cisco VNI Global Forecast, 2011–2016
By the end of 2011, 20 typical households generated more internet traffic than the entire internet in 2008
By 2015, 1 Zettabyte of data will flow over the internet
1 Zettabyte: Stack of books from Earth to Pluto 20 Times (72 billion miles)
Every second, one Million minutes of video content will cross the global network in 2015
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Internet ofEverything
Digitize the World
Connecting:• People• Process• Data• Things
Intelligent Connections
ConnectivityDigitize Access to Information
• Email• Web
Browser• Search
ImmersiveExperiencesDigitize Interactions (Business & Social)
• Social• Mobility• Cloud• Video
NetworkedEconomy
Digitize Business Process
• E-commerce• Digital Supply
Chain• Collaboration
Business and
Societal Impact
The Evolution of the Internet
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
When we say “everything”, we mean “everything”
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
The Internet of Everything – “Industrialization of the Internet”
50
2010 2015 2020
Billions (devices)
0
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30
20
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50Billion“Smart Objects”
25
12.5
7.26.8 7.6
Inflectionpoint
World PopulationSource: Cisco IBSG white paper “The Internet of Things”, April 2011.
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Value at Stake by Geography and Industry
Initial Top 6 Contributing Verticals
Manufacturing27%
Retail Trade11%
Information 9%
Finance / Insurance 9%
Healthcare (private sector only) 7%Education Service (private sector only) 6%
Value at Stake ~ $14.4T
Source: Cisco Internet Business Solutions Group, 2013
US32%
Canada3%
$400B
Europe30%
China12%
Japan5%
RoW18%
Public Sector ~ $4.8T
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
Cities are Already Run on Networked InformationConnecting and Monetization of Citizen Services
Cloud &ServicesCloud &Services
ResponsiveStore
Municipal Command& Control Center
SmartGrid Hospital
Optimization
CommsNetwork
Optimization
Home EnergyMgmnt
Traffic Flow
Optimization
FactoryOptimization
LogisticsOptimization
TrafficCameras
AutomatedCar SystemIntelligent Digital
Signage
ConnectedAmbulances
IntelligentMedicalDevices
INTELLIGENTCITY
INTELLIGENTHOSPITAL
INTELLIGENTHIGHWAY
INTELLIGENTFACTORY
Source: Intel
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
Connecting the unconnected…
Solve Environmental Challenges Thrive in Smart Communities
Focus on Improved Safety Achieve Energy Efficiency
… to change the way the world works, lives, plays, and learns
Live Enriched, Healthier Lives
Redefine Work Models
@CiscoSCRE #CiscoSmartTO
CitizensConnectivityHealth managementSmart home, Energy managementQuality of Life, ExperienceParticipation
Business and
Industry
Infrastructure
Government
WH
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Citizens
Business and
IndustryLocal player in global economyEconomic development, attractionBusiness growth and productivityCustomer experienceCollaboration and Innovation
Infrastructure
Government
WH
O B
EN
EFIT
S
Citizens
Business and
Industry
InfrastructureSafety and SecurityEnergy managementEfficiency and productivityCost reductionUrban mobility (congestion, transit)
Government
WH
O B
EN
EFIT
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Citizens
Business and
Industry
Infrastructure
GovernmentWorkforce productivityCost reductionDistributed delivery of gov’t servicesCitizen engagement, CollaborationCity planning and Development
WH
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EFIT
S
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Trends in the Infrastructure Industry
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1. IP is the Standard – Building systems become native IP
2. Convergence – One base building Network, systems share infrastructure
3. Real time data and control – Tenants demand ‘Ownership’
4. Power-over-Ethernet – transforming M&E, energy efficiency
5. Networked Energy management – convergence of Energy Services
6. Building Analytics – Cloud-based building performance
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
The Only Constant is Change
Business Implications
Growth & Productivity
Opportunities
User Experience &
Expectations
New BusinessModels
GlobalizationSecurity & Regulatory Compliance
New Breed of AppsMobility / Video Cloud Internet of Things Big Data & Analytics
Technology (r)evolution
The Role of IT
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
Amazing Things happen When You Connect the Unconnected
99% of the World is Still Not Connected
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
Global OpenStandards
Visionary Leadership
SmartRegulation
New Ecosystem
Public Private Partnerships
What Will it Take?Your role in creating a Smarter economy
Creation of a New Industry
@CiscoSCRE #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
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Be the Catalyst for Change
• Invest in Who CaresUniversities, Research Chairs, Governments, Start-ups and incubators
• Shape the eco-systemUnconventional partnerships that lead to revenue
• Public-Private PartnershipsNo-one can do it alone
• Be BoldCannibalize if necessary
• Encourage and participate in Collaborative Eco-systemsCapitalize on the Power of the Community
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
• Toronto• Songdo • Barcelona
• GREENFIELD
• 1M sq.ft “new” City
• IT part of City Planning
• Proponents and Critics
• New business models
• DEMONSTRATION
• Giga-neighborhood
• Testing and validation
• Trying to be a “blueprint”
• Partnerships
• FOUNDATION
• 2,000 acres revitalization
• Gigabit broadband
• Cost built into real estate
• Portal and “apps”
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