6 Gordon Falconer Presentation

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Cisco IBSG 2011 Cisco and/or its affiliates.All rights reserved.

Internet Business Solutions Group

Gordon Falconer AAPI MRICS

Director, Urban Innovation,Internet Business Solutions Group (IBSG)

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Smart City Developments;

Overview & Observations

June 2012


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Cisco IBSG 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group

Many smart city projects & much activity

March2011

June

2012


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Design led Business led

Government led

Private sector led

Foreign direct investment led

Local real estate demand led

Educational / knowledge sector led

Aspirational / Vision led

Government developed

Privately developed

Government / Private development

Smart City projects have many approaches

Smart Cities areoften highly

aspirational andfuturistic


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Some Bottom Up

Some Top Down

Smaller scale to Greenfield

Often precinct developments

Often more government involvement / driven

Often driven by urban regeneration opportunities as catalyst

Single focus areas often common (e.g. transport initiatives etc)

Brownfield smart city projects & approaches


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Complex policy, regulatory, financialand organizational environment

Detailed value case for technologydriven smart cities not clear to leaders

Role of technology in smart cities not

clearinsertion points & musthaves

Lack of public sector funding placesover reliance on private sector to fundpublic infrastructure

Challenging to existing status quo

Lack of understanding across cities

Limited resources, skills & capabilities

Brownfield smart city issues

Sporting events oftenused as starting point for

new city Brownfield

urban redevelopments(e.g. Qatar, Brazil,London Olympics)



Multiple city stakeholders adds complexity

Policy Regulators Developers Owners Operators

Stakeholders ultimately determine the shape of cities and how they will evolve and at what

speed In many cities the above roles are often performed by the same or related entities which

changes the interdependences and dependencies (e.g. state controlled countries or cities)

Where and how smart ICT solutions / designs actually fits into the components of the cityneeds to be carefully examined / understood within each stakeholder role

Users / Public / Business

Where is the role of smart cities actually inserted within each stakeholder ?



Typical Greenfield development approaches

Feasibility &Strategy

Feasibility /Economic Impact

Master Plan -Conceptual

Master Plan -Detailed

Individual Design

Construction

Marketing / Sales /Operation

Smart cities are large inscale

Includes development ofutilities

Design / Vision led

Business Case led

Government led

Private sector led

Foreign direct investment

focus

Local real estate demandfocus Illustrative

SimplifiedDevelopment

Cycle


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Greenfield cities issues

City development is new, complex & technology role unclear

Lack of smart city experience by government and private sector

Design led or vision led too often

Technology / solution providers do not understand must haves

and like to haves and insertion points Developments with utilities & infrastructure adds complexity

especially with stakeholders with different business models

Fundamental real estate drivers often ignored

Asset ownership ( asset bundles ), funding, delivery andoperational models complex and impact design

Over reliance on PPP models and assumption that public sectorprojects will be funded by private sector



90,000 Total population

40,000 residents50,000 commuters

Masdar City Abu Dhabi ( Greenfield )



Masdar City Project Summary

Project Cost $16 Billion (2010)

Funding debt / equity

Zero Carbon / Zero Waste City

Living Lab for Cities & CleantechCluster

5.4 million m/2 - mixed use real estate residential, commercial, retail, hotels

Masdar Institute of Science andTechnology in partnership with MIT

Boston initial anchor


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Masdar City issues & lessons learned

Sustainability and technologyinnovation versus cost

Stakeholder alignment

Speed of development

Shared Vision

Master Plan complexity

Design integration complexity of realestate and utilities

Business models complexity

Fundamental real estate drivers Living Lab / Real estate / Cleantech or

FDI ?


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Chicago, Moscow & London


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Barcelona


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Amsterdam


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To help summarise our learningabout smart cities we need to reviewthe following questions :

Why leaders need to prioritise a

smart city (economic businesscase)

What the physical project and thetechnology

How - do you enable smart citypolicies and solutions to beimplemented in a city ?

So what have learned about smart cities ?

The how is the biggest

challenge facingsmart cities

The what is most

popular with product /solution vendors

The why is partially

understood and accepted

W d t d t d it f k


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We need to understand city frameworksto make the cities smarter

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1. City Objectives Social, Environmental, Economic

1. Utilities 2. Transport 3. Real Estate 4. City Services

4. Policy Best practice & policy examples

2. City Indicators

3. City Components

Policy Regulators Developers Owners Operators


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6 Gordon Falconer Presentation