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This publication consists of the opinions of Gartner's research organization. Opinions expressed herein are subject to change without notice. Gartner research may include a discussion of related legal issues.
This publication consists of the opinions of Gartner's research organization. Opinions expressed herein are subject to change without notice. Gartner research may include a discussion of related legal issues.
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This publication consists of the opinions of Gartner's research organization. Opinions expressed herein are subject to change without notice. Gartner research may include a discussion of related legal issues.
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
Publication Date: 30 September 2010 ID Number: G00205838
2010 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and f unds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For f urther information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity" on its website, http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp Market Insight: 'Smarter Cities' Event in Shanghai Reveals IT Vendor Opportunities for Intelligent Urbanization Bettina Tratz-Ryan, Luis Anavitarte Vendors that pursue sustainability solution strategies have identified urbanization around the globe as a growing opportunity. Because of the diverse objectives and timelines of stakeholders such as utilities, public services, first responders, healthcare and education, vendors must build out consulting and system integration as well as technology and solution implementation and management capabilities. City planning in emerging markets is quite different from mature markets; therefore, the go-to-market approaches must provide an end-to-end planning process to accommodate value chains and business intelligence of all city subsystems. Key Findings Intelligent city planning often starts with the alignment of objectives of economic growth and development of the entire city, as well as the social impact and environmental sustainability. Each city has its own vision of where it will be at the end of the process, and those visions could vary quite significantly. Cities and their various subsystems have differing, wide-ranging and typically long-term planning horizons. This is in stark contrast to investment cycles for IT infrastructure in commercial organizations that run between five and 10 years. This requires a different go-to-market approach, as well as vendor commitment. The requirements of smart city subsystems can be segmented into operational or strategic goal orientations. The implementation of interactive water or energy meters reduces operating expenditures and maintenance costs. Congestion charging and context-based services, in conjunction with location-based services, could support return on investment. Exploiting the opportunities of intelligent cities will require consortia/partnerships of vendor ecosystems that consist of different skill sets, specialists (technology, services), generalists (business process and intelligence) and advisors (consulting and sustainable advisory services). Publication Date: 30 September 2010/ID Number: G00205838 Page 2 of 17 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
Recommendations Procurement Plan for the longevity of the planning cycles, as well as the sales support and innovation investments required for them. Align your IT message with the different buying centers, including the different agencies and sector leads for utility, public safety, healthcare and transportation. Position the benefit of IT and the interface to operational investment clearly, and target it at the different stakeholders in government and industry. Vendors need to take risk sharing into consideration, while building out the value of citywide organizational intelligence and predictive management of information. Vendors must consider hosting platforms for the stakeholders, or build out cloud-based delivery models for their customers. These services could be energy metering and management of the data points, or database information management for the public sector. Vendors must develop best-of-breed ecosystems in which the innovation for different strategies of the subsystems is fostered and advanced. Vendors must assess the strategic significance of evolving from a technology provider to establishing themselves as long-term solution brokers through partnerships.
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TABLE OF CONTENTS Analysis ....................................................................................................................................... 4 City Growth and Sustainable Stability ............................................................................... 4 Emerging Markets ............................................................................................................ 4 Mature and Developed Markets ....................................................................................... 5 Vendor Impact ................................................................................................................. 6 Microcosm and Subsystems ............................................................................................ 6 Transportation ..................................................................................................... 8 Energy and Water (Resources) ........................................................................... 8 Communications ................................................................................................. 9 Healthcare......................................................................................................... 10 Education .......................................................................................................... 10 Public Safety/E-Government.............................................................................. 10 Background and Context ............................................................................................................ 10 The Impact ................................................................................................................................. 13 Conclusion ................................................................................................................................. 13 Recommended Reading ............................................................................................................. 16
LIST OF FIGURES Figure 1. Sustainable Urbanization and Subsystems .................................................................... 7 Figure 2. Objectives of Sustainable Urbanization ........................................................................ 12 Figure 3. Vendor Domains for Sustainable Urban Planning Projects ........................................... 15
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ANALYSIS Although the concept of intelligent urban planning under the auspices of sustainability is not new, the context of the discussion on fundamental technology issues by vendors is new. In many geographies, cities face financial constraints in maintaining the grids for electricity and water, as well as roads and other infrastructure. In addition, by 2012, there will be 221 cities with more than 1 million citizens, of which 97% are located in emerging markets. IT vendors have discovered urban infrastructure and its microsystems as long-term growth markets. Also, technologies such as proliferating IP infrastructures and broadband mobile infrastructures enable a connectivity of the "Internet of Things," including machine-to-machine communications facilitated by radio frequency identification (RFID), global positioning systems and satellites. The interaction of location-aware applications on mobile devices with intelligent and reactive applications, such as traffic status, energy consumption or video communications, will empower citizens' quality of life and service experience. Service and utility providers will leverage information gathered by sensor networks and intelligent metering and measuring infrastructure to improve overall infrastructure reliability and predictability of outages while optimizing its performance and operational maintenance costs. New technology approaches present long-term opportunities for IT vendors to position their strategic direction toward sustainability. City Growth and Sustainable Stability The sustainable urban development initiatives vary quite substantially in scope, timeline and stakeholders responsible for the projects. Many of the programs focus on the development of the image and the brand of the city, not necessarily the improvement of its eco-environment and the social aspects. Especially in the developing countries, the strategies for economic growth and the attraction of investment and certain industries will also play a major role. Heavily industrialized cities in China, such as Nanjing, have started to launch a reimaging campaign, focusing on air and water pollution, and encouraging new industries to move from a manufacturing city to a service and IT industry. To improve the living conditions in the city, including education, less pollution and better leisure activities, the city council is planning to attract skilled knowledge workers and engineering and software programming companies. Eco-environmental considerations can include the protection of historic landmarks, improving healthcare or life expectancy of citizens, or stimulating tourism and convention business. For example, Venice, Italy is built on a fragile ecological location; that city is battling the rising sea level, which is flooding the city. The city is developing a tourist navigation application, in which the tourists can point with a special location-aware device to a building or historic landmark to gain the information for the site, as well as a recommendation of a tour route. With this application, the gathering of large crowds in one location could be avoided, guaranteeing a better sightseeing experience for the tourists, while protecting the narrow roads, bridges and buildings of the city. Emerging Markets In the emerging markets, economic growth and gross domestic product is developed mostly in the urban areas. In fact, urbanization as a process is highly accelerated in emerging markets this is not limited to emerging markets, but it is a fact of life globally. Therefore, many people move from rural areas into the cities to look for work and personal improvement. The sustainable construction of city building and roadway infrastructure, in conjunction with schools, economic zones and transportation, such as harbors, airports and railways, is extremely critical to avoid the development of slums and substandard living quarters. Many urban development programs in countries such as Brazil, Thailand, Bangladesh and India are targeted to manage the influx of rural citizens into the cities, taking a holistic approach to link social development with economic growth and business innovation and development. Because of an aggressive approach that is
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supported by the World Bank and the World Trade Organization in terms of guidance and lending, countries are developing in geographic pockets with capabilities for new IT and R&D innovation centers, as well as outsourcing facilities. Education is becoming a cornerstone for those capabilities, and skilled workers with low labor unit costs are attractive locations for companies manufacturing in high-labor cost countries. Recent urban development projects, such as Ho Chi Min City (Vietnam) and Manila (the Philippines) include the establishment of reliable electricity and water infrastructure. In many circumstances, both resources are not consistently available, and the quality of the delivery and the resource varies frequently. The output of the development of alternative resources, such as solar and wind turbines, are, in most cases, insufficient, so that especially in China and India the construction of power plants using nuclear power, coal and hydro is planned. Water desalination, together with water refarming and recycling of wastewater, increases the supply of water needed for the growing number of citizens. In parallel, for the power and the water grid, methods such as sensor networks and advanced meters are installed to improve the quality of the transmission and to identify resource performance losses and maintenance issues of the infrastructure. Traffic management such as that in Singapore, in conjunction with weather reporting and congestion management and charging, enable the predictability of public transportation and the ability to move traffic jams onto railways and buses, reducing air pollution. Vendors need to enable city planners and ecosystem participants to identify the milestones of sensible ROI for building out environmentally sustainable subsystem solutions. Using database intelligence and pattern-based information workflows, the predictable outcomes and scenarios to avoid service outages, improve service delivery and optimize the cost of maintenance of services will be enabled by IT services and technology vendors. Mature and Developed Markets In mature markets, such as Western Europe and the U.S., the urbanization efforts are driven by the efforts to reduce subsystem maintenance costs, such as those related to traffic, street lighting, public transportation and energy. Although this concept has been discussed during the past five years, much of the substance was initiated before the COP15 conference in December 2009, which stimulated EUROCITIES (a group of mayors of major European cities and the European Commission's Covenant of Mayors) to create the Digital Charter. The declaration establishes a baseline in which the Green Digital Charter commits cities to work together to deliver the EU climate objectives using digital technologies that increase energy efficiency, facilitate emissions reductions and forestall climate change (www.eurocities.eu). Many cities have developed brand and marketing initiatives that are used by mayors and city government to establish the road map for their sustainability framework and the timeline and process of implementation. The City of New York (www.planyc.com) has launched 127 initiatives, starting with solar zones, recycling, energy-efficient building codes (Greener Greater Buildings Plan), planting of new trees (MillionTreesNYC) and a comprehensive carbon emission and sustainability progress report, to track and manage the PlaNYC intelligent urban development plan. The City of Amsterdam has initiated a comprehensive city renewal that includes the energy efficiency improvement of existing and new buildings and street lighting, as well as the new harbor and a smart grid rollout. Stockholm, Sweden and Copenhagen, Denmark have done large projects to increase the amount of renewables, such as wind and solar, into the smart grid. They have also implemented comprehensive traffic and congestion charging systems for the downtown areas. In all those examples, the implementation of the urbanization plans are managed in the subsystems and governed by a steering committee or city planner who is supervising the timeline of the subsystem and its impact on the framework.
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Vendor Impact In emerging markets, urban developments frequently start in new suburbs or locations so that the developers can start "from scratch" cities in developed countries. This often requires a complex integration or upgrade into existing infrastructures or buildings. Sustainability and its significance are often a discussion that vendors need to raise with different political stakeholders, as well as with decision makers from social groups, religious leaders, lobbies and the military. Vendors put much effort into getting people to agree on the objectives and the definitions of the targets, as well as the timeline and priorities of the subsystems. Consulting and advisory capabilities with local expertise and recognition are needed to support the initial phase of scoping the program. In many circumstances, the deployment of infrastructure and the technology to monitor and manage it is led by an experienced system integrator that can navigate and organize construction firms, supply firms and IT companies. Some vendors establish pilot projects to showcase in the emerging markets the impact in terms of cost savings or ROI for the systems and solutions. Microcosm and Subsystems Figure 1 provides an overview of a city program and its subsystems, as well as a selection of initiatives. In many cases, those subsystems are the essential elements of the programs.
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Figure 1. Sustainable Urbanization and Subsystems
Source: Gartner (September 2010)
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Transportation In the transportation subsegment, cities are planning around roadways, public transportation, railways, harbors and airports, as well as traffic control and traffic management. Planning and technology solutions entail the reduction or streamlining of traffic away from congested areas to reduce pollution and carbon dioxide emissions. With this, they are improving the inner-city atmosphere and commuting times. In addition, congestion charging and parking routes enable cities to develop business models in which the investment of intelligent transportation solutions result in some ROI. The build out of intelligent harbor water management, including harbor accessibility and work safety, and flood and drought management is also a solid base for increasing commercial activities and economic gain for a city. Information about water levels, water pressure on pumping stations and harbor traffic can be linked via IT business intelligence to remotely manage the water levels of fresh water and sewage during rain, avoiding water outages and water main breaks. IT vendors can directly impact the water company's ability to manage its water grid assets. For example: The Netherlands railway operator aligned its railway schedules with about 56,000 variables, such as track availability, train routes, and signals between the commercial and passenger trains for 5,000 trains. Over a year, the railway saved about C20 million in operational costs. Queensland Motorways in Australia implemented a vehicle toll system to manage the increasing traffic congestion. It consolidated the information platforms of customer data, traffic flows and context-aware passenger information to streamline traffic flows and divert vehicle congestion, as well as to offer personalized services and real-time traffic alerts. In Singapore, the traffic authority implemented a smart card system to enable congestion charging, which can also be used to pay for public transportation. In addition, the city invested in a business intelligence tool to align bus routing for on-time arrival prediction. Furthermore, via location-based services and pedestrian navigation, services such as walkways with the most shade or underground walking passageways are determined by the daily weather situation. Energy and Water (Resources) Energy and water supplies, in many older cities, are not sufficiently available to accommodate the requirements of their citizens and economic growth. The build-out of interactive energy transportation and distribution networks into the smart (energy) grid is already a large consideration in many regions and cities, or it is in the initial deployment stage through the advanced metering infrastructure. Many cities are running projects to investigate the requirements for electric vehicle charging. The challenge for existing cities such as Amsterdam is to deploy the metering devices in existing homes, while retrofitting the distribution network and building out the support communications infrastructure. Most water networks are more than 50 years old, with many pumping stations and pressure levels working inefficiently and frequent leaks occurring in the water mains. Holistic planning or water grid maintenance and water meter deployment will decrease the number of water outages while improving customer service. Alternative energy and water resources, such as wind farms, solar power, and water refarming and desalination, are options to use resources more conscientiously while improving independence from the conventional resource supply. In emerging economies, cities must upgrade and enhance the energy and water networks, while expanding them to guarantee that supply meets the demand generated by an increasing population. For example:
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Amsterdam The city is planning to invest C1 billion on a smart grid rollout. The initial pilot involves 500 homes where household appliances will be connected to the energy grid. The Dutch utility Nuon will develop the applications for the energy management system. Funding and loans will be provided to enable more than 700 homes to install everything from energy-efficient light bulbs to ultra-efficient roof insulation. Helsinki (Finland) Through energy efficiency and intelligent building and design around energy efficiency, by 2030 the city wants to reduce its carbon presence per citizen by 39%. Nice (France) The city is planning to take a comprehensive approach to develop an interactive energy management approach that can identify supply and demand variations and integrate renewable energy sources into the smart grid. Washington, D.C. Washington's District of Columbia Water and Sewer Authority is upgrading its water management system, which includes water distribution, water meter readings, hydrants and valves, and pumping stations. This will enable predictive water network management with reduction of outages and more-accurate meter readings. Communications Communications broadband networks, whether fixed or mobile, are key for the deployment of interactive sensor information to build portals to communicate and provide public services, or to transmit video surveillance and data files to integrated systems. Many cities and utility providers will start to build their own communications networks to connect applications and provide context- aware interactive services to customers and operators. In addition, communications service providers such as Deutsche Telekom, Telefonica and Vodafone are trying to provide information platforms on which customers (here, citizens) can make choices with respect to energy and water supply, as well as service and usage information. Due to their increasing expertise in analytical data mining of customer behavior in their networks, communications service providers have the opportunity to provide insight into customer behavior and direct more energy- and water-efficient consumption of resources through applications that visualize those consumption trends. Integrated access devices located at the customer premises enable the management of home or enterprise technologies and appliances, as well as the ability to gain greater insight into service opportunities such as private security, e-healthcare or telelearning. In emerging markets, many cities adopt a broadband networking policy that aligns with a countrywide or regional wireless access policy to stimulate e-commerce, healthcare and telelearning. For example: Much of the opportunity would reside in RFID tagging or machine-to-machine communication, including the tagging of livestock and groceries, as well as goods to be transported or warehoused. This is especially important in Asian markets such as Malaysia, Singapore and the Philippines, where RFID tagging of agriculture is done to track livestock and prevent diseases such as avian flu, mad cow disease and foot-and- mouth disease. CenterPoint Energy in the U.S. has started to deploy WiMax-based MDS Mercury to link backhaul systems to advanced meters to collect information on a frequent and consistent level. Australia's recent federal election identified the build-out of a National Broadband Network as one of the key differences between parties; it was ultimately one of the deciding factors in the final outcome. That plan incorporates a fiber-based A$40 billion rollout, plus a national building scheme.
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Healthcare Healthcare models in a smarter city context are based on the principles of equal access to healthcare, as well as on the cost reduction in providing quality of care. The cost of providing healthcare often does not correlate to the volume or the quality of the healthcare services. Electronic records and digital hospitals that are integrating medical information together with patient records and other information onto one platform form a 360-degree patient view, as are telemedicine approaches and strategies of healthcare providers. Although the strategy of those are focused on improved quality of delivery of services and cost containment, cities often look at healthcare as a social right and requirement that is frequently connected into countrywide healthcare reform. Part of the healthcare offering resides in the emergency care environment, which also can be linked to traffic routing and navigation of ambulances for quicker time to the emergency room. Telemedicine in home care and nursing is a component of an improved methodology to deliver healthcare. However, the ability to base the delivery of those platforms on broadband carrier- grade network infrastructure requires tight integration between communications and healthcare goals. The vertical strategies are interesting because they enable platform and business intelligence leveraging within the network, as well as alignment among the different sectors onto the overarching urban strategies. Education Especially in emerging markets, equal access to education through a tightly defined public policy has proved to reduce the illiteracy rate, especially among women. Although a broadband architecture will enable telepresence and video for universities and K-12 schools, it also enables ad hoc learning capabilities based on special events through public portals. It also fosters, through collaboration platforms and a shared-desktop environment, the interaction between research development centers, universities and third-party institutes. The City of Nanjing in China is building a relationship between public and private research bodies to attract innovation into its location to grow the opportunity of the technology sector. Also, it enables the building of an educated workforce that will attract companies to invest there for economic prosperity. Public Safety/E-Government As part of their public safety policies, many major cities invest in coordinated database management and video surveillance, especially after the events of Sept. 11. In addition to safety, crime reduction and preventive event management, it also tackles inefficiencies for providing services such as e-filing and licensing not only at municipal buildings but also via mobile kiosks. The lack of digitization has many municipal processes at a very inefficient level, with many paper trails and duplications of workflows. As an example, New York City has implemented a Real Time Crime Center in which the New York Police Department is consolidating files from 120 million criminal complaints, 30 billion public records and video surveillance images to bring logic into the data displayed on a two-story-high image wall. According to New York City records, as of April 2009, the crime rate between 2001 and 2008 decreased by 27.47%. BACKGROUND AND CONTEXT Many vendors have identified performance efficiencies and new applications together with infrastructure upgrades for utilities, private and public sectors, and new market segments and opportunities. Intelligent urbanization presents a branding and marketing opportunity for vendors by educating city officials and the individual subsystem segments about holistic environmental planning. IBM is organizing conferences on smart cities the last one in June 2010 was held in Shanghai as part of its ongoing activities to bring together about 800 delegates from governments
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city representatives, IT suppliers and IBM experts. The goal of the conference was to discuss the challenges and opportunities of establishing sustainable urban development plans. For IBM, the addressable market on its Smarter City positioning consists of IT consulting and business service integration, as well as technology, hardware and software expertise. Smarter City consists of different subsystems, such as communications and IT infrastructure, water and electricity utilities, healthcare, education, and public safety. The World Trade Organization expects that, by the end of 2010, city dwellers will make up 70% of the earth's total population. Overall, the expectation is that at least 300 million people will migrate into cities every year, especially in China, where the government has established specific population migration programs as one of the initiatives to stimulate economic development. In emerging markets, such as India, China and Brazil, urbanization planning is a means to sustainable living and working conditions, as well as driving industrialization of the cities, while avoiding the uncontrolled development of slums and unauthorized building construction. It was no coincidence that IBM chose Shanghai as the location for its Smarter City event. China stands for government-pushed development in urban development related to a strong boost of the economic growth, moving an annual 1% of its population from rural areas into the cities. The efforts to drive the sustainability theme through the World Expo (Expo 2010) theme "Better City, Better Life" made this city a perfect backdrop to discuss the opportunity of IT in the context of city development. In discussions about the maturity of smarter urbanization, the fact that 60% of all energy and carbon emissions are produced on average in urban settings left a significant testament that the focus on those locations can heavily drive the low-carbon economy (an economic model based on low consumption of fossil fuels to reduce greenhouse gas emissions). Technologies and solutions that will be used to deploy stages of sustainable urban planning have to contribute to the economical, social and environmental objectives of a city. Vendors and service providers therefore must acknowledge and support the different goals of the buying center that drive the objectives. Many of the key decision sectors, such as water and energy utilities and transportation companies, define their key performance metrics in terms of efficiency factors of service delivery and operational cost savings, while improving pollution levels, for instance. Especially in emerging markets, the impact of the economic sector (e.g., investments into research facilities), the validation of financial markets and of the business community and better-skilled knowledge workers will all play a major role in the prosperity of a city and its citizens (see Figure 2).
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Figure 2. Objectives of Sustainable Urbanization
Source: Gartner (September 2010)
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THE IMPACT For vendors and service providers, intelligent urbanization planning provides a long-term opportunity to position their technologies, applications and services, as well as their ability to drive significant innovations in ecosystems or industry partnerships. The barriers to entry in addressing the opportunities in emerging markets as well as in mature ones are quite high; most projects are led by different buying centers and time frames, and the objectives in the sectors are diverse. In addition, the meaning of prosperity to a city is different than the meaning for a city government, a networking engineer, the state-owned utility or a public services company. In many cases, vendors are initially exposed to a fact-finding mission for defining the long-term strategy of the city, with the respective constituents of the projects. Vendors with strong capabilities in consultative approaches and regional scale are most likely to lead those projects and the ecosystems in their implementation. The result is that smaller specialist companies will still be engaged in those projects that are led by a system integrator to manage the projects efficiently. Specifically, in emerging markets where cities grow faster than in mature markets, having the capability to run or manage an ecosystem, or having an ecosystem partner to maintain its position in such an engagement, is highly critical. For example, during the last investor conference in November 2009, IBM stated that it expects continuous growth in revenue to be derived from what it calls growth markets (industry would classify these as emerging markets), up from 19% in 2009. Following the trends in the economic catch-up of those countries, in conjunction with the technology affinity to build high-end infrastructure while leapfrogging generations of technology, IBM is positioning and educating government officials, mayors, city planners and the entire ecosystem of technology providers, services vendors, utilities, researchers, university deans, banks and venture capitalists about the drivers and the best practices to succeed in such an urban development. Siemens is responsible for the energy management of the largest megacities in China, which is reducing the cost of the electricity supply, but also stabilizing the reliability of the entire grid. Siemens SIS has done multiple consulting projects to advocate and advise the holistic sustainability strategy in urban city development for cities such as London and Munich. Cisco is working closely with the South Korean government to design a new city in Incheon; these vendors put a lot of marketing and positioning into those engagements with the different stakeholders to demonstrate the ROI and the payback of those holistic frameworks. CONCLUSION Vendors that are planning to market and deliver within the new urbanization opportunity must have specialists in their organizations, such as city planners or vertical experts and energy engineers, to guarantee the holistic view of the projects and their scenarios for economic, environmental and social benefits. Vendors also must be able to analyze policies and government, state, and World Bank incentives, but also public services engagements and their impact on the development of projects. This also includes the ability to deliver pilot projects and risk-sharing models. One way to assess risk is to enable new service models in which the city is offered an outsourcing opportunity for management of systems and services. The creation of a newly hosted or cloud-based application environment is important to assist in the brokering of business models, such as in new energy markets conjoined with transportation services such as context-based services or traffic congestion management for electrical vehicles. Because of the comprehensive sectors and business drivers for the different opportunities in the city, it is complicated for specialized IT vendors without a sustainability portfolio, such as alternative energy, water pumps, metering infrastructure and so forth, to achieve the success in
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the urban development market. One fact is clear: Not one vendor can close such a heterogeneous city project by itself; at a minimum, there will be IT vendors with infrastructure solutions; vendors for business intelligence and data management; vendors to build facilities such as roads, bridges, and buildings; and service programmers and system integrators or managed service companies. Few companies have started to discuss sustainable urban development and smart cities as a market opportunity with all its subsegments. Certainly, Cisco, HP, IBM, Living PlanIT, Logica and Siemens are creating market awareness and mind share by building out their brand to be recognized as early innovators in the market. Although these companies have different approaches, the market will tell what will be the most-viable business model and go-to- market strategy. This also will depend on how well the vendor, and its ecosystem, can serve the operational and long-term objectives of the city. The short-term benefit for those vendors is certainly the sale of their technology and solutions to the subsystems of the urban development project, whether it is a networking solution, a cloud infrastructure, or a business intelligence platform. Vendors need to find the right balance between the long-term relationship in those partnerships, with recurring follow-up sales and additional value-added services, and short-term revenue streams. Figure 3 summarizes the vendor mix in smart city development.
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Figure 3. Vendor Domains for Sustainable Urban Planning Projects
Source: Gartner (September 2010)
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RECOMMENDED READING "Dataquest Insight: Strategic Options for Positioning Green IT in 2010" "Dataquest Insight: IT Providers Must Build Sustainability Into The Core of Their Strategy" "Dataquest Insight: How Vendors and IT Service Providers Need to Position 'Green' Initiatives" "Emerging Market Analysis: Developing a Solid 2011 Market Growth Strategy in Emerging Regions" "Building Efficiency Is Key to NYC's Sustainability Effort" "SmarterCities Conference in Berlin: A 'Stimulus' to Action" "Smarter Buildings Come of Age: IBM Partners With Johnson Controls To Deliver Vertically Integrated Facilities Management" "Intelligent Buildings: A New Generation of Construction" "Hype Cycle for Smart Grid Technologies, 2010" "Hype Cycle for Sustainability and Green IT, 2010" "The Utility of the Future: The Information Utility" "Key Issues for Healthcare Delivery Organizations and Government E-Health Programs, 2010" "Predicts 2010: Information Management, Governance and Security Issues Will Challenge Governments" "The City and County of Honolulu: IT as an enabler, not a regulator" "Case Study: Western Australia Police; Collaborating With the Business to Ensure Continuous Improvement" This research is part of a set of related research pieces. See "Sustainability for Growth: A Supply Chain and IT Transformation" for an overview. This document is published in the following Market Insights: Carrier Network Infrastructure Worldwide Carrier Operations & Strategies Worldwide Managed and Professional Network Services Worldwide Security Solutions Worldwide
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