Not “Smart” But Efficient: Schneider Electric Helps Cities Achieve Realistic Goals

Jennifer Belissent, Ph.D.

My sister used to tell me that I wasn’t smart I was just organized.  I’m not here to argue (anymore) but I have never forgotten her claim. In fact, it’s true for more than just me.  It’s really what is at the heart of smart cities. It’s not about what you know but what you can do with it. The industry has been pushing “smart” on cities for a half a decade.  But the most successful stories about cities cutting their cost of operations and improving the lives of their citizens are about being better organized or more efficient. 

At the Schneider Electric Influencer Summit in Boston this week, Schneider execs and customers focused their smart city story on just that – getting more efficient. We all have heard the numbers: cities take up only 2% of the world’s surface but they consume 75% of the world’s energy and account for 80% of the world’s carbon emissions.  As the Schneider CMO cited, “If left unchecked, our appetite for energy will grow 50% by 2040.” And there is significant room for greater efficiency. The sweet spot for Schneider in this Next Age of Change is in helping cities control their public energy consumption.  While their vision  – and “marketecture stack”  – extends into water and other domains, they plan to establish their footprint with energy efficiency.  Phew! That’s a refreshing change from vendors who want to do it all.

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Singapore SMBs Get A Big Boost To Upgrade Mobile And Digital Platforms

Clement Teo

by Clement Teo with Ng Zhi Ying

The government of Singapore has released its 2014 budget, which includes S$500 million (US$400 million) to help drive economic changes at small and medium-size businesses (SMBs). This spending will focus on:

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Telefónica—Play To Consolidate Global Networks—Particularly Horizontally Across The Southern Hemisphere

Jennifer Belissent, Ph.D.

Co-authored by Henning Dransfeld and Jennifer Belissent

Telefónica recently invited us to its European Analyst Day at the headquarters of Telefonica UK (O2) in Slough. Jose Luis Gamo Global Solutions CEO Multinationals started off the day with an ambitious outlook on strategy and revenue growth. He highlighted Telefónica plans to deepen customer engagements by addressing their needs for global contract consolidation, as well as demands for M2M solutions, big data and analytics and cloud services. Telefónica certainly has a lot to offer. But is Telefónica doing enough to position itself well in the evolution to markets driven by customer experience? We believe that there is potential because:

  • Telefónica is increasingly competitive in winning global enterprise network contracts.After the global landmark deal with DPDHL, Telefónica has added companies including Ferrovial and NSN to its customer base. Telefónica, the largest European operator by capitalization, is increasing contract values with existing customers through cross selling activities. Their ability to do so is enabled by a demonstrable focus on the following initiatives: Strengthening professional account management, increased commitment by Telefónica group to the enterprise market, as well as initiatives to improve service management, the technical architecture, customer services and the terms and conditions.
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Smart City Santander: Proven Technology, Uncertain Business Models

Jennifer Belissent, Ph.D.

The city of Santander boasts 20,000 fixed and mobile sensors throughout the city – on buses, in parks, waste bins and in buildings.  These sensors capture bus locations, humidity in the air and soil, pollution etc. They tell bus riders when their bus will arrive; they tell city park workers when to water the gardens. They also dim lights when there is no one on the street at night, and turn them on when cars or pedestrians pass. They create a complex internet of things and a rich source of data. Together with the platform enabling the aggregation, analysis and visualization of these data, they (will) provide a valuable tool at the disposal of city leaders, enterprises, developers and citizens. Today Smart Santander is a living lab (with an application pending to be part of the European Network of Living Labs). 

Having launched in September 2010 with €6 million budget (primarily from the EU) and 15 partners, the project is now in its 3rd and final phase.  With its sensor network, the city demonstrates the benefits of the Internet of Things across several initiatives:

  • Urban mobility: Sensors on buses and in taxis make it easier for citizens and tourists to find transportation; parking sensors help drivers find available places more quickly.
  • Water management: Sensors embedded in urban gardens detect soil humidity and enable more efficient watering; the broader water initiative envisions smart water meters in homes and buildings, and use of the sensors by Aqualia, the city’s water company.
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Cities, Don't Go It Alone. Service Providers Accelerate Smart City Projects.

Jennifer Belissent, Ph.D.

Local governments – cities, counties, states – are investing in technology.  Why?  Well, a number of factors drive local governments to take a smarter approach to their administration and development: limited budgets, increasing citizen demands, competition for investment and jobs etc. Balancing competing demands on a shoestring budget isn't easy.  City leaders are looking for ways to sustainably transformation city functions such as transportation, healthcare, public safety, utilities, or governance, and in aggregate the city as a whole. And, they increasingly value technology as a means to such a transformation. 

Fortunately, cities do not have to undertake this journey on their own, and they don’t expect to.  In fact, according to Forrester’s Forrsights Budgets and Priorities Tracker Survey, local governments are more likely to expect increases in IT technical consulting than other industries (and more than governments as a whole): 38% of local government IT budget decision-makers expected a 5-10% increase in consulting spend and 2% expected an increase of more than 10%.  Local governments are turning to the experts to help them figure out what this “smart city” thing means for them.

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ORANGE BUSINESS SERVICES ANALYST EVENT 2013: THE COBBLER STICKS TO HIS LAST

Fred Giron

Brownlee Thomas, Ph.D., Dan Bieler, Henning Dransfeld, Ph.D., Bryan Wang, Clement Teo, Fred Giron, Michele Pelino, Ed Ferrara, Chris Sherman, Jennifer Belissent, Ph.D.

Orange Business Services (Orange) hosted its annual analyst event in Paris July 9th & 10th. Our main observations are:

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Orange Business Services' Smart City Picture Is Coming Into Focus

Jennifer Belissent, Ph.D.

The picture is slowly coming into focus, and it’s a good one. This time last year I scolded Orange Business Services for not presenting a comprehensive smart cities strategy – particularly after having announced smart cities as one of its strategic pillars for the year.  The announcement at their 2012 analyst event was not about a strategy; it was an announcement that they were going to create a strategy, and that they had appointed someone to do that. Well, Nathalie Leboucher has been in her role for 18 months now and progress has been made.  Orange has developed a portfolio of solutions – mostly based on pilots across France and in the Middle East – and has announced several key partnerships. Yet there is more to do to develop a comprehensive message demonstrating that Orange “gets it” with regard to cities and can leverage all its assets to help cities (and capitalize on the opportunity). 

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Government Innovation Is Not An Oxymoron

Jennifer Belissent, Ph.D.

 

Really, it is not. I was heartened to see that it doesn’t even make the oxymoron list, which does however include “government worker,” “congressional ethics,” and the rather hackneyed “military intelligence.” In fact, governments are innovating all over the place, particularly with the help of new technologies and a growing constituency of civic-minded developers.

One of my colleagues here at Forrester asked me today if I was planning to write a Playbook on smart cities. While we don’t have a government playbook currently in the works, we have a number of reports that share market trends and industry best practices. So I thought I’d pull together a list. 

Here are a few examples of Forrester reports that illustrate government innovation. My series on smart cities includes:

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Silicon Savannah: Is Africa The Next Frontier For Smart Cities?

Jennifer Belissent, Ph.D.

 

 

Yesterday the Kenyan president broke ground on a new smart city development outside of Nairobi. The site of the new Konza Techno City is located in Eastern Kenya, 60 km from Nairobi on the Nairobi-Mombasa Road. It is 50 km from Jomo Kenyatta International airport and 500km from Mombasa and its ports. The greenfield site, purchased by the Ministry of Information and Communication and to be managed by the Konza Technopolis Development Authority, extends over 5,000 acres. 

The primary goal of the new city is to develop the Kenyan Business Process Outsourcing and Information Technology Enabled Services (BPO/ITES) industry – with estimated creation of 200,000 new jobs across the broad technology and related sectors over a 20-year period. But the primary objective is to create at least 82,000 jobs in the BPO sector as this is a key area for Kenya's Vision 2030. The new city will also house a university, recreation and entertainment venues, a film and media center, a financial district, as well as residential neighborhoods and the supporting infrastructure.

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From Russia With Open Data: Discussion At Moscow Urban Forum

Jennifer Belissent, Ph.D.

 

I was invited by the Moscow city government to participate in the Moscow Urban Forum, a conference designed to bring urban policy experts together to discuss opportunities for Moscow. Last week's event brought together primarily city leaders, urban planners, and architects with a few innovation experts and artists thrown in. There was a lot of talk of global competition and promoting the creative class in a city. But interestingly (for me at least), there seemed to be few from the ICT sector and little discussion of how to leverage technology across the city. 

Despite the relative absence of technology as a main theme in the plenary sessions, there was a breakout on open data, which included city leaders from London, Barcelona, the Netherlands, and Moscow. The speakers all touched on some similar themes of internal use, external interfaces, a model of attracting business, and a comprehensive platform. These map to several of the themes of my presentation a few weeks ago at the Smart City World Congress in Barcelona — improved decision-making, transparency, greater citizen engagement, improved services, and economic development. Different cities highlight different aspects more than others. According to Sergio Jerez, Barcelona, for example, has focused on data as an opportunity to promote entrepreneurship. In his words, “open data is a new raw material for society and economic development.”  

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