IBM Confidential

Smarter Cities,
Asset development, Management
and Organization

11 January 2010
GBS SLT pre-read
 IBM Confidential

Smarter Cities Strategy – Executive Summary

 As cities are a corner stone in building a smarter planet, IBM has the opportunity to help
city leaders around the work to make their urban areas ´´smarter´´. With this, IBM x-
brand and x-industry, will be able to achieve substantial incremental revenues and profits

 Benefit to clients and to IBM from increased SWG content along with our hardened
industry solutions and services offerings
― Widens opportunity to sell standard offerings today
― Establishes comprehensive offerings based on Industry Frameworks, for both standard and
advanced offerings
― Clearly defines role for partners, ISVs and IBM brand participation to mobilize the ecosystem

 Working with selected IMTs to develop deeper city and domain skills. Expanding our
Global Smarter cities community for sharing best practices

 Focus on the critical factors for success:

― Strengthening our solutions and value proposition to cities most critical challenges
― Deepening our relationships with city leaders
― Developing requisite sales and delivery skills
― Working more effectively with international and local partners

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 IBM Confidential

Smarter Cities Execution and Governance – Guiding Principles

 Two core components

― A Global Smarter City planning and execution organization

― A locally-aligned field sales organization

 The global organization will be a “thin”, virtual, team focused on a) strategic business
development and b) solution design. This team will be cross-brand and cross-sector in
nature.

 The “Solution Design” team will be focused on offering management, asset

mining/extraction, and support for the field sales teams.

 Solutions will be defined based on the global Smarter City offering model and will
incorporate the Smarter Cities Industry Frameworks

 The field sales organization will be aligned with individual IMT direction and Smarter City
pipeline

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 IBM Confidential

The Global Smarter Cities Solutions Model

Strategy and Planning Government Performance

City Wide  Business Analytics  Performance dashboards
Optimization  Assessments  Collaboration tools
 City Command Center

City Cyber-Security Strategy

Government Services Healthcare Buildings Energy

 Social services  eHealth  Asset/Maintenance  Smart Grid
 Permits and licenses  Collaborative care Management  Street lighting, etc.
 Registries  Public health  Property performance  Electric vehicles
Business
 Economic Mgmt – energy, water,  Renewable energy
Areas
development waste, GHG, costs

Public Safety Education Transportation Water Management

 Crime information  Smarter classroom  Road user charging  Infrastructure mgmt
warehouse  Smart administration  Fare management  Resource planning
 Emergency response  Innovation in research  Transport info mgmt
 Digital surveillance Telecommunications
 High speed rails,
airports, seaports  Broadband expansion

Government

Public Sector Public/Private Sector

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 IBM Confidential

The Smarter Cities Execution and Governance Model

Steering Board
LoB’s
Smarter Cities
GLOBAL
Smarter Cities Leadership Team

Business SC Solutions Industry CoC’s Global SME’s

Development Portfolio Management (e.g., Social (e.g., Sharon Nunes
Services, et al, Duncan
Alliances PPP’s Research CTO Healthcare) Ashbee etc)

Opportunities
GEOGRAPHY Smarter Cities Teams
Geography LoB / x-LoB
IMT Specific Deal Qualification
Priorities, Smarter OO and B&P
Cities Specialists,
BSP’s, SME’s

Strategy / Business Development / Bid Ownership, Solution

Value Creation Teams Design & Delivery

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 IBM Confidential

Our field sales teams require a well-defined maturity model to help them advance
opportunities from “standard” to “complex”

Extend and optimize services to more functional areas GUIDELINES

Design, Build, Run the smart city solution according to the roadmap
 The Maturity Model
should be flexible
Determine what citizen centricity means and adapt to
multiple scenarios
Introduce Network centric Operations (SOA-F
asset) to create a collaboration platform
 Reuse existing
experiences and
Start with a door-opener: lessons
City assessment tool, Government CBM, and
( Smart city
Cost Take-out maturity
 Link it tightly across
brands, across
Sectors and with
Research

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 IBM Confidential

Smart Cities requires aligned investments and a tight Governance

to establish a coherent asset based solution portfolio

STEP
REQUIRED State & Local Government Industry Segment Interconnected with Aligned Sectors
1 Agree IBM Smarter Cities
INTEGRATED
GOVERNANCE
& INVESTMENT Smarter City Planning and CommandSmarter CenterBack Multi Agency Candidate GBS
Smarter Decision Smarter Services Smarter Front Citizen
Smarter Services
Smarter
Multi-agency
Making coordination and oversightOffice Integration Capabilities/
State & Local Government Industry Segment Office
Interconnected SectorsInfrastructure
with AlignedIntegration Offerings

IBM Smarter Cities

Environment &

2 WHAT DO WE

Management

Revenue Mgt
Sustainability

Management

management
management
Water/Waste

Smarter Back

Infrastructure
Envision a better city Improve city services Multi-Agency Responsive Enable economic Pursue good
Smart Grids
and Energy

Prosperity
Economic
Transport

City Safety

Education
Existing

Integration
SELL?

& Security
Integration Predictive prosperity governance

Building

Services
Smarter

Smarter
• Carmarthen, UK –

Tax &
Government

Social
Office
Agree the • Salerno, Italy – Smart • UK – Southwest One Services • San Francisco, CA – • Dortmund, Germany –
Eco

Consolidated Command
Town • DEFRA PUC Sewer NextGen E-Services Engagements
Solution Centers
Smarter Decision • Pilsen, Czech Rep. – • Smarter Back
Dept for Transport • Smarter
UK – Southwest One
Front Smarter
Operations Smarter
Solution
Candidate GBS
Offerings • Moscow, Russia – e- Smarter Services
Pilsen Smart City • DVLA Office • Dubuque, IA – City- • Peterborough, UK – • Nanjing, China – Capabilities/
MoscowMaking Office
wide Sustainability Infrastructure Integration
• Rotterdam, Netherlands • Surrey Environmental Integrated Public Offerings
• SmartCity Malta Assessment and
– Smart Delta City • Bradford Capital City Services Platform
• Johannesburg, South Optimization
• Mannheim, Germany – • Pangoo (Cloud) • Dublin, Ireland – • Somerset County, UK
Africa – Aligning IT • Venice, Italy –
Envision Model City Transport 21 – Southwest
good One
strategyawith
better city
strategic Improve city services Multi-Agency Responsive
TagMyLagoon Enable economic Pursue
• UK – Southwest One • QueenslandMotorway Existing
city goals Integration Predictive prosperity governance
WHAT ALREADY • Carmarthen, UK – Government
Consolidated Command
• Salerno, Italy – Smart • UK – Southwest One Services • San Francisco, CA – • Dortmund, Germany –
3 EXISTS? Centers
Performance
Social Services,
Town
• Pilsen, Czechlicense
Rep. –
•
•
DEFRA
Eg
Dept
Finance
Smarter Billing
for Transport • UK Healthcare
– Southwest One
PUC Sewer
Operations
NextGen E-Services
Solution
Engagements
eg:
Connect • Moscow, Russia – e- Permits •Collaborative
Dubuque, IA – City-
dashboards Pilsen Smart City • DVLA Care • Smarter Buildings
Peterborough, UK – Revenue
• Nanjing, China –
Moscow Land registries wide Sustainability
Research, GBS • Rotterdam, Netherlands • Surrey Public Health Environmental Integrated Public
Management
• SmartCity Malta Accessibility Assessment and
– Smart Delta City • Bradford
Procurement Capital City Services Platform
assets, SWG • Johannesburg, South Optimization
• Mannheim, Germany – • Pangoo (Cloud) • Dublin, Ireland – • Somerset County, UK
Africa – Aligning IT • Venice, Italy –
products & 3rd Model City Transport 21
Transportation – Southwest One
strategy with strategic TagMyLagoon
• UK – Southwest One HR • QueenslandMotorway
party apps in a city goals Energy & Utilities Implementation & Road user charging
Intelligent Smart grid,Water Governance Fare management Multi-Agency
logical way Information Social Services, Finance Collaboration
Management Planning
Healthcare Transport info eg:
Performance Permits license Eg Smarter
CRM Billing
dashboards Collaborative Care Smartermgmt
Buildings Revenue
Land registries
Public Health Management
Accessibility
Public Safety Facilities &
Procurement Financial Modeling Telecomms
Analytics & CIW Estates & Risk Mitigation Broadband Security and Privacy
Optimisation Emergency response Transportation
Plans expansion
Digital
Energysurveillance
& Utilities HR Implementation & Road user charging
Intelligent IT Function Multi-Agency
Smart grid,Water Governance Fare management
Information Management Planning Transport info Collaboration
CRM mgmt

4 ENGAGEMENT Business Model

Engagement Model (UMF) Artifacts

Business Model

Public Safety Facilities &

IBM Assets, SW and Products
IBM Assets, SW and Products

Phase 0 Phase 1 PhaseModeling

Financial 2 Phase 3
Telecomms
MODEL? Analytics &
Processes
CIW Estates
Processes

& Risk Mitigation Broadband

Processes

Groundwork Envision Design Execute

external

Repeatable Emergency response Security and Privacy

Optimisation Applications
Plans expansion
Digital surveillance
Applications

‘method’ to bring
Applications

IT Function
IT Infrastructure
IT Infrastructure
the assets, IT Infrastructure
3 - 4 weeks 10 – 12 weeks 4 – 6 months Ongoing
7
One
Interface

One
Interface

One
Interface

One
Interface

One
Interface

One
Interface
One
Interface

One
Interface

One
Interface

One
Interface

One
Interface

One
Interface
One
Interface

One
Interface

One
Interface

One
Interface

One
Interface

One
Interface

products to client
IBM Interface to 3rd Party

3rd Party Technologies

(SAP, Oracle,...)
 IBM Confidential

Asset Mining and Extraction

 Harvesting assets from current engagements is a top priority

 Integrating IBM´s solutions and industry frameworks is the norm

 Using Websphere Business modeller is going to be the standard for asset

harvesting and expansion

 Putting a tight global x-brand/x-industry governance structure in place is key, with

a CTO responsible for the alignment

 Alignment of x-brand and x-industry investments for expanding and deepening our
smarter cities solutions portfolio over time

 Developing and roll out of training materials for building solutioning and delivery
skills

 Usage of the Global smarter city community platform to exchange best practices
and enhance value propositions

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 IBM Confidential

Each offering provides immediate and longer term profit potential

Standard Smarter Cities Offerings Advanced Smarter Cities Offerings

(Faster decisions) (Longer cycle, larger BOM)
 Transportation Information Management  Fare management
Intelligent ―Asset Management  Congestion charging
Transportation ―Performance Management  Traffic prediction
―Optimization/Analytics

 Water Asset Management  Water infrastructure management

Water ―Asset Management  Water resource management
Management ―Performance Management
―Optimization/Analytics

 Integrated Asset, Maintenance, Facilities  Complex, cross geo, building optimization

Smarter and Energy Management and real estate management
Buildings  Asset & Property Performance Mgmt  Energy management optimization
 Building Video Analytics for Safety and
Surveillance
 Smart Metering and Beyond  Distributed Energy Resources
 Grid Operations  Electric Vehicle Management
Smart Grid  Intelligent Utility Network Communications
 Intelligent Utility Network Security

 Emergency Response
 Digital Video Surveillance  Crime Information Warehouse
Public Safety  Entity and Crime Analytics
 Fire Safety Building Analytics

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Foundational Expand and Grow
 IBM Confidential

The emerging Smarter Cities ecosystem is characterized

by different industries that are beginning to converge

Provides physical Manages and

components for Infrastructure Infrastructure operates
urban systems Engineering/Integrators Operators physical
and serve as infrastructure
system systems such
integrators for as highways,
complex projects bridges,
airports, electric
grids, etc.

Integrated End-to-End
Smarter Cities Capabilities
Supplies IT Plans, advises,
components, designs and
serves as an builds urban
advisory or physical
integrator; provides infrastructure
information often with
backbone, data property owners,
analysis and developers, and
associated services local
Architecture/ governments
Traditional IT Engineering/Construction

10 A network of local coverage and delivery firms is also required

 IBM Confidential

Next Steps

Time
Action Owner
Frame

• Work with selected IMTs to prioritize Smarter Cities and build out Smarter City IMT & Global
Teams with solution sales skills Smarter
• Put the IMT and global Smarter city organization and governance in place cities Q1
• Identify and protect current expense and resource and manage as one IBM in support
2010 structure
• Lead deployment of business solution architects for Smarter City opportunities
IMT, CoC
• Lead process to identify opportunities to build or buy more industry software Q1
and GDC
• Lead process to identify skills gaps and delivery resources.
• Start asset harvesting and solution convergence
• Share best practices via the Global Smarter Cities Community Global
on-
Industries,
• Roll out e-learnings going
L&K
• Global support of key deals and innovative business models
• Develop value proposition for non-traditional partners, understand industry
economics, define our mutual relationship and continue shifting existing x-Brand and
Q2
coverage resources x-Industry

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 IBM Confidential

Smarter City
Advanced Offerings
and Innovative Business Models
 IBM Confidential

The vision for Sonoma – and California Water Management – is

grounded in the foundational elements of our Smarter City strategy

 Framework-driven

 Cross-brand

 Progression from
“Standard” to
“Advanced” Smarter
Cities Plays (10 months)

 Ultimately creates an
“Information Utility” for
multiple water systems

 Ties to regional
economic development

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 IBM Confidential

Integrating Smart Cube and Cloud allows the “Information Utility” concept to
become economically feasible to many other smaller water distributors

Information Utilities across

functions and geography

Above the Line:

Local data analyzed in the
Advanced analytics cloud, but stored locally
across cities, IBM Software offerings:
countries and
agencies

Below the Line:

Local data analyzed and stored locally

Smart Cube
Platform
ISV applications molded
as a coherent set
Component
14 Business Model
 IBM Confidential

Tying in economic development further establishes the IBM

value proposition

Proposed Smarter Improvement in key

We are creating a business
functional improvement city/county factor
model that quantifies the
economic development
value of the Water-based
Information Utility - a clear Stimulate business
differentiator for IBM. Increase jobs and growth for water-
the tax base driven businesses

Economic Vitality Factors

For Businesses For Citizens
Smart Water
Grid Educated Workforce Career Opportunities Management
The economic development Dependable and Affordable Utilities: Energy, Water
model works across the Public
Low Crime Rate
Safety
Smarter Planet spectrum Affordable Office Space Affordable Housing
Transportation Access Reasonable Commutes Intelligent
Smarter
Transportation
Buildings Access to Affordable Healthcare
Culture and Leisure Activities

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 IBM Confidential

Goal of Smart NanJing

‘Smart NanJing’ will be the general outline of NanJing future urban
development during 12-5 period. Based on the same vision, IBM will form a
strategic collaboration partnership with NanJing government , help NJ to
speed up the ‘3-development’ strategy landing, help to lead the way into a
prosperous and sustainable future, help to build up the smart city.

NJ Govt
6 Core of Smart City
3-Development Strategy
Government
Service Education
Transformation Development
Energy, Water
Intelligent Environment
Transportation Innovation Development
Protection
Public Facility
Saltant Development

Public Safety Healthcare

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 IBM Confidential
Smart NanJing Strategic Cooperation
Framework
 achieve strategy collaboration to lead smart city development
Purpose
 establish significant projects under IBM global technology and method

Smart NJ  NJ Govt:
Provide strategy support and resources coordination,
Strategic Collaboration to ensure the landing of smart NJ projects.
Model  IBM:
Framework Provide IBM technology and related service & products from IBM
global & IBM business partner resources.

 Phase I - Now – Y2010/E

Progress  Phase II - 2011 – 2015 (‘12-5 Period’)

Smart NanJing Significance

A new concept A driving
A different A constant A core
of urban force
thinking way pursuit process source
development to pursuit
of using urban for every to enhance
and harmonious
resource participant city image
management development

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 IBM Confidential

Smart NJ’s Schedule

2009 - 2010 2011-2015
Phase I Start-Up Period Phase II Construction Period

 Improve Smart NJ overall construction plan

 Team up NJ-IBM 12-5 Smart City co-work
team, and work out ‘NJ 12-5 Smart City  Cook out the 2011 – 2015 key projects
Plan’.
 Design the mega deal model..

 Sign NJ-IBM Smart City Strategic  Integrate NJ & IBM resource and technology
Collaboration MOU, start up cooperation
in all aspects of smart NJ.  Integrate all resource from local society

 Establish a ‘Smart NJ Committee’ and its  Implement Smart NJ projects

organizations, responsibility, working
mechanism,etc., formal define key  Overall acceptance
projects and budget supporting
arrangement.  Plan for next 13-5

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