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Essays from urban innovators Edited by Simon Willis Thought Leaders

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The ideas explored in Connected Cities chart the emergence of a political and economic phenomenon-the city as the new connected republic of the 21st Century. Simon Willis, Global Head of eGovernment for the Internet Business Solutions Group at Cisco Systems, has collated essays that show how different cities, at the cutting edge of the process, are grappling with the various stages of connectivity.

TRANSCRIPT

Page 1: Connected Cities

Essays from urban innovatorsEdited by Simon Willis

Thought Leaders

Page 2: Connected Cities

1

Cities

Contents

Preface 2Simon Willis, Director of the European Public Sector team, Internet Business Solutions Group, Cisco Systems

Dubai 12Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

Barcelona 20Joan Clos, Mayor of Barcelona

New York 28Michael R Bloomberg, Mayor of the City of New York

Stockholm 36Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administrationand Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm

Milan 44Silvio Scaglia, Chairman of e.Biscom, Milan

WroclawSlawomir Najnigier, Deputy Mayor of Wroclaw

Manchester 54Dave Carter, Director of the Digital Development Agency, Manchester

Hamburg 68Senator Gunnar Uldall, Minister for the Economy and Employment, Hamburg

HillingdonA case study: How to create the business case 74Pacey Cheales, Corporate Programme Manager, Hillingdon ImprovementProgramme and Steve Palmer, Head of Technology and Communications,Hillingdon Council

Biographies 110

50

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Cities

Contents

Preface 2Simon Willis, Director of the European Public Sector team, Internet Business Solutions Group, Cisco Systems

Dubai 12Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

Barcelona 20Joan Clos, Mayor of Barcelona

New York 28Michael R Bloomberg, Mayor of the City of New York

Stockholm 36Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administrationand Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm

Milan 44Silvio Scaglia, Chairman of e.Biscom, Milan

WroclawSlawomir Najnigier, Deputy Mayor of Wroclaw

Manchester 54Dave Carter, Director of the Digital Development Agency, Manchester

Hamburg 68Senator Gunnar Uldall, Minister for the Economy and Employment, Hamburg

HillingdonA case study: How to create the business case 74Pacey Cheales, Corporate Programme Manager, Hillingdon ImprovementProgramme and Steve Palmer, Head of Technology and Communications,Hillingdon Council

Biographies 110

50

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PrefaceSimon Willis, Director, Public Sector, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa

his is a book about cities, largelywritten by cities. It is also a bookabout the future of the city andtherefore a book about the

future of the place where most of us live.The city leaders writing here are a diversegroup and their experiences withconnecting themselves and their citizensare very different – but a number ofcommon themes emerge, which takentogether and carried forward, suggest thatwe are on the brink of some veryprofound changes.

People construct the endlessly complexarchitectures of their cities over time –driven by their desire to be with eachother, learn from each other, and groweconomically, culturally and spiritually. Toserve these desires, cities have createdphysical spaces and mechanisms; thestreet, the marketplace or the coffeeshops. In our own age these have beensupplemented by digital spaces. As themeans for the instant exchange of digitalinformation are built, a new dynamicemerges at the heart of what makes a city– information can flow towards peoplerather than people towards information.

As this dynamic begins to affect work so ithas subtle but profound effects on thenature of the city. Firstly, the boundariesof the working day and of the workplacebegin to blur. Cities are partly defined bydays and offices. If the information people

need flows more effectively to wherepeople are, then there is less imperative tobring them all into the same place.Secondly, more collaborative ways ofworking and decision-making emerge andthis changes the relationship of the citywith itself and with its citizens.

In the following sections I look at threethemes that emerge from the essays. Thefirst is the changing nature of work andparticularly the increasing importance ofcollaboration in the successful enterprise.This is a much wider trend that cities areinevitably effected by. The second is thegrowing realisation that for the city tochange in the way enterprises havechanged, they require the kind ofinformation exchange environment thatenterprises now take for granted. In theprocess they may have discovered the nextpervasive social infrastructure to followwater, roads, power and telecoms. Thethird theme is political – a new model forthe polis becomes possible when newways of working are combined with a newpervasive social infrastructure. These citiesare collaboratively reconstructingthemselves around the needs of theircitizens. What emerges is the connected republic.

The first common theme we see emergingin these essays is that changes in ways ofworking are starting to effect the city’sfundamental strategic planning. The first

Tessay from Dubai by a true innovator andentrepreneur, Saeed al Muntafiq, DirectorGeneral of Dubai Development andInvestment Authority, shows howdigitisation and networking develops theway people work. Dubai constantlyreinvents itself around the concept of thetrading hub. Demands for education andmedicine across a huge area areconverging on Dubai’s new knowledgecity – built on a fibre infrastructure.

In the essay from Barcelona by Joan Clos,visionary mayor of Barcelona, you see anexample of an innovative, creative andcompetitive city that has seized theopportunity to change itself again andagain over the past few decades. MayorClos has put education at the heart of hiscity’s endless recreation of itself.

The essay from New York by MayorBloomberg shows how digitisation andnetworking change the nature of work bydeveloping collaboration. The traditionalmodel of government put public servantsin a position of gatekeepers, controllingflows of information. The focus was to getaccess to the information – to control it,to trade it, to protect it. In New York (aselsewhere) networked information haschanged the nature of gatekeeping.

One of the differences between networkedinformation and telephonic, mailed or

verbal information is that networkedinformation takes the best route –traditional information goes from point topoint, while networked information takesthe best route it can find. One of theimplications of this is that it becomesharder to control. This makes it both moreresilient – and harder to gatekeep. With IPnetworking, fewer premiums are placedon, and less power is given to, thegatekeepers of information. This ispotentially revolutionary.

In connected cities, power and influence isa function of how well you facilitatenetworks of information and action, nothow much information you control.Collaboration and facilitation supplanthierarchy and formal structure as thedominant tests of effective organisation. It is not surprising to find cultures thatalready tend towards the collaborative areat the forefront of this revolution. Ourfourth essay is a collective work fromAnita Ferm, Education Director of the Cityof Stockholm, Per-Olof Gustafsson, DeputyManaging Director of Stockholm’sEconomic Development Office and MonicaBernestrom, Head of the Department TIME (Telecom, IT, Media andEntertainment|). Stockholm is a citywhose long-standing enthusiasm forcollaboration has given it an edge in thestruggle to embrace new thinking.

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PrefaceSimon Willis, Director, Public Sector, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa

his is a book about cities, largelywritten by cities. It is also a bookabout the future of the city andtherefore a book about the

future of the place where most of us live.The city leaders writing here are a diversegroup and their experiences withconnecting themselves and their citizensare very different – but a number ofcommon themes emerge, which takentogether and carried forward, suggest thatwe are on the brink of some veryprofound changes.

People construct the endlessly complexarchitectures of their cities over time –driven by their desire to be with eachother, learn from each other, and groweconomically, culturally and spiritually. Toserve these desires, cities have createdphysical spaces and mechanisms; thestreet, the marketplace or the coffeeshops. In our own age these have beensupplemented by digital spaces. As themeans for the instant exchange of digitalinformation are built, a new dynamicemerges at the heart of what makes a city– information can flow towards peoplerather than people towards information.

As this dynamic begins to affect work so ithas subtle but profound effects on thenature of the city. Firstly, the boundariesof the working day and of the workplacebegin to blur. Cities are partly defined bydays and offices. If the information people

need flows more effectively to wherepeople are, then there is less imperative tobring them all into the same place.Secondly, more collaborative ways ofworking and decision-making emerge andthis changes the relationship of the citywith itself and with its citizens.

In the following sections I look at threethemes that emerge from the essays. Thefirst is the changing nature of work andparticularly the increasing importance ofcollaboration in the successful enterprise.This is a much wider trend that cities areinevitably effected by. The second is thegrowing realisation that for the city tochange in the way enterprises havechanged, they require the kind ofinformation exchange environment thatenterprises now take for granted. In theprocess they may have discovered the nextpervasive social infrastructure to followwater, roads, power and telecoms. Thethird theme is political – a new model forthe polis becomes possible when newways of working are combined with a newpervasive social infrastructure. These citiesare collaboratively reconstructingthemselves around the needs of theircitizens. What emerges is the connected republic.

The first common theme we see emergingin these essays is that changes in ways ofworking are starting to effect the city’sfundamental strategic planning. The first

Tessay from Dubai by a true innovator andentrepreneur, Saeed al Muntafiq, DirectorGeneral of Dubai Development andInvestment Authority, shows howdigitisation and networking develops theway people work. Dubai constantlyreinvents itself around the concept of thetrading hub. Demands for education andmedicine across a huge area areconverging on Dubai’s new knowledgecity – built on a fibre infrastructure.

In the essay from Barcelona by Joan Clos,visionary mayor of Barcelona, you see anexample of an innovative, creative andcompetitive city that has seized theopportunity to change itself again andagain over the past few decades. MayorClos has put education at the heart of hiscity’s endless recreation of itself.

The essay from New York by MayorBloomberg shows how digitisation andnetworking change the nature of work bydeveloping collaboration. The traditionalmodel of government put public servantsin a position of gatekeepers, controllingflows of information. The focus was to getaccess to the information – to control it,to trade it, to protect it. In New York (aselsewhere) networked information haschanged the nature of gatekeeping.

One of the differences between networkedinformation and telephonic, mailed or

verbal information is that networkedinformation takes the best route –traditional information goes from point topoint, while networked information takesthe best route it can find. One of theimplications of this is that it becomesharder to control. This makes it both moreresilient – and harder to gatekeep. With IPnetworking, fewer premiums are placedon, and less power is given to, thegatekeepers of information. This ispotentially revolutionary.

In connected cities, power and influence isa function of how well you facilitatenetworks of information and action, nothow much information you control.Collaboration and facilitation supplanthierarchy and formal structure as thedominant tests of effective organisation. It is not surprising to find cultures thatalready tend towards the collaborative areat the forefront of this revolution. Ourfourth essay is a collective work fromAnita Ferm, Education Director of the Cityof Stockholm, Per-Olof Gustafsson, DeputyManaging Director of Stockholm’sEconomic Development Office and MonicaBernestrom, Head of the Department TIME (Telecom, IT, Media andEntertainment|). Stockholm is a citywhose long-standing enthusiasm forcollaboration has given it an edge in thestruggle to embrace new thinking.

2

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Many cities are on the brink of taking afundamentally new step in their thinking.That is to categorise, in their minds,communications infrastructure as on thesame level as roads, railways, dams andairports. The cities highlighted in this book(and many others) know that they need tomodernise their cities so that people caninteract within them more effectively. If acity is sufficiently connected, theninvestors will arrive and find the right kindof employees. Competitive cities areincreasingly regarding real broadbandnetworks as belonging in the samepolitical and investment categories astransport networks. Fibre infrastructure fora couple of million people is equivalent incost to a couple of miles of highway. Ithas become a viable option for a cityinvesting in its future. The question is,whether and when it will become animperative.

All those reading this book will be acutelyaware of the rapid growth of the amountand the speed of connectivity in the pastten years. This transformation ishappening much faster than previousrevolutions. If you go to the Linx server(www.linx.net) and look at internet activityover Europe’s largest internet exchangepoint over recent years, you will see thatthe dot-com crash apparently didn’thappen. Just about the only event that hasa significant impact on the graph isChristmas. The apparent rollercoaster thatwe have been on since 2000 has been justa trivial variation around a remorselessupward rise in connectivity.

Each of the pervasive social infrastructuresthat our cities are built around, such asthose for water and transport, have aslightly different set of characteristics and

a slightly different set of effects on thenature of our cities. It is in the nature ofmany of these infrastructures that themarket cannot provide them at the outset.We all are aware that water and transportare first developed as a socialinfrastructure, in the first instance created,paid for and owned by the public sector.What emerges from these city essays is the possibility that the next pervasivesocial infrastructure that society wants to advance to the next stage, isbroadband fibre.

Although there are exceptions, it appearsthat the public sector may have a key roleto play in this development. There are twofundamental reasons why a pervasivesocial infrastructure cannot generally beeffectively provided by the market. Firstly,that the investment required in this case(in order to achieve critical mass inconnectivity) is so huge that the marketcannot move, because the services cannotbe provided to the consumer by theprivate sector until the connectivity isavailable and the connectivity cannot beinvested in until the demand for futureservices is understood.

Investing in real broadband infrastructureis expensive. The establishment oftelecoms presents the most obviouslycomparable example. To build thefundamental social infrastructure fortelecoms required public-sectorintervention both at the beginning of thatrevolution and well into it. Then came apoint of maturity where it becameappropriate to allow the market muchmore freedom. In fact, you may requirethe market to drive innovation onwardsand give the consumer more choice, butthere is a build-out stage where you

require some kind of public investmentand public intervention to make it work. Inthe case of real broadband the amount ofinvestment involved is large.

The second set of reasons as to why themarket cannot provide broadbandstructure is based on what services peoplerequire. Someone investing ininfrastructure will have to get paybackover such a long period of time that theywill require exclusivity over the servicesthat they are going to provide. This limitsthe field of access and services. The citydecision-maker or public-sector decision-maker (who wants people to have accessto a wide range of entertainment services,government services, communicationsservices and so on) will find that theirneeds are not met. City decision-makersmay not want to have access limited andpre-defined by a single infrastructureinvestor or service provider.

The essays in this book show howdifferent environments create differentmodels, but increasingly the city isstepping in as a fundamental stakeholderand investor. The city will invest in thepassive infrastructure for connectivity andcan borrow more cheaply than the privatesector. The city can run the business caseand will be able to sustain its borrowingfrom quite a small stream of returns bygiving access to the infrastructure. The cityknows that this passive infrastructure (andI’m thinking here about fibre) has about15-20 years of life in terms of its usability,which takes it beyond the type of returnon investment calculations that mostshareholder-owned companies andorganisations are able to contemplate.

So, the public sector steps in and funds

the really fundamental passive longterminfrastructure. The essays show differentmodels in different cities of what standsbetween the infrastructure and the endusers. These allow people access todifferent service providers – whether it istelephony, video telephony, IP telephony,security applications around housingestates and into schools, and theneducation, healthcare provision, video ondemand and entertainment and more. Westill don’t know what services will developin this environment. It is clear thatsomebody needs to sit between thefundamental investment and the set ofservices that are going to be provided,and the city is emerging in many places asthe vehicle to do that, on its own orthrough a public/private partnership orthrough some other joint mechanism.

Among our examples, the Milan story toldby the far-sighted Silvio Scaglia, Chairmanof e.Biscom, is of a pure private play. Theavailability of venture capital in the late90s, the lack of pre-existing cable toprevent the new entrant from gettingrapid take-up of services and the densityof housing were a set of uniquecircumstances in Italy that allowed e-Biscom to take off in a really impressiveway. Italian cities are only just beginningto look at the wider set of city-serviceapplications and aggregated demandsthat they want to use this infrastructurefor. The Fastweb experience has not beendriven by the desire to put e-learning intoschools or do initial primary care healthconsultations in people’s living rooms. The driver for growth in Milan has comefrom the video on demand and videotelephony and entertainment and privatecommunication applications that people demanded.

Preface Preface

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Many cities are on the brink of taking afundamentally new step in their thinking.That is to categorise, in their minds,communications infrastructure as on thesame level as roads, railways, dams andairports. The cities highlighted in this book(and many others) know that they need tomodernise their cities so that people caninteract within them more effectively. If acity is sufficiently connected, theninvestors will arrive and find the right kindof employees. Competitive cities areincreasingly regarding real broadbandnetworks as belonging in the samepolitical and investment categories astransport networks. Fibre infrastructure fora couple of million people is equivalent incost to a couple of miles of highway. Ithas become a viable option for a cityinvesting in its future. The question is,whether and when it will become animperative.

All those reading this book will be acutelyaware of the rapid growth of the amountand the speed of connectivity in the pastten years. This transformation ishappening much faster than previousrevolutions. If you go to the Linx server(www.linx.net) and look at internet activityover Europe’s largest internet exchangepoint over recent years, you will see thatthe dot-com crash apparently didn’thappen. Just about the only event that hasa significant impact on the graph isChristmas. The apparent rollercoaster thatwe have been on since 2000 has been justa trivial variation around a remorselessupward rise in connectivity.

Each of the pervasive social infrastructuresthat our cities are built around, such asthose for water and transport, have aslightly different set of characteristics and

a slightly different set of effects on thenature of our cities. It is in the nature ofmany of these infrastructures that themarket cannot provide them at the outset.We all are aware that water and transportare first developed as a socialinfrastructure, in the first instance created,paid for and owned by the public sector.What emerges from these city essays is the possibility that the next pervasivesocial infrastructure that society wants to advance to the next stage, isbroadband fibre.

Although there are exceptions, it appearsthat the public sector may have a key roleto play in this development. There are twofundamental reasons why a pervasivesocial infrastructure cannot generally beeffectively provided by the market. Firstly,that the investment required in this case(in order to achieve critical mass inconnectivity) is so huge that the marketcannot move, because the services cannotbe provided to the consumer by theprivate sector until the connectivity isavailable and the connectivity cannot beinvested in until the demand for futureservices is understood.

Investing in real broadband infrastructureis expensive. The establishment oftelecoms presents the most obviouslycomparable example. To build thefundamental social infrastructure fortelecoms required public-sectorintervention both at the beginning of thatrevolution and well into it. Then came apoint of maturity where it becameappropriate to allow the market muchmore freedom. In fact, you may requirethe market to drive innovation onwardsand give the consumer more choice, butthere is a build-out stage where you

require some kind of public investmentand public intervention to make it work. Inthe case of real broadband the amount ofinvestment involved is large.

The second set of reasons as to why themarket cannot provide broadbandstructure is based on what services peoplerequire. Someone investing ininfrastructure will have to get paybackover such a long period of time that theywill require exclusivity over the servicesthat they are going to provide. This limitsthe field of access and services. The citydecision-maker or public-sector decision-maker (who wants people to have accessto a wide range of entertainment services,government services, communicationsservices and so on) will find that theirneeds are not met. City decision-makersmay not want to have access limited andpre-defined by a single infrastructureinvestor or service provider.

The essays in this book show howdifferent environments create differentmodels, but increasingly the city isstepping in as a fundamental stakeholderand investor. The city will invest in thepassive infrastructure for connectivity andcan borrow more cheaply than the privatesector. The city can run the business caseand will be able to sustain its borrowingfrom quite a small stream of returns bygiving access to the infrastructure. The cityknows that this passive infrastructure (andI’m thinking here about fibre) has about15-20 years of life in terms of its usability,which takes it beyond the type of returnon investment calculations that mostshareholder-owned companies andorganisations are able to contemplate.

So, the public sector steps in and funds

the really fundamental passive longterminfrastructure. The essays show differentmodels in different cities of what standsbetween the infrastructure and the endusers. These allow people access todifferent service providers – whether it istelephony, video telephony, IP telephony,security applications around housingestates and into schools, and theneducation, healthcare provision, video ondemand and entertainment and more. Westill don’t know what services will developin this environment. It is clear thatsomebody needs to sit between thefundamental investment and the set ofservices that are going to be provided,and the city is emerging in many places asthe vehicle to do that, on its own orthrough a public/private partnership orthrough some other joint mechanism.

Among our examples, the Milan story toldby the far-sighted Silvio Scaglia, Chairmanof e.Biscom, is of a pure private play. Theavailability of venture capital in the late90s, the lack of pre-existing cable toprevent the new entrant from gettingrapid take-up of services and the densityof housing were a set of uniquecircumstances in Italy that allowed e-Biscom to take off in a really impressiveway. Italian cities are only just beginningto look at the wider set of city-serviceapplications and aggregated demandsthat they want to use this infrastructurefor. The Fastweb experience has not beendriven by the desire to put e-learning intoschools or do initial primary care healthconsultations in people’s living rooms. The driver for growth in Milan has comefrom the video on demand and videotelephony and entertainment and privatecommunication applications that people demanded.

Preface Preface

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That is one end of the spectrum and it hasproduced an interesting and successfulbusiness. The next step will be for thosecity governments (increasingly not justMilan but many other Italian cities as well) to look to the infrastructure to see how they can improve their ownservices as well as proving an attractive investment environment for the growth of small businesses.

Stokab is at the other end of the spectrumin that it is a pure public play. There was avery clear vision in Stockholm that thebuilding of a knowledge economy and theattraction of inward investment and theprovision of better public services wouldall be facilitated by a fibre-basedcommunications infrastructure. When youread the essay by key Stockholm decision-makers (and visionaries) Anita Ferm, Per-Olof Gustafsson and MonicaBernestrom, you see that at the very heartof it is not only a business plan but aprofound belief that this would be theright way to go. They couldn’t calculate allthe benefits to Stockholm at the time thatthe investment was commenced, but theycan see the benefits now. For example, aspeople in Stockholm begin totelecommute, strain on the transportinfrastructure is being reduced. This is afascinating development and is more orless at the forefront of what is happeningin the modern city. Stockholm already hasa different approach to work and theworkplace emerging. Now they arelooking at wireless and turning Stockholminto a wireless hotspot. The wholeStockholm model represents a verySwedish belief in public provision offundamental infrastructure.

Then we have a mixed model, often very

complex, and affected by the local politicalenvironment as well as local legal andeconomic factors. One model is like autility, which is majority-owned by the citybut has a lot of private-sector money andinvestment. Wroclaw’s story as told by thedeputy mayor, Slawomir Najnigier, is agood example of that kind of approach, asthey have actually used the heating utility(which has the holes in the ground) as apublic/private vehicle to develop thepassive infrastructure. Hamburg too, asshown by Senator Gunnar Uldall, offers amixed model, where the private sectorleads and the public sector encouragesand invests. In Hamburg, the public sectorwill intervene as and when necessary, andwill ensure that through the servicesprovided Hamburg remains a growing andsuccessful trading hub.

How significant is this trend? We areaware of at least 40 European cities thatare currently either planning or buildingreal (Ethernet) broadband infrastructures.The number increases weekly. It seemslikely that something very significant istaking place here.

In this very complex and confusingenvironment, it may be useful to try tolook at what is happening in moreconceptual terms. This may allow us todevelop a framework within which we cansee what is common to these successstories. The republic in political history wasan idea that broke with the concepts ofmonarchy, oligarchy and timocracy andestablished the idea of rule by the ‘polis’.It was in the small trading-hub cities ofGreece in the 6th century BC that thedemocratic experiment truly began.

The prospect of a ‘connected republic’

now presents us with the opportunity tomake the idea of rule by the people morereal than it has ever been, creating anenvironment in which people reconnectwith each other politically and at the sametime rediscover the connection they havelost with their rulers. And the naturalgeographical confines of the connectedrepublic are, as in ancient Greece, those ofthe city-state rather than the nation-stateswhich dominated the past century.

Every city is an autonomous competitor ina globalising economy. It is not enoughthat a national government is doing theright things to attract investment. Theindividual city needs to attract investors.The people in that city need to beattractive to employers. Workers in asuccessful city have to deliver value in anenvironment where what you knew tenyears ago is irrelevant to what companiesnow need from their employees. As asuccessful city, once you start tounderstand modern educational needs youstart to get this sense of lifelongeducation actually built into the heart ofthe economic strategy of city, the survivalstrategy of the city.

Meanwhile it is widely accepted that thereis an emerging crisis in democracy becausepeople do not feel engaged with theirpolitical decision-makers. They don’tunderstand them, they don’t know whatmotivates them and decisions appear tocome from on high. There is a kind ofdisengagement. This is a disaster forpoliticians as it takes away their legitimacyjust as it begins to undercut their ability toraise revenues. Unwillingness to pay taxleads directly to restrictions on their abilityto provide services. This feeds back intotheir unpopularity with people, who feel

that the schools are not good enough,healthcare is not good enough and thepolice can’t protect them from danger onthe streets of the city. These are the bigcity issues, and our politicians are caughtin a situation where their people aredisengaged and not willing to pay moremoney but are demanding higher levels of service.

At the same time, technology has createdthe possibility of more responsive servicesthat are more flexible to the signals thatconsumers send. The new connectivity hasmade the private sector much moreresponsive to consumer demand, and thathas made consumers much moredemanding, which has in turn made themmore disconnected from theirunresponsive governments. That is notbecause the public service is stupid andthe private sector is clever. The reason thatthe private sector grabbed hold of changeis that for a private sector company,change is a life or death issue. Forexample, when British Airways hascompetition from easyJet and Ryanair iteither responds or it goes out of businessin the face of competitors with lower back-office costs, simplified fare structuresand incredibly low transaction costs based on new forms of technology-enabled connectivity.

For government, with its quasi-monopoly,it has been harder to respond to this newtrend, although governments arebeginning to see that they face anemerging crisis of legitimacy and service.City governments have responsibility forlooking after the poor and vulnerable and,because they are using public money, theymust take fewer risks. So they findthemselves unable to move as quickly as

Preface Preface

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That is one end of the spectrum and it hasproduced an interesting and successfulbusiness. The next step will be for thosecity governments (increasingly not justMilan but many other Italian cities as well) to look to the infrastructure to see how they can improve their ownservices as well as proving an attractive investment environment for the growth of small businesses.

Stokab is at the other end of the spectrumin that it is a pure public play. There was avery clear vision in Stockholm that thebuilding of a knowledge economy and theattraction of inward investment and theprovision of better public services wouldall be facilitated by a fibre-basedcommunications infrastructure. When youread the essay by key Stockholm decision-makers (and visionaries) Anita Ferm, Per-Olof Gustafsson and MonicaBernestrom, you see that at the very heartof it is not only a business plan but aprofound belief that this would be theright way to go. They couldn’t calculate allthe benefits to Stockholm at the time thatthe investment was commenced, but theycan see the benefits now. For example, aspeople in Stockholm begin totelecommute, strain on the transportinfrastructure is being reduced. This is afascinating development and is more orless at the forefront of what is happeningin the modern city. Stockholm already hasa different approach to work and theworkplace emerging. Now they arelooking at wireless and turning Stockholminto a wireless hotspot. The wholeStockholm model represents a verySwedish belief in public provision offundamental infrastructure.

Then we have a mixed model, often very

complex, and affected by the local politicalenvironment as well as local legal andeconomic factors. One model is like autility, which is majority-owned by the citybut has a lot of private-sector money andinvestment. Wroclaw’s story as told by thedeputy mayor, Slawomir Najnigier, is agood example of that kind of approach, asthey have actually used the heating utility(which has the holes in the ground) as apublic/private vehicle to develop thepassive infrastructure. Hamburg too, asshown by Senator Gunnar Uldall, offers amixed model, where the private sectorleads and the public sector encouragesand invests. In Hamburg, the public sectorwill intervene as and when necessary, andwill ensure that through the servicesprovided Hamburg remains a growing andsuccessful trading hub.

How significant is this trend? We areaware of at least 40 European cities thatare currently either planning or buildingreal (Ethernet) broadband infrastructures.The number increases weekly. It seemslikely that something very significant istaking place here.

In this very complex and confusingenvironment, it may be useful to try tolook at what is happening in moreconceptual terms. This may allow us todevelop a framework within which we cansee what is common to these successstories. The republic in political history wasan idea that broke with the concepts ofmonarchy, oligarchy and timocracy andestablished the idea of rule by the ‘polis’.It was in the small trading-hub cities ofGreece in the 6th century BC that thedemocratic experiment truly began.

The prospect of a ‘connected republic’

now presents us with the opportunity tomake the idea of rule by the people morereal than it has ever been, creating anenvironment in which people reconnectwith each other politically and at the sametime rediscover the connection they havelost with their rulers. And the naturalgeographical confines of the connectedrepublic are, as in ancient Greece, those ofthe city-state rather than the nation-stateswhich dominated the past century.

Every city is an autonomous competitor ina globalising economy. It is not enoughthat a national government is doing theright things to attract investment. Theindividual city needs to attract investors.The people in that city need to beattractive to employers. Workers in asuccessful city have to deliver value in anenvironment where what you knew tenyears ago is irrelevant to what companiesnow need from their employees. As asuccessful city, once you start tounderstand modern educational needs youstart to get this sense of lifelongeducation actually built into the heart ofthe economic strategy of city, the survivalstrategy of the city.

Meanwhile it is widely accepted that thereis an emerging crisis in democracy becausepeople do not feel engaged with theirpolitical decision-makers. They don’tunderstand them, they don’t know whatmotivates them and decisions appear tocome from on high. There is a kind ofdisengagement. This is a disaster forpoliticians as it takes away their legitimacyjust as it begins to undercut their ability toraise revenues. Unwillingness to pay taxleads directly to restrictions on their abilityto provide services. This feeds back intotheir unpopularity with people, who feel

that the schools are not good enough,healthcare is not good enough and thepolice can’t protect them from danger onthe streets of the city. These are the bigcity issues, and our politicians are caughtin a situation where their people aredisengaged and not willing to pay moremoney but are demanding higher levels of service.

At the same time, technology has createdthe possibility of more responsive servicesthat are more flexible to the signals thatconsumers send. The new connectivity hasmade the private sector much moreresponsive to consumer demand, and thathas made consumers much moredemanding, which has in turn made themmore disconnected from theirunresponsive governments. That is notbecause the public service is stupid andthe private sector is clever. The reason thatthe private sector grabbed hold of changeis that for a private sector company,change is a life or death issue. Forexample, when British Airways hascompetition from easyJet and Ryanair iteither responds or it goes out of businessin the face of competitors with lower back-office costs, simplified fare structuresand incredibly low transaction costs based on new forms of technology-enabled connectivity.

For government, with its quasi-monopoly,it has been harder to respond to this newtrend, although governments arebeginning to see that they face anemerging crisis of legitimacy and service.City governments have responsibility forlooking after the poor and vulnerable and,because they are using public money, theymust take fewer risks. So they findthemselves unable to move as quickly as

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the private sector, and up until now they could not subject social services or healthcare provision or the criminal justicesystem to the risks associated withinnovation and new technology.

That may now be changing. Even if thecity governments are boxed in, they areresponsive political animals; they want todeliver good things to their communities.They need to find a solution. These essaysdocument the emergence of that solutionin the development of what we call theconnected republic. Ideas that have beenapplied to business over the past ten yearsare being applied to the different public-sector environment in ways that overcomethe obstacles which are holding thisprocess back. (I’m indebted to mycolleagues, Martin Stewart-Weeks andMark Badger for much of this analysis –see their forthcoming book on theConnected Republic.)

Despite their differences, all cities havesome fundamental things in common.

First of all, they must grapple with theissue of how to re-engage with peoplewho are becoming disengaged.Governments have to become transparent:citizens must be able to see whatgovernment is doing. Communicationstechnologies unlock the possibility ofreorganising and presenting informationin a way that is appealing to citizens.

Mayor Bloomberg’s New York essaydescribes what appears to be a small, butis in fact a crucial step forward. Theprinciple behind the 311 service is thatcitizens shouldn’t have to work out forthemselves how the city is organised.Cities have been opaque because there

have been 25 or so different departmentsdealing with everything – if you want yourgarbage picked up it is this department,and if you want your water turned off it isanother one, and if the people next doorare noisy it is another. But as the New Yorkessay makes clear, you shouldn’t needsomeone with a doctorate in municipalpolitics standing next to you as you try tosort your way out of a problem. Now, thecity’s networked information systemallows New Yorkers to pick up a phone,dial 311 and be put through to the rightperson to solve their problem. It is the city which thus has to rearrange itselfaround the needs of its citizens, and notvice-versa.

Several years ago, Barcelona rearranged itsnetwork around a portal that reflected theway people live their lives and theproblems they have. This sounds veryobvious, but it is very difficult for publicservants to make that fundamental shiftfrom ‘this is the way we are arranged’ to‘this is how your needs as a citizen arearranged’. Clearly public servants are notgoing to reorganise their departmentsaround citizens’ needs every week.People’s needs are different: they areconstantly changing; they overlap andcontradict each other. However, oncecitizen and official are networked, theycan collaborate. The official finds himselfor herself working in a great virtualcontact centre where inquiries can berouted to the appropriate destination. It’swhat the Government of Canada called‘No Wrong Door’. And once information isnetworked, citizens see it is transparentand become ready to engage withauthority, which they now see as offeringthem a service. Indeed, it becomes morelikely that citizens will use the opportunityto influence, shape and guide authority.

A key element of any strategy for theconnected city is customer-centricity, orcitizen-centricity. Hillingdon is a boroughof London and it discovered that theinvestment required for customer-centricity would repay itself in anincredibly short amount of time. So one ofthe fundamental drivers for Hillingdon’sconnectivity was to reorganise its servicesaround what citizens actually wanted andto be more responsive to requests comingin. It has discovered a double win. Firstly,citizens feel better served, and re-engaged; secondly, it becomes cheaper forthe city to do its work. It is a similar storyin Barcelona, where the CAT 365 projecthas set up a clearing house for citizeninformation. CAT 365 involves the privatesector as well – a public/privatepartnership runs the clearing-house, whichalso offers services out to banks, andutilities and other private-sector playerswhich need private sector information.What will perhaps emerge is a newfunding model, as these people pay forthe ability to become more responsive tocitizens. If the government is effectivelysubsidising the service, so much the better.

Citizen-centricity can help make it possiblefor organisations to become orchestratorsrather than doing everything themselves.They reach out to the place where thething is best done. The city is no longerthe great monolithic provider of servicesto all people and disappointer of people atall times. In contrast, the city is thefacilitator for a set of groups, some of theindependent, some of them semi-independent, who are able whennetworked together to provide a muchmore responsive service.

It’s that kind of emerging role asorchestrator that you see in the essay fromDavid Carter, Director of Manchester’sDigital Development Agency. Connectivityin Manchester is not just about bigbusiness and knowledge workers. It is alsoabout excluded communities becomingconnected through the city as itorchestrates local community groups.These local voluntary groups and public-sector groups are trying to meet the needsof local communities, whether by givingthem access to training, or giving theminformation about where they can getchildcare so they can get back to work, orby helping them connect with otherpeople in similar situations so that theycan feel more part of a community anddevelop common, mutually supportivestrategies. Manchester is an example ofreal people using connectivity so they canstart to take control of their owndevelopment and their own fate. The citydepends on its infrastructure to becomean orchestrator – and in the Manchestercase, wireless has played in increasing partof that infrastructure, even in the poorereastern district of the city.

Mancunians are typically innovative,creative and entrepreneurial people. Thecity is trying to serve all of them and atthe same time include that group ofpeople who were left behind when thelast industrial revolution left Manchester.So there is a very rich emerging portfolioof what the city can orchestrate. Dubaihas also developed an orchestratorfunction, but one much more focused onthe resources of its people and theiringenuity. Through the internet, it isorchestrating local talent, regional playersand the private sector. Large companiesare being attracted to Dubai to provide a

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the private sector, and up until now they could not subject social services or healthcare provision or the criminal justicesystem to the risks associated withinnovation and new technology.

That may now be changing. Even if thecity governments are boxed in, they areresponsive political animals; they want todeliver good things to their communities.They need to find a solution. These essaysdocument the emergence of that solutionin the development of what we call theconnected republic. Ideas that have beenapplied to business over the past ten yearsare being applied to the different public-sector environment in ways that overcomethe obstacles which are holding thisprocess back. (I’m indebted to mycolleagues, Martin Stewart-Weeks andMark Badger for much of this analysis –see their forthcoming book on theConnected Republic.)

Despite their differences, all cities havesome fundamental things in common.

First of all, they must grapple with theissue of how to re-engage with peoplewho are becoming disengaged.Governments have to become transparent:citizens must be able to see whatgovernment is doing. Communicationstechnologies unlock the possibility ofreorganising and presenting informationin a way that is appealing to citizens.

Mayor Bloomberg’s New York essaydescribes what appears to be a small, butis in fact a crucial step forward. Theprinciple behind the 311 service is thatcitizens shouldn’t have to work out forthemselves how the city is organised.Cities have been opaque because there

have been 25 or so different departmentsdealing with everything – if you want yourgarbage picked up it is this department,and if you want your water turned off it isanother one, and if the people next doorare noisy it is another. But as the New Yorkessay makes clear, you shouldn’t needsomeone with a doctorate in municipalpolitics standing next to you as you try tosort your way out of a problem. Now, thecity’s networked information systemallows New Yorkers to pick up a phone,dial 311 and be put through to the rightperson to solve their problem. It is the city which thus has to rearrange itselfaround the needs of its citizens, and notvice-versa.

Several years ago, Barcelona rearranged itsnetwork around a portal that reflected theway people live their lives and theproblems they have. This sounds veryobvious, but it is very difficult for publicservants to make that fundamental shiftfrom ‘this is the way we are arranged’ to‘this is how your needs as a citizen arearranged’. Clearly public servants are notgoing to reorganise their departmentsaround citizens’ needs every week.People’s needs are different: they areconstantly changing; they overlap andcontradict each other. However, oncecitizen and official are networked, theycan collaborate. The official finds himselfor herself working in a great virtualcontact centre where inquiries can berouted to the appropriate destination. It’swhat the Government of Canada called‘No Wrong Door’. And once information isnetworked, citizens see it is transparentand become ready to engage withauthority, which they now see as offeringthem a service. Indeed, it becomes morelikely that citizens will use the opportunityto influence, shape and guide authority.

A key element of any strategy for theconnected city is customer-centricity, orcitizen-centricity. Hillingdon is a boroughof London and it discovered that theinvestment required for customer-centricity would repay itself in anincredibly short amount of time. So one ofthe fundamental drivers for Hillingdon’sconnectivity was to reorganise its servicesaround what citizens actually wanted andto be more responsive to requests comingin. It has discovered a double win. Firstly,citizens feel better served, and re-engaged; secondly, it becomes cheaper forthe city to do its work. It is a similar storyin Barcelona, where the CAT 365 projecthas set up a clearing house for citizeninformation. CAT 365 involves the privatesector as well – a public/privatepartnership runs the clearing-house, whichalso offers services out to banks, andutilities and other private-sector playerswhich need private sector information.What will perhaps emerge is a newfunding model, as these people pay forthe ability to become more responsive tocitizens. If the government is effectivelysubsidising the service, so much the better.

Citizen-centricity can help make it possiblefor organisations to become orchestratorsrather than doing everything themselves.They reach out to the place where thething is best done. The city is no longerthe great monolithic provider of servicesto all people and disappointer of people atall times. In contrast, the city is thefacilitator for a set of groups, some of theindependent, some of them semi-independent, who are able whennetworked together to provide a muchmore responsive service.

It’s that kind of emerging role asorchestrator that you see in the essay fromDavid Carter, Director of Manchester’sDigital Development Agency. Connectivityin Manchester is not just about bigbusiness and knowledge workers. It is alsoabout excluded communities becomingconnected through the city as itorchestrates local community groups.These local voluntary groups and public-sector groups are trying to meet the needsof local communities, whether by givingthem access to training, or giving theminformation about where they can getchildcare so they can get back to work, orby helping them connect with otherpeople in similar situations so that theycan feel more part of a community anddevelop common, mutually supportivestrategies. Manchester is an example ofreal people using connectivity so they canstart to take control of their owndevelopment and their own fate. The citydepends on its infrastructure to becomean orchestrator – and in the Manchestercase, wireless has played in increasing partof that infrastructure, even in the poorereastern district of the city.

Mancunians are typically innovative,creative and entrepreneurial people. Thecity is trying to serve all of them and atthe same time include that group ofpeople who were left behind when thelast industrial revolution left Manchester.So there is a very rich emerging portfolioof what the city can orchestrate. Dubaihas also developed an orchestratorfunction, but one much more focused onthe resources of its people and theiringenuity. Through the internet, it isorchestrating local talent, regional playersand the private sector. Large companiesare being attracted to Dubai to provide a

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set of services for the region so the citycan re-invent itself as a knowledge hub forthe region – and Dubai has a typicallyradical conception of what its region is.

None of this is easy. The industry is awashwith the dynamic of early hopes andexpectations that shoot up too high andlead to disappointment when they are notfulfilled. Yet these essays engender thefeeling that people have recently been tooglum; new connectivity is actuallyhappening. It turns out that it is harder todo than some people thought. It is notjust a matter of whacking up a websiteand saying, ‘come and visit our city’. Noris it just a matter of putting a bunch ofnetworks out to the classrooms andhoping that classrooms will betransformed by mere access to technology.It actually requires changes in processesand fundamental changes in the waypeople work. You can see in the Hillingdoncase study how people had to stop doingcertain jobs because functionsdisappeared. Hamburg too offers a greatexample of quite ruthless standardisation,driven by a finance department inHamburg which would not give access toIT budgets to anybody who failed toadhere to the standards it had established.This is pretty dry stuff, but it is actuallycritical because it turns out that this iswhere money has been wasted, aseverybody re-invents the wheel in thehousing department, the refuse collectiondepartment, the benefits departmentand so on.

Addressing that back-office process, re-engineering, standardisation, the creationof shared service bureaux, will be the taskof the next wave. The city can increase theproductivity of its workforce, unlocking

real value in services that citizens require.So successful has Hamburg become thatthe countryside around it has townscoming to the city and asking them to actas a bureau for them as well. It is thesame in Hillingdon, which has started towork with larger groupings of localauthorities in London.

The Hillingdon in-depth case study offers aroad-map for the early part of the journey.Resources are limited, however strong thecase is, and the options for what youmight do are many. Any city manager willbe standing with a small pot of moneyand a huge number of claims on it – andthe question is, ‘What do I do next week?How do I get started on this journey andwhat should I do first?’ The reason thecase study shows step-by-stepprioritisation and budget allocation is thateven in a tough investment environment itwill allow a city to make changes that willnot only pay back and allow it to expandambitions, but will change the way thatpeople work.

Hillingdon takes quite small processes andchanges people’s relationship to theirwork and the way they collaborate. Withall the money and political will in theworld you are not going to get anywhereunless the actual city workers buy intocollaboration, start to behave differentlyand become more responsive.

The development of a business case tosupport the modernisation of Hillingdoncouncil’s housing service is a tangibleoutcome. Although not completelyunexpected, the scale of the potential fordeploying new working methods –affecting nearly 70% of the workforce –and the consequential impact on office

accommodation – almost a 50% reduction– was more significant than anticipated.The relevance and impact of these initialfindings were enhanced by the subsequentquantitative ROI analysis. This workestablished a financial cost and saving offully deploying modernised working inhousing services. More people can workfrom home and stripping out 35% ofoffice costs on a recurring basis from yearfour onwards means local councillors havechoices to make regarding reallocatingresources that were previously locked upin relatively fixed assets.

The Hillingdon business case generated, orrather confirmed, a piece of learning thathas been stated before but is worthreiterating. The modernisation businesscase is not ‘about’ putting forms on theweb, implementing CRM or havingcolleagues work from home. What themodernisation business case is “about” isachieving profound businesstransformation through carefully managedorganisational change. There is nothingparticularly radical in this statement otherthan that the words are now grounded ona detailed business case whose scope andscale constitute a complete transformationfor Hillingdon’s housing service. What ismore, the business case process is now auseful diagnostic tool.

What we see in these essays is perhaps theemergence of a political and economicphenomenon – the city as the newconnected republic of the 21st century.Standing on the bedrock of realbroadband as a new social infrastructure,these innovators and visionaries areredefining their role in the globalisinginformation economy. As orchestrators ofnetworked information and information-

based services, they can redefine whatthey offer around the actual needs of their citizens.

They are driven by democratic demandsfor re-engagement and for better andmore responsive and accessible cityservices. They are also driven bycompetitive forces.

As it looks outside its nation-stateboundaries to define what it is going tobe in the future and how it is going to besuccessful in this environment, thesuccessful city learns not just how to workdifferently within its departments andagencies but how to collaborate with itsown citizens on the project and makethem part of the success of their own city– thus giving the city back to them.

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set of services for the region so the citycan re-invent itself as a knowledge hub forthe region – and Dubai has a typicallyradical conception of what its region is.

None of this is easy. The industry is awashwith the dynamic of early hopes andexpectations that shoot up too high andlead to disappointment when they are notfulfilled. Yet these essays engender thefeeling that people have recently been tooglum; new connectivity is actuallyhappening. It turns out that it is harder todo than some people thought. It is notjust a matter of whacking up a websiteand saying, ‘come and visit our city’. Noris it just a matter of putting a bunch ofnetworks out to the classrooms andhoping that classrooms will betransformed by mere access to technology.It actually requires changes in processesand fundamental changes in the waypeople work. You can see in the Hillingdoncase study how people had to stop doingcertain jobs because functionsdisappeared. Hamburg too offers a greatexample of quite ruthless standardisation,driven by a finance department inHamburg which would not give access toIT budgets to anybody who failed toadhere to the standards it had established.This is pretty dry stuff, but it is actuallycritical because it turns out that this iswhere money has been wasted, aseverybody re-invents the wheel in thehousing department, the refuse collectiondepartment, the benefits departmentand so on.

Addressing that back-office process, re-engineering, standardisation, the creationof shared service bureaux, will be the taskof the next wave. The city can increase theproductivity of its workforce, unlocking

real value in services that citizens require.So successful has Hamburg become thatthe countryside around it has townscoming to the city and asking them to actas a bureau for them as well. It is thesame in Hillingdon, which has started towork with larger groupings of localauthorities in London.

The Hillingdon in-depth case study offers aroad-map for the early part of the journey.Resources are limited, however strong thecase is, and the options for what youmight do are many. Any city manager willbe standing with a small pot of moneyand a huge number of claims on it – andthe question is, ‘What do I do next week?How do I get started on this journey andwhat should I do first?’ The reason thecase study shows step-by-stepprioritisation and budget allocation is thateven in a tough investment environment itwill allow a city to make changes that willnot only pay back and allow it to expandambitions, but will change the way thatpeople work.

Hillingdon takes quite small processes andchanges people’s relationship to theirwork and the way they collaborate. Withall the money and political will in theworld you are not going to get anywhereunless the actual city workers buy intocollaboration, start to behave differentlyand become more responsive.

The development of a business case tosupport the modernisation of Hillingdoncouncil’s housing service is a tangibleoutcome. Although not completelyunexpected, the scale of the potential fordeploying new working methods –affecting nearly 70% of the workforce –and the consequential impact on office

accommodation – almost a 50% reduction– was more significant than anticipated.The relevance and impact of these initialfindings were enhanced by the subsequentquantitative ROI analysis. This workestablished a financial cost and saving offully deploying modernised working inhousing services. More people can workfrom home and stripping out 35% ofoffice costs on a recurring basis from yearfour onwards means local councillors havechoices to make regarding reallocatingresources that were previously locked upin relatively fixed assets.

The Hillingdon business case generated, orrather confirmed, a piece of learning thathas been stated before but is worthreiterating. The modernisation businesscase is not ‘about’ putting forms on theweb, implementing CRM or havingcolleagues work from home. What themodernisation business case is “about” isachieving profound businesstransformation through carefully managedorganisational change. There is nothingparticularly radical in this statement otherthan that the words are now grounded ona detailed business case whose scope andscale constitute a complete transformationfor Hillingdon’s housing service. What ismore, the business case process is now auseful diagnostic tool.

What we see in these essays is perhaps theemergence of a political and economicphenomenon – the city as the newconnected republic of the 21st century.Standing on the bedrock of realbroadband as a new social infrastructure,these innovators and visionaries areredefining their role in the globalisinginformation economy. As orchestrators ofnetworked information and information-

based services, they can redefine whatthey offer around the actual needs of their citizens.

They are driven by democratic demandsfor re-engagement and for better andmore responsive and accessible cityservices. They are also driven bycompetitive forces.

As it looks outside its nation-stateboundaries to define what it is going tobe in the future and how it is going to besuccessful in this environment, thesuccessful city learns not just how to workdifferently within its departments andagencies but how to collaborate with itsown citizens on the project and makethem part of the success of their own city– thus giving the city back to them.

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DubaiSaeed Al Muntafiq, Director General, Dubai Developmentand Investment Authority

ubai has an economic blueprintfor the future, first conceived in1998 by the Crown Prince withthe simple objective of

increasing per capita GDP. Unlike some ofour neighbours, we have little in the wayof naturally occurring mineral resources,so we needed a service- or technology-based approach.

The strategy we adopted was based onthe model usually referred to as ‘clusterdevelopment’1 and is designed to createspecific engines to drive economic growth.The objective was the creation of a‘technology cluster’.

Six years later, Dubai has become the hubof – and therefore the gateway to – anuntapped market that spans the MiddleEast, North and South Africa, the Indiansubcontinent and the CIS. This marketconsists of 31 countries, 53 languages, 1.8 billion people and a collective GDP of $1.1 trillion.

Our vision is now increasingly focused onone aim: to make Dubai a global hub ofthe world knowledge economy by 2010.

Why did we start with technology?

History – and there was no more pressinghistorical example at the time thanNetscape: a small company that IPOd atabout $18 dollars and closed on the sameday at $75. Examples like this were stillvery much in everyone’s mind in 1999,when His Highness launched DubaiInternet City (DIC).

We soon realised that technology alonewas not enough. We also needed content,convergence and – of course – talent. So,after the launch of DIC, Dubai Media City(DMC) arrived in 2001. In late 2003 wemoved ahead with Dubai KnowledgeVillage, an enclave within DIC designed toprovide a broad range of education andtraining faculties.

We had to learn tough lessons throughoutthis process, and especially when wedeveloped our second and third clusters,for the financial and health sectorsrespectively. Each time, we had to go backto the drawing board. Every project wentthrough major revisions with regard to theparties involved and the relationships, aswell as the basic model.

D Dubai at the centre

Since Media City the model has changed,and with Dubai Health Care City (DHCC –see panel), we raised finance exclusivelyfrom the regional private sector. This cameabout from a change in our appreciationof our position geographically andeconomically – we had to revise what wethought of as being our 'region'.

Investment in any given region flows tothe ‘hub’: for example, the USA has NewYork, Europe has London, Asia has HongKong and Singapore. But if you look at thewider geographical context of Dubai, yousoon see that we’re in a ‘region’ that usednot to have a hub at all – even, andperhaps especially, taking Africa intoaccount, although it has a vast economy.

It was this realisation that transformed ourambitions. We stepped in to fill the gap.We have since been very successful inpositioning ourselves as the hub of theextended region outlined above. With acollective GDP of $1.1 trillion, it’s nosurprise that we can rely increasingly on‘regional’ financing!

This shift has changed the way we workand especially the way we plan, legislate,foster talent and create communicationsinfrastructures.

Change of plans

Firstly, it’s forced us to focus on soundbusiness planning, working througheverything from (in the case of DubaiMedia City) how technology and mediacompanies can work together, to how real-estate management can increasereturn on investment.

This planning process goes through severalstages. First, the business opportunityanalysis, from conception through ideamapping, process specification and so on.We bring in experts to look at each sector,weighing up the value propositions.

Once we’ve mapped the sector within theindustry and within the cluster, we choosespecific business opportunities and createa top-level business plan for each one. Werun due diligence on the plan, then profilethe top 150 or so key investors in theregion. We establish relationships withthem, so that we understand theirinvestment profiles and can match ourofferings to their portfolios.

This is hard, carefully targeted work. Forexample, when we launched Health CareCity, we knew exactly who to go to forinvestment in our teaching hospital, ourdiabetes research centre (diabetes is thenumber-one killer in this region), themedical centre and so on.

1 Professor Porter of the Harvard Business School’s Institute for Strategy and Competitiveness launched the Cluster Mapping Project to define clusters statistically and create objective, detailed profiles of regional economies.Cluster mapping involves the analysis – at several geographic/economic/demographic levels – of regional economic units. This data is used to identify those areas that, by virtue of their performance, location and interdependencies between different industries, can be termed ‘clusters’. Clusters can be evaluated in terms of their contribution to employment and earnings, economic growth, generation of new businesses, and development of IP.

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DubaiSaeed Al Muntafiq, Director General, Dubai Developmentand Investment Authority

ubai has an economic blueprintfor the future, first conceived in1998 by the Crown Prince withthe simple objective of

increasing per capita GDP. Unlike some ofour neighbours, we have little in the wayof naturally occurring mineral resources,so we needed a service- or technology-based approach.

The strategy we adopted was based onthe model usually referred to as ‘clusterdevelopment’1 and is designed to createspecific engines to drive economic growth.The objective was the creation of a‘technology cluster’.

Six years later, Dubai has become the hubof – and therefore the gateway to – anuntapped market that spans the MiddleEast, North and South Africa, the Indiansubcontinent and the CIS. This marketconsists of 31 countries, 53 languages, 1.8 billion people and a collective GDP of $1.1 trillion.

Our vision is now increasingly focused onone aim: to make Dubai a global hub ofthe world knowledge economy by 2010.

Why did we start with technology?

History – and there was no more pressinghistorical example at the time thanNetscape: a small company that IPOd atabout $18 dollars and closed on the sameday at $75. Examples like this were stillvery much in everyone’s mind in 1999,when His Highness launched DubaiInternet City (DIC).

We soon realised that technology alonewas not enough. We also needed content,convergence and – of course – talent. So,after the launch of DIC, Dubai Media City(DMC) arrived in 2001. In late 2003 wemoved ahead with Dubai KnowledgeVillage, an enclave within DIC designed toprovide a broad range of education andtraining faculties.

We had to learn tough lessons throughoutthis process, and especially when wedeveloped our second and third clusters,for the financial and health sectorsrespectively. Each time, we had to go backto the drawing board. Every project wentthrough major revisions with regard to theparties involved and the relationships, aswell as the basic model.

D Dubai at the centre

Since Media City the model has changed,and with Dubai Health Care City (DHCC –see panel), we raised finance exclusivelyfrom the regional private sector. This cameabout from a change in our appreciationof our position geographically andeconomically – we had to revise what wethought of as being our 'region'.

Investment in any given region flows tothe ‘hub’: for example, the USA has NewYork, Europe has London, Asia has HongKong and Singapore. But if you look at thewider geographical context of Dubai, yousoon see that we’re in a ‘region’ that usednot to have a hub at all – even, andperhaps especially, taking Africa intoaccount, although it has a vast economy.

It was this realisation that transformed ourambitions. We stepped in to fill the gap.We have since been very successful inpositioning ourselves as the hub of theextended region outlined above. With acollective GDP of $1.1 trillion, it’s nosurprise that we can rely increasingly on‘regional’ financing!

This shift has changed the way we workand especially the way we plan, legislate,foster talent and create communicationsinfrastructures.

Change of plans

Firstly, it’s forced us to focus on soundbusiness planning, working througheverything from (in the case of DubaiMedia City) how technology and mediacompanies can work together, to how real-estate management can increasereturn on investment.

This planning process goes through severalstages. First, the business opportunityanalysis, from conception through ideamapping, process specification and so on.We bring in experts to look at each sector,weighing up the value propositions.

Once we’ve mapped the sector within theindustry and within the cluster, we choosespecific business opportunities and createa top-level business plan for each one. Werun due diligence on the plan, then profilethe top 150 or so key investors in theregion. We establish relationships withthem, so that we understand theirinvestment profiles and can match ourofferings to their portfolios.

This is hard, carefully targeted work. Forexample, when we launched Health CareCity, we knew exactly who to go to forinvestment in our teaching hospital, ourdiabetes research centre (diabetes is thenumber-one killer in this region), themedical centre and so on.

1 Professor Porter of the Harvard Business School’s Institute for Strategy and Competitiveness launched the Cluster Mapping Project to define clusters statistically and create objective, detailed profiles of regional economies.Cluster mapping involves the analysis – at several geographic/economic/demographic levels – of regional economic units. This data is used to identify those areas that, by virtue of their performance, location and interdependencies between different industries, can be termed ‘clusters’. Clusters can be evaluated in terms of their contribution to employment and earnings, economic growth, generation of new businesses, and development of IP.

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The rule of law

Secondly, it’s forced us to introduce newstatutory frameworks – especially wherefinance and health are concerned. Thereare numerous issues that can beoverlooked – the role of intellectualproperty law in healthcare, for example,where companies are investing heavily inIP research and development.

The lessons we’ve learned here areprincipally that you can’t do it all at once.You have to focus on one sector and mapit out carefully. Every new regulation youintroduce is going to impact on thecountry and the region as a whole. Whenyou’re operating subsidies at the levelrequired for these sorts of projects,statutory influence is mandatory to avoiddestabilising niche economic sectors:you’re not simply managing projects atthis scale; you’re also macro-managing theeconomy as a whole. The critical successfactor here is leadership – you have to stayon top of everything – and you need to beable to win vital support and commitmentto keep going.

The human factor

Next, we’ve had to deal with humanfactors, such as how the people at the topshould be incentivised to boostperformance. This is an importantexample, because each cluster is totallyindependent, responsible for its ownsuccess and managed, in effect, like a company.

At a higher level, there’s a council ofministers or executive council, which iseffectively the corporate holding companywith all the cities as subsidiaries. Each

subsidiary has its own president andoperates as a separate business unit. Sojust as GE, for example, has its engine’s division, its plastics andchemicals, so Dubai has its Media City,Financial City and so on.

But you also need to be aware of thehuman element at the bottom of the pile.Where is the skills pool that is driving themachine? Personally, this is something Ithink about every day: from where are wegoing to get the talent? Right now, if yousat down and worked it out, we’d haveabout six projects for every individual!People are the issue, which is why wespend a lot of time in finding, grooming,mentoring and then pushing new young nationals.

Our educational strategy is an identicalproposition to Boston. It is not cluster-driven – any cluster structure emergesorganically from seed projects. Boston hasHarvard; it also has MIT, and that’s whatwe’re aiming for here. We’re expandingour facilities for those entering highschool and, at the other end of the scale,for postgraduates. We’re not dealing withthe 18-year-old age range, where there arevery significant costs involved. We want tolay the foundations with a good generaleducation, and then we’ll provide thespecialist finishing courses to take peopleinto work.

Making connections

Today, each city independently determinesits technology and connectivityrequirements but, going forward, weenvisage that all of these cities will be connected.

Their needs will be different, of course.You only have to think of something liketelemedicine to realise that the HealthCity, for example, will require highercommunications specifications than othersectors. It’s not just infrastructure either:applications and protocols are needed tocreate a comprehensive healthcare systemin Dubai, answering the requirements ofthe teaching hospital and ultimatelyenabling the linking of all healthcareinformation systems – clinics, hospitals,pharmacies etc – to the central HealthCity ‘hub’.

Then there are the cultural challengesimplicit in extending communicationslinks. Schools don’t want to lose controlover communication between students ofdifferent gender, for example. In all thesecases, the first step is to research andidentify what the customers want andneed. Broadband may be drivinginfrastructure development in manymodern cities, but that doesn’t meanyou can take your eye off the basicquestion: what do people actually want to use it for?

It’s also important to define your own rolein this process. Our approach is to get theexperts to define the needs and thespecifications and to carry out the work;we’re only the project managers. After all,we’re not doctors (for example) andshouldn’t pretend that we are.

From vision to reality

These strategies have borne fruit: ourprojects have been extremely successful.

Today, DIC is home to over 500 companiesincluding Microsoft, Hewlett Packard,

Oracle, IBM, Cisco, Compaq and Ariba.We allow 100% foreign ownership andsales. Furthermore, company earnings andprivate income are exempt from any formof taxation. DIC is already cash-positive,although not profitable yet, but this islargely an issue of how we treatdepreciation – there are obviously vastinfrastructure costs.

Dubai Media City is already home to over550 media companies including keyplayers such as CNN, Reuters, SonyBroadcast & Professional, McGraw HillPublishing, Bertelsmann and MBC.Regional companies and new start-upssupplement the mix and there’s a growingtalent pool offering creative skills andservices to the larger companies. MediaCity is cash-positive and already looking atlaunching a second project: Film City – aHollywood of our own.

Dubai Knowledge Village launched in thefourth quarter of 2003. It's become hometo a broad range of education andtraining operations, ranging from majorinternational universities, such as the USPurdue University with large, on-campusfacilities, to independent, freelancetrainers operating out of fully servicedbusiness centres.

Dubai Health Care City will take longer toreach profit. This is because the healthsector has demanded a differentapproach. DHCC operates in both theacademic research and healthcare servicearenas. We feel that we have to subsidisethe former while allowing the privatesector to develop the latter – andtherefore to take the profit. This isn’t aproblem for us: any economy that aspiresto global status needs to invest a

Dubai Dubai

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The rule of law

Secondly, it’s forced us to introduce newstatutory frameworks – especially wherefinance and health are concerned. Thereare numerous issues that can beoverlooked – the role of intellectualproperty law in healthcare, for example,where companies are investing heavily inIP research and development.

The lessons we’ve learned here areprincipally that you can’t do it all at once.You have to focus on one sector and mapit out carefully. Every new regulation youintroduce is going to impact on thecountry and the region as a whole. Whenyou’re operating subsidies at the levelrequired for these sorts of projects,statutory influence is mandatory to avoiddestabilising niche economic sectors:you’re not simply managing projects atthis scale; you’re also macro-managing theeconomy as a whole. The critical successfactor here is leadership – you have to stayon top of everything – and you need to beable to win vital support and commitmentto keep going.

The human factor

Next, we’ve had to deal with humanfactors, such as how the people at the topshould be incentivised to boostperformance. This is an importantexample, because each cluster is totallyindependent, responsible for its ownsuccess and managed, in effect, like a company.

At a higher level, there’s a council ofministers or executive council, which iseffectively the corporate holding companywith all the cities as subsidiaries. Each

subsidiary has its own president andoperates as a separate business unit. Sojust as GE, for example, has its engine’s division, its plastics andchemicals, so Dubai has its Media City,Financial City and so on.

But you also need to be aware of thehuman element at the bottom of the pile.Where is the skills pool that is driving themachine? Personally, this is something Ithink about every day: from where are wegoing to get the talent? Right now, if yousat down and worked it out, we’d haveabout six projects for every individual!People are the issue, which is why wespend a lot of time in finding, grooming,mentoring and then pushing new young nationals.

Our educational strategy is an identicalproposition to Boston. It is not cluster-driven – any cluster structure emergesorganically from seed projects. Boston hasHarvard; it also has MIT, and that’s whatwe’re aiming for here. We’re expandingour facilities for those entering highschool and, at the other end of the scale,for postgraduates. We’re not dealing withthe 18-year-old age range, where there arevery significant costs involved. We want tolay the foundations with a good generaleducation, and then we’ll provide thespecialist finishing courses to take peopleinto work.

Making connections

Today, each city independently determinesits technology and connectivityrequirements but, going forward, weenvisage that all of these cities will be connected.

Their needs will be different, of course.You only have to think of something liketelemedicine to realise that the HealthCity, for example, will require highercommunications specifications than othersectors. It’s not just infrastructure either:applications and protocols are needed tocreate a comprehensive healthcare systemin Dubai, answering the requirements ofthe teaching hospital and ultimatelyenabling the linking of all healthcareinformation systems – clinics, hospitals,pharmacies etc – to the central HealthCity ‘hub’.

Then there are the cultural challengesimplicit in extending communicationslinks. Schools don’t want to lose controlover communication between students ofdifferent gender, for example. In all thesecases, the first step is to research andidentify what the customers want andneed. Broadband may be drivinginfrastructure development in manymodern cities, but that doesn’t meanyou can take your eye off the basicquestion: what do people actually want to use it for?

It’s also important to define your own rolein this process. Our approach is to get theexperts to define the needs and thespecifications and to carry out the work;we’re only the project managers. After all,we’re not doctors (for example) andshouldn’t pretend that we are.

From vision to reality

These strategies have borne fruit: ourprojects have been extremely successful.

Today, DIC is home to over 500 companiesincluding Microsoft, Hewlett Packard,

Oracle, IBM, Cisco, Compaq and Ariba.We allow 100% foreign ownership andsales. Furthermore, company earnings andprivate income are exempt from any formof taxation. DIC is already cash-positive,although not profitable yet, but this islargely an issue of how we treatdepreciation – there are obviously vastinfrastructure costs.

Dubai Media City is already home to over550 media companies including keyplayers such as CNN, Reuters, SonyBroadcast & Professional, McGraw HillPublishing, Bertelsmann and MBC.Regional companies and new start-upssupplement the mix and there’s a growingtalent pool offering creative skills andservices to the larger companies. MediaCity is cash-positive and already looking atlaunching a second project: Film City – aHollywood of our own.

Dubai Knowledge Village launched in thefourth quarter of 2003. It's become hometo a broad range of education andtraining operations, ranging from majorinternational universities, such as the USPurdue University with large, on-campusfacilities, to independent, freelancetrainers operating out of fully servicedbusiness centres.

Dubai Health Care City will take longer toreach profit. This is because the healthsector has demanded a differentapproach. DHCC operates in both theacademic research and healthcare servicearenas. We feel that we have to subsidisethe former while allowing the privatesector to develop the latter – andtherefore to take the profit. This isn’t aproblem for us: any economy that aspiresto global status needs to invest a

Dubai Dubai

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percentage of GDP in research.

The business model for DubaiInternational Financial City workspredominately through real estate. Wealso offer access to regional markets –Saudi, Bahrain, Kuwait etc. One of ourvalue propositions is our time zone. We have a six-and-a-half-hour slotbetween close of business in New Yorkand the start of trading in Asia – a very attractive proposition for financehouses and especially those involved inforeign exchange.

In the past, the main focus in the realestate market has been on taking profit.But there’s increasing focus on taking longterm revenue from real estate, viatourism, financial services, manufacturingand so on. If you look at a ten-yearbusiness plan for any of these cities, the first four are going to be focused on real estate revenue streams, butstrategic revenue streams kick in duringthe second half.

Revenues generated by a city from its realestate will not go to government: theyhelp to pay back the banks and boostinvestment in the value-added industriesthat the city needs to take it to the nextlevel. Dubai Internet City, for example, can pay back the bank and put moneyinto research in technology and telecoms,redefining itself as an alternative service provider.

Meanwhile, it’s onwards and upwards. InOctober 2003, Dubai announced theregion’s biggest tourism project yet –Dubailand – with an estimated investmentof more than Dh18 billion. Thegovernment intends to spend Dh2.6 billion

in the first phase to develop the project'sinfrastructure. The sky’s the limit.

Killer instincts

What have I learned during this period ofenormous growth and tremendously hardwork? The most important lesson, I think,has been to trust your instinct.

Articulate the vision, address theeconomies of scale, clusters,competitiveness of the region – then gowith what you know. Don’t keep askingconsultants: go for entrepreneurs, forpeople who get the things done. Plan,cost, manage – and then don’t letanything get in the way of executing theplan – ruthlessly. You want to think like ateam of mercenaries: go in, assassinate,and get out!

Dubai Dubai

Dubai Internet City

A strategic base for companiestargeting emerging markets in a vastregion extending from the Middle Eastto the Indian subcontinent, and Africato the CIS countries, covering 1.8 billion people with GDP $1.1 trillion.

Within a short span of time, a dynamicinternational community of ICTcompanies has established itself inDubai Internet City. These companiesrepresent a community of over 10,000knowledge workers. The cluster of ICTcompanies in Dubai Internet Citycomprise software development,business services, web based and e-commerce, consultancy, educationand training, sales and marketing, andback-office operations. DIC provides ascalable state-of-the-art technologyplatform that allows companieslooking to provide cost-effectiveBusiness Process Outsourcing (BPO)services, such as call centre operations,and easy access to these services.

Dubai Media City

The Media City provides an advancedinfrastructure and supportiveenvironment for media-relatedbusinesses to operate globally out ofDubai. The Media City brings to themedia community an advancedinfrastructure based upon a globalinterconnected network, linked bysatellites, computers, the internet,television, radio, journalism, cinemaand film production.

The Media City is already home to over600 media companies, including globalgiants such as CNN, Reuters, Sony

Broadcast & Professional, McGraw HillPublishing, Bertelsmann, and MBC,along with regional companies andnew start-ups. The interdependentmedia community also boasts agrowing talent pool that offers a rangeof creative skills. Currently, over 250freelance media professionals arebased in the City. As a free-zone entity,Dubai Media City allows companies100% company ownership along withcommercial benefits that include a 50-year tax exemption from personal,income and corporate taxes.

Dubai Knowledge Village

Knowledge Village aims to create a richecosystem for a variety oforganisations and individuals to createand disseminate knowledge.Knowledge Village provides a world-class learning infrastructure andenvironment for the development ofscholarship, education, training, ideas,creativity, innovation andentrepreneurial expertise.

Knowledge Village will be a catalyst forthe development of a strong andsustainable future, based on a wealthof knowledge – human resourcesrather than natural resources.Knowledge Village creates access tothis new culture of learning in threedistinct ways: firstly, by facilitatingaccess to high-quality learningopportunities – for all ages, careerstages and levels; secondly, throughthe wide diversity of areas of studiesavailable; thirdly, through the strong,close and diverse background andinteraction of learners at KnowledgeVillage – a global learning habitatwhere individual contact and

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percentage of GDP in research.

The business model for DubaiInternational Financial City workspredominately through real estate. Wealso offer access to regional markets –Saudi, Bahrain, Kuwait etc. One of ourvalue propositions is our time zone. We have a six-and-a-half-hour slotbetween close of business in New Yorkand the start of trading in Asia – a very attractive proposition for financehouses and especially those involved inforeign exchange.

In the past, the main focus in the realestate market has been on taking profit.But there’s increasing focus on taking longterm revenue from real estate, viatourism, financial services, manufacturingand so on. If you look at a ten-yearbusiness plan for any of these cities, the first four are going to be focused on real estate revenue streams, butstrategic revenue streams kick in duringthe second half.

Revenues generated by a city from its realestate will not go to government: theyhelp to pay back the banks and boostinvestment in the value-added industriesthat the city needs to take it to the nextlevel. Dubai Internet City, for example, can pay back the bank and put moneyinto research in technology and telecoms,redefining itself as an alternative service provider.

Meanwhile, it’s onwards and upwards. InOctober 2003, Dubai announced theregion’s biggest tourism project yet –Dubailand – with an estimated investmentof more than Dh18 billion. Thegovernment intends to spend Dh2.6 billion

in the first phase to develop the project'sinfrastructure. The sky’s the limit.

Killer instincts

What have I learned during this period ofenormous growth and tremendously hardwork? The most important lesson, I think,has been to trust your instinct.

Articulate the vision, address theeconomies of scale, clusters,competitiveness of the region – then gowith what you know. Don’t keep askingconsultants: go for entrepreneurs, forpeople who get the things done. Plan,cost, manage – and then don’t letanything get in the way of executing theplan – ruthlessly. You want to think like ateam of mercenaries: go in, assassinate,and get out!

Dubai Dubai

Dubai Internet City

A strategic base for companiestargeting emerging markets in a vastregion extending from the Middle Eastto the Indian subcontinent, and Africato the CIS countries, covering 1.8 billion people with GDP $1.1 trillion.

Within a short span of time, a dynamicinternational community of ICTcompanies has established itself inDubai Internet City. These companiesrepresent a community of over 10,000knowledge workers. The cluster of ICTcompanies in Dubai Internet Citycomprise software development,business services, web based and e-commerce, consultancy, educationand training, sales and marketing, andback-office operations. DIC provides ascalable state-of-the-art technologyplatform that allows companieslooking to provide cost-effectiveBusiness Process Outsourcing (BPO)services, such as call centre operations,and easy access to these services.

Dubai Media City

The Media City provides an advancedinfrastructure and supportiveenvironment for media-relatedbusinesses to operate globally out ofDubai. The Media City brings to themedia community an advancedinfrastructure based upon a globalinterconnected network, linked bysatellites, computers, the internet,television, radio, journalism, cinemaand film production.

The Media City is already home to over600 media companies, including globalgiants such as CNN, Reuters, Sony

Broadcast & Professional, McGraw HillPublishing, Bertelsmann, and MBC,along with regional companies andnew start-ups. The interdependentmedia community also boasts agrowing talent pool that offers a rangeof creative skills. Currently, over 250freelance media professionals arebased in the City. As a free-zone entity,Dubai Media City allows companies100% company ownership along withcommercial benefits that include a 50-year tax exemption from personal,income and corporate taxes.

Dubai Knowledge Village

Knowledge Village aims to create a richecosystem for a variety oforganisations and individuals to createand disseminate knowledge.Knowledge Village provides a world-class learning infrastructure andenvironment for the development ofscholarship, education, training, ideas,creativity, innovation andentrepreneurial expertise.

Knowledge Village will be a catalyst forthe development of a strong andsustainable future, based on a wealthof knowledge – human resourcesrather than natural resources.Knowledge Village creates access tothis new culture of learning in threedistinct ways: firstly, by facilitatingaccess to high-quality learningopportunities – for all ages, careerstages and levels; secondly, throughthe wide diversity of areas of studiesavailable; thirdly, through the strong,close and diverse background andinteraction of learners at KnowledgeVillage – a global learning habitatwhere individual contact and

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connectivity into global networks viatechnology are richly combined into aunique experience.

Dubailand

The government intends to spendDh2.6 billion in the first phase todevelop the project’s infrastructure,and with an estimated investment ofmore than Dh18 billion.

Dubai’s strategic plan is to add moredepth to the tourism sector andcontribute towards transforming thecity into one of the top touristdestinations internationally. The project will be built along EmiratesRoad, next to Nad Al Sheba, Al Qouzand Al Barsha, which will give it theadvantage of easy access from AbuDhabi, Dubai, Sharjah and theNorthern Emirates.

Dubailand will be completed by late2006 and expects to attract 15 milliontourists to Dubai by 2010.

Dubai Health Care City

The Dubai Health Care City (DHCC)initiative is to provide the highestquality of healthcare services tomedical care and wellness seekers fromthe region (comprised of the GCC,Indian Subcontinent, Northern Gulf,Central Asia, the Levant, North andEast Africa), by creating a world-classcluster of healthcare professionals andservice providers at the heart of Dubai.

DHCC aspires to provide state-of-the-art medical care services in selecteddisciplines that are relevant to thehealth problems facing the patients inthe region. The ‘core’ of the healthcare

cluster economy is a university medicalcomplex; consisting of a universityspecialty hospital, a post-graduatemedical school and nursing school, and a life science research centre. The combination of these threecomponents will enable Dubai toleapfrog to the forefront of regionalmedical practices, establishing aposition of regional leadership throughleading edge education and research,and thereby becoming a centre ofexcellence in global healthcare.

Dubai International FinanceCentre

Situated as a bridge between thefinancial centres of Europe and Asia,Dubai International Finance Centre(DIFC) is a platform for accessing thetrillion-dollar regional market. Dubai isbuilding its international financialcentre on four foundations:

The first is regulation and transparency,because a global finance centre of the 21st century has to be open and well regulated so that it is trusted by other jurisdictions andcompanies who locate within it,knowing their reputation is safe.Second is the creation of new financial capital markets, which willhelp bring prosperity to the entireregion. Financial capital moves towhere it is safest and best rewarded,so DIFC’s combination of totaltransparency and zero tax enableDubai to benefit from the global flight to quality. Third is, it’s a greatenvironment for people, and fourth isits stable political environment.

Dubai

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connectivity into global networks viatechnology are richly combined into aunique experience.

Dubailand

The government intends to spendDh2.6 billion in the first phase todevelop the project’s infrastructure,and with an estimated investment ofmore than Dh18 billion.

Dubai’s strategic plan is to add moredepth to the tourism sector andcontribute towards transforming thecity into one of the top touristdestinations internationally. The project will be built along EmiratesRoad, next to Nad Al Sheba, Al Qouzand Al Barsha, which will give it theadvantage of easy access from AbuDhabi, Dubai, Sharjah and theNorthern Emirates.

Dubailand will be completed by late2006 and expects to attract 15 milliontourists to Dubai by 2010.

Dubai Health Care City

The Dubai Health Care City (DHCC)initiative is to provide the highestquality of healthcare services tomedical care and wellness seekers fromthe region (comprised of the GCC,Indian Subcontinent, Northern Gulf,Central Asia, the Levant, North andEast Africa), by creating a world-classcluster of healthcare professionals andservice providers at the heart of Dubai.

DHCC aspires to provide state-of-the-art medical care services in selecteddisciplines that are relevant to thehealth problems facing the patients inthe region. The ‘core’ of the healthcare

cluster economy is a university medicalcomplex; consisting of a universityspecialty hospital, a post-graduatemedical school and nursing school, and a life science research centre. The combination of these threecomponents will enable Dubai toleapfrog to the forefront of regionalmedical practices, establishing aposition of regional leadership throughleading edge education and research,and thereby becoming a centre ofexcellence in global healthcare.

Dubai International FinanceCentre

Situated as a bridge between thefinancial centres of Europe and Asia,Dubai International Finance Centre(DIFC) is a platform for accessing thetrillion-dollar regional market. Dubai isbuilding its international financialcentre on four foundations:

The first is regulation and transparency,because a global finance centre of the 21st century has to be open and well regulated so that it is trusted by other jurisdictions andcompanies who locate within it,knowing their reputation is safe.Second is the creation of new financial capital markets, which willhelp bring prosperity to the entireregion. Financial capital moves towhere it is safest and best rewarded,so DIFC’s combination of totaltransparency and zero tax enableDubai to benefit from the global flight to quality. Third is, it’s a greatenvironment for people, and fourth isits stable political environment.

Dubai

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BarcelonaJoan Clos, Mayor of Barcelona

arcelona, one of Europe’s majorcities, is the economic, culturaland administrative capital ofCatalonia, an autonomous region

in the northeast of Spain on theMediterranean coast. It is sixth in Europein population density and fifth in industrialconcentration. The metropolitan area ofBarcelona traditionally had a highproportion of industrial activity as part ofits total economic activity. Today, the cityand its surrounding area are a significanteconomic centre in terms of newtechnologies and advanced services withinthe framework of the information society.

Our aim is to transform Barcelona into agreat city, where the knowledge economycan develop out of the dense urbannucleus that is our city. The new EUpolicies that will increase the fundsavailable for research and knowledge offerus a great opportunity to move forward.

We are known as a city that produces andexports medium-high-tech goods. ICTmanufacturers have increased exportsalmost fourfold since 1993 and Barcelona has become the principal export base in Spain.

More important is the capacity of the‘New Technologies’ to bring governmentcloser to our citizens and to createtransparency in the city management. Wehave experience in citizen networks. The

neighbourhood portals have createddebate, because they are not only newsportals but also interchange platformswithin the community. For example, whenan urban city planning reform is launched,the community can air their views – thedialogue itself is a tool for the planners inthe decision-making process. Thesewebsites work in the majority of theBarcelona districts and have increasingcitizen participation.

Barcelona City Council is moving towardse-government, using the internet as a toolto achieve the following key strategicobjectives:

• Rethinking and improving internal management

• Enhancing and deepening commitments to citizens

• Developing a participatory strategy for the city

At present, the data network of BarcelonaCity Council is made up of four clearlydistinct areas:

• Corporate network• Access network • Extranet• Internet

The official website of Barcelona CityCouncil provides access to a broad range

Bof information and services. Barcelona is aEuropean city with a high number oftransactional services. The site displays itscontents in three languages – Catalan,Spanish and English – and providesinformation for residents, companies andtourists. The site and its services have wonseveral awards: third prize in Design in theEuropean E-City Awards (2002), first prizeof the Auna Foundation (2002), theStockholm Challenge Award (2002), and itwas also a finalist in the World TechnologyAwards (2002).

Barcelona City Council has broadexperience participating in Europeanprojects: Dalí, Gala, Exe, NetForNets,Permis, Gaudi, Eurociti, Elda and others. It also belongs to large networks of citiessuch as TeleCities, and belongs to big citynetworks (currently holding thepresidency), including EuroCities,Metropolis, Major Cities of Europe and ELANET.

The broadband city

In order to explain the development ofbroadband in Barcelona, you need tounderstand the setting in which it hastaken shape. This essay first describes the demographic context, and then thesocio-economic context.

According to the latest data from studies

by Barcelona City Council (Ómnibus, June2003), 46.5 per cent of the city’s homesare connected to the internet. That meansthat nearly one in every two Barcelonahomes is connected to the net. Of thisgroup, 37.8 per cent has a broadbandconnection at home, and the last quarterhas seen swift growth in DSL connections,a technology that is replacing thetraditional telephone line, along with slowbut steady growth in connections by cable.

Compared to the Scandinavian countriesor Southeast Asia, these figures are low,but one must bear in mind ourdemographic context.

In Spain as a whole, 27.4% of thepopulation is connected to the internet,while the figure is 32% in Catalonia,according to the latest EGM surveyperformed by AIMC. However, it must beremembered that this survey includes allinternet users, not only those with homeconnections. That is, there is a differentialof at least 20 points between Barcelona’sgeographic surroundings and Barcelonaitself. The same trends can be seen inbroadband connections.

Furthermore, certain socio-economicfactors have hindered the growth ofbroadband in the city. Elsewhere in theworld, broadband developed in the

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BarcelonaJoan Clos, Mayor of Barcelona

arcelona, one of Europe’s majorcities, is the economic, culturaland administrative capital ofCatalonia, an autonomous region

in the northeast of Spain on theMediterranean coast. It is sixth in Europein population density and fifth in industrialconcentration. The metropolitan area ofBarcelona traditionally had a highproportion of industrial activity as part ofits total economic activity. Today, the cityand its surrounding area are a significanteconomic centre in terms of newtechnologies and advanced services withinthe framework of the information society.

Our aim is to transform Barcelona into agreat city, where the knowledge economycan develop out of the dense urbannucleus that is our city. The new EUpolicies that will increase the fundsavailable for research and knowledge offerus a great opportunity to move forward.

We are known as a city that produces andexports medium-high-tech goods. ICTmanufacturers have increased exportsalmost fourfold since 1993 and Barcelona has become the principal export base in Spain.

More important is the capacity of the‘New Technologies’ to bring governmentcloser to our citizens and to createtransparency in the city management. Wehave experience in citizen networks. The

neighbourhood portals have createddebate, because they are not only newsportals but also interchange platformswithin the community. For example, whenan urban city planning reform is launched,the community can air their views – thedialogue itself is a tool for the planners inthe decision-making process. Thesewebsites work in the majority of theBarcelona districts and have increasingcitizen participation.

Barcelona City Council is moving towardse-government, using the internet as a toolto achieve the following key strategicobjectives:

• Rethinking and improving internal management

• Enhancing and deepening commitments to citizens

• Developing a participatory strategy for the city

At present, the data network of BarcelonaCity Council is made up of four clearlydistinct areas:

• Corporate network• Access network • Extranet• Internet

The official website of Barcelona CityCouncil provides access to a broad range

Bof information and services. Barcelona is aEuropean city with a high number oftransactional services. The site displays itscontents in three languages – Catalan,Spanish and English – and providesinformation for residents, companies andtourists. The site and its services have wonseveral awards: third prize in Design in theEuropean E-City Awards (2002), first prizeof the Auna Foundation (2002), theStockholm Challenge Award (2002), and itwas also a finalist in the World TechnologyAwards (2002).

Barcelona City Council has broadexperience participating in Europeanprojects: Dalí, Gala, Exe, NetForNets,Permis, Gaudi, Eurociti, Elda and others. It also belongs to large networks of citiessuch as TeleCities, and belongs to big citynetworks (currently holding thepresidency), including EuroCities,Metropolis, Major Cities of Europe and ELANET.

The broadband city

In order to explain the development ofbroadband in Barcelona, you need tounderstand the setting in which it hastaken shape. This essay first describes the demographic context, and then thesocio-economic context.

According to the latest data from studies

by Barcelona City Council (Ómnibus, June2003), 46.5 per cent of the city’s homesare connected to the internet. That meansthat nearly one in every two Barcelonahomes is connected to the net. Of thisgroup, 37.8 per cent has a broadbandconnection at home, and the last quarterhas seen swift growth in DSL connections,a technology that is replacing thetraditional telephone line, along with slowbut steady growth in connections by cable.

Compared to the Scandinavian countriesor Southeast Asia, these figures are low,but one must bear in mind ourdemographic context.

In Spain as a whole, 27.4% of thepopulation is connected to the internet,while the figure is 32% in Catalonia,according to the latest EGM surveyperformed by AIMC. However, it must beremembered that this survey includes allinternet users, not only those with homeconnections. That is, there is a differentialof at least 20 points between Barcelona’sgeographic surroundings and Barcelonaitself. The same trends can be seen inbroadband connections.

Furthermore, certain socio-economicfactors have hindered the growth ofbroadband in the city. Elsewhere in theworld, broadband developed in the

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framework of a pre-existing cablenetwork, which had been created,extended, operated and made profitablein the 80s and 90s for television.However, in Spain, digital televisionentered people’s homes by satellite rather than by cable, and satellitetechnology has not yet made an effective leap to bi-directional datatransmission – a necessary condition for broadband internet.

Barcelona City Council has faced up to these challenges with the longtermvision of providing better services tocitizens, as broadband is not an end initself but rather a tool for improving theproductivity, and therefore thecompetitiveness, of the city. And most of all for achieving internal changes in the council itself. As we have said, the aim is always to provide citizens withbetter services.

For instance, for some time now the CityCouncil has been broadcasting live online,via streaming video, all municipal plenarysessions. Users can also see all pastplenary sessions on demand through anindex of plenums by subject. Here, thelimited spread of broadband in the cityhas prevented provision of more advancedservices to citizens.

• The Broad Services City: the challenge of transforming administration throughbroadband

• Multi-Channel Integrated Service System (MISS): e-government beyond an Internet portal

• The creation of a 155 Mbit/s high-speed internal network for the City Council has enabled the development and implementation of the Multi-

Channel Integrated Service System (MISS).

The system, which serves more than 18 million requests a year, centrally manages most of the information andservices going both from the City Councilto citizens and from citizens to the City Council.

MISS is based on internet technology, andit allows for sharing the same informationthrough three channels: the websitewww.bcn.es, the telephone informationservice and the public information offices.

In order to develop the MISS, intranet andintegrated internal services, we have hadto create a powerful internal broadbandnetwork to support the information flowsrequired in an information architecture ofthis type.

Data network

• Corporate network• Access network• Extranet• Internet

The Corporate network is a privatenetwork that links together the 123centres of the City Council.

The Access network ensures theconnectivity of centres with lowerbroadband requirements to City Councilapplications by means of a channelbetween the centre and the CPD/IMI. It isdefined on the basis of public networksand configured like a VPN. There are fourmain access technologies: frame-relay,ADSL, XDSI-XTC and GPRS.

Most of the equipment supporting thenetwork is Cisco. All the networks use acombination of Radius-LDAP as theauthentication system of entering users.

For its part, the Extranet provides a linkbetween external companies and the CityCouncil. It is based on point-to-point linksthat originate in the City Council and havean endpoint in each of the companiesinvolved. The technology of the Extranet isGigabit Ethernet and is supported byoperator links. The system operates withCISCO 2948 and 3512 units.

The corporate Internet provides aninternet connection to the internalnetwork as well as to the public internetservices available.

The City Council has its own public IPaddress, as it is constituted as an LIR.

The Multi-Channel Integrated ServiceSystem helps improve people’s quality oflife by offering those without internetaccess the chance to benefit from thesame information and the same servicesprovided by the City Council on theinternet.

Moreover, the MISS structure is thetechnological framework that allows us toenlarge our internal network and make it

more complex, thereby being capable ofincluding citizens, other public institutions,private companies and other actors in the city.

Towards the universal availability ofpublic services and information

Public administrations must takeadvantage of the development of wirelesstechnologies to involve citizens by givingthem a greater role in managementprocesses, while reducing costs in servicemanagement. Above all, the mostimportant goal is to improve bothprovision of services to the public andcitizens’ quality of life.

One of the most important challenges ofm-government in meeting this aim is toeffectively combine secure methods ofidentification and easy-to-use applicationsso as to ensure citizen-accessibility.

The following are some good examples ofthe possibilities of m-government:automatic question-and-answer services(the voice portal, currently underdevelopment in Barcelona, based on voice-recognition and web-semantictechnologies); reminders of appointmentswith the administration; sending of publictransport timetables depending onlocation; use of multimedia messages(MMS) as instruments of publicparticipation; payment of public parkingtolls; tickets for public transport;information about public employmentvacancies; services in museums and othertourist attractions; and an endless listlimited only by our imagination.

Barcelona Barcelona

Public administrations must takeadvantage of the development ofwireless technologies to involvecitizens by giving them a greaterrole in management processes

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framework of a pre-existing cablenetwork, which had been created,extended, operated and made profitablein the 80s and 90s for television.However, in Spain, digital televisionentered people’s homes by satellite rather than by cable, and satellitetechnology has not yet made an effective leap to bi-directional datatransmission – a necessary condition for broadband internet.

Barcelona City Council has faced up to these challenges with the longtermvision of providing better services tocitizens, as broadband is not an end initself but rather a tool for improving theproductivity, and therefore thecompetitiveness, of the city. And most of all for achieving internal changes in the council itself. As we have said, the aim is always to provide citizens withbetter services.

For instance, for some time now the CityCouncil has been broadcasting live online,via streaming video, all municipal plenarysessions. Users can also see all pastplenary sessions on demand through anindex of plenums by subject. Here, thelimited spread of broadband in the cityhas prevented provision of more advancedservices to citizens.

• The Broad Services City: the challenge of transforming administration throughbroadband

• Multi-Channel Integrated Service System (MISS): e-government beyond an Internet portal

• The creation of a 155 Mbit/s high-speed internal network for the City Council has enabled the development and implementation of the Multi-

Channel Integrated Service System (MISS).

The system, which serves more than 18 million requests a year, centrally manages most of the information andservices going both from the City Councilto citizens and from citizens to the City Council.

MISS is based on internet technology, andit allows for sharing the same informationthrough three channels: the websitewww.bcn.es, the telephone informationservice and the public information offices.

In order to develop the MISS, intranet andintegrated internal services, we have hadto create a powerful internal broadbandnetwork to support the information flowsrequired in an information architecture ofthis type.

Data network

• Corporate network• Access network• Extranet• Internet

The Corporate network is a privatenetwork that links together the 123centres of the City Council.

The Access network ensures theconnectivity of centres with lowerbroadband requirements to City Councilapplications by means of a channelbetween the centre and the CPD/IMI. It isdefined on the basis of public networksand configured like a VPN. There are fourmain access technologies: frame-relay,ADSL, XDSI-XTC and GPRS.

Most of the equipment supporting thenetwork is Cisco. All the networks use acombination of Radius-LDAP as theauthentication system of entering users.

For its part, the Extranet provides a linkbetween external companies and the CityCouncil. It is based on point-to-point linksthat originate in the City Council and havean endpoint in each of the companiesinvolved. The technology of the Extranet isGigabit Ethernet and is supported byoperator links. The system operates withCISCO 2948 and 3512 units.

The corporate Internet provides aninternet connection to the internalnetwork as well as to the public internetservices available.

The City Council has its own public IPaddress, as it is constituted as an LIR.

The Multi-Channel Integrated ServiceSystem helps improve people’s quality oflife by offering those without internetaccess the chance to benefit from thesame information and the same servicesprovided by the City Council on theinternet.

Moreover, the MISS structure is thetechnological framework that allows us toenlarge our internal network and make it

more complex, thereby being capable ofincluding citizens, other public institutions,private companies and other actors in the city.

Towards the universal availability ofpublic services and information

Public administrations must takeadvantage of the development of wirelesstechnologies to involve citizens by givingthem a greater role in managementprocesses, while reducing costs in servicemanagement. Above all, the mostimportant goal is to improve bothprovision of services to the public andcitizens’ quality of life.

One of the most important challenges ofm-government in meeting this aim is toeffectively combine secure methods ofidentification and easy-to-use applicationsso as to ensure citizen-accessibility.

The following are some good examples ofthe possibilities of m-government:automatic question-and-answer services(the voice portal, currently underdevelopment in Barcelona, based on voice-recognition and web-semantictechnologies); reminders of appointmentswith the administration; sending of publictransport timetables depending onlocation; use of multimedia messages(MMS) as instruments of publicparticipation; payment of public parkingtolls; tickets for public transport;information about public employmentvacancies; services in museums and othertourist attractions; and an endless listlimited only by our imagination.

Barcelona Barcelona

Public administrations must takeadvantage of the development ofwireless technologies to involvecitizens by giving them a greaterrole in management processes

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Barcelona is already seeking to design aneffective model of global m-governmentthat would meet all these challenges andplace all these actors at the service of the city.

This is because m-government is not onlya phase of e-government, but areinvention of public services from thestandpoint, more than ever, of the citizen.

The broadminded city: towards e-governance

According to the United Nations, theconcept of governance must beunderstood as a process. In this process,institutions, organisations and citizensorganise to make decisions througheffective mechanisms of transparency.

Thus, and continuing with the definitionof the United Nations, e-governance is the use by the public sector of the mostinnovative information andcommunication technologies, such asinternet, to provide citizens with betterservices, more reliable information andmore knowledge in order to facilitateaccess to governing processes andpromote citizen participation.’ It is,indeed, an unequivocal commitment bydecision-makers to strengthen thecollaboration between private citizens andthe public sector.

The introduction and acceptance of e-governance is the path towards ensuringthat each citizen has the same right to bea part of decision-making processes thataffect them directly or indirectly, and toinfluence the process so that it canimprove his or her conditions and quality

of life.

In short, e-governance helps citizens takea more proactive role in deciding whatkind of services they want and throughwhat type of structure they wish to receive them.

Two emblematic projects

• 22@ Bcn• The Universal Forum of Cultures 2004

Currently, two projects are running inBarcelona that are examples of thecommitment of the city to the socio-economic, urban and internationalposition of the city in the future. At the same time, these two projects show our belief in technology as anindispensable element of building a justand equal society.

22@ Bcn

Barcelona has set itself a new goal: to fullyintegrate itself into the new technologicalrevolution and face the challenge of theinformation economy. The Poblenou, theleading nucleus of industrialisation inSpain in the 19th century, is striving to bethe main technological platform forBarcelona and Catalonia.

Real, living Barcelona, as a labour marketthat includes nearly two million jobs and a population of 4.3 million, is thesixth leading metropolitan region of the EU demographically, exporting22.5% of Spain’s industrial and non-industrial goods.

The network of metropolitan cities, withBarcelona in the lead, is quickly shifting itsproductive specialisation: nearly two-thirdsof its exports today are goods with high ormiddle-high technological intensity. Itsfuture competitiveness critically dependson its capacity to integrate newinformation and communicationtechnologies and to strengthenknowledge-dense tertiary or industrialactivities. The city of Barcelona acts asboth the main centre of services to amulti-nucleus metropolitan area and ascapital of Catalonia. To preserve its leadingrole economically and professionally, itmust deepen its specialisation inknowledge-dense activities, as these arealso employment-dense activities.

Barcelona’s traditional economic andurban planning strategies were based onmanufacturing as the dominant economicactivity, and on the premise that zoning inthe central municipality of the metropoliswas needed to preserve manufacturing.The transition from an industrialmanufacturing model to one based on theinformation society has entailed in-depthrevisions of urban regulations of the oldindustrial areas of the Poblenou district(zone 22a of the General MetropolitanPlan of 1976).

The updating of the regulatory frameworkhas taken the form of the Modification ofthe General Metropolitan Plan for therenewal of the industrial areas ofPoblenou (MPGM), approved 27 July 2000,which has generated conditionsfavourable to stimulating and attractingadvanced economic activities. Theseactivities demand a central location, goodinfrastructures and a quality urbanenvironment.

The Modification of the PGM changes thecharacteristics of the urban planningregulations of the industrial area,replacing the old urban zoningqualification 22a with the modern 22@:

• It regulates the uses and density of construction

• It provides incentives for conversion to attract knowledge-dense activities

• It creates a new equipment qualification called 7@, which will clear the way for building information infrastructures

• It defines new standards of urban development and – in the Special Plan for Infrastructures – provides for the complete urban development of the area

• It defines the obligations of landowners and determines the forms and mechanisms for derivative planning – Special Plans – in order to enable conversion

Throughout its execution over 15 to 20years, the project will allow for thebuilding of 3,200,000 m2 of new and used buildings for productive uses,between 3,500 and 4,000 new housingunits under a regime of official

Barcelona Barcelona

In short, e-governance helpscitizens take a more proactive role in deciding what kind ofservices they want and throughwhat kind of structure they wishto receive them.

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Barcelona is already seeking to design aneffective model of global m-governmentthat would meet all these challenges andplace all these actors at the service of the city.

This is because m-government is not onlya phase of e-government, but areinvention of public services from thestandpoint, more than ever, of the citizen.

The broadminded city: towards e-governance

According to the United Nations, theconcept of governance must beunderstood as a process. In this process,institutions, organisations and citizensorganise to make decisions througheffective mechanisms of transparency.

Thus, and continuing with the definitionof the United Nations, e-governance is the use by the public sector of the mostinnovative information andcommunication technologies, such asinternet, to provide citizens with betterservices, more reliable information andmore knowledge in order to facilitateaccess to governing processes andpromote citizen participation.’ It is,indeed, an unequivocal commitment bydecision-makers to strengthen thecollaboration between private citizens andthe public sector.

The introduction and acceptance of e-governance is the path towards ensuringthat each citizen has the same right to bea part of decision-making processes thataffect them directly or indirectly, and toinfluence the process so that it canimprove his or her conditions and quality

of life.

In short, e-governance helps citizens takea more proactive role in deciding whatkind of services they want and throughwhat type of structure they wish to receive them.

Two emblematic projects

• 22@ Bcn• The Universal Forum of Cultures 2004

Currently, two projects are running inBarcelona that are examples of thecommitment of the city to the socio-economic, urban and internationalposition of the city in the future. At the same time, these two projects show our belief in technology as anindispensable element of building a justand equal society.

22@ Bcn

Barcelona has set itself a new goal: to fullyintegrate itself into the new technologicalrevolution and face the challenge of theinformation economy. The Poblenou, theleading nucleus of industrialisation inSpain in the 19th century, is striving to bethe main technological platform forBarcelona and Catalonia.

Real, living Barcelona, as a labour marketthat includes nearly two million jobs and a population of 4.3 million, is thesixth leading metropolitan region of the EU demographically, exporting22.5% of Spain’s industrial and non-industrial goods.

The network of metropolitan cities, withBarcelona in the lead, is quickly shifting itsproductive specialisation: nearly two-thirdsof its exports today are goods with high ormiddle-high technological intensity. Itsfuture competitiveness critically dependson its capacity to integrate newinformation and communicationtechnologies and to strengthenknowledge-dense tertiary or industrialactivities. The city of Barcelona acts asboth the main centre of services to amulti-nucleus metropolitan area and ascapital of Catalonia. To preserve its leadingrole economically and professionally, itmust deepen its specialisation inknowledge-dense activities, as these arealso employment-dense activities.

Barcelona’s traditional economic andurban planning strategies were based onmanufacturing as the dominant economicactivity, and on the premise that zoning inthe central municipality of the metropoliswas needed to preserve manufacturing.The transition from an industrialmanufacturing model to one based on theinformation society has entailed in-depthrevisions of urban regulations of the oldindustrial areas of the Poblenou district(zone 22a of the General MetropolitanPlan of 1976).

The updating of the regulatory frameworkhas taken the form of the Modification ofthe General Metropolitan Plan for therenewal of the industrial areas ofPoblenou (MPGM), approved 27 July 2000,which has generated conditionsfavourable to stimulating and attractingadvanced economic activities. Theseactivities demand a central location, goodinfrastructures and a quality urbanenvironment.

The Modification of the PGM changes thecharacteristics of the urban planningregulations of the industrial area,replacing the old urban zoningqualification 22a with the modern 22@:

• It regulates the uses and density of construction

• It provides incentives for conversion to attract knowledge-dense activities

• It creates a new equipment qualification called 7@, which will clear the way for building information infrastructures

• It defines new standards of urban development and – in the Special Plan for Infrastructures – provides for the complete urban development of the area

• It defines the obligations of landowners and determines the forms and mechanisms for derivative planning – Special Plans – in order to enable conversion

Throughout its execution over 15 to 20years, the project will allow for thebuilding of 3,200,000 m2 of new and used buildings for productive uses,between 3,500 and 4,000 new housingunits under a regime of official

Barcelona Barcelona

In short, e-governance helpscitizens take a more proactive role in deciding what kind ofservices they want and throughwhat kind of structure they wishto receive them.

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subsidisation, the freeing of some 220,000 m2 of land for new facilities and garden areas, and for an increase of 100,000 to 130,000 jobs in the area.

Forum 2004

Barcelona is starting the innovativeUniversal Forum of Cultures in 2004. Thisis a new type of event with aninternational dimension, where the cityaims to provide a space in which to reflectupon and experiment with the mostimportant cultural and social conflictsfaced by the world in the 21st century. Itwill be held from 9 May to 26 September,and will be structured around threethemes: cultural diversity, sustainabledevelopment and the conditions of peace.

Knowledge of other cultures is essential toengaging in constructive dialoguebetween peoples. Such knowledge entailsreflection upon the commonalities of allhuman beings as well as their differences.To the extent that we are able to conceivedifference as enrichment and a commonheritage, not an obstacle, we will be ableto reduce tensions and turn them into apositive force.

Today, it is more urgent than ever to findforms of growth that respect naturalresources and conserve them for the goodof all, particularly for future generations.It is important to understand sustainabilityas a concept that goes beyond ecology,and also as a factor that enables creatingconditions for coexistence, dialoguebetween peoples and peace.

The creation of a culture of peace must be based, most of all, on respect for othercultures, social and political justice,

safeguarding of human rights and formsof living in harmony with theenvironment. These elements, amongothers, are crucial for forging conditionsthat are more favourable to progress andhuman development. Barcelona iscommitted to a future where a stablepeace means much more than absence of conflict.

Barcelona

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subsidisation, the freeing of some 220,000 m2 of land for new facilities and garden areas, and for an increase of 100,000 to 130,000 jobs in the area.

Forum 2004

Barcelona is starting the innovativeUniversal Forum of Cultures in 2004. Thisis a new type of event with aninternational dimension, where the cityaims to provide a space in which to reflectupon and experiment with the mostimportant cultural and social conflictsfaced by the world in the 21st century. Itwill be held from 9 May to 26 September,and will be structured around threethemes: cultural diversity, sustainabledevelopment and the conditions of peace.

Knowledge of other cultures is essential toengaging in constructive dialoguebetween peoples. Such knowledge entailsreflection upon the commonalities of allhuman beings as well as their differences.To the extent that we are able to conceivedifference as enrichment and a commonheritage, not an obstacle, we will be ableto reduce tensions and turn them into apositive force.

Today, it is more urgent than ever to findforms of growth that respect naturalresources and conserve them for the goodof all, particularly for future generations.It is important to understand sustainabilityas a concept that goes beyond ecology,and also as a factor that enables creatingconditions for coexistence, dialoguebetween peoples and peace.

The creation of a culture of peace must be based, most of all, on respect for othercultures, social and political justice,

safeguarding of human rights and formsof living in harmony with theenvironment. These elements, amongothers, are crucial for forging conditionsthat are more favourable to progress andhuman development. Barcelona iscommitted to a future where a stablepeace means much more than absence of conflict.

Barcelona

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New York By Michael R Bloomberg, Mayor of the City of New York

itizen Service – the concept ofgovernment agencies providingworld-class service to its citizens– is a major goal for my

administration. Over the past 20 months,we have focused our attention not only onbalancing the budget, improving ourschools and keeping crime down, but alsoon improving service delivery whereverpossible. Technology is a driving force inproviding better Citizen Service to all NewYorkers. Instead of paper-based systemsthat inherently make it difficult, costly andtime-consuming to share information, wehave made an aggressive push to drivemore applications and functions to theinternet (or other digital mediums) wherethe information can be quickly shared anddistributed to the parties that need it.Over this period, there is no question thatNew York City has become more efficient,innovative, technologically adept, andcitizen service-friendly.

During the current fiscal crisis, we cannotafford to operate at anything less than fullefficiency. In business, we are judged byperformance, not by how much we spend.Government should also be judged by thesame standard. Cutting $2.3 billion fromthe budget does not mean we cannotprovide good or improved services to thepublic, and that is exactly what we havedone this year. From using technology toimproving citizen service, to cutting intothe city bureaucracy of cars and permits,

we are streamlining government anddoing better with less.

New York City is at the forefront oftechnological innovation in municipalgovernment. From our 311 Citizen ServiceHotline, to digitising 911 emergencyresponse calls, New York City continues todeploy technology to every agency to helpthem fulfil their goals.

Below is a sampling of the differentprogrammes New York City has underwayand how we are using them.

311 Citizen Service Hotline

On March 9 2003, the 311 Citizen ServiceHotline went online. Before 311, everytime the city announced a newprogramme or service, there was always anew number attached to that programmeor service. By the time I took office, therewere 11 pages of telephone numbers inthe phone book listing different ways NewYorkers could contact their government.Whenever New Yorkers had to contacttheir government, they had to be a near-expert in municipal government tofind the right office (for instance, the FireDepartment doesn’t repair broken firehydrants, the Department ofEnvironmental Protection does). 311changes all of that. Now New Yorkers onlyneed to remember two numbers whencontacting their city government – 911 for

Cemergencies and 311 for everything else.If you want to report a broken streetlight,find out if you qualify for food stamps, oreven report graffiti, all you need to do isdial 311 (or 212-NEW YORK if you areoutside New York).

In five months we have already receivedtwo million calls, and call volume ispicking up every day (nearly 20,000 callscome into 311 each day). Clearly,providing easy access to city services is abig hit with New Yorkers.

Using 311 technology, for the first timethe cty can prevent problems before theyarise. How can we do this? For instance,we can map all double-parked carcomplaints, noise complaints, and allestablishments with liquor licences fromthe State of New York. We can use thisdata to ascertain if some of these double-parked car complaints and noisecomplaints are coming from a club or bar,and try to prevent the problem fromarising again.

311 represents a major achievement of myadministration. Not only did weconsolidate 12 call centres (eventually, all40+ city call centres will be rolled into311), but we now have sophisticated toolsto measure our performance inresponding to requests. 311 affects everycity agency in New York and has helped all

of them conduct their business moreefficiently and with better citizen service.

Digitising x-rays

In November 2002, the Health HospitalsCorporation (HHC) completed theinstallation of Picture ArchivingCommunications Systems (PACS) at allHHC facilities. Each year, PACSelectronically stores digital x-ray imagesfor one million radiology cases, replacingthe use of outmoded and cumbersome x-ray film. Prior to the system-wideinstallation of PACS, it took 24 to 48 hoursto access almost every radiology image.With PACS, every image is available withinfour minutes. Using PACS, a patient’smedical team can review the digital x-raysfrom virtually any location over secureinternet gateways 24 hours a day, sevendays a week, consult on treatment optionsfaster and more efficiently, and maximisethe productivity of scarce radiology andmedical expertise. Digital storage furtherimproves patient care by allowing for easycomparison of images over time, and byproviding detailed and accuratemagnifications of images.

The programme saves doctors’ time andhospitals’ money – $1 million at Elmhurstalone. In fact, instead of having aradiologist at all times at both ElmhurstHospital Center and the Queens Hospital

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New York By Michael R Bloomberg, Mayor of the City of New York

itizen Service – the concept ofgovernment agencies providingworld-class service to its citizens– is a major goal for my

administration. Over the past 20 months,we have focused our attention not only onbalancing the budget, improving ourschools and keeping crime down, but alsoon improving service delivery whereverpossible. Technology is a driving force inproviding better Citizen Service to all NewYorkers. Instead of paper-based systemsthat inherently make it difficult, costly andtime-consuming to share information, wehave made an aggressive push to drivemore applications and functions to theinternet (or other digital mediums) wherethe information can be quickly shared anddistributed to the parties that need it.Over this period, there is no question thatNew York City has become more efficient,innovative, technologically adept, andcitizen service-friendly.

During the current fiscal crisis, we cannotafford to operate at anything less than fullefficiency. In business, we are judged byperformance, not by how much we spend.Government should also be judged by thesame standard. Cutting $2.3 billion fromthe budget does not mean we cannotprovide good or improved services to thepublic, and that is exactly what we havedone this year. From using technology toimproving citizen service, to cutting intothe city bureaucracy of cars and permits,

we are streamlining government anddoing better with less.

New York City is at the forefront oftechnological innovation in municipalgovernment. From our 311 Citizen ServiceHotline, to digitising 911 emergencyresponse calls, New York City continues todeploy technology to every agency to helpthem fulfil their goals.

Below is a sampling of the differentprogrammes New York City has underwayand how we are using them.

311 Citizen Service Hotline

On March 9 2003, the 311 Citizen ServiceHotline went online. Before 311, everytime the city announced a newprogramme or service, there was always anew number attached to that programmeor service. By the time I took office, therewere 11 pages of telephone numbers inthe phone book listing different ways NewYorkers could contact their government.Whenever New Yorkers had to contacttheir government, they had to be a near-expert in municipal government tofind the right office (for instance, the FireDepartment doesn’t repair broken firehydrants, the Department ofEnvironmental Protection does). 311changes all of that. Now New Yorkers onlyneed to remember two numbers whencontacting their city government – 911 for

Cemergencies and 311 for everything else.If you want to report a broken streetlight,find out if you qualify for food stamps, oreven report graffiti, all you need to do isdial 311 (or 212-NEW YORK if you areoutside New York).

In five months we have already receivedtwo million calls, and call volume ispicking up every day (nearly 20,000 callscome into 311 each day). Clearly,providing easy access to city services is abig hit with New Yorkers.

Using 311 technology, for the first timethe cty can prevent problems before theyarise. How can we do this? For instance,we can map all double-parked carcomplaints, noise complaints, and allestablishments with liquor licences fromthe State of New York. We can use thisdata to ascertain if some of these double-parked car complaints and noisecomplaints are coming from a club or bar,and try to prevent the problem fromarising again.

311 represents a major achievement of myadministration. Not only did weconsolidate 12 call centres (eventually, all40+ city call centres will be rolled into311), but we now have sophisticated toolsto measure our performance inresponding to requests. 311 affects everycity agency in New York and has helped all

of them conduct their business moreefficiently and with better citizen service.

Digitising x-rays

In November 2002, the Health HospitalsCorporation (HHC) completed theinstallation of Picture ArchivingCommunications Systems (PACS) at allHHC facilities. Each year, PACSelectronically stores digital x-ray imagesfor one million radiology cases, replacingthe use of outmoded and cumbersome x-ray film. Prior to the system-wideinstallation of PACS, it took 24 to 48 hoursto access almost every radiology image.With PACS, every image is available withinfour minutes. Using PACS, a patient’smedical team can review the digital x-raysfrom virtually any location over secureinternet gateways 24 hours a day, sevendays a week, consult on treatment optionsfaster and more efficiently, and maximisethe productivity of scarce radiology andmedical expertise. Digital storage furtherimproves patient care by allowing for easycomparison of images over time, and byproviding detailed and accuratemagnifications of images.

The programme saves doctors’ time andhospitals’ money – $1 million at Elmhurstalone. In fact, instead of having aradiologist at all times at both ElmhurstHospital Center and the Queens Hospital

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Center, just one is needed for bothlocations at night. The PACS systemmaximises the productivity of scarceradiology and medical expertise. While fewer than ten per cent of hospitals nationwide have digitised x-rays, the PACS system has been installed at every HHC facility in the city. This has saved $4 million and will save $11 million annually.

Computerising physician orders

In 2002, HHC completed system-wideinstallation of Computerized PhysicianOrder Entry (CPOE) throughout its 11 acute care hospitals and at over 100community-based clinics. Annually, HHCclinicians now use CPOE to orderapproximately 13 million pharmacyprescriptions, 96 million lab tests, and onemillion radiology tests. National safetyexperts widely agree that using a CPOEsystem reduces medication errors by asmuch as 50 to 70%, and HHC’smedication error rate with this system isless than .000001% – or less than one in amillion. CPOE also provides clinicians withalerts and warnings, and detailedmedication history. CPOE further improvespatient care by giving clinicians fastercentralised access to lab results, allowingdoctors to treat patients promptly. Forroutine lab tests, results are available inunder two hours, urgent tests areavailable in under 30 minutes, andemergency screening results are back inless than ten minutes. HHC remains farahead of the national trend in this effort,with 100% of all HHC physicians using theCPOE system for all their ordering. Onlyfive per cent of all hospitals nationwide –public and private – have achieved thisgoal. Ultimately, these innovations not

only enhance patient care but alsoimprove the bottom line – patients aretreated more quickly, at a lower cost, andinsurers are providing higherreimbursement rates to healthcarefacilities with CPOE, an increase of asmuch as four per cent in 2002.

Putting all medical records online

The successful implementation of theComputerized Physician Order Entrysystem is hastening the completion ofHHC’s overall goal of storing all patientrecords in its Electronic Medical Record(EMR). Currently, the electronic medicalrecord of every one of HHC’s 1.3 millionpatients includes medication history, labresults and radiology tests. The EMR alsolinks to the Micromedex patientinformation system, which clinicians use toprovide patients with a printout – inEnglish or Spanish – of completeinformation about their prescribedmedications, specific medical conditionssuch as asthma, and other critical medical information.

Improved adoption access

In February 2002, the Administration forChildren’s Services (ACS) launched the‘Meet Our Kids’ website. The websiteallows interested families to view photosand stories of children who are waiting fora permanent, loving adoptive family. Thebenefits of having adoption informationonline include immediate availability ofadoption information, 24 hours a day,seven days a week, significant savings instaff time, and the ability to reachadoptive homes outside of New York City,which is a great way for ACS to findhomes for children who might be hard to

place. Since ‘Meet Our Kids’ was launched,enquiries to the ACS Parent RecruitmentHotline have increased by 65%, withinternet inquires accounting for about 50% of the average 600 total calls to thehotline each month. ‘Meet Our Kids’ isalso one of the most visited areas of theACS website, consistently ranking amongthe top ten pages viewed, with about2,200 hits per month. Savings for the cityinclude a reduced number of mailings,reduction in staff time on the phone anddigital photography cost savings of$35,000 a year.

Benefit QuickCheck for seniors

In May 2002, the Department for theAging released QuickCheck, an easy-to-use, online tool that helps New York City’ssenior citizens check their eligibility for avariety of benefits and programmes. TheQuickCheck user completes an onlineapplication, and can then choose from 16assistance programmes administered byvarious branches of federal, state and localgovernment. QuickCheck informs theapplicant which benefits they are mostlikely to receive and then provides a link to the administering agency’s eligibilityform. Following the introduction ofQuickCheck, the number of monthly visitsto Aging’s website rose by nearly 50% toover 23,000 hits.

State-of-the-art revenue collection

Thanks to NYCServ, New Yorkers can nowpay parking tickets, property taxes, waterbills and other fees in one quick visit overthe internet at www.nyc.gov/finance.Through NYCServ, which went online inFebruary 2002, New Yorkers can alsocontest tickets online by conducting ahearing with an Administrative Law Judgevia email. Individuals can also track downtowed cars and pay certain business taxes.Since January, NYCServ has serviced630,000 transactions, collecting a total of$1.4 billion.

Purchasing permits online

Last year Parks established an online creditcard payment system for special eventsand tennis permits. The Parks website alsoallows users to obtain special eventspermits/applications, athletic permits andapplications, forestry permits, lifeguardapplications, guidelines for donatingworks of art to Parks, volunteer sign-upforms, and more.

Mayor’s Office of Film, Theatre andBroadcasting

In 2002, the Mayor's Office of Film,Theatre and Broadcasting loaded allpermit applications online atwww.nyc.gov/film. Prior to this, theagency had been processing permits byhand and with typewriters. In addition to streamlining the permit process, theagency has installed a new phone system whereby an individual answers the phone rather than an automated voicemailbox system.

New York New York

New Yorkers can now pay parkingtickets, property taxes, water billsand other fees in one quick visitover the internet

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Center, just one is needed for bothlocations at night. The PACS systemmaximises the productivity of scarceradiology and medical expertise. While fewer than ten per cent of hospitals nationwide have digitised x-rays, the PACS system has been installed at every HHC facility in the city. This has saved $4 million and will save $11 million annually.

Computerising physician orders

In 2002, HHC completed system-wideinstallation of Computerized PhysicianOrder Entry (CPOE) throughout its 11 acute care hospitals and at over 100community-based clinics. Annually, HHCclinicians now use CPOE to orderapproximately 13 million pharmacyprescriptions, 96 million lab tests, and onemillion radiology tests. National safetyexperts widely agree that using a CPOEsystem reduces medication errors by asmuch as 50 to 70%, and HHC’smedication error rate with this system isless than .000001% – or less than one in amillion. CPOE also provides clinicians withalerts and warnings, and detailedmedication history. CPOE further improvespatient care by giving clinicians fastercentralised access to lab results, allowingdoctors to treat patients promptly. Forroutine lab tests, results are available inunder two hours, urgent tests areavailable in under 30 minutes, andemergency screening results are back inless than ten minutes. HHC remains farahead of the national trend in this effort,with 100% of all HHC physicians using theCPOE system for all their ordering. Onlyfive per cent of all hospitals nationwide –public and private – have achieved thisgoal. Ultimately, these innovations not

only enhance patient care but alsoimprove the bottom line – patients aretreated more quickly, at a lower cost, andinsurers are providing higherreimbursement rates to healthcarefacilities with CPOE, an increase of asmuch as four per cent in 2002.

Putting all medical records online

The successful implementation of theComputerized Physician Order Entrysystem is hastening the completion ofHHC’s overall goal of storing all patientrecords in its Electronic Medical Record(EMR). Currently, the electronic medicalrecord of every one of HHC’s 1.3 millionpatients includes medication history, labresults and radiology tests. The EMR alsolinks to the Micromedex patientinformation system, which clinicians use toprovide patients with a printout – inEnglish or Spanish – of completeinformation about their prescribedmedications, specific medical conditionssuch as asthma, and other critical medical information.

Improved adoption access

In February 2002, the Administration forChildren’s Services (ACS) launched the‘Meet Our Kids’ website. The websiteallows interested families to view photosand stories of children who are waiting fora permanent, loving adoptive family. Thebenefits of having adoption informationonline include immediate availability ofadoption information, 24 hours a day,seven days a week, significant savings instaff time, and the ability to reachadoptive homes outside of New York City,which is a great way for ACS to findhomes for children who might be hard to

place. Since ‘Meet Our Kids’ was launched,enquiries to the ACS Parent RecruitmentHotline have increased by 65%, withinternet inquires accounting for about 50% of the average 600 total calls to thehotline each month. ‘Meet Our Kids’ isalso one of the most visited areas of theACS website, consistently ranking amongthe top ten pages viewed, with about2,200 hits per month. Savings for the cityinclude a reduced number of mailings,reduction in staff time on the phone anddigital photography cost savings of$35,000 a year.

Benefit QuickCheck for seniors

In May 2002, the Department for theAging released QuickCheck, an easy-to-use, online tool that helps New York City’ssenior citizens check their eligibility for avariety of benefits and programmes. TheQuickCheck user completes an onlineapplication, and can then choose from 16assistance programmes administered byvarious branches of federal, state and localgovernment. QuickCheck informs theapplicant which benefits they are mostlikely to receive and then provides a link to the administering agency’s eligibilityform. Following the introduction ofQuickCheck, the number of monthly visitsto Aging’s website rose by nearly 50% toover 23,000 hits.

State-of-the-art revenue collection

Thanks to NYCServ, New Yorkers can nowpay parking tickets, property taxes, waterbills and other fees in one quick visit overthe internet at www.nyc.gov/finance.Through NYCServ, which went online inFebruary 2002, New Yorkers can alsocontest tickets online by conducting ahearing with an Administrative Law Judgevia email. Individuals can also track downtowed cars and pay certain business taxes.Since January, NYCServ has serviced630,000 transactions, collecting a total of$1.4 billion.

Purchasing permits online

Last year Parks established an online creditcard payment system for special eventsand tennis permits. The Parks website alsoallows users to obtain special eventspermits/applications, athletic permits andapplications, forestry permits, lifeguardapplications, guidelines for donatingworks of art to Parks, volunteer sign-upforms, and more.

Mayor’s Office of Film, Theatre andBroadcasting

In 2002, the Mayor's Office of Film,Theatre and Broadcasting loaded allpermit applications online atwww.nyc.gov/film. Prior to this, theagency had been processing permits byhand and with typewriters. In addition to streamlining the permit process, theagency has installed a new phone system whereby an individual answers the phone rather than an automated voicemailbox system.

New York New York

New Yorkers can now pay parkingtickets, property taxes, water billsand other fees in one quick visitover the internet

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Mayor’s management report –streamlined and online

In September 2002, the Mayor’s Office ofOperations released the newly streamlinedMayor’s Management Report (MMR – areport of different statistics compiled bythe different city agencies). The new MMRhas been redesigned as a ‘Public ReportCard’ – to help citizens, civic groups andpublic officials understand howgovernment is performing. The Cityintroduced a companion website –www.nyc.gov/myneighborhoodstats – thatmakes obtaining and understanding thedata more user-friendly and accessible.The website also allows the public to view,locally mapped performance statistics, sothe average user can enter his or her zipcode and learn the local crime statistics,park cleanliness rates, fire response timesand more. Since its launch on 24September 2003 the e-MMR has receivedover 170,000 page views, and over 59,000people have taken advantage of theneighbourhood performance application.

Telecommunications cost-savingsinitiative

In 2002, the Department of InformationTechnology and Telecommunications(DoITT) began an aggressive review of allcity telecommunications needs to discoverways to reduce telecommunications costswithout reducing service. DoITTnegotiated a revised local telephone usagebilling plan with Verizon that is expectedto reduce expenses by approximately $10 million annually. In addition, the citywill save $1.7 million by cancelling unusedvoice and data lines, and save $2 millionby securing better pricing for varioustelephone services.

Leveraging technology resources

At the beginning of 2002 the DoITT wasinstructed to assist agencies in cuttingtheir technology and telecommunicationscosts, and upgrading their technologyinfrastructure. DoITT began sharing itsdata centre and fibre resources to saveagencies the costs typically associated with securing internet access or housingdata centre facilities at alternativelocations. Currently, 13 agencies are using the service, saving the city $1.3million annually.

In addition, city agencies are now able touse DoITT’s Virtual Private Network facilityto gain remote access from the internetfor individual agency users, saving the city$1 million annually. DoITT has also openedup its data centre to any agency, allowingthem to save the cost of building theirown data centre, saving the city over $5million annually.

And finally, DoITT is transferring theNYC.gov website from its external host sitein New Jersey to the DoITT data centre toavoid third-party vendor costs. The movewill save the city $1.4 million annually.

Paperless procurement

Starting in July 2002, the Department ofCitywide Administrative Services (DCAS)suspended the monthly distribution of allpaper copies of its Requirement Contracts(RC) to City agencies. Instead, cityagencies now must log onto the city’sintranet to view RCs. To make the newsystem work, DCAS developed asearchable database of all RCs as well asthe central storehouse catalogue of itemsin inventory. Users can easily search the

databases based on key words, contractnumbers, vendor names or contract types,and view or print electronic versions of theactual RC reports. By making theinformation available electronically, paperwaste has been reduced dramatically andRCs are accessible instantaneously. Thisprogramme has saved $55,000 in FY2002.In FY2003, and every year thereafter, theprogramme will save $100,000.

Paperless city offices

In 2002, the Human ResourcesAdministration (HRA) converted 19 of 31job centres to a paperless office system,with the intention of having all the centrescompleted by June 2003. With thepaperless system, employees enterinformation about clients directly into thecomputer, instead of filling out forms inlonghand or on a typewriter. The systemprompts workers to ask for informationand ensures that data is not missed. Asworkers become increasingly familiar withthe system, the time necessary to serveeach client will continue to decrease, andto date HRA has imaged 230 milliondocuments. The paperless office hasalready substantially cut processing timeand eliminates paper files and the need tosearch for them.

Using technology and multi-agency coordination to combatdomestic violence

In October 2002, the NYPD completedwork on a new system that digitallyrecords and indexes all calls made to thecity’s 911 emergency response system. Asa result, clear and accurate recordings ofthese calls are now retrieved and madeavailable to prosecutors almostimmediately. Prior to the implementationof this new technology, 911 calls weremanually retrieved by technicians andprovided to prosecutors on cassette tapes,a process that took an average of threemonths to complete. The Kings CountyDistrict Attorney is now using the systemto strengthen the prosecution ofmisdemeanor domestic violence cases.Prosecutors may now play victims‘ 911calls for arraignment judges, increasingthe likelihood that bail will be set. In somecases, 911 recordings can even serve asdirect evidence, enabling prosecutions toproceed even if the victim refuses tocooperate. From 22 October through 4December 2002, the District Attorney’sOffice accessed and screened 197 digital911 recordings prior to arraignment.Approximately one-third of those callswere deemed to be of significantevidentiary value and were played in thecourtroom to bolster bail applications.

DNA technology

During the first three-quarters of 2002,OCME‘s Forensic Biology Laboratoryincreased the number of Combined DNAIndex System (CODIS) profiles 140%, from1,313 to 3,156 profiles, resulting in a 52%increase in case-to-case matches, a 36%increase in convicted offender matches,

New York New York

By making procurementinformation availableelectronically, paper waste hasbeen reduced dramatically andRequirement Contracts areaccessible instantaneously

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Mayor’s management report –streamlined and online

In September 2002, the Mayor’s Office ofOperations released the newly streamlinedMayor’s Management Report (MMR – areport of different statistics compiled bythe different city agencies). The new MMRhas been redesigned as a ‘Public ReportCard’ – to help citizens, civic groups andpublic officials understand howgovernment is performing. The Cityintroduced a companion website –www.nyc.gov/myneighborhoodstats – thatmakes obtaining and understanding thedata more user-friendly and accessible.The website also allows the public to view,locally mapped performance statistics, sothe average user can enter his or her zipcode and learn the local crime statistics,park cleanliness rates, fire response timesand more. Since its launch on 24September 2003 the e-MMR has receivedover 170,000 page views, and over 59,000people have taken advantage of theneighbourhood performance application.

Telecommunications cost-savingsinitiative

In 2002, the Department of InformationTechnology and Telecommunications(DoITT) began an aggressive review of allcity telecommunications needs to discoverways to reduce telecommunications costswithout reducing service. DoITTnegotiated a revised local telephone usagebilling plan with Verizon that is expectedto reduce expenses by approximately $10 million annually. In addition, the citywill save $1.7 million by cancelling unusedvoice and data lines, and save $2 millionby securing better pricing for varioustelephone services.

Leveraging technology resources

At the beginning of 2002 the DoITT wasinstructed to assist agencies in cuttingtheir technology and telecommunicationscosts, and upgrading their technologyinfrastructure. DoITT began sharing itsdata centre and fibre resources to saveagencies the costs typically associated with securing internet access or housingdata centre facilities at alternativelocations. Currently, 13 agencies are using the service, saving the city $1.3million annually.

In addition, city agencies are now able touse DoITT’s Virtual Private Network facilityto gain remote access from the internetfor individual agency users, saving the city$1 million annually. DoITT has also openedup its data centre to any agency, allowingthem to save the cost of building theirown data centre, saving the city over $5million annually.

And finally, DoITT is transferring theNYC.gov website from its external host sitein New Jersey to the DoITT data centre toavoid third-party vendor costs. The movewill save the city $1.4 million annually.

Paperless procurement

Starting in July 2002, the Department ofCitywide Administrative Services (DCAS)suspended the monthly distribution of allpaper copies of its Requirement Contracts(RC) to City agencies. Instead, cityagencies now must log onto the city’sintranet to view RCs. To make the newsystem work, DCAS developed asearchable database of all RCs as well asthe central storehouse catalogue of itemsin inventory. Users can easily search the

databases based on key words, contractnumbers, vendor names or contract types,and view or print electronic versions of theactual RC reports. By making theinformation available electronically, paperwaste has been reduced dramatically andRCs are accessible instantaneously. Thisprogramme has saved $55,000 in FY2002.In FY2003, and every year thereafter, theprogramme will save $100,000.

Paperless city offices

In 2002, the Human ResourcesAdministration (HRA) converted 19 of 31job centres to a paperless office system,with the intention of having all the centrescompleted by June 2003. With thepaperless system, employees enterinformation about clients directly into thecomputer, instead of filling out forms inlonghand or on a typewriter. The systemprompts workers to ask for informationand ensures that data is not missed. Asworkers become increasingly familiar withthe system, the time necessary to serveeach client will continue to decrease, andto date HRA has imaged 230 milliondocuments. The paperless office hasalready substantially cut processing timeand eliminates paper files and the need tosearch for them.

Using technology and multi-agency coordination to combatdomestic violence

In October 2002, the NYPD completedwork on a new system that digitallyrecords and indexes all calls made to thecity’s 911 emergency response system. Asa result, clear and accurate recordings ofthese calls are now retrieved and madeavailable to prosecutors almostimmediately. Prior to the implementationof this new technology, 911 calls weremanually retrieved by technicians andprovided to prosecutors on cassette tapes,a process that took an average of threemonths to complete. The Kings CountyDistrict Attorney is now using the systemto strengthen the prosecution ofmisdemeanor domestic violence cases.Prosecutors may now play victims‘ 911calls for arraignment judges, increasingthe likelihood that bail will be set. In somecases, 911 recordings can even serve asdirect evidence, enabling prosecutions toproceed even if the victim refuses tocooperate. From 22 October through 4December 2002, the District Attorney’sOffice accessed and screened 197 digital911 recordings prior to arraignment.Approximately one-third of those callswere deemed to be of significantevidentiary value and were played in thecourtroom to bolster bail applications.

DNA technology

During the first three-quarters of 2002,OCME‘s Forensic Biology Laboratoryincreased the number of Combined DNAIndex System (CODIS) profiles 140%, from1,313 to 3,156 profiles, resulting in a 52%increase in case-to-case matches, a 36%increase in convicted offender matches,

New York New York

By making procurementinformation availableelectronically, paper waste hasbeen reduced dramatically andRequirement Contracts areaccessible instantaneously

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and a 61% increase in conviction matches.Turnaround time for DNA work related tosexual assaults averaged 39 days per case– the fastest turnaround time for regularcasework in any large public DNAlaboratory in the United States. Over thepast year, OCME has also electronicallyarchived two years of medical examinercase records, forming the basis for anelectronic records management system.Finally, OCME has been developing anagency-wide system to electronicallygenerate death certificates. This systemwill be fully operational on1 January 2004,when the city adopts the new nationaldeath certificate standard.

OCME has successfully continued torespond to the largest, most complexmass fatality incident in the history of theUnited States, namely the September 11thattacks. The Office restructuredoperations, created new processes andprocedures and coordinated efforts withother agencies, jurisdictions, and morethan 80 countries. As of this date, 52%(1,443) of the victims reported missinghave been identified, and OCMEanticipates that the introduction of newDNA technology will push the figure to 72% (2,000) of the victims. OCME has alsoutilised DNA technology to link remains ofthe victims of Flight 587. The victims’families have claimed more than half ofthe remains and OCME is meeting withthe families to decide upon a final restingplace for the remains that have not beenidentified or claimed.

Digital cameras

In 2002, the NYPD distributed digitalcameras to all precinct, housing, andtransit commanding officers through a

grant from the New York City PoliceFoundation. The NYPD has also expandedthe ‘Digital Photographs Pilot Project’ fromQueens to Brooklyn to assess the use ofnew digital camera technology andsoftware, and expedite the transmission ofphotographs to the District Attorney’sOffices for the prosecution of defendantsin domestic violence cases. In addition, theNYPD has provided laptop computers toall precinct, PSA and transit commanders,connecting each to the Compstat.

Forensics

The NYPD has launched severaltechnological initiatives to enable forensicscientists to provide a higher qualityreport in a timely manner to prosecutorsin New York City. These include theenhancement of ballistic imaging, digitalimaging and the handling of data and evidence.

New York

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and a 61% increase in conviction matches.Turnaround time for DNA work related tosexual assaults averaged 39 days per case– the fastest turnaround time for regularcasework in any large public DNAlaboratory in the United States. Over thepast year, OCME has also electronicallyarchived two years of medical examinercase records, forming the basis for anelectronic records management system.Finally, OCME has been developing anagency-wide system to electronicallygenerate death certificates. This systemwill be fully operational on1 January 2004,when the city adopts the new nationaldeath certificate standard.

OCME has successfully continued torespond to the largest, most complexmass fatality incident in the history of theUnited States, namely the September 11thattacks. The Office restructuredoperations, created new processes andprocedures and coordinated efforts withother agencies, jurisdictions, and morethan 80 countries. As of this date, 52%(1,443) of the victims reported missinghave been identified, and OCMEanticipates that the introduction of newDNA technology will push the figure to 72% (2,000) of the victims. OCME has alsoutilised DNA technology to link remains ofthe victims of Flight 587. The victims’families have claimed more than half ofthe remains and OCME is meeting withthe families to decide upon a final restingplace for the remains that have not beenidentified or claimed.

Digital cameras

In 2002, the NYPD distributed digitalcameras to all precinct, housing, andtransit commanding officers through a

grant from the New York City PoliceFoundation. The NYPD has also expandedthe ‘Digital Photographs Pilot Project’ fromQueens to Brooklyn to assess the use ofnew digital camera technology andsoftware, and expedite the transmission ofphotographs to the District Attorney’sOffices for the prosecution of defendantsin domestic violence cases. In addition, theNYPD has provided laptop computers toall precinct, PSA and transit commanders,connecting each to the Compstat.

Forensics

The NYPD has launched severaltechnological initiatives to enable forensicscientists to provide a higher qualityreport in a timely manner to prosecutorsin New York City. These include theenhancement of ballistic imaging, digitalimaging and the handling of data and evidence.

New York

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StockholmMonica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director ofEducation Administration and Per-Olof Gustafsson,Deputy Managing Director, Economic Development Office, Stockholm

passionate interest in technology– and communications inparticular – seems to be ahallmark of the Swedish national

character. Perhaps it’s the combination ofa small population and many isolatedisland communities. Or perhaps it’sbecause we feel ourselves part of a littlecountry on the outskirts of the world, sothat when new ideas arrive we delight in making it possible for all ourcountrymen to share these innovations as quickly as possible.

By 1898, for example, Stockholm hadmore telephones than London or Paris.The phone had become an enduringnational pastime. It’s an obsession thathas certainly paid off: in 1910, when thewife of inventor Lars Magnus Ericsson firstbought a car, her husband insisted ontaking his phone with him on everyjourney. They solved the problem ofconnecting to the exchange with fishingrods. When Lars felt a compulsion to makea call, Hilda would park the car under thenearest telegraph pole and wave the rodsin the air, hooking the wires onto theoverhead lines. The rest, as they say, is history...

This story perfectly illustrates anothernational trait: a desire not to adopt theconventional solution, but to implementpractical strategies that actually work. In1993, Stockholm became the first

deregulated telecoms market in the world.We wanted to improve the infrastructureby laying new fibre, but we wanted to doso in a manner that would not perpetuatethe existing monopoly (since, like mostcountries, we had only one telecomsprovider at that time).

The solution was Stokab (www.stokab.se)and the international community wasinitially as dismissive of this as LarsEricsson’s neighbours must have beenabout his fishing rods. It has, however,been equally successful.

The idea was simple. The City ofStockholm raised the finance andincorporated a vehicle (AB Stokab – thename is not an abbreviation or anything,simply the title of the company), to cablethe city. This meant turning our backs onshort-term revenues – making a quickbuck by effectively selling the right to digup the roads – and embracing long-terminvestment. Just as the civil authority isresponsible for the roads but not for thetraffic, so Stokab is responsible forproviding dark fibre (ie fibre-optic cablewithout the light signalling component),without dictating the use it is put to.

There are now 68 customers or operatorsthat lease capacity from Stokab. Wereached break-even in three to four years.It’s a lot easier to buy capacity fromStokab than it is to start from scratch. And

Ait’s not just a corporate resource: 95% ofhomes in the city of Stockholm have beenpassed, so all the home-owner needs todo is connect to Stokab either bythemselves or through a service provider.

We developed the Stokab model becausewe wanted to foster competition, but wedidn’t want the situation that had arisenin, for example, London, where numerousdifferent providers dug holes in theground, causing difficulties for citizensand endless traffic disruption. On theother hand, at a strategic level, the issueof competition had to be addressedbecause in the inner parts of the city therewas room for two or three operators.

In addition to practical considerations, wechose the public investment route becausewe realised that we could use the networkas a tool in raising the profile of the city.Our international marketing position isthat Stockholm is a good place to investin. This is an indirect financial benefit forthe city: Stokab itself is not a revenuesource. Although it does make a smallprofit, this is not the objective. Indeed, thecity is a customer and pays for networkcapacity just like everybody else.

By 1997 the city had become a marketleader and a decision was made to breakup the city into 24 districts (although thisnumber has now fallen to 18). Each

district has its own local council and itsown public administration. Together, these districts are responsible for the greatmajority of the city’s budget and also havedirect control over childcare, schools, careof the elderly and other social dutieswithin their district boundaries.

This decentralisation was an excellentopportunity for the city to rewire and put fibre into city institutions. Each district council was connected to thenetwork and at the same time it wasdecided that all schools should also beconnected, as well as elderly careinstitutions and daycare centres.

This future-proofed infrastructure wasfinanced by the city, the expenditurejustified by the benefits of having a publicaccess network. These benefits have fallenprincipally into the areas of education andtraining, information services andtelecommuting.

The networked school

Stockholm has good-quality uppersecondary schools. 41% of children inStockholm have one parent that comesfrom another country – and even with thishigh level of immigration the schools aresuccessful. In fact, 70% of 16-19 year oldsare satisfied with their education and willrecommend the programme they are

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StockholmMonica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director ofEducation Administration and Per-Olof Gustafsson,Deputy Managing Director, Economic Development Office, Stockholm

passionate interest in technology– and communications inparticular – seems to be ahallmark of the Swedish national

character. Perhaps it’s the combination ofa small population and many isolatedisland communities. Or perhaps it’sbecause we feel ourselves part of a littlecountry on the outskirts of the world, sothat when new ideas arrive we delight in making it possible for all ourcountrymen to share these innovations as quickly as possible.

By 1898, for example, Stockholm hadmore telephones than London or Paris.The phone had become an enduringnational pastime. It’s an obsession thathas certainly paid off: in 1910, when thewife of inventor Lars Magnus Ericsson firstbought a car, her husband insisted ontaking his phone with him on everyjourney. They solved the problem ofconnecting to the exchange with fishingrods. When Lars felt a compulsion to makea call, Hilda would park the car under thenearest telegraph pole and wave the rodsin the air, hooking the wires onto theoverhead lines. The rest, as they say, is history...

This story perfectly illustrates anothernational trait: a desire not to adopt theconventional solution, but to implementpractical strategies that actually work. In1993, Stockholm became the first

deregulated telecoms market in the world.We wanted to improve the infrastructureby laying new fibre, but we wanted to doso in a manner that would not perpetuatethe existing monopoly (since, like mostcountries, we had only one telecomsprovider at that time).

The solution was Stokab (www.stokab.se)and the international community wasinitially as dismissive of this as LarsEricsson’s neighbours must have beenabout his fishing rods. It has, however,been equally successful.

The idea was simple. The City ofStockholm raised the finance andincorporated a vehicle (AB Stokab – thename is not an abbreviation or anything,simply the title of the company), to cablethe city. This meant turning our backs onshort-term revenues – making a quickbuck by effectively selling the right to digup the roads – and embracing long-terminvestment. Just as the civil authority isresponsible for the roads but not for thetraffic, so Stokab is responsible forproviding dark fibre (ie fibre-optic cablewithout the light signalling component),without dictating the use it is put to.

There are now 68 customers or operatorsthat lease capacity from Stokab. Wereached break-even in three to four years.It’s a lot easier to buy capacity fromStokab than it is to start from scratch. And

Ait’s not just a corporate resource: 95% ofhomes in the city of Stockholm have beenpassed, so all the home-owner needs todo is connect to Stokab either bythemselves or through a service provider.

We developed the Stokab model becausewe wanted to foster competition, but wedidn’t want the situation that had arisenin, for example, London, where numerousdifferent providers dug holes in theground, causing difficulties for citizensand endless traffic disruption. On theother hand, at a strategic level, the issueof competition had to be addressedbecause in the inner parts of the city therewas room for two or three operators.

In addition to practical considerations, wechose the public investment route becausewe realised that we could use the networkas a tool in raising the profile of the city.Our international marketing position isthat Stockholm is a good place to investin. This is an indirect financial benefit forthe city: Stokab itself is not a revenuesource. Although it does make a smallprofit, this is not the objective. Indeed, thecity is a customer and pays for networkcapacity just like everybody else.

By 1997 the city had become a marketleader and a decision was made to breakup the city into 24 districts (although thisnumber has now fallen to 18). Each

district has its own local council and itsown public administration. Together, these districts are responsible for the greatmajority of the city’s budget and also havedirect control over childcare, schools, careof the elderly and other social dutieswithin their district boundaries.

This decentralisation was an excellentopportunity for the city to rewire and put fibre into city institutions. Each district council was connected to thenetwork and at the same time it wasdecided that all schools should also beconnected, as well as elderly careinstitutions and daycare centres.

This future-proofed infrastructure wasfinanced by the city, the expenditurejustified by the benefits of having a publicaccess network. These benefits have fallenprincipally into the areas of education andtraining, information services andtelecommuting.

The networked school

Stockholm has good-quality uppersecondary schools. 41% of children inStockholm have one parent that comesfrom another country – and even with thishigh level of immigration the schools aresuccessful. In fact, 70% of 16-19 year oldsare satisfied with their education and willrecommend the programme they are

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studying to other pupils. A recent OECDsurvey highlighted the success of thesystem, with 91% of the populationachieving the equivalent of 5 GCSEs atgrades A-C (placing the country’seducational system ahead of the USA andevery European country except Norway).There is a private system as well – 13% ofschools are independent, but the studentsare paid for by the state, and everyindependent school must use the nationalcurriculum.

Stockholm has been working for manyyears trying to provide all schools withnetwork and computers. The programmehas been running since 2000; all schoolsare now connected and the focus is onolder students – 16-19-year-olds. Studentsnow have much greater individual choiceof study topics. The traditional classroomwith a teacher lecturing to assembledstudents is on the way out as greater useis made of broadband internet resources.

For example, a student interested inhistory would traditionally have picked upa book, read five or ten pages on WorldWar II and then looked for another bookto consult on another related subject. Alibrary search involved not only locatingvolumes, but scanning the indices andreviewing the content before building areading list. Today, you can use the weband find many different resources for thetopics you are particularly interested in,easily building a reference library of booksand articles that enable you to approachthe topic from many different angles. Youcan even find people who were livingduring World War II and discuss the warwith them in person.

Of course, now that the methods of

teaching are different, the approach of theteacher has had to change – and that’snot an easy task. We had begun anextensive teacher training programme innew media studies as far back as 1985,using city- and government-fundededucation programmes. We discoveredthat there was no substitute for practicalexperience: teachers need to experiencethe value of the net in their own subjectsso they can see what’s possible both forthemselves and their students.

Some teachers are understandably nervousabout IT, but once critical mass is achievedthe late arrivals start hurrying to catch up.We now have teachers in different schoolsexchanging lesson plans with each otherand cooperating in other ways.

It’s not just teachers that benefit, either.School administrators can nowcommunicate much more effectively withparents. Initial feedback seems to suggestthat parents are particularly concerned toget information about homework, food,tests (pass and fail) and what the teachersare like, so we’re developing programmesto share this information as part of anoverall strategy to improve communicationbetween school and home. This isparticularly useful now that parentschoose the school they want the child toattend; getting to know more about theschool in question is very important.

Another established project centres ondistance learning. Mature students – orthose who don’t want to come to school –can find up to 25 courses on the web. Thishas been particularly important for adultswho failed in their earlier years. Initially itwas difficult persuading people to sign up,but several hundred adults have now

taken these courses. Your work is gradedremotely by a qualified teacher via email.An additional benefit is that distancelearning can be made availableinternationally: we have Swedes using theservice all over the world.

Improving public service

Distance learning and lifelong educationextends into the workplace as well. It’s notjust about taking a course in English orGerman: it can be about developing newskills and changing jobs. This is an areawhere we still have a lot to learn, but weare looking at ways of briefing staff onnew working practice, legislation andother issues, as well as simply makingmaterials available for sharing and re-useby small, widely distributed groups.

Up until recently, most of our investmenthas been in providing services to thegeneral public. However, it is clear that ourown internal training methods areinefficient and we’d like to introducecomputer-assisted training for the 45,000employees who work for the state. To dothis, we have to re-educate our staff tofind and use material online. We also neednew authoring and publishing tools toadapt core material for use by manydifferent groups. It’s not easy: while

everyone may welcome a reduction inpaperwork, new systems involve processre-engineering and can be seen asreducing face-to-face contact.

As a result, 2bn krona have been set asidefor training local government staff and animportant part of the fund is to use IT as atool to develop e-learning. The politicalobjective behind e-learning is not toincrease or decrease the number of staff,but to raise the status of working in thepublic sector; attracting the right peopleand developing the right skills. We wantto be an attractive alternative to theprivate sector – and by having well-trainedpersonnel we increase the status of publicsector employees.

The business case

Of course, the city is involved in the schoolbudgets – how much they spend and theirresults – and there are procedures laiddown that need to be followed, but in thedevelopment of the education networkthere was not always a formal businessanalysis. We were not asked what thealternatives were or could be. We didn’thave to submit a formal business plan inevery case and we didn’t necessarily knowhow much things would cost. However,the city district budget set aside 200mkrona per year to start with (recentlyreduced to 80m), an allocation whichreflected general agreement that pumppriming was necessary for growth. Thecentral education authority has a specificbudget earmarked for computers andsoftware and each individual school has itsown budget as well.

Stockholm Stockholm

The political objective behind e-learning is not to increase ordecrease the number of staff, butto raise the status of working inthe public sector; attracting theright people and developing theright skills

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studying to other pupils. A recent OECDsurvey highlighted the success of thesystem, with 91% of the populationachieving the equivalent of 5 GCSEs atgrades A-C (placing the country’seducational system ahead of the USA andevery European country except Norway).There is a private system as well – 13% ofschools are independent, but the studentsare paid for by the state, and everyindependent school must use the nationalcurriculum.

Stockholm has been working for manyyears trying to provide all schools withnetwork and computers. The programmehas been running since 2000; all schoolsare now connected and the focus is onolder students – 16-19-year-olds. Studentsnow have much greater individual choiceof study topics. The traditional classroomwith a teacher lecturing to assembledstudents is on the way out as greater useis made of broadband internet resources.

For example, a student interested inhistory would traditionally have picked upa book, read five or ten pages on WorldWar II and then looked for another bookto consult on another related subject. Alibrary search involved not only locatingvolumes, but scanning the indices andreviewing the content before building areading list. Today, you can use the weband find many different resources for thetopics you are particularly interested in,easily building a reference library of booksand articles that enable you to approachthe topic from many different angles. Youcan even find people who were livingduring World War II and discuss the warwith them in person.

Of course, now that the methods of

teaching are different, the approach of theteacher has had to change – and that’snot an easy task. We had begun anextensive teacher training programme innew media studies as far back as 1985,using city- and government-fundededucation programmes. We discoveredthat there was no substitute for practicalexperience: teachers need to experiencethe value of the net in their own subjectsso they can see what’s possible both forthemselves and their students.

Some teachers are understandably nervousabout IT, but once critical mass is achievedthe late arrivals start hurrying to catch up.We now have teachers in different schoolsexchanging lesson plans with each otherand cooperating in other ways.

It’s not just teachers that benefit, either.School administrators can nowcommunicate much more effectively withparents. Initial feedback seems to suggestthat parents are particularly concerned toget information about homework, food,tests (pass and fail) and what the teachersare like, so we’re developing programmesto share this information as part of anoverall strategy to improve communicationbetween school and home. This isparticularly useful now that parentschoose the school they want the child toattend; getting to know more about theschool in question is very important.

Another established project centres ondistance learning. Mature students – orthose who don’t want to come to school –can find up to 25 courses on the web. Thishas been particularly important for adultswho failed in their earlier years. Initially itwas difficult persuading people to sign up,but several hundred adults have now

taken these courses. Your work is gradedremotely by a qualified teacher via email.An additional benefit is that distancelearning can be made availableinternationally: we have Swedes using theservice all over the world.

Improving public service

Distance learning and lifelong educationextends into the workplace as well. It’s notjust about taking a course in English orGerman: it can be about developing newskills and changing jobs. This is an areawhere we still have a lot to learn, but weare looking at ways of briefing staff onnew working practice, legislation andother issues, as well as simply makingmaterials available for sharing and re-useby small, widely distributed groups.

Up until recently, most of our investmenthas been in providing services to thegeneral public. However, it is clear that ourown internal training methods areinefficient and we’d like to introducecomputer-assisted training for the 45,000employees who work for the state. To dothis, we have to re-educate our staff tofind and use material online. We also neednew authoring and publishing tools toadapt core material for use by manydifferent groups. It’s not easy: while

everyone may welcome a reduction inpaperwork, new systems involve processre-engineering and can be seen asreducing face-to-face contact.

As a result, 2bn krona have been set asidefor training local government staff and animportant part of the fund is to use IT as atool to develop e-learning. The politicalobjective behind e-learning is not toincrease or decrease the number of staff,but to raise the status of working in thepublic sector; attracting the right peopleand developing the right skills. We wantto be an attractive alternative to theprivate sector – and by having well-trainedpersonnel we increase the status of publicsector employees.

The business case

Of course, the city is involved in the schoolbudgets – how much they spend and theirresults – and there are procedures laiddown that need to be followed, but in thedevelopment of the education networkthere was not always a formal businessanalysis. We were not asked what thealternatives were or could be. We didn’thave to submit a formal business plan inevery case and we didn’t necessarily knowhow much things would cost. However,the city district budget set aside 200mkrona per year to start with (recentlyreduced to 80m), an allocation whichreflected general agreement that pumppriming was necessary for growth. Thecentral education authority has a specificbudget earmarked for computers andsoftware and each individual school has itsown budget as well.

Stockholm Stockholm

The political objective behind e-learning is not to increase ordecrease the number of staff, butto raise the status of working inthe public sector; attracting theright people and developing theright skills

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It’s therefore very difficult to assess theexact expenditure on e-learning. It’sequally impossible to establish themeasure of the benefits. Our attitude isthat this is a question of democratic right,rather than a profit and loss account. Theprogramme extends from the very youngto the very old. It helps the disadvantagedas well as the physically and mentallyhandicapped. One young man pointed outto me recently that ‘although I maystruggle to write my email, no-one whoreceives it knows that I took seven hoursto write it. For the first time in my life, I am an equal.’ Can you put a value on that?

e-democracy

If you’re going to exercise your votecorrectly, you need the information tomake a decision. 10m krona has been setaside for e-democracy projects. We havetried to put as much as we can on theweb, providing information and at thesame time helping to demystify thepolitical process.

For example, Kista is often referred to asSweden’s ‘Science-City’. There are over700 technology companies based there,employing 65,000 members of the localpopulation. Forthcoming votes in the citycouncil are now published online a monthahead, together with an application thatallows people to chat with and emailpoliticians. We also made sure that peoplecould view the debate on the web via alive video link.

Stockholm is also working with the CyberVote EU project (www.eucybervote.org),but currently we do not plan to use it inthe next election. The Government has

decided it is not secure. And on the topicof security, we have a PKI (Public KeyInfrastructure) project in progress andexpect this to be rolled out in 2004.

Telecommuting

Sweden’s island geography makestelecommuting more attractive here thanit might be in other countries. Peopleoften work from home one or two days aweek and Stockholm has invested in layingfibre out to the many tiny islands to movecompanies away from the city centre. Wehad another agenda here: wiring theislands reduces traffic flow into the city,easing congestion. Call centres, cab andtaxi firms, and others now work from theislands, and managers are growingaccustomed to the idea. If it’s a sunny day,then a work team can sit in a warm spotoutside; never mind their location – onlytheir output matters.

Information online

In addition to the information servicesalready referred to, there are two otherareas of application that have beenparticularly useful. The first relates to job-hunting. We have seen a great deal of development in this field and all jobsearches are computerised and publishedonline at a national level. This makes itmuch easier for us to support and monitoremployment services.

Finally, we’ve made a considerableinvestment in our transport system.Thanks to investment by the city, we can now publish real-time onlineinformation about traffic jams and othertransport issues, reporting both local andnational conditions.

What’s next in Stockholm?

We have a new project called M-city, ageneric title for services accessed bymobile phone. The city sees 3G as havinga role in creating public services, providingbetter administration for services relatedto the care of the elderly and fast-trackingthe registration of students in schools.

M-City connections could be through fibreor wireless – 3G or wireless LAN (and inStockholm they are complementary).Wireless LAN enables operators to createhot spots within the city – there is alreadya huge hot-spot at the university campusand another in the city centre.

For schools, pupil check-in each day is aheavy administrative burden for everyteacher. Our aim is to link this processwith feedback to parents, using SMS. We can text them to tell them if the child is not at school. We can also use GPS in the phone to pinpoint a child’slocation for both teachers and parents.Over a certain age every child in Swedenhas a mobile phone, so the system has alot going for it. And in higher education,students can receive SMS notification ofcancelled lectures and other last-minuteprogramme changes.

A more specific M-City case study involvesa small daycare unit for the elderly. It hasbetween 10 and 15 workers and onemanager. The workers are elderlythemselves and often unable to work – themanager would have days when five outof ten of her team were sick. On thesedays she had to spend two hours a dayphoning other people to fill the slots inthe complicated schedule. The M-Cityprogramme enables her to send a groupSMS to everyone who wants to work thatday and the first person who calls in getsthe work. She now spends only fiveminutes a day on this task, saving 40hours a month.

We’re already seeing the benefits of theM-city programme. Inward investmentfrom the IT sector is increasing and at thetime that this article went to press, ten ITcompanies had relocated to Stockholm inthe preceding six-month period. Ourinfrastructure makes it possible for us tobe a test-bed for services and we can openup marketing opportunities at manydifferent levels, contributing to the criticalmass of demand that the markets require.All this has helped enormously inmarketing the city as a place to live and work.

Looking ahead

Issues ahead of us include how we can getrich educational content into the home.We believe that users will want moregames, more movies and hopefully moreof a say in how they are governed. Allthese things come from dialogue betweenpeople and government.

• We have our fibre network; now all we need are more ideas for applications.

Stockholm Stockholm

People often work from home oneor two days a week andStockholm has invested in layingfibre out to the many tiny islandsto move companies away fromthe city centre

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It’s therefore very difficult to assess theexact expenditure on e-learning. It’sequally impossible to establish themeasure of the benefits. Our attitude isthat this is a question of democratic right,rather than a profit and loss account. Theprogramme extends from the very youngto the very old. It helps the disadvantagedas well as the physically and mentallyhandicapped. One young man pointed outto me recently that ‘although I maystruggle to write my email, no-one whoreceives it knows that I took seven hoursto write it. For the first time in my life, I am an equal.’ Can you put a value on that?

e-democracy

If you’re going to exercise your votecorrectly, you need the information tomake a decision. 10m krona has been setaside for e-democracy projects. We havetried to put as much as we can on theweb, providing information and at thesame time helping to demystify thepolitical process.

For example, Kista is often referred to asSweden’s ‘Science-City’. There are over700 technology companies based there,employing 65,000 members of the localpopulation. Forthcoming votes in the citycouncil are now published online a monthahead, together with an application thatallows people to chat with and emailpoliticians. We also made sure that peoplecould view the debate on the web via alive video link.

Stockholm is also working with the CyberVote EU project (www.eucybervote.org),but currently we do not plan to use it inthe next election. The Government has

decided it is not secure. And on the topicof security, we have a PKI (Public KeyInfrastructure) project in progress andexpect this to be rolled out in 2004.

Telecommuting

Sweden’s island geography makestelecommuting more attractive here thanit might be in other countries. Peopleoften work from home one or two days aweek and Stockholm has invested in layingfibre out to the many tiny islands to movecompanies away from the city centre. Wehad another agenda here: wiring theislands reduces traffic flow into the city,easing congestion. Call centres, cab andtaxi firms, and others now work from theislands, and managers are growingaccustomed to the idea. If it’s a sunny day,then a work team can sit in a warm spotoutside; never mind their location – onlytheir output matters.

Information online

In addition to the information servicesalready referred to, there are two otherareas of application that have beenparticularly useful. The first relates to job-hunting. We have seen a great deal of development in this field and all jobsearches are computerised and publishedonline at a national level. This makes itmuch easier for us to support and monitoremployment services.

Finally, we’ve made a considerableinvestment in our transport system.Thanks to investment by the city, we can now publish real-time onlineinformation about traffic jams and othertransport issues, reporting both local andnational conditions.

What’s next in Stockholm?

We have a new project called M-city, ageneric title for services accessed bymobile phone. The city sees 3G as havinga role in creating public services, providingbetter administration for services relatedto the care of the elderly and fast-trackingthe registration of students in schools.

M-City connections could be through fibreor wireless – 3G or wireless LAN (and inStockholm they are complementary).Wireless LAN enables operators to createhot spots within the city – there is alreadya huge hot-spot at the university campusand another in the city centre.

For schools, pupil check-in each day is aheavy administrative burden for everyteacher. Our aim is to link this processwith feedback to parents, using SMS. We can text them to tell them if the child is not at school. We can also use GPS in the phone to pinpoint a child’slocation for both teachers and parents.Over a certain age every child in Swedenhas a mobile phone, so the system has alot going for it. And in higher education,students can receive SMS notification ofcancelled lectures and other last-minuteprogramme changes.

A more specific M-City case study involvesa small daycare unit for the elderly. It hasbetween 10 and 15 workers and onemanager. The workers are elderlythemselves and often unable to work – themanager would have days when five outof ten of her team were sick. On thesedays she had to spend two hours a dayphoning other people to fill the slots inthe complicated schedule. The M-Cityprogramme enables her to send a groupSMS to everyone who wants to work thatday and the first person who calls in getsthe work. She now spends only fiveminutes a day on this task, saving 40hours a month.

We’re already seeing the benefits of theM-city programme. Inward investmentfrom the IT sector is increasing and at thetime that this article went to press, ten ITcompanies had relocated to Stockholm inthe preceding six-month period. Ourinfrastructure makes it possible for us tobe a test-bed for services and we can openup marketing opportunities at manydifferent levels, contributing to the criticalmass of demand that the markets require.All this has helped enormously inmarketing the city as a place to live and work.

Looking ahead

Issues ahead of us include how we can getrich educational content into the home.We believe that users will want moregames, more movies and hopefully moreof a say in how they are governed. Allthese things come from dialogue betweenpeople and government.

• We have our fibre network; now all we need are more ideas for applications.

Stockholm Stockholm

People often work from home oneor two days a week andStockholm has invested in layingfibre out to the many tiny islandsto move companies away fromthe city centre

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With this in mind, the Stockholm Challenge Award was developed to connect with other cities. The ChallengeAward is a competition for user-driven application development. New ideas have to be innovative, user-friendly andmust show a clear social benefit. We now have a database of 4,000 ideas. In the end, we believe that investment in our own city has not only brought benefits to Stockholm, but will also bring benefits to the world.

The Stockholm archive

Our latest municipal project is about the city itself. We’ve built an online archive of historical views onto thenetwork so that students can see what it would have been like to livein Stockholm 100 years ago – not onlywhat the environment looked like, but also how people lived and worked.

This project has shown the benefits of inter-departmental collaboration:the city archive, administration andlibraries are all working together to see how schools and citizens can interact with the past. One archive project went back to the 13th and 14th centuries, focusing on a single district of the city. The knowledge base is derived from historical, political and social archives and one of the main objectives is that it should encourage a sense of belonging among those living in the city. It’s also timely: the city celebrated its 750th anniversary in 2002, an event that helped to raiseinterest in the project and vice versa.

e-learning – the lessons we learned!

Here are the five most important lessons we learned in deploying our e-learning programmes:

• Efficient technical support is crucial. Frustration with technical problems involving the computer, the network or the switches is completely unacceptable

• There must be enough capacity. If the net is down it kills interest

• Support in learning is necessary

• Try to arrange network structures that bring teachers together

• Remember that it’s not going to be easy! Never downplay the challenges involved

Stockholm

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With this in mind, the Stockholm Challenge Award was developed to connect with other cities. The ChallengeAward is a competition for user-driven application development. New ideas have to be innovative, user-friendly andmust show a clear social benefit. We now have a database of 4,000 ideas. In the end, we believe that investment in our own city has not only brought benefits to Stockholm, but will also bring benefits to the world.

The Stockholm archive

Our latest municipal project is about the city itself. We’ve built an online archive of historical views onto thenetwork so that students can see what it would have been like to livein Stockholm 100 years ago – not onlywhat the environment looked like, but also how people lived and worked.

This project has shown the benefits of inter-departmental collaboration:the city archive, administration andlibraries are all working together to see how schools and citizens can interact with the past. One archive project went back to the 13th and 14th centuries, focusing on a single district of the city. The knowledge base is derived from historical, political and social archives and one of the main objectives is that it should encourage a sense of belonging among those living in the city. It’s also timely: the city celebrated its 750th anniversary in 2002, an event that helped to raiseinterest in the project and vice versa.

e-learning – the lessons we learned!

Here are the five most important lessons we learned in deploying our e-learning programmes:

• Efficient technical support is crucial. Frustration with technical problems involving the computer, the network or the switches is completely unacceptable

• There must be enough capacity. If the net is down it kills interest

• Support in learning is necessary

• Try to arrange network structures that bring teachers together

• Remember that it’s not going to be easy! Never downplay the challenges involved

Stockholm

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MilanSilvio Scaglia, Chairman of e.Biscom, Milan

ilan, city of La Scala and DaVinci’s Last Supper, sits at thecentre of northern Italy’s roadand rail networks, straddling

lines of communication between east andwest. For Europeans travelling overland,Milan is the gateway to Italy.

Its dominant position in the physicalnetwork infrastructure of the country ismirrored by dominance in networks of adifferent kind. A fortuitous combination ofentrepreneurial daring, good fortune andtechnological innovation has put Milan atthe forefront of Italy’s broadbandrevolution, helping to push the countryinto the world’s top-performing DSL andfibre-optic broadband performers.

Fibre-optic came first. In 1999, ourcompany e.Biscom rode the internet wavewith the largest private-sector IPO inItalian history, raising 1.6bn euros in afloat that valued the company at 7.3bneuros. The cash was earmarked for acourageous rollout of 2,500 kilometres ofnew optical fibre, offering business andconsumer broadband cable services. Theonly threat came – as it has doneelsewhere – from the telco sector and its deployment of cheaper but slower DSL technology.

Over three years later, e.Biscom hasemerged from the IT downturn with risingsales and a burgeoning stock price. The

company has achieved this by maintaininga strong cable presence andsimultaneously beating the telco sector atits own game by rolling out a DSL servicethat is not only three times faster than themain competitor but has succeeded inmore than doubling subscription levels in12 months to 249,000 customers (with anARPU of over $900). This growth hascontinued in the context of strongnational demand; Italy as a whole sawover 525,000 new DSL lines taken up inthe first six months of 2003.

Template for a networked city

Although e.Biscom operates in the mainmetropolitan areas of Italy and furtherafield, Milan was the cradle of theoperation. This was not just forgeographical reasons, but also because of Milan’s unique characteristics as a city and community.

First, the city has a vibrant creativeindustry that drives an economy basedaround design, fashion, media and IT R&D.We set up e.Biscom knowing that Italyalready had the highest proportion inEurope of SMEs (Small and MediumEnterprises). These thrive in small officesand home offices and are often in the same multi-storey buildings as residential customers.

Second, Milan is characterised by a high

Mproportion of high-rise buildings,concentrating both domestic and businessdemand for services into a single address.We were aware that AEM, the local utility,had already developed an infrastructure of ducts for fibre optic cables, which hadnot been completed. We reasoned that,since the average number of residentialclients is 16 per building, the criticalparameter would be the adoption rate in these high-rise buildings. Since eachpresented a micro-market demandinganything from VOD and entertainmentthrough broadband voice and dataservices to traditional home internetservice provision, e.Biscom set its sights on a diverse offering.

When you have a single provider in thiscontext, it can have a dramatic effect on people’s lives. You live and work locallyand time is of the essence. Your provideroffers VOD, so you don’t have to wander the streets in search of a title to rent or buy. The same provider cables up your business, provides yourdigital TV service and helps you call yourmother. This makes for ease of use thatattracts creative companies; while the performance advantage helps to growinnovative operations.

IP to cut costs

From the beginning, e.Biscom’s servicewas based on pure IP (Internet Protocol).There would be no voice switches, nocables, no boxes. Milan’s micro-marketscan be served by an IP switch or router for a fixed cost; the costs then decrease as take-up in the same building, or cluster of buildings, increases. Given that penetration is now 20-25% of areas covered by the service and thatan average of four clients per building willbe connected, the company forecasts areturn of the initial investment in just overtwo-and-a-half years, reaching break-evenin 2005.

IP gave e.Biscom this competitiveadvantage over other telecoms companies,but there is another benefit for Milan. Thecompany uses IP to facilitate theintegrated management of voice, data andvideo using a packet-switched networkrunning over fibre-optic cable. This givesthe Milan operation two advantages –practically unlimited bandwidth andmaximum efficiency of its investments ininfrastructure. The fibre-optic IP networkhas enabled e.Biscom to integratepreviously separate functions and developinnovative, value-added services, whichcan be used simultaneously over a singleconnection that suit perfectly the physicalstructure and creative drive of

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MilanSilvio Scaglia, Chairman of e.Biscom, Milan

ilan, city of La Scala and DaVinci’s Last Supper, sits at thecentre of northern Italy’s roadand rail networks, straddling

lines of communication between east andwest. For Europeans travelling overland,Milan is the gateway to Italy.

Its dominant position in the physicalnetwork infrastructure of the country ismirrored by dominance in networks of adifferent kind. A fortuitous combination ofentrepreneurial daring, good fortune andtechnological innovation has put Milan atthe forefront of Italy’s broadbandrevolution, helping to push the countryinto the world’s top-performing DSL andfibre-optic broadband performers.

Fibre-optic came first. In 1999, ourcompany e.Biscom rode the internet wavewith the largest private-sector IPO inItalian history, raising 1.6bn euros in afloat that valued the company at 7.3bneuros. The cash was earmarked for acourageous rollout of 2,500 kilometres ofnew optical fibre, offering business andconsumer broadband cable services. Theonly threat came – as it has doneelsewhere – from the telco sector and its deployment of cheaper but slower DSL technology.

Over three years later, e.Biscom hasemerged from the IT downturn with risingsales and a burgeoning stock price. The

company has achieved this by maintaininga strong cable presence andsimultaneously beating the telco sector atits own game by rolling out a DSL servicethat is not only three times faster than themain competitor but has succeeded inmore than doubling subscription levels in12 months to 249,000 customers (with anARPU of over $900). This growth hascontinued in the context of strongnational demand; Italy as a whole sawover 525,000 new DSL lines taken up inthe first six months of 2003.

Template for a networked city

Although e.Biscom operates in the mainmetropolitan areas of Italy and furtherafield, Milan was the cradle of theoperation. This was not just forgeographical reasons, but also because of Milan’s unique characteristics as a city and community.

First, the city has a vibrant creativeindustry that drives an economy basedaround design, fashion, media and IT R&D.We set up e.Biscom knowing that Italyalready had the highest proportion inEurope of SMEs (Small and MediumEnterprises). These thrive in small officesand home offices and are often in the same multi-storey buildings as residential customers.

Second, Milan is characterised by a high

Mproportion of high-rise buildings,concentrating both domestic and businessdemand for services into a single address.We were aware that AEM, the local utility,had already developed an infrastructure of ducts for fibre optic cables, which hadnot been completed. We reasoned that,since the average number of residentialclients is 16 per building, the criticalparameter would be the adoption rate in these high-rise buildings. Since eachpresented a micro-market demandinganything from VOD and entertainmentthrough broadband voice and dataservices to traditional home internetservice provision, e.Biscom set its sights on a diverse offering.

When you have a single provider in thiscontext, it can have a dramatic effect on people’s lives. You live and work locallyand time is of the essence. Your provideroffers VOD, so you don’t have to wander the streets in search of a title to rent or buy. The same provider cables up your business, provides yourdigital TV service and helps you call yourmother. This makes for ease of use thatattracts creative companies; while the performance advantage helps to growinnovative operations.

IP to cut costs

From the beginning, e.Biscom’s servicewas based on pure IP (Internet Protocol).There would be no voice switches, nocables, no boxes. Milan’s micro-marketscan be served by an IP switch or router for a fixed cost; the costs then decrease as take-up in the same building, or cluster of buildings, increases. Given that penetration is now 20-25% of areas covered by the service and thatan average of four clients per building willbe connected, the company forecasts areturn of the initial investment in just overtwo-and-a-half years, reaching break-evenin 2005.

IP gave e.Biscom this competitiveadvantage over other telecoms companies,but there is another benefit for Milan. Thecompany uses IP to facilitate theintegrated management of voice, data andvideo using a packet-switched networkrunning over fibre-optic cable. This givesthe Milan operation two advantages –practically unlimited bandwidth andmaximum efficiency of its investments ininfrastructure. The fibre-optic IP networkhas enabled e.Biscom to integratepreviously separate functions and developinnovative, value-added services, whichcan be used simultaneously over a singleconnection that suit perfectly the physicalstructure and creative drive of

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the Milanese community and itsworkplaces. We can offer entertainment,commercial services such as videoconferencing, and other high-bandwidthapplications that would not be possibleover a standard DSL offering (generallythree or more times slower).

Entertainment as business driver

Entertainment services such as VOD anddigital TV are not only profit-centres intheir own right: they also carry a brandingadvantage that demystifies the technologyservice, drawing in the individual who in turn brings commercial custom in his wake.

Cable TV combined with VOD andbroadband internet (itself a rapidlygrowing entertainment medium) is acompelling offer. Technology companiescannot change their spots entirely,however, and e.Biscom’s successfulstrategy was initially to build JointVentures (JVs) with established operations.

Rai Click, for example, is a JV betweene.BisMedia (a wholly-owned e.Biscomcontent provider) and RAI, the Italian Stateowned broadcaster. This JV provides on-demand content on a commercial basis,with over 2,500 videos available throughTV and Web. Rai Click also supplies accesson a PC via ADSL (and, in the case ofFastWeb – e.Biscom’s operating company– customers (see panel) on television), toRAI’s current and archival programming offilms, fiction, TV shows, classical music,concerts and theatre. The customer canchoose between a fixed-fee subscriptionand a pay-per-view option.

Content companies, however, are growingincreasingly aware of the gate-keepingrole played by local network providers.This probably helped e.BisMedia to signagreements with leading contentproducers such as Universal Studios, 20th Century Fox, Dreamworks, DiscoveryChannel, BBC, MTV/Nickelodeon, UnitedFeatures, as well as complete channelofferings from companies including CNNand Cartoon Network. These companiessee innovative distribution (and VOD overIP can be an especially powerfulcombination), as a means of buildingpositive brand associations as well asgenerating additional revenue.

Entry into the digital broadcast marketmeans brushing up against new statutorybodies and legislation. In Italy, the mergerbetween TELE+ and Stream into the newsatellite pay-TV platform Sky Italia, and theconsequent ruling of the EU AntitrustCommission, means that e.Biscom will beable to complete its television offer withlive Serie A and Serie B soccer matches,starting from September 2003. On thebasis of the European Commission’sdecision, the premium content of the newsingle platform Sky Italia (mainly Serie Aand Serie B football matches, sportsevents and movies) will be purchasable bynon-satellite competitors at a ‘retail minus’price; that is, the price offered to the finalclient reduced by a percentage.

The power of telepresence

Video networking provides anotherexample of how IP over fibre optic cangenerate new applications. e.Biscom’sbroadband telecoms operator FastWeblaunched a videocoms service in the thirdquarter of 2002, making it available to all

its residential customers in Milan, Rome,Genoa, Turin, Naples and Bologna.

The technological features of the newservice and its applications in public,private, social and business environmentsmake it easier to manage or establish inbusinesses in Milan. TV-quality videoconferencing is a world away from themore familiar narrow/mid-band varietyand is a strong competitor to establishedsatellite linking technologies. Subscribersneed only a TV, touch-tone telephone(cordless, for preference) and a smallFastWeb TVcam video camera placed ontop of or next to the TV. The simplicitythat arises out of service integration isimmediately obvious: to make a video callyou simply press the asterisk key beforekeying the phone number.

Apart from opening up new opportunitiesfor person-to-person, videocoms can beused for a host of applications in thepublic sector. FastWeb technologysupports audio/video links betweenremote government agencies, publicbodies, schools and hospitals to permitsignificant enhancements in the quality ofpublic services as well as improved cost-effectiveness. Application opportunitiesinclude tele-education and e-learning(extra lessons from home), parent-teacher

communication and links betweengeographically distant schools.

There are also numerous applications intele-healthcare and e-health. Remotemedical consultations, healthcare services,transmission of patient records, samplesand x-rays are all possible without gettingout onto the road. Another growing areais remote security: the ability to monitoryour office, shop or studio from anotherlocation using high-definition CCTV.

The business model and partnerships/JVswe pioneered in Milan are all based onnew technology, which makes investmentmore efficient than traditional approaches.The city itself – its historic, physicalinfrastructure – helped to create thistechnology for the vital triple play oftelecoms-entertainment-internet, whichwe’ve driven to profit by maintainingservice, visibility and branding in each of the consumer and business sectors.Within those sectors, we maintain strongfocus and maximise market share. Theinvestment is very high, but the returnsare there and our quarterly returns aredemonstrating that we’re meeting the challenge.

FastWeb: triple play to home and business

FastWeb was originally a partnership withexisting local municipal utility providerAEM. In 2003 e.Biscom acquired AEM’sstake in the company and since then wehave driven the operation into a period ofrapidly increased growth and profitability,reporting an EBITDA of 40.1m euros in thesix months to June 2003 compared to5.5m euros in the first half of 2002.

Milan Milan

Fast Web technology supportsaudio/video links between remotegovernment agencies, publicbodies, schools and hospitals topermit significant enhancementsin the quality of public services aswell as cost-effectiveness

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the Milanese community and itsworkplaces. We can offer entertainment,commercial services such as videoconferencing, and other high-bandwidthapplications that would not be possibleover a standard DSL offering (generallythree or more times slower).

Entertainment as business driver

Entertainment services such as VOD anddigital TV are not only profit-centres intheir own right: they also carry a brandingadvantage that demystifies the technologyservice, drawing in the individual who in turn brings commercial custom in his wake.

Cable TV combined with VOD andbroadband internet (itself a rapidlygrowing entertainment medium) is acompelling offer. Technology companiescannot change their spots entirely,however, and e.Biscom’s successfulstrategy was initially to build JointVentures (JVs) with established operations.

Rai Click, for example, is a JV betweene.BisMedia (a wholly-owned e.Biscomcontent provider) and RAI, the Italian Stateowned broadcaster. This JV provides on-demand content on a commercial basis,with over 2,500 videos available throughTV and Web. Rai Click also supplies accesson a PC via ADSL (and, in the case ofFastWeb – e.Biscom’s operating company– customers (see panel) on television), toRAI’s current and archival programming offilms, fiction, TV shows, classical music,concerts and theatre. The customer canchoose between a fixed-fee subscriptionand a pay-per-view option.

Content companies, however, are growingincreasingly aware of the gate-keepingrole played by local network providers.This probably helped e.BisMedia to signagreements with leading contentproducers such as Universal Studios, 20th Century Fox, Dreamworks, DiscoveryChannel, BBC, MTV/Nickelodeon, UnitedFeatures, as well as complete channelofferings from companies including CNNand Cartoon Network. These companiessee innovative distribution (and VOD overIP can be an especially powerfulcombination), as a means of buildingpositive brand associations as well asgenerating additional revenue.

Entry into the digital broadcast marketmeans brushing up against new statutorybodies and legislation. In Italy, the mergerbetween TELE+ and Stream into the newsatellite pay-TV platform Sky Italia, and theconsequent ruling of the EU AntitrustCommission, means that e.Biscom will beable to complete its television offer withlive Serie A and Serie B soccer matches,starting from September 2003. On thebasis of the European Commission’sdecision, the premium content of the newsingle platform Sky Italia (mainly Serie Aand Serie B football matches, sportsevents and movies) will be purchasable bynon-satellite competitors at a ‘retail minus’price; that is, the price offered to the finalclient reduced by a percentage.

The power of telepresence

Video networking provides anotherexample of how IP over fibre optic cangenerate new applications. e.Biscom’sbroadband telecoms operator FastWeblaunched a videocoms service in the thirdquarter of 2002, making it available to all

its residential customers in Milan, Rome,Genoa, Turin, Naples and Bologna.

The technological features of the newservice and its applications in public,private, social and business environmentsmake it easier to manage or establish inbusinesses in Milan. TV-quality videoconferencing is a world away from themore familiar narrow/mid-band varietyand is a strong competitor to establishedsatellite linking technologies. Subscribersneed only a TV, touch-tone telephone(cordless, for preference) and a smallFastWeb TVcam video camera placed ontop of or next to the TV. The simplicitythat arises out of service integration isimmediately obvious: to make a video callyou simply press the asterisk key beforekeying the phone number.

Apart from opening up new opportunitiesfor person-to-person, videocoms can beused for a host of applications in thepublic sector. FastWeb technologysupports audio/video links betweenremote government agencies, publicbodies, schools and hospitals to permitsignificant enhancements in the quality ofpublic services as well as improved cost-effectiveness. Application opportunitiesinclude tele-education and e-learning(extra lessons from home), parent-teacher

communication and links betweengeographically distant schools.

There are also numerous applications intele-healthcare and e-health. Remotemedical consultations, healthcare services,transmission of patient records, samplesand x-rays are all possible without gettingout onto the road. Another growing areais remote security: the ability to monitoryour office, shop or studio from anotherlocation using high-definition CCTV.

The business model and partnerships/JVswe pioneered in Milan are all based onnew technology, which makes investmentmore efficient than traditional approaches.The city itself – its historic, physicalinfrastructure – helped to create thistechnology for the vital triple play oftelecoms-entertainment-internet, whichwe’ve driven to profit by maintainingservice, visibility and branding in each of the consumer and business sectors.Within those sectors, we maintain strongfocus and maximise market share. Theinvestment is very high, but the returnsare there and our quarterly returns aredemonstrating that we’re meeting the challenge.

FastWeb: triple play to home and business

FastWeb was originally a partnership withexisting local municipal utility providerAEM. In 2003 e.Biscom acquired AEM’sstake in the company and since then wehave driven the operation into a period ofrapidly increased growth and profitability,reporting an EBITDA of 40.1m euros in thesix months to June 2003 compared to5.5m euros in the first half of 2002.

Milan Milan

Fast Web technology supportsaudio/video links between remotegovernment agencies, publicbodies, schools and hospitals topermit significant enhancementsin the quality of public services aswell as cost-effectiveness

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FastWeb provides voice, broadbandinternet connectivity, data transmissionand video services in all existing formats:broadcast (ie traditional free-to-air TV),multicast (ie pay TV and pay-per-view) andunicast (ie video-on-demand and fullinteractive TV). Access to the end-user isprovided directly through fibre optics(with Fibre-to-the-Home/Fibre-to-the-Office solutions), or through xDSLtechnology over unbundled lines.

The technological solution and the fibre-optic infrastructure support much fasteraccess speeds than those currentlyavailable on the market: up to 10 Mbit/supstream and downstream for residentialcustomers and virtually unlimited speedsfor business subscribers. Also, the use ofthe IP protocol has allowed thedevelopment of a DSL service in citieswhere the fibre-optic network is still beingrolled out, thus enabling advancedtelecommunication services, at receptionspeeds of up to 4 Mbit/s and transmissionspeeds of up to 0.512 Mbit/s, much fasterthan those delivered by other DSLoperators in Italy.

As well as providing faster accesscompared to the competition, FastWeb isconstantly focused on the development ofnew value added services. The residentialoffer, on top of voice and broadbandinternet services, includes:

• Videocommunications via the TV set • FastWeb TV – this service allows

subscribers to access the main Italian broadcast TV channels in digital format, plus a selection of satellite channels and a video-on-demand service. The latter offers more than 3,000 e.BisMedia and Rai

Click titles on-demand. There’s also an EPG (Electronic Programme Guide) and a virtual network video recording system (VideoRec) which allows the recording of programmes without the use of videotapes or VCRs. FastWeb TV is provided over its network without the need of antennas, satellite dishes or decoders

• Wi-Fi – this service allows customers to take full advantage of FastWeb’s bandwidth, surfing the net rapidly from any point at home without having to install additional cabling

There are many business applications onoffer, but the most requested servicesinclude VPN (Virtual Private Networks) andBusiness to Employee (B2E) services.FastWeb offers connectivity betweendifferent branches at speeds of up to 1Gb/s, and from employees’ premises to thecorporate LAN at speeds of at least 2 Mb/son FastWeb’s network, with no need fordedicated links.

Business users can also benefit from video-conferencing systems, web hosting(including audio-visual streaming services),and a number of bandwidth solutionsfrom bandwidth-on-demand to SDH highcapacity lines at speeds of up 155Mb/s.

Milan

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FastWeb provides voice, broadbandinternet connectivity, data transmissionand video services in all existing formats:broadcast (ie traditional free-to-air TV),multicast (ie pay TV and pay-per-view) andunicast (ie video-on-demand and fullinteractive TV). Access to the end-user isprovided directly through fibre optics(with Fibre-to-the-Home/Fibre-to-the-Office solutions), or through xDSLtechnology over unbundled lines.

The technological solution and the fibre-optic infrastructure support much fasteraccess speeds than those currentlyavailable on the market: up to 10 Mbit/supstream and downstream for residentialcustomers and virtually unlimited speedsfor business subscribers. Also, the use ofthe IP protocol has allowed thedevelopment of a DSL service in citieswhere the fibre-optic network is still beingrolled out, thus enabling advancedtelecommunication services, at receptionspeeds of up to 4 Mbit/s and transmissionspeeds of up to 0.512 Mbit/s, much fasterthan those delivered by other DSLoperators in Italy.

As well as providing faster accesscompared to the competition, FastWeb isconstantly focused on the development ofnew value added services. The residentialoffer, on top of voice and broadbandinternet services, includes:

• Videocommunications via the TV set • FastWeb TV – this service allows

subscribers to access the main Italian broadcast TV channels in digital format, plus a selection of satellite channels and a video-on-demand service. The latter offers more than 3,000 e.BisMedia and Rai

Click titles on-demand. There’s also an EPG (Electronic Programme Guide) and a virtual network video recording system (VideoRec) which allows the recording of programmes without the use of videotapes or VCRs. FastWeb TV is provided over its network without the need of antennas, satellite dishes or decoders

• Wi-Fi – this service allows customers to take full advantage of FastWeb’s bandwidth, surfing the net rapidly from any point at home without having to install additional cabling

There are many business applications onoffer, but the most requested servicesinclude VPN (Virtual Private Networks) andBusiness to Employee (B2E) services.FastWeb offers connectivity betweendifferent branches at speeds of up to 1Gb/s, and from employees’ premises to thecorporate LAN at speeds of at least 2 Mb/son FastWeb’s network, with no need fordedicated links.

Business users can also benefit from video-conferencing systems, web hosting(including audio-visual streaming services),and a number of bandwidth solutionsfrom bandwidth-on-demand to SDH highcapacity lines at speeds of up 155Mb/s.

Milan

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WroclawSlawomir Najnigier, Deputy Mayor of Wroclaw

y city Wroclaw is in Poland, the capital of Lower Silesia,with a history going back over1,000 years. Following the

collapse of communism in 1989, Wroclawhas been making up for lost time. Externalinvestment has multiplied enormously: in1989, there were only 17 companies witha foreign capital base: now there arealmost 2300.

The country is politically stable, has several industry sectors ranked in the top five in European economic tables,enjoys an international reputation forinnovation and has established newbenchmarks in several IT areas.Fashionable and popular, Wroclaw enjoys growing international recognition.

All these advances have taken placeagainst a background of increasingconnectivity, driven by targetedprogrammes, a strong skills base, theprovision of a broadband infrastructureand assiduous promotion.

First, the programmes. ‘e-Wroclaw – Cityof the Future’ is part of the WroclawEconomic Development SupportProgramme and is a good indicator of ourobjectives. The slogan ‘City of the Future’highlights our belief that state-of-the-artdata technologies have a direct impactupon local economic development. Those

who fail to adapt to the data revolutionwill be eliminated from the game.

Programmes alone are not enough: youalso need the skills. Wroclaw has them.Not only are our academic standards well-known throughout Poland and elsewhere,we also have a fund of new ideas, whichlocal entrepreneurs (there are around 400IT companies in Wroclaw) are quick to putinto practise.

Broadband infrastructure has been putinto place, largely because the Wroclawregional authority itself has, with over 350departments and nearly 20,000 staff, anurgent need for it. No surprise, then, thatthe e-Wroclaw programme is principallyconcerned with municipal operations andmanagement. Initiatives range from theconstruction of e-Administration, e-Education, e-Transport, and e-Securityplatforms, to providing support to localbusiness (e-Services). Local governmentcannot, of course, provide the answers (orthe services) which rightly come from theindependent sector – nor can it provide allthe capital that that sector requires – butit can provide support and help to speedthings along.

Hence the provision of broadbandinfrastructure, without which none ofthese initiatives could be put into practice.The city has financed the building of the

Mlargest local communication system(TETRA) in the country. At present TETRA isset to become the national standard formunicipal and police services. Theauthorities in Wroclaw were also the firstin Poland to initiate the launch of abroadband multimedia network (describedin more detail below). Broadband serviceinfrastructures will soon, we believe, be aneveryday feature of city life, just like waterand sewage systems.

Finally, self-promotion. We’ve found thatnew media distribution is the cheapestand most effective. Our website(www.wroclaw.pl) is the most popularmunicipal site in Poland, with around250,000 visitors per month, including 15% from abroad.

E-Wro Municipal Data Network

Our flagship project is undoubtedly the E-Wro Municipal Data Network. On itsown initiative, the city launched a state-of-the-art municipal infrastructure projectwith the objective of building abroadband multimedia network (METROor MAN).

E-Wro is a good example of local drive and ingenuity. MiejskiePrzedsilbiorstwo Energetyki CieplnejWroclaw S.A. (MPEC Wroclaw S.A.,

owned 56% by the city and the firstheating company quoted on the WarsawStock Exchange) is responsible forproviding heating to 60% of theapartments in Wroclaw. Following thedisastrous floods of 1997, MPEC WroclawS.A. had to restore and re-engineer partsof the system and, with typical localingenuity and enterprise, decided to usethe cables (used for system monitoring) toprovide broadband services.

A local consulting firm provided theexpertise needed for building, integratingand commissioning the network, whichwent live in March 2003. The services,including permanent and fast internetaccess, are affordable at around 12.5 euros per month and between Julyand October 2003 contracts were signedwith over 3,100 customers (out of 7,000homes wired). We plan to extend the E-Wro network to approximately 40,000 flats by 2005.

What makes this project extraordinary isthat it’s comparable with similar projectstaking place in the best-developedcountries of the world. We may be onlythe fourth largest city in Poland, but wehave always been an important economic,academic and cultural centre. Wroclawneeds to compete with other cities and it’spleasing to realise that, in many places,projects like this are still confined to the

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WroclawSlawomir Najnigier, Deputy Mayor of Wroclaw

y city Wroclaw is in Poland, the capital of Lower Silesia,with a history going back over1,000 years. Following the

collapse of communism in 1989, Wroclawhas been making up for lost time. Externalinvestment has multiplied enormously: in1989, there were only 17 companies witha foreign capital base: now there arealmost 2300.

The country is politically stable, has several industry sectors ranked in the top five in European economic tables,enjoys an international reputation forinnovation and has established newbenchmarks in several IT areas.Fashionable and popular, Wroclaw enjoys growing international recognition.

All these advances have taken placeagainst a background of increasingconnectivity, driven by targetedprogrammes, a strong skills base, theprovision of a broadband infrastructureand assiduous promotion.

First, the programmes. ‘e-Wroclaw – Cityof the Future’ is part of the WroclawEconomic Development SupportProgramme and is a good indicator of ourobjectives. The slogan ‘City of the Future’highlights our belief that state-of-the-artdata technologies have a direct impactupon local economic development. Those

who fail to adapt to the data revolutionwill be eliminated from the game.

Programmes alone are not enough: youalso need the skills. Wroclaw has them.Not only are our academic standards well-known throughout Poland and elsewhere,we also have a fund of new ideas, whichlocal entrepreneurs (there are around 400IT companies in Wroclaw) are quick to putinto practise.

Broadband infrastructure has been putinto place, largely because the Wroclawregional authority itself has, with over 350departments and nearly 20,000 staff, anurgent need for it. No surprise, then, thatthe e-Wroclaw programme is principallyconcerned with municipal operations andmanagement. Initiatives range from theconstruction of e-Administration, e-Education, e-Transport, and e-Securityplatforms, to providing support to localbusiness (e-Services). Local governmentcannot, of course, provide the answers (orthe services) which rightly come from theindependent sector – nor can it provide allthe capital that that sector requires – butit can provide support and help to speedthings along.

Hence the provision of broadbandinfrastructure, without which none ofthese initiatives could be put into practice.The city has financed the building of the

Mlargest local communication system(TETRA) in the country. At present TETRA isset to become the national standard formunicipal and police services. Theauthorities in Wroclaw were also the firstin Poland to initiate the launch of abroadband multimedia network (describedin more detail below). Broadband serviceinfrastructures will soon, we believe, be aneveryday feature of city life, just like waterand sewage systems.

Finally, self-promotion. We’ve found thatnew media distribution is the cheapestand most effective. Our website(www.wroclaw.pl) is the most popularmunicipal site in Poland, with around250,000 visitors per month, including 15% from abroad.

E-Wro Municipal Data Network

Our flagship project is undoubtedly the E-Wro Municipal Data Network. On itsown initiative, the city launched a state-of-the-art municipal infrastructure projectwith the objective of building abroadband multimedia network (METROor MAN).

E-Wro is a good example of local drive and ingenuity. MiejskiePrzedsilbiorstwo Energetyki CieplnejWroclaw S.A. (MPEC Wroclaw S.A.,

owned 56% by the city and the firstheating company quoted on the WarsawStock Exchange) is responsible forproviding heating to 60% of theapartments in Wroclaw. Following thedisastrous floods of 1997, MPEC WroclawS.A. had to restore and re-engineer partsof the system and, with typical localingenuity and enterprise, decided to usethe cables (used for system monitoring) toprovide broadband services.

A local consulting firm provided theexpertise needed for building, integratingand commissioning the network, whichwent live in March 2003. The services,including permanent and fast internetaccess, are affordable at around 12.5 euros per month and between Julyand October 2003 contracts were signedwith over 3,100 customers (out of 7,000homes wired). We plan to extend the E-Wro network to approximately 40,000 flats by 2005.

What makes this project extraordinary isthat it’s comparable with similar projectstaking place in the best-developedcountries of the world. We may be onlythe fourth largest city in Poland, but wehave always been an important economic,academic and cultural centre. Wroclawneeds to compete with other cities and it’spleasing to realise that, in many places,projects like this are still confined to the

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drawing board. E-Wro was innovative,turned a natural disaster to our advantageand, most important of all, was entirelyconceived and carried out by the local community.

E-Wro is not just about shuttling databack and forth. We now have evidence tosupport the theory that datainfrastructures act as catalysts for newapplications. Schools located in the E-Wrocatchment area, for example, are using theservice to create e-mail accounts and web-sites, as well as to swap information andset up local networks. We expect most ofWroclaw’s 300 schools and educationalinstitutions to be connected to thenetwork by the end of 2003.

Another example can be found inneighbourhood security. Wroclaw has aTETRA-based communication system,which provides the foundations for the e-Security Programme, but it was thebroadband infrastructure that made itpossible to install a CCTV camera networkto monitor housing estates. Withoutaccess to a network such as E-Wro,projects of this kind would have beenprohibitively expensive.

Projects in Wroclaw use a range ofdifferent financial models to get off the ground. Some projects, like e-Administration, e-School or e-Transportare financed by the city and, in somecases, from European Union grants. Inthese cases, the City has direct status andinfluence. Other projects, including the E-Wro network, involve the independentsector. So far the implementation of thisbroadband network has not cost the city a single zloty.

Non-commercial projects are not ignored.The City of Wroclaw actively researchesthe possibilities of securing – andcanvasses for – EU funding for deservingcauses. We have been using these fundsfor years for expanding the road andsewage system – we now apply ourexperience in raising such finance to thefunding of IT projects.

We further believe that private,commercial and public-sector projectsshould not be carried out in isolation. For example, by developing the e-Administration programme, the city notonly provides new services, but alsoreduces the business risk of the METROnetwork by acting as a consumer. It worksthe other way too – the companydeveloping the network indirectly enablesmany non-commercial schemes. Theburden of developing IT is thereforespread between different organisationsand sectors. The benefits are shared by all.

One thing is paramount: the E-Wronetwork has to follow the market andbow to market forces. Its primary task isnot to meet the requirements of educationand administration, but to providecommercial broadband services toWroclaw residents. Before the networkwas built, we studied and developedcareful business plans. It’s a little early tospeak of a commercial success – as I havealready explained, the local authoritieshave not spent a single zloty on theproject – but it's just as important for usto see that the services are being used.Take-up of the services has alreadyexceeded our original projections.

Computer-based administration platformscan be rather incestuous affairs;

government departments can get carriedaway by new internal applications,forgetting the true end-user – the citizen.In the third quarter of 2003, Poland beganthe task of introducing legislation toenable and promote online services toease the administrative burden on thepublic. Without such appropriatelegislation, we could waste the entirepotential of IT. It’s a myth that the publicis indifferent: most inhabitants of Wroclaware behind us on this and, wherever the E-Wro network offers free line installation(with no obligation to sign a serviceprovision contract immediately), over 80%of inhabitants place an order. The demandis proven.

Wroclaw plays an active role in regionaldevelopment, so these projects are havingan impact way beyond the boundaries ofWroclaw City limits. Early 2004 should seethe launch of the Wroclaw TechnologyPark (with the city as principalshareholder), while the WroclawTechnology Transfer Centre is active atWroclaw Technical University. Institutionssuch as these, as well as other colleges,chambers of commerce and industrialbodies are invited to sit on the Board ofthe e-Wroclaw Programme. It’s a primeboard objective to ensure that innovationsare propagated throughout the region; a regional conference devoted to online

multimedia promotion is just one recent example.

I said at the start of this essay that we arebuilding an international reputation and,again, the E-Wro network is a greatexample – a project on a truly Europeanscale, watched with interest by ourcolleagues throughout the internationalcommunity and matched by very fewinitiatives elsewhere. I’m convinced thatthe developments taking place in Wroclaware a taste of the future: witness the levelof attention paid to the city and the E-Wroproject in particular. Other cities in Polandare eager to benefit from our experienceand plan similar investments - and whatbetter example than a good plan,successfully implemented? We can onlyhope that the number of connected citieswill grow steadily in future.

Finally, I am delighted that you have taken the time to read about what we’ve been up to and for giving me thisopportunity to present our town. I inviteyou to Wroclaw – a City of the Future.And, if you cannot visit us in the flesh, you can always pay us a virtual visit over the internet!

Important addresses:

City of Wroclaw: www.wroclaw.pl

MPEC S.A.: www.mpec.wroc.pl

Miejskie Sieci Informatyczne ‘e-wro’:www.e-wro.pl

‘E-Wro’ operator: www.dcg.pl

Wroclaw Wroclaw

E-Wro is a project on a trulyEuropean scale, watched withinterest by our colleaguesthroughout the internationalcommunity

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drawing board. E-Wro was innovative,turned a natural disaster to our advantageand, most important of all, was entirelyconceived and carried out by the local community.

E-Wro is not just about shuttling databack and forth. We now have evidence tosupport the theory that datainfrastructures act as catalysts for newapplications. Schools located in the E-Wrocatchment area, for example, are using theservice to create e-mail accounts and web-sites, as well as to swap information andset up local networks. We expect most ofWroclaw’s 300 schools and educationalinstitutions to be connected to thenetwork by the end of 2003.

Another example can be found inneighbourhood security. Wroclaw has aTETRA-based communication system,which provides the foundations for the e-Security Programme, but it was thebroadband infrastructure that made itpossible to install a CCTV camera networkto monitor housing estates. Withoutaccess to a network such as E-Wro,projects of this kind would have beenprohibitively expensive.

Projects in Wroclaw use a range ofdifferent financial models to get off the ground. Some projects, like e-Administration, e-School or e-Transportare financed by the city and, in somecases, from European Union grants. Inthese cases, the City has direct status andinfluence. Other projects, including the E-Wro network, involve the independentsector. So far the implementation of thisbroadband network has not cost the city a single zloty.

Non-commercial projects are not ignored.The City of Wroclaw actively researchesthe possibilities of securing – andcanvasses for – EU funding for deservingcauses. We have been using these fundsfor years for expanding the road andsewage system – we now apply ourexperience in raising such finance to thefunding of IT projects.

We further believe that private,commercial and public-sector projectsshould not be carried out in isolation. For example, by developing the e-Administration programme, the city notonly provides new services, but alsoreduces the business risk of the METROnetwork by acting as a consumer. It worksthe other way too – the companydeveloping the network indirectly enablesmany non-commercial schemes. Theburden of developing IT is thereforespread between different organisationsand sectors. The benefits are shared by all.

One thing is paramount: the E-Wronetwork has to follow the market andbow to market forces. Its primary task isnot to meet the requirements of educationand administration, but to providecommercial broadband services toWroclaw residents. Before the networkwas built, we studied and developedcareful business plans. It’s a little early tospeak of a commercial success – as I havealready explained, the local authoritieshave not spent a single zloty on theproject – but it's just as important for usto see that the services are being used.Take-up of the services has alreadyexceeded our original projections.

Computer-based administration platformscan be rather incestuous affairs;

government departments can get carriedaway by new internal applications,forgetting the true end-user – the citizen.In the third quarter of 2003, Poland beganthe task of introducing legislation toenable and promote online services toease the administrative burden on thepublic. Without such appropriatelegislation, we could waste the entirepotential of IT. It’s a myth that the publicis indifferent: most inhabitants of Wroclaware behind us on this and, wherever the E-Wro network offers free line installation(with no obligation to sign a serviceprovision contract immediately), over 80%of inhabitants place an order. The demandis proven.

Wroclaw plays an active role in regionaldevelopment, so these projects are havingan impact way beyond the boundaries ofWroclaw City limits. Early 2004 should seethe launch of the Wroclaw TechnologyPark (with the city as principalshareholder), while the WroclawTechnology Transfer Centre is active atWroclaw Technical University. Institutionssuch as these, as well as other colleges,chambers of commerce and industrialbodies are invited to sit on the Board ofthe e-Wroclaw Programme. It’s a primeboard objective to ensure that innovationsare propagated throughout the region; a regional conference devoted to online

multimedia promotion is just one recent example.

I said at the start of this essay that we arebuilding an international reputation and,again, the E-Wro network is a greatexample – a project on a truly Europeanscale, watched with interest by ourcolleagues throughout the internationalcommunity and matched by very fewinitiatives elsewhere. I’m convinced thatthe developments taking place in Wroclaware a taste of the future: witness the levelof attention paid to the city and the E-Wroproject in particular. Other cities in Polandare eager to benefit from our experienceand plan similar investments - and whatbetter example than a good plan,successfully implemented? We can onlyhope that the number of connected citieswill grow steadily in future.

Finally, I am delighted that you have taken the time to read about what we’ve been up to and for giving me thisopportunity to present our town. I inviteyou to Wroclaw – a City of the Future.And, if you cannot visit us in the flesh, you can always pay us a virtual visit over the internet!

Important addresses:

City of Wroclaw: www.wroclaw.pl

MPEC S.A.: www.mpec.wroc.pl

Miejskie Sieci Informatyczne ‘e-wro’:www.e-wro.pl

‘E-Wro’ operator: www.dcg.pl

Wroclaw Wroclaw

E-Wro is a project on a trulyEuropean scale, watched withinterest by our colleaguesthroughout the internationalcommunity

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ManchesterDave Carter, Director of Manchester Digital Development Agency

he success of modern Manchesteris founded on a long and proudhistory. Manchester was the firstcity of the Industrial Revolution –

the first city in the world to experience theshock of rapid industrialisation. Within thespace of little more than a century, it grewfrom a small mercantile centre to becomethe second largest city in England, with aglobal recognition of its ‘Made inManchester’ brand. The cradle of theIndustrial Revolution, it remains abreeding ground for innovation andenterprise.

Manchester was founded as a Romansettlement and was a historic commercialand trading centre for 400 years beforethe Industrial Revolution. It has a proudinternational history dating back to thesettlement of Flemish weavers in the cityin the 14th century, through Manchestermerchants playing an active role in theHanseatic League, to its role as aninternational centre for political andeconomic thought in the 19th century,hosting both Adam Smith and Karl Marx.By the middle of the 20th century,Manchester had already provided theworld with the first steam engine andpassenger railway system, split the atomand started the IT revolution with theinvention of the first computer with astored programme.

At its height, Manchester controlled 80%

of world trade in textiles, and from thisbase in textile manufacture and trade theeconomy diversified into engineering,chemicals, publishing, legal services andbanking. These are still the cornerstones ofthe regional economy, together with thefastest-growing internet and new mediasector in the UK outside of London.During this period of wealth creation thefoundations of the city’s traditions andinstitutions were laid. In education,Manchester has the largest studentcampus in the UK, with 60,000 studentsand three universities within one kilometreof the city centre; in health, teachinghospitals and research institutes; and intransport, it has the world’s firstpassenger railway and now one of theworld's top-ten airports. The foundationsof the city’s cultural life were also laidwith Manchester having England’s firstpublic library, the first professionalorchestra, the first repertory theatrecompany and a series of historic museumsand art galleries.

A new strategy for Manchester asa post-industrial city

The challenge for Manchester now is tocombine sustainable economic growthwith the delivery of real local benefits tothe city’s residents, in terms ofemployment and quality of life. Theimpact of globalisation and the newknowledge-based economy presents new

Tchallenges where traditional approachesto urban regeneration will not necessarilyensure sustainable economic growth orthat social exclusion can be tackledeffectively. Alongside a continuedcommitment to physical regeneration,and the development of the newinfrastructures required for the knowledgeeconomy and the information society, newapproaches need to be developed toconnect opportunities with needs and re-engage excluded communities witheconomic and civic life.

In response to this situation, the city ispursuing parallel economic strategies. Thecity has seized the opportunity tostrengthen its position as the regionalcapital of the North-West of England withnew investment, including:

• Transport infrastructure: with the continuing expansion of Manchester Airport and the extension of the new Metrolink tram system

• City-centre regeneration, particularly following the impact of the terrorist bomb in June 1996 which destroyed part of the centre, and the development of a new retail core including the world’s largest Marks & Spencer store

• New residential developments, both in the city centre itself and at the Castlefield industrial canal site,

increasing the number of people living in the city centre from 600 in 1989 to more than 6,000 in 2000, with associated leisure facilities

• Business tourism: with new hotels and a new international exhibition and conference centre

• Cultural facilities: the opening of the new international concert hall – the Bridgewater Hall, the City Art Gallery Extension and the renovation of the Royal Exchange Theatre

• Our Sports City initiative where, in 2002, Manchester hosted the Commonwealth Games with a new national stadium, new national Velodrome and Swimming Centre

The primary objective is to ensure thatthere is real benefit provided to localcommunities while, at the same time,assisting the city to emerge as a keyEuropean Regional Centre which is able toattract and deliver investment and majorsporting and cultural events. The CityCouncil has taken the lead in channellingresources towards area regeneration andlocal benefit strategies. These aim todevelop sustainable local economiccommunities linked into the opportunitiesprovided by the regional centre. We alsoneed to be able to identify areas forpotential economic growth which willcontribute positively to local employment

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ManchesterDave Carter, Director of Manchester Digital Development Agency

he success of modern Manchesteris founded on a long and proudhistory. Manchester was the firstcity of the Industrial Revolution –

the first city in the world to experience theshock of rapid industrialisation. Within thespace of little more than a century, it grewfrom a small mercantile centre to becomethe second largest city in England, with aglobal recognition of its ‘Made inManchester’ brand. The cradle of theIndustrial Revolution, it remains abreeding ground for innovation andenterprise.

Manchester was founded as a Romansettlement and was a historic commercialand trading centre for 400 years beforethe Industrial Revolution. It has a proudinternational history dating back to thesettlement of Flemish weavers in the cityin the 14th century, through Manchestermerchants playing an active role in theHanseatic League, to its role as aninternational centre for political andeconomic thought in the 19th century,hosting both Adam Smith and Karl Marx.By the middle of the 20th century,Manchester had already provided theworld with the first steam engine andpassenger railway system, split the atomand started the IT revolution with theinvention of the first computer with astored programme.

At its height, Manchester controlled 80%

of world trade in textiles, and from thisbase in textile manufacture and trade theeconomy diversified into engineering,chemicals, publishing, legal services andbanking. These are still the cornerstones ofthe regional economy, together with thefastest-growing internet and new mediasector in the UK outside of London.During this period of wealth creation thefoundations of the city’s traditions andinstitutions were laid. In education,Manchester has the largest studentcampus in the UK, with 60,000 studentsand three universities within one kilometreof the city centre; in health, teachinghospitals and research institutes; and intransport, it has the world’s firstpassenger railway and now one of theworld's top-ten airports. The foundationsof the city’s cultural life were also laidwith Manchester having England’s firstpublic library, the first professionalorchestra, the first repertory theatrecompany and a series of historic museumsand art galleries.

A new strategy for Manchester asa post-industrial city

The challenge for Manchester now is tocombine sustainable economic growthwith the delivery of real local benefits tothe city’s residents, in terms ofemployment and quality of life. Theimpact of globalisation and the newknowledge-based economy presents new

Tchallenges where traditional approachesto urban regeneration will not necessarilyensure sustainable economic growth orthat social exclusion can be tackledeffectively. Alongside a continuedcommitment to physical regeneration,and the development of the newinfrastructures required for the knowledgeeconomy and the information society, newapproaches need to be developed toconnect opportunities with needs and re-engage excluded communities witheconomic and civic life.

In response to this situation, the city ispursuing parallel economic strategies. Thecity has seized the opportunity tostrengthen its position as the regionalcapital of the North-West of England withnew investment, including:

• Transport infrastructure: with the continuing expansion of Manchester Airport and the extension of the new Metrolink tram system

• City-centre regeneration, particularly following the impact of the terrorist bomb in June 1996 which destroyed part of the centre, and the development of a new retail core including the world’s largest Marks & Spencer store

• New residential developments, both in the city centre itself and at the Castlefield industrial canal site,

increasing the number of people living in the city centre from 600 in 1989 to more than 6,000 in 2000, with associated leisure facilities

• Business tourism: with new hotels and a new international exhibition and conference centre

• Cultural facilities: the opening of the new international concert hall – the Bridgewater Hall, the City Art Gallery Extension and the renovation of the Royal Exchange Theatre

• Our Sports City initiative where, in 2002, Manchester hosted the Commonwealth Games with a new national stadium, new national Velodrome and Swimming Centre

The primary objective is to ensure thatthere is real benefit provided to localcommunities while, at the same time,assisting the city to emerge as a keyEuropean Regional Centre which is able toattract and deliver investment and majorsporting and cultural events. The CityCouncil has taken the lead in channellingresources towards area regeneration andlocal benefit strategies. These aim todevelop sustainable local economiccommunities linked into the opportunitiesprovided by the regional centre. We alsoneed to be able to identify areas forpotential economic growth which willcontribute positively to local employment

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opportunities and to social inclusion. It ishere that ‘new’ industries, such as the artsand cultural industries and theinternet/New Media sector may have animportant role to play in the structure ofthe economy of the 21st century.

Manchester's vision for the future

Manchester’s vision for the future, asexpressed in its ‘City Pride’ Prospectus, isto be a European regional capital – centrefor investment growth, rather thanregional aid, and an international city ofoutstanding commercial, cultural andcreative potential. The city will be an areadistinguished by the quality of life andsense of wellbeing enjoyed by itsresidents, where all will have theopportunity to participate in and benefitfrom the investment and development oftheir city and, therefore, live in trulysustainable communities.

Our aims and objectives also characterisewhat has become an increasinglysophisticated role played by the CityCouncil. We continue to be a majordeliverer of services; and as anorganisation employing over 20,000people, with gross expenditure of some£1.4 billion, a significant player in thelocal economy. Increasingly, however, ourrole has become that of coordinator andfacilitator; that of bringing togetherdifferent public-sector organisations andensuring that they deliver servicestogether in an integrated way, linkingthem with the communities they serve.The City Council also aims to provideleadership to develop shared visions andthe public/private/community partnershipsthat are required to deliver them.

There are also other challenges to face upto in terms of achieving our vision. Someare practical and not all are in our control.We are, for example, in European termsfor example, a peripheral region and,because of this, transport links with therest of the world are a key priority. This ispartly why the airport is of such strategicimportance but also why the upgrading ofrail links is essential to our future.Manchester Airport has 95 airlines serving175 destinations and employs, directly andindirectly, over 50,000 people. It continuesto grow, serving over 18 millionpassengers a year since the second runwayopened in February 2001 and withpredictedgrowth to over 40 million passengers in the next 15 years.

Sustaining economic growth andconnecting the new opportunities thuscreated with the needs of local people,many of whom face poverty and socialexclusion, underpins all aspects of thecity’s regeneration strategy. One of thebiggest causes of poverty isunemployment and low-wageemployment, and that is why job creationis such a high priority. Where will the jobsof the future be? Some traditional sectors,like construction, are key, while others, liketextiles, chemicals and engineering, willremain significant. But jobs that have beenlost from manufacturing in these sectorsare not likely to be replaced. Quantum-inspired electronic devices, convergentmedia technologies, nanotechnology,biotechnology and other innovation-leddevelopments can create a veryconsiderable number of jobs. Similarly, theregion’s strengths in environmentalmanagement are another key asset. Thecleaning up of more than 100 years of

industrial pollution regionally andnationally in the UK, let alone the rest ofthe world, is a massive task in itself andwill create many jobs.

Manchester will be concentrating oncreativity, innovation and technology butwe recognise that so too will many othercities and regions in similar positions allover the world. This means that whileManchester continues to highlight itsparticular strengths, building upontextiles, computers, broadcasting,publishing and football, it is now lookingforward to the new entrepreneurial spiritcoming from the creative and culturalsectors, from its local universities and fromthe new enterprise partnerships that theCity Council is helping to facilitate.

Manchester as a creative city

There is a strong tradition of creativity,pioneering and invention in Manchester.This creativity is taking new forms and ispart of the experience of Manchestertoday: the conversion of redundantwarehouses by innovative propertydevelopers and local architects intoaccommodation for design, software andmultimedia companies; the clubs wheremany of the UK’s leading music groupshave emerged; the café bars andrestaurants fitted out by young designers.Manchester is a seedbed of youthenterprise and creativity. The presence ofthe universities is a major influence, and itis essential that the city should not onlyattract students but also provideopportunities for them to remain. Culturalindustries are important in their own right;they are also a source of creative capital,of ideas and communication, which is sovital to the future.

Manchester has a significant and growinglevel of employment in film, media, music,authorship, architecture and design and ininternet services. The largest enterprisesare mainly in the field of television andpublishing. The most significant of these isGranada TV, which is the UK’s largestprivate sector television company and partof a large global enterprise. Manchester isthe only regional city with a role innational newspaper publication. Since the1950s’ Manchester has been at theforefront of British pop and dance music,ranging nowadays from the commercialsuccess of local bands like Simply Red andOasis to the dynamic underground dancescene that has sent Manchester-mademusic and DJs across the world.

These new growth sectors are in theposition of maintaining their local positionand competing for access into globaleconomies. The fastest growth is beingseen in the design-based sectors (fashion,buildings and products), which are lessdominated by large enterprises becausesmall businesses are more able to accessglobal market opportunities directly.Recent research in the city has confirmedthat employment in the cultural industriesin Manchester is significant and that itpromises future growth. This is why weare trying to create one of the world’sleading ‘post-industrial’ sustainable cities,based on the new technologies andindustries of the future. Manchester is, notfor the first time, reinventing itself.

Central to this is the need to acceleratethe transition to a knowledge-basedeconomy by stimulating creativity andinnovation across the local and regionaleconomy. We need to be at the forefrontof a cutting-edge digital culture, based on

Manchester Manchester

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opportunities and to social inclusion. It ishere that ‘new’ industries, such as the artsand cultural industries and theinternet/New Media sector may have animportant role to play in the structure ofthe economy of the 21st century.

Manchester's vision for the future

Manchester’s vision for the future, asexpressed in its ‘City Pride’ Prospectus, isto be a European regional capital – centrefor investment growth, rather thanregional aid, and an international city ofoutstanding commercial, cultural andcreative potential. The city will be an areadistinguished by the quality of life andsense of wellbeing enjoyed by itsresidents, where all will have theopportunity to participate in and benefitfrom the investment and development oftheir city and, therefore, live in trulysustainable communities.

Our aims and objectives also characterisewhat has become an increasinglysophisticated role played by the CityCouncil. We continue to be a majordeliverer of services; and as anorganisation employing over 20,000people, with gross expenditure of some£1.4 billion, a significant player in thelocal economy. Increasingly, however, ourrole has become that of coordinator andfacilitator; that of bringing togetherdifferent public-sector organisations andensuring that they deliver servicestogether in an integrated way, linkingthem with the communities they serve.The City Council also aims to provideleadership to develop shared visions andthe public/private/community partnershipsthat are required to deliver them.

There are also other challenges to face upto in terms of achieving our vision. Someare practical and not all are in our control.We are, for example, in European termsfor example, a peripheral region and,because of this, transport links with therest of the world are a key priority. This ispartly why the airport is of such strategicimportance but also why the upgrading ofrail links is essential to our future.Manchester Airport has 95 airlines serving175 destinations and employs, directly andindirectly, over 50,000 people. It continuesto grow, serving over 18 millionpassengers a year since the second runwayopened in February 2001 and withpredictedgrowth to over 40 million passengers in the next 15 years.

Sustaining economic growth andconnecting the new opportunities thuscreated with the needs of local people,many of whom face poverty and socialexclusion, underpins all aspects of thecity’s regeneration strategy. One of thebiggest causes of poverty isunemployment and low-wageemployment, and that is why job creationis such a high priority. Where will the jobsof the future be? Some traditional sectors,like construction, are key, while others, liketextiles, chemicals and engineering, willremain significant. But jobs that have beenlost from manufacturing in these sectorsare not likely to be replaced. Quantum-inspired electronic devices, convergentmedia technologies, nanotechnology,biotechnology and other innovation-leddevelopments can create a veryconsiderable number of jobs. Similarly, theregion’s strengths in environmentalmanagement are another key asset. Thecleaning up of more than 100 years of

industrial pollution regionally andnationally in the UK, let alone the rest ofthe world, is a massive task in itself andwill create many jobs.

Manchester will be concentrating oncreativity, innovation and technology butwe recognise that so too will many othercities and regions in similar positions allover the world. This means that whileManchester continues to highlight itsparticular strengths, building upontextiles, computers, broadcasting,publishing and football, it is now lookingforward to the new entrepreneurial spiritcoming from the creative and culturalsectors, from its local universities and fromthe new enterprise partnerships that theCity Council is helping to facilitate.

Manchester as a creative city

There is a strong tradition of creativity,pioneering and invention in Manchester.This creativity is taking new forms and ispart of the experience of Manchestertoday: the conversion of redundantwarehouses by innovative propertydevelopers and local architects intoaccommodation for design, software andmultimedia companies; the clubs wheremany of the UK’s leading music groupshave emerged; the café bars andrestaurants fitted out by young designers.Manchester is a seedbed of youthenterprise and creativity. The presence ofthe universities is a major influence, and itis essential that the city should not onlyattract students but also provideopportunities for them to remain. Culturalindustries are important in their own right;they are also a source of creative capital,of ideas and communication, which is sovital to the future.

Manchester has a significant and growinglevel of employment in film, media, music,authorship, architecture and design and ininternet services. The largest enterprisesare mainly in the field of television andpublishing. The most significant of these isGranada TV, which is the UK’s largestprivate sector television company and partof a large global enterprise. Manchester isthe only regional city with a role innational newspaper publication. Since the1950s’ Manchester has been at theforefront of British pop and dance music,ranging nowadays from the commercialsuccess of local bands like Simply Red andOasis to the dynamic underground dancescene that has sent Manchester-mademusic and DJs across the world.

These new growth sectors are in theposition of maintaining their local positionand competing for access into globaleconomies. The fastest growth is beingseen in the design-based sectors (fashion,buildings and products), which are lessdominated by large enterprises becausesmall businesses are more able to accessglobal market opportunities directly.Recent research in the city has confirmedthat employment in the cultural industriesin Manchester is significant and that itpromises future growth. This is why weare trying to create one of the world’sleading ‘post-industrial’ sustainable cities,based on the new technologies andindustries of the future. Manchester is, notfor the first time, reinventing itself.

Central to this is the need to acceleratethe transition to a knowledge-basedeconomy by stimulating creativity andinnovation across the local and regionaleconomy. We need to be at the forefrontof a cutting-edge digital culture, based on

Manchester Manchester

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innovative business clusters and networks,which are uniquely capable of andnecessary for sustaining growth within theinformation society. In the UK, a recentGovernment report highlighted ten criticalsuccess factors for cluster development,starting with the importance of a strongscience base and including anentrepreneurial culture, the ability toattract key staff, effective networking anda supportive policy environment.

Manchester making it – anetworked city in a networkedglobal economy

The regeneration of Manchester is farfrom complete, but much has beenachieved in the past ten years. This hasonly been possible through theimaginative and dynamic partnerships thatthe City Council has been able to establishwith the private sector and the widercommunity. This idea of a networked citybeing essential for operating in theincreasingly networked and globaleconomy is central to our thinking.

A partnership approach to economicdevelopment is particularly important inbuilding the foundation of the knowledge-based industries of the future. They play aleading role in incubating new businesses,for example, where through the CampusVentures agency, established as apartnership between the city and the threelocal universities, 50 new companiesemploying 400 people have beenestablished so far, with another 70 newstart-up businesses planning to spin outover the next year.

Alongside this is the Manchester SciencePark, another joint venture between the

City Council and the universities, which isthe home for 50 companies employing700 people. This will double in size overthe next three years. Added to this mustbe Manchester's growing internet and e-business success, the most rapid growthof any region outside London and theSouth-east, where we have the onlyinternational Internet exchange outsideLondon, called ‘TeleCity’, which is alsobased on the Science Park.

Manchester’s first strategic report on newtechnologies and regeneration appeared in1989 under the title of ‘Manchester – theInformation City’, and more recently wehave stressed Manchester’s focus both asa ‘creative city’ and a ‘digital city’. What isnow clear from our experience is thatthese capacities are interdependent, andthat to be a successful creative city youmust be a digital city and vice versa. Thisis why, in 1993, Manchester was one of sixEuropean cities that set up a newnetwork, called TeleCities, which now hasmore than 150 cities involved in a trans-European network stretching from Icelandand Ireland in the west to Russia andRomania in the east.

Creating a sustainable future forManchester

The longterm vision for Manchester isbased on achieving a thriving economy inthe industries of the future. To do this weneed the research and educationalfacilities to keep us thriving and apopulation with the skills to maintainthose industries. Key to this success is thegrowth of the city centre’s population,from the current 6,000 to over 20,000,and the sound infrastructure to supportthat population. The development of the

Manchester City region with its owngovernment, at the heart of social andeconomic revival of the North-west, is alsovital, as is the country’s first fullyintegrated public transport system,building on our successful and expandingLight Rapid Rail Transport System –Metrolink. Finally, we must ensure animproved quality of life and environmentin every part of the city.

Manchester is on the way to achieving thesuccessful transition from being theworld’s first great industrial city to one ofthe world’s leading post-industrial successstories. Even then, the speed of economicand social change will require that the citycontinually finds new forms of dynamicurban management to ensure that thissuccess can be sustained. We believe thatonly by adopting a holistic, creative andcooperative approach can we rise to thechallenge of the new global knowledgeeconomy and information society. Weneed to ensure that what makesManchester an increasingly attractive placein which to live, study and work can besustained in ways that will continue toattract and develop creative talent,noteworthy events and lastingopportunities for the people who do andwill make it their home.

e-commerce, e-government andthe internet/New Media sector inManchester – the national policycontext in the UK

The UK Government has set out itsambition to make the UK the best place inthe world for e-business and e-commerce.At the same time it aims to make the UK aworld leader in the electronic delivery ofpublic services: e-government. All publicbodies, including local government, haveto ensure that 50% of services aredelivered electronically by 2003 and that100% of services will be capable of beingdelivered in this way by 2005. Four keychallenges have been highlighted, whichneed to be addressed before theseambitions can be fully realised. We mustdevelop a world leading infrastructurewith access for all, both in terms ofbusiness and the wider community, andensure that the education and skill base isthere to develop the workforce of thefuture. It’s also essential that we tackle the‘digital divide’, ensuring that theinformation society is fully inclusive and,finally, that we create a business-friendlyenvironment for e-commerce and e-business to develop.

The UK Government has made strenuousefforts to push forward the agenda withthe appointment of e-Minister togetherwith a national e-envoy. All governmentdepartments are now required to producee-business strategies and to set cleartargets for the delivery of e-governmentservices. Priorities for local-nationalGovernment cooperation include forgingcloser links between local authorities andnational government, increasing the use ofe-commerce for public procurement andbusiness-to-business transactions including

Manchester Manchester

Manchester is on the way toachieving the successful transitionfrom being the world’s first greatindustrial city to one of theworld’s leading post-industrialsuccess stories

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innovative business clusters and networks,which are uniquely capable of andnecessary for sustaining growth within theinformation society. In the UK, a recentGovernment report highlighted ten criticalsuccess factors for cluster development,starting with the importance of a strongscience base and including anentrepreneurial culture, the ability toattract key staff, effective networking anda supportive policy environment.

Manchester making it – anetworked city in a networkedglobal economy

The regeneration of Manchester is farfrom complete, but much has beenachieved in the past ten years. This hasonly been possible through theimaginative and dynamic partnerships thatthe City Council has been able to establishwith the private sector and the widercommunity. This idea of a networked citybeing essential for operating in theincreasingly networked and globaleconomy is central to our thinking.

A partnership approach to economicdevelopment is particularly important inbuilding the foundation of the knowledge-based industries of the future. They play aleading role in incubating new businesses,for example, where through the CampusVentures agency, established as apartnership between the city and the threelocal universities, 50 new companiesemploying 400 people have beenestablished so far, with another 70 newstart-up businesses planning to spin outover the next year.

Alongside this is the Manchester SciencePark, another joint venture between the

City Council and the universities, which isthe home for 50 companies employing700 people. This will double in size overthe next three years. Added to this mustbe Manchester's growing internet and e-business success, the most rapid growthof any region outside London and theSouth-east, where we have the onlyinternational Internet exchange outsideLondon, called ‘TeleCity’, which is alsobased on the Science Park.

Manchester’s first strategic report on newtechnologies and regeneration appeared in1989 under the title of ‘Manchester – theInformation City’, and more recently wehave stressed Manchester’s focus both asa ‘creative city’ and a ‘digital city’. What isnow clear from our experience is thatthese capacities are interdependent, andthat to be a successful creative city youmust be a digital city and vice versa. Thisis why, in 1993, Manchester was one of sixEuropean cities that set up a newnetwork, called TeleCities, which now hasmore than 150 cities involved in a trans-European network stretching from Icelandand Ireland in the west to Russia andRomania in the east.

Creating a sustainable future forManchester

The longterm vision for Manchester isbased on achieving a thriving economy inthe industries of the future. To do this weneed the research and educationalfacilities to keep us thriving and apopulation with the skills to maintainthose industries. Key to this success is thegrowth of the city centre’s population,from the current 6,000 to over 20,000,and the sound infrastructure to supportthat population. The development of the

Manchester City region with its owngovernment, at the heart of social andeconomic revival of the North-west, is alsovital, as is the country’s first fullyintegrated public transport system,building on our successful and expandingLight Rapid Rail Transport System –Metrolink. Finally, we must ensure animproved quality of life and environmentin every part of the city.

Manchester is on the way to achieving thesuccessful transition from being theworld’s first great industrial city to one ofthe world’s leading post-industrial successstories. Even then, the speed of economicand social change will require that the citycontinually finds new forms of dynamicurban management to ensure that thissuccess can be sustained. We believe thatonly by adopting a holistic, creative andcooperative approach can we rise to thechallenge of the new global knowledgeeconomy and information society. Weneed to ensure that what makesManchester an increasingly attractive placein which to live, study and work can besustained in ways that will continue toattract and develop creative talent,noteworthy events and lastingopportunities for the people who do andwill make it their home.

e-commerce, e-government andthe internet/New Media sector inManchester – the national policycontext in the UK

The UK Government has set out itsambition to make the UK the best place inthe world for e-business and e-commerce.At the same time it aims to make the UK aworld leader in the electronic delivery ofpublic services: e-government. All publicbodies, including local government, haveto ensure that 50% of services aredelivered electronically by 2003 and that100% of services will be capable of beingdelivered in this way by 2005. Four keychallenges have been highlighted, whichneed to be addressed before theseambitions can be fully realised. We mustdevelop a world leading infrastructurewith access for all, both in terms ofbusiness and the wider community, andensure that the education and skill base isthere to develop the workforce of thefuture. It’s also essential that we tackle the‘digital divide’, ensuring that theinformation society is fully inclusive and,finally, that we create a business-friendlyenvironment for e-commerce and e-business to develop.

The UK Government has made strenuousefforts to push forward the agenda withthe appointment of e-Minister togetherwith a national e-envoy. All governmentdepartments are now required to producee-business strategies and to set cleartargets for the delivery of e-governmentservices. Priorities for local-nationalGovernment cooperation include forgingcloser links between local authorities andnational government, increasing the use ofe-commerce for public procurement andbusiness-to-business transactions including

Manchester Manchester

Manchester is on the way toachieving the successful transitionfrom being the world’s first greatindustrial city to one of theworld’s leading post-industrialsuccess stories

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digital signatures, promoting e-democracythrough improved Internet services forMPs and councillors, developingcommunity-based networks and movingtowards electronic voting.

Manchester – from informationcity to e-city

Manchester has a number of importantstrengths as a leading location forinternet/New Media investment, thatenable it to take a leading role in e-business and e-governmentdevelopments. It has one of the bestinfrastructures outside London in terms oftelecommunications and R&D networks –using the universities’ broadbandMetropolitan Area Network – ‘Net NorthWest’, with digital cable, ADSL andwireless broadband services. It has anextensive enterprise and incubationnetwork – the North west IncubationPartnership – coordinated by CampusVentures at the University of Manchesterand linked into Manchester Science Park,and the new Manchester ScienceEnterprise Centre, based at UMIST(Institute of Science and Technology).Another strong point has been thedevelopment of local community-basedinitiatives such as the network ofElectronic Village Halls (EVHs) andcommunity access centres together withthe award-winning ManchesterCommunity Information Network (MCIN)and Innovation in Digital and ElectronicArts (IDEA), which is the largest onlineaccess learning initiative in the UK. Lastly,all the partnership agencies supported bythe City Council are committed to supportthe further growth of the internet/NewMedia and creative industry sectors as a priority.

The future is here, so whathappens next?

The city has recently established theManchester Digital Development Agencyto take forward new initiatives aimed atmaking Manchester a world-class digitalcity. By working with a wide range ofpartners in the universities, business andthe voluntary sector, the DevelopmentAgency will ensure that projects across the city are coordinated and made sustainable.

Whereas many of the drivers for e-government have come from the centre,Manchester’s approach has always beensupported by officers and representativesat the local level, and, ultimately, thisimproves the chance of sustainabilitythrough the ‘mainstreaming’ of services.

Manchester’s aim of making ICT accessibleto all does not stop with the internet as itis now, but looks forward to thedevelopment of new technologies such as broadband and Wi-Fi and mobile communications.

By pulling together responsibility for theuse of technology across business,communities, education and localgovernment, the city is building on its ICTlegacy in ways that are innovative andinclusive. Our experience has shown thatbusinesses in the city require a skilled andtechnologically literate workforce, thatlocal government needs to use electronicmethods to engage directly withbusinesses and communities, and that thecity’s creative and entrepreneurial spiritbenefits from the opportunities madeavailable through new technologies.

At the Digital Development Agency’s 2003launch, there were representatives fromcommunity groups, businesses and theuniversities, alongside web designers andNew Media developers. A specially madefilm for the event asked the question,‘What’s the trouble with technology?’highlighting a determination to seetechnology as an enabler, rather than asan end in itself. A poem, written speciallyfor the event ended with the words:

‘The future is hereSo what happens next?When even your grandma Sends you a text.’1

In Manchester, at least, that is not likely tobe a rarity, but an everyday occurrence.

Networking Manchester

Manchester City Council has a long-standing commitment to prioritisinginformation and communicationtechnologies as a key part of its economicregeneration strategy for the city. The CityCouncil recognised this more than tenyears ago, when it carried out the firstmajor review of its economic developmentstrategy in 1989. Manchester was the firstcity in the UK to highlight this as a priorityin its Economic Development Strategy in1991. In the same year Manchesterlaunched the UK’s first public-accesscomputer communications and

information system, the Manchester Host,with a not-for-profit company, Poptel.

This partnership resulted in Manchesterbeing one of the first local authorities inthe UK to have an extensive website andthe first to be an Internet Service Provider(ISP) through its partnership with Poptel.In 2000, a not-for-profit consortium led by Poptel won the right to administer oneof the new high-level domain names forthe internet on a global basis, with .coop.This means that Manchester, the originalhome of ‘The Co-op’, is now the home tothe worldwide administration of the on-line ‘.coop’ of the future. Poptel is still the UK’s only employee-owned andcontrolled ISP.

Manchester’s strategy is based on acommitment to encourage partnershipsacross the city to provide the servicesrequired to ensure that both businessesand the wider community can take up theopportunities offered by the informationsociety and the new internet/New Mediatechnologies. City Council supportedinitiatives include:

• Establishing local Electronic Village Halls, community access and learning centres, where people can gain confidence, overcome their technophobia and learn new skills and where small businesses can get ‘hands-on’ experience of IT and the internet

• The setting up of the Manchester Community Information Network (MCIN) in 1994, which has since expanded to be one of the largest online community networks in the UK, available over the internet (and soon via Digital TV) and through interactive information points in libraries, health

Manchester Manchester

The city’s creative andentrepeneurial spirit benefits fromthe opportunities made availablethrough new technologies

1 The entire poem follows this essay.

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digital signatures, promoting e-democracythrough improved Internet services forMPs and councillors, developingcommunity-based networks and movingtowards electronic voting.

Manchester – from informationcity to e-city

Manchester has a number of importantstrengths as a leading location forinternet/New Media investment, thatenable it to take a leading role in e-business and e-governmentdevelopments. It has one of the bestinfrastructures outside London in terms oftelecommunications and R&D networks –using the universities’ broadbandMetropolitan Area Network – ‘Net NorthWest’, with digital cable, ADSL andwireless broadband services. It has anextensive enterprise and incubationnetwork – the North west IncubationPartnership – coordinated by CampusVentures at the University of Manchesterand linked into Manchester Science Park,and the new Manchester ScienceEnterprise Centre, based at UMIST(Institute of Science and Technology).Another strong point has been thedevelopment of local community-basedinitiatives such as the network ofElectronic Village Halls (EVHs) andcommunity access centres together withthe award-winning ManchesterCommunity Information Network (MCIN)and Innovation in Digital and ElectronicArts (IDEA), which is the largest onlineaccess learning initiative in the UK. Lastly,all the partnership agencies supported bythe City Council are committed to supportthe further growth of the internet/NewMedia and creative industry sectors as a priority.

The future is here, so whathappens next?

The city has recently established theManchester Digital Development Agencyto take forward new initiatives aimed atmaking Manchester a world-class digitalcity. By working with a wide range ofpartners in the universities, business andthe voluntary sector, the DevelopmentAgency will ensure that projects across the city are coordinated and made sustainable.

Whereas many of the drivers for e-government have come from the centre,Manchester’s approach has always beensupported by officers and representativesat the local level, and, ultimately, thisimproves the chance of sustainabilitythrough the ‘mainstreaming’ of services.

Manchester’s aim of making ICT accessibleto all does not stop with the internet as itis now, but looks forward to thedevelopment of new technologies such as broadband and Wi-Fi and mobile communications.

By pulling together responsibility for theuse of technology across business,communities, education and localgovernment, the city is building on its ICTlegacy in ways that are innovative andinclusive. Our experience has shown thatbusinesses in the city require a skilled andtechnologically literate workforce, thatlocal government needs to use electronicmethods to engage directly withbusinesses and communities, and that thecity’s creative and entrepreneurial spiritbenefits from the opportunities madeavailable through new technologies.

At the Digital Development Agency’s 2003launch, there were representatives fromcommunity groups, businesses and theuniversities, alongside web designers andNew Media developers. A specially madefilm for the event asked the question,‘What’s the trouble with technology?’highlighting a determination to seetechnology as an enabler, rather than asan end in itself. A poem, written speciallyfor the event ended with the words:

‘The future is hereSo what happens next?When even your grandma Sends you a text.’1

In Manchester, at least, that is not likely tobe a rarity, but an everyday occurrence.

Networking Manchester

Manchester City Council has a long-standing commitment to prioritisinginformation and communicationtechnologies as a key part of its economicregeneration strategy for the city. The CityCouncil recognised this more than tenyears ago, when it carried out the firstmajor review of its economic developmentstrategy in 1989. Manchester was the firstcity in the UK to highlight this as a priorityin its Economic Development Strategy in1991. In the same year Manchesterlaunched the UK’s first public-accesscomputer communications and

information system, the Manchester Host,with a not-for-profit company, Poptel.

This partnership resulted in Manchesterbeing one of the first local authorities inthe UK to have an extensive website andthe first to be an Internet Service Provider(ISP) through its partnership with Poptel.In 2000, a not-for-profit consortium led by Poptel won the right to administer oneof the new high-level domain names forthe internet on a global basis, with .coop.This means that Manchester, the originalhome of ‘The Co-op’, is now the home tothe worldwide administration of the on-line ‘.coop’ of the future. Poptel is still the UK’s only employee-owned andcontrolled ISP.

Manchester’s strategy is based on acommitment to encourage partnershipsacross the city to provide the servicesrequired to ensure that both businessesand the wider community can take up theopportunities offered by the informationsociety and the new internet/New Mediatechnologies. City Council supportedinitiatives include:

• Establishing local Electronic Village Halls, community access and learning centres, where people can gain confidence, overcome their technophobia and learn new skills and where small businesses can get ‘hands-on’ experience of IT and the internet

• The setting up of the Manchester Community Information Network (MCIN) in 1994, which has since expanded to be one of the largest online community networks in the UK, available over the internet (and soon via Digital TV) and through interactive information points in libraries, health

Manchester Manchester

The city’s creative andentrepeneurial spirit benefits fromthe opportunities made availablethrough new technologies

1 The entire poem follows this essay.

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centres, advice centres and community buildings across the city – it has also just joined up with Radio Regen, Manchester’s community radio training agency to launch the first internet community radio station for the city

• Developing partnerships with the local universities, particularly the ManchesterMetropolitan University (MMU), where a wide range of business support services are provided through a linked set of centres and projects including:• The Manchester Technology

Management Centre (MTMC)• The Manchester Multimedia Centre• the Information Society Awareness –

‘IS Aware’ – project• The North-west New Media

Network, coordinated by the Manchester Institute for Telematics and Employment Research, MITER, based at MMU

• Supporting the arts and cultural industries through a new business support agency – the Creative Industries Development Service (CIDS) –which provides advice, training and support for business networking

• Coordinating events through the DigitalSummer/Inter:face festival which showcases cutting edge collaborations between arts, science and technology

• Developing new community based broadband services, such as the Eastserve community portal (www.eastserve.com) backed up with wireless broadband access for the local community

In Manchester’s experience, those projectsand initiatives supported by sections ofthe community facing social exclusion areoften some of the most creative andinnovative. It is no coincidence that some

of the most dynamic contributors to thedevelopment of the information society inManchester are the three original EVHs –the Women’s EVH; Bangladesh House EVH,whose work involves excludedcommunities from many different ethnicminorities; and Chorlton Workshop EVH,based in one of the local churches, as wellas the trade union-based ‘LabourTelematics Centre’ and the digital artspioneers who established new digital artsinitiatives across the city.

All of these groups demonstrate a socialentrepreneurship which has historicallybeen largely untapped and ignored, yetwhich has a real potential to create newjobs and training opportunities and toreconnect excluded communities to thebenefits of the information society. This isone of the most important challengesfacing this area of work: how to find waysof connecting these capacities acrossManchester and the wider region and todevelop new pathways into employmentin these growth areas for society as awhole. This is the only way that we canrealise the critical mass of activity andparticipation required to achievesustainability in the longer term. This iswhat Manchester is most committed to interms of linked strategies for economicregeneration and developing theinformation society.

The Eastserve Project: wired upand ready to go2

East Manchester is using newtechnology to turn its community intoone of the most computer-literate inthe country, helping to drive theregeneration of the whole area.

Raise your eyes above the rows androws of terraced houses that make upmany of the traditional streets of EastManchester and you will see the mastsof the new Sportcity Stadium, pointingbravely upwards.

Built for the very successfulCommonwealth Games in 2002, thestadium seems to symbolise the area’shuge efforts to pull itself out of aseemingly endless cycle of decline.

East Manchester has taken manyknocks over the decades, driven bysuccessive losses of coal, steel andpower industries and large parts of themanufacturing sector, particularly inthe 1970s and 1980s.

The resulting wide-scaleunemployment, often affecting severalgenerations, has left its scars in theshape of heightened crime andvandalism, poor-quality andabandoned homes, wastelands ofempty spaces, as well as loweducational achievement and poor health.

Today that picture is changing... theIndustrial Revolution may be over, buta new IT revolution is just beginning.

Through New Deal for Communities,over 140 regeneration projects arecompleted or under way, helping thecommunity get back on its feet. One ofthe most popular of these – taken upby around half the households in thearea and with around 1,000 ‘hits’ aday – is Eastserve, an interactivewebsite.

‘Connecting’ the neighbourhoods ofBeswick, Clayton and Openshaw,Eastserve is much more than aninformation service. It is helping topromote many of the NDC objectivesby drawing longterm unemployedpeople into training and jobs,encouraging those who are without abank account or credit rating to save,and getting people who have beenhard to reach involved in newinitiatives. There are signs that it mayalso be sparking improvements to keypublic services.

Eastserve’s first aim was to provideresidents with computers and internetaccess. By March 2003, over 4,000households had their own computer.Schools and other organisations arealso linked in.

The equipment is supplied by ITEM, alocal community enterprise thatcollects and recycles redundantcomputers and buys new ones in bulkto sell at a large discount. Many peoplestill can’t afford the £200 to buy a newcomputer, and that’s where EastManchester Credit Union (EMCU)comes in. They arrange a loan, in theprocess taking on new customers andintroducing them to the benefits of

Manchester Manchester

2 This information is reproduced from an article by Sara Lovell in ‘Inclusion’ magazine, published by the Social Exclusion Unit in the Office of the Deputy Prime Minister. The Social Exclusion Unit cannot accept liability for any omissions or errors. The views expressed are not necessary those of the Social Exclusion Unit. (C) Crown Copyright 2003.

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centres, advice centres and community buildings across the city – it has also just joined up with Radio Regen, Manchester’s community radio training agency to launch the first internet community radio station for the city

• Developing partnerships with the local universities, particularly the ManchesterMetropolitan University (MMU), where a wide range of business support services are provided through a linked set of centres and projects including:• The Manchester Technology

Management Centre (MTMC)• The Manchester Multimedia Centre• the Information Society Awareness –

‘IS Aware’ – project• The North-west New Media

Network, coordinated by the Manchester Institute for Telematics and Employment Research, MITER, based at MMU

• Supporting the arts and cultural industries through a new business support agency – the Creative Industries Development Service (CIDS) –which provides advice, training and support for business networking

• Coordinating events through the DigitalSummer/Inter:face festival which showcases cutting edge collaborations between arts, science and technology

• Developing new community based broadband services, such as the Eastserve community portal (www.eastserve.com) backed up with wireless broadband access for the local community

In Manchester’s experience, those projectsand initiatives supported by sections ofthe community facing social exclusion areoften some of the most creative andinnovative. It is no coincidence that some

of the most dynamic contributors to thedevelopment of the information society inManchester are the three original EVHs –the Women’s EVH; Bangladesh House EVH,whose work involves excludedcommunities from many different ethnicminorities; and Chorlton Workshop EVH,based in one of the local churches, as wellas the trade union-based ‘LabourTelematics Centre’ and the digital artspioneers who established new digital artsinitiatives across the city.

All of these groups demonstrate a socialentrepreneurship which has historicallybeen largely untapped and ignored, yetwhich has a real potential to create newjobs and training opportunities and toreconnect excluded communities to thebenefits of the information society. This isone of the most important challengesfacing this area of work: how to find waysof connecting these capacities acrossManchester and the wider region and todevelop new pathways into employmentin these growth areas for society as awhole. This is the only way that we canrealise the critical mass of activity andparticipation required to achievesustainability in the longer term. This iswhat Manchester is most committed to interms of linked strategies for economicregeneration and developing theinformation society.

The Eastserve Project: wired upand ready to go2

East Manchester is using newtechnology to turn its community intoone of the most computer-literate inthe country, helping to drive theregeneration of the whole area.

Raise your eyes above the rows androws of terraced houses that make upmany of the traditional streets of EastManchester and you will see the mastsof the new Sportcity Stadium, pointingbravely upwards.

Built for the very successfulCommonwealth Games in 2002, thestadium seems to symbolise the area’shuge efforts to pull itself out of aseemingly endless cycle of decline.

East Manchester has taken manyknocks over the decades, driven bysuccessive losses of coal, steel andpower industries and large parts of themanufacturing sector, particularly inthe 1970s and 1980s.

The resulting wide-scaleunemployment, often affecting severalgenerations, has left its scars in theshape of heightened crime andvandalism, poor-quality andabandoned homes, wastelands ofempty spaces, as well as loweducational achievement and poor health.

Today that picture is changing... theIndustrial Revolution may be over, buta new IT revolution is just beginning.

Through New Deal for Communities,over 140 regeneration projects arecompleted or under way, helping thecommunity get back on its feet. One ofthe most popular of these – taken upby around half the households in thearea and with around 1,000 ‘hits’ aday – is Eastserve, an interactivewebsite.

‘Connecting’ the neighbourhoods ofBeswick, Clayton and Openshaw,Eastserve is much more than aninformation service. It is helping topromote many of the NDC objectivesby drawing longterm unemployedpeople into training and jobs,encouraging those who are without abank account or credit rating to save,and getting people who have beenhard to reach involved in newinitiatives. There are signs that it mayalso be sparking improvements to keypublic services.

Eastserve’s first aim was to provideresidents with computers and internetaccess. By March 2003, over 4,000households had their own computer.Schools and other organisations arealso linked in.

The equipment is supplied by ITEM, alocal community enterprise thatcollects and recycles redundantcomputers and buys new ones in bulkto sell at a large discount. Many peoplestill can’t afford the £200 to buy a newcomputer, and that’s where EastManchester Credit Union (EMCU)comes in. They arrange a loan, in theprocess taking on new customers andintroducing them to the benefits of

Manchester Manchester

2 This information is reproduced from an article by Sara Lovell in ‘Inclusion’ magazine, published by the Social Exclusion Unit in the Office of the Deputy Prime Minister. The Social Exclusion Unit cannot accept liability for any omissions or errors. The views expressed are not necessary those of the Social Exclusion Unit. (C) Crown Copyright 2003.

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saving. This has turned EMCU into thefastest growing credit union in thecountry, with around 3,000 newmembers via Eastserve. As a bonus,new jobs have been created to handlethe huge demand.

Everyone who buys a computer mustalso take up a three-hour trainingcourse to learn how to use it. Thetraining, provided by ManchesterCollege of Arts and Technology(MANCAT), may be their first learningexperience in a very long time,providing a gateway to further trainingand, for some people, into work.

Shirley Hughes, who was unemployedfor 14 years, bought a reconditionedcomputer for just £30, and with thehelp of training and support gainednew teaching and ICT qualifications,enabling her to secure a job as ateacher with MANCAT. ‘It has been anamazing experience and my thirst forknowledge is growing. I was prettymuch a novice at the start,’ saysHughes, ‘but now I am confident in myown ability. I am looking forward toproviding other women with thechance to gain confidence and newcomputer skills at MANCAT.’

Once people have the funding,hardware, training and back-up to getonline, they can use Eastserve’sextensive website service, which is justabout to be launched on a wirelessbroadband network, solely for the EastManchester community. Broadbandcosts less, and is more in tune with awhole range of community uses – from‘surgeries’ with service providers to

schoolchildren downloading theirhomework, to working out benefitsusing an online calculator.

Much of the local information on thesite is provided by a Residents’ Panel ofjournalists who also make decisionsabout the site’s future direction.

Eastserve’s Website Manager, DanielBainbridge, says: ‘Broadband can helpto develop individual projects on issuessuch as crime, safety and health. Forexample, we are talking to the localPrimary Care Trust about video-conferencing GP surgeries so thatdoctors can consult with patientsabout minor problems online. Thereare wider implications too – we couldimprove consultation withorganisations such as the GreaterManchester Police Authority, enablingresidents to influence policy.’

There have been a few initial stumblingblocks during the development ofmore interactive services with publicservices, in that some have been waryof speaking directly to their customersvia discussion forums and localbusinesses have been slower thananticipated to get on board.

The DFES will be carrying out a fullevaluation of the project, but NDCRegeneration Officer Lesley Spencerbelieves that it has already contributedto the overall renewal of the area.‘Eastserve has been very valuable inpushing things along and engagingservices and local people faster thanwould otherwise be possible. Having it

tied into training and the credit union hasmade it much more sustainable.’

Partner organisations such as ManchesterCity Council are now starting to providesome of their services online. Lesley adds:‘Service providers are keen to see howEastserve can help them and to promotethemselves, but they also have to respond. They cannot just deliver servicesonline in their existing format – they are finding that they have to change and improve them.’

How far the website can influence thequality of public services may be difficultto assess at this stage, but it has certainlyhad a considerable impact on local peopleand on the NDC programme and it lookslike it is here to stay. Eastserve is confidentthat by the time its funding runs out in2004, it will be an integral, self-standingpart of the community.

Key network contacts inManchester

Manchester City Council:

www.manchester.gov.uk

The current website, for more detailsabout the city’s work in the internet/NewMedia field contact the EconomicInitiatives Group (EIG) at the City Council

Manchester Digital DevelopmentAgency:

www.manchesterdda.com

The website of the Digital DevelopmentAgency articulating a vision for ICT

developments in Manchester

MIDAS: www.midas.org.uk

The inward investment agency forManchester. MIDAS is also managing theCommonwealth Games Economic BenefitsLegacy Programme

Marketing Manchester:

www.marketingmanchester.com

The tourism and promotional agency forGreater Manchester

Creative Industries DevelopmentService

CIDS: www.cids.co.uk

The business support agency for the artsand cultural industries sector

North-west New Media Network

www.nw-newmedia.net

The regional network supporting thedevelopment of the new media sector (seealso MITER below)

Manchester Community InformationNetwork

MCIN: www.mymanchester.net

One of the first and now largestcommunity information networks in the UK

MITER@MMU:

The Manchester Institute for Telematicsand Employment Research at theManchester Metropolitan University(MMU) has been developed from one ofthe longest-running partnership initiatives

Manchester Manchester

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saving. This has turned EMCU into thefastest growing credit union in thecountry, with around 3,000 newmembers via Eastserve. As a bonus,new jobs have been created to handlethe huge demand.

Everyone who buys a computer mustalso take up a three-hour trainingcourse to learn how to use it. Thetraining, provided by ManchesterCollege of Arts and Technology(MANCAT), may be their first learningexperience in a very long time,providing a gateway to further trainingand, for some people, into work.

Shirley Hughes, who was unemployedfor 14 years, bought a reconditionedcomputer for just £30, and with thehelp of training and support gainednew teaching and ICT qualifications,enabling her to secure a job as ateacher with MANCAT. ‘It has been anamazing experience and my thirst forknowledge is growing. I was prettymuch a novice at the start,’ saysHughes, ‘but now I am confident in myown ability. I am looking forward toproviding other women with thechance to gain confidence and newcomputer skills at MANCAT.’

Once people have the funding,hardware, training and back-up to getonline, they can use Eastserve’sextensive website service, which is justabout to be launched on a wirelessbroadband network, solely for the EastManchester community. Broadbandcosts less, and is more in tune with awhole range of community uses – from‘surgeries’ with service providers to

schoolchildren downloading theirhomework, to working out benefitsusing an online calculator.

Much of the local information on thesite is provided by a Residents’ Panel ofjournalists who also make decisionsabout the site’s future direction.

Eastserve’s Website Manager, DanielBainbridge, says: ‘Broadband can helpto develop individual projects on issuessuch as crime, safety and health. Forexample, we are talking to the localPrimary Care Trust about video-conferencing GP surgeries so thatdoctors can consult with patientsabout minor problems online. Thereare wider implications too – we couldimprove consultation withorganisations such as the GreaterManchester Police Authority, enablingresidents to influence policy.’

There have been a few initial stumblingblocks during the development ofmore interactive services with publicservices, in that some have been waryof speaking directly to their customersvia discussion forums and localbusinesses have been slower thananticipated to get on board.

The DFES will be carrying out a fullevaluation of the project, but NDCRegeneration Officer Lesley Spencerbelieves that it has already contributedto the overall renewal of the area.‘Eastserve has been very valuable inpushing things along and engagingservices and local people faster thanwould otherwise be possible. Having it

tied into training and the credit union hasmade it much more sustainable.’

Partner organisations such as ManchesterCity Council are now starting to providesome of their services online. Lesley adds:‘Service providers are keen to see howEastserve can help them and to promotethemselves, but they also have to respond. They cannot just deliver servicesonline in their existing format – they are finding that they have to change and improve them.’

How far the website can influence thequality of public services may be difficultto assess at this stage, but it has certainlyhad a considerable impact on local peopleand on the NDC programme and it lookslike it is here to stay. Eastserve is confidentthat by the time its funding runs out in2004, it will be an integral, self-standingpart of the community.

Key network contacts inManchester

Manchester City Council:

www.manchester.gov.uk

The current website, for more detailsabout the city’s work in the internet/NewMedia field contact the EconomicInitiatives Group (EIG) at the City Council

Manchester Digital DevelopmentAgency:

www.manchesterdda.com

The website of the Digital DevelopmentAgency articulating a vision for ICT

developments in Manchester

MIDAS: www.midas.org.uk

The inward investment agency forManchester. MIDAS is also managing theCommonwealth Games Economic BenefitsLegacy Programme

Marketing Manchester:

www.marketingmanchester.com

The tourism and promotional agency forGreater Manchester

Creative Industries DevelopmentService

CIDS: www.cids.co.uk

The business support agency for the artsand cultural industries sector

North-west New Media Network

www.nw-newmedia.net

The regional network supporting thedevelopment of the new media sector (seealso MITER below)

Manchester Community InformationNetwork

MCIN: www.mymanchester.net

One of the first and now largestcommunity information networks in the UK

MITER@MMU:

The Manchester Institute for Telematicsand Employment Research at theManchester Metropolitan University(MMU) has been developed from one ofthe longest-running partnership initiatives

Manchester Manchester

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in the city, established by the City Counciland the MMU more than ten years ago.

The key projects which are co-ordinated bythe partnership:

Digital Media – U:

www.dm-u.co.uk

Digital Media Watch:

www.dm-w.co.uk

Further information on MITER from:

www.miter.org.uk

IDEA – Innovation in Digital andElectronic Arts:

www.idea.org.uk

Digital Summer/Inter:face -

www.digitalsummer.org/interface

Telecities and the European DigitalCities programme:

www.telecities.org

THE FUTURE IS HERE

by Adrian Slatcher

We once painted cave walls With berries crushed down,Made music with jawbonesAnd horsehair we’d found.Scratched on slates,Made papyrus from reed,Learnt ABCWhen we wanted to read

Dipped quills in inkTo fill our long scrolls,Then bound up the pagesInto books we could hold.We once filled whole roomsWith adding machines,Abacus to spreadsheetStill counting out beans.

We used smoke signalsAnd pigeons to send,Advance warnings of foesOr news to a friend.The email of the speciesIs quicker than the mailAnd our most hated wordsAre Abort-Retry-Fail.

If the future is here Then think what comes next,When even your grandmaSends you a text.

Manchester

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in the city, established by the City Counciland the MMU more than ten years ago.

The key projects which are co-ordinated bythe partnership:

Digital Media – U:

www.dm-u.co.uk

Digital Media Watch:

www.dm-w.co.uk

Further information on MITER from:

www.miter.org.uk

IDEA – Innovation in Digital andElectronic Arts:

www.idea.org.uk

Digital Summer/Inter:face -

www.digitalsummer.org/interface

Telecities and the European DigitalCities programme:

www.telecities.org

THE FUTURE IS HERE

by Adrian Slatcher

We once painted cave walls With berries crushed down,Made music with jawbonesAnd horsehair we’d found.Scratched on slates,Made papyrus from reed,Learnt ABCWhen we wanted to read

Dipped quills in inkTo fill our long scrolls,Then bound up the pagesInto books we could hold.We once filled whole roomsWith adding machines,Abacus to spreadsheetStill counting out beans.

We used smoke signalsAnd pigeons to send,Advance warnings of foesOr news to a friend.The email of the speciesIs quicker than the mailAnd our most hated wordsAre Abort-Retry-Fail.

If the future is here Then think what comes next,When even your grandmaSends you a text.

Manchester

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HamburgSenator Gunnar Uldall, Minister for the Economy and Employment

roadband is a way to a digitalquality of life. While an athlete’smotto is ‘higher, faster, further’,the motto of the networked

society is ‘faster, further and broadband’.After you have tried the video-on-demandoffering (as explained later), there really isno going back.

To Hamburg, e-government means fastand effective administrative services forcitizens and local businesses. Public-sectorprocesses must keep pace with thetechnological advances made by privateindustry and consumers. As Hamburg is anopen-minded trade and media city, as wellas a centre for the digital economy, wemust drive e-government to provide thebest possible service to our customers,Hamburg’s citizens.

In Hamburg there is intense competitionbetween carriers and service providers,which leads to a wide range of low-pricedhigh quality services based on the MetroEthernet infrastructure. Local providersoffer bandwidths of up to 9.2 Mb/s. Sothis is interesting even for businesses withhigh data traffic volume.

DSL is also available throughout the cityand there is increasing demand fromprivate households. Furthermore,Hamburg is one of the first cities inGermany where UMTS, the latest mobile

broadband technology, is deployed. Wenow have approximately 200,000 DSLconnections in Hamburg, allowingbroadband access to many more people.

In addition, last year the Hamburg@workinitiative started the largest non-commercial WLAN project. Forty hot-spotsthroughout Hamburg will offer DSL-basedwireless internet access for everybody.

As the so-called Gateway to the World,the Free and Hanseatic City of Hamburgsets the framework for all companies to besuccessful on the base of a solid, future-oriented infrastructure.

Finance department: e-Government, IT infrastructure for the administration1

The access to local services through theinternet is an additional way ofcommunicating with the administration inan effective and convenient way. There is awide range of offerings for citizens andbusinesses in our e-government road map.

For example, citizens who want to contacta government official may preparethemselves online by finding the bestcontact. They may also research therelevant regulations and download allnecessary forms.

BThe business service offers companies adatabase with more than 100 online formsand links to contacts and other sources ofinformation. Furthermore, Hamburg usesthe latest software for public tenders viathe internet.

Hamburg is currently implementing aunique access point to our internetservices – the Hamburg Gateway. You canuse all administrative services with onlyone user ID and password. Our goal is tosave unnecessary travel and waiting timefor our customers, while at the same timeimproving the quality of service withsignificantly less cost and complexity.

How it works

For ten years, the City of Hamburg hasmanaged its IT infrastructure in a simple –and possibly unique – way, whichfacilitates a unified and coherent ITstrategy. This budgetary mechanismprovides focus and muscle to ensure thatall IT spending is planned and controlledfrom the centre, which virtually removesthe possibility of duplication,incompatibility and waste.

There are no Hamburg local governmentagencies with discrete IT budgets. Beforeany money is allocated to departmentssuch as justice, finance or internal affairs,there is a mechanism that removes the IT

element. The aggregated budget is heldunder the stewardship of the financedepartment, which also holdsresponsibility for e-government. Funds arethen allocated from that single source.

A committee – which also records, reviewsand manages development spending –takes all IT investment decisions centrally.Each agency wishing to establish an IT ore-government project has to make a casefor each project, develop its ownproposals and submit a business case intoan applications databank. All projects areassessed in the same way for ROI and cost savings.

Diether Schönfelder, Head of e-government for the City of Hamburg,explains: ‘Any department wanting toestablish an IT or e-government projecthas to make a specific case for thatproject. Each business case is assessed sothat we can make decisions according to acitywide view.’

The system requires that each project muststate how and when the investment willbe paid back. If a proposal is notconsidered sound and is not in line withHamburg’s overall e-government strategyand IT standards, it will not proceed.Annual reviews are held and, occasionally,projects have been terminated as a resultof technology problems or lack of success

1 This essay has been prepared by the Government of Hamburg

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HamburgSenator Gunnar Uldall, Minister for the Economy and Employment

roadband is a way to a digitalquality of life. While an athlete’smotto is ‘higher, faster, further’,the motto of the networked

society is ‘faster, further and broadband’.After you have tried the video-on-demandoffering (as explained later), there really isno going back.

To Hamburg, e-government means fastand effective administrative services forcitizens and local businesses. Public-sectorprocesses must keep pace with thetechnological advances made by privateindustry and consumers. As Hamburg is anopen-minded trade and media city, as wellas a centre for the digital economy, wemust drive e-government to provide thebest possible service to our customers,Hamburg’s citizens.

In Hamburg there is intense competitionbetween carriers and service providers,which leads to a wide range of low-pricedhigh quality services based on the MetroEthernet infrastructure. Local providersoffer bandwidths of up to 9.2 Mb/s. Sothis is interesting even for businesses withhigh data traffic volume.

DSL is also available throughout the cityand there is increasing demand fromprivate households. Furthermore,Hamburg is one of the first cities inGermany where UMTS, the latest mobile

broadband technology, is deployed. Wenow have approximately 200,000 DSLconnections in Hamburg, allowingbroadband access to many more people.

In addition, last year the Hamburg@workinitiative started the largest non-commercial WLAN project. Forty hot-spotsthroughout Hamburg will offer DSL-basedwireless internet access for everybody.

As the so-called Gateway to the World,the Free and Hanseatic City of Hamburgsets the framework for all companies to besuccessful on the base of a solid, future-oriented infrastructure.

Finance department: e-Government, IT infrastructure for the administration1

The access to local services through theinternet is an additional way ofcommunicating with the administration inan effective and convenient way. There is awide range of offerings for citizens andbusinesses in our e-government road map.

For example, citizens who want to contacta government official may preparethemselves online by finding the bestcontact. They may also research therelevant regulations and download allnecessary forms.

BThe business service offers companies adatabase with more than 100 online formsand links to contacts and other sources ofinformation. Furthermore, Hamburg usesthe latest software for public tenders viathe internet.

Hamburg is currently implementing aunique access point to our internetservices – the Hamburg Gateway. You canuse all administrative services with onlyone user ID and password. Our goal is tosave unnecessary travel and waiting timefor our customers, while at the same timeimproving the quality of service withsignificantly less cost and complexity.

How it works

For ten years, the City of Hamburg hasmanaged its IT infrastructure in a simple –and possibly unique – way, whichfacilitates a unified and coherent ITstrategy. This budgetary mechanismprovides focus and muscle to ensure thatall IT spending is planned and controlledfrom the centre, which virtually removesthe possibility of duplication,incompatibility and waste.

There are no Hamburg local governmentagencies with discrete IT budgets. Beforeany money is allocated to departmentssuch as justice, finance or internal affairs,there is a mechanism that removes the IT

element. The aggregated budget is heldunder the stewardship of the financedepartment, which also holdsresponsibility for e-government. Funds arethen allocated from that single source.

A committee – which also records, reviewsand manages development spending –takes all IT investment decisions centrally.Each agency wishing to establish an IT ore-government project has to make a casefor each project, develop its ownproposals and submit a business case intoan applications databank. All projects areassessed in the same way for ROI and cost savings.

Diether Schönfelder, Head of e-government for the City of Hamburg,explains: ‘Any department wanting toestablish an IT or e-government projecthas to make a specific case for thatproject. Each business case is assessed sothat we can make decisions according to acitywide view.’

The system requires that each project muststate how and when the investment willbe paid back. If a proposal is notconsidered sound and is not in line withHamburg’s overall e-government strategyand IT standards, it will not proceed.Annual reviews are held and, occasionally,projects have been terminated as a resultof technology problems or lack of success

1 This essay has been prepared by the Government of Hamburg

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according to the city’s criteria. ‘Everyproject,’ says Schönfelder, ‘has to be awin-win: this means that it must providecitizens with a better service and save thecity money.’

Only sound projects that fit with overallcity and regional strategy are permitted to proceed. This budget mechanism has also been responsible for introducinga healthy element of competition between the various agencies in theirpursuit of IT funding, cost-cutting andimproving service.

Germany’s federal system can lead toduplication of resources in borderingstates: Hamburg, however, hassidestepped the issue by extending its e-government domain bilaterally acrossthe neighbouring states of Schleswig-Holstein and Niedersachsen.

Collaboration across the region benefitscitizens, particularly those who travel dailyinto the city and have no time to visit theirlocal office. Early next year, commutersinto the city will be able to log into theHamburg office to transact their owncouncil business during their working day.This is enabled by a secure network usingXML, which allows information to beshared and data to be input in onelocation – in Hamburg – and processed inanother, their local office.

The merging of the IT provider forHamburg with that of Schleswig-Holsteinwill bring economies of scale. These arepublicly-owned companies organised asstand-alone businesses with their ownbudgeting and accounting systems,providing services for private companies aswell as managing the infrastructure for

the areas served by Hamburg. From thestart of 2004, the single business will runservices for two adjoining councils, andoffer services further afield, to provincesand small cities to the north of the region.

There are two key projects for the citizensof Hamburg and her neighbours asexplained by Jörn Riedel, Head of NetworkArchitecture and IT for the City ofHamburg. ‘The internet platform has gonefrom strength to strength during the lastsix years and now supports the secondbiggest website in Germany, with over tenmillion page views per month.’ Thiswebsite is run as a public/privatepartnership and reflects all the activities ofthe city including the booking of theatretickets and hotel rooms, as well asadministrative services.

The second project is the HamburgGateway. ‘This,’ says Riedel, ‘will providethe connectivity for all transactions withour citizens and our commercial customersas well.’ Online public information servicesare already hugely successful. The mostused, with up to 750,000 hits per month,helps people get the services they need.Once a query has been input, a pagecomes up with the nearest office thatdeals with the matter, its opening times,the requisite forms and information on thepublic transport that will take the citizento that office. Other well used services arethe online ordering of birth certificates,new passports and special voting formsfor voters away from home.

Diether Schönfelder is convinced of thevalue of getting the e-governmentmessage across to customers and topartner organisations alike. ‘Number ofusers is what counts for us, not number of

services. e-government must not beesoteric: access has to be simple. Our e-government strategy and what we offerare designed to make it that way.’

But while Schönfelder believes thatsimplicity of access to electronic services isall important to their quick take-up, he iswell aware that it will take time forelectronic routes to take over. Traditionalmethods of access – letters, telephonecalls to the developing Citizen ContactCentre and visits to the local office – areall still in place and being updated so thatwhichever access method is used bybusiness or by individuals, there will be nodoubling-up of data input; the sameelectronically supported business processeswill be used throughout. Hamburg is alsoplanning the online management ofmunicipal grants. An example of thiswould be the administration requiredwhen a claim is made by a charitableinstitution such as a church, for therunning of a kindergarten. The church isentitled to reclaim some of the costs, butin staggered payments, and only oncereceipts have been provided. The processwill be quicker and easier online and willno longer require piles of paperwork.

Another simplified process will deal withpermissions. Currently, when a publicutility requests permission to dig up a

road, up to 16 copies of the request mustbe sent to interested parties like cablecompanies, building contractors and otherpublic services. Soon the utility or builderwill only have to register once to receivemessages electronically.

The benefits of websites and onlinetransactions can be measured in manyways: in Hamburg this is done by usageand by the savings made. But DietherSchönfelder emphasised that in Hamburg:‘The “electronification” of services isalways accompanied by improvement in business processes, so that furtherfinancial benefits are derived from these as well as from the transfer ofsystems online.’

Economy department: broadband,SP competition, economicdevelopment

As a result of the commitment to e-government, Hamburg is focusing onnew technologies including the ongoingdevelopment of broadband. Theimplementation of a modern technicalinfrastructure for effective e-governmenthas been under way for several years withthe administration network of 30,000 PCs,a standardised communicationinfrastructure and secure online access atits heart.

Western democracies have deliberatedlong and hard on the vital task ofproviding access to government services to all their citizens while simultaneouslymaintaining appropriate levels of securityand confidentiality. The endorsement ofdigital certificates by the EuropeanParliament has led many federal Germanauthorities to insist on their use online,

Hamburg Hamburg

Western democracies havedeliberated long and hard on thevital task of providing access togovernment services to all citizenswhile maintaining levels of securityand confidentiality

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according to the city’s criteria. ‘Everyproject,’ says Schönfelder, ‘has to be awin-win: this means that it must providecitizens with a better service and save thecity money.’

Only sound projects that fit with overallcity and regional strategy are permitted to proceed. This budget mechanism has also been responsible for introducinga healthy element of competition between the various agencies in theirpursuit of IT funding, cost-cutting andimproving service.

Germany’s federal system can lead toduplication of resources in borderingstates: Hamburg, however, hassidestepped the issue by extending its e-government domain bilaterally acrossthe neighbouring states of Schleswig-Holstein and Niedersachsen.

Collaboration across the region benefitscitizens, particularly those who travel dailyinto the city and have no time to visit theirlocal office. Early next year, commutersinto the city will be able to log into theHamburg office to transact their owncouncil business during their working day.This is enabled by a secure network usingXML, which allows information to beshared and data to be input in onelocation – in Hamburg – and processed inanother, their local office.

The merging of the IT provider forHamburg with that of Schleswig-Holsteinwill bring economies of scale. These arepublicly-owned companies organised asstand-alone businesses with their ownbudgeting and accounting systems,providing services for private companies aswell as managing the infrastructure for

the areas served by Hamburg. From thestart of 2004, the single business will runservices for two adjoining councils, andoffer services further afield, to provincesand small cities to the north of the region.

There are two key projects for the citizensof Hamburg and her neighbours asexplained by Jörn Riedel, Head of NetworkArchitecture and IT for the City ofHamburg. ‘The internet platform has gonefrom strength to strength during the lastsix years and now supports the secondbiggest website in Germany, with over tenmillion page views per month.’ Thiswebsite is run as a public/privatepartnership and reflects all the activities ofthe city including the booking of theatretickets and hotel rooms, as well asadministrative services.

The second project is the HamburgGateway. ‘This,’ says Riedel, ‘will providethe connectivity for all transactions withour citizens and our commercial customersas well.’ Online public information servicesare already hugely successful. The mostused, with up to 750,000 hits per month,helps people get the services they need.Once a query has been input, a pagecomes up with the nearest office thatdeals with the matter, its opening times,the requisite forms and information on thepublic transport that will take the citizento that office. Other well used services arethe online ordering of birth certificates,new passports and special voting formsfor voters away from home.

Diether Schönfelder is convinced of thevalue of getting the e-governmentmessage across to customers and topartner organisations alike. ‘Number ofusers is what counts for us, not number of

services. e-government must not beesoteric: access has to be simple. Our e-government strategy and what we offerare designed to make it that way.’

But while Schönfelder believes thatsimplicity of access to electronic services isall important to their quick take-up, he iswell aware that it will take time forelectronic routes to take over. Traditionalmethods of access – letters, telephonecalls to the developing Citizen ContactCentre and visits to the local office – areall still in place and being updated so thatwhichever access method is used bybusiness or by individuals, there will be nodoubling-up of data input; the sameelectronically supported business processeswill be used throughout. Hamburg is alsoplanning the online management ofmunicipal grants. An example of thiswould be the administration requiredwhen a claim is made by a charitableinstitution such as a church, for therunning of a kindergarten. The church isentitled to reclaim some of the costs, butin staggered payments, and only oncereceipts have been provided. The processwill be quicker and easier online and willno longer require piles of paperwork.

Another simplified process will deal withpermissions. Currently, when a publicutility requests permission to dig up a

road, up to 16 copies of the request mustbe sent to interested parties like cablecompanies, building contractors and otherpublic services. Soon the utility or builderwill only have to register once to receivemessages electronically.

The benefits of websites and onlinetransactions can be measured in manyways: in Hamburg this is done by usageand by the savings made. But DietherSchönfelder emphasised that in Hamburg:‘The “electronification” of services isalways accompanied by improvement in business processes, so that furtherfinancial benefits are derived from these as well as from the transfer ofsystems online.’

Economy department: broadband,SP competition, economicdevelopment

As a result of the commitment to e-government, Hamburg is focusing onnew technologies including the ongoingdevelopment of broadband. Theimplementation of a modern technicalinfrastructure for effective e-governmenthas been under way for several years withthe administration network of 30,000 PCs,a standardised communicationinfrastructure and secure online access atits heart.

Western democracies have deliberatedlong and hard on the vital task ofproviding access to government services to all their citizens while simultaneouslymaintaining appropriate levels of securityand confidentiality. The endorsement ofdigital certificates by the EuropeanParliament has led many federal Germanauthorities to insist on their use online,

Hamburg Hamburg

Western democracies havedeliberated long and hard on thevital task of providing access togovernment services to all citizenswhile maintaining levels of securityand confidentiality

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in all cases where a handwritten signature would otherwise be required.But the digital certificate is not commonlyused by individuals (fewer than one percent of Hamburg citizens), or indeed bymany businesses, and there are problemswith compatibility of systems fromdifferent suppliers.

Having analysed practices across Europeand examined the UK model, Hamburgmanagers found that digital certificatesare not mandatory, provided there is asingle secure gateway to governmentwebsites, and that once a stringentprocess of authorisation has taken place, adigital signature is not required toundertake e-government transactions.

Now Hamburg is adopting a processsimilar to that used when a client opens abank account. To access those more secureareas of the Government intranet in orderto, for example, make payments for e-government services, a citizen completesan application form and sends it to thecouncil. The council sends authenticationdata, password and ID to a local office. Tocollect the data that will enabletransactions to be made online, citizensvisit that office to show their faces and apersonal ID card or passport. They thenreceive authentication data and it is theirresponsibility to keep it secure.

This data is entered just like a normallogin process with a user code andpassword. The data includes address andother personal details that can make itmore useful, and arguably more securethan those digital certificates with singlefields. Once the citizen is signed up, allservices can be accessed and transactionsmade. The gateway to the government

services will be up and running shortlyonce relevant legislation has been passedby the Department of the Interior.

The new Hamburg Gateway, using asimilar model to the Government Gatewayin the UK, will provide connectivity forcitizens and commercial customers for alltransactions through a single interface.Jörn Riedel explains: ‘Four or five hundredsoftware applications run on the back endsystems, and data shared across theinfrastructure will be translated to providethe view seen by the user. This will sharean underlying functionality so thatfeatures can be accessed in the same way with a similar look and feel for easeof use.’

Companies use the broadband servicemainly for fast data transfer and real-timeconnectivity. The media and logisticsindustries, including the harbour, are goodexamples of industries in our diverseeconomic landscape that have a strongdemand for broadband. In the privatesector, a local service provider has startedan innovative video-on-demand servicethat has set the ball rolling for vodservices all over Germany.

Take the example of mobile radiotechnology via UMTS: the combination ofmobility and broadband is a hightechnology base for the development ofinnovative services, and therefore newmarket opportunities. Consequently,driving the adoption of these technologieswill also have a positive impact on thenumerous Hamburg-based IT and Telcocompanies. With the variety of mobilebusiness applications used, they arealready among the pioneers in that sector in Germany.

All services that Hamburg provides will be available electronically. Once anaccount has been established, all datamade available is on that account. If auser accepts a service, and a resultcannot be provided online immediately,the user can logout and will later be sentan email. They can then return to find theresult of the query, or the completion ofthe transaction.

Senator Uldall summarises: ‘Hamburgworks as a team so that everything goeseasier and faster – especially withbroadband.’

Hamburg Hamburg

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in all cases where a handwritten signature would otherwise be required.But the digital certificate is not commonlyused by individuals (fewer than one percent of Hamburg citizens), or indeed bymany businesses, and there are problemswith compatibility of systems fromdifferent suppliers.

Having analysed practices across Europeand examined the UK model, Hamburgmanagers found that digital certificatesare not mandatory, provided there is asingle secure gateway to governmentwebsites, and that once a stringentprocess of authorisation has taken place, adigital signature is not required toundertake e-government transactions.

Now Hamburg is adopting a processsimilar to that used when a client opens abank account. To access those more secureareas of the Government intranet in orderto, for example, make payments for e-government services, a citizen completesan application form and sends it to thecouncil. The council sends authenticationdata, password and ID to a local office. Tocollect the data that will enabletransactions to be made online, citizensvisit that office to show their faces and apersonal ID card or passport. They thenreceive authentication data and it is theirresponsibility to keep it secure.

This data is entered just like a normallogin process with a user code andpassword. The data includes address andother personal details that can make itmore useful, and arguably more securethan those digital certificates with singlefields. Once the citizen is signed up, allservices can be accessed and transactionsmade. The gateway to the government

services will be up and running shortlyonce relevant legislation has been passedby the Department of the Interior.

The new Hamburg Gateway, using asimilar model to the Government Gatewayin the UK, will provide connectivity forcitizens and commercial customers for alltransactions through a single interface.Jörn Riedel explains: ‘Four or five hundredsoftware applications run on the back endsystems, and data shared across theinfrastructure will be translated to providethe view seen by the user. This will sharean underlying functionality so thatfeatures can be accessed in the same way with a similar look and feel for easeof use.’

Companies use the broadband servicemainly for fast data transfer and real-timeconnectivity. The media and logisticsindustries, including the harbour, are goodexamples of industries in our diverseeconomic landscape that have a strongdemand for broadband. In the privatesector, a local service provider has startedan innovative video-on-demand servicethat has set the ball rolling for vodservices all over Germany.

Take the example of mobile radiotechnology via UMTS: the combination ofmobility and broadband is a hightechnology base for the development ofinnovative services, and therefore newmarket opportunities. Consequently,driving the adoption of these technologieswill also have a positive impact on thenumerous Hamburg-based IT and Telcocompanies. With the variety of mobilebusiness applications used, they arealready among the pioneers in that sector in Germany.

All services that Hamburg provides will be available electronically. Once anaccount has been established, all datamade available is on that account. If auser accepts a service, and a resultcannot be provided online immediately,the user can logout and will later be sentan email. They can then return to find theresult of the query, or the completion ofthe transaction.

Senator Uldall summarises: ‘Hamburgworks as a team so that everything goeseasier and faster – especially withbroadband.’

Hamburg Hamburg

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Hillingdon - a case studyHow to create the Business CasePacey Cheales, Corporate Programme Manager for theHillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council

Introduction

Each local authority will have its owndrivers for modernisation. Whetherresponding to national or local priorities,the modernisation of service deliverythrough e-government is a common factorin community plans, best valueperformance plans and service specific plans.

Hillingdon’s business case formodernisation work does not try toestablish a definitive set of modernisationdrivers applicable to all local authorities.However, the detailed analysis carried outby Hillingdon’s Housing Servicehighlighted the importance of answeringthe question ‘What are the drivers formodernising the service?’. The answer tothis important question is for each localauthority to determine based on its own circumstances.

Strategic planing context formodernisation – London boroughof Hillingdon and housing services

To place the more detailed aspects ofHillingdon’s modernisation work incontext, this section provides a thumbnailsketch of the council and its Housing

Services department.

London Borough of Hillingdon:

Hillingdon is London’s second largestunitary borough – covering 42 squaremiles of west London from Harefield inthe north to Heathrow airport in thesouth. Located 14 miles from centralLondon Hillingdon shares its boundarieswith neighbouring west London boroughsand the counties of Hertfordshire,Buckinghamshire and Surrey.

The borough is home to 250,000 peoplefrom diverse backgrounds. BAME (black,Asian and minority ethnic) communitiescurrently comprise 19% of the population– this figure is expected to rise to 25% bythe end of the decade. Hillingdon includesthe world’s busiest international airport atHeathrow and the main campus for Brunel University.

Housing Services:

Hillingdon council’s Housing Serviceprovides a comprehensive range ofhousing-related services to all tenures inthe local community. The department’sstrategic priorities and operationalactivities are focused on positivelycontributing to the borough’s CommunityPlan in the following areas:

Within this strategic context theoperational scope of Hillingdon’s HousingService is illustrated by highlighting theoperational services delivered by thedepartment’s 520 directly employed staffand its other partners:

• Landlord for more than 11,500 tenancies and 1,500 leaseholders – collecting rent and service charges valued in excess of £45,000,000 per annum

• Administering housing and related benefits valued in excess of £70,000,000 per annum to 18,500 newand existing service users

• Annual planned maintenance and day-to-day repairs investment in council housing stock valued in excess of

£18,500,000• Provision of 23 sheltered housing

schemes providing independent living accommodation for 925 elderly and vulnerable members of the community

• 18-month, £27,000,000 capital programme to supply 230 new affordable homes

Drivers for modernisation:

This local context helped Housing Servicesidentify the following objectives formodernising the service:

• National and local government policy agenda re: BV157 and wider Best Value regime

• Generate cost/productivity gains,

The local strategicplanning context for modernisation

COMMUNITY PLAN AIM HOUSING’S STRATEGIC OBJECTIVE A HEALTHIER BOROUGH Improve services for older people and

promote independent living for vulnerabletenants

A SAFER BOROUGH Work with the police and others to reducecrime, anti-social behaviour, domesticviolence and racial harassment

AN ECONOMICALLY PROSPEROUSBOROUGH

Increase the supply of housing for lowincome and key worker households

A CLEANER AND MORE PLEASANTBOROUGH

Satisfy basic needs for warm homes and safe streets and improve conditions in the private sector

A BOROUGH WHERE OPPORTUNITIES AREOPEN TO ALL

Focus resources on excluded groups, reducehomelessness and ensure equality for allservice users

A BOROUGH THAT ENCOURAGES LIFELONGLEARNING

Provide training opportunities for counciltenants and people living in temporaryaccommodation

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Hillingdon - a case studyHow to create the Business CasePacey Cheales, Corporate Programme Manager for theHillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council

Introduction

Each local authority will have its owndrivers for modernisation. Whetherresponding to national or local priorities,the modernisation of service deliverythrough e-government is a common factorin community plans, best valueperformance plans and service specific plans.

Hillingdon’s business case formodernisation work does not try toestablish a definitive set of modernisationdrivers applicable to all local authorities.However, the detailed analysis carried outby Hillingdon’s Housing Servicehighlighted the importance of answeringthe question ‘What are the drivers formodernising the service?’. The answer tothis important question is for each localauthority to determine based on its own circumstances.

Strategic planing context formodernisation – London boroughof Hillingdon and housing services

To place the more detailed aspects ofHillingdon’s modernisation work incontext, this section provides a thumbnailsketch of the council and its Housing

Services department.

London Borough of Hillingdon:

Hillingdon is London’s second largestunitary borough – covering 42 squaremiles of west London from Harefield inthe north to Heathrow airport in thesouth. Located 14 miles from centralLondon Hillingdon shares its boundarieswith neighbouring west London boroughsand the counties of Hertfordshire,Buckinghamshire and Surrey.

The borough is home to 250,000 peoplefrom diverse backgrounds. BAME (black,Asian and minority ethnic) communitiescurrently comprise 19% of the population– this figure is expected to rise to 25% bythe end of the decade. Hillingdon includesthe world’s busiest international airport atHeathrow and the main campus for Brunel University.

Housing Services:

Hillingdon council’s Housing Serviceprovides a comprehensive range ofhousing-related services to all tenures inthe local community. The department’sstrategic priorities and operationalactivities are focused on positivelycontributing to the borough’s CommunityPlan in the following areas:

Within this strategic context theoperational scope of Hillingdon’s HousingService is illustrated by highlighting theoperational services delivered by thedepartment’s 520 directly employed staffand its other partners:

• Landlord for more than 11,500 tenancies and 1,500 leaseholders – collecting rent and service charges valued in excess of £45,000,000 per annum

• Administering housing and related benefits valued in excess of £70,000,000 per annum to 18,500 newand existing service users

• Annual planned maintenance and day-to-day repairs investment in council housing stock valued in excess of

£18,500,000• Provision of 23 sheltered housing

schemes providing independent living accommodation for 925 elderly and vulnerable members of the community

• 18-month, £27,000,000 capital programme to supply 230 new affordable homes

Drivers for modernisation:

This local context helped Housing Servicesidentify the following objectives formodernising the service:

• National and local government policy agenda re: BV157 and wider Best Value regime

• Generate cost/productivity gains,

The local strategicplanning context for modernisation

COMMUNITY PLAN AIM HOUSING’S STRATEGIC OBJECTIVE A HEALTHIER BOROUGH Improve services for older people and

promote independent living for vulnerabletenants

A SAFER BOROUGH Work with the police and others to reducecrime, anti-social behaviour, domesticviolence and racial harassment

AN ECONOMICALLY PROSPEROUSBOROUGH

Increase the supply of housing for lowincome and key worker households

A CLEANER AND MORE PLEASANTBOROUGH

Satisfy basic needs for warm homes and safe streets and improve conditions in the private sector

A BOROUGH WHERE OPPORTUNITIES AREOPEN TO ALL

Focus resources on excluded groups, reducehomelessness and ensure equality for allservice users

A BOROUGH THAT ENCOURAGES LIFELONGLEARNING

Provide training opportunities for counciltenants and people living in temporaryaccommodation

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demonstrate willingness to positively scrutinise costs and working methods

• Socially inclusive e-delivery, ensuring potentially excluded groups had access to digital delivery channels

• Work-Life-Balance aspirations, strive to be an employer of choice in a competitive labour market

• Meeting citizen expectations, ensuring a positive response to evidence from citizen panel of awareness and desire to transact electronically

• Improving accessibility to services, using online facilities and new working arrangements to establish more flexiblepathways into services

Identifying these objectives at an earlystage was productive as they focusedHousing Service’s attention on the benefitsthat had to be delivered by modernisation.

Building themodernisation business case

Introduction

Having identified the most important‘drivers’ for modernisation, the core ofHillingdon’s work focused on building thebusiness case for modernisation. Thebusiness case emerged over time and wasrefined through an iterative process.Having completed the process Hillingdon’sexperience suggests there are five stepsinvolved in building the modernisationbusiness case.

Building the ModernisationBusiness Case

There follows a brief explanation ofHillingdon’s process, as well as the keyoutcomes from the Housing department’smodernisation business case:

Step 1:Benefit identification

INTRODUCTION

Each local authority’s strategic andoperational context will create theframework in which the modernisationbusiness case is built. In building anybusiness case the importance ofestablishing the anticipated benefits of a particular initiative at the outset if self-evident.

In the case of modernisation theanticipated benefits will be relevant toeach council’s circumstances.Consequently, Hillingdon’s work is notpresented as a definitive list of benefits formodernisation. Instead the experiencegained from Hillingdon’s approach may assist other councils faced by similar challenges.

BENEFIT IDENTIFICATION – LONDONBOROUGH OF HILLINGDON

Hillingdon’s process of benefitidentification was as follows:

• First, the benefits associated with modernisation were explicitly defined. Hillingdon found it helpful to identify anumber of broad target groups as potential beneficiaries of modernisation:• Citizen and community• Employees• Service providers • External stakeholder

• Second, a ‘long list’ of benefits was developed. Nothing was ruled out in

the first instance as the benefits from modernisation can be unexpected and diverse.

• Third, a practical categorisation system was used to map each ‘long list’benefit against one of three broad groupings:

• Red benefits – are those that will (when delivered) realise hard tangible cost savings, eg reduced premises costs or savings in procurement costs.

• Orange benefits – are productivity improvements in terms of employee time saved, eg from web-enabled citizen self-service. These types of benefit require proactive management to be realised. They can either be banked as financial savings or alternatively used as ‘free’ resources to be reallocated elsewhere.

• Green benefits – are those benefits that cannot be converted with any degree of reliability into cash or productivity gains, eg, building organisational capacity or raising the council’s profile with key stakeholders.

When this process was complete, a set ofdesired red, orange and greenmodernisation benefits were identified by Hillingdon:

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Step 1Benefit identificationIdentify the benefits modernisationneeds to deliver for your organisation

Step 2The modernisation diagnosticIdentify the opportunities and risks ofmodernising working practices, e-delivery and citizen contact

Step 3Reality checkReview the diagnostic outcomeagainst the benefits required

Step 4Completing the business caseDevelop a costed ROI on all or selectedpriority elements of the diagnostic

Step 5Prioritising the business caseEvaluate the business case usingagreed prioritisation criteria to assistresource allocation decision-making(This step is not relevant to the mainfocus of this paper and is notreported in here)

77

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demonstrate willingness to positively scrutinise costs and working methods

• Socially inclusive e-delivery, ensuring potentially excluded groups had access to digital delivery channels

• Work-Life-Balance aspirations, strive to be an employer of choice in a competitive labour market

• Meeting citizen expectations, ensuring a positive response to evidence from citizen panel of awareness and desire to transact electronically

• Improving accessibility to services, using online facilities and new working arrangements to establish more flexiblepathways into services

Identifying these objectives at an earlystage was productive as they focusedHousing Service’s attention on the benefitsthat had to be delivered by modernisation.

Building themodernisation business case

Introduction

Having identified the most important‘drivers’ for modernisation, the core ofHillingdon’s work focused on building thebusiness case for modernisation. Thebusiness case emerged over time and wasrefined through an iterative process.Having completed the process Hillingdon’sexperience suggests there are five stepsinvolved in building the modernisationbusiness case.

Building the ModernisationBusiness Case

There follows a brief explanation ofHillingdon’s process, as well as the keyoutcomes from the Housing department’smodernisation business case:

Step 1:Benefit identification

INTRODUCTION

Each local authority’s strategic andoperational context will create theframework in which the modernisationbusiness case is built. In building anybusiness case the importance ofestablishing the anticipated benefits of a particular initiative at the outset if self-evident.

In the case of modernisation theanticipated benefits will be relevant toeach council’s circumstances.Consequently, Hillingdon’s work is notpresented as a definitive list of benefits formodernisation. Instead the experiencegained from Hillingdon’s approach may assist other councils faced by similar challenges.

BENEFIT IDENTIFICATION – LONDONBOROUGH OF HILLINGDON

Hillingdon’s process of benefitidentification was as follows:

• First, the benefits associated with modernisation were explicitly defined. Hillingdon found it helpful to identify anumber of broad target groups as potential beneficiaries of modernisation:• Citizen and community• Employees• Service providers • External stakeholder

• Second, a ‘long list’ of benefits was developed. Nothing was ruled out in

the first instance as the benefits from modernisation can be unexpected and diverse.

• Third, a practical categorisation system was used to map each ‘long list’benefit against one of three broad groupings:

• Red benefits – are those that will (when delivered) realise hard tangible cost savings, eg reduced premises costs or savings in procurement costs.

• Orange benefits – are productivity improvements in terms of employee time saved, eg from web-enabled citizen self-service. These types of benefit require proactive management to be realised. They can either be banked as financial savings or alternatively used as ‘free’ resources to be reallocated elsewhere.

• Green benefits – are those benefits that cannot be converted with any degree of reliability into cash or productivity gains, eg, building organisational capacity or raising the council’s profile with key stakeholders.

When this process was complete, a set ofdesired red, orange and greenmodernisation benefits were identified by Hillingdon:

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Step 1Benefit identificationIdentify the benefits modernisationneeds to deliver for your organisation

Step 2The modernisation diagnosticIdentify the opportunities and risks ofmodernising working practices, e-delivery and citizen contact

Step 3Reality checkReview the diagnostic outcomeagainst the benefits required

Step 4Completing the business caseDevelop a costed ROI on all or selectedpriority elements of the diagnostic

Step 5Prioritising the business caseEvaluate the business case usingagreed prioritisation criteria to assistresource allocation decision-making(This step is not relevant to the mainfocus of this paper and is notreported in here)

77

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Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Potential orange time and/or productivity benefits which may be converted to cash or redirected elsewhere

Reduce commuting time – flexible working reduces commute frequencyGreater productivity – increased staff motivation from flexible workingBetter use of specialists – focus on value-added tasks, via job redesignReduced staff turnover – improved work-life-balance Access to electronic information – greater efficiency in data-handlingSingle point of contact – reducing resource duplicationStandardisation of response – via call-scripting, reduced transaction costsOnline forms/transactions – citizen self-service and channel-swappingTracking/data management – enhanced performance-monitoringDisintermediation of third party – simplify supply chainsRegional/subregional economies of scale – west London mechanisms

Potential green intangible benefits, not reasonablyconverted to a financial value

Community leadership – major local employer embracing information age Reputation – as a forward-looking organisationCloseness to citizen – better understand needs and more responsive Social inclusion – use digital technology to promote inclusionIdentify and respond to trends – via improved data capture and managementCitizen empowerment – via digital self-service and engagementMeeting citizen e-expectations – surveys indicate citizen readiness/desireFaster turnaround time for the citizen – self-service, single point of contactAbility to attract funds – improved reputation helps attract resources Attracting partners – private sector attracted to local authority exemplarsQuality of service – reduced cost, faster services that meet citizen needsImproved work-life-balance – for staff involved in modernisationStaff motivation – improved by modernised flexible workingOpenness to innovation – building future capability and capacityProject image of modernity to stakeholders – innovator to work withGreater employee responsibility – cultural change via modernised workingOutput/outcome based management – performance orientated focusService accessibility – better meeting statutory dutiesRegional/sub-regional good practice – being an exemplar for peer authorities

Potential red hard cost benefits

Reduced premises costs – savings on officer accommodation Reduced ICT costs – reduced connectivity as accommodation declines Flexible working methods – simplified terms and conditions Recruitment costs – reduced turnover, declining advertising costsRestructuring – potential increased spans of control Reduced facilities management costs – reduced premises numbersCheaper, faster procurement – enabled by b2b online procurement Reduced postage costs – channel swapping from manual post to email

The process of benefit identification resulted in a matrix that combined both benefitcategories and target groups shown below:

Benefit, target group matrix:

TARGET GROUPS

BENEFIT CATEGORIES

RED ORANGE GREEN Citizen and

community

Disintermediation Socially inclusive

Employees

Reduce commutetime & turnover

Staff motivation

Serviceproviders

Reduce premises &recruitment costs

Greaterproductivity

Service accessibility, staff motivation and meeting citizen e-expectations

Externalstakeholders

Subregionaleconomies of scale

Meeting citizen e-expectations

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Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Potential orange time and/or productivity benefits which may be converted to cash or redirected elsewhere

Reduce commuting time – flexible working reduces commute frequencyGreater productivity – increased staff motivation from flexible workingBetter use of specialists – focus on value-added tasks, via job redesignReduced staff turnover – improved work-life-balance Access to electronic information – greater efficiency in data-handlingSingle point of contact – reducing resource duplicationStandardisation of response – via call-scripting, reduced transaction costsOnline forms/transactions – citizen self-service and channel-swappingTracking/data management – enhanced performance-monitoringDisintermediation of third party – simplify supply chainsRegional/subregional economies of scale – west London mechanisms

Potential green intangible benefits, not reasonablyconverted to a financial value

Community leadership – major local employer embracing information age Reputation – as a forward-looking organisationCloseness to citizen – better understand needs and more responsive Social inclusion – use digital technology to promote inclusionIdentify and respond to trends – via improved data capture and managementCitizen empowerment – via digital self-service and engagementMeeting citizen e-expectations – surveys indicate citizen readiness/desireFaster turnaround time for the citizen – self-service, single point of contactAbility to attract funds – improved reputation helps attract resources Attracting partners – private sector attracted to local authority exemplarsQuality of service – reduced cost, faster services that meet citizen needsImproved work-life-balance – for staff involved in modernisationStaff motivation – improved by modernised flexible workingOpenness to innovation – building future capability and capacityProject image of modernity to stakeholders – innovator to work withGreater employee responsibility – cultural change via modernised workingOutput/outcome based management – performance orientated focusService accessibility – better meeting statutory dutiesRegional/sub-regional good practice – being an exemplar for peer authorities

Potential red hard cost benefits

Reduced premises costs – savings on officer accommodation Reduced ICT costs – reduced connectivity as accommodation declines Flexible working methods – simplified terms and conditions Recruitment costs – reduced turnover, declining advertising costsRestructuring – potential increased spans of control Reduced facilities management costs – reduced premises numbersCheaper, faster procurement – enabled by b2b online procurement Reduced postage costs – channel swapping from manual post to email

The process of benefit identification resulted in a matrix that combined both benefitcategories and target groups shown below:

Benefit, target group matrix:

TARGET GROUPS

BENEFIT CATEGORIES

RED ORANGE GREEN Citizen and

community

Disintermediation Socially inclusive

Employees

Reduce commutetime & turnover

Staff motivation

Serviceproviders

Reduce premises &recruitment costs

Greaterproductivity

Service accessibility, staff motivation and meeting citizen e-expectations

Externalstakeholders

Subregionaleconomies of scale

Meeting citizen e-expectations

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By identifying the benefits ofmodernisation at the outset of thebusiness case Hillingdon found:

• It focused attention on the benefits most relevant to the organisation.

• It established a set of benefits that the modernisation diagnostic would be assessed against, and, finally,

• It helped address the question of whereto apply the modernisation diagnostic –which is explained further in step 2.

Step 2:The modernisationdiagnostic

INTRODUCTION

The objective of the Hillingdon’smodernisation diagnostic was to identifythe opportunities, benefits and risksassociated with deploying digitalcommunication technologies to:

1. Modernise working practices2. E-enable service delivery3. Improve citizen contact management

The diagnostic was characterised as follows:

• A set of pre-determined questions applied systematically

• Service-based approach that focused onthe experience and judgement of service managers

• Scaleable management tool applied both to relatively small staff groups of half a dozen as well as service teams ofmore than staff

• Conscious of the capabilities presented by the internet and other digital

communications technologies to change the organisation

• Sensitive to the human resource benefits, implications and risks of deploying and sustaining modernisation

However, the diagnostic was relativelytime-consuming to apply, required datapreparation beforehand and a fair amountof quantitative and qualitative analysisafterwards.

Scoping the modernisation diagnostic:

Hillingdon decided to carry out all threeelements of diagnostic across the HousingService. An alternative would have been tofocus a single part of the diagnostic on awider range of service function, egapplying the modernised workingdiagnostic to staff who work in major civicbuildings or all peripatetic staff.

Clearly there is a continuum of scopingoptions available, and each council willdetermine what’s best for its owncircumstances. For example, if costimprovements were a priority, applyingthe modernised working element of thediagnostic would be most relevant.Whereas if identifying services to be e-enabled to meet BVPI157 was ofparticular significance then the e-servicespart of the diagnostic would be used.

Hillingdon’s experience was that reviewingthe benefits identified (during step 1)helped scope the application of thediagnostic.

Diagnostic scoping matrix

The following sections summarise eachelement of modernisation diagnostic andset out the opportunities and risksidentified when it was applied to theHousing Service.

THE MODERNISED WORKINGDIAGNOSTIC – HOUSING SERVICES

The broad objective was to work withservice managers to identify theopportunities to modernise the wayHousing Service’s 500 staff work.Particular attention was paid to howmobile and teleworking could be utilised in parallel with more flexibleworking policies and electronic document management (EDM) to enable modernised working.

The importance of effectively managinghuman resource (HR) issues to delivermodernised working was recognised asbeing central to the entire modernisationagenda. Consequently priority was given to identifying the important HRpolicy, organisational and staffcompetencies associated with deploying

modernised working.

Opportunities for modernised working

The objective was to work with servicemanagers to identify opportunities toutilise a range of modernised workingarrangements in Housing Services,including:

• Mobile working • Teleworking • Hot desk modernised working

arrangements • Extended service availability • Increased use of flexible working

The investigation highlighted the jobfunctions that best lent themselves tomodernised working, as well as thenumbers and proportions of FTE'sinvolved. Teleworking functions weredefined as non-public contact back-officeactivities that supported front-line delivery,eg client casework, project preparation,write-up/preparation for inspections/visitsetc. High-volume telephone public contactwork was excluded from the teleworkingcategory. The view was taken that initiallyemployees should not be isolated at home

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BREADTH OF MODERNISATIONModernised

Workinge-ServiceDelivery

Citizen ContactManagementFew Service Functions

More Service Functions

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By identifying the benefits ofmodernisation at the outset of thebusiness case Hillingdon found:

• It focused attention on the benefits most relevant to the organisation.

• It established a set of benefits that the modernisation diagnostic would be assessed against, and, finally,

• It helped address the question of whereto apply the modernisation diagnostic –which is explained further in step 2.

Step 2:The modernisationdiagnostic

INTRODUCTION

The objective of the Hillingdon’smodernisation diagnostic was to identifythe opportunities, benefits and risksassociated with deploying digitalcommunication technologies to:

1. Modernise working practices2. E-enable service delivery3. Improve citizen contact management

The diagnostic was characterised as follows:

• A set of pre-determined questions applied systematically

• Service-based approach that focused onthe experience and judgement of service managers

• Scaleable management tool applied both to relatively small staff groups of half a dozen as well as service teams ofmore than staff

• Conscious of the capabilities presented by the internet and other digital

communications technologies to change the organisation

• Sensitive to the human resource benefits, implications and risks of deploying and sustaining modernisation

However, the diagnostic was relativelytime-consuming to apply, required datapreparation beforehand and a fair amountof quantitative and qualitative analysisafterwards.

Scoping the modernisation diagnostic:

Hillingdon decided to carry out all threeelements of diagnostic across the HousingService. An alternative would have been tofocus a single part of the diagnostic on awider range of service function, egapplying the modernised workingdiagnostic to staff who work in major civicbuildings or all peripatetic staff.

Clearly there is a continuum of scopingoptions available, and each council willdetermine what’s best for its owncircumstances. For example, if costimprovements were a priority, applyingthe modernised working element of thediagnostic would be most relevant.Whereas if identifying services to be e-enabled to meet BVPI157 was ofparticular significance then the e-servicespart of the diagnostic would be used.

Hillingdon’s experience was that reviewingthe benefits identified (during step 1)helped scope the application of thediagnostic.

Diagnostic scoping matrix

The following sections summarise eachelement of modernisation diagnostic andset out the opportunities and risksidentified when it was applied to theHousing Service.

THE MODERNISED WORKINGDIAGNOSTIC – HOUSING SERVICES

The broad objective was to work withservice managers to identify theopportunities to modernise the wayHousing Service’s 500 staff work.Particular attention was paid to howmobile and teleworking could be utilised in parallel with more flexibleworking policies and electronic document management (EDM) to enable modernised working.

The importance of effectively managinghuman resource (HR) issues to delivermodernised working was recognised asbeing central to the entire modernisationagenda. Consequently priority was given to identifying the important HRpolicy, organisational and staffcompetencies associated with deploying

modernised working.

Opportunities for modernised working

The objective was to work with servicemanagers to identify opportunities toutilise a range of modernised workingarrangements in Housing Services,including:

• Mobile working • Teleworking • Hot desk modernised working

arrangements • Extended service availability • Increased use of flexible working

The investigation highlighted the jobfunctions that best lent themselves tomodernised working, as well as thenumbers and proportions of FTE'sinvolved. Teleworking functions weredefined as non-public contact back-officeactivities that supported front-line delivery,eg client casework, project preparation,write-up/preparation for inspections/visitsetc. High-volume telephone public contactwork was excluded from the teleworkingcategory. The view was taken that initiallyemployees should not be isolated at home

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

80 81

BREADTH OF MODERNISATIONModernised

Workinge-ServiceDelivery

Citizen ContactManagementFew Service Functions

More Service Functions

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dealing with potentially irate telephonecalls in virtual contact centres. Mobileworking was defined as any functionsrequiring regular, dedicated time awayfrom a civic office, whether to deliverservices to the community, inspectproperties or meet with external partners.

Service managers also highlighted howthey thought their team(s) would respondto the implementation of modernisedworking. The modernised workingdiagnostic identified the following:

� Estimate of 295 or 70% of the total workforce was potentially suitable for mobile working and/or teleworking for between 2 – 4 days per week.

� Consequently, that 295 staff could move from a dedicated work desk in a civic building to a hot-desking/touchdown facility.

Similar to other organisations, Hillingdonrecognised that pursuing opportunities formodernised working would require hotdesk/touchdown facilities beingsubstituted for existing dedicated workdesks. This in turn could leverage theopportunity for space savings, moreefficient use of assets and associatedreductions in accommodation costs. Thepotential impact on office accommodationpre- and post-modernised working inHousing Services is summarised in thetable below:

Indications were that a reduction ofapproximately 50% in the number of work desks could be achieved post-modernisation – when compared with the number used in mid-2001. However,the overall space reduction (and costreduction) could be greater if modernisedworking was deployed in parallel withEDM, as the latter could further reducethe office space required to store manual data.

Opportunities for flexible working:

The objective was to identify thepreferences of service managers forpromoting the use of flexible workingarrangements to support theimplementation of modernised working.

Service managers were asked to evaluatethe potential benefits of deploying anumber of flexible working arrangements,including:

• Changes to the start and end of the working day, ie 8am – 8pm

• Service availability each week, ie 6 or 7 day working

• Application of flexi-days • Flexible weekly hours within a banded

upper and lower limit. • Annualised hours, eg working standard

pattern/hours during specified periods –leaving other periods when the employee does not attend work.

• Compressed hours – eg, the ability to either work agreed annual hours in a shorter period (at flat rate) or to work above contracted hours (at flat rate). In both cases above the 36 hours national conditions

• Pre-set annual leave arrangements, ie prohibiting leave at certain times, smoothing leave throughout entire leave year and the use of ‘closedown’ periods.

The options were discussed with servicemanagers and a number of prioritiesconsistently emerged across the Housing Service:

� Preference to extend both the start andend of the working day (ie, to 8am-8pm) and extend service availability to

6 days in 7 by working Saturday mornings

� Flexible weekly hours within a banded upper and lower limit was not supported in general as this would make resource planning too difficult

� Annualised and compressed hours wereseen as offering potential benefits to service delivery and resource planning

� Pre-set annual leave, ie prohibiting leave at certain times, smoothing leave throughout the year or use of ‘closedown’ periods were seen as offering potential benefits, particularly where there were cyclical peaks in workload

� Common theme to emerge was the continued relevance of core/fixed working hours to teleworkers. Service managers broadly took the view that so long as work was carried out to agreed levels working time could be credited on a 24/7 basis

Opportunities to utilise HR to supportmodernised working:

The objective was to identify:

• The HR policy priorities that service managers believed were needed for modernised working to be effectively deployed

• To highlight the ‘softer’ less tangible organisational risks that threatened the effective delivery of modernised working

• The competencies (knowledge, skill and behaviour) that service managers believed were most necessary for their staff and managers to deliver modernised working

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82 83

Location (headcount)

CURRENTWORKDESKS

Opportunities For mobile,Teleworking

Hot desks on1:3-1:4 ratio

Balance needing1:1 desk ratio

MODERNISEDWORKDESKS

Civic Centre 265 183 45-61 82 127-143

Area HousingOffices x 4

154 112 28-37 42 70-79

TOTAL 419 295 73-98 124 197-222

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dealing with potentially irate telephonecalls in virtual contact centres. Mobileworking was defined as any functionsrequiring regular, dedicated time awayfrom a civic office, whether to deliverservices to the community, inspectproperties or meet with external partners.

Service managers also highlighted howthey thought their team(s) would respondto the implementation of modernisedworking. The modernised workingdiagnostic identified the following:

� Estimate of 295 or 70% of the total workforce was potentially suitable for mobile working and/or teleworking for between 2 – 4 days per week.

� Consequently, that 295 staff could move from a dedicated work desk in a civic building to a hot-desking/touchdown facility.

Similar to other organisations, Hillingdonrecognised that pursuing opportunities formodernised working would require hotdesk/touchdown facilities beingsubstituted for existing dedicated workdesks. This in turn could leverage theopportunity for space savings, moreefficient use of assets and associatedreductions in accommodation costs. Thepotential impact on office accommodationpre- and post-modernised working inHousing Services is summarised in thetable below:

Indications were that a reduction ofapproximately 50% in the number of work desks could be achieved post-modernisation – when compared with the number used in mid-2001. However,the overall space reduction (and costreduction) could be greater if modernisedworking was deployed in parallel withEDM, as the latter could further reducethe office space required to store manual data.

Opportunities for flexible working:

The objective was to identify thepreferences of service managers forpromoting the use of flexible workingarrangements to support theimplementation of modernised working.

Service managers were asked to evaluatethe potential benefits of deploying anumber of flexible working arrangements,including:

• Changes to the start and end of the working day, ie 8am – 8pm

• Service availability each week, ie 6 or 7 day working

• Application of flexi-days • Flexible weekly hours within a banded

upper and lower limit. • Annualised hours, eg working standard

pattern/hours during specified periods –leaving other periods when the employee does not attend work.

• Compressed hours – eg, the ability to either work agreed annual hours in a shorter period (at flat rate) or to work above contracted hours (at flat rate). In both cases above the 36 hours national conditions

• Pre-set annual leave arrangements, ie prohibiting leave at certain times, smoothing leave throughout entire leave year and the use of ‘closedown’ periods.

The options were discussed with servicemanagers and a number of prioritiesconsistently emerged across the Housing Service:

� Preference to extend both the start andend of the working day (ie, to 8am-8pm) and extend service availability to

6 days in 7 by working Saturday mornings

� Flexible weekly hours within a banded upper and lower limit was not supported in general as this would make resource planning too difficult

� Annualised and compressed hours wereseen as offering potential benefits to service delivery and resource planning

� Pre-set annual leave, ie prohibiting leave at certain times, smoothing leave throughout the year or use of ‘closedown’ periods were seen as offering potential benefits, particularly where there were cyclical peaks in workload

� Common theme to emerge was the continued relevance of core/fixed working hours to teleworkers. Service managers broadly took the view that so long as work was carried out to agreed levels working time could be credited on a 24/7 basis

Opportunities to utilise HR to supportmodernised working:

The objective was to identify:

• The HR policy priorities that service managers believed were needed for modernised working to be effectively deployed

• To highlight the ‘softer’ less tangible organisational risks that threatened the effective delivery of modernised working

• The competencies (knowledge, skill and behaviour) that service managers believed were most necessary for their staff and managers to deliver modernised working

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82 83

Location (headcount)

CURRENTWORKDESKS

Opportunities For mobile,Teleworking

Hot desks on1:3-1:4 ratio

Balance needing1:1 desk ratio

MODERNISEDWORKDESKS

Civic Centre 265 183 45-61 82 127-143

Area HousingOffices x 4

154 112 28-37 42 70-79

TOTAL 419 295 73-98 124 197-222

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8584

This part of the analysis identified anumber of consistent perceptions andmessages from service managers:

� The priority was for HR to develop an effective policy response to teleworking(including health and safety issues), managing the performance of geographically dispersed teams and resolving the contractual issues associated with modernised working

� Potential threats to modernised working identified by service managers included focusing on ICT at the expenseof human factors (eg maintaining teamidentity and culture despite geographic dispersal), ineffective performance management of dispersed teams, (management concerns that ‘I can’t manage what I can’t see’) and managing the uncertainty created for both managers and employees by modernised working

� Common competencies for employees and managers necessary to sustain modernised working included:

• Self-learning • Professionally up to date • ICT self sufficient • Increased health and safety and

equalities awareness • Customer focused • Personally accountable and

organised • Flexible and having good

colleague relationships

Opportunities for electronic datamanagement (EDM) to supportmodernised Working:

The objective was to identify the data thatneeded to be available electronically tosupport modernised mobile and/orteleworkers.

Service managers identified the manualand electronic data requirements for eachfunction previously earmarked as beingpotentially suitable for modernisedworking. The following results emerged:

• Confirmation of the value of Housing’s previous ICT investments in an integrated housing management system and the deployment of ‘thin’ client technology across Housing’s 430 user base in 2001. Both were seen as providing foundations for future web based applications and new working methods

• Broad categories of data needed to support modernised working were highlighted as information hubs for a number of modernised working practices:

• Tenant files (people based data) • Client case files (Benefits, Emergency

Housing, Private Sector, Sales etc) • Property files (capital programme

project data, property related, ie estates, sheltered and hostels)

• Mobile data requirements for employees, particularly for staff involved in site inspections/visits. These offered opportunities for productivity gains by enabling remote access to back office databases (either read only or to update online)

• Service specific and genericpolicy/technical/professional guidance (ie health and safety etc)

Risks and issues raised by themodernised working diagnostic

Completing the modernised workingelement of the diagnostic raised a numberof issues and risks for Housing Services toconsider:

Modernised working:

1. How to effectively manage the reduction in dual purpose building assets – ie those that contain both office space and face-to-face public contact facilities?

2. What happens to office accommodationpost-modernised working? Is the remaining office space rationalised (ie close down), consolidated (ie merged) or centralised?

3. Where and how will future face-to-face contact with the community be conducted after the accommodation portfolio has contracted post-modernised working?

Housing Services’ approach to thesensitive and complex issue of face-to-facepublic contact was to seek thecommunity’s views via a citizen survey. The options being evaluated are toincrease the use of home appointments(where safe to do so), develop singledelivery points for face-to-face contact ie at centralised or consolidated officelocations or develop surgeries/drop-infacilities located at community facilities ie hospitals, GP surgeries, other councilpremises – libraries, or shopping centre etc.

Flexible working preferences:

1. How to manage the potential tensions between the needs of the service and employees’ desire for an improved work-life-balance? The opportunities presented by greater flexible working could allow employees to develop a work-life-balance suitable to their personal circumstances. However service need to take precedence. A solution being considered is to develop a ‘menu’ of flexible working options that managers and employees can select from to ensure service needs are met.

2. How to manage the resource implications of extending total hours of service delivery and availability? The keyfactor is likely to be the impact of modernised working on aggregate demand for services. Where demand remains unchanged despite increased service availability (ie total demand is spread more thinly), the priority will be to reorganise existing resources to coverthe extended hours of service availability. Where aggregate demand expands in line with increased service availability, additional resources will be needed unless modernised working delivers offsetting productivity gains.

3. How to reconcile the need for increased flexible local employment practices with local government’s national employment conditions framework? Hillingdon’s approach has been to seek a negotiatedprovision of flexible working through the council’s existing single table harmonisation machinery.

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This part of the analysis identified anumber of consistent perceptions andmessages from service managers:

� The priority was for HR to develop an effective policy response to teleworking(including health and safety issues), managing the performance of geographically dispersed teams and resolving the contractual issues associated with modernised working

� Potential threats to modernised working identified by service managers included focusing on ICT at the expenseof human factors (eg maintaining teamidentity and culture despite geographic dispersal), ineffective performance management of dispersed teams, (management concerns that ‘I can’t manage what I can’t see’) and managing the uncertainty created for both managers and employees by modernised working

� Common competencies for employees and managers necessary to sustain modernised working included:

• Self-learning • Professionally up to date • ICT self sufficient • Increased health and safety and

equalities awareness • Customer focused • Personally accountable and

organised • Flexible and having good

colleague relationships

Opportunities for electronic datamanagement (EDM) to supportmodernised Working:

The objective was to identify the data thatneeded to be available electronically tosupport modernised mobile and/orteleworkers.

Service managers identified the manualand electronic data requirements for eachfunction previously earmarked as beingpotentially suitable for modernisedworking. The following results emerged:

• Confirmation of the value of Housing’s previous ICT investments in an integrated housing management system and the deployment of ‘thin’ client technology across Housing’s 430 user base in 2001. Both were seen as providing foundations for future web based applications and new working methods

• Broad categories of data needed to support modernised working were highlighted as information hubs for a number of modernised working practices:

• Tenant files (people based data) • Client case files (Benefits, Emergency

Housing, Private Sector, Sales etc) • Property files (capital programme

project data, property related, ie estates, sheltered and hostels)

• Mobile data requirements for employees, particularly for staff involved in site inspections/visits. These offered opportunities for productivity gains by enabling remote access to back office databases (either read only or to update online)

• Service specific and genericpolicy/technical/professional guidance (ie health and safety etc)

Risks and issues raised by themodernised working diagnostic

Completing the modernised workingelement of the diagnostic raised a numberof issues and risks for Housing Services toconsider:

Modernised working:

1. How to effectively manage the reduction in dual purpose building assets – ie those that contain both office space and face-to-face public contact facilities?

2. What happens to office accommodationpost-modernised working? Is the remaining office space rationalised (ie close down), consolidated (ie merged) or centralised?

3. Where and how will future face-to-face contact with the community be conducted after the accommodation portfolio has contracted post-modernised working?

Housing Services’ approach to thesensitive and complex issue of face-to-facepublic contact was to seek thecommunity’s views via a citizen survey. The options being evaluated are toincrease the use of home appointments(where safe to do so), develop singledelivery points for face-to-face contact ie at centralised or consolidated officelocations or develop surgeries/drop-infacilities located at community facilities ie hospitals, GP surgeries, other councilpremises – libraries, or shopping centre etc.

Flexible working preferences:

1. How to manage the potential tensions between the needs of the service and employees’ desire for an improved work-life-balance? The opportunities presented by greater flexible working could allow employees to develop a work-life-balance suitable to their personal circumstances. However service need to take precedence. A solution being considered is to develop a ‘menu’ of flexible working options that managers and employees can select from to ensure service needs are met.

2. How to manage the resource implications of extending total hours of service delivery and availability? The keyfactor is likely to be the impact of modernised working on aggregate demand for services. Where demand remains unchanged despite increased service availability (ie total demand is spread more thinly), the priority will be to reorganise existing resources to coverthe extended hours of service availability. Where aggregate demand expands in line with increased service availability, additional resources will be needed unless modernised working delivers offsetting productivity gains.

3. How to reconcile the need for increased flexible local employment practices with local government’s national employment conditions framework? Hillingdon’s approach has been to seek a negotiatedprovision of flexible working through the council’s existing single table harmonisation machinery.

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Human Resource priorities

Some of the most important questionsposed by the modernisation agenda werehighlighted at this stage:

1. Is the implementation of modernised working (particularly teleworking, mobile working and changes to service availability) mandatory or voluntary? If mandatory, does it apply to existing and/or new employees, or will implementation be phased over time? There are a range of factors to be considered, particularly social exclusion,health and safety, and issues where employees do not have suitable domestic accommodation to support teleworking. There is also the clear issueof personal choice: some people want to go to their employer’s place of work and do not want to remain at home. However, this needs to be carefully balanced against potential cost and productivity gains that may accrue fromreductions in accommodation costs, improved productivity and enhanced service quality resulting from modernised working.

2. Are managers and colleagues competent (knowledge, skills and behaviour) to operate effectively in a post-modernised working environment? The greater degree of personal responsibility and accountability, professional discretion, lone working, often accompanied by more direct contact with the community may not motivate all existing staff. What will the employer’s response be in these circumstances?

3. What is the impact of modernised working on established forms of job

design? Throughout Housing Services staff multi-task, performing front and back office tasks at different times as well as desk-based and mobile working.Productivity gains could be achieved by specialising and consolidating tasks at particular times. Indeed, this is likely to be a prerequisite for modernised working as tasks suitable for tele and mobile working will have to be consolidated into continuous working periods.

Electronic document management:

1. The EDM aspects of the diagnostic raised the question of how to effectively manage existing manual data? Consideration needs to be given to data protection, client confidentialityand possible Human Rights Act implications. In addition, the practical consideration that widescale modernised working is not sustainable if mobile and teleworkers are transporting large amounts of manual data between different places of work needs to be addressed.

Housing’s objective is that to supportmodernised working, data needs to beavailable electronically via the council’s ICTnetwork – and that the data is accessibleto remote staff 24/7 without the need forconfidential citizen or commercial databeing hosted/stored outside the council’ssecure ‘firewall’.

CITIZEN CONTACT DIAGNOSTIC –HOUSING SERVICES

The context for this element of diagnosticwas the recognition that digitalcommunication technologies werecreating new opportunities in themanagement of citizen contact. In NorthAmerica and the EU, large public andprivate sector organisations areprogressing beyond telephony based callcentres and towards multi-channel contactcentres. These changes in channelmanagement have been giving greaterfocus by the emergence of customer (orcitizen) relationship management (CRM)software applications being marketed foruse in the UK public sector.

Consequently, the objective of this part ofthe diagnostic was to understand thenature of Housing Services contact with itscommunity and the channel preferencesfor this contact. This information wouldhelp determine how citizen contact coulddeliver higher quality service outcomes forthe community and leverage potentialeconomies of scale for the council bydeploying:

• Multi-channel contact centre(s) • Consolidated handling of

generic enquiries • A single point of contact

for citizens • Improved service accessibility through

24/7 online information • Citizen self service

Preferred service delivery andcommunications channels:

The objective was to work with servicemanagers to identify and categoriseservice delivery using two criteria. First,the channel used (for both inbound andoutbound communications) and second,the qualitative nature of the servicerelationship between Housing and the citizen.

• Channels were categorised as face- to-face, telephone, letter, email or fax

• Service relationships were qualitatively categorised as either:

• ‘Tell Me’ – where there was a relatively simple exchange of information that was not necessarily client-specific.

• ‘Help Me’ – where further assistance/enquiry was needed and related to the specific circumstances of the citizen.

• “Relate To Me” - where the specific communication or transaction was, inalmost all cases, part of a longer term, more complex relationship between the council and citizen.

Service managers estimated currentvolumes of interactions with thecommunity for each channel – andcharacterised the nature of therelationship as either ‘tell’, ‘help’ or ‘relate to me’.

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Human Resource priorities

Some of the most important questionsposed by the modernisation agenda werehighlighted at this stage:

1. Is the implementation of modernised working (particularly teleworking, mobile working and changes to service availability) mandatory or voluntary? If mandatory, does it apply to existing and/or new employees, or will implementation be phased over time? There are a range of factors to be considered, particularly social exclusion,health and safety, and issues where employees do not have suitable domestic accommodation to support teleworking. There is also the clear issueof personal choice: some people want to go to their employer’s place of work and do not want to remain at home. However, this needs to be carefully balanced against potential cost and productivity gains that may accrue fromreductions in accommodation costs, improved productivity and enhanced service quality resulting from modernised working.

2. Are managers and colleagues competent (knowledge, skills and behaviour) to operate effectively in a post-modernised working environment? The greater degree of personal responsibility and accountability, professional discretion, lone working, often accompanied by more direct contact with the community may not motivate all existing staff. What will the employer’s response be in these circumstances?

3. What is the impact of modernised working on established forms of job

design? Throughout Housing Services staff multi-task, performing front and back office tasks at different times as well as desk-based and mobile working.Productivity gains could be achieved by specialising and consolidating tasks at particular times. Indeed, this is likely to be a prerequisite for modernised working as tasks suitable for tele and mobile working will have to be consolidated into continuous working periods.

Electronic document management:

1. The EDM aspects of the diagnostic raised the question of how to effectively manage existing manual data? Consideration needs to be given to data protection, client confidentialityand possible Human Rights Act implications. In addition, the practical consideration that widescale modernised working is not sustainable if mobile and teleworkers are transporting large amounts of manual data between different places of work needs to be addressed.

Housing’s objective is that to supportmodernised working, data needs to beavailable electronically via the council’s ICTnetwork – and that the data is accessibleto remote staff 24/7 without the need forconfidential citizen or commercial databeing hosted/stored outside the council’ssecure ‘firewall’.

CITIZEN CONTACT DIAGNOSTIC –HOUSING SERVICES

The context for this element of diagnosticwas the recognition that digitalcommunication technologies werecreating new opportunities in themanagement of citizen contact. In NorthAmerica and the EU, large public andprivate sector organisations areprogressing beyond telephony based callcentres and towards multi-channel contactcentres. These changes in channelmanagement have been giving greaterfocus by the emergence of customer (orcitizen) relationship management (CRM)software applications being marketed foruse in the UK public sector.

Consequently, the objective of this part ofthe diagnostic was to understand thenature of Housing Services contact with itscommunity and the channel preferencesfor this contact. This information wouldhelp determine how citizen contact coulddeliver higher quality service outcomes forthe community and leverage potentialeconomies of scale for the council bydeploying:

• Multi-channel contact centre(s) • Consolidated handling of

generic enquiries • A single point of contact

for citizens • Improved service accessibility through

24/7 online information • Citizen self service

Preferred service delivery andcommunications channels:

The objective was to work with servicemanagers to identify and categoriseservice delivery using two criteria. First,the channel used (for both inbound andoutbound communications) and second,the qualitative nature of the servicerelationship between Housing and the citizen.

• Channels were categorised as face- to-face, telephone, letter, email or fax

• Service relationships were qualitatively categorised as either:

• ‘Tell Me’ – where there was a relatively simple exchange of information that was not necessarily client-specific.

• ‘Help Me’ – where further assistance/enquiry was needed and related to the specific circumstances of the citizen.

• “Relate To Me” - where the specific communication or transaction was, inalmost all cases, part of a longer term, more complex relationship between the council and citizen.

Service managers estimated currentvolumes of interactions with thecommunity for each channel – andcharacterised the nature of therelationship as either ‘tell’, ‘help’ or ‘relate to me’.

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Total inbound communication wascharacterised as follows:

Analysis of inbound communicationidentified that:

� The reasons why citizens’ contact with Housing were in broad terms equally split between ‘tell’, ‘help’ and ‘relate’ – in other words more than two in three contacts were seeking some form of generic information/general help with aspecific problem.

� In line with other research the telephone was the preferred channel for inbound communication, although not unsurprisingly face-to-face contact increases in preference for more complex/sensitive service contact(s). It was of interest to note that one in six inbound communication remained in writing, either manual or electronic.

Total outbound communication wascharacterised as follows:

Analysis of outbound communicationidentified that:

� The reasons why Housing Services’ contacted citizens appeared to be similar to the inbound analysis, namely,equally split between ‘tell’, ‘help’ and ‘relate’ interactions. This suggested thattwo in three outbound transactions were related to an exchange of information or providing general help to the citizen.

� Housing’s preferred channel for outbound communication was also the telephone. However, face-to-face communication was preferred for the more sensitive and complex ‘relate to me’ interactions. It was noted that one in four outbound transactions was undertaken in writing – the vast majority undertaking in writing and posted to the recipient.

In overall terms this analysis suggested anumber of priorities for Housing Services:

• The need to develop online citizen self-service for the 65% of total communication which was either exchanging data (‘tell me’) or providinggeneral advice to the citizen (‘help me’)

• Seek to digitise (email etc’) written communication that for legal or other reasons needs to be retained

Risks and issues raised by the citizencontact diagnostic

Completing this element of the diagnostichighlighted a number of important risksand issues for Housing Services:

1. The importance of developing a thorough citizen contact strategy – setting out how first line citizen contactwill be managed on a channel-by-channel basis. Housing Services’ preferred approach is to consolidate thehandling of the 65% ‘tell me’ and ‘help me’ transactions in a contact centre – while retaining specialist teamsto manage the 35% of complex ‘relate to me’ interactions.

2. The citizen contact strategy will need toaddress sensitive organisational issues. For example, which forms of citizen contact are best managed on a council wide basis and which are best managedby individual services? Hillingdon’s corporate approach has been to simultaneously participate in a Pathfinder CRM project, pilot a contact centre in a discreet service area while prioritising services that could be located in a council-wide contact centrein the future.

3. At an organisational level a key question was whether Housing possessed the specialist skills to manageeffectively the high volume of ‘tell me’ and ‘help me’ transactions. The deployment of a contact centre would require people with specialist customer (citizen) service and management competencies. This would represent a potential threat to existing back office and public contact staff who may possess different competencies.

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Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 29% 49% 16% 4% 2% 100% 29% ‘Help me’ 39% 44% 12% 4% 1% 100% 38% ‘Relate to me’ 36% 49% 11% 3% 1% 100% 33%

TOTAL 35% 47% 13% 4% 1% 100%100%

Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 23% 50% 23% 3% 1% 100% 27% ‘Help me’ 34% 43% 19% 3% 1% 100% 39% ‘Relate to me’ 40% 33% 23% 3% 1% 100% 34%

TOTAL 33% 42% 21% 3 % 1 % 100%100%

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Total inbound communication wascharacterised as follows:

Analysis of inbound communicationidentified that:

� The reasons why citizens’ contact with Housing were in broad terms equally split between ‘tell’, ‘help’ and ‘relate’ – in other words more than two in three contacts were seeking some form of generic information/general help with aspecific problem.

� In line with other research the telephone was the preferred channel for inbound communication, although not unsurprisingly face-to-face contact increases in preference for more complex/sensitive service contact(s). It was of interest to note that one in six inbound communication remained in writing, either manual or electronic.

Total outbound communication wascharacterised as follows:

Analysis of outbound communicationidentified that:

� The reasons why Housing Services’ contacted citizens appeared to be similar to the inbound analysis, namely,equally split between ‘tell’, ‘help’ and ‘relate’ interactions. This suggested thattwo in three outbound transactions were related to an exchange of information or providing general help to the citizen.

� Housing’s preferred channel for outbound communication was also the telephone. However, face-to-face communication was preferred for the more sensitive and complex ‘relate to me’ interactions. It was noted that one in four outbound transactions was undertaken in writing – the vast majority undertaking in writing and posted to the recipient.

In overall terms this analysis suggested anumber of priorities for Housing Services:

• The need to develop online citizen self-service for the 65% of total communication which was either exchanging data (‘tell me’) or providinggeneral advice to the citizen (‘help me’)

• Seek to digitise (email etc’) written communication that for legal or other reasons needs to be retained

Risks and issues raised by the citizencontact diagnostic

Completing this element of the diagnostichighlighted a number of important risksand issues for Housing Services:

1. The importance of developing a thorough citizen contact strategy – setting out how first line citizen contactwill be managed on a channel-by-channel basis. Housing Services’ preferred approach is to consolidate thehandling of the 65% ‘tell me’ and ‘help me’ transactions in a contact centre – while retaining specialist teamsto manage the 35% of complex ‘relate to me’ interactions.

2. The citizen contact strategy will need toaddress sensitive organisational issues. For example, which forms of citizen contact are best managed on a council wide basis and which are best managedby individual services? Hillingdon’s corporate approach has been to simultaneously participate in a Pathfinder CRM project, pilot a contact centre in a discreet service area while prioritising services that could be located in a council-wide contact centrein the future.

3. At an organisational level a key question was whether Housing possessed the specialist skills to manageeffectively the high volume of ‘tell me’ and ‘help me’ transactions. The deployment of a contact centre would require people with specialist customer (citizen) service and management competencies. This would represent a potential threat to existing back office and public contact staff who may possess different competencies.

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Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 29% 49% 16% 4% 2% 100% 29% ‘Help me’ 39% 44% 12% 4% 1% 100% 38% ‘Relate to me’ 36% 49% 11% 3% 1% 100% 33%

TOTAL 35% 47% 13% 4% 1% 100%100%

Relationship Face-to-Face Telephone Letter Email FAX TOTAL ‘Tell me’ 23% 50% 23% 3% 1% 100% 27% ‘Help me’ 34% 43% 19% 3% 1% 100% 39% ‘Relate to me’ 40% 33% 23% 3% 1% 100% 34%

TOTAL 33% 42% 21% 3 % 1 % 100%100%

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E-SERVICES DIAGNOSTIC –HOUSING SERVICES

The context for this part of the diagnosticwas central government’s information-agesociety agenda and the specific e-servicesperformance measure BVPI157. Movingbeyond the work required for BVPI157,Housing Services considered the ways thatservice quality and effectiveness could beenhanced via e-enablement. From thiswork the e-services element of thediagnostic emerged.

Opportunities for modernised e-Services

The objective was to build on the initialBV157 audit by working with servicemanagers to systematically identify theopportunities to e-enable service functionsagainst of the following themes:

• Citizen self-service: Making both generic and citizen specific information available online – so the community could directly access information to answer their own queries without needing to make direct contact with the council

• Online transactions: At its simplest level this meant digitising existing manual processes including service enquiries, commissioning, online payment for services and the ability to provide citizens with an end-to-end online process for services that are fragmented amongst different parts of the council or between local and central government agencies.

• Removing intermediaries: Digital communication could facilitate direct contact between citizens and service providers – eg council, contractor,

government agency or voluntary sector.There were examples where the councilacted as an intermediary between the citizen and third parties. The diagnosticchallenged the council to review whether this intermediary role added value or whether direct access betweenthe citizen and third party should be e-enabled

• Cross-boundary working: It was recognised that digital communication and government policy were challenging existing administrative boundaries. Therefore the diagnostic was directed to identify opportunities to develop regional and sub-regional inter-agency partnership and service delivery

• e-speed: The statutory nature of Housing’s activities and the long-term relationship with tenants meant that end-to-end service delivery processes could be time-consuming, particularly ifmail was posted. Consequently the diagnostic identified opportunities to use electronic communication to reduce the total elapsed time to complete multiple stage transactions.

• Community engagement: It was recognised that direct, ongoing engagement with service users, the wider community and hard-to-reach groups could be facilitated online. Improved online engagement could be facilitated between the council and community on a number of levels. For example between citizens and business,between citizens themselves and between citizens and the voluntary sector or government agencies.

An extensive range of e-serviceopportunities emerged from discussionswith service managers. Examples include:

• Citizen self-service: Online FAQs, access criteria and policies for all services. Making project case files accessible to tenants and development partners etc. E-enabling client case files(Benefits etc) to facilitate online citizen enquiry. Online referral points/contact details for tenant associations and landlord services.

• Online transactions: Including service request forms, booking appointments for home visits, end-to-end online service process, eg Housing Benefits application, decision, appeal and change of circumstances. Discreet transactions eg ‘Homefinder’, nuisance complaints, mutual exchange, arrears escalation process and the tenant exit checklist were also identified.

• Removing intermediaries: Direct tenant-to-service provider contact to address Resident Quality Promise performance issues were identified and direct tenant-to-tenant contact where needed, eg for mutual exchange and finally b2b procurement by service managers with suppliers.

• Cross-boundary working: Opportunities to develop sub-regional procurement and/or deliverymechanisms were identified, eg, empty homes strategy, procurement of property, temporary accommodation support, mutual exchanges, transfers and Right to Buy process.

• e-speed: Lengthy, multi-stage processes such as Benefits, Repairs for services (tenants and leaseholders) could benefit from using electronic communication.

• Community engagement: More immediate and targeted community engagement opportunities were identified including the capital

programme formulation, Works Over Prescribed Limit consultation, tenant initiative funds and advisory services. Ongoing performance and tenant feedback on service delivery and promotion of take-up for particular services could also be e-enabled.

Risks and issues raised by the e-services diagnostic

The step-wise change envisaged by widescale e-service modernisation raised anumber of challenging questions.

1. Does a robust community access strategy exist? The potential benefits of e-services are underpinned by an accessstrategy that raises awareness, promotes, and supports the take-up of digital technologies. This is particularly relevant for hard to reach, socially or economically excluded groups who otherwise are likely to be late adopters of digital technologies. Hillingdon’s approach has been to promote library based public access terminals and develop an iDTV pilot.

2. How to prioritise investment in e- services? This was particularly difficult to answer, due to a lack of clear evidence demonstrating the tangible benefits of e-service initiatives. Hillingdon’s response was to develop ane-services prioritisation model which is not reported on here.

3. How will the supply chain be e- enabled? Housing’s initial diagnostic work focused on e-services to the end service user or citizen. It became apparent that this approach did not paysufficient attention to e-enabling other elements of the supply chain, including procurement, supply of goods and

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E-SERVICES DIAGNOSTIC –HOUSING SERVICES

The context for this part of the diagnosticwas central government’s information-agesociety agenda and the specific e-servicesperformance measure BVPI157. Movingbeyond the work required for BVPI157,Housing Services considered the ways thatservice quality and effectiveness could beenhanced via e-enablement. From thiswork the e-services element of thediagnostic emerged.

Opportunities for modernised e-Services

The objective was to build on the initialBV157 audit by working with servicemanagers to systematically identify theopportunities to e-enable service functionsagainst of the following themes:

• Citizen self-service: Making both generic and citizen specific information available online – so the community could directly access information to answer their own queries without needing to make direct contact with the council

• Online transactions: At its simplest level this meant digitising existing manual processes including service enquiries, commissioning, online payment for services and the ability to provide citizens with an end-to-end online process for services that are fragmented amongst different parts of the council or between local and central government agencies.

• Removing intermediaries: Digital communication could facilitate direct contact between citizens and service providers – eg council, contractor,

government agency or voluntary sector.There were examples where the councilacted as an intermediary between the citizen and third parties. The diagnosticchallenged the council to review whether this intermediary role added value or whether direct access betweenthe citizen and third party should be e-enabled

• Cross-boundary working: It was recognised that digital communication and government policy were challenging existing administrative boundaries. Therefore the diagnostic was directed to identify opportunities to develop regional and sub-regional inter-agency partnership and service delivery

• e-speed: The statutory nature of Housing’s activities and the long-term relationship with tenants meant that end-to-end service delivery processes could be time-consuming, particularly ifmail was posted. Consequently the diagnostic identified opportunities to use electronic communication to reduce the total elapsed time to complete multiple stage transactions.

• Community engagement: It was recognised that direct, ongoing engagement with service users, the wider community and hard-to-reach groups could be facilitated online. Improved online engagement could be facilitated between the council and community on a number of levels. For example between citizens and business,between citizens themselves and between citizens and the voluntary sector or government agencies.

An extensive range of e-serviceopportunities emerged from discussionswith service managers. Examples include:

• Citizen self-service: Online FAQs, access criteria and policies for all services. Making project case files accessible to tenants and development partners etc. E-enabling client case files(Benefits etc) to facilitate online citizen enquiry. Online referral points/contact details for tenant associations and landlord services.

• Online transactions: Including service request forms, booking appointments for home visits, end-to-end online service process, eg Housing Benefits application, decision, appeal and change of circumstances. Discreet transactions eg ‘Homefinder’, nuisance complaints, mutual exchange, arrears escalation process and the tenant exit checklist were also identified.

• Removing intermediaries: Direct tenant-to-service provider contact to address Resident Quality Promise performance issues were identified and direct tenant-to-tenant contact where needed, eg for mutual exchange and finally b2b procurement by service managers with suppliers.

• Cross-boundary working: Opportunities to develop sub-regional procurement and/or deliverymechanisms were identified, eg, empty homes strategy, procurement of property, temporary accommodation support, mutual exchanges, transfers and Right to Buy process.

• e-speed: Lengthy, multi-stage processes such as Benefits, Repairs for services (tenants and leaseholders) could benefit from using electronic communication.

• Community engagement: More immediate and targeted community engagement opportunities were identified including the capital

programme formulation, Works Over Prescribed Limit consultation, tenant initiative funds and advisory services. Ongoing performance and tenant feedback on service delivery and promotion of take-up for particular services could also be e-enabled.

Risks and issues raised by the e-services diagnostic

The step-wise change envisaged by widescale e-service modernisation raised anumber of challenging questions.

1. Does a robust community access strategy exist? The potential benefits of e-services are underpinned by an accessstrategy that raises awareness, promotes, and supports the take-up of digital technologies. This is particularly relevant for hard to reach, socially or economically excluded groups who otherwise are likely to be late adopters of digital technologies. Hillingdon’s approach has been to promote library based public access terminals and develop an iDTV pilot.

2. How to prioritise investment in e- services? This was particularly difficult to answer, due to a lack of clear evidence demonstrating the tangible benefits of e-service initiatives. Hillingdon’s response was to develop ane-services prioritisation model which is not reported on here.

3. How will the supply chain be e- enabled? Housing’s initial diagnostic work focused on e-services to the end service user or citizen. It became apparent that this approach did not paysufficient attention to e-enabling other elements of the supply chain, including procurement, supply of goods and

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services, and data exchange with government agencies and partners.

4. Does a resilient network of technology providers and partners exist? Work withcouncil colleagues and other suppliers has developed a resilient communications infrastructure to support the piloting of mobile and teleworking solutions as well as online payments and citizen authentication portals. More problematic (in Housing’s case) was generating supplier markets, commitment to develop a comprehensive range of innovative citizen focused e-service solutions. Housing’s approach has been to continue to work with existing and newsuppliers to pilot innovative solutions asa step towards achieving a broader strategic partnership(s).

Step 3:Reality check

INTRODUCTION

Having completed the modernisationdiagnostic and identified the keyopportunities and risks – step 3, Thereality check – was the next element inbuilding the business case. The objectivesof step 3 were to:

1. Clarify the key opportunities and risks generated by the diagnostic

2. Assess the opportunities and risks against the benefits identified at step 1

3. Determine whether the opportunities and risks were likely to generate an acceptable level of benefit, paying particular attention to the evaluation and management of risks identified by the diagnostic. In Hillingdon this assessment was directed towards the

following issues:

• If an acceptable level of benefit was not demonstrated – pause and review the original benefits, revisit the diagnostic’s scope and if necessary determine why the modernisation business case was not sustainable.

• If an acceptable level of benefit was demonstrated, the costs and savings associated with the opportunities in question were developed into a costed ROI in step 4, completing the business case.

REALITY CHECK – LONDONBOROUGH OF HILLINGDON ANDHOUSING SERVICES

Clarify the opportunities and risksgenerated by the diagnostic

Applying the three elements of themodernised working diagnostic toHousing Services identified a number ofopportunities and risks:

Business case opportunities:

1. 70% of office-based staff could benefit from modernised tele/mobile working for 2-4 days per week. Wide scale deployment of modernised working could reduce the number of office workdesks by between 47% – 53% via the provision of internet-enabled e-working arrangements.

2. The preference among service managers to combine improved service availability (both morning and evenings,plus Saturday mornings) with more flexible working practices including annualised and compressed hours, 24/7

credit for working time and changes to annual leave arrangements.

3. Approximately 65% of total services transaction volumes with the community were characterised as relatively generic in nature. This data generated the opportunity to use onlineapplications to centralise the management of these generic citizen contacts – while leaving the more complex sensitive transactions with existing specialist teams.

4. A wide range of service functions were identified as suitable for e-enabling. Opportunities to deliver potentially faster, cheaper and more consistent services online were clarified. In addition, new and innovative opportunities to enhance community engagement, reduce the need for mediation and develop sub-regional delivery mechanisms through e-enablement were also identified.

Business case risk factors

1. A common theme to emerge was the importance of effectively managing key human resource factors – and the risk to the modernisation programme of notdoing so. In particular:

• Whether modernised working was mandatory or voluntary?

• Maintaining a balance between employee expectations for improved work-life-balance and the needs of the service

• Capability gap analysis – whether the right skills to sustain a modernised organisation exist, and if not how are they going to be nurtured

• Managing constrained human resources when faced by increased

community expectations and aggregate demand

2. The effective management of physical assets was identified as crucial. Decisions on how to rationalise post-modernised working office accommodation and how future face-to-face public contact will be delivered are vital

3. Fostering and promoting community access to digital channels was identifiedas critical to realising the opportunities and benefits of e-services. Without an effective access strategy the risk exists that considerable public resources will be committed to e-enable services that only a relatively small proportion of the local community will access or use

4. Delivery of the modernisation agenda needs a robust and diverse network of technology partners to plan, deliver and maintain the core ICT infrastructureand value-added software that underpins both modernised working, improved first line citizen service and e-enabled services

Does the business case deliveracceptable benefits?

The modernisation diagnostic identified awide range of opportunities to improvecost-effectiveness, service quality andcitizen service. It also highlighted anumber of risks – primarily associated withdelivering organisational change, assetmanagement, socially inclusive e-deliveryand maintaining a robust network ofpartners and suppliers.

To assist the discussion on whether thediagnostic delivered acceptable benefits,Housing revisted the original benefitsmatrix. Through a qualitative, rather than

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services, and data exchange with government agencies and partners.

4. Does a resilient network of technology providers and partners exist? Work withcouncil colleagues and other suppliers has developed a resilient communications infrastructure to support the piloting of mobile and teleworking solutions as well as online payments and citizen authentication portals. More problematic (in Housing’s case) was generating supplier markets, commitment to develop a comprehensive range of innovative citizen focused e-service solutions. Housing’s approach has been to continue to work with existing and newsuppliers to pilot innovative solutions asa step towards achieving a broader strategic partnership(s).

Step 3:Reality check

INTRODUCTION

Having completed the modernisationdiagnostic and identified the keyopportunities and risks – step 3, Thereality check – was the next element inbuilding the business case. The objectivesof step 3 were to:

1. Clarify the key opportunities and risks generated by the diagnostic

2. Assess the opportunities and risks against the benefits identified at step 1

3. Determine whether the opportunities and risks were likely to generate an acceptable level of benefit, paying particular attention to the evaluation and management of risks identified by the diagnostic. In Hillingdon this assessment was directed towards the

following issues:

• If an acceptable level of benefit was not demonstrated – pause and review the original benefits, revisit the diagnostic’s scope and if necessary determine why the modernisation business case was not sustainable.

• If an acceptable level of benefit was demonstrated, the costs and savings associated with the opportunities in question were developed into a costed ROI in step 4, completing the business case.

REALITY CHECK – LONDONBOROUGH OF HILLINGDON ANDHOUSING SERVICES

Clarify the opportunities and risksgenerated by the diagnostic

Applying the three elements of themodernised working diagnostic toHousing Services identified a number ofopportunities and risks:

Business case opportunities:

1. 70% of office-based staff could benefit from modernised tele/mobile working for 2-4 days per week. Wide scale deployment of modernised working could reduce the number of office workdesks by between 47% – 53% via the provision of internet-enabled e-working arrangements.

2. The preference among service managers to combine improved service availability (both morning and evenings,plus Saturday mornings) with more flexible working practices including annualised and compressed hours, 24/7

credit for working time and changes to annual leave arrangements.

3. Approximately 65% of total services transaction volumes with the community were characterised as relatively generic in nature. This data generated the opportunity to use onlineapplications to centralise the management of these generic citizen contacts – while leaving the more complex sensitive transactions with existing specialist teams.

4. A wide range of service functions were identified as suitable for e-enabling. Opportunities to deliver potentially faster, cheaper and more consistent services online were clarified. In addition, new and innovative opportunities to enhance community engagement, reduce the need for mediation and develop sub-regional delivery mechanisms through e-enablement were also identified.

Business case risk factors

1. A common theme to emerge was the importance of effectively managing key human resource factors – and the risk to the modernisation programme of notdoing so. In particular:

• Whether modernised working was mandatory or voluntary?

• Maintaining a balance between employee expectations for improved work-life-balance and the needs of the service

• Capability gap analysis – whether the right skills to sustain a modernised organisation exist, and if not how are they going to be nurtured

• Managing constrained human resources when faced by increased

community expectations and aggregate demand

2. The effective management of physical assets was identified as crucial. Decisions on how to rationalise post-modernised working office accommodation and how future face-to-face public contact will be delivered are vital

3. Fostering and promoting community access to digital channels was identifiedas critical to realising the opportunities and benefits of e-services. Without an effective access strategy the risk exists that considerable public resources will be committed to e-enable services that only a relatively small proportion of the local community will access or use

4. Delivery of the modernisation agenda needs a robust and diverse network of technology partners to plan, deliver and maintain the core ICT infrastructureand value-added software that underpins both modernised working, improved first line citizen service and e-enabled services

Does the business case deliveracceptable benefits?

The modernisation diagnostic identified awide range of opportunities to improvecost-effectiveness, service quality andcitizen service. It also highlighted anumber of risks – primarily associated withdelivering organisational change, assetmanagement, socially inclusive e-deliveryand maintaining a robust network ofpartners and suppliers.

To assist the discussion on whether thediagnostic delivered acceptable benefits,Housing revisted the original benefitsmatrix. Through a qualitative, rather than

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quantitative process, each of the keybenefits originally identified was reviewedwith the opportunities and risks generatedby the diagnostic. The outcome was torate each benefit as either:

• Sustainable (ie ‘Yes’) • Unclear due to partial or incomplete

data (‘?’) or, • Compromised due to insufficient

opportunities or outweighed by risk (ie ‘No’). In Hillingdon’s particular

case ‘Nos’ were not identified

Benefit, target group matrix

The qualitative review of the benefitmatrix suggested the modernisationdiagnostic had provided evidence that anumber of benefits identified at step 1were potentially sustainable. The next step

was to complete the business case bycarrying out a quantitative assessment ofthe costs and savings derived from the keyopportunities and benefits.

Step 4:Completing thebusiness case

INTRODUCTION

To support the business case forimplementing key initiatives a financialReturn on Investment (ROI) model wasdeveloped covering each of the threeareas of modernisation diagnostic:modernised working practices,implementation of CRM practices toimprove citizen contact and e-enablingservice delivery.

The outcome of Housing’s reality check,identified a number of red and orangebenefits that appeared sustainable. Thepurpose of the step 4, completing thebusiness case was to use an establishedROI model to identify and scrutinise thequantitative costs and savings associatedwith each of the following benefitshighlighted by Housing’s reality check:

ROI METHODOLOGY – STRENGTHSAND LIMITATIONS

The ROI analysis was carried out using acashflow model as is common practice inthe private sector. The model wasdeveloped specifically for Hillingdon’spurposes using the same methodology ashas been used to evaluate benefits ofinternet business solutions at CiscoSystems across a number of e-businessdomains including Customer Care, SupplyChain Management, WorkforceOptimisation and E-Learning.

Simple cash-flow-based models like thishave been widely developed byorganisations looking at combinations ofinternet business solutions and IPtechnologies. ROI analysis is particularlyhelpful when used to consider not onlynew technologies being adopted but alsoimpacts on working practices andassociated business processes. This is themanner in which it was used at Hillingdon.

For each of the three areas ofmodernisation, a number of scenarios wascreated and modelled. Each scenarioconsidered a different combination ofinitiatives with associated benefits andcosts. In each case:

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

TARGET GROUPS

BENEFIT CATEGORIES

RED ORANGE GREEN Citizen andcommunity

(?) Disintermediation

Employees

(Y) Reducecommute time. Reduce turnover

(?) Staff

Service providers

(Y) Reduce premises costs (Y) Reduce recruitement cost (?) FM costs (?) Post costs (?) Telephony

Externalstakeholders

(?)Subregionaleconomies of scale

(Y) Meet citizen e-expectations

(Y) Service accessibility (?) Staff motivation (Y) Meet citizen e-expectations

motivation

(Y) Socially inclusive

Greater productivity

Red benefits Reduced office space

Reduced ICT infrastructure – related to fewer buildings Reduced recruitment costs throughimproved staff retention Potential savings fromrestructuring Reduced commute time

Orange benefits Restructuring – additionalperson hours Reduced commute time –additional person hours Reduced average response time –additional person hours Citizen self-service (self-service) –additional person hours

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quantitative process, each of the keybenefits originally identified was reviewedwith the opportunities and risks generatedby the diagnostic. The outcome was torate each benefit as either:

• Sustainable (ie ‘Yes’) • Unclear due to partial or incomplete

data (‘?’) or, • Compromised due to insufficient

opportunities or outweighed by risk (ie ‘No’). In Hillingdon’s particular

case ‘Nos’ were not identified

Benefit, target group matrix

The qualitative review of the benefitmatrix suggested the modernisationdiagnostic had provided evidence that anumber of benefits identified at step 1were potentially sustainable. The next step

was to complete the business case bycarrying out a quantitative assessment ofthe costs and savings derived from the keyopportunities and benefits.

Step 4:Completing thebusiness case

INTRODUCTION

To support the business case forimplementing key initiatives a financialReturn on Investment (ROI) model wasdeveloped covering each of the threeareas of modernisation diagnostic:modernised working practices,implementation of CRM practices toimprove citizen contact and e-enablingservice delivery.

The outcome of Housing’s reality check,identified a number of red and orangebenefits that appeared sustainable. Thepurpose of the step 4, completing thebusiness case was to use an establishedROI model to identify and scrutinise thequantitative costs and savings associatedwith each of the following benefitshighlighted by Housing’s reality check:

ROI METHODOLOGY – STRENGTHSAND LIMITATIONS

The ROI analysis was carried out using acashflow model as is common practice inthe private sector. The model wasdeveloped specifically for Hillingdon’spurposes using the same methodology ashas been used to evaluate benefits ofinternet business solutions at CiscoSystems across a number of e-businessdomains including Customer Care, SupplyChain Management, WorkforceOptimisation and E-Learning.

Simple cash-flow-based models like thishave been widely developed byorganisations looking at combinations ofinternet business solutions and IPtechnologies. ROI analysis is particularlyhelpful when used to consider not onlynew technologies being adopted but alsoimpacts on working practices andassociated business processes. This is themanner in which it was used at Hillingdon.

For each of the three areas ofmodernisation, a number of scenarios wascreated and modelled. Each scenarioconsidered a different combination ofinitiatives with associated benefits andcosts. In each case:

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

TARGET GROUPS

BENEFIT CATEGORIES

RED ORANGE GREEN Citizen andcommunity

(?) Disintermediation

Employees

(Y) Reducecommute time. Reduce turnover

(?) Staff

Service providers

(Y) Reduce premises costs (Y) Reduce recruitement cost (?) FM costs (?) Post costs (?) Telephony

Externalstakeholders

(?)Subregionaleconomies of scale

(Y) Meet citizen e-expectations

(Y) Service accessibility (?) Staff motivation (Y) Meet citizen e-expectations

motivation

(Y) Socially inclusive

Greater productivity

Red benefits Reduced office space

Reduced ICT infrastructure – related to fewer buildings Reduced recruitment costs throughimproved staff retention Potential savings fromrestructuring Reduced commute time

Orange benefits Restructuring – additionalperson hours Reduced commute time –additional person hours Reduced average response time –additional person hours Citizen self-service (self-service) –additional person hours

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• Red benefits (ie hard cost reductions) were estimated in terms of their monetary value

• Orange benefits (ie time saving productivity benefits) were modelled in two ways; in terms of their monetary value (by equating the time saved to the average salary rate); and in terms of the additional hours of time available to provide extra value-added services

• Green (ie non-financial) benefits were not modelled as part of the ROI although they do, of course, form part of the overall justification for implementation.

It is important to interpret what comesout of an ROI analysis. It should not bethought of as a ‘forecast’ predicting aknown future outcome. Such a viewimplies that the hard work is done oncethe business case is estimated. Rather, it is a way of helping an organisation todesign the future that they wish to create.

The ROI is a way of capturing assumptionsabout initiatives, their likely costs andbenefits in a transparent manner whichallows inspection and investigation of the implications of variations to theassumptions. Ultimately the real value ofthe model is making assumptions explicitand capturing the logical implications ofthose assumptions in terms of value to the organisation. The ROI at the planningstage does not address the key issue of allocating accountability to thoseresponsible for achieving the estimatedbenefits. The following sections describethe analysis and main results from the analysis.

THE ROI BUSINESS CASE FOR E-WORKING – HOUSING SERVICES

Cost categories and indicative values:

The table below describes the major costcomponents in the ROI model. These costs

are broken down into those which areone-off costs associated with theimplementation of modernised workingand recurring annual costs. Descriptions ofeach category are provided below.

Benefit categories and indicativefinancial values

To create the ROI business case, the costsoutlined above were compared to thebenefits achieved from modernisedworking. These benefits were derived bycomparing the working practices undermodernisation to those pre-modernisationand examining the costs associated witheach. The resulting savings, over a fouryear period, are described in the following table.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Cost summary Estimated Costs One-off costs £ One-off electronic data management costs (backscanning of images, EDM software)

265,000

One-off voice and data network costs (enhanced corporate, mobile and teleworker infrastructure)

83,500

One-off implementation support costs (project management and employee training)

90,000

One-off real estate costs (potential reverse premiums and new office kit)

371,000

One-off delayering costs 80,000 Annual costs £ Annual electronic data management costs (EDM software maintenance and upgrade)

15,000

Annual voice and data network costs (enhanced corporate and teleworker infrastructure)

128,500

Annual mobile technologies costs (mobile worker technologies)

25,000

Annual real estate costs (provision of alternative public contact premises)

100,000

Annual restructuring costs (potential redundancy and regrading costs)

128,250

Benefit category

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Real estate – Benefit from released space

116,096 559,994 682,920 682,920

Technology Infrastructure - benefits from fewer location

7,560 18,060 21,000 21,000

Employee Retention – annual recruitment cost saving

11,100 22,200 33,300 44,400

Restructuring – Average annual net cost saving

142,500 213,750 285,000 285,000

Commute time – Value of commute time

49,138 73,707 98,276 98,276

Sub total – modernised working benefits

£326,394 £887,711 £1,120,496 £1,131,596

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• Red benefits (ie hard cost reductions) were estimated in terms of their monetary value

• Orange benefits (ie time saving productivity benefits) were modelled in two ways; in terms of their monetary value (by equating the time saved to the average salary rate); and in terms of the additional hours of time available to provide extra value-added services

• Green (ie non-financial) benefits were not modelled as part of the ROI although they do, of course, form part of the overall justification for implementation.

It is important to interpret what comesout of an ROI analysis. It should not bethought of as a ‘forecast’ predicting aknown future outcome. Such a viewimplies that the hard work is done oncethe business case is estimated. Rather, it is a way of helping an organisation todesign the future that they wish to create.

The ROI is a way of capturing assumptionsabout initiatives, their likely costs andbenefits in a transparent manner whichallows inspection and investigation of the implications of variations to theassumptions. Ultimately the real value ofthe model is making assumptions explicitand capturing the logical implications ofthose assumptions in terms of value to the organisation. The ROI at the planningstage does not address the key issue of allocating accountability to thoseresponsible for achieving the estimatedbenefits. The following sections describethe analysis and main results from the analysis.

THE ROI BUSINESS CASE FOR E-WORKING – HOUSING SERVICES

Cost categories and indicative values:

The table below describes the major costcomponents in the ROI model. These costs

are broken down into those which areone-off costs associated with theimplementation of modernised workingand recurring annual costs. Descriptions ofeach category are provided below.

Benefit categories and indicativefinancial values

To create the ROI business case, the costsoutlined above were compared to thebenefits achieved from modernisedworking. These benefits were derived bycomparing the working practices undermodernisation to those pre-modernisationand examining the costs associated witheach. The resulting savings, over a fouryear period, are described in the following table.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Cost summary Estimated Costs One-off costs £ One-off electronic data management costs (backscanning of images, EDM software)

265,000

One-off voice and data network costs (enhanced corporate, mobile and teleworker infrastructure)

83,500

One-off implementation support costs (project management and employee training)

90,000

One-off real estate costs (potential reverse premiums and new office kit)

371,000

One-off delayering costs 80,000 Annual costs £ Annual electronic data management costs (EDM software maintenance and upgrade)

15,000

Annual voice and data network costs (enhanced corporate and teleworker infrastructure)

128,500

Annual mobile technologies costs (mobile worker technologies)

25,000

Annual real estate costs (provision of alternative public contact premises)

100,000

Annual restructuring costs (potential redundancy and regrading costs)

128,250

Benefit category

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Real estate – Benefit from released space

116,096 559,994 682,920 682,920

Technology Infrastructure - benefits from fewer location

7,560 18,060 21,000 21,000

Employee Retention – annual recruitment cost saving

11,100 22,200 33,300 44,400

Restructuring – Average annual net cost saving

142,500 213,750 285,000 285,000

Commute time – Value of commute time

49,138 73,707 98,276 98,276

Sub total – modernised working benefits

£326,394 £887,711 £1,120,496 £1,131,596

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Indicative additional service providedby reallocating productivity time savings

In addition to ‘red’ cost savings’opportunities to save employee time wereexamined. These productivity (or ‘orange’)savings were converted to a cashequivalent by applying the average salaryrates for the relevant job functions. Thesebenefits differed from the red benefits inthat they represent an opportunity forHillingdon to do something with thissaved time. At one extreme this couldmean fewer people providing the sameservice at the other it could mean thesame people providing more service to citizens.

(* Based on 1728 working hours perannum, ie 36 hours X 48 weeks)

Modernised working - scenariosmodelled and outcomes

A number of scenarios were modelledwhich are summarised in the followingtable and described below. Each scenariorepresented a separate run of the modelwhere some of the input assumptionswere changed:

• In case 1 orange productivity benefits were not included; in cases 2 and 3 some productivity benefits were included

• In case 2 orange productivity benefits were evaluated in financial terms

• In case 3 orange productivity benefits were evaluated in terms of additional hours of service available

The table below summarises the outcomeof each case 1, 2 and 3:

The potential benefits of each case wereprofound – although to differing degrees.Taking Housing’s annual gross officeaccommodation costs of £1,300,000:

• Case 1 represented an ongoing saving of 33% on office accommodation costs from year 4 onwards

• Case 2 represented an ongoing saving of 56% on office accommodation costs from year 4 onwards

• Case 3 represented an ongoing saving of 37% on office accommodation costs from year 4 onwards and 3% productivity gain from mobile and teleworking staff

Case 1: Property benefits only

The most significant red benefit identified

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Benefit category

Year 1 Hours

Year 2 Hours

Year 3 Hours

Year 4 Hours

Restructuring – additional person hours

6,380 9,570 12,760 12,760

Reduced commute time – additional person hours

2,200 3,300 4,400 4,400

Sub Total – modernised working benefits

8,580 12,870 17,160 17,160

Additional hours converted to full time equivalents(*)

4.9 7.4 9.9 9.9

Modernised working scenario

Payback month

Net annual benefit In

year 4

Additional hours In year 4

Case 1: Property benefits only

39 £435,000 0

Case 2: Full case with orange productivity benefits converted to monetary value

29 £735,000 0

Case 3: Full case with orange productivity benefits converted to hours

37 £480,000 17,160

Case 1: Property benefits only

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 123,656 578,054 703,920 703,920 Total costs 978,000 268,500 268,500 268,500 Cumulative financial benefits 123,656 701,711 1,405,631 2,109,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -854,344 ROI on financial benefits 13% 56% 93% 118%Financial break even month 39

309,554 435,420 435,420

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Indicative additional service providedby reallocating productivity time savings

In addition to ‘red’ cost savings’opportunities to save employee time wereexamined. These productivity (or ‘orange’)savings were converted to a cashequivalent by applying the average salaryrates for the relevant job functions. Thesebenefits differed from the red benefits inthat they represent an opportunity forHillingdon to do something with thissaved time. At one extreme this couldmean fewer people providing the sameservice at the other it could mean thesame people providing more service to citizens.

(* Based on 1728 working hours perannum, ie 36 hours X 48 weeks)

Modernised working - scenariosmodelled and outcomes

A number of scenarios were modelledwhich are summarised in the followingtable and described below. Each scenariorepresented a separate run of the modelwhere some of the input assumptionswere changed:

• In case 1 orange productivity benefits were not included; in cases 2 and 3 some productivity benefits were included

• In case 2 orange productivity benefits were evaluated in financial terms

• In case 3 orange productivity benefits were evaluated in terms of additional hours of service available

The table below summarises the outcomeof each case 1, 2 and 3:

The potential benefits of each case wereprofound – although to differing degrees.Taking Housing’s annual gross officeaccommodation costs of £1,300,000:

• Case 1 represented an ongoing saving of 33% on office accommodation costs from year 4 onwards

• Case 2 represented an ongoing saving of 56% on office accommodation costs from year 4 onwards

• Case 3 represented an ongoing saving of 37% on office accommodation costs from year 4 onwards and 3% productivity gain from mobile and teleworking staff

Case 1: Property benefits only

The most significant red benefit identified

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Benefit category

Year 1 Hours

Year 2 Hours

Year 3 Hours

Year 4 Hours

Restructuring – additional person hours

6,380 9,570 12,760 12,760

Reduced commute time – additional person hours

2,200 3,300 4,400 4,400

Sub Total – modernised working benefits

8,580 12,870 17,160 17,160

Additional hours converted to full time equivalents(*)

4.9 7.4 9.9 9.9

Modernised working scenario

Payback month

Net annual benefit In

year 4

Additional hours In year 4

Case 1: Property benefits only

39 £435,000 0

Case 2: Full case with orange productivity benefits converted to monetary value

29 £735,000 0

Case 3: Full case with orange productivity benefits converted to hours

37 £480,000 17,160

Case 1: Property benefits only

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 123,656 578,054 703,920 703,920 Total costs 978,000 268,500 268,500 268,500 Cumulative financial benefits 123,656 701,711 1,405,631 2,109,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -854,344 ROI on financial benefits 13% 56% 93% 118%Financial break even month 39

309,554 435,420 435,420

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at step 1 was the potential to reduceoffice accommodation costs. This wasexamined in detail during the diagnosticphase (step 2). Case 1 examines the ROIassociated with this option. Paybackoccurred just after three years and annualnet benefits from year four onwards were£435,000. The table below describes theoutcome from this scenario in more detail.

This shows that the upfront cost of e-working was estimated to be £978,000with a net cost of £854,000 in year 1. Theannual net benefit is positive in eachsubsequent year rising to £435,00 in year 3 and beyond. The ROI percentagevalue is cumulative benefits divided bycumulative costs, ie 100% ROI indicatesbreak even.

Case 2: full case with monetaryproductivity benefits

In addition to consolidation of theproperty portfolio based on modernisedmobile working practices the business casewas extended to include:

• Improved employee retention achieved as a result of an enhanced work-life- balance for employees. It was assumed that this benefit would manifest itself in a reduced staff turnover rate with a resulting impact on recruitment costs. The ultimate improvement to the retention rate was assumed to be phased in over four years.

• Restructuring and redesign of supervisory processes were assumed to be phased from year 2 onwards.

• Reduced commute time for managers achieved through flexible working arrangements. It was assumed that these time savings are shared 50:50

between the employee and Hillingdon (for all grades below manager it was assumed that the employee takes all of this benefit).

In case 2 all productivity time savingbenefits were converted to cash at theappropriate average salary rate. Theoutcomes were:

In this case break-even moved from month39 to month 29 and recurring net benefitsincreased to £734,000 in year 4. Thisillustrated (in financial terms) thesignificant additional benefits from theextra initiatives considered in this case.However, it is unlikely that Hillingdonwould attempt to convert productivitytime saving benefits into cash. More likelywould be case 3, where red benefits areevaluated in terms of cash savings andorange benefits are evaluated in terms ofadditional hours of service available forvalue added services.

Case 3: full case with serviceproductivity benefits

The results from this case were:

Financial break-even was achieved inmonth 37 and the annual recurring netbenefit by year 4 was £480,000. Inaddition this case ‘freed’ 56,000 workinghours in productivity gains over the fouryears (at a recurring annual rate of 17,000hours) that could be made available toimprove service quality to Housing’stenants and other service users’ services.Of course the managerial challenge ofensuring that this ‘freed’ time is usedeffectively remains, and this is an issuethat needs to be addressed to ensure thatbenefits are actually realised.

THE ROI BUSINESS CASE FOR CRMAND E-SERVICE DELIVERY –HOUSING SERVICES

INTRODUCTION

Building on the results from the e-servicedelivery and citizen contact diagnostics,the purpose of the ROI was to estimatethe impact on Hillingdon of implementingCRM and moving routine enquiriestowards web-based citizen self-service.

However, there was less clear cost dataavailable in this area and more uncertaintyabout the impact of the benefits identifiedby the diagnostic. Therefore the initialwork in developing a business casefocused on establishing an hypothesis asto what impact was hoped for, how it may

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Case 2: Wider Business Case Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 233,032 983,530 1,120,496 1,131,596 Total costs 1,058,000 396,750 396,750 396,750 Cumulative financial benefits 233,032 1,216,563 2,337,058 3,468,654 Cumulative costs 1,058,000 1,454,750 1,851,500 2,248,250 Annual net benefit -824,968 ROI on financial benefits 22% 84% 126% 154%Financial break even month 29

586,780 723,746 734,846

Case 3 Full case with service productivity benefits

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 134,756 600,254 737,220 748,320 Total costs 978,000 268,500 268,500 268,500 Total hrs for additional services 4,400 17,160 17,160 17,160 Cumulative financial benefits 134,756 735,011 1,472,231 2,220,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -843,244 ROI on financial benefits 14% 59% 97% 125%Financial break even month 37 Cumulative additional service hrs

4,400 21,560 38,720 55,880

331,754 468,720 479,820

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at step 1 was the potential to reduceoffice accommodation costs. This wasexamined in detail during the diagnosticphase (step 2). Case 1 examines the ROIassociated with this option. Paybackoccurred just after three years and annualnet benefits from year four onwards were£435,000. The table below describes theoutcome from this scenario in more detail.

This shows that the upfront cost of e-working was estimated to be £978,000with a net cost of £854,000 in year 1. Theannual net benefit is positive in eachsubsequent year rising to £435,00 in year 3 and beyond. The ROI percentagevalue is cumulative benefits divided bycumulative costs, ie 100% ROI indicatesbreak even.

Case 2: full case with monetaryproductivity benefits

In addition to consolidation of theproperty portfolio based on modernisedmobile working practices the business casewas extended to include:

• Improved employee retention achieved as a result of an enhanced work-life- balance for employees. It was assumed that this benefit would manifest itself in a reduced staff turnover rate with a resulting impact on recruitment costs. The ultimate improvement to the retention rate was assumed to be phased in over four years.

• Restructuring and redesign of supervisory processes were assumed to be phased from year 2 onwards.

• Reduced commute time for managers achieved through flexible working arrangements. It was assumed that these time savings are shared 50:50

between the employee and Hillingdon (for all grades below manager it was assumed that the employee takes all of this benefit).

In case 2 all productivity time savingbenefits were converted to cash at theappropriate average salary rate. Theoutcomes were:

In this case break-even moved from month39 to month 29 and recurring net benefitsincreased to £734,000 in year 4. Thisillustrated (in financial terms) thesignificant additional benefits from theextra initiatives considered in this case.However, it is unlikely that Hillingdonwould attempt to convert productivitytime saving benefits into cash. More likelywould be case 3, where red benefits areevaluated in terms of cash savings andorange benefits are evaluated in terms ofadditional hours of service available forvalue added services.

Case 3: full case with serviceproductivity benefits

The results from this case were:

Financial break-even was achieved inmonth 37 and the annual recurring netbenefit by year 4 was £480,000. Inaddition this case ‘freed’ 56,000 workinghours in productivity gains over the fouryears (at a recurring annual rate of 17,000hours) that could be made available toimprove service quality to Housing’stenants and other service users’ services.Of course the managerial challenge ofensuring that this ‘freed’ time is usedeffectively remains, and this is an issuethat needs to be addressed to ensure thatbenefits are actually realised.

THE ROI BUSINESS CASE FOR CRMAND E-SERVICE DELIVERY –HOUSING SERVICES

INTRODUCTION

Building on the results from the e-servicedelivery and citizen contact diagnostics,the purpose of the ROI was to estimatethe impact on Hillingdon of implementingCRM and moving routine enquiriestowards web-based citizen self-service.

However, there was less clear cost dataavailable in this area and more uncertaintyabout the impact of the benefits identifiedby the diagnostic. Therefore the initialwork in developing a business casefocused on establishing an hypothesis asto what impact was hoped for, how it may

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Case 2: Wider Business Case Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 233,032 983,530 1,120,496 1,131,596 Total costs 1,058,000 396,750 396,750 396,750 Cumulative financial benefits 233,032 1,216,563 2,337,058 3,468,654 Cumulative costs 1,058,000 1,454,750 1,851,500 2,248,250 Annual net benefit -824,968 ROI on financial benefits 22% 84% 126% 154%Financial break even month 29

586,780 723,746 734,846

Case 3 Full case with service productivity benefits

Year 1 £

Year 2 £

Year 3 £

Year 4 £

Total financial benefits 134,756 600,254 737,220 748,320 Total costs 978,000 268,500 268,500 268,500 Total hrs for additional services 4,400 17,160 17,160 17,160 Cumulative financial benefits 134,756 735,011 1,472,231 2,220,551 Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -843,244 ROI on financial benefits 14% 59% 97% 125%Financial break even month 37 Cumulative additional service hrs

4,400 21,560 38,720 55,880

331,754 468,720 479,820

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be achieved and what some of the keyrisks appeared to be. To do this a causeand effect map was developed to makeexplicit the key relationships impacting thelikely outcome.

Hypothesis for impact of CRM and e-services deployments on servicecapacity, aggregate demand andservice quality

Initially, consideration was given to theway unresolved queries are dealt with. Asthey build up, the response time to thecustomer gets longer (ie time to deal withthe query increases) thus more staff areallocated to dealing with the backlog ofunresolved queries. This is captured in thefirst balancing loop shown right.

Next, consideration was given to the

impact of allocating more staff to dealwith the backlog of unresolved queries.This results in fewer staff available to dealwith new queries. Consequently, as staffare reducing the backlog of existingqueries, new queries are being added tothe same backlog. This compensating

behaviour shown in the reinforcing loopmeans that, overall, the backlog may be

103102

increasing or decreasing depending on thearrival rate of new queries and the rate atwhich they are being resolved. Whattends to happen over time is that demandis fairly constant and, with a fixed allocation of resource between the backlog and new queries, a more or less constant level of unresolved queries results.

What is the impact of reducing the

average time to deal with a query?Irrespective of why this time may bedecreased, what is the likely impact on thebacklog of unresolved queries? An initialresponse is that as queries are dealt withfaster, other things being equal, thiswould lead to a fall in the backlog.However, this means that the equilibriumdescribed in loops B1 and R1 is disturbed,therefore consideration needs to be givento any knock on effects this may have.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Conventions used in the diagrams

In the diagrams that follow a ‘+’ indicates that the variable at the head of the arrowmoves in the same direction as the variable at the foot of the arrow while a ‘-’indicates that the variable at the head of the arrow moves in the opposite directionto the variable at the foot of the arrow (all other things being equal). The direction ofthe arrow shows the hypothesised nature of causality. For example an increase inunresolved queries (foot of the arrow), other things being equal, will lead to anincrease in the average response time (head of the arrow).

Where feedback loops are formed in the diagram ‘B’ indicates a balancing loopwhere increasing (or reducing) any variable in the loop then working round the chainof cause and effect leads to a compensating decrease (or increase) in the samevariable next time round. Conversely ‘R’ indicates a reinforcing loop where anyincrease or decrease in a variable is amplified by working through the chain of causeand effect.

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Average touchtime per query

+

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be achieved and what some of the keyrisks appeared to be. To do this a causeand effect map was developed to makeexplicit the key relationships impacting thelikely outcome.

Hypothesis for impact of CRM and e-services deployments on servicecapacity, aggregate demand andservice quality

Initially, consideration was given to theway unresolved queries are dealt with. Asthey build up, the response time to thecustomer gets longer (ie time to deal withthe query increases) thus more staff areallocated to dealing with the backlog ofunresolved queries. This is captured in thefirst balancing loop shown right.

Next, consideration was given to the

impact of allocating more staff to dealwith the backlog of unresolved queries.This results in fewer staff available to dealwith new queries. Consequently, as staffare reducing the backlog of existingqueries, new queries are being added tothe same backlog. This compensating

behaviour shown in the reinforcing loopmeans that, overall, the backlog may be

103102

increasing or decreasing depending on thearrival rate of new queries and the rate atwhich they are being resolved. Whattends to happen over time is that demandis fairly constant and, with a fixed allocation of resource between the backlog and new queries, a more or less constant level of unresolved queries results.

What is the impact of reducing the

average time to deal with a query?Irrespective of why this time may bedecreased, what is the likely impact on thebacklog of unresolved queries? An initialresponse is that as queries are dealt withfaster, other things being equal, thiswould lead to a fall in the backlog.However, this means that the equilibriumdescribed in loops B1 and R1 is disturbed,therefore consideration needs to be givento any knock on effects this may have.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Conventions used in the diagrams

In the diagrams that follow a ‘+’ indicates that the variable at the head of the arrowmoves in the same direction as the variable at the foot of the arrow while a ‘-’indicates that the variable at the head of the arrow moves in the opposite directionto the variable at the foot of the arrow (all other things being equal). The direction ofthe arrow shows the hypothesised nature of causality. For example an increase inunresolved queries (foot of the arrow), other things being equal, will lead to anincrease in the average response time (head of the arrow).

Where feedback loops are formed in the diagram ‘B’ indicates a balancing loopwhere increasing (or reducing) any variable in the loop then working round the chainof cause and effect leads to a compensating decrease (or increase) in the samevariable next time round. Conversely ‘R’ indicates a reinforcing loop where anyincrease or decrease in a variable is amplified by working through the chain of causeand effect.

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Average touchtime per query

+

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105104

The model developed so far shows theimpact would be entirely positive,however demand had not been introducedto the model at this stage. Loop B2illustrates a counter-effect that couldpotentially increase the backlog once

again. As customers are served faster, theirsatisfaction levels increase and, over time,they come to expect this faster service asthe norm. Consequently, they are morelikely to come back with another query inthe expectation that this too will be dealt

with promptly. Thus the overall demandincreases as more new queries emergewhich once again adds to the backlog.

A further complication was added whenconsidering the impact on the workforceof high levels of unresolved queries.Customers become agitated and staff areput under increasing levels of stress. Ifmaintained over a period of time this islikely to lead to a deterioration in theservice provided to customers and areduction in the level of customersatisfaction.

This analysis suggests that reducing touchtime in a stable environment produces atleast three effects:

1. As the average query handling time isreduced unresolved queries are reducedand customer satisfaction improves.

2. This can lead to an increase in demand which increases the backlog of queries and reduces customer satisfaction.

2. In the meantime an increasing backlog can lead to a deterioration of

service which reduces customer satisfaction, with potential implications for discretionary demand.

So, it is important that improvements incustomer satisfaction achieved throughreduced touch time are not lost through acombination of excess growth inaggregate demand and deterioratingquality of service.

Finally consideration was given to themechanism by which average touch timewould be reduced throughimplementation of CRM processes andintroduction of self-service channels onthe web. In doing this it was recognisedthat these initiatives eventually have thedesired effect on touch time. However, inthe short term these new ways of workingmean that the workforce have to learnnew skills, which can actually increasetouch time during this transition period.This means that there may actually be aninitial deterioration in service to customerswhile the new processes are ‘bedded in.’

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

Average touchtime per query

+

queries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

Average touchtime per query

+

Employee stress

Quality of service tocustomer

+

+

B3

service level

Unresolved

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries

– R1

staff on new queries

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105104

The model developed so far shows theimpact would be entirely positive,however demand had not been introducedto the model at this stage. Loop B2illustrates a counter-effect that couldpotentially increase the backlog once

again. As customers are served faster, theirsatisfaction levels increase and, over time,they come to expect this faster service asthe norm. Consequently, they are morelikely to come back with another query inthe expectation that this too will be dealt

with promptly. Thus the overall demandincreases as more new queries emergewhich once again adds to the backlog.

A further complication was added whenconsidering the impact on the workforceof high levels of unresolved queries.Customers become agitated and staff areput under increasing levels of stress. Ifmaintained over a period of time this islikely to lead to a deterioration in theservice provided to customers and areduction in the level of customersatisfaction.

This analysis suggests that reducing touchtime in a stable environment produces atleast three effects:

1. As the average query handling time isreduced unresolved queries are reducedand customer satisfaction improves.

2. This can lead to an increase in demand which increases the backlog of queries and reduces customer satisfaction.

2. In the meantime an increasing backlog can lead to a deterioration of

service which reduces customer satisfaction, with potential implications for discretionary demand.

So, it is important that improvements incustomer satisfaction achieved throughreduced touch time are not lost through acombination of excess growth inaggregate demand and deterioratingquality of service.

Finally consideration was given to themechanism by which average touch timewould be reduced throughimplementation of CRM processes andintroduction of self-service channels onthe web. In doing this it was recognisedthat these initiatives eventually have thedesired effect on touch time. However, inthe short term these new ways of workingmean that the workforce have to learnnew skills, which can actually increasetouch time during this transition period.This means that there may actually be aninitial deterioration in service to customerswhile the new processes are ‘bedded in.’

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

Average touchtime per query

+

queries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

Average touchtime per query

+

Employee stress

Quality of service tocustomer

+

+

B3

service level

Unresolved

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries

– R1

staff on new queries

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107106

Hypothesis for impact of CRM and e-services deployments on servicecapacity, aggregate demand andservice quality

The desired impact of reduced touch time,achieved via the introduction of self-service through the web and CRM, will beto reduce average response times fordealing with queries and improvecustomer satisfaction. However, theimpact of increasing demandanddeteriorating service levels could

reduce customer satisfaction. Furthermorecustomer satisfaction could, potentially,fall to levels below the initial levelsachieved prior to the introduction of e-services (see line ‘Risk 2’ below). Thesehopes and fears are captured in thefollowing diagram.

Potential impact of CRM and e-serviceson citizen satisfaction

In conclusion this means it is important tounderstand the capacity of the workforce,to manage customer expectations and thequality of service provided.

Investigating The Extra CapacityGenerated By CRM And E-Services:

To manage these risks Hillingdon wantedto estimate the additional service capacityit was capable of generating throughmodernisation. An ROI model was theideal vehicle to do this as it provided themeans of translating the CRM and

e-services initiatives into (orange)productivity time savings. However, theimplementation was not definedsufficiently at the time of this analysis toobtain accurate costs of implementation,consequently the analysis focused on theproductivity benefits ie this was an ‘R’analysis rather than an ‘ROI’ analysis. Thisprovides the basis for planningenhancements to service, activelymanaging expectations and consideringvalue by comparing costs, when known,to anticipated service improvements.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

CRM processdeployment Self-service channel

deployment

Average touchtime per query

– –

Employee familiaritywith working processes

+

+

Employee stress

Quality of service tocustomer

+

+

B3

service level

+

New CRM ande-services e-working

initiatives+

+

Time

Customer

Satisfaction Desire

Risk 2Learning

Risk 1

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107106

Hypothesis for impact of CRM and e-services deployments on servicecapacity, aggregate demand andservice quality

The desired impact of reduced touch time,achieved via the introduction of self-service through the web and CRM, will beto reduce average response times fordealing with queries and improvecustomer satisfaction. However, theimpact of increasing demandanddeteriorating service levels could

reduce customer satisfaction. Furthermorecustomer satisfaction could, potentially,fall to levels below the initial levelsachieved prior to the introduction of e-services (see line ‘Risk 2’ below). Thesehopes and fears are captured in thefollowing diagram.

Potential impact of CRM and e-serviceson citizen satisfaction

In conclusion this means it is important tounderstand the capacity of the workforce,to manage customer expectations and thequality of service provided.

Investigating The Extra CapacityGenerated By CRM And E-Services:

To manage these risks Hillingdon wantedto estimate the additional service capacityit was capable of generating throughmodernisation. An ROI model was theideal vehicle to do this as it provided themeans of translating the CRM and

e-services initiatives into (orange)productivity time savings. However, theimplementation was not definedsufficiently at the time of this analysis toobtain accurate costs of implementation,consequently the analysis focused on theproductivity benefits ie this was an ‘R’analysis rather than an ‘ROI’ analysis. Thisprovides the basis for planningenhancements to service, activelymanaging expectations and consideringvalue by comparing costs, when known,to anticipated service improvements.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

Unresolvedqueries

Averageresponse time

Staff onbacklog

+ +

B1

staff deal with backlog

Staff responding tonew queries–

– R1

staff on new queries

Customersatisfaction

Customerexpectation

New queries

+

+

+

B2

expectations and demand

CRM processdeployment Self-service channel

deployment

Average touchtime per query

– –

Employee familiaritywith working processes

+

+

Employee stress

Quality of service tocustomer

+

+

B3

service level

+

New CRM ande-services e-working

initiatives+

+

Time

Customer

Satisfaction Desire

Risk 2Learning

Risk 1

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109108

The following table describes theinitiatives and benefits analysed for CRMand e-service delivery.

These four cases were considered in theorder suggested as this represents themost likely sequence of implementation.Cases 1 to 3 are self-explanatory, case 4considers the potential impact of regionalconsolidation across local authoritiesbeyond Hillingdon, for example the WestLondon Alliance.

The scenarios modelled and outcomes

The results from the analysis indicates thatbetween 2.3% and 6.3% of the totalworkforce can be freed up from theintroduction of the initiatives described incases 1 to 3. Case 4 was not estimated as

regional delivery of services has not beensufficiently well defined. This provided anestimate that could be tested in pilots todetermine the actual level of additionalcapacity generated through theintroduction of these initiatives. Oncethese estimates are validated via pilotsthey may be compared to the cost ofimplementation to assess value for money.They can then be used to set policies tomanage citizen expectations (and futuredemand) as well as desired service levels.All three components: capacity, demandmanagement and quality of service shouldthen form part of the performance review system.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

SUMMARY – COMPLETING THEBUSINESS CASE

1. The business case for modernised working practices shows a payback of just over three years on a cashflow basis(ignoring any benefits of charges to capital). The total cost, both capital and operating expenditure, over four years isapproximately £1.8m. By the end of thisperiod annual net benefits of somethinglike £435 to £480k were estimated with up to an additional 17,000 hours per annum (or approx 10 FTE’s) of value- added service time made available.

2. CRM and e-service delivery were less well defined and pilots are now under way that should allow a better estimation of costs. However, a compound growth in productivity of approximately 6.3% is estimated from full implementation of these solutions which would result in an additional 51,000 hours of time (or 33 FTE’s) for value-added customer service.

This case study has demonstrated the valueof a rigorous structured approach toidentifying the costs, benefits and risksassociated with implementing modernisedworking practices and e-government. Theprocess of articulating and quantifying thebusiness case was an invaluable step inunderstanding and communicating theopportunities at stake. This analysis cannow be extended to all other service areasand will form the basis of setting andmanaging targets for real improvements inservices to citizens.

Case Initiative Description Benefits Case 1 CRM • Single point of contact

for citizens Consolidated public

contact centre

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 2 e-services Citizen self-service Online transactions E-speed Disintermediation

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 3 CRM and e-services

Multi-channel customer contact facility

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 4 Regional consolidation

Consolidation across local authorities

Economies of scale Adoption of best practices

• • • • •

• •

• • •

• • •

• • •

Case Impact by year 4 Equates to Case 1: CRM only 12 people freed up to

deliver value added service (approx)

2.3% of the total workforce

Case 2: e-service only 21 people freed up to deliver value added service (approx)

4.0% of the total workforce

Case 3: CRM and e-service

33 people freed up to deliver value added service (approx)

6.3% of the total workforce

Case 4: Regional Not estimated, as solution not scoped. Clearly potential for additional benefit e-service

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109108

The following table describes theinitiatives and benefits analysed for CRMand e-service delivery.

These four cases were considered in theorder suggested as this represents themost likely sequence of implementation.Cases 1 to 3 are self-explanatory, case 4considers the potential impact of regionalconsolidation across local authoritiesbeyond Hillingdon, for example the WestLondon Alliance.

The scenarios modelled and outcomes

The results from the analysis indicates thatbetween 2.3% and 6.3% of the totalworkforce can be freed up from theintroduction of the initiatives described incases 1 to 3. Case 4 was not estimated as

regional delivery of services has not beensufficiently well defined. This provided anestimate that could be tested in pilots todetermine the actual level of additionalcapacity generated through theintroduction of these initiatives. Oncethese estimates are validated via pilotsthey may be compared to the cost ofimplementation to assess value for money.They can then be used to set policies tomanage citizen expectations (and futuredemand) as well as desired service levels.All three components: capacity, demandmanagement and quality of service shouldthen form part of the performance review system.

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

SUMMARY – COMPLETING THEBUSINESS CASE

1. The business case for modernised working practices shows a payback of just over three years on a cashflow basis(ignoring any benefits of charges to capital). The total cost, both capital and operating expenditure, over four years isapproximately £1.8m. By the end of thisperiod annual net benefits of somethinglike £435 to £480k were estimated with up to an additional 17,000 hours per annum (or approx 10 FTE’s) of value- added service time made available.

2. CRM and e-service delivery were less well defined and pilots are now under way that should allow a better estimation of costs. However, a compound growth in productivity of approximately 6.3% is estimated from full implementation of these solutions which would result in an additional 51,000 hours of time (or 33 FTE’s) for value-added customer service.

This case study has demonstrated the valueof a rigorous structured approach toidentifying the costs, benefits and risksassociated with implementing modernisedworking practices and e-government. Theprocess of articulating and quantifying thebusiness case was an invaluable step inunderstanding and communicating theopportunities at stake. This analysis cannow be extended to all other service areasand will form the basis of setting andmanaging targets for real improvements inservices to citizens.

Case Initiative Description Benefits Case 1 CRM • Single point of contact

for citizens Consolidated public

contact centre

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 2 e-services Citizen self-service Online transactions E-speed Disintermediation

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 3 CRM and e-services

Multi-channel customer contact facility

Faster service for citizen Reduced touch time for

Hillingdon Consistency of service

Case 4 Regional consolidation

Consolidation across local authorities

Economies of scale Adoption of best practices

• • • • •

• •

• • •

• • •

• • •

Case Impact by year 4 Equates to Case 1: CRM only 12 people freed up to

deliver value added service (approx)

2.3% of the total workforce

Case 2: e-service only 21 people freed up to deliver value added service (approx)

4.0% of the total workforce

Case 3: CRM and e-service

33 people freed up to deliver value added service (approx)

6.3% of the total workforce

Case 4: Regional Not estimated, as solution not scoped. Clearly potential for additional benefit e-service

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111110

Dave CarterDirector of the Manchester Digital

Development Agency following on from

being Acting Head of the Economic

Initiatives Group within the

Regeneration Division of Manchester

City Council.

Over the past 15 years he

has been involved in

developing projects utilising

information and

communication

technologies in the context of urban

regeneration.

Pacey ChealesCorporate Programme Manager for the

Hillingdon Improvement Programme

(HIP)

Pacey Cheales is a corporate

Programme Manager for

the Hillingdon Improvement

Programme (HIP), where he

is leading the

implementation of flexible working and

e-delivery programme for the council.

He developed the initial Modernisation

Business Case in Housing Services in

2001, and worked with Cisco Systems in

2002 to create the final case study that

was referenced in the UK Government’s

National e-Strategy for Local

Government in late 2002. Since then, in

partnership with Cisco, he has presented

Hillingdon’s Modernisation Business

Case at both national and regional

seminars. He has 17 years’ experience in

strategic business support, project and

programme change management with

London authorities; as well as an MBA

from Warwick Business School and

Prince2 qualification.

Joan Clos Mayor of Barcelona since 1997.

In 1999 he was elected for

a four-year term, and was

then re-elected in the

municipal elections of May

2003. Joan Clos was born at

Parets del Vallès in 1949. He is a doctor,

having taken his degree in medicine

with the first graduating class from the

Universitat Autònoma de Barcelona, and

studied at the Hospital de Sant Pau, one

of Barcelona's modernist architectural

jewels. After a period working as an

anaesthetist, he decided on a radical

change of course in his professional life,

moving into epidemiology, community

medicine and health resource

management. He took part in the

movements of anti-Franco professionals

and health services reform. During the

post-Franco period of political transition

he worked in primary healthcare with

a group of doctors who defended

the political transformation of the

country as a means of reclaiming

professional dignity.

Joan Clos has led the process of

transformation from the industrial city

born in the 19th century towards the

‘city of knowledge’ of the 21st century.

Author biographies Author biographies

Michael R. BloombergThe 108th Mayor of the City of

New York

He was born in 1942 to

middle-class parents in

Medford, Massachusetts,

where his father was the

bookkeeper at a local dairy.

Mayor Bloomberg’s thirst for

information and fascination with

technology was evident at an early age,

and led him to Johns Hopkins University,

where he parked cars and took out

loans to finance his education. After his

college graduation, he gained an MBA

from Harvard and in the summer of

1966 he was hired by Salomon Brothers

to work on Wall Street.

As a young trader, he created a financial

information computer that would collect

and analyse different combinations of

past and present securities data and

deliver it immediately to the user. In

1982, Bloomberg LP sold 20

subscriptions to its service; 20 years

later, Bloomberg LP has over 165,000

subscribers worldwide. As the business

proved its viability, the company

branched out and in 1990 Bloomberg LP

entered the media business, launching a

news service, and then radio, television,

internet, and publishing operations.

He funded relief programs for victims of

domestic violence in New York City,

sponsored the Children’s Health Fund's

Mobile Medical Unit, which serves the

children of homeless families, and

supported construction of new athletic

fields at city high schools throughout

the five boroughs. He also served on the

boards of 20 different civic, cultural,

educational and medical institutions,

including: the High School for

Economics and Finance; Lincoln Center

for the Performing Arts; Metropolitan

Museum of Art; Police & Fire Widows’ &

Children’s Benefit Fund; SLE (Lupus)

Foundation and Prep for Prep.

In 1997, Michael Bloomberg published

his autobiography, Bloomberg by

Bloomberg. All of the royalties from

sales of the book are donated to the

Committee to Protect Journalists.

Monica BerneströmHead of the Department TIME (Telecom,

IT, Media and Entertainment) at the

Economic Development Agency in the

City of Stockholm.

Member of the working

group ‘IT and Democracy’

run by the Swedish

Government. Member of

the Council of Mobile

Services. Chairman of the national

council of ‘e-services and growth’

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111110

Dave CarterDirector of the Manchester Digital

Development Agency following on from

being Acting Head of the Economic

Initiatives Group within the

Regeneration Division of Manchester

City Council.

Over the past 15 years he

has been involved in

developing projects utilising

information and

communication

technologies in the context of urban

regeneration.

Pacey ChealesCorporate Programme Manager for the

Hillingdon Improvement Programme

(HIP)

Pacey Cheales is a corporate

Programme Manager for

the Hillingdon Improvement

Programme (HIP), where he

is leading the

implementation of flexible working and

e-delivery programme for the council.

He developed the initial Modernisation

Business Case in Housing Services in

2001, and worked with Cisco Systems in

2002 to create the final case study that

was referenced in the UK Government’s

National e-Strategy for Local

Government in late 2002. Since then, in

partnership with Cisco, he has presented

Hillingdon’s Modernisation Business

Case at both national and regional

seminars. He has 17 years’ experience in

strategic business support, project and

programme change management with

London authorities; as well as an MBA

from Warwick Business School and

Prince2 qualification.

Joan Clos Mayor of Barcelona since 1997.

In 1999 he was elected for

a four-year term, and was

then re-elected in the

municipal elections of May

2003. Joan Clos was born at

Parets del Vallès in 1949. He is a doctor,

having taken his degree in medicine

with the first graduating class from the

Universitat Autònoma de Barcelona, and

studied at the Hospital de Sant Pau, one

of Barcelona's modernist architectural

jewels. After a period working as an

anaesthetist, he decided on a radical

change of course in his professional life,

moving into epidemiology, community

medicine and health resource

management. He took part in the

movements of anti-Franco professionals

and health services reform. During the

post-Franco period of political transition

he worked in primary healthcare with

a group of doctors who defended

the political transformation of the

country as a means of reclaiming

professional dignity.

Joan Clos has led the process of

transformation from the industrial city

born in the 19th century towards the

‘city of knowledge’ of the 21st century.

Author biographies Author biographies

Michael R. BloombergThe 108th Mayor of the City of

New York

He was born in 1942 to

middle-class parents in

Medford, Massachusetts,

where his father was the

bookkeeper at a local dairy.

Mayor Bloomberg’s thirst for

information and fascination with

technology was evident at an early age,

and led him to Johns Hopkins University,

where he parked cars and took out

loans to finance his education. After his

college graduation, he gained an MBA

from Harvard and in the summer of

1966 he was hired by Salomon Brothers

to work on Wall Street.

As a young trader, he created a financial

information computer that would collect

and analyse different combinations of

past and present securities data and

deliver it immediately to the user. In

1982, Bloomberg LP sold 20

subscriptions to its service; 20 years

later, Bloomberg LP has over 165,000

subscribers worldwide. As the business

proved its viability, the company

branched out and in 1990 Bloomberg LP

entered the media business, launching a

news service, and then radio, television,

internet, and publishing operations.

He funded relief programs for victims of

domestic violence in New York City,

sponsored the Children’s Health Fund's

Mobile Medical Unit, which serves the

children of homeless families, and

supported construction of new athletic

fields at city high schools throughout

the five boroughs. He also served on the

boards of 20 different civic, cultural,

educational and medical institutions,

including: the High School for

Economics and Finance; Lincoln Center

for the Performing Arts; Metropolitan

Museum of Art; Police & Fire Widows’ &

Children’s Benefit Fund; SLE (Lupus)

Foundation and Prep for Prep.

In 1997, Michael Bloomberg published

his autobiography, Bloomberg by

Bloomberg. All of the royalties from

sales of the book are donated to the

Committee to Protect Journalists.

Monica BerneströmHead of the Department TIME (Telecom,

IT, Media and Entertainment) at the

Economic Development Agency in the

City of Stockholm.

Member of the working

group ‘IT and Democracy’

run by the Swedish

Government. Member of

the Council of Mobile

Services. Chairman of the national

council of ‘e-services and growth’

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113112

Dubai Ideas Oasis and in November he

was given the additional role of Vice-

President of Real Estate and Facility

Management of the Free Zone. In

March 2002 he was again promoted to

the role of Chairman of the Board of

Media City.

In April 2002 Saeed Al Muntafiq was

appointed Director General of the Dubai

Development and Investment Authority

where he now heads a team that is

responsible for advancing the economic

development and growth of Dubai.

Slawomir NajnigierDeputy Mayor of Wroclaw

In 1983 Slawomir Najnigier

graduated from the

Department of Fundamental

Technology Issues at the

Wroclaw University of

Technology and in 1988 he graduated

from the Faculty of National Economy at

the Wroclaw University of Economics.

Following this he worked as chairman of

a computer company and since 1990 he

has been a councillor and a member of

the Municipal Government of Wroclaw,

responsible for finances and ownership

transformations. From 1992-1993 he

was Undersecretary of State at the

Ministry of Physical Planning and

Construction and in July 1994 he

became Deputy Mayor of Wroclaw,

responsible for the municipal economy.

During the flooding in Poland in 1997

he headed the Wroclaw District Flood

Committee and then became President

of the State Office for Housing and

Urban Development. In 2002 he was

Adviser to the Executive Board of KGHM

Polish Cooper Ltd.

Steve PalmerHead of Technology and

Communications, Hillingdon

Council

Steve Palmer is Head of

Technology and Communications at

Hillingdon Council in London and he has

a brief for E-Service delivery both within

the Borough and as part of its regional

working. He was elected to be Chairman

of SocITM London Branch in November

2001 having been its Secretary for the

previous 2 years. The broad issues of

citizen access and identification are key

and his Communications brief includes

management of the Council’s Press and

Public Relations functions as well as the

Council’s ICT infrastructure. As a

geographic area Hillingdon is currently

enjoying unprecedented commercial

investment but it also suffers from

significant deprivation. The Borough is

multi-cultural and reflects the residency

of Heathrow within its Boundaries.

Prior to his move into a Corporate level

role he had a 20 year background at

senior level in delivering and supporting

front line service delivery including

refuse collection, street cleaning, vehicle

maintenance and engineering. He has

also managed a diverse range of

Author biographies Author biographies

The future of welfare, cohesion and

opportunities for Barcelona, destined

to be a natural leader in southern

Europe, depends on its excelling in

the new economy.

Anita FermDirector of Education Administration,

Stockholm

Anita Ferm has for many

years been Director for the

Stockholm Education

Administration with

responsibility for upper

secondary schooling, local-government

administrated adult education, Swedish

language tuition for immigrants, and

special schools for people with learning

difficulties. Anita Ferm has also held

positions directed towards adult,

technical and vocational education at

the Swedish Educational Agency and at

the Swedish Ministry of Education.

Per-Olof GustafssonDeputy Managing Director, The City of

Stockholm’s Economic Development

Office and Chairman of IT-forum (an

organisation for cooperation and

development in the IT-sector in the

Stockholm region)

Some examples of Mr

Gustafsson’s earlier

positions are Controller,

Deputy IT Director and

Director for external relations at the City

of Stockholm’s Executive Office directly

subordinate to the CEO.

Saeed Al MuntafiqDirector General of the Dubai

Development and Investment Authority

Saeed Hussain Al Muntafiq

graduated from Schiller

International University, UK,

with a Bachelor of Arts

Degree in International

Relations with Psychology. He also

attended the Program Management

Development at Harvard Business School

in USA.

Saeed Al Muntafiq has worked for

Emirates Petroleum Products Company

(EPPCO) for a period of 11 years. While

at EPPCO, he spent two years at Caltex

Malaysia as the Assistant Director of

Marketing. In December 1999, he joined

the Dubai Technology, E-Commerce and

Media Free Zone as Project Manager to

compile the strategy for Dubai Internet

City and in May 2000 was promoted to

the role of Chief Executive Officer of

Dubai Media City While at DMC, Saeed

Al Muntafiq achieved numerous

successes including attracting 400

companies ranging from broadcast to

publishing, formulating the Freedom of

Expressions Laws and engineering the

infrastructure and legal landscape for

the media industry to operate in Dubai.

In August 2001 Saeed Al Muntafiq was

appointed Chief Executive Officer of

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113112

Dubai Ideas Oasis and in November he

was given the additional role of Vice-

President of Real Estate and Facility

Management of the Free Zone. In

March 2002 he was again promoted to

the role of Chairman of the Board of

Media City.

In April 2002 Saeed Al Muntafiq was

appointed Director General of the Dubai

Development and Investment Authority

where he now heads a team that is

responsible for advancing the economic

development and growth of Dubai.

Slawomir NajnigierDeputy Mayor of Wroclaw

In 1983 Slawomir Najnigier

graduated from the

Department of Fundamental

Technology Issues at the

Wroclaw University of

Technology and in 1988 he graduated

from the Faculty of National Economy at

the Wroclaw University of Economics.

Following this he worked as chairman of

a computer company and since 1990 he

has been a councillor and a member of

the Municipal Government of Wroclaw,

responsible for finances and ownership

transformations. From 1992-1993 he

was Undersecretary of State at the

Ministry of Physical Planning and

Construction and in July 1994 he

became Deputy Mayor of Wroclaw,

responsible for the municipal economy.

During the flooding in Poland in 1997

he headed the Wroclaw District Flood

Committee and then became President

of the State Office for Housing and

Urban Development. In 2002 he was

Adviser to the Executive Board of KGHM

Polish Cooper Ltd.

Steve PalmerHead of Technology and

Communications, Hillingdon

Council

Steve Palmer is Head of

Technology and Communications at

Hillingdon Council in London and he has

a brief for E-Service delivery both within

the Borough and as part of its regional

working. He was elected to be Chairman

of SocITM London Branch in November

2001 having been its Secretary for the

previous 2 years. The broad issues of

citizen access and identification are key

and his Communications brief includes

management of the Council’s Press and

Public Relations functions as well as the

Council’s ICT infrastructure. As a

geographic area Hillingdon is currently

enjoying unprecedented commercial

investment but it also suffers from

significant deprivation. The Borough is

multi-cultural and reflects the residency

of Heathrow within its Boundaries.

Prior to his move into a Corporate level

role he had a 20 year background at

senior level in delivering and supporting

front line service delivery including

refuse collection, street cleaning, vehicle

maintenance and engineering. He has

also managed a diverse range of

Author biographies Author biographies

The future of welfare, cohesion and

opportunities for Barcelona, destined

to be a natural leader in southern

Europe, depends on its excelling in

the new economy.

Anita FermDirector of Education Administration,

Stockholm

Anita Ferm has for many

years been Director for the

Stockholm Education

Administration with

responsibility for upper

secondary schooling, local-government

administrated adult education, Swedish

language tuition for immigrants, and

special schools for people with learning

difficulties. Anita Ferm has also held

positions directed towards adult,

technical and vocational education at

the Swedish Educational Agency and at

the Swedish Ministry of Education.

Per-Olof GustafssonDeputy Managing Director, The City of

Stockholm’s Economic Development

Office and Chairman of IT-forum (an

organisation for cooperation and

development in the IT-sector in the

Stockholm region)

Some examples of Mr

Gustafsson’s earlier

positions are Controller,

Deputy IT Director and

Director for external relations at the City

of Stockholm’s Executive Office directly

subordinate to the CEO.

Saeed Al MuntafiqDirector General of the Dubai

Development and Investment Authority

Saeed Hussain Al Muntafiq

graduated from Schiller

International University, UK,

with a Bachelor of Arts

Degree in International

Relations with Psychology. He also

attended the Program Management

Development at Harvard Business School

in USA.

Saeed Al Muntafiq has worked for

Emirates Petroleum Products Company

(EPPCO) for a period of 11 years. While

at EPPCO, he spent two years at Caltex

Malaysia as the Assistant Director of

Marketing. In December 1999, he joined

the Dubai Technology, E-Commerce and

Media Free Zone as Project Manager to

compile the strategy for Dubai Internet

City and in May 2000 was promoted to

the role of Chief Executive Officer of

Dubai Media City While at DMC, Saeed

Al Muntafiq achieved numerous

successes including attracting 400

companies ranging from broadcast to

publishing, formulating the Freedom of

Expressions Laws and engineering the

infrastructure and legal landscape for

the media industry to operate in Dubai.

In August 2001 Saeed Al Muntafiq was

appointed Chief Executive Officer of

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115114

Adrian SlatcherICT Development Officer of the

Manchester Digital Development Agency

and poet

Since 1999 Adrian Slatcher

has worked in developing,

researching and

disseminating ICT in

universities, local

government and the voluntary sector.

He has published poetry and short

stories widely. He is now ICT

Development Officer of the Manchester

Digital Development Agency

Senator Gunnar UldallMinister for the Economy and Employment

Gunnar Uldall was born in

Hamburg. After military

service he studied Political

Economics. In 1962 he

became a member of the

CDU and in 1966 a management

consultant. From 1966-1982 he was a

Member of Hamburg City Council and

then Member of the German Parliament.

From 1996-2001 he was spokesman on

economic policy for the CDU/CSU

Parliamentary group. In 1996 he

published ‘Die Steuerwende – Eine neue

Einkommenssteuer, einfach und gerecht’

(‘The Tax Reform, a new income tax,

simple and just’ ) Knauer Verlag, München

Gunnar Uldall has won many awards –

the 1997 Deutscher Mittelstands Prize

and the 1998 Wolfram-Engels Prize for

proposals on the reform of Taxation.

Since 2001 he has been Minister for

Economy and Employment.

Simon Willis Director, Public Sector, Internet Business

Solutions Group Europe, Middle East &

Africa Cisco Systems, Inc

Simon Willis came to Cisco

after 15 years of work in

government and e-business.

He has held various senior

management and policy

positions in the UK Government,

including private secretary to a Minister

of State, head of operational reform at

the Department of Social Security, head

of pensions equalisation and Chief

Executive of a national disability agency.

He ran a high-level criminal justice

operation and helped design the new

financial services regulatory regime for

the UK Treasury. He also headed

numerous UK delegations to the EU, UN

and OECD. After leaving Government he

worked for a large systems integrator,

where he focused on IT integration

and e-business work specialising in

payment systems, security and market

infrastructures. He has run the

European Public Sector Group at Cisco’s

Internet Business Solutions Group for

three years.

Simon Willis has a first-class degree in

Politics, Philosophy & Economics from

Balliol College, Oxford.

Author biographies Author biographies

environmental issues including working

with the Coroner’s Service, Infectious

Disease Control and other similar,

glamorous, functions. He has acted as

an adviser to the Law Society Local

Government Group and has chaired a

number of policy development teams.

He lives in Essex, is married with two

grown-up children, and has two

grandchildren. He has the rare

distinction of being one of the select

few Leyton Orient Football Club

supporters and enjoys travel and

reading in his spare time.

Silvio ScagliaChairman of e.Biscom, Milan

Silvio Scaglia was born in

1958 in Lucerne,

Switzerland, and grew

up in Novara.

After graduating from the Polytechnic

University of Turin in 1983 with a degree

in Electronic Engineering, specialising in

telecommunications and computer

science, he worked for a short period in

Aeritalia Spazio on the data transmission

system between the tethered satellite

and the Space Shuttle.

In the autumn of 1983, he moved into

the consultancy field, becoming part of

Arthur Andersen Management

Consulting, transferring in 1986 to

McKinsey & Co, and subsequently in

1989 to Bain Cuneo e Associati. During

this time, he was mainly involved in the

definition of strategy projects,

marketing and organisation regarding

the automobile sector and distribution

in Italy, Switzerland and Germany.

Two years later, in 1991, he moved from

the consultancy field to direct

management entering the Piaggio

Group, initially as General Director of

Motovespa S.p.A. in Madrid, and then

as Senior Vice-President of non-

European activities, establishing and

managing companies in China, India,

Indonesia and South America.

At the beginning of 1995 he entered

Omnitel as Chief Operating Officer and

became CEO in July 1996. During this

period Omnitel underwent its

transformation from start-up to

successful company, becoming the

second largest mobile operator in

Europe and one of the five highest value

Italian companies.

At the end of July 1999, Silvio Scaglia

founded e.Biscom with Francesco

Micheli and has been CEO ever since. In

April 2003 he was also appointed

Chairman of the Group. e.Biscom’s

success comes from the development of

a new generation of broadband

telecommunications services, based on

the innovative Fiber To The Home and IP

technology, allowing the company to

become Italy’s main alternative carrier.

Today e.Biscom employs over 1,850

people and has total revenues of about

237 million euros.

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115114

Adrian SlatcherICT Development Officer of the

Manchester Digital Development Agency

and poet

Since 1999 Adrian Slatcher

has worked in developing,

researching and

disseminating ICT in

universities, local

government and the voluntary sector.

He has published poetry and short

stories widely. He is now ICT

Development Officer of the Manchester

Digital Development Agency

Senator Gunnar UldallMinister for the Economy and Employment

Gunnar Uldall was born in

Hamburg. After military

service he studied Political

Economics. In 1962 he

became a member of the

CDU and in 1966 a management

consultant. From 1966-1982 he was a

Member of Hamburg City Council and

then Member of the German Parliament.

From 1996-2001 he was spokesman on

economic policy for the CDU/CSU

Parliamentary group. In 1996 he

published ‘Die Steuerwende – Eine neue

Einkommenssteuer, einfach und gerecht’

(‘The Tax Reform, a new income tax,

simple and just’ ) Knauer Verlag, München

Gunnar Uldall has won many awards –

the 1997 Deutscher Mittelstands Prize

and the 1998 Wolfram-Engels Prize for

proposals on the reform of Taxation.

Since 2001 he has been Minister for

Economy and Employment.

Simon Willis Director, Public Sector, Internet Business

Solutions Group Europe, Middle East &

Africa Cisco Systems, Inc

Simon Willis came to Cisco

after 15 years of work in

government and e-business.

He has held various senior

management and policy

positions in the UK Government,

including private secretary to a Minister

of State, head of operational reform at

the Department of Social Security, head

of pensions equalisation and Chief

Executive of a national disability agency.

He ran a high-level criminal justice

operation and helped design the new

financial services regulatory regime for

the UK Treasury. He also headed

numerous UK delegations to the EU, UN

and OECD. After leaving Government he

worked for a large systems integrator,

where he focused on IT integration

and e-business work specialising in

payment systems, security and market

infrastructures. He has run the

European Public Sector Group at Cisco’s

Internet Business Solutions Group for

three years.

Simon Willis has a first-class degree in

Politics, Philosophy & Economics from

Balliol College, Oxford.

Author biographies Author biographies

environmental issues including working

with the Coroner’s Service, Infectious

Disease Control and other similar,

glamorous, functions. He has acted as

an adviser to the Law Society Local

Government Group and has chaired a

number of policy development teams.

He lives in Essex, is married with two

grown-up children, and has two

grandchildren. He has the rare

distinction of being one of the select

few Leyton Orient Football Club

supporters and enjoys travel and

reading in his spare time.

Silvio ScagliaChairman of e.Biscom, Milan

Silvio Scaglia was born in

1958 in Lucerne,

Switzerland, and grew

up in Novara.

After graduating from the Polytechnic

University of Turin in 1983 with a degree

in Electronic Engineering, specialising in

telecommunications and computer

science, he worked for a short period in

Aeritalia Spazio on the data transmission

system between the tethered satellite

and the Space Shuttle.

In the autumn of 1983, he moved into

the consultancy field, becoming part of

Arthur Andersen Management

Consulting, transferring in 1986 to

McKinsey & Co, and subsequently in

1989 to Bain Cuneo e Associati. During

this time, he was mainly involved in the

definition of strategy projects,

marketing and organisation regarding

the automobile sector and distribution

in Italy, Switzerland and Germany.

Two years later, in 1991, he moved from

the consultancy field to direct

management entering the Piaggio

Group, initially as General Director of

Motovespa S.p.A. in Madrid, and then

as Senior Vice-President of non-

European activities, establishing and

managing companies in China, India,

Indonesia and South America.

At the beginning of 1995 he entered

Omnitel as Chief Operating Officer and

became CEO in July 1996. During this

period Omnitel underwent its

transformation from start-up to

successful company, becoming the

second largest mobile operator in

Europe and one of the five highest value

Italian companies.

At the end of July 1999, Silvio Scaglia

founded e.Biscom with Francesco

Micheli and has been CEO ever since. In

April 2003 he was also appointed

Chairman of the Group. e.Biscom’s

success comes from the development of

a new generation of broadband

telecommunications services, based on

the innovative Fiber To The Home and IP

technology, allowing the company to

become Italy’s main alternative carrier.

Today e.Biscom employs over 1,850

people and has total revenues of about

237 million euros.

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116

As a long-term trusted business and technology advisor, Cisco InternetBusiness Solutions Group (IBSG) helps customers maximize their returnfrom technology investment. IBSG business and industry experts bringcustomers the latest industry trends and technology innovations,sharing Cisco and industry best practices. The group engages globallywith Cisco’s largest customers to help refine their business processes toincrease productivity, reduce costs, and create new revenue streams.IBSG offers business and internet expertise across seven verticalindustries, including the public sector. It works with more than half thelargest organisations across each vertical industry and all of the top tenglobal telecoms service providers.

Simon Willis is Director of the Public Sector team, Internet BusinessSolutions Group, Cisco Systems, Europe, Middle East and Africa. Heworks as trusted advisor at the most senior levels of large public-sectororganisations where transformation is imminent or there is thepotential for ground-breaking projects likely to be emulated by others.These projects include tax, education and payment systems along withmass client service and claims-processing organisations. Other projectsrange from integrated justice and security initiatives, large procurementoperations as well as whole-government programmes and those seekingseamless government and transformed service delivery across their fullrange of services. Among his team’s current engagements are public-sector projects in the Netherlands, Belgium, Spain, Italy, Germany,France, UK, Russia, Jordan, Lebanon, Turkey, Morocco, Romania, Poland,Bulgaria and Hungary.

Cisco Internet Business Solutions Group

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116

As a long-term trusted business and technology advisor, Cisco InternetBusiness Solutions Group (IBSG) helps customers maximize their returnfrom technology investment. IBSG business and industry experts bringcustomers the latest industry trends and technology innovations,sharing Cisco and industry best practices. The group engages globallywith Cisco’s largest customers to help refine their business processes toincrease productivity, reduce costs, and create new revenue streams.IBSG offers business and internet expertise across seven verticalindustries, including the public sector. It works with more than half thelargest organisations across each vertical industry and all of the top tenglobal telecoms service providers.

Simon Willis is Director of the Public Sector team, Internet BusinessSolutions Group, Cisco Systems, Europe, Middle East and Africa. Heworks as trusted advisor at the most senior levels of large public-sectororganisations where transformation is imminent or there is thepotential for ground-breaking projects likely to be emulated by others.These projects include tax, education and payment systems along withmass client service and claims-processing organisations. Other projectsrange from integrated justice and security initiatives, large procurementoperations as well as whole-government programmes and those seekingseamless government and transformed service delivery across their fullrange of services. Among his team’s current engagements are public-sector projects in the Netherlands, Belgium, Spain, Italy, Germany,France, UK, Russia, Jordan, Lebanon, Turkey, Morocco, Romania, Poland,Bulgaria and Hungary.

Cisco Internet Business Solutions Group

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Page 120: Connected Cities

Thought LeadersEssays from urban innovatorsEdited by Simon Willis

Price £9.99 and u14ISBN 0-9546445-1-4

The ideas explored in this book chart the emergence of

a political and economic phenomenon – the city as the

new connected republic of the 21st Century. Simon Willis,

Director of the European public sector team in Cisco Internet

Business Solutions Group, has collated essays that show how

different cities, at the cutting edge of the process, are grap-

pling with the various stages of connectivity.

There are striking differences between their experiences.

But they also have certain things in common. They are driven

by their citizens’ demands for political re-engagement and

for better, more responsive, more accessible city services.

They are also driven by competitive forces. As they look out-

side their nation state boundaries to define what they

are going to be in the future and how they are going to

be successful in the newly emerging global environment.

The successful city learns not just how to work differently

within and between its departments and agencies but how

to collaborate with its inhabitants on the project and make

them part of the success of their own city – thus giving own-

ership of the city back to its citizens.

Monica Berneström, Stockholm

Michael R. Bloomberg, New York

Dave Carter, Manchester

Pacey Cheales, Hillingdon

Joan Clos, Barcelona

Per-Olof Gustafsson, Stockholm

Anita Ferm, Stockholm

Saeed Al Muntafiq, Dubai

Slawomir Najnigier, Wroclaw

Steve Palmer, Hillingdon

Adrian Slatcher, Manchester

Silvio Scaglia, Milan

Gunnar Uldall, Hamburg

Simon Willis, Cisco