how to become a smart city

How to become a Smart City 15/12/2015 4:39 PM 1

© Copyright Paul Budde Communication Pty Ltd, 2015

Paul Budde Communication Pty Ltd

How to become a Smart City

Table of Contents 1. Synopsis............................................................................................................................................ 1 2. Introduction ...................................................................................................................................... 2

2.1 Mayors taking the lead in building smart cities ...................................................................... 2 2.2 People are ready for smart environments ................................................................................ 3

3. Holistic thinking essential in smart city vision ................................................................................. 3 3.1 Local government ................................................................................................................... 3 3.2 Holistic thinking...................................................................................................................... 4

4. The role of local councils ................................................................................................................. 5 4.1 Infrastructure comes naturally to local councils...................................................................... 5 4.2 Why should local government be involved? ........................................................................... 5 4.3 Cities have all the tools to take charge .................................................................................... 6 4.4 Open data ................................................................................................................................ 6

5. How to get started ............................................................................................................................. 6 5.1 Leadership and Smart City Vision .......................................................................................... 6 5.2 Smart Council ......................................................................................................................... 7 5.3 PPPPs - cities collaborating with citizens and private enterprise ............................................ 8

5.3.1 A collaborative local community model ............................................................................. 8 5.3.2 Framework for local government policies .......................................................................... 9 5.3.3 Stakeholder Groups .......................................................................................................... 10 5.3.4 Information and education ................................................................................................ 10 5.3.5 City-based intelligent platform ......................................................................................... 10

6. The Sharing Economy .................................................................................................................... 11 6.1 Shared community services .................................................................................................. 11 6.2 Strategic elements of the sharing economy ........................................................................... 11 6.3 Sustainable communities....................................................................................................... 12

7. Paul Budde Consultancy ................................................................................................................. 12 8. Related reports ................................................................................................................................ 13 Exhibit 1- Trans-sector vs Cross-sector .................................................................................................... 3 Exhibit 2 – Trans-sector benefits .............................................................................................................. 4 Exhibit 3 – Key steps in developing a smart council ................................................................................ 9

1. SYNOPSIS Councils will have to take a leadership role in developing smart cities in order to keep pace with the technological developments that their citizens are embracing and the expectations they have in relation to the economic, social and lifestyle aspects of their city. Increasingly less leadership can be expected from other levels of government, yet at the same time it is the councils that are suffering from the burden of issues such as economic transformation, the need for job growth, sustainability and liveability, city infrastructure and the lifestyle of their citizens. Internationally we are seeing an increase in the economic and political power of cities. New technological developments in infrastructure, digital services and consumer devices are empowering people, cities, regions and communities. A key element of the digital economy is that it is removing cost associated with traditional business models. The sharing economy model makes citizens active participants in many of the smart city initiatives. This allows cities to become more deeply involved in developing visions and strategies that will see them taking advantage of the social and economic benefits that these developments can bring. In many cases people and businesses are ahead of governments in adopting these new developments to their advantage and they are demanding that their local councils also use these new developments to improve the lives of their citizens and the communities they live in.



It is therefore vitally important that cities show leadership, take charge and generate a smart city vision – facilitating the development of a smart city by creating a smart council (open government, open data), stimulating collaboration, and informing and promoting the benefits of a smart city to its citizens. The implementation of the various projects should then be left to private industry, which should, together with the citizens, start filling in what it means for them to be a smart city. While conceptually the smart city vision is a universal one, the filling in of the smart grid agenda and the execution should be left as much as possible to private industry. A proactive local government is a vital element in creating a smart city vision and in facilitating those developments that will deliver community benefits in economic progress, energy and water management, telecommunications, sustainability, transport, education, healthcare, community services, job creation and much more. Post-GFC, with a new economic reality of less federal or state money available for local projects, councils will have to become more actively involved in providing a vision of the future for their city, especially if they aspire to becoming involved in smart cities based on smart infrastructure and smart services. Local councils can be the catalyst in creating a well-connected city, using smart energy, smart telecoms, industrial M2M, consumer IoT, cloud computing, datacentres and data analytics. The best smart city will be the one that has the best apps. Over the last 15 years BuddeComm has been assisting over 50 local councils in developing smart city strategies.

2. INTRODUCTION

2.1 MAYORS TAKING THE LEAD IN BUILDING SMART CITIES Councils will have to take a leadership role in developing smart cities in order to keep pace with the technological developments that their citizens are embracing and the expectations they have in relation to the economic, social and lifestyle aspects of their city. Increasingly less leadership can be expected from other levels of government, yet at the same time it is the councils that are suffering from the burden of issues such as economic transformation, the need for job growth, sustainability and liveability, city infrastructure and the lifestyle of their citizens. With leadership from the top – typically the mayor – a smart council should form the basis of any further smart city projects. One of the major stumbling blocks is the many silos that operate within the city and these need to be replaced with a more horizontal approach, and ICTs can play a key role in achieving this Based on a vision of the medium- and long-term future of the city, and with leadership from the top, councils should establish smart city ICT platforms that would allow for the sharing of infrastructure and other resources, as well as for open data and open government initiatives. Once such an environment is created councils should look for PPPPs (Public Private People Partnerships) that can use the platform and develop the smart city projects, to a large extent without any significant out-of-pocket costs to the cities. Internationally the power of the cities is increasing and here it still seems to be possible to gather much broader support for ‘national’ interest projects in relation to digital infrastructure, sustainability and smart city platforms for interconnected LED street lighting, waste and water management, smart parking and other applications. But what is often still missing is a holistic approach towards the development of smart cities. This needs be led from the top, and to be supported by a ‘smart council’. A major stumbling block towards the development of a smart city is the many silos within a city, which resist the sharing of infrastructure and other relevant assets, and resist open data and open government. Nevertheless there are good examples, both nationally and internationally, of councils that are moving in the right direction.



2.2 PEOPLE ARE READY FOR SMART ENVIRONMENTS Also councils are disillusioned by not receiving the infrastructure such as FttH and smart grids essential to become a smart city. BuddeComm discussed the smart city concept with over 50 councils during the 00s. Towards the end of that decade many local councils slowed down their own smart city process as they got the message that the federal government would deliver them the first-class broadband infrastructure necessary for this. A similar position was taken in the wake of the previous government’s Smart Grid Smart City project, as the feds linked that to a policy that would lead to the national rollout of smart grids. Both nation-building projects fell victim to the lack of continuity by the next government. At the same time – on a local level - we see many people continuing to do what makes sense for them. They install PVs; they oppose CSG and other fossil fuel mining projects. They save energy; they continue to support projects such as FttH; they bypass the healthcare system and use new apps, internet services and wearable technologies. Following form here we see cities working towards net-zero plans in relation to carbon emission and the generation of renewable energy. Most new corporate buildings follow a similar trajectory and many businesses are now looking seriously into alternative energy plans, micro-grids and battery. City-based infrastructure for LED street lighting, waste and water management, smart parking and other applications are under consideration, and by sharing infrastructure and linking it to WiFi networks and the NBN cities can start implementing their smart city concepts. By creating intelligent city-based intelligent ICT platforms that cut across silos great efficiencies can be created and, supported by big data and data analytics across the silos’, new services and applications can then be made available to the citizens. From here the broader community can be engaged and the platform can be used for a range of add-on developments, such as apps for the city. This opens up new opportunities, innovations and the development of new entrepreneurial small businesses, as well as new jobs, especially in the ‘sharing economy’. 3. HOLISTIC THINKING ESSENTIAL IN SMART CITY VISION

3.1 LOCAL GOVERNMENT Local councils need to be the champions of the holistic or trans-sector approach (see below). All of the technologies needed for a smart city are available, but there is no clear pathway or option for harnessing the social and economic benefits for their communities. While technology cannot solve the problems of the world it will be impossible to solve many of those problems without smart use of it – it is essential for the emerging digital economy.

Exhibit 1- Trans-sector vs Cross-sector

It is important to identify the difference between cross-sector and trans-sector. Cross-sector means that two or more sectors are trying to work together. This often leads to situations where people will say:

‘I like to work with you as long as you do it my way.’ The trans-sector approach calls for business and government leadership at the very top to direct the various silos to work together in order to find new solutions. This needs to be reflected in government policies relating to community and economic development, energy, environment, healthcare, education and so on. Open government, open data and the sharing of infrastructure and other facilities is a key element in these policies.

(Source: BuddeComm, 2014)



3.2 HOLISTIC THINKING The need for economic reform and sector transformation is clear when looking at the current problems across various sectors. Energy, water, telecoms, healthcare, government, politics, environment, finance and education all require a fresh approach; continuing to try to fix broken systems doesn’t work. Trans-sector thinking involves looking in a holistic way at the multiplier effect of these strategic investments in other sectors. It involves looking at using smart technologies (ICT) for horizontal opportunities and to assist in breaking down silos. This can only be done through leadership from the top. Key elements include • Telecommunications infrastructure (Wi Fi Networks linked to Fixed High Speed Broadband

Network), eventually with consumer based FttH connection. • Energy (smart grids) and renewable energy infrastructure (including battery storage, micro-grids,

e-cars), LED street lighting; • Waste and water management; • Healthcare (e-health); • Smart transport in public transport, roads and related infrastructure, smart parking; • Economic development (e-commerce, attracting start-ups, tele-working, new and better jobs); • Open government and open data – connected information systems; • Apps (council-as-a-service), widespread community involvement; • Building a sharing community (think Uber, AirBB, etc).

Exhibit 2 – Trans-sector benefits

• Nationally e-health could save $30 billion over 10 years and save 1,300 lives per year; • Video monitoring could reduce hospitalisation of aged persons by 40%; • Smart grids can save 20%-30% of energy costs; • Smart communities suit our lifestyle (we want it; cost is important but not critical) • Current healthcare, energy and education budgets can be used; no new money needed, except

perhaps some seeding capital to kick-start the process • Smart cities, bringing together elements such as community, environment, social and economic

infrastructure, jobs – creating a better life for its citizens • Smart transport can reduce the 1,500 annual road fatalities and 50,000 injuries

Technological developments in combination with the financial crisis have given us the chance to make that break and start looking at new ideas, new policies and new business strategies. The use of smart technologies allows for a significant cost reduction in comparison with many of the current processes. We only have to look at the disruption this has caused in publishing, retail, photography, telecoms, music, books, and entertainment. Furthermore, we have evolved as a society and are looking for different values and different lifestyles; for most people there is now less need for linear growth. Local government, the closest link to the people, should also look at trans-sector policies to multiply the economic and social benefits to its citizens. The end result of those holistic policies is that we are creating smart communities: • fully interactive smart systems for personal services, community care, healthcare, education,

energy; • smart sustainable buildings (net-zero, energy self-sufficient); • smart infrastructure (roads, bridges, pipes, etc); • e-cars and smart transport. With the increased awareness of broadband, cities, regions and communities are starting to understand the social and economic benefits that smart technologies can bring to their communities.



4. THE ROLE OF LOCAL COUNCILS

4.1 INFRASTRUCTURE COMES NATURALLY TO LOCAL COUNCILS Local governments understand that this infrastructure is not so much a matter of profitability. They see that it acts as a facilitator, allowing them to generate much higher social and economic benefits. For them there is a natural separation between the infrastructure and the benefits that can be derived from this utility. The ROI on these investments is not simply money – there are many far more important social and economic benefits attached to this. So far industry (telcos, energy companies) has been using a different business model (vertical integration) and we have seen reluctance on their part to invest in new smart infrastructure. Elsewhere in the world, particularly the USA and the Netherlands, this led to cities becoming impatient and beginning to develop their own infrastructure. Several of the municipal networks in the USA are leading the trans-sector approach, particularly by adding smart grid applications to their communications and entertainment applications. Until now we haven’t seen a similar level of vision from local governments in Australia. Initially, under the policies of the previous government, with a national approach towards deploying a national FttH network and a national smart grid, there was also less need for local governments to become directly involved in the actual infrastructure. However this is no longer the case. Around the world smart cities are building gigabit networks and such cities will be better-positioned to reap the benefits of the digital economy. Local communities are developing their net-zero plans to make their communities more sustainable. And indeed some Australian councils are now also looking, for example, at net-zero developments; but what in many cases is failing here is an overall vision and approach towards a smart city. These are still largely silo- based developments and the trans-sector approach is needed in order to reap the broader social and economic benefits. Globally there are thousands of pilot and demonstration projects. We don’t need any more of them. What we need now are sound strategies based on a holistic vision and a smart city that takes on commercially viable and upscaleable projects. With that in place look for the low-hanging fruits in order to achieve early wins that will validate the vision and get the community enthusiastic and supportive.

4.2 WHY SHOULD LOCAL GOVERNMENT BE INVOLVED? If we go back a century, it was local councils who initiated the first infrastructure projects in electricity and telecoms. Community-based infrastructure comes naturally to local councils. Once the networks were in place, the role of local government naturally diminished as city-based networks became state and national networks. That is all fine as long as nothing changes, but when new infrastructure is needed these state and national entities are often far too slow to react. Local councils intuitively know that new infrastructure is needed in order to build knowledge-based, connected and sustainable communities. Councils are instrumental in establishing a vision based on these new developments for their communities and can play a facilitating role in building such new environments. What councils can do is make sure their local government area is ready for this: • create the vision and set the social and economic agenda for a smart city; • make sure to have a smart council in place to support this (open government, open data); • secure wide community support for such a strategy, using stakeholders from various sectors

(champions); • educate their citizens about the importance of a smart community (newsletters, showcases) and,

most importantly, who they can involve to drive these developments;



• map existing infrastructure from providers, council, hospitals, railways, utilities, etc; • facilitate cooperation between private partners (telcos and ISPs, IT companies, app developers,

smart energy and renewable companies, start-ups, etc); • lobby for grants to cover extra (non-commercial) costs and seeding money; • stimulate local sharing and demand aggregation wherever possible and wherever feasible; • Be the facilitator – the secretariat – for the smart city initiative. A smart city is most certainly an essential utility for local councils, and local governments have no choice but to become actively involved in the process.

4.3 CITIES HAVE ALL THE TOOLS TO TAKE CHARGE Many cities and communities in already have many of the prerequisites that are essential for the deployment of a broadband infrastructure: • a highly-educated population; • high penetration of internet, smartphones, tablets, PCs, smart TVs; • increasing penetration of rooftop PV; • ICT skills that can support the development of a smart city; • Large data set with information on many social and economic aspects of the city • industries that are ready to participate; • organisations that can assist in the investments; • a rapidly changing economy, moving into services (manufacture as a service); • a community willing to speedily adopt new technologies.

4.4 OPEN DATA Key to a smart city is a smart council. Otherwise the whole concept just remains lip service. The proof of this is the ability of council to make its data available so that others can build new services and new apps around it. Data is the lifeblood of a smart city, and the amount of data is increasing daily with the implementation with more and more M2M and IoT services. But having it locked up will simply stop the development of a smart city. Often a question is if there is data that shows that these smart city initiatives indeed deliver financial, social and/or economic benefits. The question can be reversed; make the data available that makes it possible to test this. If you don’t have the data you can’t measure it. There are plenty of obstacles that councils will find hard to tackle. Council leadership is critical here to ensure that departments are indeed opening up their data – the natural tendency of a bureaucracy is to limit any risk and sit tight on top of that data. The important thing is to start with at least some data sets, the least contentious ones. Obviously strict regulations need to be in place regarding privacy and potential misuse. All those who obtain access to the data should sign contracts with the council. An active role from local government will also stimulate other agencies to make data available; the state and federal governments also play a key role. The federal government has taken a very aggressive role in ensuring that government-based data sets are being made available as much as possible. Local government should take their lead from this. Amsterdam made close to 400 data sets available, New York City over 1000.

5. HOW TO GET STARTED

5.1 LEADERSHIP AND SMART CITY VISION As mentioned above councils will have to take a leadership role in developing smart cities in order to keep pace with the technological developments that their citizens are embracing and the expectations



they have in relation to the economic, social and lifestyle aspects of their city. This needs to be led from the top – as wee in bother national and international success stories the leader is typically the mayor. One of the major stumbling blocks is the many silos that operate within the city and these need to be replaced with a more horizontal approach, and ICTs can play a key role in achieving this. In order to reap the social and economic benefits of a smart city a vision needs to be developed for the city, region or community. Key issues include: • a visionary approach based on the importance of a smart city and the benefits it can offer to the

communities and their economies; • a cooperative model between industry players, the government and the consumers – a PPPP

(Public Private, People Partnerships); • identifying the impediments for deploying a market-driven smart city – eliminating defunct

regulations and policy barriers; • defining the regulatory and social policy framework needed for a competitive environment – a

framework that will stimulate innovation; • infrastructure issues – no duplication in unprofitable areas; the need for shared, open infrastructure;

the need to stimulate competition in potentially profitable areas; the need to avoid freeloaders; • companies must adopt global industry standards based on open standards and interoperability –

technologies should be based on user benefits; • investment issues – there is a need for realistic and financially sustainable models (no ‘death by

pilot’ projects); • a sound legal structure, creating a secure comfort zone for users, protecting intellectual property

and recognising the right of people to have access to knowledge and information; • a safe environment (highest standards, no cheap but dangerous shortcuts); • pre-empting issues such as cybercrime, pornography, crimes against children, corporate IT crimes; • inclusion of all citizens especially those most vulnerable. Most smart city projects currently under development do not have that overall vision in place and are not yet supported by a ‘smart council’ and so the projects that are developed are silo-based. Sometimes such projects are even based on proprietary infrastructure technologies, making it impossible to use the infrastructure for other applications. Another issue that needs attention is what I call ‘death by pilots’. Many cities have developed numerous pilots, and even when successful these die, partly due to lack of scalability but mostly because of the lack of a holistic approach and that essential leadership from the top. Rather than everybody running their own pilots and projects, collaboration should be applied. For example, LED street lighting is high on the agenda of many councils and if this is done smartly it should be linked to a WiFi network in order to facilitate other applications. If this works in one city it is important to learn from that city, rather than launching yet another pilot to test the same thing elsewhere.

5.2 SMART COUNCIL It will be impossible for a local government to implement a smart city concept, without this being led by a smart council. This will require a horizontal collaboration between the various departments, initiated by the mayor and the general manager. A smart council will share infrastructure and other relevant resources, it will follow an open data and an open government policy in all of its smart city activities. Council also need to support the stakeholder group (see below) by providing a secretariat and a coordinating and facilitating function. Through community meetings the stakeholders assist council in explaining and promoting the smart city concept, inviting people to participate and creating citizen. There are not many people who don’t have some horror stories to tell about local governments being very slow in relation to building inspection issues, road repairs, cleaning up illegal dumps and lack of



services. The general complaint is that resolving some of these issues is taking far too long, and that even small issues can cause ongoing delays and frustrations, this is typically the result of a silo based organisation. A smart council will be able too much more effectively and efficiently (at significant less cost) address these issues. Several councils are now trialling smarter alternatives. Just a few examples, building inspectors are being equipped with tablets that will allow them to conduct inspections with direct access to their files in the office. This allows them to initiate action while they are on-site and avoid the double-handling caused by splitting work in the field from work at the desk. Apps are now developed to give easy (remote) access to council information and services. Through apps and websites direct communication between council and its citizens can be streamlined and sped up. The smartest city will be the one with the best apps. Another innovative idea is that tradespeople with tablets can instantly show their work via a broadband connection to inspectors behind their desks. In principle, this could lead to instant approvals based on that information; and, as it is carried out by certified tradespeople, misuse can easily be managed.

5.3 PPPPS - CITIES COLLABORATING WITH CITIZENS AND PRIVATE ENTERPRISE PPPP stands for Public Private People Partnership. Interestingly, as I have been saying over all these years, hardly any new money is needed in order to get these projects off the ground. What is needed, however, are good policies that stimulate the private sector, in collaboration with the city, to make the necessary investments. Local councils can facilitate these processes and work closely with their citizens, businesses and other organisations to create a fertile environment for this to happen. If cleverly done much of it can be done in a PPPP with limited out-of-pocket costs to the cities involved. In the projects we have been associated with we established stakeholder groups – leading people within the city who represent the broader community, including business, education, health, transport, community services, welfare organisations and so on. The council supports this group by providing a secretariat and a coordinating and facilitating function. Through community meetings the stakeholders assist council in explaining and promoting the smart city concept, inviting people to participate and creating citizen engagement – a smart city is one where people are connected and actively engaged.

5.3.1 A collaborative local community model Each city and each community will have to develop its own model. The key reason here is that each community will have its own pressure points, elements that a smart city approach can assist in solving. These are the low-hanging fruits and they can vary from city to city. Also identify the unique elements of each city, whether social, economic, geographic or environmental, and use these to differentiate from others. Communities have plenty of expertise, talent and creativity to make this happen, but to succeed they will have to cooperate (a ‘smart city’ approach). Active and positive participation of all the players is a prerequisite to the success of a smart city. Our vision is to establish a cooperative model that includes: • the ICT industry (telecoms, IT, cloud computing, data centres, apps, content providers, software

and application providers and hardware suppliers); • energy and transport industry (including renewable, battery storage, micro-grids, EVs, public

transport, home electronics, etc)



• the government on all levels (federal, state, local) as well as their agencies, especially when it comes to the early delivery of e-government services. Smart councils can make a strong case to federal and state governments for support in tele-education, e-health, economic development, etc;

• the industry at large needs to take a positive approach, taking into account both social and business factors, and needs to be willing to assist local government and the community in identifying how to best participate in this development with products, services and active usage of smart city tools;

• the users, by showing a willingness to explore new ways to implement some of the lifestyle changes mentioned above (important here are schools, unions, and community organisations). A well-informed user base can push the industry to deliver real benefits to them (and it will reject industry hype);

• a central community focal point – possibly an Innovation Centre and/or a City Systems Centre. • Council should establish a secretariat/facilitating function linked to either the office of the mayor

or the GM – leadership (on top of the silos) is essential.. Local councils are able to be the linchpins in this process. Through leadership they will be able to create widespread public awareness and acceptance of the smart city concept.

Exhibit 3 – Key steps in developing a smart council

• Show vision and leadership and be the facilitator; • Open government and open data • Select parties that can be included in a stakeholders group, according to a multi-partner model; • Discuss with these champions the opportunities, responsibilities, risks and possible investment

needs; • Develop e-government/council services and apps • Inform, promote and market the smart city to citizens but also beyond, in order to attract new

businesses, create new jobs, sell the attractive lifestyle, etc.

5.3.2 Framework for local government policies The concept of a smart city agenda is that it will involve all the parties (government, infrastructure operators, content providers, businesses and citizens) working together to promote the most effective, efficient and attractive way to develop their communities. There are significant benefits to be achieved, especially at a local level, when this kind of cooperation is established. In fact, this model is emerging as a most successful one all around the world. It makes sense for local governments to take control of this agenda and to put their full weight behind the smart city projects required to create a knowledge-based city. It will be good both for local residents and for local businesses. It will provide their communities with an (inter)nationally competitive advantage and it will encourage development in the region by attracting new businesses and homebuyers. In the following chapters we discuss models that need to be addressed in a smart city agenda, such as: • education, health and community services as anchor tenants in the concept; • tapping into federal and state funding arrangements; • community management (active involvement through information, education, promotion,

incentives); • Innovation Centre, Centre of Excellence, etc. The smart city agenda should reflect the city’s vision to create a locally interconnected community. It is the foundation for the essential strategies needed if the full benefit of a smart city is to be realised. To treat this simply as a technology project would be to miss an important opportunity. It is far more than that. The technology should certainly play a role, but it should be a minor one in the overall social and economic agenda of the project.



Furthermore, given that very significant (private) investments are required, local councils should look beyond the short-term issues and establish a long-term plan, removing as many as possible of the impediments that could prevent the creation of a knowledge-based environment.

5.3.3 Stakeholder Groups Most smart initiatives that we have been involved with first of all established high-level council commitment to become a smart council (see above) and a willingness to facilitate and promote the concept of a smart city to their citizens. After this council takes the initiative to form and chair a strategic workgroup aimed at the senior decision-makers within the community (the champions). Following the initial meeting, a steering committee can be formed to ensure that local initiatives are taken and followed up. This group is in charge of looking for smart city opportunities within their sector/company/organisation, liaison with other stakeholders (health, education, business), and commencing initial discussions with businesses and other interests within the community. Council provides the secretariat service for this group. This group is also important in establishing and maintaining contact with the citizens (communities). Regular meetings, presentations, information materials, websites and apps should be used for this purpose. Let the citizens tell what a smart city means to them and what they expect from it. A smart city has everything to do with connectivity, so a coordinated approach is important. In some places we have been involved in the steering committee cuts across state and local government (including health and education). In other cases separate steering groups (or implementation groups) have been established on state and local government level, with strong coordination between the two Other councils take the decision-making process totally in-house and use Community Reference Groups to secure their input and support. Some of these early local council initiatives have been abandoned because of lack of progress during the 00s. However, with a rapid uptake of new technologies such as smartphones, tables, PVs and home automation, and with high-speed broadband networks around the corner, as well as with an increased focus on sustainability, several councils are now revising their early plans within the broader context of a smart city.

5.3.4 Information and education All parties should participate in, and contribute to, a smart city campaign that will educate users about the real benefits that a smart city has to offer. A Smart City Information, Innovation, Demonstration Centre should be considered in order to educate and inform the community, including SMEs, schools, healthcare and community care workers and content providers. Obvious options here include a campaign website, public meetings, information campaigns, press kits, workshops for policymakers, and demonstrations. Special attention needs to be given to ensuring that the strategy will be an inclusive one for all people within the community.

5.3.5 City-based intelligent platform Based on a vision of the medium- and long-term future of the city, and with leadership from the top, councils should establish smart city ICT platforms that would allow for the sharing of infrastructure and other resources, and will need to include policies for open data and open government initiatives. Around the world we see such platforms gravitating towards the following key applications: • interconnected LED street lighting, • waste and water management,



• smart transport and smart parking • Smart business (including tourism) • City-wide WiFi networks to support these developments Once such a platform is created councils can look for PPPPs (Public Private People Partnerships) that can use the platform and develop the smart city projects, to a large extent without any significant out-of-pocket costs to the cities. Large ICT organisations are keen to become involved in the development and management of such a platform and once in place (local) entrepreneurs can use the platform to develop apps and services.

6. THE SHARING ECONOMY

6.1 SHARED COMMUNITY SERVICES An important element of smart cities is closely linked to recent developments – sometimes described as the sharing or collaborative economy – which is often aimed at residents and SMEs as well as at larger entities. The concept applies to shared facilities in homes, buildings, city facilities such as parking spaces, sporting facilities, schools, shared labour, shared cars, shared tools and voluntary community services. These activities are supported by apps and websites where like-minded people and groups can participate; some of the shared activities may be of a purely commercial nature; others are community-shared (with no money exchanged), while others include a facilities charge. A sharing local economy approach adds a whole new dimension to the smart city concept.

6.2 STRATEGIC ELEMENTS OF THE SHARING ECONOMY • allows users to enhance their lifestyle (as indicated above); • allows them to enhance their economic value in the labour market; • allows the city to market and promote its community and its shared facilities to both residents and

businesses inside and outside the project area; • within the smart city concept, it allows businesses, universities and local governments to

experiment with new business models, new structures and new processes • Shared ‘service infrastructure’ makes new developments financially viable and affordable. The sharing concept is well-suited to the technological changes happening in our society, which support changes from ‘ownership’ to ‘availability’. Councils can stimulate and support their sharing economy through collaborative promotion. It can also add credibility to the services. At a city level centralised commercial facilities could assist this development (open data, cloud computing, datacentres). This can be run by private organisations, community groups, councils, businesses, etc. Such a hub could also be integrated in an innovation centre, incubation centre, living lab activity, etc. If a broader facility such as this is set up properly, with the appropriate technology, it will be able to facilitate all the groups listed above and will offer employment and business opportunities to all stakeholders. The operation of the hub should be market-driven (not technology-driven). Such centres can be developed around datacentres, NBN points of interconnect (POI); and mobile towers in regional areas should also be considered in this context.



6.3 SUSTAINABLE COMMUNITIES New sharing options, with the assistance of new technologies such smart grids, micro-grids, battery storage and apps, are now also making it possible to share energy. Especially within well connected communities, sustainability becomes a new option, by sharing energy from renewable energy sources (wind, solar). With battery prices coming down, community energy storage is coming within reach. In other communities micro-grids have been developed, often in cooperation with larger organisations in the neighbourhood – shopping centres, stadiums, hospitals – whereby access energy is made available to its domestic neighbours. Smart roads are being investigated that generate energy for adjacent buildings. In Europe several of these initial initiatives are now spreading out to include neighbouring communities and suburbs. Some of these concepts are also ideally suited for regional and remote communities, and we have been working with Horizon Power in Western Australia to develop smart Aboriginal communities, making them more sustainable at significantly lower cost. We have explored this concept further within the UN Broadband Commission for Digital Development as it is also very relevant to communities in developing economies.

7. PAUL BUDDE CONSULTANCY Paul has been involved in the development of policies and strategies for smart cities and related activities for over 30 years. He specialises in advising governments, international agencies and corporations in relation to the social and economic transformations that are needed in today’s rapidly changing society. ICT and broadband infrastructure, in particular, are key strategic tools that allow governments and businesses to use digital productivity to improve the quality of life and to create a competitive economic environment. Paul is actively involved in areas such as national broadband infrastructure; smart cities, smart communities and smart grids; e-health, e-education, e-government, e-commerce and e-entertainment. In this capacity he has worked as an adviser to the government of the United States of America, where he presented the national broadband concept during a meeting at the White House. He advised the government of the Netherlands on transformative innovation. He was the strategic adviser to the former Australian Communications Minister Stephen Conroy, the father of Australia’s National Broadband Network. He also advised the governments of the United Kingdom, Qatar, Ireland and New Zealand on the importance of national broadband networks for digital development. He has assisted over 50 local councils/municipalities in developing smart city plans. In the corporate and financial world his focus is on the need for business, industry and sector transformation in the wake of the rapid ICT developments that are reshaping business models, competition and innovation. In 2009 he discussed with the ITU Secretary-General Dr Hamadoun Touré the formation of what is now the UN Broadband Commission for Digital Development, to which he is a special adviser. In 2015 he addressed a ministerial council in Milan on smart cities and smart energy. He has been presenting his strategic views on smart cities at conferences in Tokyo, New York, Kuala Lumpur, Paris, Doha and Sydney. Paul is also the founder and executive director of Smart Grid Australia and a founding board member of the Global Smart Grid Federation based in Washington DC.

http://www.smartgridaustralia.com.au/�

http://www.globalsmartgridfederation.org/�



8. RELATED REPORTS For more information on broadband, see separate reports: • Global Smart Infrastructure - Smart City Transformation 2015 • Smart Cities - Nation Building Now in the Hands of Cities and Communities • BuddeComm Intelligence Report - Smart Societies based on Big Data, Artificial Intelligence

and Deep Learning • BuddeComm Intelligence Report - Smart Transport, Smart Vehicles and Drones • Global Smart Infrastructure - Gravitating Towards Smart Grids and M2M • Global Smart Infrastructure - The Direction is Smart Cities and AI Copyright Paul Budde Communication Pty Ltd, 2015. All rights reserved. This material is subject to the laws of copyright and is restricted to registered licence-holders who have entered into a Corporate, a Multi-User or a Single-User licence agreement with Paul Budde Communication Pty Ltd. It is an offence, punishable by a fine of AU$250,000, for the licence-holder to make the material available to any unauthorised person, either via e-mail messaging or by placing it on a network. We offer very attractive multi-user and Intranet services. To arrange for additional user licences please contact us. 5385 George Downes Drive, BUCKETTY NSW 2250 AUSTRALIA Telephone: +61 2 4998 8144 Fax: +61 2 4998 8247 Email: [email protected] Web: www.budde.com.au

http://www.budde.com.au/Research/Global-Smart-Infrastructure-Smart-City-Transformation-2015.html�

http://www.budde.com.au/Research/Smart-Cities-Nation-Building-Now-in-the-Hands-of-Cities-and-Communities.html�

http://www.budde.com.au/Research/BuddeComm-Intelligence-Report-Smart-Societies-based-on-Big-Data-Artificial-Intelligence-and-Deep-Learning.html�

http://www.budde.com.au/Research/BuddeComm-Intelligence-Report-Smart-Societies-based-on-Big-Data-Artificial-Intelligence-and-Deep-Learning.html�

http://www.budde.com.au/Research/BuddeComm-Intelligence-Report-Smart-Transport-Smart-Vehicles-and-Drones.html�

http://www.budde.com.au/Research/Global-Smart-Infrastructure-Gravitating-Towards-Smart-Grids-and-M2M.html�

http://www.budde.com.au/Research/Global-Smart-Infrastructure-The-Direction-is-Smart-Cities-and-AI.html�

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