CISCO SMART CITY

IT STRATEGY
Team 3 :
Yann Robyn, Pujan Motiwala, Rohit Bodhe, Shilpi Talukdar, Ashwani Dua
What is a Smart City?

2
 Executive Summary
o Approximately 50% of world’s population live in
urban areas, a number which is expected to
increase to nearly 60% by 2020.

o The need to leverage ubiquitous connectivity,

big data and analytics that are enabling Smart
City initiatives all over the world.

o IoT platforms that will reduce the time, cost,

and risk - connect multiple systems in a city.

o Improving infrastructure, creating more

efficient and cost effective municipal services,
enhancing public transportation, reducing
traffic congestion, and keeping citizens safe and
more engaged in the community.
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Executive Summary

4
Introduction

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CISCO - IoE (Internet of Everything)

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Corporate Strategy

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Corporate Strategy

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Business Unit Strategy

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Business Unit : IoT Solutions

Mission

Vision

Objective

Value
Statement

Strategy

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IT Strategy

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 MISSION
Cisco smart city aims to pioneer Internet of Everything (IoE) into every home,
street and community aimed at ensuring safety for citizens and increasing
energy efficiency.

VISION
Be an industry leader in helping forge Smart Cities worldwide to unlock
technology innovation.

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 OBJECTIVES

Applications Infrastructure

Strategy

Technology

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 VALUE STATEMENT
What brings to Cisco to work on smart city projects?

o Expertise
o Trusted Partner
o Knowledge transfer between Business Units
o Cost savings
o Improved business capabilities
o Improved technical capabilities

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 Mintzberg’s 5 P’s Strategy
Pattern
• Automate and analyze Pattern
Plan
• Data Aggregation and Position
• ExpandTransformation
business opportunities • Building on legacy of
networking supremacy • Leader in developing
• Competitive advantage
• Enterprise Analytics & Reporting
• Innovate in-house smart city
• Development of resources
• Integration with available
products • Cisco Smart+Connected
• Acquireproducts/services
new competencies City has safety & security
• Acquiring smaller
• Build a network with providers innovative companies solutions
• Consolidate global • Being the GO TO partner
presence for networking solutions

Ploy
• Gain trust based on global
reputation
• Compete on price
(economy of scale)
• Target emerging cities as
well as developed cities
• Market monopoly
• Intellectual property
Perspective
• Maintain a balance
between innovation and
reputation
• Constantly improve other
businesses
• Outsourcing +in-house
talent development

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Business Strategy and IT Strategy Alignment
Strengths
Established networks market
Global presence
High financial credibility
Network of business partners
Expertise and insights in sensors, digital devices
Multiple revenue streams
Opportunities
Capture the next wave of internet
Establish foothold in new businesses
Develop new expertise
Reach various cities world to gain local insights
Utilize insights for different businesses
Weakness
Direct dependence on suppliers
Disruptive technology trends
Risk based approach
Lack of collaboration with other firms
Non-audit and assessment of current trends
Threats
Competition: Investment firms, Auditing firms
Next wave of technology: bigger than Big Data
Security of data and insights
Talent poaching
Vulnerability to attacks
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IoT Solutions - Business Unit Objectives

o Expansion to new clients (cities)

o Leverage brand recognition
o Gain local insights
o Trusted partnership
o Combine Talent + Opportunities

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Golden thread

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 Implementation of a Smart City
Capturing masses of data
from Smart cameras, Smart
lights and different monitoring
sensors as well as social
network and people.
Different sensors detect live
traffic conditions & send data
over network for analysis.
Efficient crime analytics
solutions identifies incidences of
crimes amongst masses of data
with help of Big data.
Analytics identify sudden
changes in traffic conditions
signalling likely traffic incidents.
The Facial recognition with
help of Artificial Intelligence
can predict the criminal and
the victim by real time crime
analysis and with help of
investing agencies.
Traffic flow patterns are monitored
to identify congestion, update the
traffic situational awareness picture
& alert operator.
And the victim can be
alerted on the smart
city app on phone or
on wearable tech
before crime occurs.
Safer streets and neighborhoods
as well as Improved road safety provides
expertise on & branding for CISCO Smart City.
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Implementation of a Smart City

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 Add Value to Cisco
o HOW WILL IT ADD VALUE ?
o Expand our portfolio of competencies
o Explore new market segment
o Disruptive innovation

o WHEN WILL IT ADD VALUE ?

When Cisco will really acquire expertise and brand recognition for developing smart cities.

o WHO WILL BE AFFECTED WITH THE ADDED VALUE ?

o Citizens
o R&D
o Employment opportunities (International project)

o WHERE WILL IT ADD VALUE ?

o Innovation Business Unit
o Extra perks with Government partnerships
o WHAT WILL HELP IN ADDING VALUE ?
o Mergers and Acquisitions
o Client endorsement and recommendations
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Five Principles for Delivering Value

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Business improvement & Competitive advantage

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IT Business Relationship

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Use of Information Management

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Use of Master Data Management

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Use of Big Data & Social Media

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Improve Customer Experience

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Use of Business Intelligence

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 Compliance Impact & Needs
● Cisco respects and is committed to
protecting customer’s personal information.
CISCO privacy statements reflect current
global principles and standards on handling
personal information – notice and choice of
data use, data access and integrity, security,
onward transfer and enforcement/oversight.
● Console Access
● Logging and Syslog
● Terminal Access
● User Passwords
● AAA
● AAA Accounting - Commands
● AAA Authentication - Login
● Part of the Global Export Trade team, the
Strategic Product Group primarily directs
and counsels product teams on export
issues.
● The group also provides expertise on the
export classifications of Cisco products
to internal and external customers and to
government agencies, as needed.
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Suppliers & Alliances

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Golden thread

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 IT Governance
“Governance means establishing accountability while creating a model that balances
operational excellence and innovation to enable business growth. Like most large IT
organizations, Cisco is a strong advocate of using industry frameworks.”
Process Structure

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 IT Governance

A handful of principles define Cisco’s IT governance objectives and keep IT

focused on priorities:

1. Business value and quality of solutions

2. Globalization
3. Architectural compliance
4. Security governance and compliance
5. Operational excellence

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IT Governance: Risk Identified

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Risk Management Strategy: Disruption of Service

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Communication Plan for CISCO

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Professional assessment

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 Super SWOT
Smart City Strengths Weaknesses

Network Infrastructure Global Economy

Global Outreach Disruptive technology trends
Robust financial results Decline in traditional business
(storage devices)

Opportunities SO Strategies WO Strategies

Develop new business lines Partner with developing economies In-house pilot projects
Expand partner network Invest in emerging technology Acquire emerging firms
Consulting portfolio Enhance in-house cloud
storage/solutions

Threats ST Strategies WT Strategies

Data Governance Policies Work with government agencies to Develop agile framework to adopt
Cyber attacks develop policies latest technologies
Disruption of Service Hire best talent + advance training to
counter cyber attacks Internal technology audit to manage
controls/defenses
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Ansoff Matrix

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 Porter’s 5 forces
Threat: Medium High cost of services
Laggard cities
Lack of digital infrastructure
Buyers

Threat: Low Threat: Medium

Threat: Medium
High Capital Investment Upgraded sensor network
Technology Expertise Lack of trusted partners
New
Geographic Limit Substitutes Limited services
Entrants
Industry
Rivals
Industry growth rate
Size of competitors
Exit barriers
Threat: High
Threat: High
Drivers of smart city
Supplier-chain monopoly Enormous private/public data
Suppliers Security Hacktivists
High cost of equipment
Supplier poaching Data sharing and utilization

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 Smart Cities – IT Strategy
Factors AS-IS TO- BE

Connections to the Internet via : Connections to the Internet will be dynamic with creative use
of technology
People Devices – smartphones, tablets or PC’s
Social Networks – Facebook, Twitter, LinkedIn or Gartner: People will be nodes that transmit information.
Pinterest
IT Body sensors, smart apps, live reporting and monitoring via
Crime reporting via Social networks, alerts or smart cities, homes and workspace.
manual reporting
Smart sensing of potential target zones and hot targets

Use of data from various sources can be Smart cities will collect, transmit, analyze data on the go and
transferred to a platform such as IoT for drive insights into reducing crime
processing or analysis
Data Connected things in smart cities will open up “Device Talk” to
Smart evaluation of real time data is limited to
combine data and drive real-time insights
response time from IoT servers

Data and analytics need clean data to show Faster decision making with smart information will allow for
insights or decision supporting analysis advanced tactical responses from law agencies to prevent,
control or mitigate situations

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 Smart Cities – IT Strategy
Factors AS-IS
Makes up of sensors, consumer devices or assets
that communicate with the internet
Things
Smart data is not context driven
IT Sensors and collected data need an active
internet connection to transfer and analyze data
Limited integration of sensors in equipments or
daily use products – limits data monitoring and
analysis
Digital cities have crime reporting processes that
are dependant on human initiation
Safety concerns, governance processes and lack
Processes
of support from law enforcement for victims
Processes do not maximize the potential of smart
data or highly specialized devices ( FAA
Unmanned Aircraft Regulations)
TO- BE
Smart sensors can be placed at various locations to track,
monitor and update law agencies regarding issues or conflicts
Context aware devices will provide critical information
regarding people, sustainable conditions, predict unsafe zones
Sensors built into structures such as bridges can provide vital
information
Smart-sensing objects can be used to transmit real-time traffic
updates with re-routing patterns
Processes combined with People, Data and Things focuses on
unlocking potential of Smart Cities
Governance models to combat crime, increase awareness, ease
of reporting via Device Talk
Well phased deployment plan to develop smart cities
Processes to prevent redundancies, mitigate risks, address
security and privacy concerns and manage sensor outburst.
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Golden thread

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 Market Analysis and Demand

“Smart City Market is Likely to be Worth a

Cumulative $1.565 Trillion by 2020 “ - IBM

26 global cities and 90 sustainable cities by

2020.

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Market Analysis and Demand

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Market Demand

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IT Service Design

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Cisco - Service Blueprint

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Smart City - Services

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Technology RoadMap

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Recent Technology Curve

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Smart Cities

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Smart Integration

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Smart Collaboration

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Business Model

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 Network connection &
Business Model
‘Tomorrow starts here’
BMC Software access Consulting like Big cities (>250k inhab.)
CA Technologies Smart City Solution Improve safety in the Dedicated teams Public Sector
Citrix Develop infrastructure cities Co-creation City innovation dept.
Dimension Data Operation Private firm
Hitachi Data Systems Citizens empowerment
Research & Dev.
(HDS) Data Management Avoid waste of energy
IBM Marketing
Microsoft Better traffic
Oracle management
Red Hat
SAP Staff Attract new people in Multi-products sales
VCE IT infrastructure cities Websites
VMware Intellectual properties Mobile Apps
Backup equipment Beneficial returns on Social Media
Accenture Ltd
Brand/Culture city tax and commerce Global Events Platform
Cap Gemini
AT&T ... Local Company HelpLine
Real-time data analytics
Global Outreach

Consulting, Auditing, Ads, Data Analytics, Gain Competitive

Cost of sales for products, Cost of sales for services, Operating
expenses, Marketing expenses, Maintenance
Advantage, Sell data insights
Expertise to gain trust => so more customers,
Sales Solutions, Software, H/W, Networking services,
Subscription for extra services, Renting material
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 Business Model
Smart City as a Service
Monthly plan:
● Monitor your house $5
o Intrusion Alert
▪ Send Notification to police around your house
● Traffic & Parking information $3
● Get report on the city $2

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 Business Model Alignment
Develop expertise:
o Network connection & access
o Tech. platform
o Smart City Solution
o Operation
o Research & Development
o Data Management & analytics

Be a differentiator:
o Smart city as a service
o Work with local company
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Functional strategies
Marketing Strategy

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 Target market
o 1,900 cities throughout the world with populations of 250,000 or more
o 26 excess 10 million inhabitants

o Assumptions on potential smart city deployments based on city size:

• 27% of the world’s cities are viable candidates for smart city solutions
over the next 3 to 5 years.
• Global market opportunity of $7.5 billion of new annual revenues for
technology vendors
• Small cities are ideal settings for pilot projects

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 Marketing Mix Analysis

PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL

EVIDENCE
Smart City Solution Big project with Multi- channel Use sales forces to Dedicated Team Customer focus
consequent ROI convince cities Previous smart city
Improve Safety & Internet Management IT Development implemented
Energy No big differences Create events to
consumption in pricing between Mobile App promote these solutions R&D Installation Previous project
competitors Service delivery
Website Advertising Customer Online experience
Experience
Service Configuration
Wholesale Recommendation Sales
Technology
Employees Training
platform Cities meeting Show results from Buzz
previous projects Testing
Network

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 Value Proposition
● City Management:
○ Quality of life indicators
○ Environmental sustainability
○ Economic development
○ Use intelligence and insight to build and operate municipal infrastructure.
○ Create work

● Citizens:
○ Live in a safe community with access to all smart city services.
○ Beneficial returns on taxes paid, reliable and useful services
○ Cost saving (energy, transportation..)

● Enterprises in the City:

○ Location in an environment that supports and promotes prosperity
○ New market, new opportunities => Productivity growth

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 Market Segmentation
● Geographic Segmentation
○ Psychographic/Demographic Segmentation
■ Smart Security Systems

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 Customer Satisfaction and Loyalty

Customer satisfaction: Customer loyalty:

● Set customer expectation early ● Reward customers

● Build trust ● Create loyalty program

● Gain experience and reputation in the ● Follow up

market
● Have dedicated team
● Make interactive surveys & Use
social media analytics to identify ● Personalized services
improvement areas

● Focus on customer experience

● Build customer loyalty

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Functional strategies
Financial

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 Revenue prediction
Baltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+

Revenue 2016 2017 2018

Tax revenues $4M $8M $12M

Monthly Subscriptions $3.7M $11.2M $18.6M

5% of the population 15% of the population 25% of the population

Energy saving $2.6M $2.6M $2.6M

TOTAL (per year) $10.3M $21.8M $33.2M

TOTAL $65.3M
(over 3 years)
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 Expense forecast on 3 years
Baltimore Size: 92.28 mi² / Population: ~620 000 in the city / Street light: ~80,000+

CAPEX

Build Wifi-Network (100% of the city) $9.2M

Buy Smart Street Light (LEDs+Camera) $9.6M

Operation Cost (Installation) $17M

TOTAL $35.8M

OPEX

Solution Platform(Data Warehouse+Analytics) $3M/year

Cost of labor and materials $0.6M/year

TOTAL (per year) $3.6M

TOTAL (over 3 years) $46.6M

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Smart city revenue by solution

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 Revenue Repartition
For a project like Baltimore Cisco can make around $32M per year
for technology vendors and partners
Traffic incident management, smart lighting, smart parking, safety & security.

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Functional strategies
Delivery/Operation

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 Distribution Channel
Physical Channel:
o Events
o Meeting
o Infrastructure

Electronic Channel:
o Websites
o Mobile Apps
o Social Media
o HelpLine
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 Customer Service Strategy
Differentiation:
o Customize our solution for each city
o Address specific customer needs (Focus)
o Try to maintain the level of risk at the minimum
• Improved Security
• Private networks
• Multi-layer complex architectures
o Provide training for police dept. and people involved in the processes
o Constantly improve our solution by collecting feedbacks

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 Human Ressources
Strategy: Reduce turnover through retention incentives and employee engagement

o Hire talents to develop and enhance solutions

• Experienced people for the management
• Fresh people for the innovation
▪ Develop key skills
o Hire and train people to provide free training for police & fire department
o Hire and train technicians to maintain the infrastructure
o Offer competitive salary to avoid information leak and keep our employees
o Empower employees

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 Outsourcing
Strategy: Outsourcing for operation efficiency

What? Who?
o Operation Choose trusted and local partners to
• Construction avoid issues like:
▪ Infrastructure • Weak infrastructure
▪ Command center • Security issues
• Equipment • Delay in the project
▪ Smart light • Problem while doing
▪ Cable maintenance
o Maintenance

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Implementation Strategy
Rollout Plan

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Formulating Implementation Strategy
“Every community is different, with different needs and different approaches. But communities that are
making the most progress on these issues have some things in common. They don't look for a single
silver bullet; instead they bring together local government and nonprofits and businesses and teachers
and parents around a shared goal.” – President Barack Obama

Conduct Feasibility Study +

What are others doing? Lessons Learnt. Collaborate …

Project Scope
and Phase

Prioritize
Project

Goals
Boundaries &
Timelines

Key Deliverables

Project
Owner and
Stakeholders

People Process Technology

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Implementation Strategy
People Process Technology

Current ASIS – TOBE with Skills, Partners,

Project Scope Stakeholders of high-level Interaction with
and Phase Citizen Services – requirements. current
Crime Monitoring. infrastructure,
interface with cities Cybersecurity
like Boston with real-
time crime
monitoring

Project Who is not Constraints License Fee , SLA,

impacted? What is Timelines , Pilot by Key Players
Boundaries &
not included - 2016
Timelines Criminal Court
Processing.
Timelines

Key Skills, Training, Application, Metrics, Data quality,

Coordination Data constraints, Platform , Metrics,
Key Deliverables Customer care. Phased deliverable , Monitoring
metrics, Balanced Data Standards & Dashboard* –
Scorecard Repository, *Inspired Smart
Standardized London Vision.
Processes

Project Initial support and Funding, Metrics, Funding, Metrics,

Owner and Testing availability Feedback Feedback
Funding , Metrics
Stakeholders
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 Implementation Strategy – Development

Analysis
and
Document

Implement Analysis of
(Roll Out) Alternatives
Waterfall
Collaborate &
Feedback

Integrated Strategy
Design with
focus on
Test Innovation
&
Standardization

Develop

Agile
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Implementation Plan – Deployment

With SDLC , Gantt Chart

for Deployment, Change
Management and Training

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 Implementation Strategy Incorporate feedback

Iteration 1

Analysis and Analysis of Implement

Design Develop Test
Document Alternatives (Roll Out)

Iteration 2

Analysis and Analysis of Implement

Design Develop Test
Document Alternatives (Roll Out)

Iteration 3

Analysis and Analysis of Implement

Design Develop Test
Document Alternatives (Roll Out)

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 Project Rollout Dashboard

Delay Alert On Time Coming Up

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Measurement and Metrics

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Metrics - What are we looking at ...

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Metrics - ISO 37120

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 Metrics - ISO 37120 stated Benefits

Some of the benefits envisioned for ISO 37120:2014 include:

1. More effective governance and delivery of services

2. International benchmarks and targets
3. Local benchmarking and planning
4. Informed decision-making for policy makers and city managers
5. Leverage for funding by cities
6. Framework for sustainability planning
7. Transparency and open data for investment attractiveness
8. Comparable data for city decision-making and insight

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 Metrics
Traditional New
1. Project Metrics 1. Social networking and Microblogging
2. Enterprise Risk Metrics 2. Lessons Learnt Processes and Approaches
3. IT Risk and Compliance Metrics 3. Knowledge Management - Wikis
4. City Performance (ISO 371202014) 4. Data Quality metrics
• Financial management 5. Process Standardization and Improvement
• Human capital management 6. IT – Process, Data, Platform, Things
• Education etc. 7. Innovation

8. Product development

9. Sales and marketing

10. Supply chain management

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ISO 37120:2014 Metrics

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ISO 37120:2014 Metrics

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ISO 37120:2014 Metrics

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ISO 37120:2014 Metrics

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ISO 37120:2014 Metrics

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Project Metrics
Tactical
Question Answered Sample Indicator
Measure

Time How are we doing against Schedule Performance Index (SPI) = Earned Value ÷ Planned Value
the schedule?
Cost How are we doing against Cost Performance Index (CPI) = Earned Value ÷ Actual Cost
the budget?
Resources Are we within anticipated Amount of hours overspent per software iteration
limits of staff-hours spent?

Scope Have the scope changes Number of Change Requests

been more than expected?

Quality Are the quality problems Number of defects fixed per user acceptance test
being fixed?
Action Items Are we keeping up with our Number of action items behind schedule for resolution
action item list?

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Enterprise Risk Metrics

APAQ

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IT Risk and Compliance Metrics

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Issues

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 Issues/Challenges
1. Retrofitting existing legacy city infrastructure to make it smart
2. Financing smart cities
3. Availability of master plan or city development plan
4. Financial sustainability of Smart City Infrastructure
5. Technical constraints including Cyber security
6. Multi-tier governance
7. Dealing with a multivendor environment
8. Capacity building program
9. Reliability of utility services – For implication in Crime reduction, Reliability
has to be 100%

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 Conclusion &
Recommendations

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Conclusion - Current

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 Conclusion - Cont’d
“Baltimore city budget is running $12.4M surplus”
– Baltimore Sun Dec 6th 2015

Police overtime costs, meanwhile, continue to come in high. A new patrol

schedule for officers, rolled out earlier this year, is helping to bring down
costs. Kleine projects nearly $33 million in spending on overtime, down
from $38 million. The city had budgeted $20.5 million for overtime.

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Conclusion
Component Cost as communicated in Functional Section

Build Wifi-Network (100% of the city)+Monitoring Lab $9.2M

Buy Smart Street Light (LEDs+Camera)+ Sensors $9.6M

Operation Cost (Installation) $17M

Solution Platform(Data Warehouse+Analytics) $3M/year

Reduction in Response Time by Officials Reduction in Crime

Rate
Energy
Crime Recorded - Criminals off Street
Saving / Infrastructure for
Visibility Smart Connected
Better Personnel Allocation + Reduction in Patrol
Costs
City

Connectivity 24 X 7 Monitoring of High Risk Areas and Priority Smarter, Safer &
area like schools. Energy Savvy
Community
Energy Saving
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 Recommendations
1. Move towards Smart Framework

2. Prioritize - on the area’s and CLEAR Project SCOPE - What are we trying to achieve?

3. Identify right stakeholders

4. Identify Build and Operate or other financial business models like

Crowdsourcing for Design.
5. Implement standardized, flexible solution with opportunity for expansion

6. Top management has to promote and support the initiative

7. Monitor Multivendor environments for timelines, collaboration, compatibility

and Licensing Costs. Evaluate Tax benefits for investments for Public and Partners.
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Thank you!
Questions?

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References
http://www.federaltimes.com/story/government/dhs/blog/2015/09/24/protecting-
internet-things-and-living-smart-cities/72742172/
http://www.citylab.com/tech/2012/03/how-catch-criminal-data/1477/
http://www.cisco.com/web/about/ac79/docs/ps/motm/Smart-City-Framework.pdf
http://www.ibm.com/smarterplanet/global/files/us__en_us__cities__smart_city_e_summar
y.pdf
http://www.cisco.com/web/strategy/smart_connected_communities.html
http://www.cisco.com/web/about/ac79/docs/ps/motm/Smart-City-Framework.pdf
http://www.bizjournals.com/kansascity/news/2014/05/22/ciscos-smart-city-plan-for-kc-
the-biggest-they-ve.html
http://www.cisco.com/web/strategy/docs/gov/everything-for-cities.pdf
http://www.ibm.com/smarterplanet/global/files/us__en_us__cities__smart_city_e_summar
y.pdf

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 References
http://www.neighborhoodscout.com/md/baltimore/crime/#description
https://www.cisco.com/web/services/portfolio/documents/strategy-and-analysis-
service-overview.pdf

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