Leading cities are mining data for economic gold
22 August 2015
by Nick Michell
Michael Dixon*, General Manager of Smarter Cities, IBM, looks at how analytics are offering cities more cost effective levels of service
The bustling Dutch city of Eindhoven is a fast-growing centre of commerce. Traffic, however, is a challenge as several international transport routes converge in or near this regional hub of 250,000 residents.
But while the number of vehicles is increasing, congestion may soon be on the decline, thanks to a pilot programme that gathers real-time information from vehicles. The data–collected anonymously via in-car sensors–is transmitted to and analysed by local traffic authorities, enabling them to resolve road construction issues faster, reduce congestion, improve traffic flow and hasten accident response times.
Using data to solve problems before they happen is no longer just the domain of deep-pocketed big businesses. Municipalities that wisely invest in smart technologies are reaping significant economic and reputational benefits from residents and businesses–while those that remain on the data analytics sidelines may be left behind.
From traffic control to emergency response, water management, energy management and city operations, several critical domains impact the quality of life for citizens, businesses and visitors. How effective cities are in managing these areas, directly or through the expertise of service providers, has a direct impact on the economic vitality of their community.
For example, IBM and the Montpellier District of France created an urban living laboratory to design new urban services to attach sustainability and economic development goals of local leaders. Based on the IBM Intelligent Operations Center, the system provides visibility into information from across the district, and allows massive amounts of city data from transportation systems, water systems, and environmental management to be accessed and shared in new ways. The system is helping the city with the following:
• Reducing pollution by 20 percent by 2020.
• Reducing traffic congestion by approximately 10 percent by directing citizens to alternate driving routes and transportation means; and
• Improving early warnings for flooding by 24 hours, allowing time for the municipality to change water flow preventively to avoid problems, while also helping reduce energy and water resource use through improved consumption monitoring and feedback loops.
As demonstrated by the Montpellier District of France, today, mayors and other leaders have the ability to transform city services into instruments for economic growth and societal value, using advanced technologies and data analytics as the drivers. Madrid is also dramatically changing the way services are provided to its people through the application of data analytics and modelling, which ensures service is provided when it is needed. Government, service providers and citizens are connected by analytics, and the results are pleasing everyone.
By optimising the effectiveness of core city systems, the systems can become critical differentiators in stimulating the economic vitality of cities around the globe because they help attract and retain skilled workers and businesses.
Public safety gets smarter … and safer
One area critical to the smooth growth of a city is robust public safety. Many forward-thinking cities are using advanced analytics and computing technologies to make their public safety systems smarter.
Singapore is leveraging data analytics and mobile technologies to support efforts that are driving citizens towards greater use of public transport and less reliance on personal vehicles. Its National Transport Fare System gives riders a single card for use across all modes of public travel; plus, the system generates data from 20 million daily transactions that helps further streamline processes and enable more convenient and affordable options for travellers.
Because Singapore commuters pay their fare based on the distance travelled irrespective of modes of transport, about 60 percent of them are saving money over traditional forms of payment. Operators are also benefitting, as the system supports a complex fare structure, and has reduced the number of missed or inaccurate fares by 90 percent. Importantly, the data-driven system is increasing revenue by making public transport more convenient, thereby reducing traffic congestion because fewer private vehicles are on the roadways. Such a win-win scenario improves the return- on-investment and prompts the trial of additional technology-centric solutions.
Working together, one project at a time
While many cities and related entities see the potential for analytics to optimise their existing assets, plan and manage additional capacity and encourage and harness innovation, they are often intimidated by the perceived cost. Cities are not bristling with ‘spare’ money. However, analytics offers far more than the promise of benefit for incremental spending. Analytics offers the potential for significant transformation–the realignment of resources to generate much more cost effective levels of service. This issue is not finding more money to spend over and above existing commitments, but to identify a clear business case which offers higher levels of service with quantifiable financial benefits. Viewed from this perspective, how can cities not afford to invest in analytics? Once on this path, cities can consider two courses of action to ensure their initiatives are successful.
First, they must focus on their one or two most critical challenges or opportunities first. My experience has been that most mayors and other city officials–while responsible for the effective delivery of numerous government functions–have identified one or two problem areas that require their most urgent attention. Focusing on these first is more likely to win the approval of interested stakeholders and those more likely to have related resources.
This is happening in California, where the Integrated Law & Justice Agency for Orange County (ILJAOC) has implemented an IBM application called COPLINK that is designed to help law enforcement organisations solve crimes faster, keep officers safer and disrupt criminal activity. Linking data from 24 agencies, it uses analytics of seemingly unrelated data needed by law enforcement officers in the field–all accessed via mobile devices.
For instance, by quickly accessing a photo and profile of an escaped suspect while in the field, officers can share the information with citizens, thus enabling them to locate and apprehend the suspect faster than through regular means. This results in a far more efficient use of department resources.
Not only does more rapid response to and resolution of crimes make the community safer, the efficiencies gained through COPLINK can result in reduced operating costs. And when a problem is economically viable, the savings can be used to fund another data-driven municipal project.
Another smart course of action for municipalities embarking on advanced technology and data analytics projects is to seek out and select viable partners. Many communities are choosing to engage with a wide ecosystem of public and private stakeholders who can help fund–and reap the benefits of–advanced systems. These collaborations in the design and delivery of these technologies can provide improved and more tailored services to citizens and businesses, prompting them to have more of a stake in its successful implementation.
Traditional public-private partnership models can play a key role in these projects, as a network of partners can take a shared interest in its results. But the most impactful projects also include end user stakeholders–such as community groups and business organisations–that can help shape the services that ultimately benefit them.
For instance, civic and business leaders in Philadelphia organised a City Engagement Innovation Summit to explore the role of technology, citizen empowerment and academia in transforming the economic vitality of the city. An example of such a collaboration is Philadelphia’s recently upgraded 311 system, which now delivers services across social media, mobile devices, in the cloud, via phone calls or in person–all thanks to cutting edge technology from a business partner.
Of course, the most important role in a city’s use of digital technologies and data analytics to transform its economic and societal value is that of its leaders. The mayor or city manager must possess the vision, passion and fortitude to tackle difficult problems or pursue exciting opportunities.
Those who see and act on the potential of advanced technologies are reaping the results through service improvements that are making their communities attractive and economically viable places to live, work and play.
*Michael leads IBM’s strategy and its implementation for Smarter Cities around the world. With focus on transport, emergency management, water, buildings, public safety and other areas, IBM delivers increasing levels of service and better value.
