This document provides an overview of Cisco's proposed strategy to enter the smart city market. It discusses Cisco's mission, vision and objectives for its smart city initiatives. Some key points:
- Cisco's mission is to pioneer Internet of Everything (IoE) technologies to ensure citizen safety and increase energy efficiency in cities. Its vision is to be an industry leader in helping develop smart cities worldwide.
- Cisco sees opportunities to leverage its expertise in networking and partnerships to provide smart city solutions involving infrastructure, applications and technology. This could help cities improve services while reducing costs.
- The document outlines various strategies Cisco could take, such as expanding its partner network, acquiring emerging technology firms, and developing new business lines around smart
3. 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.
3
12. 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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14. 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
VALUE STATEMENT
14
15. Mintzberg’s 5 P’s Strategy
Pattern
• Automate and analyze
• Data Aggregation and
Transformation
• Enterprise Analytics & Reporting
• Integration with available
products/services
Plan
• Expand business opportunities
• Competitive advantage
• Development of resources
• Acquire new competencies
• Build a network with providers
Pattern
• Building on legacy of
networking supremacy
• Innovate in-house
products
• Acquiring smaller
innovative companies
• Consolidate global
presence
Position
• Leader in developing
smart city
• Cisco Smart+Connected
City has safety & security
solutions
• Being the GO TO partner
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
15
16. 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
Weakness
Direct dependence on suppliers
Disruptive technology trends
Risk based approach
Lack of collaboration with other firms
Non-audit and assessment of current trends
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
Threats
Competition: Investment firms, Auditing firms
Next wave of technology: bigger than Big Data
Security of data and insights
Talent poaching
Vulnerability to attacks
16
17. 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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19. Implementation of a Smart City
Efficient crime analytics
solutions identifies incidences of
crimes amongst masses of data
with help of Big data.
Capturing masses of data
from Smart cameras, Smart
lights and different monitoring
sensors as well as social
network and people.
And the victim can be
alerted on the smart
city app on phone or
on wearable tech
before crime occurs.
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.
Different sensors detect live
traffic conditions & send data
over network for analysis.
Analytics identify sudden
changes in traffic conditions
signalling likely traffic incidents.
Traffic flow patterns are monitored
to identify congestion, update the
traffic situational awareness picture
& alert operator.
Safer streets and neighborhoods
as well as Improved road safety provides
expertise on & branding for CISCO Smart City.
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21. 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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30. Compliance Impact & Needs
30
● Console Access
● Logging and Syslog
● Terminal Access
● User Passwords
● AAA
● AAA Accounting - Commands
● AAA Authentication - Login
● 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.
● 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.
33. 33
Process Structure
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.”
34. IT Governance
34
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
39. Smart City Strengths
Network Infrastructure
Global Outreach
Robust financial results
Weaknesses
Global Economy
Disruptive technology trends
Decline in traditional business
(storage devices)
Opportunities
Develop new business lines
Expand partner network
Consulting portfolio
SO Strategies
Partner with developing economies
Invest in emerging technology
WO Strategies
In-house pilot projects
Acquire emerging firms
Enhance in-house cloud
storage/solutions
Threats
Data Governance Policies
Cyber attacks
Disruption of Service
ST Strategies
Work with government agencies to
develop policies
Hire best talent + advance training to
counter cyber attacks
WT Strategies
Develop agile framework to adopt
latest technologies
Internal technology audit to manage
controls/defenses
Super SWOT
39
41. Porter’s 5 forces
Industry
Rivals
Buyers
Substitutes
SecuritySuppliers
New
Entrants
Threat: Medium
Threat: Low Threat: Medium
Threat: High
Threat: High
Threat: Medium
High Capital Investment
Technology Expertise
Geographic Limit
High cost of services
Laggard cities
Lack of digital infrastructure
Upgraded sensor network
Lack of trusted partners
Limited services
Enormous private/public data
Hacktivists
Data sharing and utilization
Drivers of smart city
Supplier-chain monopoly
High cost of equipment
Supplier poaching
Industry growth rate
Size of competitors
Exit barriers
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42. Smart Cities – IT Strategy
IT
Factors AS-IS TO- BE
People
Connections to the Internet via :
Devices – smartphones, tablets or PC’s
Social Networks – Facebook, Twitter, LinkedIn or
Pinterest
Crime reporting via Social networks, alerts or
manual reporting
Connections to the Internet will be dynamic with creative use
of technology
Gartner: People will be nodes that transmit information.
Body sensors, smart apps, live reporting and monitoring via
smart cities, homes and workspace.
Smart sensing of potential target zones and hot targets
Data
Use of data from various sources can be
transferred to a platform such as IoT for
processing or analysis
Smart evaluation of real time data is limited to
response time from IoT servers
Data and analytics need clean data to show
insights or decision supporting analysis
Smart cities will collect, transmit, analyze data on the go and
drive insights into reducing crime
Connected things in smart cities will open up “Device Talk” to
combine data and drive real-time insights
Faster decision making with smart information will allow for
advanced tactical responses from law agencies to prevent,
control or mitigate situations
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43. IT
Factors AS-IS TO- BE
Things
Makes up of sensors, consumer devices or assets
that communicate with the internet
Smart data is not context driven
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
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
Digital cities have crime reporting processes that
are dependant on human initiation
Safety concerns, governance processes and lack
of support from law enforcement for victims
Processes do not maximize the potential of smart
data or highly specialized devices ( FAA
Unmanned Aircraft Regulations)
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.
Smart Cities – IT Strategy
43
45. 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.
45
57. Business Model‘Tomorrow starts here’
Improve safety in the
cities
Citizens empowerment
Avoid waste of energy
Better traffic
management
Attract new people in
cities
Beneficial returns on
city tax and commerce
Real-time data analytics
BMC Software
CA Technologies
Citrix
Dimension Data
Hitachi Data Systems
(HDS)
IBM
Microsoft
Oracle
Red Hat
SAP
VCE
VMware
Accenture Ltd
Cap Gemini
AT&T ...
Network connection &
access
Smart City Solution
Develop infrastructure
Operation
Research & Dev.
Data Management
Marketing
Consulting like
Dedicated teams
Co-creation
Multi-products sales
Websites
Mobile Apps
Social Media
Global Events Platform
HelpLine
Big cities (>250k inhab.)
Public Sector
City innovation dept.
Private firm
Staff
IT infrastructure
Intellectual properties
Backup equipment
Brand/Culture
Local Company
Global Outreach
Consulting, Auditing, Ads, Data Analytics, Gain Competitive
Advantage, Sell data insights
Expertise to gain trust => so more customers,
Sales Solutions, Software, H/W, Networking services,
Subscription for extra services, Renting material
Cost of sales for products, Cost of sales for services, Operating
expenses, Marketing expenses, Maintenance
57
58. 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
58
59. 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
59
61. 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
61
62. Marketing Mix Analysis
PRODUCT
Smart City Solution
Improve Safety &
Energy
consumption
Experience
Technology
platform
Network
PRICE
Big project with
consequent ROI
No big differences
in pricing between
competitors
PLACE
Multi- channel
Internet
Mobile App
Website
Wholesale
Cities meeting
PROMOTION
Use sales forces to
convince cities
Create events to
promote these solutions
Advertising
Recommendation
Show results from
previous projects
PEOPLE
Dedicated Team
Management
R&D
Customer
Service
Employees
PROCESS
Customer focus
IT Development
Installation
Service delivery
Configuration
Training
Testing
PHYSICAL
EVIDENCE
Previous smart city
implemented
Previous project
Online experience
Sales
Buzz
62
63. 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
63
65. Customer Satisfaction and Loyalty
Customer satisfaction:
● Set customer expectation early
● Build trust
● Gain experience and reputation in the
market
● Make interactive surveys & Use
social media analytics to identify
improvement areas
● Focus on customer experience
● Build customer loyalty
Customer loyalty:
● Reward customers
● Create loyalty program
● Follow up
● Have dedicated team
● Personalized services
65
67. 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
5% of the population
$11.2M
15% of the population
$18.6M
25% of the population
Energy saving $2.6M $2.6M $2.6M
TOTAL (per year) $10.3M $21.8M $33.2M
TOTAL
(over 3 years)
$65.3M
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68. 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
68
70. 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.
70
73. 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
73
74. 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
74
75. Outsourcing
What?
o Operation
• Construction
▪ Infrastructure
▪ Command center
• Equipment
▪ Smart light
▪ Cable
o Maintenance
Who?
Choose trusted and local partners to
avoid issues like:
• Weak infrastructure
• Security issues
• Delay in the project
• Problem while doing
maintenance
Strategy: Outsourcing for operation efficiency
75
77. Formulating Implementation Strategy
People Process Technology
“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
Prioritize
Goals
Project Scope
and Phase
Project
Boundaries &
Timelines
Key Deliverables
Project
Owner and
Stakeholders
Conduct Feasibility Study +
What are others doing? Lessons Learnt. Collaborate …
77
78. Implementation Strategy
People Process Technology
Project Scope
and Phase
Project
Boundaries &
Timelines
Key Deliverables
Project
Owner and
Stakeholders
Current
Stakeholders of
Citizen Services –
Crime Monitoring.
interface with cities
like Boston with real-
time crime
monitoring
ASIS – TOBE with
high-level
requirements.
Skills, Partners,
Interaction with
current
infrastructure,
Cybersecurity
Who is not
impacted? What is
not included -
Criminal Court
Processing.
Timelines
Constraints
Timelines , Pilot by
2016
License Fee , SLA,
Key Players
Key Skills, Training,
Coordination
Customer care.
metrics, Balanced
Scorecard
Application, Metrics,
Data constraints,
Phased deliverable ,
Data Standards &
Repository,
Standardized
Processes
Data quality,
Platform , Metrics,
Monitoring
Dashboard* –
*Inspired Smart
London Vision.
Initial support and
Testing availability
Funding , Metrics
Funding, Metrics,
Feedback
Funding, Metrics,
Feedback
78
79. Implementation Strategy – Development
Collaborate &
Feedback
Analysis
and
Document
Analysis of
Alternatives
Design with
focus on
Innovation
&
Standardization
Develop
Test
Implement
(Roll Out)
Waterfall
AgileIntegratedStrategy
79
80. Implementation Plan – Deployment
With SDLC , Gantt Chart
for Deployment, Change
Management and Training
80
81. Implementation Strategy Incorporate feedback
Analysis and
Document
Analysis of
Alternatives
Design Develop Test Implement
(Roll Out)
Analysis and
Document
Analysis of
Alternatives
Design Develop Test Implement
(Roll Out)
Analysis and
Document
Analysis of
Alternatives
Design Develop Test Implement
(Roll Out)
Iteration 1
Iteration 2
Iteration 3
81
86. 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
86
Metrics - ISO 37120 stated Benefits
87. Metrics
Traditional
1. Project Metrics
2. Enterprise Risk Metrics
3. IT Risk and Compliance Metrics
4. City Performance (ISO 371202014)
• Financial management
• Human capital management
• Education etc.
87
New
1. Social networking and Microblogging
2. Lessons Learnt Processes and Approaches
3. Knowledge Management - Wikis
4. Data Quality metrics
5. Process Standardization and Improvement
6. IT – Process, Data, Platform, Things
7. Innovation
8. Product development
9. Sales and marketing
10. Supply chain management
93. Project Metrics
Tactical
Measure
Question Answered Sample Indicator
Time How are we doing against
the schedule?
Schedule Performance Index (SPI) = Earned Value ÷ Planned Value
Cost How are we doing against
the budget?
Cost Performance Index (CPI) = Earned Value ÷ Actual Cost
Resources Are we within anticipated
limits of staff-hours spent?
Amount of hours overspent per software iteration
Scope Have the scope changes
been more than expected?
Number of Change Requests
Quality Are the quality problems
being fixed?
Number of defects fixed per user acceptance test
Action Items Are we keeping up with our
action item list?
Number of action items behind schedule for resolution
93
97. 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%
97
100. 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.
100
101. 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
Energy
Saving /
Visibility
Connectivity
Reduction in Response Time by Officials
Crime Recorded - Criminals off Street
Better Personnel Allocation + Reduction in Patrol
Costs
24 X 7 Monitoring of High Risk Areas and Priority
area like schools.
Reduction in Crime
Rate
Infrastructure for
Smart Connected
City
Smarter, Safer &
Energy Savvy
Community
101
Energy Saving
102. 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.
102