6 inconvenient truths about Smart Cities

(When cities forget about people: La Defense, Paris, photographed by Phil Beard)

(I recently took the difficult decision to resign from IBM after nearly 20 years to become IT Director for Smart Data and Technology for Amey, one of the largest infrastructure and services companies in the UK, and a subsidiary of the Ferrovial Group. It’s a really exciting opportunity for me to build a team to create new Smart City services and infrastructures. If you’d like to work in the Smart Cities field, please have a look at the roles I’m hiring for. I’ll be continuing to write the Urban Technologist, and this seemed a good point to share my view of the current state of the Smart Cities movement.)

The last year has shown a huge acceleration of interest and action in the Smart Cities market – in the UK, and around the world. What has long been a topic of interest to technology companies, academics, urban designers and local authorities was covered extensively by mainstream media organisation such as the BBC, the Independent newspaper, New Statesman magazine and marketing magazine The Drum.

But what progress has been made implementing Smart Cities ideas?

In the UK, many local authorities have implemented Open Data portals, usually using Open Source platforms such as CKAN and investing a few £10,000s of resources. These are important first steps for building the ecosystems to share and build new service models using data. Some cities, notably Glasgow and Milton Keynes, have been successful deploying more sophisticated schemes supported by research and innovation grants – though as I pointed out last year, exciting as these initiatives are, research and innovation funds will not scale to support every city in the country.

Further afield, local authorities in Europe, the United States and Asia have constructed more substantial, multi-million Euro / Dollar business cases to invest their own funds in platforms that combine static open data with realtime data from sensors and infrastructure, and which use social media and smartphones to improve engagement between citizens, communities, businesses and both public- and private-sector service providers. The Center for Data Innovation recently wrote a nice summary of two reports explaining the financing vehicles that these cities are using.

This has not happened in the UK yet to the same extent. The highly centralised nature of public sector spending means that cities here have not yet been able to construct such ambitious business cases – Centre for Cities’ report “Outlook for Cities 2014” highlighted this as a general barrier to the UK’s cities carrying out initiatives to improve themselves, and reported that UK cities have autonomy over only about 17% of their funding as compared to an average of 55% across countries represented by the OECD.

As more city deals are signed and the city devolution agenda progresses, this will start to change – but I think that will still take a long time to happen.

(The London Underground is just one example of a transport operator using technology to help it operate more efficiently, safely and effectively)

Where similar technology platforms and channels of engagement are nevertheless starting to appear in the UK is through business cases based on efficiencies and increased customer satisfaction for private sector organisations that offer services such as transportation and asset management to cities, citizens and local authorities.

This approach means there’s even more of a need for collaboration between stakeholders in local ecosystems in order to establish and express common objectives – such as resilience, economic growth and social mobility – which can then guide the outcomes of those smart services through policy tools such as procurement practises and planning frameworks. Recent recommendations from the British Standards Institute on the adaptation of city planning policy to enable the Smart City agenda have highlighted the need for such collaboration.

As a consequence of this increased activity, more and more people and organisations of every type are becoming interested in Smart Cities – from oil companies to car manufacturers to politicians. This broadening of interest led to some extraordinary personal experiences for me last year, which included discussing Smart Cities with ex-US Vice President Al Gore (whose investment company Generation IM explores opportunities to invest in assets, technologies and developments that promote sustainability) and very briefly with the UK’s Princess Anne, a supporter of a leadership training scheme that will focus on Smart Cities this year.

But to be honest, I still don’t think we have really understood what a “Smart City” is; why it’s one of the most important concepts of our time; or how we can turn the concept into reality broadly and at scale.

I’ll explore six “inconvenient truths” in this article to describe why I think that’s the case; and what we can do about it:

  1. The “Smart City” isn’t a technology concept; it’s the political challenge of adapting one of the most powerful economic and social forces of our time to the needs of the places where most of us live and work.
  2. Cities won’t get smart if their leaders aren’t involved.
  3. We can’t leave Smart Cities to the market, we need the courage to shape the market.
  4. Smart cities aren’t top down or bottom up. They’re both.
  5. We need to tell honest stories.
  6. No-one will do this for us – we have to act for ourselves.

1. The “Smart City” isn’t a technology concept; it’s the political challenge of adapting one of the most powerful economic and social forces of our time to the needs of the places where most of us live and work

(Photograph of Macau in the evening by Michael Jenkin illustrating some the great complexity of cities: economic growth, social inequality and pollution)

One topic that’s endlessly revisited as more and more people encounter and consider the idea of a Smart City is just how we define that idea. The best definition I thought I had developed is this, updated slightly from the article “7 Steps to a Smarter City“:

A Smart City systematically creates and encourages innovations in city systems that are enabled by technology; that change the relationships between the creation of economic and social value and the consumption of resources; and that contribute to achieving a vision and clear objectives that are supported by a broad and active collaboration amongst city stakeholders.

But such definitions are contentious. Most obviously there’s the basic issue of whether “smart” implies a central role for digital technology – every technology company takes this approach, of course – or whether it’s simply about being more creative in the way that we manipulate the resources around us to achieve the outcomes we desire, whether that involves digital technology or not.

More broadly, a “city” is such a terrifically broad, complex and multi-disciplinary entity – and one whose behaviour is the aggregate of the millions of individual behaviours of its inhabitants, both enabled and constrained by the environment they experience – that it’s pretty much impossible to create any concise definition without missing out something important.

And of course those who live or work in towns and rural areas raise the challenge that limiting the discussion to “cities” omits important stakeholders from discussions about our future – as do those concerned with the national infrastructures that are not located wholly in cities, but without which neither cities nor any other habitations could survive as they do today.

I don’t think we’ll ever achieve a formal, functional definition of a “Smart City” that everyone will agree to. Much as the popularity of the term “Web 2.0” between (roughly) 2003 and 2010 marked the period in time when interest in the internet re-emerged following the “dot com crash“, rather than defining a specific architecture or group of technologies, I think our interest in “Smart Cities” is best understood as the consequence of a period in history in which a large number of people became aware of – and convinced by – a set of inter-related trends:

In this context, it’s less useful to attempt to precisely define the concept of a smart city, and more important to encourage and enable each of us – every community, city, government and organisation – to develop our own understanding of the changes needed to overcome the challenges and take the opportunities before us, and of the rapidly evolving role of technology in doing so.

Why is it so important that we do that?

In their report “Cities Outlook 1901“, Centre for Cities explored the previous century of urban development in the UK, examining why at various times some cities thrived and some did not. They concluded that the single most important influence on the success of cities was their ability to provide their citizens with the right skills and opportunities to find employment, as the skills required in the economy changed as technology evolved.

The challenges faced by cities and their residents in this century will be unlike any we have faced before; and technology is changing more quickly, and becoming more powerful, than it ever has before. Creating “Smart Cities” involves taking the right political, economic, social and engineering approaches to meeting those challenges.

Cities that do so will be successful. Cities that don’t, won’t be. That is the digital divide of the 21st Century, and for everyone’s sake, I hope we are all on the right side of it.

2. Cities won’t get smart if their leaders aren’t involved

(The Sunderland Software Centre, a multi-£million new technology startup incubation facility in Sunderland’s city centre. The Centre is supported by a unique programme of events and mentoring delivered by IBM’s Academy of Technology, and arising from Sunderland’s Smart City strategy)

Let me tell a short tale of two cities and their Smart transformations.

For a long time I’ve written occasional articles on this blog about Sunderland, a city whose leaders, people and social entrepreneurs have inspired me. Sunderland is one of the very few cities in the UK who have spent significant sums of their own money on Smart City projects and supporting technologies, justified by well-constructed business cases. They have publicised investments of well over £10 million, most recently including their visionary “City Intelligence Hub” initiative.

The seeds of the Intelligence Hub idea were apparent when I first worked with the Council, as can be seen from an article written at the time by the Council’s Chief Executive, Dave Smith, for the Guardian’s Local Government Network Blog, explaining why data and Open Data are crucial to the future of effective, transparent public services.

It is no coincidence at all that one of the cities that has been boldest in investing in technology to support its economic, social and environmental objectives has a Chief Executive who shows belief, leadership and engagement in the ideas of Smart Cities.

Milton Keynes have approached their Smart City agenda in a different way. Rather than making significant investments themselves to procure solutions, they have succeeded in attracting enormous investments from technology companies, universities and innovation bodies to develop and test new solutions in the city.

It is similarly no coincidence that – like Bristol, London and Glasgow, to name just three more – Milton Keynes Council have senior leadership figures – initially the then Chief Executive, Dave Hill, followed by Director of Strategy, Geoff Snelson – who regularly attend Smart Cities conferences and government bodies, and who actively convene Smart Cities collaborations. Their very visible presence demonstrates their belief in the importance of Smart City approaches to those organisations seeking to invest in developing them.

A strategy to transform the operations of a local authority (or any other organisation) using technology, and to re-invest the savings achieved by doing so into new services and initiatives that create economic growth, social mobility and resilience is not going to succeed without direct Executive leadership. Similarly, technology vendors, service providers and research funding bodies are most attracted to invest in developing new ideas and capabilities in cities whose most senior leaders are directly seeking them – they all need the outcomes of their investment to achieve real change, and it’s only through the leaders that such change will happen.

For the most part, where this level of leadership is not engaged I have not seen cities create business cases and issue procurements for Smart City solutions, and I have not seen them be successful winning research and innovation investments.

Finally, let’s be really clear about what most of those city leaders need to do: they need to follow Sunderland’s lead, not Milton Keynes’s.

The research and innovation funding from the EU and the UK that Milton Keynes has attracted will only fund  projects that explore for the first time the capabilities of new, technology-enabled approaches to urban challenges. Those funding sources will not support the widespread deployment of successful approaches in cities around the UK and around the world.

The vast majority of cities will only benefit from Smart Cities initiatives by financing them through robust business cases based on a combination of financial efficiency and social, environmental or economic value – as Sunderland and some cities outside the UK are already doing.

Cities won’t get smart if their leaders aren’t involved in actively driving their institutions to adopt new business cases and operating models. Those that don’t risk leaving the fate of their cities not to chance; but to “the market”.

3. We can’t leave Smart Cities to the market, we need the courage to shape the market

(Photograph by Martin Deutsche of plans to redevelop Queen Elizabeth Park, site of the 2012 London Olympics. The London Legacy Development’s intention, in support of the Smart London Plan, is “for the Park to become one of the world’s leading digital environments, providing a unique opportunity to showcase how digital technology enhances urban living. The aim is to use the Park as a testing ground for the use of new digital technology in transport systems and energy services.”)

As I wrote in my last article on this blog, as the price of digital technologies such as smartphones, sensors, analytics, open source software and cloud platforms reduces rapidly, market dynamics will drive their aggressive adoption to make construction, infrastructure and city services more efficient, and hence make their providers more competitive.

But those market dynamics do not guarantee that we will get everything we want for the future of our cities: efficiency and resilience are not the same as health, happiness and opportunity for every citizen.

If we are to achieve those objectives, then we need the right policy environment – at national and local level – to augment the business case for efficient, resilient “smart city” infrastructures to ensure that they are deployed in a way that makes them open to access and adaptation by ordinary people, businesses and communities; and so that they create the conditions and environment in which vibrant, fair digital cities grow from the successful innovations of their citizens, communities and businesses in the information economy.

In far too many discussions of Smart Cities I hear the argument that we can’t invest in these ideas because we lack the “normalised evidence base” that proves their benefits. I think that’s the wrong view. There are more than enough qualitative examples and stories that demonstrate that these ideas have real value and can make lives better. If we insist on moving no further until there’s a deeper, broader corpus of quantified evidence, then there’ll be no projects to deliver the evidence – a chicken and egg problem.

Writing in “The Plundered Planet”, the economist Paul Collier asserts that any proposed infrastructure of reasonable novelty and significant scale is effectively so unique – especially when considered in its geographic, political, social and economic context – that an accurate cost/benefit case simply cannot be constructed in advance based on comparable prior examples, because those examples don’t – and never will – exist.

Instead we need policy legislation to recognise the importance of digital infrastructure for cities so that it becomes a “given” in any public service or infrastructure business case, not something that has to be individually justified.

This is not a new idea. For example, the Economist magazine wrote recently about the efforts involved in distributing the benefits of the industrial revolution to society at large rather than solely to business owners and the professional classes.

More specifically to cities, in her seminal 1961 work “The Death and Life of Great American Cities“, Jane Jacobs wrote that:

“Private investment shapes cities, but social ideas (and laws) shape private investment. First comes the image of what we want, then the machinery is adapted to turn out that image. The financial machinery has been adjusted to create anti-city images because, and only because, we as a society thought this would be good for us. If and when we think that lively, diversified city, capable of continual, close- grained improvement and change, is desirable, then we will adjust the financial machinery to get that.”

The “anti-city images” Jacobs was referring to were the vast urban highways built over the last half century to enable the levels of road traffic thought to be vital to economic growth. Since Jacobs’ time, a growing chorus of urbanists from Bogota’s ex-Mayor Enrique Penalosa to town planner Jeff Speck, architect Jan Gehl and London’s current Mayor Boris Johnson has criticised those infrastructures for the great harm they cause to human life – they create noise, pollution, a physical barrier to walking through our cities, and too often they injure or kill us.

Just as Jacobs reminded us to focus on the nature of individual human life in order to understand how cities should be built, Dan Hill of the Future Cities Catapult wrote as long ago as 2008 on the need to understand similar subtleties in the application of digital technology to cities.

Fifty years after she wrote, we should follow Dan’s example and take Jane Jacobs’ advice.

4. Smart cities aren’t top down or bottom up. They’re both.

(The SMS for Life project uses the cheap and widely used SMS infrastructure – very much the product of “top-down” investment – to create a dynamic, collaborative supply chain for medicines between pharmacies in Africa – a “bottom-up” innovation. Photo by Novartis AG)

In case it wasn’t really clear last time I wrote about it (or the time before that), I am utterly fed up with the unconstructive argument about whether cities are best served by “top down” or “bottom up” thinking.

It’s perfectly obvious that we need both: the “bottom up” creativity through which everyone seeks to create a better life for themselves, their family, their business and their community from the resources available to them; and the top-down policies and planning that – when they work best – seek to distribute resources fairly so that everyone has the opportunity to innovate successfully.

It’s only by creating harmony between these two approaches that we will shape the market to create the cities we want and need.

Over the last few years I’ve been inspired by extraordinary thinkers from many disciplines who have tackled the need for this balance. Some of them are creating new ideas now; others created amazing ideas years or decades ago that are nevertheless imperative today. All of them are worth reading and learning from:

  • The economist E F Schumacher, who identified that investment in the distribution and accessibility of “appropriate technologies” was the best way to stimulate and support development in a way that gave rise to the broadest possible opportunities for people to be successful.
  • Andrew Zolli, head of the philanthropic PopTech foundation, who describes the inspiring innovators who synthesise top-down and bottom-up approaches to achieve phenomenal societal changes as “translational leaders” – people with the ability to engage with both small-scale, informal innovation in communities and large-scale, formal institutions with resources.
  • Jan Gehl who inspired the “human scale cities” movement by relating the scale of city structures –  from pavements to housing blocks to skyscrapers – to the human senses, and the nature of our lives and movement.
  • And, of course, Jane Jacobs, whose book “The Death and Life of Great American Cities” was the first written in the context of modern society and cities to point out that cities, however vast their physical size and population, can only ever be understood by considering the banal minutiae of the daily lives of ordinary people like you and I – why we walk along this street or that; how well we know our neighbours; how far it is to walk to the nearest school, shop or park; and whether we and our families feel happy and safe.

5. We need to tell honest stories

(Photograph by Meshed Media of Birmingham’s Social Media Cafe, where individuals from every part of the city who have connected online meet face-to-face to discuss their shared interest in social media.)

Any “smart city” initiative that successfully uses digital technology to create a financially sustainable social, economic or environmental improvement, in a particular physical place and on behalf of a particular community, must draw together skills from a wide variety of disciplines such as architecture, economics, social science, psychology and technology. Experts from these disciplines use a vast and confusing array of language and terminology; and all of us are frequently guilty of focussing on the concerns of our discipline, rather than communicating the benefits of our work in plain language.

The leaders of city institutions and businesses, who we are asking to take the courageous and forward-looking decisions to invest in our ideas, are understandably not familiar with this torrent of technical terminology, which can easily appear to be (and too often is) jargon; and new ideas that appear to be presented in jargon are unlikely to be trusted.

Simon Giles of Accenture was quoted in an article on UBM’s Future Cities site as saying that the Smart Cities industry has not done a good enough job of selling the benefits of its ideas to a wide audience. Simon is a very smart guy, and I think that’s a challenge we need to face up to, and start to tell better stories about the differences Smart Cities will make to everyday lives.

In the Community Lover’s Guide to Birmingham, for example, Nick Booth describes the way his volunteer-led social media surgeries helped the Central Birmingham Neighbourhood Forum, Brandwood End Cemetery and Jubilee Debt Campaign to benefit from technology.

Another Birmingham initiative, the Northfield Ecocentre, crowdfunded £10,000 to support their “Urban Harvest” project. The funds helped the Ecocentre pick unwanted fruit from trees in domestic gardens in Birmingham and distribute it between volunteers, children’s centres, food bank customers and organisations promoting healthy eating; and to make some of it into jams, pickles and chutneys to raise money so that in future years the initiative can become self-sustaining.

In the village of Chale on the Isle of Wight, a community not served by the national gas power network and with significant levels of fuel poverty, my IBM colleague Andy Stanford-Clark has helped an initiative not only to deploy solar panels and smart meters to generate energy and measure its use by each household; but to co-design with residents how they will use that technology, so that the whole community feels a sense of ownership and inclusion in the initiative. The project has resulted in a significant drop in rent arrears as residents use the technology to reduce their utility bills, in some cases by up to 50 percent. Less obviously, the sense of shared purpose has extended to the creation of a communal allotment area in the village and a successful campaign to halve bus fares to nearby towns.

There are countless other examples. Play Fitnessgamify” exercise to persuade children to get fit, and work very hard to ensure that their products are accessible to children in communities of any level of wealth. Casserole Club use social media to introduce people who can’t cook for themselves to people who are prepared to volunteer to cook for others. The West Midlands Collaborative Commerce Marketplace uses analytics technology to help it’s 10,000 member businesses work together to win more than £4billion in new contracts each year. … and so on.

None of these initiatives are purely to do with technology. But they all use technologies that simply were not available and accessible as recently as a few years ago to achieve outcomes that are important to cities and communities. By understanding how the potential of technology was apparent to the stakeholders in such initiatives, why it was affordable and accessible to them, and how they acquired the skills to exploit it, we can learn how to design Smart Cities in a way that encourages widespread grass-roots, localised innovation.

It’s vital that these stories are honest and grounded in reality. London School of Economics Professor Adam Greenfield rightly criticised technology companies that have overstated (and misunderstood) the potential benefits of Smart Cities ideas by describing “autonomous, intelligently functioning IT systems that will have perfect knowledge of users’ habits”. No-one trusts such hyperbole, and it undermines our efforts to communicate sensibly the very real difference that sympathetically applied technology can make to real lives, businesses, communities and places.
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6. No-one will do this for us – we have to act for ourselves

Harborne Food School

(The Harborne Food School, started by Shaleen Meelu in 2014, as a community business initiative to promote healthy, sustainable approaches to food)

No single person or organisation can shape the Smart Cities market so that it delivers the cities that we need. Local governments have the ethics of civic duty and care but lack the expertise in financing and business model innovation to convert existing spending schemes into the outcomes they desire. Private sector corporations as institutions are literally amoral and strongly incentivised by the financial markets to maximise profits. Many social enterprises are enormously admirable attempts to fuse these two models, but often lack the resources and ability to scale.

Ultimately, though, all of these organisations are staffed and run by people like you and I; and we can choose to influence their behaviour. Hence my new employer Amey measures itself against a balanced scorecard that measures social, environmental and wellbeing performance in addition to financial profits; and my previous employer IBM has implemented a re-use and recycling system so sophisticated and effective that only 0.3% of the resources and assets that reach the end of their initial useful life are disposed of in landfill or by incineration: the vast majority are re-used, have their components re-manufactured or materials recycled.

Most of us won’t ever be in a position to determine the reporting model or approach to recycling of corporations as large as Amey or IBM. But all of us make choices every day about the products we buy, the organisations we work for, the politicians we vote for, the blog articles we read, share and write and the activities we prioritise our resources on.

Those choices have real effects, and digital technology gives us all the opportunity for our choices to have more impact than ever before. This blog, which costs me nothing to operate other than the time it takes me to write articles, now reaches thousands of readers in over 150 counties. Air BnB took 2 years to accumulate the same number of rentable rooms that it took the Hilton Hotel chain 50 years to build.

It has never been easier to express an opinion widely or create a new way of doing things. That’s exactly what Shaleen Meelu did when she started the Harborne Food School to promote healthier, more sustainable approaches to food, with the support of Birmingham’s Smart City community. It’s an opportunity all of us should seize; and it’s absolutely the best opportunity we have to create better cities and a better world for ourselves.

From concrete to telepathy: how to build future cities as if people mattered

(An infographic depicting realtime data describing Dublin - the waiting time at road junctions; the location of buses; the number of free parking spaces and bicycles available to hire; and sentiments expressed about the city through social meida)

(An infographic depicting realtime data describing Dublin – the waiting time at road junctions; the location of buses; the number of free parking spaces and bicycles available to hire; and sentiments expressed about the city through social media)

(I was honoured to be asked to speak at TEDxBrum in my home city of Birmingham this weekend. The theme of the event was “DIY” – “the method of building, modifying or repairing something without the aid of experts or professionals”. In other words, how Birmingham’s people, communities and businesses can make their home a better place. This is a rough transcript of my talk).

What might I, a middle-aged, white man paid by a multi-national corporation to be an expert in cities and technology, have to say to Europe’s youngest city, and one of its most ethnically and nationally diverse, about how it should re-create itself “without the aid of experts or professionals”?

Perhaps I could try to claim that I can offer the perspective of one of the world’s earliest “digital natives”. In 1980, at the age of ten, my father bought me one of the world’s first personal computers, a Tandy TRS 80, and taught me how to programme it using “machine code“.

But about two years ago, whilst walking through London to give a talk at a networking event, I was reminded of just how much the world has changed since my childhood.

I found myself walking along Wardour St. in Soho, just off Oxford St., and past a small alley called St. Anne’s Court which brought back tremendous memories for me. In the 1980s I spent all of the money I earned washing pots in a local restaurant in Winchester to travel by train to London every weekend and visit a small shop in a basement in St. Anne’s Court.

I’ve told this story in conference speeches a few times now, perhaps to a total audience of a couple of thousand people. Only once has someone been able to answer the question:

“What was the significance of St. Anne’s Court to the music scene in the UK in the 1980s?”

Here’s the answer:

Shades Records, the shop in the basement, was the only place in the UK that sold the most extreme (and inventive) forms of “thrash metal” and “death metal“, which at the time were emerging from the ashes of punk and the “New Wave of British Heavy Metal” in the late 1970s.

G157 Richard with his Tandy

(Programming my Tandy TRS 80 in Z80 machine code nearly 35 years ago)

The process by which bands like VOIVOD, Coroner and Celtic Frost – who at the time were three 17-year-olds who practised in an old military bunker outside Zurich – managed to connect – without the internet – to the very few people around the world like me who were willing to pay money for their music feels like ancient history now. It was a world of hand-printed “fanzines”, and demo tapes painstakingly copied one at a time, ordered by mail from classified adverts in magazines like Kerrang!

Our world has been utterly transformed in the relatively short time between then and now by the phenomenal ease with which we can exchange information through the internet and social media.

The real digital natives, though, are not even those people who grew up with the internet and social media as part of their everyday world (though those people are surely about to change the world as they enter employment).

They are the very young children like my 6-year-old son, who taught himself at the age of two to use an iPad to access the information that interested him (admittedly, in the form of Thomas the Tank Engine stories on YouTube) before anyone else taught him to read or write, and who can now use programming tools like MIT’s Scratch to control computers vastly more powerful than the one I used as a child.

Their expectations of the world, and of cities like Birmingham, will be like no-one who has ever lived before.

And their ability to use technology will be matched by the phenomenal variety of data available to them to manipulate. As everything from our cars to our boilers to our fridges to our clothing is integrated with connected, digital technology, the “Internet of Things“, in which everything is connected to the internet, is emerging. As a consequence our world, and our cities, are full of data.

(The programme I helped my 6-year old son write using MIT's "Scratch" language to draw a picture of a house)

(The programme I helped my 6-year old son write using MIT’s “Scratch” language to cause a cartoon cat to draw a picture of a house)

My friend the architect Tim Stonor calls the images that we are now able to create, such as the one at the start of this article, “data porn”. The image shows data about Dublin from the Dublinked information sharing partnership: the waiting time at road junctions; the location of buses; the number of free parking spaces and bicycles available to hire; and sentiments expressed about the city through social media.

Tim’s point is that we should concentrate not on creating pretty visualisations; but on the difference we can make to cities by using this data. Through Open Data portals, social media applications, and in many other ways, it unlocks secrets about cities and communities:

  • Who are the 17 year-olds creating today’s most weird and experimental music? (Probably by collaborating digitally from three different bedroom studios on three different continents)
  • Where is the healthiest walking route to school?
  • Is there a local company nearby selling wonderful, oven-ready curries made from local recipes and fresh ingredients?
  • If I set off for work now, will a traffic jam develop to block my way before I get there?

From Dublin to Montpellier to Madrid and around the world my colleagues are helping cities to build 21st-Century infrastructures that harness this data. As technology advances, every road, electricity substation, University building, and supermarket supply chain will exploit it. The business case is easy: we can use data to find ways to operate city services, supply chains and infrastructure more efficiently, and in a way that’s less wasteful of resources and more resilient in the face of a changing climate.

Top-down thinking is not enough

But to what extent will this enormous investment in technology help the people who live and work in cities, and those who visit them, to benefit from the Information Economy that digital technology  and data is creating?

This is a vital question. The ability of digital technology to optimise and automate tasks that were once carried out by people is removing jobs that we have relied on for decades. In order for our society to be based upon a fair and productive economy, we all need to be able to benefit from the new opportunities to work and be successful that are being created by digital technology.

(Photo of Masshouse Circus, Birmingham, a concrete urban expressway that strangled the citycentre before its redevelopment in 2003, by Birmingham City Council)

(Photo of Masshouse Circus, Birmingham, a concrete urban expressway that strangled the city centre before its redevelopment in 2003, by Birmingham City Council)

Too often in the last century, we got this wrong. We used the technologies of the age – concrete, lifts, industrial machinery and cars – to build infrastructures and industries that supported our mass needs for housing, transport, employment and goods; but that literally cut through and isolated the communities that create urban life.

If we make the same mistake by thinking only about digital technology in terms of its ability to create efficiencies, then as citizens, as communities, as small businesses we won’t fully benefit from it.

In contrast, one of the authors of Birmingham’s Big City Plan, the architect Kelvin Campbell, created the concept of “massive / small“. He asked: what are the characteristics of public policy and city infrastructure that create open, adaptable cities for everyone and that thereby give rise to “massive” amounts of “small-scale” innovation?

In order to build 21st Century cities that provide the benefits of digital technology to everyone we need to find the design principles that enable the same “massive / small” innovation to emerge in the Information Economy, in order that we can all use the simple, often free, tools available to us to create our own opportunities.

There are examples we can learn from. Almere in Holland use analytics technology to plan and predict the future development of the city; but they also engage in dialogue with their citizens about the future the city wants. Montpellier in France use digital data to measure the performance of public services; but they also engage online with their citizens in a dialogue about those services and the outcomes they are trying to achieve. The Dutch Water Authority are implementing technology to monitor, automate and optimise an infrastructure on which many cities depend; but making much of the data openly available to communities, businesses, researchers and innovators to explore.

There are many issues of policy, culture, design and technology that we need to get right for this to happen, but the main objectives are clear:

  • The data from city services should be made available as Open Data and through published “Application Programming Interfaces” (APIs) so that everybody knows how they work; and can adapt them to their own individual needs.
  • The data and APIs should be made available in the form of Open Standards so that everybody can understand it; and so that the systems that we rely on can work together.
  • The data and APIs should be available to developers working on Cloud Computing platforms with Open Source software so that anyone with a great idea for a new service to offer to people or businesses can get started for free.
  • The technology systems that support the services and infrastructures we rely on should be based on Open Architectures, so that we have freedom to chose which technologies we use, and to change our minds.
  • Governments, institutions, businesses and communities should participate in an open dialogue, informed by data and enlightened by empathy, about the places we live and work in.

If local authorities and national government create planning policies, procurement practises and legislation that require that public infrastructure, property development and city services provide this openness and accessibility, then the money spent on city infrastructure and services will create cities that are open and adaptable to everyone in a digital age.

Bottom-up innovation is not enough, either

(Coders at work at the Birmingham “Smart Hack”, photographed by Sebastian Lenton)

Not everyone has access to the technology and skills to use this data, of course. But some of the people who do will create the services that others need.

I took part in my first “hackathon” in Birmingham two years ago. A group of people spent a weekend together in 2012 asking themselves: in what way should Birmingham be better? And what can we do about it? Over two days, they wrote an app, “Second Helping”, that connected information about leftover food in the professional kitchens of restaurants and catering services, to soup kitchens that give food to people who don’t have enough.

Second Helping was a great idea; but how do you turn a great idea and an app into a change in the way that food is used in a city?

Hackathons and “civic apps” are great examples of the “bottom-up” creativity that all of us use to create value – innovating with the resources around us to make a better life, run a better business, or live in a stronger community. But “bottom-up” on it’s own isn’t enough.

The result of “bottom-up” innovation at the moment is that life expectancy in the poorest parts of Birmingham is more than 10 years shorter than it is in the richest parts. In London and Glasgow, it’s more than 20 years shorter.

If you’re born in the wrong place, you’re likely to die 10 years younger than someone else born in a different part of the same city. This shocking situation arises from many, complex issues; but one conclusion that it is easy to draw is that the opportunity to innovate successfully is not the same for everyone.

So how do we increase everybody’s chances of success? We need to create the policies, institutions, culture and behaviours that join up the top-down thinking that tends to control the allocation of resources and investment, especially for infrastructure, with the needs of bottom-up innovators everywhere.

Translational co-operation

Harborne Food School

(The Harborne Food School, which will open in the New Year to offer training and events in local and sustainable food)

The Economist magazine reminded us of the importance of those questions in a recent article describing the enormous investments made in public institutions such as schools, libraries and infrastructure in the past in order to distribute the benefits of the Industrial Revolution to society at large rather than concentrate them on behalf of business owners and the professional classes.

But the institutions of the past, such as the schools which to a large degree educated the population for repetitive careers in labour-intensive factories, won’t work for us today. Our world is more complicated and requires a greater degree of localised creativity to be successful. We need institutions that are able to engage with and understand individuals; and that make their resources openly available so that each of us can use them in the way that makes most sense to us. Some public services are starting to respond to this challenge, through the “Open Public Services” agenda; and the provision of Open Data and APIs by public services and infrastructure are part of the response too.

But as Andrew Zolli describes in “Resilience: why things bounce back“, there are both institutional and cultural barriers to engagement and collaboration between city institutions and localised innovation. Zolli describes the change-makers who overcome those barriers as “translational leaders” – people with the ability to engage with both small-scale, informal innovation in communities and large-scale, formal institutions with resources.

We’re trying to apply that “translational” thinking in Birmingham through the Smart City Alliance, a collaboration between 20 city institutions, businesses and innovators. The idea is to enable conversations about challenges and opportunities in the city, between people, communities, innovators and  the organisations who have resources, from the City Council and public institutions to businesses, entrepreneurs and social enterprises. We try to put people and organisations with challenges or good ideas in touch with other people or organisations with the ability to help them.

This is how we join the “top-down” resources, policies and programmes of city institutions and big companies with the “bottom-up” innovation that creates value in local situations. A lot of the time it’s about listening to people we wouldn’t normally meet.

Partly as a consequence, we’ve continued to explore the ideas about local food that were first raised at the hackathon. Two years later, the Harborne Food School is close to opening as a social enterprise in a redeveloped building on Harborne High Street that had fallen out of use.

The school will be teaching courses that help caterers provide food from sustainable sources, that teach people how to set up and run food businesses, and that help people to adopt diets that prevent or help to manage conditions such as diabetes. The idea has changed since the “Second Helping” app was written, of course; but the spirit of innovation and local value is the same.

Cities that work like magic

So what does all this have to do with telepathy?

The innovations and changes caused by the internet over the last two decades have accelerated as it has made information easier and easier to access and exchange through the advent of technologies such as broadband, mobile devices and social media. But the usefulness of all of those technologies is limited by the tools required to control them – keyboards, mice and touchscreens.

Before long, we won’t need those tools at all.

Three years ago, scientists at the University of Berkely used computers attached to an MRI scanner to recreate moving images from the magnetic field created by the brain of a person inside the scanner watching a film on a pair of goggles. And last year, scientists at the University of Washington used similar technology to allow one of them to move the other’s arm simply by thinking about it. A less sensitive mind-reading technology is already available as a headset from Emotiv, which my colleagues in IBM’s Emerging Technologies team have used to help a paralysed person communicate by thinking directional instructions to a computer.

Telepathy is now technology, and this is just one example of the way that the boundary between our minds, bodies and digital information will disappear over the next decade. As a consequence, our cities and lives will change in ways we’ve never imagined, and some of those changes will happen surprisingly quickly.

I can’t predict what Birmingham will or should be like in the future. As a citizen, I’ll be one of the million or so people who decide that future through our choices and actions. But I can say that the technologies available to us today are the most incredible DIY tools for creating that future that we’ve ever had access to. And relatively quickly technologies like bio-technology, 3D printing and brain/computer interfaces will put even more power in our hands.

As a parent, I get engaged in my son’s exploration of these technologies and help him be digitally aware, creative and responsible. Whenever I can, I help schools, Universities, small businesses or community initiatives to use them, because I might be helping one of IBM’s best future employees or business partners; or just because they’re exciting and worth helping. And as an employee, I try to help my company take decisions that are good for our long term business because they are good for the society that the business operates in.

We can take for granted that all of us, whatever we do, will encounter more and more incredible technologies as time passes. By remembering these very simple things, and remembering them in the hundreds of choices I make every day, I hope that I’ll be using them to play my part in building a better Birmingham, and better cities and communities everywhere.

(Shades Records in St. Anne's Court in the 1980s)

(Shades Records in St. Anne’s Court in the 1980s. You can read about the role it played in the development of the UK’s music culture – and in the lives of its customers – in this article from Thrash Hits;  or this one from Every Record Tells a Story. And if you really want to find out what it was all about, try watching Celtic Frost or VOIVOD in the 1980s!)

12 simple technologies for cities that are Smart, open and fair

(Fritz Lang’s 1927 dystopian film Metropolis pictured a city that exploited futuristic technologies, but only on behalf of a minority of its citizens. Image by Breve Storia del Cinema)

Efficiency; resilience; growth; vitality. These are all characteristics that cities desire, and that are regularly cited as the objectives of Smarter City programmes and other forward-looking initiatives.

But, though it is less frequently stated, a more fundamental objective underlies all of these: fairness.

The Nobel Prize-winning economist Joseph Stiglitz has written extensively about the need to prioritise fairness as a policy and investment objective in a world that in many areas – and in many cities – is becoming more unequal. That inequality is demonstrated by the difference in life expectancy of 20 years or so that exists between the poorest and richest parts of many UK cities.

I think the Smart Cities movement will only be viewed as a success by the wider world if it contributes to redressing that imbalance.

So how do we design Smart City systems that employ technology to make cities more successful, resilient and efficient; in a way that distributes resources and creates opportunities more fairly than today?

One answer to that question is that the infrastructures and institutions of such cities should be open to citizens and businesses: accessible, understandable, adaptable and useful.

Why do we need open cities?

In the wonderful “Walkable City“, Jeff Speck describe’s the epidemiologist Richard Jackson’s stark realisation of the life-and-death significance of good urban design. Jackson was driving along a notorious 2 mile stretch of Atlanta’s 7-lane Buford highway with no pavements or junctions:

There, by the side of the road, in the ninety-five degree afternoon, he saw a woman in her seventies, struggling under the burden of two shopping bags. He tried to relate her plight to his own work as an epidemiologist. “If that poor woman had collapsed from heat stroke, we docs would have written the cause of death as heat stroke and not lack of trees and public transportation, poor urban form, and heat-island effects. If she had been killed by a truck going by the cause of death would have been “motor vehicle trauma”, and not lack of sidewalks and transit, poor urban planning and failed political leadership.”

(Pedestrian’s attempting to cross Atlanta’s notorious Buford Highway; a 7-lane road with no pavements and 2 miles between junctions and crossings. Photo by PBS)

Buford Highway is an infrastructure fit only for vehicles, not for people. It allows no safe access along or across it for the communities it passes through – it is closed to them, unless they risk their lives.

At the same time that city leaders are realising more and more that better planning is needed to create more equal cities, so it  is imperative that the digital infrastructures we deploy in cities are accessible and useful to citizens, not as dangerous to them as Buford Highway.

Unfortunately, there are already examples of city infrastructures using technologies that are poorly designed, that fail to serve the needs of  communities, or that fail in operation.

For instance, a network of CCTV cameras in Birmingham were eventually dismantled after it was revealed they had been erected to gather evidence of terrorist activities in Birmingham’s Muslim communities, rather than in support of their safety. And there have been many examples of the failure of both public sector agencies and private companies to properly safeguard the data they hold about citizens.

Market failures can result in the benefits of technology being more accessible to wealthier communities than poorer communities. For example,  private sector network providers will not deploy connectivity in areas which are insufficiently economically active for them to make a profit, and Government funding is not yet sufficient to close the gap. And community lenders, who typically offer loans at one-tenth to one-hundredth the cost of payday lenders, have so far lacked the resources to invest in the online technology that makes some payday loans so easy to take out – though this is starting to change.

One of the technology industry’s most notorious failures, the Greyhound Lines bus company’s 1993 “Trips” reservations system, made a city service – bus transport – unusable. The system was intended to make it quicker and easier for ticket agents to book customers onto Greyhound’s buses. But it was so poorly designed and operated so slowly that passengers missed their buses whilst they stood in line waiting for their tickets; were separated from their luggage; and in some cases were stranded overnight in bus terminals.

In the 21st Century, badly applied digital technology will create bad cities, just as badly designed roads and buildings did in the last century.

(The SMS for Life project uses the cheap and widely used SMS infrastructure to create a dynamic, collaborative supply chain for medicines between pharmacies in Africa. Photo by Novartis AG)

Smart Cities for the digitally disconnected

It’s possible to benefit from Smart city infrastructures without being connected to the internet or having skills in digital technology – Stockholm’s road-use charging scheme reduces congestion and pollution for everyone in the city, for example.

But the benefits of many Smart systems are dependent on being connected to the internet and having the skills to use it. From the wealth of educational material now available online (from the most sophisticated Harvard University courses to the most basic tutorials on just about any subject available on YouTube), to the increasing role of technology in high-paid careers, it’s absolutely obvious that the ability to access and use the internet and digital technologies in the future will be a crucial component of a successful life.

Smart cities won’t be fair cities if we take connectivity and skills for granted. Worldwide, fully one-third of the population has never been online; and even in as rich and advanced a country as the United Kingdom, 18% of adults – a fifth of the voting population – have never used the internet. At the risk of generalising a complex issue, many of those people will be those that Smart City services should create benefits for if they are to contribute to making cities fairer.

After legal challenges from private sector providers, the UK Government’s plan to assist cities in funding the deployment of ubiquitous broadband connectivity has been replaced by a voucher scheme that subsidises businesses connecting to existing networks. The scheme will not now directly help to improve broadband coverage in those areas that are poorly served because they are economically relatively inactive – precisely the areas that need the most help.

There’s been a lot of discussion of “net neutrality” recently – the principle that on the Internet, all traffic is equal, and that there is no way to pay for certain data to be treated preferentially. The principle is intended to ensure that the benefits of the internet are equally available to everyone.

But net neutrality is irrelevant to those who can’t access the internet at all; and the free market is already bypassing it in some ways. Network providers who control the local infrastructures that connect homes and businesses to the internet are free to charge higher prices for faster connections. Wealthy corporations and governments can bypass parts of the internet entirely with their own international cable networks through which they can route traffic between users on one continent and content on another.

Governments in emerging economies are building new cities to house their rapidly urbanising populations with ubiquitous, high-speed connectivity from the start. The Australian government is investing the profits from selling raw materials to support that construction boom in providing broadband coverage across the entire country. The least wealthy areas of European cities will be further disadvantaged compared to them unless we can find ways to invest in their digital infrastructure without contravening the European Union’s “State aid” law.

Technology as if people mattered

The UK’s Government Digital Service employ an excellent set of agile, user-centric design principles that are intended to promote the development of Smarter, digitally-enabled services that can be accessed by anyone anywhere who needs them, regardless of their level of skill with digital technology or ability to access the Internet.

The principles include: “Start with needs”; “Do the hard work to make it simple”; “Build for inclusion”; “Understand context”; and “Build digital services, not websites”.

(An electricity bill containing information provided by OPower comparing one household’s energy usage to their neighbours. Image from Grist)

A good example of following these principles and designing excellent, accessible digital services using common sense is the London Borough of Newham. By concentrating on the delivery of services through mobile telephones – which are much more widely owned than PCs and laptops – and on contexts in which a friend or family member assists the ultimate service user, Newham have achieved a remarkable shift to online services in one of London’s least affluent boroughs, home to many communities and citizens without access to broadband connectivity or traditional computers.

Similar, low-tech innovations in designing systems that people find useful can be found in some smart meter deployments.

In principle, the analytic technology in smart meters can provide insights that helps households and businesses reduce energy usage – identifying appliances that are operating inefficiently, highlighting leaks, and comparing households’ energy usage to that of their neighbours.

But most people don’t want to look at smart meter displays or consult a computer before they put the washing on or have a shower.

In one innovative project in the village of Chale, these issues were overcome by connecting analytic technology to a glow globe in the lounge – the globe simply glows red, orange or green depending on whether too much energy is being used compared to that expected for the time of day and year. A similarly effective but even more down-to-earth approach was adopted by OPower in the US who reported that they have helped households save 1.9 terawatt hours of power simply by including a report based on data from smart meters in a printed letter sent with customers’ electricity bills.

There are countless other examples. During peak traffic periods, Dublin’s “Live Drive” radio station plays a mixture of 80s pop music and traffic information derived from sophisticated analytics developed by IBM’s Smarter Cities Research team based on data from road sensors and GPS beacons in the city’s buses. And in India’s rural Karnataka region, which lacks internet infrastructure and where many workers lack literacy skills, let alone access to computers and smartphones, the benefits of online job portals have been recreated using “spoken web” technology using the existing traditional analogue telephone network.

(The inspirational Kilimo Salama scheme that uses

(The inspirational Kilimo Salama scheme that uses “appropriate technology” to make crop insurance affordable to subsistence farmers. Photo by Burness Communications)

In Kenya, Kilimo Salama has made crop insurance affordable for subsistence farmers by using remote weather monitoring to trigger payouts via Safaricom’s M-Pesa mobile payments service, rather than undertaking expensive site visits to assess claims. And the SMS for Life project in Tanzania uses the cheap and widely used SMS infrastructure to create a dynamic, collaborative supply chain for medicine between rural pharmacists.

These are all examples of what was originally described as “Intermediate Technology” by the economist Ernst Friedrich “Fritz” Schumacher in his influential work, “Small is Beautiful: Economics as if People Mattered“, and is now known as Appropriate Technology.

12 “appropriate technologies” for Smart Cities

Schumacher’s views on technology were informed by his belief that our approach to economics should be transformed “as if people mattered”. He asked:

What happens if we create economics not on the basis of maximising the production of goods and the ability to acquire and consume them – which ends up valuing automation and profit – but on the Buddhist definition of the purpose of work: “to give a man a chance to utilise and develop his faculties; to enable him to overcome his ego-centredness by joining with other people in a common task; and to bring forth the goods and services needed for a becoming existence.”

Schumacher pointed out that the most advanced technologies, to which we often look to create value and growth, are in fact only effective in the hands of those with the resources and skills required to use them- i.e. those who are already wealthy; and that by emphasising efficiency, output and profit they tend to further concentrate economic value in the hands of the wealthy – often specifically by reducing the employment of people with less advanced skills and roles.

In contrast, Schumacher felt that the most genuine “development ” of our society would occur when the most possible people were employed in a way that gave them the practical ability to earn a living ; and that also offered a level of human reward – much as Maslow’s “Hierarchy of Needs” first identifies our most basic requirements for food, water, shelter and security; but next relates the importance of family, friends and “self-actualisation” (which can crudely be described as the process of achieving things that we care about).

This led him to ask:

What is that we really require from the scientists and technologists? I should answer:

We need methods and equipment which are:

    • Cheap enough so that they are accessible to virtually everyone;
    • Suitable for small-scale application; and
    • Compatible with man’s need for creativity

(Maslow’s Hierarchy of Needs, image by Factoryjoe via Wikimedia Commons)

I can’t think of a more powerful set of tools that reflect these characteristics than the digital technologies that have emerged over the past decade, such as social media, smartphones, Cloud computing and Open Data. They provide a digital infrastructure of appropriate technologies that are accessible to everyone, but that connect with the large scale city infrastructures that support millions of urban lives; and they give citizens, communities and businesses the ability to adapt city infrastructures to their own needs.

I can think of at least 12 such technologies that are particularly important; and that fall into the categories of “Infrastructures that matter”; “Technologies for everyone”; and “The keys to the city”.

Infrastructures that matter

1.Broadband connectivity

I’ve covered the importance of broadband connectivity, and the challenges involved in providing it ubiquitously, already, so I won’t go into detail again here. But whether it’s fixed-line, mobile or wi-fi, its benefits are becoming so significant that it can’t be omitted.

2. Cloud computing

Before Cloud computing, anyone who wanted to develop a computing system for others to use had to invest up-front in an infrastructure capable of operating the service to a reasonable level of reliability. Cloud computing provides a much easier, cheaper alternative: rent a little bit of someone else’s infrastructure. And if your service becomes popular, don’t worry about carrying out complex and costly upgrades, just rent a little more.

Cloud computing has helped to democratise digital services by making it  it dramatically easier and cheaper for anyone to create and offer them.

Technologies for everyone

3. Mobile and Smart phones

In 2013, the number of cellphone subscriptions worldwide surpassed the number of people who have ever owned fixed line telephones.

In the developed world, we’re conscious of the increasing power of Smartphones; and Councils such as Newham are exploiting the fact that many people who lack the desire or resources to purchase a computer and a broadband connection possess and use relatively sophisticated Smartphones through which they access digital services and content.

But in some countries in the developing world, the real story is simply the availability of the first basic infrastructure – voice calls and SMS – that’s available to almost everyone, everywhere. According to one report, access to a basic mobile phone is more common than access to a toilet with proper drainage. In his TEDGlobal 2013 talk, Toby Shapshak described how entire business infrastructures and supply chains are being built upon SMS and similiarly “appropriate” technologies – to the extent that 4o% of Kenya’s GDP now passes through the M-Pesa mobile payments service offered by Safaricom. Banks, technology entrepreneurs, governments and others in the developed world are looking to this wave of innovation as a source of new ideas.

4. Social media

In his 2011 book “Civilization“, Niall Fergusson comments that news of the Indian Mutiny in 1857 took 46 days to reach London, travelling in effect at 3.8 miles an hour. By Jan 2009 when US Airways flight 1549 crash landed in the Hudson river, Jim Hanrahan’s message on Twitter communicated the news to the entire world four minutes later; it reached Perth, Australia at more than 170,000 miles an hour.

Social media is the tool that around a quarter of the world’s population now simply uses to stay in touch with friends and family at this incredible speed.

At a recent Mayoral debate on Smarter Cities, Ridwan Kamil, Mayor of Bandung, Indonesia, described how he has nurtured an atmosphere of civic engagement, trust and transparency by encouraging his staff to connect with the city’s 2.3 million Twitter-using citizens through social media. By encouraging citizens to report issues online and by publishing details of city spending, Mayor Kami has helped to combat corruption and improve public services. Montpellier in France is engaging with citizens through social media in a similar way, asking them to explore data about their city and suggest ways to improve it. And the ambitious control room set up in Rio de Janeiro by Mayor Eduardo Paes to help manage the city during the current World Cup uses social media not just as one of the information feeds that provides insight into what is happening in the city, but to keep citizens as well informed as possible.

The “Community Lovers Guide“, of which 60 editions have now been published across the world, contains stories of people and projects that have improved their communities. The guide is not concerned directly with technology; but many of the initiatives that it describes have used social media as a tool for engaging with stakeholders and supporters.

And we increasingly use social media to conduct business. From e-Bay to Uber, social media is being used to create “sharing economy” business models that replace traditional sales channels and supply chains with networks of peer-to-peer transactions in industries from financial services to agriculture to distribution to retail. Nearly 2 billion of us now regularly use the technologies that allow us to participate in those trading networks.

5. The touchscreen

Three years ago, I watched my then 2-year-old son teach himself how to use a touchscreen tablet to watch cartoons from around the world. He is a member of the first generation to grow up with the world’s information literally at their fingertips before they can read and write.

The simplicity of the touchscreen has already led to the adoption of tablet computers by huge numbers of people who would never have so willingly chosen to use a laptop computer and keyboard. As touchscreens and the devices that use them become cheaper and cheaper, many more people who currently don’t choose to access online content and services will do so without realising it, simply by interacting with the world around them.

We will rapidly develop even more intimate interfaces to technology. Three years ago, scientists at the University of Berkely used computers attached to an MRI scanner to recreate moving images from the magnetic field created by the brain of a person inside the scanner watching a film on a pair of goggles. And last year, scientists at the University of Washington used similar technology to allow one of them to move the other’s arm simply by thinking about it. Whilst it will take time for these technologies to become widely available – and there are certainly ethical issues concerning their use that must be addressed in the process – eventually they will make an important contribution to making information and the ability to communicate widely even more accessible than today.

6. Open Source software

Open Source software is one of the very few technologies that is free in principle to anyone with the time to understand how to use it. It is not free in the medium or long-term – most organisations that use it pay for some form of support or maintenance to be carried out on their Open Source systems. But it is free to get started, and the Open Source community is a great place to get help and advice whilst doing so.

My colleagues around the world work very hard to ensure that IBM’s technologies support open source technology, from interoperating with the MySQL database and CKAN open data portal; to donating IBM-developed technologies such as Eclipse, MQTT and Node-RED to the Open Source community; to IBM’s new “BlueMix” Cloud computing platform for developers which is built from Open Source technology and offers developers 50 pre-built services for inclusion in their Apps, many of which are open source.

Not all technology is Open Source, and there are good reasons why many technology companies large and small invest in developing products and services for cities that use proprietary software – often, simply to protect their investment. For as long as those products and services offer valuable capabilities that are not available as open source software, cities will use them.

But it is vital that city systems incorporating those technologies are nevertheless open for use by open source software, simply to make them as widely accessible as possible for people who need to adapt them to their own needs.

7. Intelligent hardware

The emergence of the internet as a platform for enabling sales, marketing and logistics over the last decade has enabled small and micro-businesses to reach markets across the world that were previously accessible only to much larger organisations with international sales and distribution networks.

More recently, the emergence and maturation of technologies such as 3D printingopen-source manufacturing and small-scale energy generation are enabling small businesses and community initiatives to succeed in new sectors by reducing the scale at which it is economically viable to carry out what were previously industrial activities – a trend recently labelled by the Economist magazine as the “Third Industrial Revolution“.

Arduino, an Open Source electronics prototyping platform, and the Raspberry Pi, a cheap and simple computer intended to simplify the process of teaching programming skills, provide very easy introductions to these technologies; and organisations such as Hub Launchpad and TechShop make it possible for entrepreneurs and small businesses to explore them in more depth.

The keys to the city

8. Open APIs 

An “API” is an “Application Programming Interface“: it is a tool that allows one computer system – such as an Open Source “app” written by an entrepreneur or social innovator – to use the information and capabilities of another computer system – such as a traffic information system for a city’s transport network.

For example, Amazon make an API available to developers that exposes all of the capabilities of Amazon Marketplace – from listing products, to changing prices to despatching goods to customers. Whilst these features are not free to use, they offer one way for businesses to create new online shops extremely quickly,  linked to a fulfilment operation to support them.

Open APIs are a tool that can make digital city infrastructures open to local innovation, and allow citizens, businesses and communities to adapt them to their own needs. For instance, Birmingham’s Droplet, a SmartPhone payment service that encourages local economic growth by making it easy to pay for goods and services from local merchants, offer a developer API to allow their fast, cheap payments system to be included in other city services.

A Smarter City infrastructure whose IT systems offer APIs to citizens, communities and businesses can be accessed and adapted by them. It is the very opposite of Atlanta’s Buford Highway.

(The UK’s Open Data Institute’s 2013 Summit. The ODI promotes open data in the UK and shares best practise internationally. Photo by the ODI)

9. Open Data

The Open Data movement champions the principle that any non-sensitive data from public services and infrastructures should be freely and openly available. Most such data is not currently available in this form – either because the organisations operating those services have yet to adopt the principle, or because the computer systems they use simply were not designed to make data available.

There are many reasons to support the idea of Open Data. McKinsey estimate its economic value to be at least $3 trillion per year, for example.

But perhaps more importantly, Open Data is a fundamental tool for democracy and transparency in a digital age. Niall Firth’s November 2013 editorial for the New Scientist magazine describes how citizens of developing nations are using open data to hold their governments to account, from basic information about election candidates to the monitoring of government spending.

The “Dublinked” information sharing partnership, in which Dublin City Council, three surrounding local authorities and  service providers to the city share information and make it available to their communities as “open data”, is a good example of the benefits that openness can bring. Dublinked now makes 3,000 datasets available to local authority analysts; to researchers from IBM Research and the National University of Ireland; and to businesses, entrepreneurs and citizens. The partnership is identifying new ways for the city’s public services and transport, energy and water systems to work; and enabling the formation of new, information-based businesses with the potential to export the solutions they develop in Dublin to cities internationally. It is putting the power of technology and of city information not only at the disposal of the city authority and its agencies, but also into the hands of communities and innovators.

10. Open Standards

Open Data and Open APIs will only be widely used and effective in cities across the world if they conform to Open Standards that mean that everyone, everywhere can use them in the same way.

In order to do something as simple as changing a lightbulb, we rely on open standards for the levels of voltage and power from our electricity supply; the physical dimensions of the socket and bulb and the characteristics of their fastenings; specifications of the bulb’s light and heat output; and the tolerance of the bulb and the fitting for the levels of moisture found in bathrooms and kitchens. Cities are much more complicated than lightbulbs; and many more standards will be required on order for us to connect to and re-configure their systems easily and reliably.

Open standards are also an important tool in avoiding city systems becoming “locked-in” to any particular supplier. By specifying common characteristics that all systems are required to demonstrate, it becomes more straightforward to exchange one supplier’s implementation for another.

Some standards that Smarter City infrastructures can use are already in place – for example, Web services and REST that specify the general ways in which computer systems interact, and the Common Alerting Protocol which is more specific to interactions between systems that monitor and control the physical world. But many others will need to be invented and encouraged to spread. The City Protocol Society is one organisation seeking to develop those new standards; and the British Standards Institute recently published the first set of national standards for Smarter Cities in the UK, including a standard for the interoperability of data between Smart City systems.

(Photo of the Brixton Pound by Charlie Waterhouse)

11. Local and virtual currencies and trading systems

Local trading systems use paper or electronic currencies that are issued and accepted within a particular place or region. They influence people and businesses to spend the money that they earn locally, thereby promoting regional economic synergies.

Examples include the Bristol Pound; the Droplet smartphone payment scheme in Birmingham; and schemes based on the bartering of goods, money, time and services, such as time banking. Some schemes combine both elements – in Switzerland, a complementary currency, the Wir , has contributed to economic stability over the last century by allowing some debt repayments to be bartered locally when they cannot be repaid in universal currency.

As these schemes develop – and in particular as they adopt technologies such as smartphones and Open APIs – they are increasingly being used as an infrastructure for Smarter City projects in domains such as transport, food supply and energy.

Smarter Cities will succeed at scale when we discover the business models that convert financial payments and investments into social, economic and environmental improvements in the places where we live and work. I can’t think of a more directly applicable tool for designing those business models than flexible, locally focussed currencies and payment infrastructures.

12. Identity stores

In order to use digital services, we have to provide personal information online. What happens to that personal information once we have finished using the service?

Social networks such as Facebook regularly cause controversy when they experiment with new ways to use the data that we freely share with them; often granting them extensive rights over that data in the process.

Our use of technologies such as social media, Smartphones and APIs creates a mass of data about us that is often retained by the operators of the services we use. Sometimes this is as a result of deliberate actions:  when we share geo-tagged photos through social media, for example. In other cases, it is incidental. The location and movement of GPS sensors in our smartphones is anonymised by our network providers and aggregated with that of others nearby who are moving similarly. It is then sold to traffic information services, so that they can sell it back to us through the satellite navigation systems in our cars to help us to avoid traffic congestion.

Organisations of all types and sizes are competing for the new markets and opportunities of the information economy that are created, in part, by this increased availability of personal information. That is simply the natural consequence of the emergence of a new resource in a competitive economy. But it is also true that as the originators of much of that information, and as the ultimate stakeholders in that economy, we should seek to establish an equitable consensus between us for how our information is used.

A different approach is being taken by organisations such as MyDex. MyDex are a Community Interest Company (CIC) who have created a platform that allows users to securely share personal information with digital service providers when they need to; but to revoke access when they have finished using the service.

Incorporation as a Community Interest Company allows MyDex:

“… to be sustainable and requires it be run for community benefit. Crucially, the CIC assets and the majority of any profits must be used for the community purposes for which Mydex is established. Its assets cannot be acquired by another party to which such restrictions do not apply.”

(From the MyDex website, http://mydex.org/about/ensuring-trust/).

As a result of both the security of their technology solution and the clarity with which personal and community interests are reflected in their business model, MyDex’s platform is now being used by a variety of public sector and community organisations to offer a personal data store to the people they support.

MyDex’s approach to creating trust in the use of personal data is not the only one, but it is a good example of a business model that explicitly addresses and prioritises the interests of the individual.

(The town plan for Edinburgh’s New Town, clearly showing the grid structure that gives rise to the adaptability that it is famous for showing for the past 250 years. Image from the JR James archive)

Smart Digital Urbanism

Architects and city planners such as Kelvin Campbell, founder of the Smart Urbanism movement and Jan Gehl, who inspired the “human-scale cities” movement have been identifying the fine-grained physical characteristics of large-scale urban environments that encourage vibrant communities and successful economies through the daily activities of people, families, communities and businesses.

A good example is provided by Edinburgh’s “New Town”, regarded as a masterpiece of urban planning that has proved adaptable and successful through the economic and social changes of the past 250 years. It has frequent road crossings, junctions and side-streets that slow down traffic; provides stopping opportunities for traffic and crossing opportunities for people, encouraging businesses to thrive; and has a mixture of small and large premises for a variety of businesses to occupy.

Smarter cities will not be fairer cities unless we identify and employ technologies for building them that create similar openness and accessibility for digital services and information. That’s precisely what I think Open Data, mobile phones, virtual currencies and the other technologies I’ve described in this article can achieve.

I can’t think of a more exciting idea than using them to address the economic, social and environmental challenge of our time and to build better cities and communities for tomorrow.

Six ways to design humanity and localism into Smart Cities

(Birmingham’s Social Media Cafe, where individuals from every part of the city share their experience using social media to promote their businesses and community initiatives. Photograph by Meshed Media)

The Smart Cities movement is sometimes criticised for appearing to focus mainly on the application of technology to large-scale city infrastructures such as smart energy grids and intelligent transportation.

It’s certainly vital that we manage and operate city services and infrastructure as intelligently as possible – there’s no other way to deal with the rapid urbanisation taking place in emerging economies; or the increasing demand for services such as health and social care in the developed world whilst city budgets are shrinking dramatically; and the need for improved resilience in the face of climate change everywhere.

But to focus too much on this aspect of Smart Cities and to overlook the social needs of cities and communities risks forgetting what the full purpose of cities is: to enable a huge number of individual citizens to live not just safe, but rewarding lives with their families.

Maslow’s Hierarchy of Needs identifies our most basic requirements to be food, water, shelter and security. The purpose of many city infrastructures is to answer those needs, either directly (buildings, utility infrastructures and food supply chains) or indirectly (the transport systems that support us and the businesses that we work for).

Important as those needs are, though – particularly to the billions of people in the world for whom they are not reliably met – life would be dull and unrewarding if they were all that we aspired to.

Maslow’s hierarchy next relates the importance of family, friends and “self-actualisation” (which can crudely be described as the process of achieving things that we care about). These are the more elusive qualities that it’s harder to design cities to provide. But unless cities provide them, they will not be successful. At best they will be dull, unrewarding places to live and work, and will see their populations fall as those can migrate elsewhere. At worst, they will create poverty, poor health and ultimately short, unrewarding lives.

A Smart City should not only be efficient, resilient and sustainable; it should improve all of these qualities of life for its citizens.

So how do we design and engineer them to do that?

(Maslow’s Hierarchy of Needs, image by Factoryjoe via Wikimedia Commons)

Tales of the Smart City

Stories about the people whose lives and businesses have been made better by technology tell us how we might answer that question.

In the Community Lover’s Guide to Birmingham, for example, Nick Booth describes the way his volunteer-led social media surgeries helped the Central Birmingham Neighbourhood Forum, Brandwood End Cemetery and Jubilee Debt Campaign to benefit from technology.

Another Birmingham initiative, the Northfield Ecocentre, crowdfunded £10,000 to support their “Urban Harvest” project. The funds helped the Ecocentre pick unwanted fruit from trees in domestic gardens in Birmingham and distribute it between volunteers, children’s centres, food bank customers and organisations promoting healthy eating; and to make some of it into jams, pickles and chutneys to raise money so that in future years the initiative can become self-sustaining.

In the village of Chale on the Isle of Wight, a community not served by the national gas power network and with significant levels of fuel poverty, my colleague Andy Stanford-Clark has helped an initiative not only to deploy smart meters to measure the energy use of each household; but to co-design with residents how they will use that technology, so that the whole community feels a sense of ownership and inclusion in the initiative. The project has resulted in a significant drop in rent arrears as residents use the technology to reduce their utility bills, in some cases by up to 50 percent. Less obviously, the sense of shared purpose has extended to the creation of a communal allotment area in the village and a successful compaign to halve bus fares in the area.

There are countless other examples. Play Fitness “gamify” exercise to persuade children to get fit, and work very hard to ensure that their products are accessible to children in communities of any level of wealth.  Casserole Club use social media to introduce people who can’t cook for themselves to people who are prepared to volunteer to cook for others. The West Midlands Collaborative Commerce Marketplace uses analytics technology to help it’s 10,000 member businesses win more than £4billion in new contracts each year. … and so on.

None of these initiatives are purely to do with technology. But they all use technologies that simply were not available and accessible as recently as a few years ago to achieve outcomes that are important to cities and communities. By understanding how the potential of technology was apparent to the stakeholders in such initiatives, why it was affordable and accessible to them, and how they acquired the skills to exploit it, we can learn how to design Smart Cities in a way that encourages widespread grass-roots, localised innovation.

(Top: Birmingham's Masshouse Circus roundabout, part of the inner-city ringroad that famously impeded the city's growth. Bottom: This pedestrian roundabout in Lujiazui, China, constructed over a busy road junction, is a large-scale city infrastructure that balances the need to support traffic flows through the city with the importance that Jane Jacobs first described of allowing people to walk freely about the areas where they live and work. Photo by ChrisUK)

(Top: Birmingham’s Masshouse Circus roundabout, part of the inner-city ringroad that famously impeded the city’s growth until it was demolished. Photo by Birmingham City Council. Bottom: Pedestrian roundabout in Lujiazui, China, constructed over a busy road junction, is a large-scale city infrastructure that balances the need to support traffic flows through the city with the importance that Jane Jacobs first described of allowing people to walk freely about the areas where they live and work. Photo by ChrisUK)

A tale of two roundabouts

History tells us that we should not assume that it will be straightforward to design Smart Cities to achieve that objective, however.

A measure of our success in building the cities we know today from the generations of technology that shaped them – concrete, cars and lifts – is the variation in life expectancy across them. In the UK, it’s common for life expectancy to vary by around 20 years between the poorest and richest parts of the same city.

That staggering difference is the outcome of a complex set of issues including the availability of education and opportunity, lifestyle factors such as diet and exercise, and the accessibility of city services. But a significant influence on many of those issues is the degree to which the large-scale infrastructures built to support our physiological needs and the demands of the economy also create a high-quality environment for daily life.

The photograph on the right shows two city transport infrastructures that are visually similar, but that couldn’t be more different in their influence on the success of the cities that they are part of.

The picture at the top shows Masshouse Circus in Birmingham in 2001 shortly before it was demolished. It was constructed in the 1960s as part of the city’s inner ring-road, intended to improve connectivity to the national economy through the road network. However, the impact of the physical barrier that it created to pedestrian traffic can be seen by the stark difference in land value inside and outside the “concrete collar” of the ring-road. Inside the collar, land is valuable enough for tall office blocks to be constructed on it; whilst outside it is of such low value that it is used as a ground-level carpark.

In contrast, the pedestrian roundabout in Lujiazui, China pictured at the bottom, constructed over a busy road junction, balances the need to support traffic flows through the city with the need for people to walk freely about the areas in which they live and work. As can be seen from the people walking all around it, it preserves the human vitality of an area that many busy roads flow through. 

We should take insight from these experiences when considering the design of Smart City infrastructures. Unless those infrastructures are designed to be accessible to and usable by citizens, communities and local businesses, they will be as damaging as poorly constructed buildings and poorly designed transport networks. If that sounds extreme, then consider the dangers of cyber-stalking, or the implications of the gun-parts confiscated from a suspected 3D printing gun factory in Manchester last year that had been created on general purpose machinery from digital designs shared through the internet. Digital technology has life and death implications in the real world.

For a start, we cannot take for granted that city residents have the basic ability to access the internet and digital technology. Some 18% of adults in the UK have never been online; and children today without access to the internet at home and in school are at an enormous disadvantage. As digital technology becomes even more pervasive and important, the impact of this digital divide – within and between people, cities and nations – will become more severe. This is why so many people care passionately about the principle of “Net Neutrality” – that the shared infrastructure of the internet provides the same service to all of its users; and does not offer preferential access to those individuals or corporations able to pay for it.

These issues are very relevant to cities and their digital strategies and governance. The operation of any form of network requires physical infrastructure such as broadband cables, wi-fi and 4G antennae and satellite dishes. That infrastructure is regulated by city planning policies. In turn, those planning policies are tools that cities can and should use to influence the way in which technology infrastructure is deployed by private sector service providers.

(Photograph of Aesop’s fable “The Lion and the Mouse” by Liz West)

Little and big

Cities are enormous places in which what matters most is that millions of individually small matters have good outcomes. They work well when their large scale systems support the fine detail of life for every one of their very many citizens: when “big things” and “little things” work well together.

A modest European or US city might have 200,000 to 500,000 inhabitants; a large one might have between one and ten million. The United Nations World Urbanisation Prospects 2011 revision recorded 23 cities with more than 10 million population in 2011 (only six of them in the developed world); and predicted that there would be nearly 40 by 2025 (only eight of them in the developed world – as we define it today). Overall, between now and 2050 the world’s urban population will double from 3 billion to 6 billion. 

A good example of the challenges that this enormous level of urbanisation is already creating is the supply of food. One hectare of highly fertile, intensively farmed land can feed 10 people. Birmingham, my home city, has an area of 60,000 hectares of relatively infertile land, most of which is not available for farming at all; and a population of around 1 million. Those numbers don’t add up to food self-sufficiency; and Birmingham is a very low-density city – between one-half and one-tenth as dense as the growing megacities of Asia and South America Feeding the 7 to 10 billion people who will inhabit the planet between now and 2050, and the 3 to 6 billion of them that will live in dense cities, is certainly a challenge on an industrial scale. 

In contrast, Casserole Club, the Northfield Eco-Centre, the Chale Project and many other initiatives around the world have demonstrated the social, health and environmental benefits of producing and distributing food locally. Understanding how to combine the need to supply food at city-scale with the benefits of producing it locally and socially could make a huge difference to the quality of urban lives.

The challenge of providing affordable broadband connectivity throughout cities demonstrates similar issues. Most cities and countries have not yet addressed that challenge: private sector network providers will not deploy connectivity in areas which are insufficiently economically active for them to make a profit, and Government funding is not yet sufficient to close the gap.

In his enjoyable and insightful book “Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia“, Anthony Townsend describes a grass-roots effort by civic activists to provide New York with free wi-fi connectivity. I have to admire the vision and motivation of those involved, but – rightly or wrongly; and as Anthony describes – wi-fi has ultimately evolved to be dominated by commercial organisations.  

As technology continues to improve and to reduce in price, the balance of power between large, commercial, resource-rich institutions and small, agile, resourceful  grassroots innovators will continue to changeTechnologies such as Cloud Computing, social media, 3D printing and small-scale power generation are reducing the scale at which many previously industrial technologies are now economically feasible; however, it will remain the case for the foreseeable future that many city infrastructures – physical and digital – will be large-scale, expensive affairs requiring the buying power and governance of city-scale authorities and the implementation resources of large companies.

But more importantly, neither small-scale nor large-scale solutions alone will meet all of our needs. Many areas in cities – usually those that are the least wealthy – haven’t yet been provided with wi-fi or broadband connectivity by either.  

(Cars in Frederiksberg, Copenhagen wishing to join a main road must give way to cyclists and pedestrians)

(A well designed urban interface between people and infrastructure. Cars in Frederiksberg, Copenhagen wishing to join a main road must give way to cyclists and pedestrians passing along it)

We need to find the middle ground between the motivations, abilities and cultures of large companies and formal institutions on one hand; and those of agile, local innovators and community initiatives on the other. The pilot project to provide broadband connectivity and help using the internet to Castle Vale in Birmingham is a good example of finding that balance.

And I am optimistic that we can find it more often. Whilst Anthony is rightly critical of approaches to designing and building city systems that are led by technology, or that overlook the down-to-earth and sometimes downright “messy” needs of people and communities for favour of unrealistic technocratic and corporate utopias; the reality of the people I know that are employed by large corporations on Smart City projects is that they are acutely aware of the limitations as well as the value of technology, and are passionately committed to the human value of their work. That passion is often reflected in their volunteered commitment to “civic hacking“, open data initiatives, the teaching of technology in schools and other activities that help the communities in which they live to benefit from technology.

But rather than relying on individual passion and integrity, how do we encourage and ensure that large-scale investments in city infrastructures and technology enable small-scale innovation, rather than stifle it?

Smart urbanism and massive/small innovation

I’ve taken enormous inspiration in recent years from the architect Kelvin Campbell whose “Massive / Small” concept and theory of “Smart Urbanism” are based on the belief that successful cities emerge from physical environments that encourage “massive” amounts of “small”-scale innovation – the “lively, diversified city, capable of continual, close- grained improvement and change” that Jane Jacobs described in “The Death and Life of Great American Cities“.

We’ll have to apply similar principles in order for large-scale city technology infrastructures to support localised innovation and value-creation. But what are the practical steps that we can take to put those principles into practise?

Step 1: Make institutions accessible

There’s a very basic behaviour that most of us are quite bad at – listening. In particular, if the institutions of Smart Cities are to successfully create the environment in which massive amounts of small-scale innovation can emerge, then they must listen to and understand what local activists, communities, social innovators and entrepreneurs want and need.

Many large organisations – whether they are local authorities or private sector companies – are poor at listening to smaller organisations. Their decision-makers are very busy; and communications, engagement and purchasing occur through formally defined processes with legal, financial and confidentiality clauses that can be difficult for small or informal organisations to comply with. The more that we address these barriers, the more that our cities will stimulate and support small-scale innovation. One way to do so is through innovations in procurement; another is through the creation of effective engagements programmes, such as the Birmingham Community Healthcare Trust’s “Healthy Villages” project which is listening to communities expressing their need for support for health and wellbeing. This is why IBM started our “Smarter Cities Challenge” which has engaged hundreds of IBM’s Executives and technology experts in addressing the opportunities and challenges of city communites; and in so doing immersed them in very varied urban cultures, economies, and issues.

But listening is also a personal and cultural attitude. For example, in contrast to the current enthusiasm for cities to make as much data as possible available as “open data”, the Knight Foundation counsel a process of engagement and understanding between institutions and communities, in order to identify the specific information and resources that can be most usefully made available by city institutions to individual citizens, businesses and social organisations.

(Delegates at Gov Camp 2013 at IBM’s Southbank office, London. Gov Camp is an annual conference which brings together anyone interested in the use of digital technology in public services. Photo by W N Bishop)

In IBM, we’ve realised that it’s important to us to engage with, listen to and support small-scale innovation in its many forms when helping our customers and partners pursue Smarter City initiatives; from working with social enterprises, to supporting technology start-ups through our Global Entrepreneur Programme, to engaging with the open data and civic hacking movements.

More widely, it is often talented, individual leaders who overcome the barriers to engagement and collaboration between city institutions and localised innovation. In “Resilience: why things bounce back“, Andrew Zolli describes many examples of initiatives that have successfully created meaningful change. A common feature is the presence of an individual who shows what Zolli calls”translational leadership“: the ability to engage with both small-scale, informal innovation in communities and large-scale, formal institutions with resources.

Step 2: Make infrastructure and technology accessible

Whilst we have a long way to go to address the digital divide, Governments around the world recognise the importance of access to digital technology and connectivity; and many are taking steps to address it, such as Australia’s national deployment of broadband internet connectivity and the UK’s Urban Broadband Fund. However, in most cases, those programmes are not sufficient to provide coverage everywhere.

Some businesses and social initiatives are seeking to address this shortfall. CommunityUK, for example, are developing sustainable business models for providing affordable, accessible connectivity, and assistance using it, and are behind the Castle Vale project in Birmingham. And some local authorities, such as Sunderland and Birmingham, have attempted to provide complete coverage for their citizens – although just how hard it is to achieve that whilst avoiding anti-competition issues is illustrated by Birmingham’s subsequent legal challenges.

We should also tap into the enormous sums spent on the physical regeneration of cities and development of property in them. As I first described in June last year, while cities everywhere are seeking funds for Smarter City initiatives, and often relying on central government or research grants to do so, billions of Pounds, Euros, and Dollars are being spent on relatively conventional property development and infrastructure projects that don’t contribute to cities’ technology infrastructures or “Smart” objectives.

Local authorities could use planning regulations to steer some of that investment into providing Smart infrastructure, basic connectivity, and access to information from city infrastructures to citizens, communities and businesses. Last year, I developed a set of “Smart City Design Principles” on behalf a city Council considering such an approach, including:

Principle 4: New or renovated buildings should be built to contain sufficient space for current and anticipated future needs for technology infrastructure such as broadband cables; and of materials and structures that do not impede wireless networks. Spaces for the support of fixed cabling and other infrastructures should be easily accessible in order to facilitate future changes in use.

Principle 6: Any development should ensure wired and wireless connectivity is available throughout it, to the highest standards of current bandwidth, and with the capacity to expand to any foreseeable growth in that standard.

(The Birmingham-based Droplet smartphone payment service, now also operating in London, is a Smart City start-up that has won backing from Finance Birmingham, a venture capital company owned by Birmingham City Council)

Step 3: Support collaborative innovation

Small-scale, local innovations will always take place, and many of them will be successful; but they are more likely to have significant, lasting, widespread impact when they are supported by city institutions with resources.

That support might vary from introducing local technology entrepreneurs to mentors and investors through the networks of contacts of city leaders and their business partners; through to practical assistance for social enterprises, helping them to put in place very basic but costly administration processes to support their operations.

City institutions can also help local innovations to thrive simply by becoming their customers. If Councils, Universities and major local employers buy services from innovative local providers – whether they be local food initiatives such as the Northfield Ecocentre or high-tech innovations such as Birmingham’s Droplet smartphone payment service – then they provide direct support to the success of those businesses.

In Birmingham,for example, Finance Birmingham (a Council-owned venture capital company) and the Entrepreneurs for the Future (e4F) scheme provide real, material support to the city’s innovative companies; whilst Bristol’s Mayor George Ferguson and Lambeth’s Council both support their local currencies by allowing salaries to be paid in them.

It becomes more obvious  why stakeholders in a city might become involved in collaborative innovation when they have the opportunity to co-create a clear set of shared priorities. Those priorities can be compared to the objectives of innovative proposals seeking support, whether from social initiatives or businesses; used as the basis of procurement criteria for goods, services and infrastructure; set as the objectives for civic hacking and other grass-roots creative events; or even used as the criteria for funding programmes for new city services, such as the “Future Streets Incubator” that will shortly be launched in London as a result of the Mayor of London’s Roads Task Force.

In this context, businesses are not just suppliers of products and services, but also local institutions with significant supply chains, carbon and economic footprints, purchasing power and a huge number of local employees. There are many ways such organisations can play a role in supporting the development of an open, Smarter, more sustainable city.

The following “Smart City Design Principles” promote collaborative innovation in cities by encouraging support from development and regeneration initiatives:

Principle 12: Consultations on plans for new developments should fully exploit the capabilities of social media, virtual worlds and other technologies to ensure that communities affected by them are given the widest, most immersive opportunity possible to contribute to their design.

Principle 13: Management companies, local authorities and developers should have a genuinely engaging presence in social media so that they are approachable informally.

Principle 14: Local authorities should support awareness and enablement programmes for social media and related technologies, particularly “grass roots” initiatives within local communities.

Step 4: Promote open systems

A common principle between the open data movement; civic hacking; localism; the open government movement; and those who support “bottom-up” innovations in Smart Cities is that public systems and infrastructure – in cities and elsewhere – should be “open”. That might mean open and transparent in their operation; accessible to all; or providing open data and API interfaces to their technology systems so that citizens, communities and businesses can adapt them to their own needs. Even better, it might mean all of those things.

The “Dublinked” information sharing partnership, in which Dublin City Council, three surrounding County Councils and  service providers to the city share information and make it available to their communities as “open data”, is a good example of the benefits that openness can bring. Dublinked now makes 3,000 datasets available to local authority analysts; to researchers from IBM Research and the National University of Ireland; and to businesses, entrepreneurs and citizens. The partnership is identifying new ways for the city’s public services and transport, energy and water systems to work; and enabling the formation of new, information-based businesses with the potential to export the solutions they develop in Dublin to cities internationally. It is putting the power of technology and of city information not only at the disposal of the city authority and its agencies, but also into the hands of communities and innovators.

(I was delighted this year to join Innovation Birmingham as a non-Executive Director in addition to my role with IBM. Technology incubators – particularly those, like Innovation Birmingham and Sunderland Software City, that are located in city centres – are playing an increasingly important role in making the support of city institutions and major technology corporations available to local communities of entrepreneurs and technology activists)

In a digital future, the more that city infrastructures and services provide open data interfaces and APIs, the more that citizens, communities and businesses will be able to adapt the city to their own needs. This is the modern equivalent of the grid system that Jane Jacobs promoted as the most adaptable urban form. A grid structure is the basis of Edinburgh’s “New Town”, often regarded as a masterpiece of urban planning that has proved adaptable and successful through the economic and social changes of the past 250 years, and is also the starting point for Kelvin Campbell’s work.

But open data interfaces and APIs will only be widely exploitable if they conform to common standards. In order to make it possible to do something as simple as changing a lightbulb, we rely on open standards for the levels of voltage and power from our electricity supply; the physical dimensions of the socket and bulb and the characteristics of their fastenings; specifications of the bulb’s light and heat output; and the tolerance of the bulb and the fitting for the levels of moisture found in bathrooms and kitchens. Cities are much more complicated than lightbulbs; and many more standards will be required on order for us to connect to and re-configure their systems easily and reliably.

Open standards are also an important tool in avoiding city systems becoming “locked-in” to any particular supplier. By specifying common characteristics that all systems are required to demonstrate, it becomes more straightforward to exchange one supplier’s implementation for another.

Some standards that Smarter City infrastructures can use are already in place – for example, Web services and REST that specify the general ways in which computer systems interact, and the Common Alerting Protocol which is more specific to interactions between systems that monitor and control the physical world. But many others will need to be invented and encouraged to spread. The City Protocol Society is one organisation seeking to develop those new standards; and the British Standards Institute recently published the first set of national standards for Smarter Cities in the UK, including a standard for the interoperability of data between Smart City systems.

Some open source technologies will also be pivotal; open source (software whose source code is freely available to anyone, and which is usually written by unpaid volunteers) is not the same as open standards (independently governed conventions that define the way that technology from any provider behaves). But some open source technologies are so widely used to operate the internet infrastructures that we have become accustomed to – the “LAMP” stack of operating system, web server, database and web progamming language, for example – that they are “de facto” standards that convey some of the benefits of wide usability and interoperability of open standards. For example, IBM recently donated MQTT, a protocol for connecting information between small devices such as sensors and actuators in Smart City systems to the open source community, and it is becoming increasingly widely adopted as a consequence.

Once again, local authorities can contribute to the adoption of open standards through planning frameworks and procurement practises:

Principle 7: Any new development should demonstrate that all reasonable steps have been taken to ensure that information from its technology systems can be made openly available without additional expenditure. Whether or not information is actually available will be dependent on commercial and legal agreement, but it should not be additionally subject to unreasonable expenditure. And where there is no compelling commercial or legal reason to keep data closed, it should actually be made open.

Principle 8: The information systems of any new development should conform to the best available current standards for interoperability between IT systems in general; and for interoperability in the built environment, physical infrastructures and Smarter Cities specifically.

(The town plan for Edinburgh’s New Town, clearly showing the grid structure that gives rise to the adaptability that it is famous for showing for the past 250 years. Image from the JR James archive)

Finally, design skills will be crucial both to creating interfaces to city infrastructures that are truly useful and that encourage innovation; and in creating innovations that exploit them that in turn are useful to citizens.

At the technical level, there is already a rich corpus of best practise in the design of interfaces to technology systems and in the architecture of technology infrastructures that provide them.

But the creativity that imagines new ways to use these capabilities in business and in community initiatives will also be crucial. The new academic discipline of “Service Science” describes how designers can use technology to create new value in local contexts; and treats services such as open data and APIs as “affordances” – capabilities of infrastructure that can be adapted to the needs of an individual. In the creative industries, “design thinkers” apply their imagination and skills to similar subjects.

Step 5: Provide common services

At the 3rd EU Summit on Future Internet, Juanjo Hierro, Chief Architect for the FI-WARE “future internet platform” project, identified the specific tools that local innovators need in order to exploit city information infrastructures. They include real-time access to information from physical city infrastructures; tools for analysing “big data“; and access to technologies to ensure privacy and trust.

The Dublinked information sharing partnership is already putting some of these ideas into practise. It provides assistance to innovators in using, analysing and visualising data; and now makes available realtime data showing the location and movements of buses in the city. The partnership is based on specific governance processes that protect data privacy and manage the risk associated with sharing data.

As we continue to engage with communities of innovators in cities, we will discover further requirements of this sort. Imperial College’s “Digital Cities Exchange” research programme is investigating the specific digital services that could be provided as enabling infrastructure to support innovation and economic growth in cities, for example. And the British Standards Institute’s Smart Cities programme includes work on standards that will enable small businesses to benefit from Smart City infrastructure.

Local authorities can adapt planning frameworks to encourage the provision of these services:

Principle 9: New developments should demonstrate that they have considered the commercial viability of providing the digital civic infrastructure services recommended by credible research sources.

Step 6: Establish governance of the information economy

From the exponential growth in digital information we’ve seen in recent years, to the emergence of digital currencies such as Bitcoin, to the disruption of traditional industries by digital technology; it’s clear that we are experiencing an “information revolution” just as significant as the “industrial revolution” of the 18th and 19th centuries. We often refer to the resulting changes to business and society as the development of an “information economy“.

But can we speak in confidence of an information economy when the basis of establishing the ownership and value of its fundamental resource – digital information – is not properly established?

(Our gestures when using smartphones may be directed towards the phones, or the people we are communicating with through them; but how are they interpreted by the people around us? “Oh, yeah? Well, if you point your smartphone at me, I’m gonna point my smartphone at you!” by Ed Yourdon)

A great deal of law and regulation already applies to information, of course – such as the European Union’s data privacy legislation. But practise in this area is far less established than the laws governing the ownership of physical and intellectual property and the behaviour of the financial system that underlie the rest of the economy. This is evident in the repeated controversies concerning the use of personal information by social media businesses, consumer loyalty schemes, healthcare providers and telecommunications companies.

The privacy, security and ownership of information, especially personal information, are perhaps the greatest challenges of the digital age. But that is also a reflection of their importance to all aspects of our lives. Jane Jacobs’ description of urban systems in terms of human and community behaviour was based on those concepts, and is still regarded as the basis of our understanding of cities. New technologies for creating and using information are developing so rapidly that it is not only laws specifically concerning them that are failing to keep up with progress; laws concerning the other aspects of city systems that technology is transforming are failing to adapt quickly enough too.

A start might be to adapt city planning regulations to reflect and enforce the importance of the personal information that will be increasingly accessed, created and manipulated by city systems:

Principle 21: Any information system in a city development should provide a clear policy for the use of personal information. Any use of that information should be with the consent of the individual.

The triumph of the commons

I wrote last week that Smarter Cities should be a “middle-out” economic investment – in other words, an investment in common interests – and compared them to the Economist’s report on the efforts involved in distributing the benefits of the industrial revolution to society at large rather than solely to business owners and the professional classes.

One of the major drivers for the current level of interest in Smarter Cities and technology is the need for us to adapt to a more sustainable way of living in the face of rising global populations and finite resources. At large scale, the resources of the world are common; and at local scale, the resources of cities are common too.

For four decades, it has been widely assumed that those with access to common resources will exploit them for short term gain at the expense of long term sustainability – this is the “tragedy of the commons” first described by the economist Garrett Hardin. But in 2009, Elinor Ostrum won the Nobel Prize for economics by demonstrating that the “tragedy” could be avoidedand that a community could manage and use shared resources in a way that was sustainable in the long-term.

Ostrum’s conceptual framework for managing common resources successfully is a set of criteria for designing “institutions” that consist of people, processes, resources and behaviours. These need not necessarily be formal political or commercial institutions, they can also be social structures. It is interesting to note that some of those criteria – for example, the need for mechanisms of conflict resolution that are local, public, and accessible to all the members of a community – are reflected in the development over the last decade of effective business models for carrying out peer-to-peer exchanges using social media, supported by technologies such as reputation systems.

Of course, there are many people and communities who have championed and practised the common ownership of resources regardless of the supposed “tragedy” – not least those involved in the Transition movement founded by Rob Hopkins, and which has developed a rich understanding of how to successfully change communities for the better using good ideas; or the translational leaders described by Andrew Zolli. But Elinor Ostrum’s ideas are particularly interesting because they could help us to link the design, engineering and governance of Smarter Cities to the achievement of sustainable economic and social objectives based on the behaviour of citizens, communities and businesses.

Combined with an understanding of the stories of people who have improved their lives and communities using technology, I hope that the work of Kelvin Campbell, Rob Hopkins, Andrew Zolli, Elinor Ostrum and many others can inspire technologists, urban designers, architects and city leaders to develop future cities that fully exploit modern technology to be efficient, resilient and sustainable; but that are also the best places to live and work that we can imagine, or that we would hope for for our children.

Cities created by people like that really would be Smart.

Creating successful Smart Cities in 2014 will be an economic, financial and political challenge, not an engineering accomplishment

Why insurers, pension funds and politics will be more important to Smart Cities in 2014 than “Living Labs” or technology.

(The 2nd Futurama exhibition at the 1964 New York World’s Fair. In 50 years’ time, how will we perceive today’s visions of Smart Cities? Photo by James Vaughan)

I hope that 2014 will be the year in which we see widespread and large-scale investments in future city technology infrastructures that enable sustainable, equitably distributed economic and social growth. The truth is that we are still in the very early stages of that process.

In 2012 I spoke with a Director at a financial consultancy who’d performed a survey of European Smart City initiatives. She confirmed something that I suspected at the time: that the great majority of Smart City initiatives up to that point in the mature markets of Europe and North America had been financed by research funding, rather than on a commercial basis.

Four trends characterised the subsequent development of Smart Cities throughout 2013. Firstly, emerging markets continued to invest in supporting the rapid urbanisation they are experiencing; and businesses, Universities and national governments in developed nations recognised the commercial opportunity for them to supply that market with “Smart” solutions.

Secondly, it remains the case that the path to growth for undeveloped nations is still extremely slow and complex; so whilst there is private sector and national government interest in investing in those nations – IBM’s new Research centre in Nairobi being an example – many “smart” initiatives are carried out at small scale by local innovators, the third sector or development agencies.

In Europe and North America, a third trend was the continuing announcement of investments by the European Union and national governments in the applied research and innovation agenda in cities – such as the EU’s Horizon 2020 programme, for example.

Perhaps most importantly, though, the final trend was for cities in Europe and North America to start to make investments in the underlying technology platforms for Smart Cities from their own operational budgets, on the basis of their ability to deliver cost savings or improvements in outcomes. For example, some cities are replacing traditional parking management and enforcement services with “smart parking” schemes that are reducing congestion and pollution whilst paying for themselves through improved revenues. Others are investing their allocation of central government infrastructure funds in Smart solutions – such as Cambridge, Ontario’s use of the Canadian government’s Gas Tax Fund to invest in a sensor network and analytics infrastructure to manage the city’s physical assets intelligently.

This trend to create business cases for investment from normal operating budgets or infrastructure investment programmes is important not only because it shows that these cities are developing the business models to support investment in “Smart” solutions locally, where the finances associated with rapid economic growth and urbanisation are not present; but also because (at the risk of simplifying a challenging and complex issue) some of those business models might serve as a template for self-sustainable adoption in less developed nations.

(Downtown Cambridge, Ontario. Photo by Justin Scott Campbell)

Whilst the idea of a “Smart City” has been capturing the imagination for several years now, the reality is that many cities are still deciding what that idea might mean for them. For example, London’s “Smart London Board” published it’s Smart London plan in December, following Birmingham’s Smart City Commission report earlier in the year. And most cities who are considering such plans now or who have recently published them are still determining how to put the finance in place to carry them out.

Will “Living Labs” be the death of Smart Cities?

A concept that I see in many such plans that is intended to assist in securing finance, but that I think risks being a distraction from addressing it properly, is the “Living Lab”. 

Living labs emerged as a set of best practises for carrying out applied research into consumer or citizen services with a focus on collaborative, user-centred design and co-creation. Many cities are now seeking to win funding for their Smarter Cities initiatives by offering themselves as “Living Labs” in which consortia constructing proposals for applied research funding can carry out their activities.

The issue is not that Living Lab’s aren’t a good idea – on the contrary, they are undoubtably a very good set of prescriptions for carrying out such research and design successfully. The problem is that there are now so many cities intending to follow this approach that it no longer makes them stand out as particularly effective environments in which to perform research.

Research programmes will continue to fund the first deployments of new Smart City ideas and technology; but competition for those funds will be fierce. Cities, universities and companies that bid for them will invest many months – often more than a year – in developing their proposals; and in competitions, most entrants do not win.

The real need in cities is for the development and regeneration of infrastructure. There are certainly research topics concerning infrastructure that will attract funding from national and international government bodies; but those funds will not support the rollout of citywide infrastructure to every city in every country.

(Birmingham's new city-centre tram)

(Birmingham’s new city-centre tram is an infrastructure investment that will contribute to the same objectives as the city’s Smart City vision.)

The big questions for European and American cities in 2014 are then:

Will they continue to invest resources competing for applied research and innovation funding, limiting the speed at which the widespread deployment of new infrastructure will take place?

Or will they focus on developing independently viable business cases for investment in the infrastructure to support their
Smarter City visions?

There’s a real need for clarity about these issues. Whilst the enormous level of innovation funding being made into smart buildings, smart transport and smart cities by the EU Horizon 2020 programme and national equivalents such as the UK’s Technology Strategy Board will stimulate the field and fund important demonstration projects that deliver real value, these bodies will not pay for all of our cities to become Smarter.

The same is true for the research investments made by commercial organisations including technology companies such as IBM. Commercial research investments fund the first attempts to apply technology to solve problems or achieve objectives in new ways; those that succeed are subsequently deployed elsewhere on a commercial basis.

The risk is that in seeking investment from research programmes, we become distracted from addressing the real challenge: how to make the case for private sector investment in new technology infrastructures based on the economic and social improvements they will enable; or on the direct financial returns that they will generateIn the UK, for example, a specialist body in Government, Infrastructure UK, coordinates private sector funding for public infrastructure. And if we can persuade property developers of the value of “Smart” technologies, then cities could benefit from the enormous investments made in property every year that currently don’t result in the deployment of technology – the British Property Federation, for example, estimate that £14 billion is invested in the development of new space in the UK each year.

(This pedestrian roundabout in Lujiazui, China, constructed over a busy road junction, is a large-scale city infrastructure that balances the need to support traffic flows through the city with the importance that Jane Jacobs first described of allowing people to walk freely about the areas where they live and work. Photo by ChrisUK)

This is an opportunity we should treat with urgency. Whilst public sector finances are under immense pressure, the vast wealth held in private investment funds is seeking new opportunities following the poor returns that many traditional forms of investment have yielded over the last few years. There is a lot of work to do between the stakeholders in cities, government and finance before these investment sources can be exploited by Smart Cities – not least in agreeing reasonable expectations for how the risks and returns will be measured and shared. But I personally believe that until we do so, we will not be able to properly finance the development of our next generation of cities.

As Jane Jacobs wrote in her seminal 1961 work “The Death and Life of Great American Cities“:

“Private investment shapes cities, but social ideas (and laws) shape private investment. First comes the image of what we want, then the machinery is adapted to turn out that image. The financial machinery has been adjusted to create anti-city images because, and only because, we as a society thought this would be good for us. If and when we think that lively, diversified city, capable of continual, close-grained improvement and change, is desirable, then we will adjust the financial machinery to get that.”

Overcoming these challenges won’t be easy, and doing so will require each of the various stakeholder organisations facing them to take bold steps this year.

Local Government

Whilst their finances throughout the developed world have been under severe pressure for a long time now, local government bodies are still responsible for procuring a significant volume of goods and services. Smart Cities will only become a reality when local authority visions for the future are reflected in procurement practises and scoring criteria for contracts issued today. It’s only very recently that procurements for contracts to build, update and manage physical infrastructures such as roads and pavements have been based on outcomes such as minimising congestion or increasing the overall quality of performance throughout the lifetime of the asset within the contract value, rather than on securing the maximum volume of concrete (or number of traffic wardens).

Outcomes-based procurements are challenging to be sure, both for the purchaser and the provider; especially so when they are for such new solutions. But service and infrastructure providers will only be motivated to propose and deliver innovative, smart solutions when they’re rewarded for doing so.

Local authorities can also exploit indirect mechanisms such as planning and development frameworks. I worked last year with one authority which asked how its planning framework should evolve in order to promote the development of a “Smart City”, and published a set of 23 “Design principles for a Smarter City” as a result. They require that investments in property also deliver technology infrastructures such as wi-fi, broadband, open-data, and multi-channel self-service access.

(An analysis based on GPS data from mobile phones of end-to-end journeys undertaken by users of Abidjan’s bus services. By comparing existing bus routes to end-to-end journey requirements, the analysis identified four new bus routes and led to changes in many others. As a result, 22 routes now show increased ridership, and city-wide journey times have decreased by 10%. The techniques and technologies behind the project build on those developed for projects in Dubuque, Istanbul and Dublin.)

Private Sector

The technology companies associated with Smart Cities have sometimes been criticised for focussing too much on the technology that can be applied to city infrastructures, and not enough on the improvements to people’s work and lives that technology can enable, or on the business cases for investing in it.

To make the business case clearer, my colleague the economist Mary Keeling has been working for IBM’s Institute for Business Value to more clearly analyse and express the benefits of Smart approaches – in water management and transportation, for example. And I’ll be contributing along with representatives from many of the other companies that provide technology and infrastructure for Smart Cities to the TSB’s Future Cities Catapult’s finance initiative.

But we also need to respect the principles of Living Labs and the experience of urban designers – not least the writing of Jane Jacobs – which reflect that our starting point for thinking about Smart Cities should be the everyday lives and experiences of individual citizens in their family lives; at work; and moving through cities. In one sense, this is business as usual in the technology industry – “user-centered design“, “use cases” and “user stories” have been at the heart of software development since the 1980s. So one of our challenges is simply to communicate that approach more clearly within our descriptions of Smart Cities. This is a topic I’ve written about in many articles on this blog that you can find described in “7 Steps to a Smarter City“; and that I tried to address in IBM’s new Smarter Cities video.

The other challenge is for technology companies to become more familiar and expert in the disciplines associated with good quality urban design – town planning, architecture, social science and the psychology of human behaviour, for example. This is one of the reasons why IBM started the “Smarter Cities Challenge” programme through which we have donated our technology expertise to 100 cities worldwide to help them address the opportunities and challenges they face; and in so doing become more familiar with their very varied cultures, economies, issues and capabilities. It’s also why I joined the Academy of Urbanism, along with representatives of several other technology companies.

We also need to embrace the “Smart Urbanism” thinking exemplified by Kelvin Campbell. Kelvin’s “Massive / Small” approach is intended to design large-scale urban infrastructures that encourage and support “massive” amounts of “small-scale” innovation. I think that’s an extremely powerful idea that we should embrace in Smarter Cities; and that translates directly to the practise of providing open-standard, public interfaces to city technology infrastructures – open data feeds and APIs (“Application Programming Interfaces”), for example – that not only reduce the risk that city systems become “locked-in” to any proprietary provider; but that also open up the power of large scale technology systems and “big data” sources so that local businesses, innovators and communities are able to adapt public infrastructures to their own needs. I think of these interfaces as creating an “innovation boundary” between a city’s infrastructure and its stakeholders.

(George Ferguson, Mayor of Bristol, one of the few cities in the UK with an elected Mayor with significant authority and responsibility. His salary is paid in the city’s local currency, the Bristol Pound, rather than in the national currency. His red trousers are famous. Photo by PaulNUK)

Central Government

In most countries in the developed world – i.e. those which are not being driven by rapid urbanisation today because they urbanised during the Industrial Revolution – the majority of Smart City initiatives that have momentum are driven by Mayors convening city stakeholders and institutions to co-create, finance and deliver those initiatives. Correspondingly, in countries without strong mayoral systems – such as the UK – progress can be slower. Worryingly, Centre for Cities’ recent Outlook 2014 report pointed out that only 17% of funding for UK cities comes from locally administered taxation, as opposed to the OECD average of 55%.

To risk stating the obvious, every city is different, and different in very many important ways, from its geographical situation to its linkage to national and international transport infrastructure; from its economic and business capabilities to the skills and wealth of its population; from its social challenges and degree of social mobility to its culture and heritage. Successful Smart City initiatives are specific, not generic; and the greater degree of autonomy that cities are allowed in setting strategy and securing financing, the greater their capability to pursue those initiatives. Programmes such as “City Deals” and the recent reforms resulting from Lord Heseltine’s “No Stone Unturned” report are examples of progress towards greater autonomy for the UK’s cities, but they are not enough.

Central government will always have a significant role in funding the infrastructures that cities rely on, of course; whether that’s national infrastructures that connect cities (such as the planned “HS2” high-speed train network in the UK, or Australia’s national deployment of broadband internet connectivity), or specific infrastructures within cities, such as Birmingham’s new city-centre tram. And so just as local governments should consider how they can use procurement practises and planning frameworks to encourage investments in property and infrastructure that deliver “Smart” solutions, so central government should consider how the funding programmes that it administers can contribute to cities’ “Smart” objectives.

Financial Services

If the challenge is to unlock investment in new assets and outcomes, then we should turn to banks, insurers and investors to help us shape the new financial vehicles that we will require to do so. In Canada, for example, a collaboration between Canadian insurers and cities has developed a set of tools to create a common understanding of the financial risk created by the effects of climate change on the resilience of city infrastructures. These tools are the first step towards creating investment and insurance models for city infrastructures that will be exposed to new levels of risk; that will need to exhibit new levels of resilience; and that in turn may require Smart solutions to achieve them.

(Luciana Berger, Shadow Minister for Energy and Climate Change pictured talking to Northfield, Birmingham resident Abraham Weekes and James McKay, Birmingham City Council’s Cabinet Member for a Green, Safe and Smart city. Abraham lives in the house pictured, which has been fitted with exterior house covering, solar panels and energy efficient windows through the Birmingham Energy Savers scheme. Photo by Birmingham City Council)

More internationally, the “Little Rock Accord” between the Madrid Club of former national Presidents and Prime Ministers and the P80 group of pension funds agreed to create a task force to increase the degree to which pension and sovereign wealth funds invest in the deployment of technology to address climate change issues, shortages in resources such as energy, water and food, and sustainable, resilient growth. And more locally, I’m proud to note that my home city of Birmingham is a pioneer in this area through the Birmingham Energy Savers project, financed through a mixture of prudential borrowing and private sector investment.

It has taken us too long to get to this point, but I’m encouraged that several initiatives are now convening discussions between the traditionally understood stakeholders in Smart Cities – local authorities, technology companies, universities and built-environment companies – and the financial sector. For example, in addition to the Future Cities Catapult’s financing programme, on March 13th, I’ll be speaking at an event organised by the Lord Mayor of the City of London to encourage the City’s financial institutions and UK city authorities to undertake a similar collaboration to develop new financing models for future city infrastructures.

Are Smarter Cities a “middle out” economic intervention?

In his 2011 Presidential Campaign speech Barack Obama promised an economic strategy based on “middle-out” economics – the philosophy that equitable, sustainable growth is driven by the spending power of middle class consumers, as an alternative to “trickle-down” economics – the philosophy that growth is best created when very rich “wealth-creators” are free to become as successful as possible.

As this analysis in “The Atlantic” shows, job creation does depend on the investments of the wealthiest; but also on the spending power of the masses; and on a lot of very hard work making sure that a reasonable portion of the profits created by both of those activities are used to invest in making skills, education and opportunity available to all. The Economist magazine made the same point in a recent article by reminding us of the enormous investments made into public institutions in the past in order to distribute the benefits of the Industrial Revolution to society at large rather than concentrate them on behalf of business owners and the professional classes; though with only partial success.

(The discussion group at the #SmartHack event in Birmingham)

(The discussion group at the #SmartHack event in Birmingham, described in “Tea, trust and hacking – how Birmingham is getting Smarter“, photographed by Sebastian Lenton)

 Those ideas are reflected in what it takes to craft an investment in a technology-enabled Smart City initiative that successfully creates social and economic improvements in a city.

Whilst a huge number of effective “Smart” ideas will be created “bottom-up” by innovators and social entrepreneurs intimately familiar with specific local communities and context, those ideas will not succeed as well or rapidly as we need them to without significant investment in new infrastructures – such as wi-fi, broadband and realtime open data – that are deployed everywhere, not just in the most economically active areas of cities that reward commercial investment most quickly. Accessibility to these infrastructures creates the “innovation boundary” between city institutions and infrastructures, and local innovators and communities.

This is not an abstract concept; it is an idea that some cities are making very real today. For example, the “Dublinked” information-sharing partnership between Dublin County Council, three surrounding County Councils and the National University of Ireland now makes available 3,000 city datasets as “open data” – including a realtime feed showing the location of buses in the city. That’s a resource that local innovators can use to create their own new applications and services. Similarly, in Birmingham the “West Midlands Open Data Forum” has emerged as a community in which city local businesses and innovators can negotiate access to data held by city institutions and service providers.

(David Willets, MP, Minister for Universities and Science, launches the UK Government’s Smart Cities Forum)

At launch of the UK Government’s “Smart Cities Forum” last year, I remarked that we were not inviting key stakeholders to the Smarter Cities debate – specifically, banks, investors, insurers and entrepreneurs. Some of the initiatives I’ve described in this article are starting to address that omission; and to recognise that the most significant challenges are to do with finance, politics, social issues and economics, not engineering and technology.

And those are challenges that all of us should focus on. No-one is going to pay for our cities to become Smarter, more successful, more sustainable and fairer: we will have to figure out how to pay for  those things ourselves.

Can Smarter City technology measure and improve our quality of life?

(Photo of Golden Gate Bridge, San Francisco, at night by David Yu)

Can information and technology measure and improve the quality of life in cities?

That seems a pretty fundamental question for the Smarter Cities movement to address. There is little point in us expending time and money on the application of technology to city systems unless we can answer it positively. It’s a question that I had the opportunity to explore with technologists and urbanists from around the world last week at the Urban Systems Collaborative meeting in London, on whose blog this article will also appear.

Before thinking about how we might approach such a challenging and complex issue, I’d like to use two examples to support my belief that we will eventually conclude that “yes, information and technology can improve the quality of life in cities.”

The first example, which came to my attention through Colin Harrison, who heads up the Urban Systems Collaborative, concerns public defibrillator devices – equipment that can be used to give an electric shock to the victim of a heart attack to restart their heart. Defibrillators are positioned in many public buildings and spaces. But who knows where they are and how to use them in the event that someone nearby suffers a heart attack?

To answer those questions, many cities now publish open data lists of the locations of publically-accessible Defibrillators. Consequently, SmartPhone apps now exist that can tell you where the nearest one to you is located. As cities begin to integrate these technologies with databases of qualified first-aiders and formal emergency response systems, it becomes more feasible that when someone suffers a heart attack in a public place, a nearby first-aider might be notified of the incidence and of the location of a nearby defibrillator, and be able to respond valuable minutes before the arrival of emergency services. So in this case, information and technology can increase the chancees of heart attack victims recovering.

(Why Smarter Cities matter: "Lives on the Line" by James Cheshire at UCL's Centre for Advanced Spatial Analysis, showing the variation in life expectancy and correlation to child poverty in London. From Cheshire, J. 2012. Lives on the Line: Mapping Life Expectancy Along the London Tube Network. Environment and Planning A. 44 (7). Doi: 10.1068/a45341)

(Why Smarter Cities matter: “Lives on the Line” by James Cheshire at UCL’s Centre for Advanced Spatial Analysis, showing the variation in life expectancy across London. From Cheshire, J. 2012. Lives on the Line: Mapping Life Expectancy Along the London Tube Network. Environment and Planning A. 44 (7). Doi: 10.1068/a45341)

In a more strategic scenario, the Centre for Advanced Spatial Analysis (CASA) at University College London have mapped life expectancy at birth across London. Life expectancy across the city varies from 75 to 96 years, and CASA’s researchers were able to correlate it with a variety of other issues such as child poverty.

Life expectancy varies by 10 or 20 years in many cities in the developed world; analysing its relationship to other economic, demographic, social and spatial information can provide insight into where money should be spent on providing services that address the issues leading to it, and that determine quality of life. The UK Technology Strategy Board cited Glasgow’s focus on this challenge as one of their reasons for investing £24 million in Glasgow’s Future Cities Demonstrator project – life expectancy at birth for male babies in Glasgow varies by 26 years between the poorest and wealthiest areas of the city.

These examples clearly show that in principle urban data and technology can contribute to improving quality of life in cities; but they don’t explain how to do so systematically across the very many aspects of quality of life and city systems, and between the great variety of urban environments and cultures throughout the world. How could we begin to do that?

Deconstructing “quality of life”

We must first think more clearly about what we mean by “quality of life”. There are many needs, values and outcomes that contribute to quality of life and its perception. Maslow’s “Hierarchy of Needs” is a well-researched framework for considering them. We can use this as a tool for considering whether urban data can inform us about, and help us to change, the ability of a city to create quality of life for its inhabitants.

(Maslow’s Hierarchy of Needs, image by Factoryjoe via Wikimedia Commons)

But whilst Maslow’s hierarchy tells us about the various aspects that comprise the overall quality of life, it only tells us about our relationship with them in a very general sense. Our perception of quality of life, and what creates it for us, is highly variable and depends on (at least) some of the following factors:

  • Individual lifestyle preferences
  • Age
  • Culture and ethnicity
  • Social standing
  • Family status
  • Sexuality
  • Gender
  • … and so on.

Any analysis of the relationship between quality of life, urban data and technology must take this variability into account; either by allowing for it in the analytic approach; or by enabling individuals and communities to customise the use of data to their specific needs and context.

Stress and Adaptability

Two qualities of urban systems and life within them that can help us to understand how urban data of different forms might relate to Maslow’s hierarchy of needs and individual perspectives on it are stress and adaptability.

Jurij Paraszczak, IBM’s Director of Research for Smarter Cities, suggested that one way to improve quality of life is to reduce stress. A city with efficient, well integrated services – such as transport; availability of business permits etc. – will likely cause less stress, and offer a higher quality of life, than a city whose services are disjointed and inefficient.

One cause of stress is the need to change. The Physicist Geoffrey West is one of many scientists who has explored the roles of technology and population growth in speeding up city systems; as our world changes more and more quickly, our cities will need to become more agile and adaptable – technologists, town planners and economists all seem to agree on this point.

The architect Kelvin Campbell has explored how urban environments can support adaptability by enabling actors within them to innovate with the resources available to them (streets, buildings, spaces, technology) in response to changes in local and global context – changes in the economy of cultural trends, for example.

Service scientists” analyse the adaptability of systems (such as cities) by considering the “affordances” they offer to actors within them. An “affordance” is a capability within a system that is not exercised until an actor chooses to exercise it in order to create value that is specific to them, and specific to the time, place and context within which they act.

An “affordance” might be the ability to start a temporary business or “pop-up” shop within a disused building by exploiting a temporary exemption from planning controls. Or it might be the ability to access open city data and use it as the basis of new information-based business services. (I explored some ideas from science, technology, economics and urbanism for creating adaptability in cities in an article in March this year).

(Photo by lecercle of a girl in Mumbai doing her homework on whatever flat surface she could find. Her use of a stationary tool usually employed for physical mobility to enhance her own social mobility is an example of the very basic capacity we all have to use the resources available to us in innovative ways)

Stress and adaptability are linked. The more personal effort that city residents must exert in order to adapt to changing circumstances (i.e. the less that a city offers them useful affordances), then the more stress they will be subjected to.

Stress; rates of change; levels of effort and cost exerted on various activities: these are all things that can be measured.

Urban data and quality of life in the district high street

In order to explore these ideas in more depth, our discussion at the Urban Systems Collaborative meeting explored a specific scenario systematically. We considered a number of candidate scenarios – from a vast city such as New York, with a vibrant economy but affected by issues such as flood risk; through urban parks and property developments down to the scale of an individual building such as a school or hospital.

We chose to start with a scenario in the middle of that scale range that is the subject of particularly intense debate in economics, policy and urban design: a mixed-demographic city district with a retail centre at its heart spatially, socially and economically.

We imagined a district with a population of around 50,000 to 100,000 people within a larger urban area; with an economy including the retail, service and manufacturing sectors. The retail centre is surviving with some new businesses starting; but also with some vacant property; and with a mixture of national chains, independent specialist stores, pawnshops, cafes, payday lenders, pubs and betting shops. We imagined that local housing stock would support many levels of wealth from benefits-dependent individuals and families through to millionaire business owners. A district similar to Kings Heath in Birmingham, where I live, and whose retail economy was recently the subject of an article in the Economist magazine.

We asked ourselves what data might be available in such an environment; and how it might offer insight into the elements of Maslow’s hierarchy.

We began by considering the first level of Maslow’s hierarchy, our physiological needs; and in particular the availability of food. Clearly, food is a basic survival need; but the availability of food of different types – and our individual and cultural propensity to consume them – also contributes to wider issues of health and wellbeing.

(York Road, Kings Heath, in the 2009 Kings Heath Festival. Photo by Nick Lockey)

Information about food provision, consumption and processing can also give insights into economic and social issues. For example, the Economist reported in 2011 that since the 2008 financial crash, some jobs lost in professional service industries such as finance in the UK had been replaced by jobs created in independent artisan industries such as food. Evidence of growth in independent businesses in artisan and craft-related sectors in a city area may therefore indicate the early stages of its recovery from economic shock.

Similarly, when a significant wave of immigration from a new cultural or ethnic group takes place in an area, then it tends to result in the creation of new, independent food businesses catering to preferences that aren’t met by existing providers. So a measure of diversity in food supply can be an indicator of economic and social growth.

So by considering a need that Maslow’s hierarchy places at the most basic level, we were able to identify data that describes an urban area’s ability to support that need – for example, the “Enjoy Kings Heath” website provides information about local food businesses; and furthermore, we identified ways that the same data related to needs throughout the other levels of Maslow’s hierarchy.

We next considered how economic flows within and outside an area can indicate not just local levels of economic activity; but also the area’s trading surplus or deficit. Relevant information in principle exists in the form of the accounts and business reports of businesses. Initiatives such as local currencies and loyalty schemes attempt to maximise local synergies by minimising the flow of money out of local economies; and where they exploit technology platforms such as Droplet’s SmartPhone payments service, which operates in London and Birmingham, the money flows within local economies can be measured.

These money flows have effects that go beyond the simple value of assets and property within an area. Peckham high street in London has unusually high levels of money flow in and out of its economy due to a high degree of import / export businesses; and to local residents transferring money to relatives overseas. This flow of money makes business rents in the area disproportionally high  compared to the value of local assets.

Our debate also touched on environmental quality and transport. Data about environmental quality is increasingly available from sensors that measure water and air quality and the performance of sewage systems. These clearly contribute insights that are relevant to public health. Transport data provides perhaps more subtle insights. It can provide insight into economic activity; productivity (traffic jams waste time); environmental impact; and social mobility.

My colleagues in IBM Research have recently used anonymised data from GPS sensors in SmartPhones to analyse movement patterns in cities such as Abidjan and Istanbul on behalf of their governments and transport authorities; and to compare those movement patterns with public transport services such as bus routes. When such data is used to alter public transport services so that they better match the end-to-end journey requirements of citizens, an enormous range of individual, social, environmental and economic benefits are realised.

(The origins and destinations of end-to-end journeys made in Abidjan, identified from anonymised SmartPhone GPS data)

(The origins and destinations of end-to-end journeys made in Abidjan, identified from anonymised SmartPhone GPS data)

Finally, we considered data sources and aspects of quality of life relating to what Maslow called “self-actualisation”: the ability of people within the urban environment of our scenario to create lifestyles and careers that are individually fulfilling and that reward creative self-expression. Whilst not direct, measurements of the registration of patents, or of the formation and survival of businesses in sectors such as construction, technology, arts and artisan crafts, relate to those values in some way.

In summary, the exercise showed that a great variety of data is available that relates to the ability of an urban environment to provide Maslow’s hierarchy of needs to people within it. To gain a fuller picture, of course, we would need to repeat the exercise with many other urban contexts at every scale from a single building up to the national, international and geographic context within which the city exists. But this seems a positive start.

Recognising the challenge

Of course, it is far from straightforward to convert these basic ideas and observations into usable techniques for deriving insight and value concerning quality of life from urban data.

What about the things that are extremely hard to measure but which are often vital to quality of life – for example the cash economy? Physical cash is notoriously hard to trace and monitor; and arguably it is particularly important to the lives of many individuals and communities who have the most significant quality of life challenges; and to those who are responsible for some of the activities that detract from quality of life – burglary, mugging and the supply of narcotics, for example.

The Urban Systems Collaborative’s debate also touched briefly on the question of whether we can more directly measure the outcomes that people care about – happiness, prosperity, the ability to provide for our families, for example. Antti Poikola has written an article on his blog, “Vital signs for measuring the quality of life in cities“, based on the presentation on that topic by Samir Menon of Tata Consulting Services. Samir identified a number of “happiness indices” that have been proposed by the UK Prime Minister, David Cameron, the European Quality of Life Survey, the OECD’s Better Life Index, and the Social Progress Index created by economist Michael Porter. Those indices generally attempt to correlate a number of different quantitative indicators with qualitative information from surveys into an overall score. Their accuracy and usefulness is the subject of contentious debate.

As an alternative, Michael Mezey of the Royal Society for the Arts recently collected descriptions of attempts to measure happiness more directly by identifying the location of issues or events associated with positive or negative emotions – such as parks and pavements fouled by dog litter or displays of emotion in public. It’s fair to say that the results of these approaches are very subjective and selective so far, but it will be interesting to observe what progress is made.

There is also a need to balance our efforts between creating value from the data that is available to us – which is surely a resource that we should exploit – with making sure that we focus our efforts on addressing our most important challenges, whether or not data relevant to them is easily accessible.

And in practise, a great deal of the data that describes cities is still not very accessible or useful. Most of it exists within IT systems that were designed for a specific purpose – for example, to allow building owners to manage the maintenance of their property. Those systems may not be very good at providing data in a way that is useful for new purposes – for example, identifying whether a door is connected to a pavement by a ramp or by steps, and hence how easy it is for a wheelchair user to enter a building.

(Photo by Closed 24/7 of the Jaguar XF whose designers used “big data” analytics to optimise the emotional response of potential customers and drivers)

Generally speaking, transforming data that is useful for a specific purpose into data that is generally useful takes time, effort and expertise – and costs money. We may desire city data to be tidied up and made more readily accessible; just as we may desire a disused factory to be converted into useful premises for shops and small businesses. But securing the investment required to do so is often difficult – this is why open city data is a “brownfield regeneration” challenge for the information age.

We don’t yet have a general model for addressing that challenge, because the socio-economic model for urban data has not been defined. Who owns it? What does it cost to create? What uses of it are acceptable? When is it proper to profit from data?

Whilst in principle the data available to us, and our ability to derive insight and knowledge from it, will continue to grow, our ability to benefit from it in practise will be determined by these crucial ethical, legal and economic issues.

There are also more technical challenges. As any mathematician or scientist in a numerate discipline knows, data, information and analysis models have significant limitations.

Any measurement has an inherent uncertainty. Location information derived from Smartphones is usually accurate to within a few meters when GPS services are available, for example; but only to within a few hundred meters when derived by triangulation between mobile transmission masts. That level of inaccuracy is tolerable if you want to know which city you are in; but not if you need to know where the nearest defibrilator is.

These limitations arise both from the practical limitations of measurement technology; and from fundamental scientific principles that determine the performance of measurement techniques.

We live in a “warm” world – roughly 300 degrees Celsius above what scientists call “absolute zero“, the coldest temperature possible. Warmth is created by heat energy; that energy makes the atoms from which we and our world are made “jiggle about” – to move randomly. When we touch a hot object and feel pain it is because this movement is too violent to bear – it’s like being pricked by billions of tiny pins. This random movement creates “noise” in every physical system, like the static we hear in analogue radio stations or on poor quality telephone lines.

And if we attempt to measure the movements of the individual atoms that make up that noise, we enter the strange world of quantum mechanics in which Heisenberg’s Uncertainty Principle states that the act of measuring such small objects changes them in unpredictable ways. It’s hardly a precise analogy, but imagine trying to measure how hard the surface of a jelly is by hitting it with a hammer. You’d get an idea of the jelly’s hardness by doing so, but after the act of “measurement” you wouldn’t be left with the same jelly. And before the measurement you wouldn’t be able to predict the shape of the jelly afterwards.

(A graph from my PhD thesis showing experimental data plotted against the predictions of an analytic. Notice that whilst the theoretical prediction (the smooth line) is a good guide to the experimental data, that each actual data point lies above or below the line, not on it. In addition, each data point has a vertical bar expressing the level of uncertainty involved in its measurement. In most circumstances, data is uncertain and theory is only a rough guide to reality.)

Even if our measurements were perfect, our ability to understand what they are telling us is not. We draw insight into the behaviour of a real system by comparing measurements of it to a theoretical model of its behaviour. Weather forecasters predict the weather by comparing real data about temperature, air pressure, humidity and rainfall to sophisticated models of weather systems; but, as the famous British preoccupation with talking about the weather illustrates, their predictions are frequently inaccurate. Quite simply this is because the weather system of our world is more complicated than the models that weather forecasters are able to describe using mathematics; and process using today’s computers.

This may all seem very academic; and indeed it is – these are subjects that I studied for my PhD in Physics. But all scientists, mathematicians and engineers understand them; and whether our work involves city systems, motor cars, televisions, information technology, medicine or human behaviour, when we work with data, information and analysis technology we are very much aware and respectful of their limitations.

Most real systems are more complicated than the theoretical models that we are able to construct and analyse. That is especially true of any system that includes the behaviour of people – in other words, the vast majority of city systems. Despite the best efforts of psychology, social science and artificial intelligence we still do not have an analytic model of human behaviour.

For open data and Smarter Cities to succeed, we need to openly recognise these challenges. Data and technology can add immense value to city systems – for instance, IBM’s “Deep Thunder” technology creates impressively accurate short-term and short-range predictions of weather-related events such as flash-flooding that have the potential to save lives. But those predictions, and any other result of data-based analysis, have limitations; and are associated with caveats and constraints.

It is only by considering the capabilities and limitations of such techniques together that we can make good decisions about how to use them – for example, whether to trust our lives to the automated analytics and control systems involved in anti-lock braking systems, as the vast majority of us do every time we travel by road; or whether to use data and technology only to provide input into a human process of consideration and decision-making – as takes place in Rio when city agency staff consider Deep Thunder’s predictions alongside other data and use their own experience and that of their colleagues in determining how to respond.

In current discussions of the role of technology in the future of cities, we risk creating a divide between “soft” disciplines that deal with qualitative, subjective matters – social science and the arts for example; and “hard” disciplines that deal with data and technology – such as science, engineering, mathematics.

In the most polarised debates, opinion from “soft” disciplines is that “Smart cities” is a technology-driven approach that does not take human needs and nature into account, and does not recognise the variability and uncertainty inherent in city systems; and opinion from “hard” disciplines is that operational, design and policy decisions in cities are taken without due consideration of data that can be used to inform them and predict their outcomes. As Stephan Shakespeare wrote in the “Shakespeare Review of Public Sector Information“, “To paraphrase the great retailer Sir Terry Leahy, to run an enterprise without data is like driving by night with no headlights. And yet that is what government often does.”

There is no reason why these positions cannot be reconciled. In some domains “soft” and “hard” disciplines regularly collaborate. For example, the interior and auditory design of the Jaguar XF car, first manufactured in 2008, was designed by re-creating the driving experience in a simulator at the University of Warwick, and analysing the emotional response of test subjects using physiological sensors and data. Such techniques are now routinely used in product design. And many individuals have a breadth of knowledge that extends far beyond their core profession into a variety of areas of science and the arts.

But achieving reconciliation between all of the stakeholders involved in the vastly complex domain of cities – including the people who live in them, not just the academics, professionals and politicians who study, design, engineer and govern them – will not happen by default. It will only happen if we have an open and constructive debate about the capabilities and the limitations of data, information and technology; and if we are then able to communicate them in a way that expresses to everyone why Smarter City systems will improve their quality of life.

(“Which way to go?” by Peter Roome)

What’s next?
It’s astonishing and encouraging that we could use a model of individual consciousness to navigate the availability and value of data in the massively collective context of an urban scenario. To continue developing an understanding of the ability of information and technology to contribute to quality of life within cities, we need to expand that approach to explore the other dimensions we identified that affect perceptions of quality of life: culture, age and family status, for example; and within both larger and smaller scales of city context than the “district” scenario that we started with.

And we need to compare that approach to existing research work such as the Liveable Cities research collaboration between UK Universities that is establishing an evidence-based technique for assessing wellbeing; or the IBM Research initiative “SCRIBE” which seeks to define the meaning of and relationships between the many types of data that describe cities.

As a next step, the Urban Systems Collaborative attendees suggested that it would be useful to consider how people in different circumstances in cities use data, information and technology to take decisions:  for example, city leaders, businesspeople, parents, hostel residents, commuters, hospital patients and so forth across the incredible variety of roles that we play in cities. You can find out more about how the Collaborative is taking this agenda forward on their website.

But this is not a debate that belongs only within the academic community or with technologists and scientists. Information and technology are changing the cities, society and economy that we live in and depend on. But that information results from data that in large part is created by all of our actions and activities as individuals, as we carry out our lives in cities, interacting with systems that from a technology perspective are increasingly instrumented, interconnected and intelligent. We are the ultimate stakeholders in the information economy, and we should seek to establish an equitable consensus for how our data is used; and that consensus should include an understanding and acceptance between all parties of both the capabilities and limitations of information and technology.

I’ve written before about the importance of telling stories that illustrate ways in which technology and information can change lives and communities for the better. The Community Lovers’ Guide to Birmingham is a great example of doing this. As cities such as Birmingham, Dublin and Chicago demonstrate what can be achieved by following a Smarter City agenda, I’m hoping that those involved can tell stories that will help other cities across the world to pursue these ideas themselves.

(This article summarises a discussion I chaired this week to explore the relationship between urban data, technology and quality of life at the Urban Systems Collaborative’s London workshop, organised by my ex-colleague, Colin Harrison, previously an IBM Distinguished Engineer responsible for much of our Smarter Cities strategy; and my current colleague, Jurij Paraszczak, Director of Industry Solutions and Smarter Cities for IBM ResearchI’m grateful for the contributions of all of the attendees who took part. The article also appears on the Urban Systems Collaborative’s blog).

Gain and responsibility: five business models for sustainable cities

(Photo by Mark Vauxhall of public Peugeot Ions on Rue des Ponchettes, Nice, France)

It’s strange how you can find inspiration in the most surprising places; and the first time I came across the philosophy of sustainability at the heart of big business was certainly unexpected.

Five years ago I was creating a business model in a UK city for a car-sharing scheme using social media (which at the time was a new technology); the scheme was being put together by a collaboration of technology entrepreneurs, University researchers and local employers who wanted to offer the scheme to their employees as a benefit in kind. What we lacked was a business partner with expertise in offering transport services to consumers.

A colleague suggested we speak to an international car rental company for whom they’d recently run an innovation workshop. Initially, we were sceptical: why would a car rental company encourage people to share cars – in other words, to need to hire less of them?

Nevertheless, we called the global Vice President of Sales of the company concerned. This person was responsible for the sales performance of a company in an extremely competitive, commoditised market, so we were expecting the social and environmental philosophy behind our proposal to be given little consideration compared to its revenue-earning potential.

Instead, I remember feeling as if I was being blown away down the telephone line by  his enthusiasm for sustainable business. The reason he had spent his career making a car rental company as successful as possible was his belief that it was the most viable business model for sustainable transport of its time: hire cars are much more effective than public transport for some journeys; and because they are heavily used throughout their lives, the environmental cost of manufacturing and decommissioning them is much less per mile travelled than for privately owned vehicles.

The proposition that technology offers to the sustainability debate – whether in Smarter Cities, intelligent transport or supply-chain optimisation – is to enable business models that create better social and environmental outcomes. In some cases, those outcomes are the objectives of a business; but more often they are the side effects of business operations whose objectives are to create financial returns. So in order to justify investments in technologies or practises that promote sustainability, we need to do just what the car rental company’s Vice President had done early in his career: think creatively about how to balance social and environmental outcomes with the financial imperatives of our existing economic systems.

We’ll need to find that balance in order to develop realistic business models for Smarter Cities. It will not always be an easy balance to find; and finding it will sometimes be a controversial process. But five approaches can already be seen that show how it can be achieved in different ways.

1. Cross-city Collaborations

Many initiatives that contribute to city-wide outcomes require either co-ordinated action across city systems; or an investment in one system to achieve an outcome that is not a simple financial return within that system. For example, the ultimate objective of many changes to transportation systems is to improve economic growth and productivity, or to reduce environmental impact.

Such initiatives are often shaped and carried out by a group of collaborating stakeholders in a city – perhaps including the City Council, nearby Universities, local businesses and community groups, and private sector partners.

To attract the various forms of investment that are required to support a programme of “Smart” initiatives, these partnerships need to be decision-making entities, not discussion groups. Investors will look for a history of collective action to achieve clear, shared objectives; and for a mature approach to the mutual management of risk in delivering projects.

Such partnerships take time to form, and it is notable that in last year’s Technology Strategy Board Future Cities Demonstrator competition, most of the shortlisted entries had been prepared by collaborations in cities such as Glasgow and Peterborough that had existed for some time before the competition began. Other examples include the Dublinked information-sharing partnership in Dublin, Ireland, and the Sustainable Dubuque partnership in Dubuque, Iowa. I wrote about these examples and discussed how they form and operate successfully, in “Smart ideas for everyday cities” last December.

2. Scaling-up Social Enterprise

Social enterprise is a broad category of private businesses which in some way commit themselves to social and/or environmental objectives against which they audit themselves alongside their financial performance – a practise known as triple bottom-line accounting.

Given the similarities between triple-bottom-line accounting and the objectives of “Smarter” initiatives, it’s not surprising that social enterprises are carrying out a great deal of “Smart City” activity. They often use innovative, technology-enabled business models that combine elements of sectors such as food, energy and transport. A good example is “Casserole Club“, which uses social media as the basis of a peer-to-peer model which connects people who are unable to cook for themselves with people who are willing to cook for, and visit, others.

(Photo by Mermaid of the People’s Supermarket in Lamb’s Conduit Street, London, a social enterprise that aims to promote social cohesion by supporting local, independent food producers)

Social enterprises have a powerful potential to contribute to Smarter City objectives. They tend to create employment opportunities where they are most needed, for example – 39% of all social enterprises are working in the most deprived communities in the UK, in comparison to 13% of SMEs. And they are a significant contribution to the overall economy – in the UK,  a recent government report found that the sector employs more than 2 million people, is estimated to have total annual incomes of £163 billion and to contribute £55 billion Gross Value Added – about 14% of the national total. Social enterprise is 13% of Sweden’s GDP and 21% of Finland’s GDP; and 4 in 10 residents of the USA– the world’s flagship private enterprise economy – are members of a co-operative of some sort. Worldwide, social enterprises employ over 100 million people with a turnover of £1.1 trillion. That’s big business.

Many social enterprises are entirely independent ventures. There is great potential for cities to recognise the alignment between their philosophy and Smarter City objectives; and to support their role in achieving them. When the resources and assets of large, formal organisations are made available to local, social innovation, the results can be tremendously powerful.

In Resilience, Andrew Zolli gives the example of the Kilimo Salama scheme in Kenya which provides affordable insurance for subsistence farmers by using remote weather monitoring to trigger payouts via mobile phones, rather than undertaking expensive site visits to assess claims. This is a good example of large-scale infrastructures operated by formal institutions – mobile payments systems and remote weather monitoring technology – that have been adapated to the needs of a community which previously didn’t benefit from them – the farmers – by a creative, socially-minded organisation.

Awareness is growing of the importance of this sector; the alignment of its values with the objectives of Smarter Cities (as described by Knight Foundation Vice President Carol Coletta recently); and of the great potential of information economy technologies, especially social media, to empower it (see this article by ex-IBM Vice President Irving Wladawsky-Berger). It will be a major part of the economy and society of the sustainable cities of the future.

3. Creativity in finance

We don’t consider banks, insurers and other financial institutions enough in the world of Smarter Cities. Public sector and research grants will not finance the wholescale transformation of our cities; we will have to look to the broader financial markets for that support.

New forms of financial service are emerging from the online, collaborative economy such as crowdfunding and peer-to-peer lending. In the UK, the Trillion Fund, for example, offer a range of investment schemes in renewable energy to the retail investment market; and a variety of local and electronic currencies are emerging.

(Photo of a smart parking meter in San Francisco by Jun Seita)

More traditional financial institutions are also exploring the new products that they can create to support this market; and we are sure to need the depth of resources they can make available. Smarter city services create assets and offer services which people and businesses pay to use. With the appropriate banking, insurance and investment skills, those assets and services and the incomes they generate can be packaged as investable financial products. Citibank, IBM and Streetline partnered last year to offer a financing scheme for “Smart Parking” solutions, for example.

Citigroup were also amongst those who supported the recent “Innovation and the City” report by the Centre for an Urban Future and the Robert F. Wagner Graduate School of Public Service which recommended 15 policies for consideration by the next Mayor of New York, many of which are financial innovations intended to support Smarter City outcomes.

In recent years, the banking industry has not always been associated with social outcomes. But some financial institutions are very clearly social organisations – such as the credit unions to which 87 million US citizens belong; and many banks have social elements in their original charters – as Hancock Bank demonstrated when responding to Hurricane Katrina in 2005. They have the means, method and opportunity to contribute enormously to the development of Smarter, sustainable cities and we should encourage them to do so.

4. Making traditional business sustainable

A very many of our lives depend for our basic needs – not to mention our entertainment and leisure – on global supply chains operated on astounding scales by private sector businesses. Staples such as food, cosmetics and cleaning products consume a vast proportion of the world’s fresh water and agricultural capacity; and a surprisingly small number of organisations are responsible for a surprisingly large proportion of that consumption as they produce the products and services that many of us use.

The social and environmental impact of those supply chains is immense, and, of course, highly controversial. A notable recent development, though, is the number of statements made by the leaders of companies involved in them asserting the importance of evolving their businesses to adopt more sustainable practises. The CEOs of  Unilever and Tesco have made statements of intent along these lines recently, and IBM and Hilton Hotels have described the progress they have already made.

Any analysis of the motivations for such statements and the outlook for their impact also enters areas of great controversy, of course. But need there be any fundamental contradiction between profitable enterprise and sustainability?

Richard Powers’ 1998 novel “Gain” tells the story of “incorporation”, the creation of companies as entities with a legal and financial existence separate from that of the people who start, manage and work for them. It contrasts the story of three Irish brothers arriving in 19th Century New York who make a living manufacturing soap, and the subsequent growth of their business into a vast 20th Century multinational corporation; with that of a woman dying from a cancer likely to have been caused by exposure to the waste products of the industrial operations of that corporation. Its complex, nuanced story explores both the facility of private enterprise to create wealth for anybody; and its potential for ambivalence towards the fair distribution of that wealth, and towards its impact.

(An example from Indonesia of the deforestation that can be the result of palm oil production. Photo by the Rainforest Action Network)

Gain’s narrative makes clear that the model of private enterprise does not lead inevitably to any specific outcome. The success, sustainability and equitability of any enterprise, social or private, are ultimately the result of the actions and decisions of those involved in it – whether they run it; work for it; supply it or buy from it.

All of us can assert influence on the sustainability of business, through our buying decisions as consumers and by campaigning. Jared Diamond explored in depth how we can do so effectively in his book “Collapse“. But the role of the investment markets is also crucial.

In one sense, the markets are already playing a role: in a recent report, 53% of fund managers collectively responsible for $14 trillion of assets indicated that they had divested stocks, or chosen not to invest in stocks, due to concerns over the impact of climate change on the businesses concerned.

However, that is a negative, not a positive action. It is driven by the impact of climate change on business, not by the impact of business on climate change. To grossly generalise, whilst the CEOs of Tesco and Unilever, for example, are following Jared Diamond’s argument that sustainability is simply good, long-term business sense; by and large investors are largely ambivalent to this argument. They choose which companies to invest in based first and foremost on the prospect of their short-term financial returns.

So whatever motivations influence the CEOs of companies that manage the vast supply chains that play such a major role on our planet to adopt sustainability as a business objective, it is not to win short-term investment. It may be to appeal to consumer opinion; or it may be to attract investors who take a longer-view.

One thing is certain, though. Our world as a whole, and the cities in which life is concentrated, will not become socially and environmentally equitable and sustainable unless private businesses adopt sustainable strategies. So it is in all of our interests to encourage them to do so, whilst putting in place the governance to ensure that those strategies are carried out effectively.

5. Encouraging entrepreneurs everywhere

Smarter city services are innovations that change the relationships between the creation of social and financial value and the consumption of resources: they involve new ways of doing things; and they often depend on consumers choosing to buy different products or use different services than those that they are accustomed to.

Investing in a new product or service on the basis that consumers will change their behaviour in order to buy or use it is a risky business. Too risky, in many cases, for traditional institutions.

In the developed world, public sector finances are under extreme pressure. Economic growth is slow, so tax returns are stagnant. Populations are, on the whole, growing older, and requiring increased levels of healthcare. So public sector has little ability to make risky investments.

But the private sector is also under pressure. The same slow economic growth, coupled with competition from rapidly growing countries in emerging markets, means that money is short and the future is uncertain. Risky investments are unlikely here, too.

(The QR code that enabled Will Grant of Droplet to buy me a coffee at Innovation Birmingham using Droplet’s local smartphone payment solution, an example of a Smarter City service created by an entrepreneurial company.)

But some investors are seeking new investment opportunities, even risky ones – especially as the rate of return offered by many traditional forms of investment is so poor. One consequence is that many Smarter Cities services are delivered by entrepreneurial companies backed by venture capital. Examples include “Droplet“, a smartphone payment system operating in Birmingham and London; and Shutl, who provide a marketplace for home delivery services through a community of independent couriers in London.

However, many cities face a challenge in exploiting the ability of entrepreneurial businesses to deliver Smarter services.

Such businesses may be inherently risky; but those that succeed still do so by minimising risk wherever possible. One way to minimise the risk involved in any new business is to operate that business as closely as possible to its largest possible market. So entrepreneurial businesses that offer services to city ecosystems (as opposed to national or international customers) tend to start in and provide services to capital cities.

If cities that are not capitals wish to encourage this sort of entrepreneurial business, they will need to make themselves attractive in some other way: by offering tailored programmes of support (as IBM and Sunderland Software City are doing); by making available unique assets created by geography, culture or existing business clusters (such as the cluster of wireless technology companies in Cambridge); or by exploiting the strength of local teaching and research (as Birmingham are doing through institutions such as Birmingham Ormiston Academy and the Aston Engineering Academy; or as “Science Vale” has long done in Oxfordshire).

Entrepreneurial businesses can and will make a huge contribution to Smarter Cities; and those that succeed will eventually scale their businesses to cities across the world. But in order to benefit from their creativity early, cities that are not capitals will need to take action to attract and support them.

Evolution and revolution

As I remarked in my last article on this blog, “business as usual” will not deliver Smarter, sustainable cities. We would not be so collectively concerned with this subject otherwise. But while we will need new approaches, sometimes revolutionary ones; we are not entering wholly uncharted territory.

We will need new cross-city collaborations; but the idea of such collaborations is not new. The collaboration that submitted Peterborough’s short-listed proposal for the Technology Strategy Board’s Future Cities Demonstrator has its origins in the Greater Peterborough Partnership which was formed in 1994, for example.

Social enterprises and sustainable business models are hardly new, either – co-operative businesses have existing for centuries, and IBM, Sony and Cadbury are just three examples of private businesses started 50 to 100 years ago by Quakers with a strong sense of civic and community duty.

So whilst change is required, we are not entering the unknown. Our challenge is rather to realise that there is no single approach that can be adopted in all circumstances. All of the approaches I’ve described in this article – and doubtless others too – will be needed. But not all of them will be popular all of the time.

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