Reclaiming the “Smart” agenda for fair human outcomes enabled by technology

(Lucie & Simon’s “Silent World“, a series of photographs of cities from which almost all trace of people has been removed.)

Over the last 5 years, I’ve often used this blog to explore definitions of what a “Smart City” is. The theme that’s dominated my thinking is the need to synthesise human, urban and technology perspectives on cities and our experience of them.

The challenge with attempting such a broad synthesis within a succinct definition is that you end up with a very high-level, conceptual definition – one that might be intellectually true, but that does a very poor job of explaining to the wider world what a Smart City is, and why it’s important.

We need a simple, concise definition of Smart Cities that ordinary people can identify with. To create it, we need to reclaim the “Smart” concept from technologies such as analytics, the Internet of Things and Big Data, and return to it’s original meaning – using the increasingly ubiquitous and accessible communications technology enabled by the internet to give people more control over their own lives, businesses and communities.

I’ve written many articles on this blog about the futile and unsophisticated argument that rages on about whether Smart Cities should be created by “top-down” or “bottom-up” approaches: clearly, anything “Smart” is a subtle harmonisation of both.

In this article, I’d like to tackle an equally unconstructive argument that dominates Smart Cities debates: are Smart Cities defined by the role of technology, or by the desire to create a better future?

It’s clear to me that anything that’s really “Smart” must combine both of those ideas.

In isolation, technology is amoral, inevitable and often banal; but on the other hand a “better future” without a means to achieve it is merely an aspiration, not a practical concept. Why is it “Smart” to want a better future and better cities today in a way that wanting them 10, 20, 50 or 100 years ago wasn’t?

Surely we can agree that focussing our use of a powerful and potentially ubiquitously accessible new technology – one that’s already transforming our world – on making the world a better place, rather than just on making money, is an idea worthy of the “Smart” label?

In making this suggestion, I’m doing nothing more than returning to the origin of the term “Smart” in debates in social science about the “smart communities” that would emerge from our new ability to communicate freely and widely with each other following the emergence of the Internet.

Smart communities are enabled by ubiquitous access to empowering technology

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 – the speed of a brisk walk. By contrast, in January 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.

(In the 1960s, the mobile phone-like “communicators” used in Star Trek were beyond our capability to manufacture; but they were used purely for talking. Similarly, while William Gibson’s 1980s vision of “cyberspace” was predictive and ambitious in its descriptions of virtual environments and data visualisations, the people who inhabited it interacted with each other almost as if normal space has simply been replaced by virtual space: there was no sense of the immense power of social media to enable new connections.)

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. Along with mobile devicese-commerce technology and analytics, social media has made it dramatically easier for individuals, communities and small businesses anywhere around the world with the potential to transact with each other to make contact and interact without needing the enormous supply chains and sales and marketing channels that previously made such activity the prerogative of large, multi-national corporations.

It was in a workshop with social scientists at the University of Durham that I first became aware that “Smart” concepts originated in social science in the 1990s and pre-date the famous early large-scale technology infrastructure projects in cities like Masdar and Songdo. The term was coined to describe the potential for new forms of governance, citizen engagement, collective intelligence and stakeholder collaboration enabled by Internet communication technologies. The hope was that new forms of exchange and contract between people and organisations would create a better chance of realising the underlying outcomes we really want – health, happiness and fulfilment:

“The notion of smart community refers to the locus in which such networked intelligence is embedded. A smart community is defined as a geographical area ranging in size from a neighbourhood to a multi-county region within which citizens, organizations and governing institutions deploy and embrace NICT [“New Information and Communication Technologies”] to transform their region in significant and fundamental ways (Eger 1997). In an information age, smart communities are intended to promote job growth, economic development and improve quality of life within the community.”

(Amanda Coe, Gilles Paquet and Jeffrey Roy, “E-Governance and Smart Communities: A Social Learning Challenge“,  Social Science Computer Review, Spring 2001)

But technology’s not Smart unless it’s used to create human value

It’s no surprise that technology companies such as Cisco, Siemens and my former employer IBM came to similar realisations about the transformative potential of digital technology in addressing societal as well as business challenges as technology spread from the back office into the everyday world, leading, for example, to the launch of IBM’s “Smarter Planet” initiative in 2008, a pre-cursor to their “Smarter Cities” programme.

Let’s pause at this point to say: that’s a tremendously exciting idea. A technology company – Apple – recently recorded the largest corporate profit in the history of business. Microsoft’s founder Bill Gates was just recognised as the richest person on the planet. Technology companies make enormous profits, and they feed significant portions of those profits back into research and development. Shouldn’t it be wonderful that some of those resources are invested into exploring how to make cities, communities and people more successful?

(The Dubuque water and energy portal, showing an individual household insight into it's conservation performance; but also a ranking comparing their performance to their near neighbours)

(The Dubuque water and energy portal, showing an individual household insight into it’s conservation performance; but also a ranking comparing their performance to their near neighbours)

IBM, for example, has invested millions of dollars of effort in implementing Smarter Cities projects in cities such as Dubuque through the IBM Research “First of a Kind” programme; and has helped over a hundred cities worldwide develop new initiatives and strategies through the charitable “Smarter Cities Challenge” – advising Kyoto on how to become a more “walkable” city, for instance.

So what’s the problem?

Large technology corporations are often criticised in debates on this topic for their size, profitability and “top-down” approaches – and the local authorities who work with them are often criticised too. In my experience, that criticism is based on an incomplete understanding of the people involved, and how the projects are carried out; and I think it misses the point.

The real question we should be asking is more subtle and important: what happens to the social elements of an idea once it becomes apparent to businesses both large and small that they can make money by selling the technologies that enable it?

I know very well the scientists, engineers and creatives at many of the companies, social enterprises and government bodies – of any size – who are engaged in Smart Cities initiatives. They are almost universally extremely bright, well intentioned and humane, and fully capable of talking with passion about the social and environmental value of their work. “Top-down” is at best a gross simplification of the projects that they carry out, and at worst a gross misrepresentation. Their views dominated the early years of the Smart Cities market as it developed.

But as the market has matured and grown, the focus has switched from research, exploration and development to the marketing and selling of well-defined product and service offerings. Amidst the need to promote those offerings to potential customers, and to differentiate them against competitors, it’s easy for the subtle intertwining of social, economic, environmental and technology ideas to be drowned out.

That’s what led to the unfortunate statement that armed Professor Adam Greenfield with the ammunition he needed to criticise the Smart Cities movement. A technology company that I won’t name made an over-reaching and mis-guided assertion that Smart Cities would create “autonomous, intelligently functioning IT systems that will have perfect knowledge of users’ habits” – blissfully ignoring the fact that such perfection is scientifically and philosophically impossible, not to mention inhuman and undesirable.

As a scientist-turned-technologist-turned-wannabe-urbanist working in this field, and as someone who’s been repeatedly inspired by the people, communities, social scientists, social innovators, urban designers and economists I’ve met over the past 5 years, I started writing this blog to explore and present a more balanced, humane vision of a Smart City.

Zen and the art of Smart Cities: opposites should create beautiful fusions, not arguments

Great books change our lives, and one of many that has changed mine is “Zen and the Art of Motorcycle Maintenance” by Robert M. Pirsig. Pirsig explores the relationship between what he called “romantic” perspectives of life, which focus on emotional meaning and value “quality”, and “rational” perspectives, which focus on the reasons our world behaves in the way that it does and value “truth”. He argues that early Greek philosophers didn’t distinguish between “quality” and “truth”, and that by considering them together we can learn to value things that are simultaneously well-intentioned and well-formed.

This thinking is echoed in Alan Watts’ “The Way of Zen“, in which he comments on the purpose of the relentless practise of technique that is part of the Zen approach to art that:

“The very technique involves the art of artlessness, or what Sabro Hasegawa has called the ‘controlled accident’, so that paintings are formed as naturally as the rocks and grasses which they depict”

(Alan Watts, “The Way of Zen“)

In other words, by working tirelessly to perfect their technique – i.e. their use of tools – artists enable themselves to have “beautiful accidents” when inspiration strikes.

(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.)

Modern technologies from social media to Smartphones to Cloud computing and Open Source software are both incredibly powerful and, compared to any previous generation of technology, incredibly cheap.

If we work hard to ensure that they can be used to access and manipulate the technologies that will inevitably be used to make the operations of city infrastructures and public services more efficient, then they have incredible potential to be a tool for people everywhere to shape the world around them to their own advantage; and for us to collectively create a world that is fairer, healthier and more resilient.

But unless we re-claim the word “Smart” to describe those outcomes, the market will drive our energy and resources in the direction of narrower financial interests.

The financial case for investment in Smart technologies is straightforward: as the costs of smartphones, sensors, analytics, and cloud computing infrastructure reduce 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.

So how can we adapt that investment drive to create the outcomes that we want?

Can responsible business create a better world?

Some corporate behaviours promote these outcomes, driven by the voting and buying powers of citizens and consumers. Working for Amey, for example, my customers are usually government organisations who serve an electorate; or private sector companies who are regulated by government bodies. In both cases, there is a direct chain of influence leading from individual citizen needs and perceptions through to the way we operate and deliver our services. If we don’t engage with, respect and meet those needs and expectations, we will not be successful. I can observe that influence at work driving an ethic of service, care and responsibility throughout our business at Amey, and it’s been an inspiration to me since joining the company.

UniLever have taken a similar approach, using consumer desires for sustainable products to link corporate performance to sustainable business practices; and Jared Diamond wrote extensively about successful examples of socially and environmentally sustainable resource extraction businesses, such as Chevron’s sustainable operations in the Kutubu oilfield in Papua New Guinea, in his book “Collapse“. Business models such as social enterprise and the sharing economy also offer great potential to link business success to positive social and environmental outcomes.

But ultimately our investment markets are still strongly focused on financial performance, and reward the businesses that make the most money with the investment that enables them to grow. This is why many social enterprises do not scale-up; and why many of the rapidly growing “sharing economy” businesses currently making the headlines have nothing at all to do with sharing value and resources, but are better understood as a new type of profit-seeking transaction broker.

Responsible business models are a choice made by individual business leaders, and they depend for their successful operation on the daily choices and actions of their employees. They are not a market imperative. For as long as that is the case, we cannot rely on them to improve our world.

Policy, legislation and regulation

I’ve quoted from Jane Jacobs on many occasions on this blog that “private investment shapes cities, but social ideas (and laws) shape private investment”.

It’s a source of huge frustration to me that so much of the activity in the Smart Cities community ignores that so obviously fundamental principle, and focuses instead on the capabilities of technology or on projects funded by research grants.

The recent article reporting a TechUK Smart Cities conference titled “Milton Keynes touted as model city for public sector IoT use” is a good example. Milton Keynes have many Smart City projects underway that are technologically very interesting, but every one of them is funded by a significant grant of funds from a central government department, a research or innovation funding body, or a technology company. Not a single project has been paid for by a sustainable, re-usable business case. Other cities can aspire to emulate Milton Keynes all they want, but they won’t win research and innovation funding to re-deploy solutions that have already been proven.

Research and innovation grants provide the funding that proves for the first time that a new idea is viable. They do not pay for that idea to be enacted across the world.

(Shaleen Meelu and Robert Smith with Hugh Fearnley-Whittingstall at the opening of the Harborne Food School. The School is a Community Interest Company that promotes healthy, sustainable approaches to food through courses offered to local people and organisations)

(Shaleen Meelu and Robert Smith with Hugh Fearnley-Whittingstall at the opening of the Harborne Food School. The School is a Community Interest Company that promotes healthy, sustainable approaches to food through courses offered to local people and organisations)

Policy, legislation and regulation are far more effective tools for enabling widespread change, and are what we should be focussing our energy and attention on.

The Social Value Act requires that public authorities, who spend nearly £200 billion every year on private sector goods and services, procure those services in a way that creates social value – for example, by requiring that national or international service providers engage local small businesses in their supply chains.

In an age in which private companies are investing heavily in the use of digital technology because it provides them with by far the most powerful tool to increase their success, surely local authorities should fulfil their Social Value Act obligations by using procurement criteria to ensure that those companies employ that same tool to create social and environmental improvements in the places and communities in which they operate?

Similary, the British Property Federation estimates that £14 billion is invested in the development of new property in the UK each year. If planning and development frameworks oblige that property developers describe and quantify the social value that will be created by their developments, and how they will use technology do so – as I’ve promoted on this blog for some time now, and as the British Standards Institute have recently recommended – then this enormous level of private sector investment can contribute to investing in technology for public benefit; just as those same frameworks already require investment in public space around commercial buildings.

The London Olympic Legacy Development Corporation have been following this strategy in support of the Greater London Authority’s Smart London Plan. As a result, they are securing private sector investment in deploying technology not only to redevelop the Olympic park using smart infrastructure; but also to ensure that that investment benefits the existing communities and business economies in neighbouring areas.

A Smart manifesto for human outcomes enabled by technology

These business models, policy measures and procurement approaches are bold, difficult measures to enact. They are not as sexy as Smartphones, analytics and self-driving cars. But they are much more important if what we want to achieve are positive human outcomes, not just financially successful technology companies and a continuous stream of research projects.

What will make it more likely that businesses, local governments and national governments adopt them?

Citizen understanding. Consumer understanding. A definition of smart people, places, communities, businesses and governments that makes sense to everyone who votes, works, stands for election, runs a business, or buys things. In other words, everyone.

If that definition doesn’t include the objective of making the world a healthier, happier, fairer, more sustainable place for everyone, then it’s not worth the effort. If it doesn’t include harnessing modern technology, then it misses the point that human ingenuity has recently given us a phenomenal new toolkit that make possible things that we’d never previously dreamt of.

I think it should go something like this:

“Smart people, places, communities, businesses and governments work together to use the modern technologies that are changing our world to make it fairer and more sustainable in the process, giving everyone a better chance of a longer, healthier, happier and more fulfilling life.”

I’m not sure that’s a perfect definition; but I think it’s a good start, and I hope that it combines the right realisation that we do have unprecedented tools at our disposal with the right sentiment that what really matters is how we use them.

(I’d like to thank John Murray of Scottish Enterprise for a useful discussion that inspired me to write this article)

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Better stories for Smarter Cities: three trends in urbanism that will reshape our world

(Stories of Mumbai: an exploration of Mumbai’s history of urban development, and its prospects for the future, using storytelling and puppetshows, by the BMW Guggenheim Lab)

Towards the end of last year, it became clearer how cities could take practical steps to position themselves to transform to meet the increasing economic, environmental and social challenges facing them; and to seek investment to support those transformations, as I described in “Smart Ideas for Everyday Cities“.

Equally important as those practical approaches to organisation, though, are the conceptual tools that will shape those transformations. Across fields as diverse as psychology, town planning, mathematics, construction, service-design and technology, some striking common themes have emerged that are shaping those tools.

Those themes imply that we will need to take radically different approaches to city systems driven by the astonishing, exciting and sometimes disturbing changes that we’re likely to see taking place increasingly rapidly in our world over the next decade.

To adopt the terminology of Irene Ng, a Researcher in new economic models and service science at the University of Warwick, these changes will create both “needs-led” and “capability-led” drivers to do things differently.

“Needs-led” changes will be driven by the massive growth taking place in the global middle class as economies across the world modernise. The impacts will be varied and widespread, including increasing business competition in a single, integrated economy; increasing competition for resources such as food, water and energy; and increasing fragility in the systems that supply those resources to a population that is ever more concentrated in cities. We are already seeing these effects in our everyday lives: many of us are paying more for our food as a proportion of our income than a few years ago.

At a recent lecture on behalf of the International Federation for Housing and Planning and the Association of European Schools of Planning, Sir Peter Hall, Professor of Planning and Regeneration at the Bartlett School of Planning, spoke of the importance of making the growth of cities sustainable through the careful design of the transport systems that support them. In the industrial revolution, as Edward Glaeser described in Triumph of the City, cities grew up around lifts powered by steam engines; Sir Peter described how more recently they have grown outwards into suburbs populated with middle-class car-owners who habitually drive to work, schools, shops, gyms and parks.

This lifestyle simply cannot be sustained – in the developed world or in emerging economies – across such an explosively growing number of people who have the immediate wealth to afford it, but who are not paying the full price of the resources it consumes. According to the exhibition in Siemens’ “Crystal” building, where Sir Peter’s lecture was held, today’s middle class is consuming resources at one-and-a-half times the rate the world creates them; unless something changes, the rate of growth of that lifestyle will hurl us towards a global catastrophe.

So, as the Collective Research Initiatives Trust (CRIT) observed in their study of the ongoing evolution of Mumbai, “Being Nicely Messy“, the structure of movement and the economy will have to change.

(Siemens’ Crystal building in London, a show case for sustainable technology in cities, photographed by Martin Deutsch)

Meanwhile, the evolution of technology is creating incredible new opportunities for “capability-led” change.

In the last two decades, we have seen the world revolutionised by information and communication technologies such as the internet and SmartPhones; but this is only the very start of a transformation that is still gathering pace. Whilst so far these technologies have created an explosion in the availability of information, recent advances in touch-screen technology and speech recognition are just starting to demonstrate that the boundary between the information world and physical, biological and neural systems is starting to disappear.

For example, a paralysed woman recently controlled a robotic arm by thought; and prosthetic limbs, a working gun and living biological structures such as muscle fibre and skin are just some of the things that can be 3D printed on demand from raw materials and digital designs.

What changes to our urban systems will these developments – and the ones that follow them – lead to?

Following the decline of industries such as manufacturing, resource-mining and ship-building,  many post-industrial cities in the developed world are rebuilding their economies around sectors with growth potential, such as environmental technology and creative media. They are also working with the education system to provide their citizens with access to the skills those sectors require.

Supplying the skills that today’s economy needs can be a challenge. Google’s Chairman Eric Schmidt lambasted the British Education system last year for producing insufficient computer programming skills; and a cross-industry report, “Engineering the Future“, laid out the need for increased focus on environmental, manufacturing, technology and engineering skills to support future economic growth in the UK. As the rate of change in science and technology increases, the skills required in a consequently changing economy will also change more rapidly; providing those skills will be an even bigger challenge.

Or will it? How much of a leap forward is required from the technologies I’ve just described, to imagining that by 2030, people will respond to the need for changing skills in the market by downloading expertise Matrix-style to exploit new employment opportunities?

Most predictions of the future turn out to be wrong, and I’m sure that this one will be, in part or in whole. But as an indication of the magnitude of changes we can expect across technology, business, society and our own physical and mental behaviour I expect it will be representative.

Our challenge is to understand how these needs-led and capability-led transformations can collectively create a world that is sustainable; and that is sympathetic to us as human beings and communities. That challenge will be most acute where both needs and capabilities are most concentrated – in cities. And across economics, architecture, technology and human behaviour, three trends in urban thinking have emerged – or, at least, become more prominent – in recent years that provide guiding principles for how we might meet that challenge.

The attraction of opposites, part 1: producer and consumer

20120605-005134.jpg

(Photograph of 3D printers by Rob Boudon)

In the Web 2.0 era (roughly 2003-2009), the middle classes of the developed world became connected by “always-on” broadband connections, turning these hundreds of millions of information-consumers into information-producers. That is why in 2007 (and every year since) more new information was created than in all of the previous 5 millenia. Industries such as publishing, music and telecommunications have been utterly transformed as a result.

The disappearance of the boundary between  information, physical and biological systems, and the explosive growth in the population with access to the technologies responsible for that disappearance, will transform every economic and social structure we can imagine through the same producer / consumer revolution.

We can already produce as well as consume transport resources by participating in car-sharing schemes; and energy by exploiting domestic solar power and bio-energy. The falling cost and increasing sophistication of 3D printers are just starting to make it feasible to manufacture some products in the home, particularly in specialist areas such as railway modelling; and platforms such as the Amazon Turk and Slivers of Time can quickly connect producers and consumers in the service industries.

Business-to-business and business-to-consumer marketplaces such as Big Barn and Sustaination provide the same service in local food systems. And the transport industry is evolving to serve these new markets: for instance, Shutl provide a marketplace for home delivery services through a community of independent couriers; and a handful of cities are deploying or planning recycling systems in which individual items of waste are distributed to processing centres through pneumatically powered underground transport networks.

Of course, from the earliest development of farming in human culture, we have all been both producers and consumers in a diversified economy. What’s new is the opportunity for technology to dramatically improve the flexibility, timeliness and efficiency of the value-chains that connect those two roles. Car-sharing not only reduces the amount of fuel used by our journeys; it could reduce the resources consumed by manufacturing vehicles that spend the majority of their lives stationary on drives or in car parks. Markets that more efficiently connect food production, processing and consumption could reduce the thousands of miles that food currently travels between farm and fork, often crossing its own path several times; they could create employment opportunities in small-scale food processing; not to mention reducing the vast quantity of food that is produced but not eaten, and goes to waste.

Irene Ng explores these themes wonderfully in her new book, “Value and Worth: Creating New Markets in the Digital Economy“; they offer us exciting opportunities for economic and social growth, and an evolution towards a more sustainable urban future – if we can harness them in that way.

The attraction of opposites, part 2: little and big

Some infrastructures can be “blunt” instruments: from roads and railway lines which connect their destinations but which cut apart the communities they pass through; to open data platforms which provide vast quantities of data “as-is” but little in the way of information and services customised to the needs of local individuals and communities.

Architects such as Jan Gehl have argued that the design process for cities should concentrate on the life between buildings, rather than on the structure of buildings; and that cities should be constructed at a “human-scale” – medium-sized buildings, not tower-blocks and sky-scrapers; and streets that are walkable and cycle-able, not dominated by cars. In transport, elevated cycleways and pedestrian roundabouts have appeared in Europe and Asia. These structures prevent road traffic infrastructures form impeding the fluid movement of cycling and walking – transport modes which allow people to stop and interact in a city more easily and often than driving.

At a meeting held in London last year to establish the UK’s chapter to the City Protocol Society, Keith Coleman of Capgemini offered a different view by comparing the growth in size of cities to the structure of the world’s largest biological organisms. In particular, Keith contrasted the need to provide infrastructure – such as the Pando forest in Utah, a single, long-lived and vastly extensive root system supporting millions of individual trees that live, grow and die independently – with the need to provide capabilities – such as those encoded in the genes of the Neptune sea grass, which is not a single organism, but rather a genetically identical colony which collectively covers 5% of the Mediterranean sea floor.

The Collective Research Initiatives Trust‘s study of Mumbai, “Being Nicely Messy“, Colin Rowe and Fred Koetter’s “Collage City“, Manu Fernandez’s “Human Scale Cities” project and CHORA’s Taiwan Strait Atlas project have all suggested an approach to urban systems that is more like the Neptune sea grass than the Pando forest: the provision of a “toolkit” for individuals and organisations to apply in their local context

My own work, initially in Sunderland, was similarly informed by the Knight Foundation’s report on the Information Needs of Communities, to which I was introduced by Conn Crawford of Sunderland City Council. It counsels for a process of engagement and understanding between city institutions and communities, in order that the resources of large organisations can be focused on providing the information and services that can be most effectively used by individual citizens, businesses and social organisations.

(The Bristol Pound, a local currency intended to encourage and reinforce local trading synergies.)

Kelvin Campbell of Urban Initiatives has perhaps taken this thinking furthest in the urban context in his concept of “Massive Small” and the “urban operating system”. Similar thinking appears throughout research on resilience in systems such as cities, coral reefs, terrorist networks and financial systems, as described by Andrew Zolli and Ann Marie Healy in “Resilience: Why Things Bounce Back“. And it is reflected in the work that many researchers and professionals across fields as diverse as city planning, economics and technology are doing to understand how institutional city systems can engage effectively with “informal” activity in the economy.

In IBM we have adapted our approach too. To take one example, a few years ago we launched our “Global Entrepreneur” programme, through which we engage directly with small, startup businesses using technology to develop what we call “Smarter Planet” and “Smarter Cities” solutions. These businesses are innovating in specific markets that they understand much better than we do; using operating models that IBM does not have. In turn, IBM’s resources can help them build more resilient solutions more quickly and cost-effectively, and reach a wider set of potential customers across the world.

A civic infrastructure that combines economics and technology and that, whilst it has a long history,  is starting to evolve rapidly, is the local currency. Last year Bristol became the fifth place in the UK to launch its own currency; whilst in Switzerland an alternative currency, the Wir, is thought to have contributed to the stability of the Swiss economy for the last century by providing an alternative, more flexible basis for debt, by allowing repayments to made in kind through bartering, as well as in currency.

Such systems can promote local economic synergy, and enable the benefits of capital fluidity to be adapted to the needs of local contexts. And from innovations in mobile banking in Africa to Birmingham’s DropletPay SmartPhone payment system, they are rapidly exploiting new technologies. They are a clear example of a service that city and economic institutions can support; and that can be harnessed and used by individuals and organisations anywhere in a city ecosystem for the purposes that are most important and valuable to them.

IMG-20121104-00606

(The Co-operative Society building at Avoncroft Museum of Historic Buildings)

Co-operative Governance

It’s increasingly obvious that on their own, traditional businesses and public and civic institutions won’t deliver the transformations that our cities, and our planet, need. The restructuring of our economy, cities and society to address the environmental and demographic challenges we face requires that social, environmental and long term economic goals drive our decisions, rather than short term financial returns alone.

Alternatives have been called for and proposed. In her speech ahead of the Rio +20 Summit, Christine Lagarde, Managing Director of the International Monetary Fund, said that one of the challenges for achieving a sustainable, equitably distributed return to growth following the recent economic challenges was that “externalities” such as social and environmental impacts are not currently included in the prices of goods and services.

I participated last year in a panel discussion at the World Bank’s “Rethinking Cities” conference which asked whether including those costs would incent consumers to chose to purchase sustainably provided goods and services. We examined several ways to create positive and negative incentives through pricing; but also examples of simply “removing the barriers” to making such choices. Our conclusion was that a combination of approaches was needed, including new ideas from game theory and technology, such as “open data”; and that evidence exists from a variety of examples to prove that consumer behaviour can and does adapt in response to well designed systems.

In “Co-op Capitalism“, Noreena Hertz proposed an alternative approach to enterprise based on social principles, where the objectives of collective endeavours are to return broad value to all of their stakeholders rather than to pay dividends to financial investors. This approach has a vital role in enabling communities across the entirety of city ecosystems to harness and benefit from technology in a sustainable way, and is exemplified by innovations such as MyDex in personal information management, Carbon Voyage in transport, and Eco-Island in energy.

New forms of cooperation have also emerged from resilience research, such as “constellations” and “articulations”. All of these approaches have important roles to play in specific city systems, community initiatives and new businesses, where they successfully create synergies between the financial, social and economic capabilities and needs of the participants involved.

But none of them directly address the need for cities to create a sustainable, cohesive drive towards a sustainable, equitable, successful future.

(Photo by Greg Marshall of the rocks known as “The Needles” just off the coast of the Isle of Wight; illustrating the potential for the island to exploit wave and tidal energy sources through the Eco-Island initiative)

In “Smart Ideas for Everyday Cities“, I described an approach that seems to be emerging from the cities that have made the most progress so far. It involves bringing together stakeholders across city systems – representatives of communities; city institutions; owners and operators of city systems and assets such as buildings, transportation and utilities; Universities and schools; and so on – into a group that can not only agree a vision and priorities for the city’s future; but that is empowered to take collective decisions accordingly.

The initiatives agreed by such a group will require individual “special purpose vehicles” (SPVs) to be created according to the specific set of stakeholder interests involved in each case – such as public/private partnerships to build infrastructure or Community Interest Companies and Energy Service Companies to operate local energy schemes. (There are some negative connotations associated with SPVs, which have been used in some cases by private organisations seeking to hide their debt or ownership; but in the Smarter Cities context they are frequently associated with more positive purposes).

Most importantly, though: where a series of such schemes and commercial ventures are initiated by a stable collaboration within a city, investors will see a reliable decision-making process and a mature understanding of shared risk and its management; making each individual initiative more likely to attract investment.

In his analysis of societal responses to critical environmental threats, Jared Diamond noted in his 2005 book “Collapse” that successful responses often emerge when choices are taken by leaders with long-term vested interests, working closely with their communities. In a modern economy, the interests of stakeholders are driven by many timescales – electoral cycles, business cycles, the presence of commuters, travellers and the transient and long-term residents of the city, for example. Bringing those stakeholders together can create a forum that transcends individual timescales, creating stability and the opportunity for a long-term outlook.

A challenge for 2013: better stories for Smarter Cities

Some cities are seizing the agenda for change that I have described in this article; and the very many of us across countries, professions and disciplines who are exploring that agenda are passionate about helping them to do so successfully.

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 actions taken by cities in areas such as planning, policy, skills development and economic strategy could have significant effects on their economic and social prosperity relative to others.

The need for cities to respond to the challenges and opportunities of the future using the old, new and evolving tools at their disposal is urgent. In the 20th Century, some cities suffered a gradual decline as they failed to respond successfully to the changes of their age. In the 21st Century those changes will be so striking, and take place so quickly, that failing to meet them could result in a decline that is catastrophic.

But there is a real impediment to our ability to apply these ideas in cities today: a lack of common understanding.

(Matthew Boulton, James Watt and William Murdoch, Birmingham’s three fathers of the Industrial Revolution, photographed by Neil Howard)

As the industrial and information revolutions have led our world to develop at a faster and faster pace, human knowledge has not just grown dramatically; it has fragmented to an extraordinary extent.

Consequently, across disciplines such as architecture, economics, social science, psychology, technology and all the many other fields important to the behaviour of cities, a vast and confusing array of language and terminology is used – a Tower of Babel, no less. The leaders of many city institutions and businesses are understandably not familiar with what they can easily perceive as jargon; and new ideas that appear to be presented in jargon are unlikely to be trusted.

To address the challenge, those of us who believe in these new approaches to city systems need to tell better stories about them; stories about individuals and their lives in the places where they live and work; how they will be more healthy, better equiped to support themselves, and able to move around freely in a pleasant urban environment.

Professor Miles Tight at the University of Birmingham and his colleagues in the “Visions 2030” project have applied this idea to the description of future scenarios for transportation in cities. They have created a series of visually appealing animated depictions of everyday scenes in city streets and places that could be the result of the various forces affecting the development of transport over the next 20 years. Malcolm Allan, a colleague in the Academy of Urbanism, helps cities to tell “stories about place” as a tool for envisaging their future development in a way that people can understand and identify with. And my colleagues in IBM Research have been exploring more generally how storytelling can enable the exchange of knowledge in situations where collaborative creativity is required across multiple domains of specialisation.

If we can bring our knowledge of emerging technologies and new approaches to urbanism into conversations about specific places in the form of stories, we will build trust and understanding in those places, as well as envisioning their possible futures. And that will give us a real chance of achieving the visions we create. This is what I’ll be concentrating on doing in 2013; and it looks like being an exciting year.

(It’s been much longer than usual since I last wrote an article for this blog; following an extended break over Christmas and the New Year, I’ve had a very busy start to 2013. I hope to resume my usual frequency of writing for the rest of the year.

And finally, an apology: in my remarks on the panel discussion following Sir Peter Hall’s lecture at the Crystal, I gave a very brief summary of some of the ideas described in this article. In particular, I used the term “Massive / Small” without attributing it to Kelvin Campbell and Urban Initiatives. My apologies to Kelvin, whose work and influence on my thinking I hope I have now acknowledged properly).

The need for technology and mathematical skills in a Smarter Planet with Open Data

In amongst all the great discussions of Smarter Water, Smarter Transportation, Open Data and other themes at this week’s Science of Smarter Cities Colloquium in IBM’s new Research Lab in Dublin, an interesting theme has emerged that’s been on my mind for some time.

Many discussions have focussed on the huge importance of processing, analysis and acting on data and information in the Smarter Planet that’s gradually emerging around us as more and more of the physical world is instrumented, interconnected and automated. Imperial College’s work on disruptive business platforms includes the new commercial opportunities – some of them highly disruptive – that this information is making possible. And McKinsey recently wrote a fascinating paper on a similar subject – the emerging “Information Economy”.

A vital consequence of this is renewed – or even wholly new – demand for the skills required to manipulate and understand information. I’m talking about mathematics, statistics and computer programming here, amongst others. Unless it’s prepared by a numerate communication expert, data is often very difficult to understand and interpret. And communication experts may also have their own agenda in determining how they prepare data. And quite simply, we need more people able to undertake that sort of work – people with mathematical and technical skills. Some of the speakers from transport organisations at the colloquium this week have spoken directly of needing more of those skills.

The problem is that in the UK, we’re not producing enough of them. Google’s Chairman Eric Schmidt recently lambasted the British Education system for not producing enough computer programmers to feed demand in the creative industries vital for economic growth; and the recent Nesta report on the UK’s computer gaming industry cited the same issue as a reason for that industry’s recent decline in the global market.

City leaders understand this; Hanna Zdanowska, the Mayor of Lodz in Poland, spoke this morning of the importance of young skilled people to city economies, particularly as european populations age. (Lodz have amazing plans for regenerating their physical infrastructure and optimising their city systems, by the way, it was a great talk).

So what can we do about this? In yesterday’s Open Data discussion, Christopher Gutteridge, who’s behind Southampton University’s Open Data programme, said that we needed to encourage more “playful coding”. I think that phrase hit the nail on the head.

Our world is at the stage where technologies that can be manipulated by any human being who learns the basics of computing programming are becoming terrifically powerful. At the same time, the information that those technologies control is the lifeblood of our economy and society. For us to educate people without giving them the ability to participate in that system is surely a terrible folly for our children and our economy.

A fellow visiting academic at the University of Warwick, Jonnie Turpie who’s the Digital Media Director of Maverick TV, introduced me recently to the Birmingham Ormiston Academy. BOA is a new school that’s intended to teach creative and digital arts by exposing young people directly to small enterprises in that industry. I think it’s a great idea, and an example of the sort of way we could teach young people the skills to exploit information and technology in a way that’s exciting, challenging – and directly builds the skills we will need for the future.

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