More bad/sad stuff.
 
M
 
-----Original Message-----
From: David Sadoway [mailto:[email protected]] 
Sent: Wednesday, March 09, 2011 12:29 PM
To: [email protected]
Cc: Michael Gurstein
Subject: ICTs / corporate "partnerships" discover the city / does anyone else 
find the implications of this story somewhat troubling? / Toronto Globe and 
Mail Wed March 9 / 2011


 Chief Information Officer for the City of Edmonton Chris Moore pictured at the 
Transportation Monitoring Centre where the flow of traffic in monitored in 
Edmonton,Tuesday March 8, 2011. - Chief Information Officer for the City of 
Edmonton Chris Moore pictured at the Transportation Monitoring Centre where the 
flow of traffic in monitored in Edmonton,Tuesday March 8, 2011. | Jason Franson 
for The Globe and Mail 
<http://beta.images.theglobeandmail.com/archive/01232/webibm09nw1_jpg_1232981cl-3.jpg>
 

The new frontier of urban growth: High-tech partnership


SIRI AGRELL


>From Wednesday's Globe and Mail

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In Stockholm, they needed to reduce rush-hour traffic. Cambridge, Ont., wanted 
to replace one pipe without ripping out its entire sewer system. In Budapest, a 
school system required an environmentally friendly lighting solution, while in 
China, they just need somewhere new for people to live.

Creating smart infrastructure for cities around the world has become the new 
frontier of urban planning, a global business estimated to be worth as much as 
$122-billion over the next two years.


MORE RELATED TO THIS STORY


*       Let cities reach  
<http://www.theglobeandmail.com/news/national/toronto/marcus-gee/let-cities-reach-for-the-sky/article1931176/>
 for the sky 

*       Looking for  
<http://www.theglobeandmail.com/news/national/looking-for-economic-growth-in-canadian-cities-look-west/article1916776/>
 economic growth in Canadian cities? Look west 

*       Canadians�  
<http://www.theglobeandmail.com/news/technology/tech-news/canadians-internet-usage-nearly-double-the-worldwide-average/article1934508/>
 Internet usage nearly double the worldwide average

City governments faced with growing populations, aging infrastructure and 
dwindling budgets are desperate for modern solutions, but instead of turning to 
visionary new mayors, or vying for cash from other levels of government, 
municipal leaders are increasingly turning to such private companies as IBM, 
GE, Oracle and Cisco to overhaul city systems, applying high-tech business 
solutions to issues such as public transit and water management.

And in the process, tech companies are emerging as a new form of public-private 
utility, one that may soon have a monopoly over how our cities are run. 
Toronto-based urban designer Ken Greenberg even compared IBM to the companies 
that built the Canadian railways, and dubbed such public-private partnerships 
the new �nation builders.�

�Multinational corporations have discovered cities and it�s probably one of the 
biggest market trends in the world, frankly,� said Bruce Katz, founding 
director of the Metropolitan Policy Program at the Brookings Institution in 
Washington.

On Wednesday, IBM will announce the winners of its Smarter Cities Challenge, a 
global contest that invited cities to apply for $50-million in free technology 
services.

The City of Edmonton is the sole Canadian name among the list, which ranges 
around the globe from Chiang Mai, Thailand, to Bucharest, Romania and 
Milwaukee, Wis.

The contest is part of the company�s Smarter Planet program, a core part of its 
business that aims to sell technology to cities rather than individual 
consumers.

Although the majority of IBM�s work with cities is straight-up, 
charge-by-the-hour consulting, IBM has positioned the business as a form of 
high-minded charity, asking city residents to imagine �safe neighbourhoods, 
quality schools, affordable housing, traffic that flows.�

At the recent Greater Toronto Summit, IBM�s vice-president of strategy and 
business development Michael Littlejohn described the company�s information 
analytics service as the �new government ecosystem.�

�Under the old regime, there was government, and there was everyone else. We�re 
talking about a new world order,� he said. �We�re very bullish on information 
analytics changing cities.�

Mr. Greenberg, who was also on the panel, acknowledged that cities may not be 
in the position to think about the long-term ramifications of inviting private 
enterprise into city hall.

�Cities are often so far behind and overwhelmed that they can�t even think 
about big-picture stuff,� he said. �A lot of this is born out of the fact that 
municipalities have their backs against the wall.�

It doesn�t take a business degree to recognize that being backed against a wall 
is not a strong bargaining position. But the potentially monopoly-forming 
future of �smarter city� initiatives has less to do with retrofitting old 
cities than the possibility of creating entirely new ones.

While companies such as IBM and GE focus on helping Stockholm introduce 
congestion pricing, and building wastewater treatment plants in Victoria, 
governments in the Eastern Hemisphere are building new cities from scratch, and 
technology companies are getting in on the ground floor.

Last November, India and Japan unveiled a plan to build 24 �green cities� with 
clean energy supplies and waste recycling systems, all of which will be built 
by Japanese companies such as Hitachi and Mitsubishi.

In South Korea, construction has begun on New Songdo City, a $35-billion 
instant metropolis that will grow from a man-made island in the Yellow Sea. The 
city will have technology built into every brick, building and streetlight, 
with everything from water to traffic wired through a single Internet-enabled 
utility, courtesy of Cisco.

In announcing the partnership, the company�s CEO declared that �the network has 
become the new utility.�

Saudi Arabia has already asked Cisco to help plan four new cities of its own, 
and China is estimated to need at least 500 to house its growing population.

With companies literally building cities around their products, the prospect is 
emerging that the world could someday be divided between IBM cities and Cisco 
cities, just as commercials have told consumers they are either Macs or PCs.

Mr. Katz doesn�t think that would be so bad, and said one alternative � that 
cities don�t upgrade their information systems at all � is even worse.

�It�s not a question of whether or not firms are going to reap the benefits, 
the real issue for me is how fast can this be adopted,� Mr. Katz said.

Chris Moore, Edmonton�s chief information officer, was responsible for the 
city�s winning bid to become an IBM Smarter City and agrees that most 
municipalities have no choice but to upgrade. Right now, he said, Edmonton 
employs 1,100 different types of software, making effective data sharing within 
the city virtually impossible.

�For me, if you put it all in an enterprise system it�s going to be easier and 
faster,� he said.

The results of streamlining data have already been made apparent in several 
Canadian cities. A data analytics program adopted by the Edmonton police 
allowed for crime statistics to be studied in real time, which the force 
credits with producing an 18-per-cent drop in crime.

�Before we used manual processes, and if you could look at data from a month 
ago that would be a good thing,� said Staff Sergeant John Warden, who led the 
program. �Now we can deploy resources to hot spots immediately.�

In Cambridge, the city government has applied the same principle to studying 
its pipes, roads and other physical assets.

It paid IBM a million dollars to implement a software program that would allow 
it to better understand the Ontario city�s $2-billion infrastructure assets, 
monitoring everything from trip hazards in sidewalks to leaks in underground 
pipes. Mike Hausser, the city�s manager of asset management, said he modeled 
his program on the operating systems of most Fortune 500 companies.

�It�s not just a matter of making a capital investment, producing something � 
you had to produce it at the right cost. If you weren�t able to do that in a 
private-sector business, you weren�t successful. You went out of business very 
quickly,� he said. �Municipal governments are in the same situation.�

Officials paid for the new technology through federal gas tax funding, and 
believe it will help them more efficiently plan for future infrastructure 
projects. Their water system, for example, is now monitored by robotic cameras, 
which report problems into a centralized database. In the future, this could 
mean the difference between replacing one pipe, and replacing all of them.

Bruce Ross, president of IBM Canada, said that introducing this kind of 
efficiency will be the way cities of the future set themselves apart.

�Why replace a mile of pipe when you can replace 30 feet?� he said. �That level 
of information is there, you just need the right level of analytics on top of 
it.�

And he doesn�t think cities of the future will be categorized by the type of 
software they use, but by how they choose to employ it.

�I think you�ll find that cities will be more solution-oriented. So you�ll find 
one city that provides extremely good customer service and another that becomes 
incredibly eco-friendly,� he said. �Cities will be differentiated not by the 
technology they have but by the solutions they provide.�

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