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SMACT and the City: How will the Internet of Things Change our Cities?

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When will the Internet change our cities like it changed our lives? In the final Things report SMACT and the City we now take the city as the center of Things. The convergence of bricks and clicks The report shows how the five basic SMACT technologies are moving the creation of 21st century urban environments into top gear. We provide a status update on Smart Cities today and how developments like Senseable Cities and Cities as a Platform provide both new dynamics and opportunities for blending the digital and the physical infrastructure of our world together. The report provides a analysis of how this is already becoming a reality for retailers and presents what companies and organisations of all trades could learn from the accelerating convergence of bricks and clicks. From the report: - The Internet of Things will change our cities. - The five basic technologies that form SMACT are moving urban development into top gear. - The digital architecture of the city is becoming a true development platform. - SMACT will transform the city into a platform to blend bricks and clicks seamlessly together. - The future of cities is about: platform solutions, pervasive applications, and sensible sensing technologies. - City as a Platform equals the infrastructural capacity plus the human dimension, the empowerment of behavior through data and applications.
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  • 1. Thomas van Manen Jaap Bloem Menno van Doorn The Sogeti Trend Lab VINT VINT | Vision • Inspiration • Navigation • Trends vint.sogeti.com vint@sogeti.com SMACT and the City New Technologies in Urban Environments VINT research report 1 of 4 VINT research report 2 of 4 VINT research report 3 of 4 VINT research report 4 of 4
  • 2. 2014 The Sogeti Trend Lab VINT Production LINE UP boek en media bv, Groningen, the Netherlands VINT | Vision • Inspiration • Navigation • Trends Attribution-NonCommercial-ShareAlike 3.0 (CC BY-NC-SA 3.0) Contents Four vint reports on Things 3 1 Lessons we can already accept 4 2 The Decade of smact, the new Smart 6 3 Who has the smartest city? 11 4 City in a Box: smartness to order 13 5 Toward Senseable Cities 16 6 Cities as a Platform 18 7 When will the Internet change our cities? 22 8 Urban scenarios: smact and the retail 24 9 Five retail lessons for the Smart City 34 10 Life in the Personal City 36 References and illustrations 38 The Sogeti Trend Lab VINT
  • 3. Four new vint reports on digital things 3 A rumor started at the end of the previous century, that “Things will be arriving on the Internet.” Due to the long nose of innovation, as Bill Buxton of Microsoft Research describes it, it took fifteen years for that to happen, but now the clamor of Things is becoming deafening. In various sizes and shapes, all kinds of startups and renowned names are claiming to have made breakthroughs, ranging from off-the-shelf sensor hardware platforms such as Arduino and Libelium to business infrastructural giants such as ibm and McKinsey. The relationship between humans, their artefacts and the world around them has always been a fascinating one. The difference nowadays is that we know how to program computers and can store everything in cyber-physical sys-tems. That makes digital smartness concrete: stretching from smartphones and intelligent pill jars in healthcare chains, to the lifecycles of products and services with the customer as the focus of attention. From science fiction to fact of life. We now present the fourth and last vint Report of our series, following the introductory report entitled Things: Internet of Business Opportunities, the second, consumer-oriented report Empathic Things: Intimate Computing from Wearables to Biohacking, and number three, The Fourth Industrial Revolution: Things to Tighten the Link between it and ot. The report now before you is the final panel of this quadriptych. After the reviews that focused on humans and industry, we now take the city as the center of Things: the city in which we eat, work, make love, are robbed, buy stuff, and where new technologies such as social media, smartphones and sensors have abruptly made their entrance. The rapid development of Social, Mobile, Analytics, Cloud and Things (smact) forms the vanguard of urban change, hence smact and the City, but most developments have not taken place yet. In the words of Vicente Guallart, the famous city architect of Barce-lona: ”Internet has changed our lives, but it hasn’t changed our cities, yet.”
  • 4. 4 1 Lessons we can already accept Right from the outset of our research into the Internet of Things, it was clear that the city would be the topic of our final and concluding report. The city is the economic heart of society and the biotope in which people prefer to dwell. At home or on the street, on the way to the theatre, or waiting at school for the bus: the Internet of Things will soon be active at all such places. At least, that is the general expectation. Therefore, the city is a logical place to have a closer look at all these developments. Ultimately, the ingredients ought to converge at all these different urban locations: perfectly working technology, the ease with which people like to serve themselves, and all kinds of other extras that Connected Things promise to provide us with. The reports that preceded this smact and the City already touched upon the essence of the smart city. To recapitulate, we present here the three most important messages from these reports. Preventing waste In the first report, we examined business opportunities. These are directed toward preventing waste in all forms and amounts: waste of time and energy when we have to wait unduly, or waste due to accidents, as things can always be done more safely, and all kinds of everyday frustrations that can be avoided by making things just a little smarter. We gave examples ranging from smart ways to tackle parking problems while simultaneously reducing CO2 emission, to intelligent pill dispensers that warn the doctors in advance if the pills are not being taken correctly or require replenishing. A smart city is one where all kinds of wastage are tackled and resolved. THINGS – Internet of Business Opportunities VINT research report 1 of 4 VINT research report 2 of 4 VINT research report 3 of 4 VINT research report 4 of 4 Jaap Bloem Menno van Doorn Sander Duivestein Thomas van Manen Erik van Ommeren VINT | Vision • Inspiration • Navigation • Trends vint.sogeti.com vint@sogeti.nl EMPATHIC THINGS Intimate Computing from Wearables to Biohacking Sander Duivestein Thomas van Manen Erik van Ommeren VINT | Vision • Inspiration • Navigation • Trends vint.sogeti.com vint@sogeti.nl VINT research report 1 of 4 VINT research report 2 of 4 VINT research report 3 of 4 VINT research report 4 of 4 VINT research report 1 of 4 VINT research report 2 of 4 VINT research report 3 of 4 VINT research report 4 of 4 Jaap Bloem Menno van Doorn Sander Duivestein David Excoffier René Maas Erik van Ommeren VINT | Vision • Inspiration • Navigation • Trends vint.sogeti.com vint@sogeti.com The Fourth Industrial Revolution Things to Tighten the Link Between it and ot
  • 5. Focus on behavior 5 n the second report, we investigated the behavior of humans and the nature of new Things technology, which is particularly empathic – thus, a technology that has the ability to understand people better. In the report entitled Empathic Things: Intimate Computing from Wearables to Biohacking, we encountered the phenomenon of the so-called systems of engagement: systems that touch the hearts and minds of individ-uals. The secret is to examine the behavior that is stimulated by new technology, and the way slow technology fits into the (economic) lives of people. This is an interesting perspective from which to view the smart city. Predictive talents The third report focused on the marriage between operational technology (ot) and it. We recognized opportunities to govern processes in real time and even to predict what the smartest next step might be, particularly in an industrial discipline that is growing strongly and rapidly: predictive maintenance. In urban environments, this is already varying from predictions about energy usage to identifying the places where the next crime will be committed (predictive policing), and other anticipatory possi-bilities. Processing sensor data in real time and taking direct action represent a major step forward in making cities much more intelligent. Preventing waste, concentrating on human behavior and being able to undertake action in real time because we know what is going to happen – this kind of smart city is primarily a Personal City, as we describe in the final section here. It is a city in which the push and pull factors converge in such a way that the development is desired and useful because it harmonizes with individual experience. In smact and the City, we again concentrate primarily on technology in relation to human interaction: the City as a Platform, advancing pervasive applications, and sensitive technology. The three most important concepts from the rich literature on smart cities was the source of inspiration. Sections 5, 6 and 7 elaborate these concepts further, entering into the world of retail. In studies on smart cities, smart retail has been too much neglected. In traditional rankings (see Section 3), a city is appreciated on the basis of features of general usefulness such as transport and safety, rather than according to smart consumer behavior. Nevertheless, iconic retail instances, with their great economic spectrum, have much to offer: inspiration and insight for every-one who wishes to gain a better understanding of the way in which new technology is changing people’s economic and social activities.
  • 6. 6 2 The Decade of smact, the new Smart The city has been the throbbing heart of our society since time immemorial. The city is the place par excellence where people live, work, learn, enjoy recreation, grow up and spend their old age. The desire to improve that living environment has always been present, but the digital possibilities of the modern age have given this ambition an enormous impulse. It is therefore not surprising that former ibm ceo Sam Palm-isano heralded the Decade of Smart on 1 January 2010, of which the Smarter Cities initiative of the oldest it company in the world would be the showpiece. The com-parative term ‘smarter’ indicates that the ambition to become a smart city is a long process and is in fact never finished. Modern digital opportunities justify a similar claim. Besides smart, this is also the Decade of smact, with cities full of Social media, Mobile internet, (big) data Analyt-ics, linked via the Cloud and physically and digitally intertwined thanks to connected Things aka the Internet of Things. As a result of the integration of these five basic technologies, urban development is slipping into top gear. smact has the potential to transform the city into a platform in which bricks and clicks blend seamlessly together. 2004 Pervasive smart Personal smart Social Web 2.0 Facebook 2008 2012 2016 2020 S M A C T Mobile Apple’s App Store App Economy Analytics US Big Data R&D Initiative Gartner Updates Big Data Definition Things 50-100 Billion Connected Things Industry 4.0 • • •• •• •• •• Cloud >20 Billion Revenue IT Spend Mostly Cloud The SMACT Pervasive Interaction Engine equals a multi-trillion dollar PIE The disruptive SMACT platform builds up linearly over time with exponential impact How the 2010-2020 “Decade of Smart” became the “Decade of SMACT”
  • 7. The landmarks are consistently four years apart: from the founding of Facebook 7 (2004) and Apple’s App Store (2008) to the year of Big Data Analytics (2012), the Cloud (2016 – according to the economic impact predictions) and Things (2020). (See also “How the 2010-2020 Decade of Smart Became the Multi-trillion Dollar Decade of smact” and “smact 2004-2020: The Final Countdown.” 1,2) New technology and the urban environment Cities are traditionally the places where new technologies are generated. Aqueducts and roads, skyscrapers, hospitals: urban environments are jam-packed with techno-logical applications, all of them man-made. If we were to imagine for a moment just what the world would look like without technical expertise, this German advertising film gives a few pointers in that direction. Without technology, humanity does not amount to much. A video still from “Das Leben ohne Handwerk” (Life without Craftsmanship), an image campaign to promote the technical professions in Germany, in which everything that has ever been made by humans falls apart and collapses: https://www.youtube.com/watch?v=oniqKg4VXdI Technology historian Thomas Hughes has written splendid books on this subject, such as Human-Built World: How to Think about Technology and Culture. Just as in the German promotion film, the physical city is the focus of attention. The iPad and Twitter did not yet exist, so the former human-built world did not know any of these smart technological tricks such as the ShotSpotter that is used in Boston. 1 http://vint.sogeti.com/2010-2020-decade-smart-became-multi-trillion-dollar-decade-smact/ 2 http://vint.sogeti.com/smact-2004-2020-final-countdown/
  • 8. 8 A gun goes off: the sound of the gunshot travels through the air. The message is passed on to the police and they go directly to the location. Several ShotSpotter sensors in the area capture the signal. Within a few minutes the police arrive at the location, prepared for the situation. The location of the shot is determined within a few seconds and a check is done on whether or not the data are correct. 911 It looks like magic. Acoustic sensors that have been installed throughout the city recognize gunshots and localize their place of origin. New technology is conquering the city and the entire physical environment is being given a digital dimension with new functions and applications: shops and streets, lampposts, water installations, cars. We have been building up our cities by means of craftsmanship and technology for centuries, but it is only recently that we have been able to use software and devices to monitor and govern the city in real time. And we are only in the infancy of discov-ering how digital and physical interlock with one another. There have always been representations of new technology and cities of the future, as in the sci-fi film Metropolis by Fritz Lang, from 1926. According to this film, in 2026, airplanes would be flying among the buildings of the city, and robots would be able to operate independently of humans. We still have such visions, but now in a slightly different form. It is not airplanes but drones that dominate the airspace above the
  • 9. city. And cities full of cars without steering wheels, because the cars are able to see 9 and recognize the city and, thanks to smart data analytics, can transport people safely from A to B (for an update on the driverless car, see our research blog3). The question remains as to how we should deal with the possibilities and conse-quences of new technology in urban environments. Drones and autonomous cars will have an effect on many sectors: tourism, postal deliveries, retail and pizza couriers, energy, car insurers and damage-repair firms, the manufacturing industry, tax levies and public transport. smact and the City: four takes on the urban environment “The Future is Cities” was the headline of the winter 2014 edition of mit Spectrum. Half of the world’s population now live in urban conglomerations and in 2050 that will be almost three-quarters of all people on earth. In China, 300 million people will move to the city within the coming 15 years. In 2028, China will re-rig the complete infrastructure as it is in America today. India will witness an increase of the urban population of 250 million, and in Africa the increase will be 380 million. Despite the fact that cities will have to accommodate 90 per cent of the population increase, 80 per cent of the worldwide CO2 emission and 75 per cent of energy use, the city will remain the place where people will want to settle. The reason is simple: 80 per cent of our prosperity is created in and around cities. In order to cope with these developments, cities, regions and governments are direct-ing their attention to the concept of the Smart City: from Brazil to Dubai. Where does the profit lie? Research by Bosch, under the title of “Capitalizing on the Internet of Things,” covers the main markets within which investment in new technologies will repay itself. This will amount to an estimated 596 billion dollars in total,4 distributed as follows: intelligent buildings 213 billion, the automotive industry 175 billion, utilities 44 billion, cities 21 billion, the manufacturing industry 17 billion. Thus, the Smart City is responsible for 21 billion of the yield, intelligent buildings for ten times that amount 3 For an overview of self-driving cars from Volvo, Mercedes, Google and others, see: http://vint. sogeti.com/latest-self-driving-cars. 4 http://blog.bosch-si.com/infographic-capitalizing-on-the-internet-of-things/ The new Metropolis: supplying by drones, and the advent of autonomous transport?
  • 10. 10 – but these also belong to the Smart City, as do parts of the automotive industry and the energy supply. Between 2010 and 2020, investment in the infrastructure of smart cities will increase to around 108 billion dollars, according to Pike Research.5 We explore how and how quickly new technologies will develop in the urban envi-ronment, from the perspective of the most-discussed concepts in the world of smart cities: Cities in a Box, Senseable Cities and Cities as a Platform. We conclude with a concrete scenario, namely retail. A Cities in a Box Cities in a Box are completely new cities that are full of the latest gadgets, developed in conjunction with technology companies and available on request, to be realized through copy-paste technology. They are primarily oriented toward the efficient han-dling of energy, the environment, and safety and security. Because existing infrastruc-tures do not need to be taken into account, the developers can make the fullest use of technology. Major investors are the driving force behind this kind of concept. B Senseable Cities Senseable Cities (especially existing cities) are cities full of sensors, where everything is related to data analytics. New insights from (Big) data must lead to policy adap-tations. The focus of attention is the translation of every physical occurrence in the city into a virtual visualization. The concept comes from mit Senseable Lab, of which Carlo Ratti is the spiritual father. C Cities as a Platform Cities as a Platform (both new and existing) function as a cyber-physical platform where the digital and the physical infrastructure are regarded as being one entity. Nevertheless, there is still much to be discovered about the way in which we wish to combine the virtual and the physical. Citizens and empowered behavior play an important role, as do technical (im)possibilities. The platform is an instrument to change the city and the process of change itself. D smact and the retail business We conclude with a concrete sectorial elaboration of smact and the City, namely the retail business as the showcase of economic activity. The retail business largely determines the dynamics in, and the attractiveness of, a city, regardless of whether or not you enjoy shopping there. Without smart retailing, every city – regardless of how smart it may be in other respects – is generally a dull experience. Section 8, “Urban scenarios: smact and retail activities,” examines the hard reality of the retail business: we see how the advent of e-commerce has partly induced the closure of physical shops and how new technology is helping to reshape and revive the shopping experience. 5 http://www.fierceenergy.com/press-releases/global-investment-smart-city-technology-infrastruc-ture- total-108-billion-20
  • 11. 3 Who has the smartest city? 11 There are many smart city flavors. A consensus is beginning to form in the Nether-lands about the forms of smartness that are desired in a city. In March 2013, Steden-link (“City Link,” an association of ten Dutch cities and three provinces that are at the forefront of the development of the social added value of it and the knowledge econ-omy for urban processes), the Minister of Economic Affairs, and the G4 and G32 (4 major and 32 medium-sized cities and municipalities in the Netherlands) signed the Smarter Cities Covenant, which focuses on the Digital Cities Agenda. The following eight areas are the focus of attention: ••Caring City – promotes self-sufficiency, good alignment of care assortment and requirement, and the deployment of smart (care) technology. It is alert with regard to price/performance. ••Secure City – works on event safety and security, intelligence, cyber security, and smart security of business grounds. ••Regulation-light City – works on the improvement of governmental services, the practicability of regulations, and fewer monitoring costs for companies. ••Open Networks – or the availability of Next Generation Networks (ngn) and the accessibility of these in the broades
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