South-Western Economic Alliance -- the Need for Change

1. The Role of Technology in Enabling Sustainable Growth From Assessment, Benchmark, to Plan Rick Huijbregts VP, Industry Transformation | GM, Smart + Connected Communities SWEA November, 2012 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

2. The Main Challenges Energy Talent Mismatch Access to Safety & Mgmt / / Supply & Healthcare & Security Urbanization Demand Education © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

3. Billions (devices) 50 50 Billion 40 Enable Productivity “Smart Objects” 30 Inflection point Create New Value 20 25 10 12.5 Green & Secure 6.8 7.2 7.6 0 2010 2015 2020 World Population Source: Cisco IBSG white paper “The Internet of Things”, April 2011. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

4. Real Estate Government Sports & Entertainment Education Safety & Security Transportation Utilities Healthcare Social Economic Environmental © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

5. Municipal Command Factory & Control Center Optimization Cloud & & Cloud Services Services Smart Logistics Traffic Optimization Grid Hospital Home Flow Optimization Energy Optimization Responsive Mgmnt Store Comms Network Optimization INTELLIGENT INTELLIGENT CITY FACTORY INTELLIGENT INTELLIGENT Intelligent HOSPITAL HIGHWAY Medical Connected Automated Traffic Devices Ambulances Intelligent Digital Car System Cameras Signage © 2012 Cisco and/or its affiliates. All rights reserved. Source: Intel Cisco Confidential 5

6. More Important Integrated Operations Centre Citizen Service Menu Big Economic, SocialOpen Data for Citizens to Use Data becomes and Environmental Services © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

7. Real Estate Education S &Security Sports & Ent Healthcare Transportation Government Utilities • Child Locator / Elder Care Citizen Services Menu • Unified Communication • RFID Tracking • Dynamic HD video • Connected • Personal travel • Service Efficiency • Urban Monitoring • Executive Suite* for Schools • Emergency • Screen Level Power Imaging Assistant • Citizen Experience & Measurement • Office Resource Management* • Green aware* Health Care Monitoring From Home • Mobility for Schools • Connected Learning Response • Integrated Control • Car Park • Care at a distance • Identity Management • Digital transportation $10 • City Management • City Bicycle • Renewable & co- Generation • On-premises Safety and Security* • Virtual Classrooms Operation Center Management • Clinical hub • Connected • Citizens Energy • Digital Library • Smart Business Centre and Higher Education • Threat Assessment Alert That Your Child Is At School • Mobility for Schools • Emergency • Digital Media Solutions Collaboration • Medical Grade • Intelligent traffic control and management $5 Municipal Building • Government tele- Efficiency • Intelligent Power • Info signage (I, II)* • Campus Safety and response • Multicast Video Network • Smart Road Pricing worker Management • Gunshot Location Distribution • Connected • Asset Management • Grid monitoring • Smart Card (I, II)* • Smart Kiosks Security Check mobile phone for Next Bus/ online on bus • Research and • Connected Justice • Targeted Hospital • Smart work Center • Mobile $3 Government and control Education Networks • Rapidly deployable Advertisements •… •… Inspection and • More Utilities for • Residential Service* • Rescue Wireless Communication • Digital Signage Asset Management more People • Energy dashboard • Smart Connected Maintenance* •… TelePresence a Friend From Home • Municipal Video •… $8 • Government • Reduce Carbon Surveillance Webex Emissions • Integrated Building Management* •… • City-wide Wireless • Intelligent HVAC • Triple Play • Office in a Box Access Government Services Online $6 • City Portal • Power back-up Distribution •… • Convention in a box • Energy • Collaboration • Telepresence “Green” Utility Awareness / Smart Grid $3 Optimization •… • Virtual Concierge (residential)* • Integrated Operation Center for in- building* Automatic Guidance to Parking Spot / Elevator Held $5 • Private Virtual Office* • Asset Tracking* • Virtual Attendant Access to Security Services $15 • Car Park Management (I, II) * • Mobile Concierge • Location based push advertising My Total = $52/mo © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

8. Water Crime Energy Savings Traffic Consumption Rates 30% 50% 20% 30% Education: Healthcare: $3/Student/Month $3/Doctor Visit A Safer, Desirable Environment where People are Happier and more Productive © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

13. 120 Smart Work Centers in and around Amsterdam Savings: Reduced office space by 40% saving 10 million Euros in Leasing Costs. Reduced carbon emissions by 3428 tons Rely more on the Network, less on Standalone devices: Reduced number of printers & copiers by 70%; Office equipment device usage by 20% © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

14. Visionary Leadership Access to Education & Healthcare Innovation / Market Transitions Collaboration Infrastructure / Broadband © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

15. Invite your city to participate in interviews which will generate a high level discussion about the use of technology across your city Best Completed research, Framework CITY DIAGNOSTICS interviews Practices Assess your S+CC ARCHETYPES Municipality Grouping, Archetype Customization Diagnostics CITY PROTOCOL High level Opportunity Priority Leadership workshop Gap targets engagement Prototype, Track Solution design solutions workshops, Action. Solution design © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

16. ICT Usage and Environment ICT Usage in City Management & Operations City Wide ICT Environment Basic Services Online Services Internal Administration Services delivered throughout the city, including traffic management, transportation, emergency, public safety and utilities. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

17. ICT Usage and Environment ICT Usage in City Management & Operations City Wide ICT Environment Basic Services Online Services Internal Administration Web-based offerings, including information, portals, payment mechanisms and other transactions. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

18. ICT Usage and Environment ICT Usage in City Management & Operations City Wide ICT Environment Basic Services Online Services Internal Administration Technology in internal city operations, including data and voice networks, data centers, call centers, and office IT infrastructure such as PC’s, servers, etc. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

19. ICT Usage and Environment ICT Usage in City Management & Operations City Wide ICT Environment Basic Services Online Services Internal Administration Policies and regulations, infrastructure-related investments, training and programs that promote technology adoption. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

21. Dimension City Profile Propensity to Adopt S+CC S+CC Readiness ICT Economic Environmenta Component Size Affluence Social Driver Infrastructure ICT Usage Driver l Driver Readiness Aerial Size of City GDP / Presence of Existence of Existence of Presence of Individual ICT Element City Capita pressure to pressure to pressure to city networks Usage improve public reduce costs improve services resource usage 1 Size of ICT spend / Existence of Presence of Existence of Convergence Business ICT City Population capita digital inclusion political push pressure to of city networks Usage Profile (S+CC sectors) mandate for job creation improve environ. performance Government ICT Usage Archetype 2 3 Propensity to S+CC Adopt S+CC Readiness An archetype is a unique market opportunity based on a set of common characteristics © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

22. Port Elizabeth Rio Grande Busan Georgetown Medium cities in an aspiring Small cities in an aspiring Medium cities in an aspiring Small cities in an aspiring economy with primary aim to economy with primary aim to economy with primary aim to economy with primary aim to improve overall quality of life improve overall quality of life improve economy and have improve economy and have and have basic ICT and have basic ICT substantial ICT infrastructure substantial ICT infrastructure infrastructure infrastructure Population (% of urban) - 90M (2.6%) Population (% of urban) - 105M (3%) Population (% of urban) - 172M (5%) Population (% of urban) - 284M (8%) Cities (% of sample) ~50 (2%) Cities (% of sample) ~456 (19%) Cities (% of sample) ~86 (3%) Cities (% of sample) ~ 1,138 (46%) Port Elizabeth, South Africa Rio Grande, Brazil Busan, South Korea Georgetown, DC, USA San Luis, Brazil De Nizli, Turkey Cologne-Bonn, Germany Florence, Italy Melbourne Rivas Vaciamadrid Kingston Medium cities in an affluent Small cities in an affluent Small cities in an aspiring economy with primary aim to economy with primary aim to economy with primary aim to improve economy and have improve economy and have improve economy and have sophisticated ICT infrastructure sophisticated ICT infrastructure sophisticated ICT infrastructure Population (% of urban) - 180M (5.2%) Population (% of urban) - 138M (3.9%) Population (% of urban) - 22M (0.6%) Cities (% of sample) ~90 (4%) Cities (% of sample) ~537 (22%) Cities (% of sample) ~100 (4%) Liverpool, UK Melbourne, Australia Oviedo, Spain Gothenburg, Sweden Frankfurt, Germany Kingston, UK Rivas Vaciamadrid, Spain Source: Cisco and/orCompany All rights reserved. © 2012 Booz & its affiliates. analysis Cisco Confidential 22

23. Real Estate Education S &Security Sports & Ent Healthcare Transportation Government Utilities • Child Locator / Elder Care • Unified Communication • RFID Tracking • Dynamic HD video • Connected • Personal travel • Service Efficiency • Urban Monitoring • Executive Suite* for Schools • Emergency • Screen Level Power Imaging Assistant • Citizen Experience & Measurement • Office Resource Management* • Mobility for Schools Response Control • Care at a • Identity Management • City Management • Renewable & co- • Green aware* • Connected Learning • Integrated • Car Park distance • Digital transportation • City Bicycle Generation • On-premises Safety and Security* • Virtual Classrooms Operation Center Management • Clinical hub • Connected • Citizens Energy • Digital Library • Mobility for Schools • Threat Assessment • Digital Media Collaboration • Intelligent traffic control Municipal Building Efficiency • Smart Business Centre and Higher Education • Emergency Solutions • Medical Grade and management • Government tele- • Intelligent Power • Info signage (I, II)* • Campus Safety and response • Multicast Video Network • Smart Road Pricing worker Management Security • Gunshot Location Distribution • Connected • Asset Management • Mobile • Grid monitoring • Smart Card (I, II)* • Research and • Connected Justice • Targeted Hospital • Smart work Center Government and control • Smart Kiosks Education Networks • Rapidly deployable Advertisements •… •… Inspection and • More Utilities for • Residential Service* • Rescue Wireless Communication • Digital Signage Asset Management more People • Energy dashboard •… • Municipal Video •… • Government • Reduce Carbon • Smart Connected Maintenance* Surveillance Webex Emissions • Integrated Building Management* •… • City-wide Wireless • Intelligent HVAC • Triple Play • City Portal • Power back-up • Office in a Box Distribution •… • Convention in a box • Energy • Collaboration Optimization • Telepresence •… • Virtual Concierge (residential)* • Integrated Operation Center for in- building* • Private Virtual Office* • Asset Tracking* • Virtual Attendant • Car Park Management (I, II) * • Mobile Concierge • Location based push advertising © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

24. • Assess and improve performance in environmental sustainability, economic competitiveness, quality of life, and city services, by innovating and demonstrating new leadership models, new ways of engaging society, and by leveraging new technologies. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

25. Invite your city to participate in interviews which will generate a high level discussion about the use of technology across your city Best Completed research, Framework CITY DIAGNOSTICS interviews Practices Assess your S+CC ARCHETYPES Municipality Grouping, Archetype Customization Diagnostics CITY PROTOCOL High level Opportunity Priority Leadership workshop Gap targets engagement Prototype, Track Solution design solutions workshops, Action. Solution design © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25

26. Thank you. Cisco Confidential 26

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