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Growing Prosperity and Inclusion in

Asia: Sustainable Transport for All

Dr. John Pournoor, 3M Government Markets

3M Confidential.

15 September
3M 2016. All Rights Reserved.

Intl Government Markets

3M Government Affairs

Cities lead to

Prosperity
Economic Savings
Jobs
Better Access
Mobility

3M Confidential.

15 September
3M 2016. All Rights Reserved.

Cities occupy only around 2% of Earths land mass


They contain 51% of the worlds population
They consume an estimated 80% of its resources

The current global population is 7+ billion


Forecast to grow to 9+ billion by 2050
By 2050 approximately 80% will be urbanized
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The Political Challenge

3M Confidential.

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OLD CITY DEVELOPMENT MODEL


1. a very resource intensive model of operation
2. where low investments lead to cheapest acquisition that is inefficient
3. over time it has high life-cycle costs and wastes city resources

NEW CITY DEVELOPMENT MODEL


1. a more resource elastic approach
2. where operations can be scaled back or intensified based on need
creating efficiency
3. Amortized over time savings can be reinvested to serve more citizens
5

3M Confidential.

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3M 2016. All Rights Reserved.

3M Confidential.

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3M 2016. All Rights Reserved.

Smart City Solutions


MUST
Create Political Value
7

3M Confidential.

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ECONOMIC
VALUE

SECURITY
VALUE

POLITICAL
VALUE

SAFETY
VALUE

SOCIAL
VALUE
8

3M Confidential.

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Stakeholders

CITY AUTHORITY

PUBLIC AND PRIVATE


SECTOR DELIVERY
PARTNERS

RESIDENTS OF THE
CITY AND THE
SURROUNDING
AREA
9

3M Confidential.

NATIONAL SERVICE
PROVIDERS AND
COMMISSIONING
AUTHORITIES

BUSINESSES
15 September
3M 2016. All Rights Reserved.

Government,
City Mayors,
State-Owned
Enterprises

Financiers
(Natl, State,
Municipal,
MDB,
Private)
10

3M Confidential.

Smart
City

Small,
Medium,
Large
Solution
Providers
15 September
3M 2016. All Rights Reserved.

Lessons Learned in Building Smart City


Political Value best be generated within the reign of one
administration or within one election cycle
The same solution in different cities and different countries will
have different political value. Politics is always local.

Value must be clearly quantifiable using local statistics and local


macro economic analysis
To generate early political capital, small demonstration projects
can give citizens visibility to the potential of the solution
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Smart concepts must have broad practical interpretation.


3M Confidential.

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City Transformation Phases

Smart (ICT)
Smart (Non ICT)
Industrial

Pre-Industrial

12

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Smart Cities
13

3M Confidential.

15 September
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Business Models

1. Build Own Operate (BOO)

14

3M Confidential.

2. Build Operate Transfer (BOT)


3. Build Operate Manage (BOM)
4. Open Business Model (OBM)

15 September
3M 2016. All Rights Reserved.

Private
Partnerships

1. Integrators (end-to-end service providers)

15

3M Confidential.

2. Network Operators (ICT connectivity providers)


3. Product Providers (hardware and asset providers)
4. Managed Service Providers (third-party providers
overseeing management / operation of smart
solutions / services)
15 September
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EU Smart Cities
16

3M Confidential.

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Current Strategy
17

3M Confidential.

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Phase 1: Build
Information and
Communication
Technologies
18

3M Confidential.

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Projects
19

3M Confidential.

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City Strategy
20

3M Confidential.

CITY AGENDA
CITY GOVERNANCE

City Services

City Operations Systems

People
Businesses

City User Systems

Water

Communication
Energy
Transport

City Infrastructure Systems

15 September
3M 2016. All Rights Reserved.

Phase 2: Plug In
Smart Solutions to
ICT
21

3M Confidential.

Establishment of local
authority management
information system
Patient diagnostic
and screening
devices
Data gathering on use
of specific online
business services

Measuring traffic
flows and toll use
Data gathering via
mobile phones
Gather data for water
quality monitoring
Fit sensors to gather
data on usage across
the energy system
21

A Vision for Smarter Cities | April 2009

Interconnected service
delivery
Interconnect records for
doctors, hospitals and
other health providers
Interconnect stakeholders
across citys business
system
Integrated traffic,
weather and traveller
information services

Immediate and joined-up


service provision
Patient driven preemptive care

Customised service
delivery for businesses

Interconnect mobile
phones, fixed line,
broadband

Real-time road
pricing
Information for
consumers on city
services in real time,
on their own time

Interconnect
businesses, ports,
energy users of water

Real-time quality,
flood and drought
response

Interconnect appliances
and devices between
energy consumers and
providers

Optimise the use of


the system and
balance use across
time

15 September
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3M Confidential.

Smart Grid

Infrastructure in
Smart Cities
22

15 September
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Balancing Renewable Traditional Energy Mix


23

3M Confidential.

Smart
Sensors

Renewables

Fossil/Hydro

15 September
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Innovation:
Sensored
Termination
24

3M Confidential.

Standard Grid
Termination

Renewable measure intensity


Fossil of
Sensors
Feed
Feed
production
from the Renewable
feed to the Grid
and orders the
Grid
Junction
Fossil Fuel plant
to decrease or
increase production.

Smart Grid
Termination

15 September
3M 2016. All Rights Reserved.

Social & Economic


& Environmental
Value of Innovation
25

3M Confidential.

Allows existing system to be sensored with minimal cost


Lowering power plant fossil fuel consumption
Lowering Carbon footprint
Lowering green house gas emissions
Increasing impact of renewables

15 September
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26
3M Confidential.
15 September
3M 2016. All Rights Reserved.

Largest cause of deaths in developing countries

Infrastructure Safety:
Road Safety

Road Safety &


Infrastructure

Behavioral

27

3M Confidential.

Do not drink
and drive!

Increase
visibility on
the road!

Functional

15 September
3M 2016. All Rights Reserved.

LA Road
Infrastructure

Czech Republic

28

3M Confidential.

15 September
3M 2016. All Rights Reserved.

Speed
29

3M Confidential.

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Innovation:
Traffic Cameras
30

3M Confidential.

CONTINUOUS SPEED CONTROL/TOLLING:


Efficient High Speed E-Tolling
Connected to to ICT
Lower Speeds = Lower Emission

15 September
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Road Signs

Pedestrians

Bicycles

Motorcucles

Visibility
Passive
31

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Social & Economic


Impact
32

3M Confidential.

EnergySustainability
Generation &
Transmission
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Social & Economic


& Environmental
Value of Innovation
33

3M Confidential.

Reduction in accidents
Reduction in injuries
Reduction in fatalities
Reduction in health care costs
Reduction in social welfare assistance
Reduction in unemployment compensation
Increase in productivity
Reduction in insurance rates
A person that does not works due to accidents does not pay taxes

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3M Confidential.

Disaster Preparedness

Protecting
Critical Infrastructure:
34

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Safety & Security

Biometrics R&D

35

3M Confidential.

Multiple Biometrics: Finger, Face, Iris


Products: Biometric capture devices,
search engines, mobile, ASIC
System integration: High-availability
architecture, workflow management,
Service Oriented Architecture

Biometric System Development &


Integration

Customized systems
Integration & Test
Installation, training
Hardware & software maintenance
Data conversion
Help Desk support

Solution independence
Standards based
Support industry standard hardware
platforms & operating systems

15 September
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Safety & Security


36

3M Confidential.

Cogent Automated Palm and


Fingerprint Identification System
(CAFIS)
Cogent Biometric Matching
Solution

LiveScan Product Line

Handheld Devices for Biometric


Data Entry/Identification
Biometric Enrolment Solution
Biometric Access Control Product
Line
FIPS 201 Certified Products

15 September
3M 2016. All Rights Reserved.

3M Confidential.

Disaster Preparedness

Protecting
Critical Infrastructure:
37

15 September
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Infrastructure
Disaster Protection
38

3M Confidential.

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Government s
Biggest Challenge
39

3M Confidential.

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Developing Emergency
Response Assessment
40

3M Confidential.

Identify Probability
Identify Consequence

Identify Risk
Scenarios

Identify
Infrastructure
Assets
List all assets
Identify assets
vulnerable to each
risk

For each Risk


Scenario, propose
Protection Solutions
for vulnerable assets
Identify Cost

Assess & Create


Protection Plan for
Each Risk/Asset

15 September
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Developing Emergency
Response Plans
41

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Criticality

Impacts of loss of asset from disaster

Accessibility

Is there easy physical access to the asset

Recoverability

Ability to fix asset (days, weeks, months, years)

Vulnerability

Impact of disaster on asset

Effect

Consequence of loss of asset

Recognizability

Ease of identifying the asset

15 September
3M 2016. All Rights Reserved.

Social & Economic


& Environmental
Value of Innovation
42

3M Confidential.

Assuring most essential services are delivered to all


Risk assessment = Reflection, Decision Making and Funding
Infrastructure Protection = social contract between government
and citizens
Logistics and supply chain needs for Continuity of operations

Observations
From 40 Countries
We have worked with:

Roles and responsibilities.


Incorporate probability ranges.
Include logistics and supply chain
Develop in-country stockpiles
15 September
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3M Confidential.

Technology
Procurement

Procurement
Innovation
43

Little Socio Economic Impact

Some Socio Economic Impact

High Socio Economic Impact

Minimum
Specifications

Average
Specification

Better
Specification

Little
Innovation

Average

Better
Innovation

Low Acquisition Cost

Average Acquisition
Cost

Higher Acquisition
Costs

Low Social Impact

Average Social Impact

Higher Social Impact

Low Economic Impact

Average Economic
Impact

Higher Economic
Impact

High Lifetime
Ownership Costs

Typical Lifetime
Ownership Costs

Lowest Lifetime
Ownership Costs

To d a y

Needed
15 September
3M 2016. All Rights Reserved.

Return On Innovation
44

3M Confidential.

Better
Innovation
Higher Acquisition
Costs

Higher Social Impact

Higher Economic
Impact

Lower Lifetime
Ownership Costs

15 September
3M 2016. All Rights Reserved.

45

3M Confidential.

15 September
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Innovation

Intl Government Markets

46

3M Confidential.

3M Government Affairs

K. John Pournoor kpournoor@3M.com


15 September
3M 2016. All Rights Reserved.