Scott Klososky Phillip Seawright. Smart Cities: Risks & Real Opportunities

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1 Scott Klososky Phillip Seawright Smart Cities: Risks & Real Opportunities

2 Like it or not, technology has become the jugular vein of the organization Mike Foster

3 Digital Transformation 2000 to 2050 A historically significant change in humanity Disconnected The Dark Ages Using Digital Wearing Digital Implanting Digital The Hive Mind

4 The Transformation of Connection Web 5.0 Augmented Humanity Transhumanism Year of Traction 2045 Web 4.0 Connected Data Platforms Ambient Intelligence 2028 Web 3.0 Connected Devices IoT & M2M Ambient Computing 2020 Web 2.0 Connected People Social Technologies 2010 Web 1.0 Connected Organizations Digital Marketing ecommerce 2000

5 The Transformation of Connection Web 5.0 Augmentation Extortion/Control Augmented Humanity Transhumanism Year of Traction 2045 Web 4.0 Data Extortion/Corruption Connected Data Platforms Cybersecurity Risk Grows Web 3.0 Device Takeover Connected Devices Ambient Intelligence IoT & M2M Ambient Computing Web 2.0 Social Connected Engineering People Social Technologies 2010 Web 1.0 Connected Viruses Organizations Digital Marketing ecommerce 2000

6 HUMALOGY The integration of humans and technology to accomplish processes

7 HUMALOGY SCALE H5 H4 H3 H2 H1 0 T1 T2 T3 T4 T5 HUMAN INVOLVMENT TECHNOLOGY INVOLVMENT

8 HUMALOGY SCALE Digging a Hole H5 H4 H3 H2 H1 0 T1 T2 T3 T4 T5 HUMAN INVOLVMENT TODAY TECHNOLOGY INVOLVMENT H5 H2 T2 T5 0

9 HEARTS - intuition, discernment, creativity, inspiration, emotions, curiosity, trust, love, joy, peacefulness, forgiving, grace, and mercy Funeral Homes Churches Events, Networking Instinct & Experience Tellers, Loan Officers A Rock Concert BRAINS - the Internet, processing power, workflows, data storage, devices, equipment, software, and computers Amazon YouTube Digital Marketing AI & Robotics Online Banking Digital Music

10 We are now shifting from the Information Age to: The Age of Entanglement As technology and humanity continue to converge the repercussions on our future are staggering

11 The Transformation Dilemma Technology Changes Strategy Risk Gap Rate of Change Exponentially People & Organizations Change Logarithmically Time

12 The Transformation Dilemma Rate of Change Technology Changes Exponentially The High Beam Zone People & Organizations Change Logarithmically Time

13 Past -5YR -1YR Present 1YR 5YR Future REACTION TIME PRACTICE ORGANIZATION & LEADERS Common Practice Becomes a practice } What you are actively working on Clearly a trend You first hear of it Not on your radar Learning to be High Beam

14 The Growing Digital Skills gap The Hyper Personalization(Individualizing Tech) Relentless Automation High Beam 2018 List Growing EA complexity(enterprise architecture) The Maturation of Data Services Machine Intelligence Integrated Security

15 Machine Intelligence David Ferrucci, the developer of IBM Watson, was asked if the system can think He answered, Watson can think like a submarine can swim

16 Machine Intelligence Ecosystem Robotics RPA (Robotic Process Automation) Artificial Intelligence Natural Language Processing Recommendation Engines Machine Learning Deep Learning Predictive Analysis Cognitive Computing

17 Step One Programmed System is hard coded with rules that mimic human thought process Step Two Smart (connected) Systems are connected to the Internet with the ability to talk to other systems Machine Intelligence Roadmap Step Three Trained Systems go through a human led training process in order to refine algorithms Step Four Step Five Intelligent Systems have decision making flexibility with a desire to improve Enlightened Systems understand their mission and have ethics to guide them Self Learning Systems have the ability to review data and learn for themselves Step Six

18 Smart Cities Let s define what this really means!

19 Overview of the Smart City Concept FPOV DEFINITION: A city with pervasive digital architecture that optimizes the efficiency of operation, citizen safety, and convenience, with a high level of automation. Like many terms in the technology world (e.g., cloud computing, social media, or big data), the moniker of Smart City is simply a placeholder for a concept that cannot be fully explained by the title alone. The current definition of a smart city is that it uses digital tools to automate and control services and provide a higher level of convenience to residents through the use of digital connections. Every city is already on a path to being smart. The only question is how fast, and how smart!

20 WHAT MAKES A CITY SMART? HAS LACKS 01 ANALOG CITY No Broadband Connectivity, Communication, or Infrastructure Physical infrastructure, and community Government Services provided in-person No Digital Delivery to Citizens No Big Data No Automation WIRED CITY Has Broadband Connectivity, Communication, and No Big Data Infrastructure for Citizens and Government No Automation Government Services provided via E-government No Cross Department Integration No Centralized Data DIGITAL CITY SMART CITY Departments Collecting Data Independently Departments Automating Independently + Centralized Data across all Departments Cross Department Integration Open Data Policy, Cyber Security, E-Governance Big Data and Data Analytics + Poor alignment or sequence of Policies and Administrative Structures to Tools No Cross Department Integration No Centralized Data Poor Data Analytics Crowded ecosystem of mismatched digital tools Lack of High Beam Leadership Data Analytics not driving decisions surrounding Quality of Life, Performance of City, and Sustainability improvements Excessive Automation SMART CITY Digital tools and strategies matched for the ecosystem Strong and holistic 3 yr, 5 yr, and 10 yr planning Big Data being used by Leaders to improve Quality of Life, Performance of City, and Sustainability Right Balance of Automation and People, preserving the culture, and sense of community of a city Design and planning across the full range of economic, social, cultural, and environmental parameters

21

22 A highly automated and digital city provides higher efficiency at lower costs. It will also serves and attracts residents and businesses at higher levels which helps the city grow its tax base and complete a cycle of modernization.

23 New and Growing Risks in Cities Cyber security - internal & external Complexity of systems risks Disenfranchising older or younger generations Autonomous or automated systems failures New regulatory controls Hiring the needed talent for new systems

24 Developing Holistic Smart City Models Frost & Sullivan 2014

25 EIGHT CRITICAL AREAS OF FUNCTIONALITY Smart Government Smart Healthcare Smart Education Smart Transportation Increasing the connection between citizens and their city services Using big data, wearable technologies, and intelligent diagnostics to provide optimal healthcare Enhanced learning environments and personalized education for each student Reducing the time it takes to get to a destination, having a lower environmental impact, and lessening the costs of transportation Smart Security (fire/police) Smart Homes (Living & Waste) Smart Buildings Smart Integration Innovations for community monitoring and helping to keep citizens safe Using technology to save people time and automate aspects of their life. Using technology to minimize the negative energy and environmental impacts of structures and spaces. An ability to integrate to existing or legacy systems for data sharing and collaboration

26 Evolution of Smart City Standards Over time, standards are developing for smart cities. Major international standard bodies are working on a wide range of standards. Each of these groups have different areas of expertise and committees focused on parts of the total smart city development process - through strategy, process, and technical specifications.

27 Areas of Focus: International Standards Bodies Placing major worldwide standards activities in BSI framework (Copyright BSI 2015)

28 Digital City Development Process Many cities are failing at the early critical steps in the digital process. They have been purchasing technology for years without a holistic plan for integrating technology systems across departments and services. Have a master digital plan Upgrade digital process governance Hire the digital talent needed

29 THE MASTER PLAN Without a compelling and complete vision for a city becoming a smart city, there will be many mistakes and much wasted money along the way Self Service Ordering of City Services Blueprinting Data to Augment Decision Making Project Management Excellence Prioritize Investments Quarterly or Monthly Smart City Cross Functional Meetings Long Term Planning Across Departments Tie Technology to Long Term Plans Vendor Management Integrated Security

30 BUILDING A DIGITALLY MATURE CITY City leaders must begin to measure the level of digital maturity they have achieved. The old saying of what gets measured gets done and it is impossibly to know you are making the progress needed without a measurement system FPOV s City-Based Digital Maturity Dimensions 1. Vision and Leadership 2. Workforce Skill and Talents 3. Design Capabilities 4. Hardware & Networking Infrastructure Maturity 5. Software Application Maturity 6. Data Intelligence (DIKW) 7. Level of Departmental Integration 8. Resident Engagement 9. Risk Control

31 What Risk Pools Can Provide for Smart Cities 1) There is much more data available to help manage risk. You are also able to gather it in real time which improves risk mitigation options 2) There are new components of risk to consider (cybersecurity, system uptime, innovation risk, internal staffing risks) 3) As new types of risks and policies are created, loss controls can be improved through education, assessments and governance ****If risk pools do not integrate much more deeply into the smart city data stream, competitors will find ways to do it better than you

32 Risk Pool Opportunities A portfolio of risk mitigation policies for cybersecurity & data misuse Policies that offset risk from autonomous systems (physical & AI-based) Risk mitigation education for best practices with cybersecurity & autonomous systems

33 AN INTEGRATED SECURITY MODEL FACILITIES Hacker PHYSICAL 3rd Party Co-conspirator ELECTRONIC CYBER Internal Threat PEOPLE The ability to join and manage as a single unified platform the three pillars of security to mitigate risks ORGANIZATIONAL ASSETS

34 AN INTEGRATED SECURITY MODEL FACILITIES Hacker PHYSICAL 3rd Party Co-conspirator ELECTRONIC Internal Threat PEOPLE The ability to join and manage as a single unified platform the three pillars of security to mitigate risks ORGANIZATIONAL ASSETS

35 AN INTEGRATED SECURITY MODEL FACILITIES Hacker PHYSICAL 3rd Party Co-conspirator CYBER Internal Threat PEOPLE The ability to join and manage as a single unified platform the three pillars of security to mitigate risks ORGANIZATIONAL ASSETS

36 The Three Security Firewalls RISK TOLERANCE (ESRM) GOVERNANCE (P&P) AUDITS & ASSESSMENTS SECURITY TEAM SKILLS CONSTANT STRATEGY EVOLUTION FOUNDATIONS DIGITAL FIREWALL HUMAN FIREWALL PHYSICAL FIREWALL DEVICES APPLICATIONS SECURITY AI S TRAINING TESTING ACCOUNTABILITY ELECTRONICS MONITORING ACCESS CONTROL

37 There are many who want to ride the train but few willing to lay track. -Donald Murray

38 DOWNLOAD THIS PRESENTATION BUILD YOUR RIVER OF INFORMATION THE DOWNLOAD FROM MIT NEXT STEPS STUDY CHANGING CONSUMER & INTERNATIONAL INNOVATIONS

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