Digital Transformation in the new Smart City

models: challenges and opportunities

Manuela Mellado LeónBusiness Development Global Unit - Smart Cities

02.06.2016

INTERNET OF THINGS

What is IoT?

Internet of Things

3

Internet of Things

Transformation of any physical object into a digital data generator

Status

Location

Usage

Monitoring

Customization

Remote Access

Predictive

Collaborative

Autonomous

DATA CONTROL INTELLIGENCE

Keys to success in IoT: The next “industrial revolution”

Internet of Things

$1.6 Trillion Volume of the opp

2024 Data. Source: “M2M Global Forecast &

Analysis 2014-24”, Machina Research, June 2015

27 BillionIoT Connections

2 BillionTerabytes

CELLULAR

LPWA

FIXED

WIRELESS •Easy installation (few base stations)

•Excellent coverage (high penetration)

•Low power consumption (10 years battery)

•Low cost ($ -5 per device)

LPWA Network deployment

Security and Privacy

Visión

E2E

Big Data

High impact

use cases

Guarantee privacy of customer

data

Collaboration between Business Analyst and

Data Engineers & Scientists

Our strategy to capture the IoT opportunity

Internet of Things

IoT Connectivity Platform

E2E Solutions

Smart

Mobility

Smart

City

Smart

Retail

Smart

Energy

New

Business &

Innovation

eHealth

SHOP

5

IoT platforms built in a mixed open ecosystem

Internet of Things

6

Partners Startups & Developers

Open

IoT

Platforms

SMART CITIES

Global trends towards the digital transformation of the cities

Digital Transformation – Smart Cities

The Digital Revolution has reached citizens,

who demand quality digital urban servicesOver half of the world’s population live in

urban areas

Cities are preparing to compete globally

More than 60% of the world’s population will be living

in cities by 2050

1

3

2

In 2020 Latin America will occupy the 2nd place

worldwide in terms of installed base of smartphones,

just behind Asia, according to GSMA analysis

INTERNATIONAL BENCHMARK

% Population living in cities

(2009 - 2025)

People occupying 2 % of the world’s land will consume

3/4 of its resources

+ Capital

+ Talent

+ Tourism

Today, more than ever, the challenge of the cities is to bring the digital experience to the citizens

Digital Transformation – Smart Cities

Innovative city that uses technology (advanced infrastructures, platforms and services)

to provide more efficient urban services,

improving the quality of life of citizens,

and developing a new relationship between the government and local companies,

meeting present and future needs of the city in economic, social and environmental terms, guaranteeing sustainability

Smart City

The evolution of a Smart City

Digital Transformation – Smart Cities

• Incorporate IoT technology

in vertical services

• Search for efficiency

• Information in vertical silos

• Definition of Smart City

Strategy

• Definition of city and

citizens indicators

• Priority in verticals to

optimize

• Adequate Regulatory

framework

• Information available to the

local business fabric

• Enabler of open innovation

ecosystem for developers and

entrepreneurs

• Transparency and Open Data

• Integrate information from

different vertical services

• Predictive and prescriptive

models

• Synergies through a common

horizontal platform

1 2 3 4

EARLY STAGE VERTICAL CONNECTED ENGINE OF GROWTH

Local Government as the owner of the data that the city generates

We bet on an open technological model…

Digital Transformation – Smart Cities

Sensors

Systems

Data Broker

Big Data Data Analytics

DashboardsReports& KPIs

Open Data Open source platform becoming the “de facto” standard

adopted by cities.

Open architecture, open APIs, open source

89 cities from 19 countries in Europe, Latin America and

Asia-Pacific in the Open and Agile Smart Cities initiative

(www.oascities.org)

Backed by the European Community (300 M€ invested

since 2011).

Key Industry Players as members of the FIWARE

Foundation (Orange, Atos, Engineering and Telefonica).

Sto

rage &

Analy

sis

Vie

wD

ata

Collecti

on

Citizens

SMART CITY PLATFORM

Digital Transformation – Smart Cities

…where vertical services implementation might differ, according to the city´s maturity and priorities…

Street

LightningWaste

Mng.

Watering Parking Tourism Video

Surveillance

…

Efficiency

Quality of life

Governance

Growth

…supporting an Open Data ecosystem…

Digital Transformation – Smart Cities

Open Data: accessible by anyone, anywhere, no limits

Valencia: over 100 data sets are publised in the Open Data Portal,

on domains including Mobility, Environment or Health.

Santander: over 60 data sets being used by apps developed by

local providers. Uses including tourism info (e.g. city cultural

agenda, retail locations) or public transport info (e.g. bus stop,

taxi stop location)

Taxi Santander Bus SantanderRetail Santander

We are enabling the creation of sustainable business models…

Digital Transformation – Smart Cities

A new Waste Management model

Guadalajara Population: ~80,000

Telefónica participates in the project providing

its Smart City platform to the Waste

Management service operator_

15 years contract, starting Q4 2015

City Council pays a fixed + a variable fee on the

Waste Management Service. Variable fee based

on 25 KPIs_

• Inspectors manual collection

• Sensors (>600 waste containers)

• Incidences Response Time: opened via

Citizen APP, Police, etc.

• Citizen surveys (subjective)

Digital Transformation – Smart Cities

…and making our own Big Data available for our clients

Changing the vision of what a tourism app should be like…

THANK YOU!