transforming cities in china: the interplay ofatc3.bentley.edu/conferences/service2011/service2011...

Transforming Cities in China: The Interplay of Business Architecture, Service Design and Smart Technologies

The Art and Science of Service

June 8-10, 2011, San Jose, California

Business Architecture, Service Design and Smart Technologies

Guang-Jie Ren, PhDIBM Almaden Service Research

[email protected]

© 2011 IBM Corporation

Actionable Business Architecture forforforfor Smarter Cities2

IBM SMARTER CITIES ANDACTIONABLE BUSINESS ARCHITECTURE


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The trend of urbanization at a global scale

In 2007, for the first time in history, the majority of the world’s population—3.3 billion

people—lived in cities. By 2050, city dwellers are expected to make up 70% of the total

population or 6.4 billion people.


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IBM Smarter Cities Program is designed to help cities address top challenges

Public Safety

Government

Services

Transportation

Applying the principles to

core systems in the city


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Education

Healthcare

Energy and

Water

ICT

core systems in the city

Other Core SystemsIBM Smarter Planet http://www.ibm.com/smarterplanet/us/en/

IBM Smarter Cities http://www.ibm.com/smarterplanet/us/en/sustainable_cities/ideas/index.html?re=spf


Cities are complex ecosystems; they rely on multiple stakeholders and core systems to meet the needs of citizens and local businesses

Federal/National

State/Province

Citizens Core Systems

County

City GovernmentFund & Administrate via Create and deliver

Direct or Indirect influence through policies and funding

Observations

Citizens and

Businesses

Core SystemsTransportation, Public Safety,

Water, Utilities, Healthcare,

Education, Social Services,

Culture, Economic Dev, Urban

Planning, Environment, etc.

City GovernmentManage and Support Business Areas:

Vision, Policy, Planning, Budgeting,

Revenue Collection, Finance, HR, Legal,

IT, Admin, Procurement, Facilities, etc.

Fund & Administrate via agencies & programs

Create and deliver front-line services

Private/Non-profit

organizations

Participate in, influence and evaluate the core systems

Fund, elect, influence and evaluate the government at all levels


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Observations

• Local government does not necessarily own all the resources; it has a need to collaborate with other stakeholders

• Citizens often hold the local government accountable for the various services they receive, regardless of providers

• Public policies tend to be made in isolation; opportunities to address cross-system challenges are often overlooked

How can we represent the city ecosystem in ways that

encourage collaboration and help resolve challenges?

Reference: Ren & Sanz (2011). An Integrated Approach to Transforming the City Ecosystem, Annual SRII Global Conference, San Jose, California, USA, 29 March – 2 April, 2011.


IBM Component Business Modeling (CBM) offers a common framework for various stakeholders to make informed decisions from the same facts


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Reference: IBM. (2005). Component Business Models: Making Specialization Real. Somers, NY: IBM Institute for Business Value.


IBM Actionable Business Architecture (ABA) integrates strategy, operations and technologies through industry-leading methods, models and tools


7Reference: IBM. (2009). Actionable Business Architecture. Somers, NY: IBM Global Business Services.

IBM. (2010). Actionable Business Architecture: IBM's Approach. Somers, NY: IBM Global Business Services.


IBM Actionable Business Architecture is leveraged to address the question

IBM Approach Overall Design

Component Business Modeling Business Models

City Ecosystem

• Aligned with Strategy Models

• Driven by Business Scenarios

Actionable Business ArchitectureTransportation Public Safety Economic Dev.

…

Local Govt Core Systems• Water Mgmt

• Citizen Health

• Energy

• Environment

• Urban planning

• Social Services

• Education

• Culture and Recreation

• Judicial and Justice

• etc.


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Dire

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xecu

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Marketing & Customer Management

Co ns ume r Se gme nta ti on

Cu stome r Rel at io ns hi p Stra teg y

Ma rke ti ng Stra te gy & Pla nn in g

Cus to me r Beh av io r Mod el in g

Ma rk et & Co mpe t itor Res ea rch

Cu stome r Sa t isfa ct io n Me as urem en t &

M an age me nt

Se gm en ta t io n Ma na gem en t

Cli en te ll i ng

Ca ll Cen te r

Cam pai gn Man ag em en t

Cu stom er Servi ce

Lo ya lty

Cus to me r Co mmu ni ca ti on s

Mas s Mark et in g & Ad ve rti si ng

T arge t M arke t in g

Afte r Sa le s Servi ce s

Custom er Rep os itory

P roducts

Me rcha nd is e Stra teg y

Me rc ha nd is e Pla nn in g

Asso rtm en t Pla nn in g

Pro du ct De ve lo pme nt (e.g . Priv ate L ab el )

Bra nd Ma na ge me nt

Pri ci ng Strate gy

So urci ng Pl an ni ng

Pric e / Prom oti ons Man ag eme nt

In ven tory Ma na ge men t

Su pp ly T erms Ad mi ni strat io n & Pri ci ng

Prod uct Li fec ycl e

Ma na ge me nt (PL M)

Al l oca t io ns

PO & T ra de Fu nd s Ma nag em en t

Purc has in g / So urc in g

Dema nd F o re ca st in g

Mas te r Da ta Ma na ge men t

Store and Channel

Mul t i-c ha nn el Strate gy

Sto re & Ch an ne l Strateg y

Sto re Desi g n & L ay ou t

Cha nn el De si gn & L ayo ut

Store & Cha nn el Pro f itab il i ty

Sto re Op erat i on s Man ag em en t

T ra ns ac ti on Man ag eme nt

Pl an og ram

Re pl en ish me nt

Servi ce s Del iv ery

Pric e Cha ng in g

Ti me & Atte nd an ce

F lo or Sto ck in g, Ba ck Ro om T ask Mgt

Los s Preve nt i on

Wo rkforc e Man ag em en t

POS Exe cut i on / Cas h Ma na gem en t

Mu lt i -cha nn el Cal l Cen ter

Distribution & War ehousing

Di strib ut i on, W areh ou se , Sup pl y Cha in

Stra teg y

T ra ns po rta t io n Pla nn in g

Su pp li er Rel at i on sh ip Pl an ni ng (L og is ti cs )

Sup pl ie r Pe rfo rman ce Man ag eme nt

In-b ou nd L og is t ics

In tra -co mpa ny & Outb ou nd L og is ti cs

T ran sp ortat io n / Fl ee t M an age me nt

W areh ou se M an ag eme nt

Di strib ut io n Ce nter Ope rat i on s

Yard M an ag eme nt

Re turns & Rec la mat i on

Pro du ct Tra ck & Tra ce

T ran sp ortat i on / Fl e et Ope ra t io ns

Business Administration

Corpo rate Strate gy

Fi na nc ia l Ma na ge men t & Pla nn in g

LOB Pla nn in g

Lo cat i on Strate gy

Al li an ce Ma na ge me nt

Bu si ne ss Performa nc e Rep ort i ng

L eg al & Reg ul ato ry Comp li an ce

Rea l Estate & Con struc ti on Man ag eme nt

Ri sk Ma na ge men t

Sto ck L ed ge r HR Man ag em en t (Care er De ve lo pme nt, Tra in in g, Recru it i ng )

HR Ad mi ni strat i on / Payro ll

Corpo rate Au di t

Co rp ora te Acco un ti ng (GL AP, T rea sury , e tc

Sa le s Au di t

In di rec t Proc urem en t

Cre di t O pera t io ns

PR & Inve stor Rel a ti on s

IT Sys tems & Ope rat i on s

Dire

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M an age me nt


Cli en te ll i ng

Ca ll Cen te r


Cu stom er Servi ce

Lo ya lty






P roducts






Pri ci ng Strate gy







Al l oca t io ns





Store and Channel








Pl an og ram

Re pl en ish me nt


Pric e Cha ng in g



Los s Preve nt i on






Stra teg y









Yard M an ag eme nt







LOB Pla nn in g









Corpo rate Au di t


Sa le s Au di t





Dire

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M an age me nt


Cli en te ll i ng

Ca ll Cen te r


Cu stom er Servi ce

Lo ya lty






P roducts






Pri ci ng Strate gy







Al l oca t io ns





Store and Channel








Pl an og ram

Re pl en ish me nt


Pric e Cha ng in g



Los s Preve nt i on






Stra teg y









Yard M an ag eme nt







LOB Pla nn in g









Corpo rate Au di t


Sa le s Au di t





Dire

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xecu

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M an age me nt


Cli en te ll i ng

Ca ll Cen te r


Cu stom er Servi ce

Lo ya lty






P roducts






Pri ci ng Strate gy







Al l oca t io ns





Store and Channel








Pl an og ram

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Corpo rate Au di t


Sa le s Au di t





Business of IT Finance Human CapitalPayment

…

Shared Services• Procurement

• Asset Management

• Tax Collection

• etc.

Operations Models IT Models Investment and Initiatives


The central piece is the City Ecosystem Model, providing a shared view of the city on which various stakeholders can make informed decisions from the same facts

Business Component is a part of an Business Competency defines a broad

business area with characteristic skills and Business Component is a part of an

organization that has the potential to

operate autonomously

business area with characteristic skills and

capabilities, for example, public safety,

transportation, urban planning, etc.

Accountability Level characterizes the

scope of decision making. The three

City Ecosystem Model: Base Version


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scope of decision making. The three

levels used in CBM are Direct, Control

and Execute.� Direct is about strategy, overall direction

and policy.

� Control is about monitoring, managing

exceptions and tactical decision making

� Execute is about doing the work


Through the Business Architecture, IBM is helping cities to address a wide range of strategic, operational and IT challenges

Strategy Emerging Practices

� Understand City Ecosystem � Determine Sourcing Model

Performance Alignment

� Understand City Ecosystem

� Make City Smarter

� Improve Quality of Living

� Facilitating Cost-Take-Out

� Promote Economic Development

� Determine Sourcing Model

� Adopt Cloud Computing

� Leverage City-Wide Shared Services

� Leverage Regional Shared Services

� Rationalize Initiative Portfolio� Measure City Performance


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� Rationalize Initiative Portfolio

� Restructure Application Portfolio

� Cope with Change

� Establish Regional Ecosystem Framework

� Measure City Performance

� Benchmark City Performance

� Improve City Performance

� Improve City Capabilities


TRANSFORMING CITIES IN CHINA:THE CITY OF SHI JIA ZHUANG


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China is urbanizing, with rapid growth in the number of cities, urban population, urban disposable income, housing, transportation, and so on

80%

100%

600

800

Number of cities

Urban

Population

0%

20%

40%

60%

1953 1964 1982 1990 2000 2010 2020 2050

0

200

400

600

2008200019901980197019601952Year

Rural

Year

Key Indicators 1990 2000 2006 2007

• Urban Citizen Disposable Income (RMB) 1510 6280 11759 13786

Forecasted


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• Urban Citizen Disposable Income (RMB) 1510 6280 11759 13786

• Residential Housing (Square Meter) 13.7 20.3 27.1 28

• Public Transit Vehicles per 10,000 Population 2.2 5.3 9.1 10.2

• Private Vehicles per 10,000 Population n/a 0.50 4.32 6.06

• Telephone/Mobile Phone Coverage (%) 1.11 20.10 63.39 69.45

• Green Area per Capita (Square Meter) 1.8 3.7 8.3 9.0

• Household Spending on Education (%) 11.1 13.4 13.8 13.3

• Household Spending on Health Care (%) 2.0 6.4 7.1 7.0

Reference: http://www.stats.gov.cn/tjsj/ndsj/2008/indexch.htm


Unprecedented challenges facing Chinese cities as their growth accelerates

Industry Upgrade & Industry Upgrade & Competitiveness

Economy

Environ-ment

Population

Pollution, Climate Changes

Migrant ManagementTalent Development


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Public Services to Meet Citizen Needs

Resources and Infrastructure

Quality of Living

Infra-structure

Sustainable Development


Carbon Neutral | Eco Friendly | Smarter City

The City of Shi Jia Zhuang, China: Creating a new district as the model for the Township of the Future

The City of Shi Jia ZhuangHu Bei Province | China


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The project successfully addressed the following needs of the city leadership

Vision � Set a development vision for Smarter District, based on leading domestic

and international experience

Framework � Built a complete framework for Smarter District, including 66 capability

components across 5 domains and 3 levels, with over 100 smarter ideas

Capabilities &

KPIs� Put forward more than 80 capability requirements on Smarter District,

from which 29 most representative KPIs were derived


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Construction

Projects� Formulated the plan of 35 projects for Smarter Zhengding, each with the

analysis of technical solutions, investment modes and projected ROI

Supporting

Mechanisms

� Provided information support for all of the 24 KPIs that are under the

eco-city and low-carbon objectives as specified in the district’s master plan

� Made 14 recommendations on the integration of Smarter District with

the eco-city and low-carbon objectives


More information can be found in the Marketing Brochure

Marketing Brochure:

Actionable Business Architecture for Smarter Cities


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http://www-935.ibm.com/services/us/gbs/bus/html/actionable_business_architecture.html

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