Smart Cities. Standards will drive sustainable adoption Jacques Vermeulen Nokia Nokia Internal Use

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1 Smart Cities Standards will drive sustainable adoption Jacques Vermeulen Nokia 2016 Nokia Internal Use

2 Global context for state and local governments 2 Nokia 2016

3 Increasing pressure on cities are driving demand for city optimizations URBANIZATION, POPULATION GROWTH, GDP COMPETITION AND DATA EXPLOSION 2% 53% OF THE GLOBAL POPULATION OF THE EARTH S LAND BY 2020: 18 billion CONNECTED M2M DEVICES TO REACH LARGEST CITIES BY POPULATION & GDP By 2050: 70% OF ENERGY CONSUMPTION AND CARBON EMISSIONS x3 THE NUMBER OF PEOPLE OVER 60 YEARS 2.5 trillion DIGITAL DATA ITEMS CREATED WORLDWIDE EACH DAY. 70% WILL BE URBANITES 3 Nokia 2016

4 City Response example Singapore Smart Nation initiative: Anticipation, Vision and Execution Past In Progress Future NG-NBN National Fiber Network Wireless National WiFi Network COLLECT & COMPREHEND Deploy an operating system accessible by all stakeholders CONNECT Deploy sensors using Above Ground Boxes for electricity & connectivity Generalized Heterogeneous Network to boost Citizen Quality of Services Sustain livability and position Singapore as a (regional) Digital Harbor to drive economic growth. Singapore Government ICT Investment in BSGD (1SGD = 0.65Euro) Source: IDA Nokia 2016

5 City response example Bristol Open Programmable City Bristol City Council, Bristol University, Partners 5 Nokia 2016 BIG DATA GENERATION

6 URBANIZATION ECONOMIC SUSTAINABILITY CITY SOCIAL SUSTAINABILITY ENVIRONMENTAL SUSTAINABILITY 6 6 Nokia 2016 COPYRIGHT 2015 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

7 Smart City, variety of topics with common themes! To name a few Social Sustainability Environmental Sustainability Economic Sustainability Governance Sustainability Public Safety (budget disproportionally to urbanization and globalized threats) Social inclusion in a digital multicultural urbanized age Optimized crowd management (increasing number of crowded events in city i.e. parades, sports, festivals, ) Optimizing Urban utilities consumption (Energy: supplydemand, renewable; Water: tap and waste) Optimizing Urban mobility (reducing carbon fuel consumption, increasing active and public transit, reduce ineffective & still traffic, auto surveillance & control) Doubling broadband speeds permanently can add 0.3% to GDP 1 IoT boosts GCP : 1.1B things connected in 2015, 9,7B by => IoT SMEs(Business Launch, Open Data) Scalable, real-time, trusted, secured, profile based access/opt in open data policy and platform Intra government administration efficiency City operations resilience Inter-City interaction Civic participation 1 Arthur D. Little, Source: Gartner, March Nokia 2016 Nokia Internal Use

8 Smart Infrastructure, facilities The Smart Internet City, variety of Things of topics has a transformational impact on all industries, reshaping Larger view business models, value chains, and entire industry configurations Public Safety IT Patient care Digital Health Retail Services Smart stores Mobility Smart Homes Industries Other Smart City Utilities 8 Nokia 2016

9 The need for horizontal approach Emergency Response example 9 Nokia 2016

10 Industrialization is possible! Scalable, Secure and Cost efficient IoT Platform Vertical Point Solutions are expensive High Cost for integration Duplication of effort Underutilized resources No Economies of Scale Horizontal approach drives down cost Adopt Best Practices Streamline Operations & Reduce Costs Mix and Match devices and Applications 10 Nokia 2016 Nokia Internal Use

11 Security NOKIA IoT/M2M End-to-End Ecosystem View Manage Service/SIM Subscription Provisioning Rate Plans, Charging esim, Enterprise Mgmt CRM ERP OSS M2M/IoT Applications Telematics Utilities Healthcare Automation Industrial IoT Platform (IMPACT) Application Enablement Data Collection & processing Device Management Connectivity layer (CMP) Enterprise Customers M2M APP ERP BPM CRM Enable Applications API exposure, Trends, Dashboards SIM Billing Fixed (IP & Optical) Operator Network Wireless (licensed & unlicensed) Operator OSS/BS S Manage Devices device discovery, OTA upgrades, Configuration M2M Gateway M2M/IOT Devices (Fixed & Mobile) Monetize Device data & event collection, storage, Analytics Applications Location, Fault management, Enterprise mgmt 11 Nokia 2016

12 The Internet of (hacked) Things on the rise As we connect more devices, and create more value from the generated data, the risk for abuse, and security breaches goes up October 2014 Millions of smart meters in Spain compromised February million BMWs impacted July million Chryslers recalled 12 Nokia 2016

13 Comprehensive Approach to IoT Security Secure the endpoint and analyze the traffic 1) Manage endpoints (sensors) to establish trust Industry best practices: 2-way authentication Signed software delivery from trusted source to ensure authenticity Certificates, keys, encryption OAMP Device Management Link Connected devices Device Management IOT applications Data Collection Data Link analyze inform 2) Analyze Traffic pattern & Detect anomalies using Analytics Guardian 3) Device profiling of IoT devices; alerts and mitigate any deviations 13 Nokia 2016

14 Some examples 14 Nokia 2016

15 Economic Sustainability IP network infrastructure: City of Calgary, Canada Challenges Solutions Benefits Address exploding demand for bandwidth in growing city Reduce operating costs and improve ROI (leased fiber) Resilient & redundant solution for silo d agencies Meet the future demand for long-term sustainability 15 Nokia 2016 Network design & equipments, engineering, implementation, project management Mission critical IP/MPLS network for all authorities operations (administrations, public safety, transportation ) Consolidating separate networks for high-quality user experience, lower network administration costs and a better return on investment. Risk mitigation/disaster recovery: remote connectivity allocation over alternate Consolidation of broadband / leased line requirements Easier management Ready to support real-time high speed applications (video citizen service, collaboration )

16 Economic Sustainability Urban Mobility: financing public transport transit shelters modernization Concession of urban public transport transit shelters to media agency Transit shelter with digital signage and media agency allowed to use some of the surface for advertising Integrated Small Cell / Wi-Fi for city agencies operations, advertising and internet access (optionally on public transport Wi-Fi connectivity) Public transport real-time monitoring and analytics 16 Nokia 2016

17 Economic Sustainability Open Data How will your city spur citizens, enterprises and visitors to thrive on city data being generated? OPEN DATA PLATFORM Open Data benefits: Public data (with role based access control) has significant potential for re-use in new products and services; Addressing societal challenges having more data openly available will help us discover new and innovative solutions; Achieving efficiency gains through sharing data inside and between public administrations; Fostering participation of citizens in political transparency, economic, social life and environmental sustainability. 17 Nokia 2016

18 Environmental Sustainability Smart Building Management Systems The context Cities own typically hundreds to thousands of agency buildings Heating and cooling is approximately 40% of the average commercial building energy consumption. Lighting accounts for around another 30%. Moving BMSs from a standalone or closed environment into a wider network of data collection, sharing, and system management by using IoT platforms will optimize BMS energy waste (e.g. 8% of US total energy usage). A reference: Since 2014, the headquarters for Schneider Electric (aka La Hive: Hall de l Innovation et Vitrine de l Energie) is powered by Nokia s IoT platform. It is the showcase for SE s solutions and services for building energy management and optimization in a Smart City context. Opened in 2008, La Hive has demonstrated significant energy savings in a short space of time: its average annual consumption fell from 150 kwh/m² in 2009 to 78 kwh/m² in 2012, a reduction of 47 %. *Source: Honeywell 18 Nokia 2016

19 Environmental Sustainability Smart Waste Rapid rise in volume and cost*: By next decade, 50% increase of the total volume of waste generated globally. The annual cost to manage that waste will rise from $244 billion to $375 billion. The adoption of innovative technologies (next to programs to share with those in need, finding the good in trash and making it easy for people to recycle) will result in more integrated waste management solutions. First logistics intend is fewer trucks to run and fewer trips to make. This can be achieved by placing sensors in community waste bins in combination with waste collection fleet and pick-up itinerary management solutions. A reference: Proof of concept with Telecom Italia. *Source: World Bank 19 Nokia 2016

20 Social Sustainability Mobility: traffic monitoring Urbanization drives traffic congestion and traffic law violations resulting in increased: travel time air pollution fuel consumption traffic hazards stress on public health (stress, fatigue, respiratory ) Traffic and crowd monitoring to: analyze urban traffic patterns implement new multi-modal traffic solutions warn traffic users, citizens and visitors in real-time assist event and public safety operators Competing cities drive demand for event & crowd management solutions. e.g. The Netherlands: yearly about event visitors for the top 100 events events with more than visitors 20 Nokia 2016

21 Social Sustainability Smart Home Smart homes become increasingly important for: ageing population young population social vulnerable population Some examples of ambient assisted living What about new old ways of thinking wealthy assisting social vulnerable for obtaining minimum services (e.g. house warming) multi-generation housing environment ehealth (diabetes type II) 21 Nokia 2016

22 Social Sustainability Social inclusion The city game Zwerm initiative (Ghent, Belgium) The city card A-card (Antwerp, Belgium) 22 Nokia 2016

23 Standardization will drive sustainable adoption Scalable, Secure, Cost efficient IoT Platform Vertical Point Solutions are expensive High Cost for integration Duplication of effort Underutilized resources No Economies of Scale Horizontal approach drives down cost Adopt Best Practices Streamline Operations & Reduce Costs Mix and Match devices and Applications 23 Nokia 2016 Nokia Internal Use

24 24 Nokia 2016