Smart Devices and Embedded Sensing Technology – Impacts on Water and Energy

Digital technology and intelligent infrastructure form the technical foundation for smart cities. Innovative technologies enable data to be delivered by and through connected devices. How is it actually empowering cities, utilities, businesses and consumers to better manage their energy and water? How, in real practice, is the untapped power of smart devices harnessed to make cities more efficient and conserve resources? What’s driving the rapid adoption of emerging technologies? How are these technologies promoting sustainable economic growth?

  • Moderator: Stephen JohnstonVice President of Corporate Development, Itron
  • Nicola VillaManaging Director, Big Data & Analytics, Cisco Consulting Services
  • Jim AndersonVice President, Smart Cities North America, Schneider Electric
  • Markus BreitbachVice President Global Sales and Marketing, M2M Competence Center, Deutsche Telekom

Transcript

Stephen Johnston

My name is Stephen Johnston and I am going to be moderating this workshop; Workshop 10, Smart Devices And Embedded Sensing Technology – Impact On Water and Energy. If that’s not what you were planning to talk about, you may leave, unless you are panelist or you want to be sick and for [tip 00:24]. It’s a pleasure to have all of you here, and like I said my name is Stephen Johnston and I am with a company called Itron. We have a very distinguished panelist group today. We really mean discussion but this is a participatory event. We expect lot of the questions and dialogues from the group. Our panelists include Nicola Villa, who is Managing Director, Big Data & Analytics, Cisco Consulting Services. Jim Anderson, Vice President, Smart Cities North America, Schneider Electric. And then Markus Breitbach, Vice President Global Sales and Marketing, M2M Competence Center, Deutsche Telekom. So we’re going to tee up this discussion a little bit and then we are going to move into some panel discussion, but clearly we would like to make this interactive. So if you have a question, [inaudible 01:28] we want to learn from you. There’s lot of experience in all [inaudible 01:32]. So, please interject.

To tee us up a little bit, we are already seeing impact of smart sensors and embedded devices in the world we live in today. We are seeing it because cities have invested in infrastructure, technology, and data. It’s funny, most of the applications that are being released today are pertaining to [inaudible 01:54] In Santander, Spain, 12,000 sensors below the asphalt, on poles, in garbage cans; it helps consumers to get where free parking spaces are, and to determine whether or not garbage needs to be picked up; whether or not potholes need to be fixed. Obviously, all those applications can ultimately be saving money for cities. In Portland Oregon, the sensors throughout Portland are monitoring air quality, so that the city can figure out where allergies may be triggered, which stream of applications of sensors you need in measuring air quality…

One of the most interesting applications in the world today is, I think it’s a [inaudible 02:36] – it is a crowd source app, and the app basically tells you where there is gunfights, and so you can avoid gunfights by looking at your mobile application and so you can drive around them and avoid them instead of running into them, also in real time. We must remember that people are sensors too. Especially people with devices, IP based devices. So when we think about applications embedded sensors, we should also think about all of us that are carrying around our iPhones or other devices that we have today.

As it relates to energy and water, where we are reminds me of the telecommunications industry in 1915. In 1915, speech was carried across the Atlantic for the very first time. And it was a very short conversation from Paris, France [inaudible 03:36] Virginia. But that was an amazing accomplishment, because it reduced the amount of time it took to communicate from 10 days to 10 minutes and that was an amazing innovation. However it wasn’t until 10 years later that the actual first telephone conversation took place across the Atlantic. And so where we stand today is, about 10 years ago, people started investing heavily in infrastructure and data, and today about 10 years later, give or take a few years, we are starting to have conversations about energy and water because of all the infrastructure investments that we are made many [years ahead 04:20]. Today we can tell where the power is out, where it is not working; we can predict where it is going to be out. We can determine if there is congestion on a grid or if we need alternative sources of energy to be placed in certain places. On the water side, what’s becoming more and more common today is this leak detection technology, and our company has heavily invested in that. The cities are losing millions and millions of the dollar because the water is falling off the system, after it has already run through the condition systems of the city.

And so our panelists today are going to talk about some of these trends that are taking place in energy and water, and talk about infrastructure and investments that are being made in data analytics. I’ll stop there and turn over to Nicola. I’ll let you walk us up…

Nicola Villa

Thank you Steven [inaudible 05:12] so I hope I am not going to bore you with that part, so I will try to keep it very quick and sharp. I thank all of you particularly for coming to this section. I have been working in this space for the last 12 years [inaudible 05:28], only recently, basically two months ago, I basically moved from being focused on the [inaudible 05:33] to take a broader in data analytics. So basically it’s an intersection between [inaudible 05:39]. I am going back basically into the last 12 years and the big innovation a couple of years ago that we all faced in the cities was the emergency of broadband. So we are starting to look too far, but… [inaudible] may be coming to the US, North America and Aisa [inaudible] so you were not able to design; your regeneration program was [inaudible 06:11] without having your broadband network in there as well. So we started to think about digital urbanization [inaudible 06:18] which was invented 100 years ago in Barcelona by a gentleman called [inaudible 06:23], so digital urbanization became a reality and today we basically embed some of the network, or digital network into the ability [inaudible 06:30].

The fresh report over the last 5 years being the emergent idea of the interconnected city. But I will contend that every element in the building department, people, objects, vehicles and groups are becoming interconnected as well. [inaudible 06:50] So we look into the combination between a machine to machine, data to things with people and we process all that. And that basically affect that we have all been [inaudible 07:01] and so on. CISCO recently runs a research program, where we basically look in to the values over the next 10 years only the internet [unsure 07:12]. We are estimating this to be $14.4 billion. So between productivity and cost savings and revenue generation for enterprises, we think this is basically the value at this stage [inaudible 07:22]. We call this also the third face of the internet. So the internet was [inaudible 07:28] in the 90’s, and commerce, and then we moved over the past 10 years into social networking and meeting other people, and so now we are basically looking into industrialization so that [inaudible]. The second trend there is that this data being produced by those sensors basically out into the city is starting to be shared. The public sector has largely been, as you know, very much focused on the open data. I will say this is where North America claims its leadership [inaudible 08:00] space, and since 3 years ago, all the innovation that we saw was coming in from Asia and Europe, but through they opened the [inaudible 08:07] they opened the data movement in the US and the Canada, we saw basically that North America claiming back that leadership position in innovation especially in this perspective. [inaudible 08:17] born out of this regional [inaudible 08:20] spread over the world. This is just a very quick snap of what we see what that data will basically [inaudible], but this is the same and I would say marketing flash [unsure], renovation as we see it.

So what this data does is basically help us think about how we can visualize the flow of energy, people, vehicles and other things. This is not a new science. I mean in 2006, with our friend [inaudible 08:45] San Francisco at that time, we started to think about what happens if we take data related to CO2 emissions in the air and transportation, energy consumption and [inaudible], and recycling the waste, and we put them online. So people in the community are going to do the moment it’s published online? We launched this program between [Amsterdam 09:07] and San Francisco, so both cities basically published data at the [district] level about carbon emissions. We immediately saw a wealth of initiatives coming from the community. They took the data, manipulated it and recreated several [inaudible 09:21] and basically used it for every type of purpose. The San Francisco [inaudible 09:24] association came and gave us data, where traffic accidents were taken around the streets. People in [Amsterdam 09:30] saw similar things. So you see, this [cross-expertise], this grassroots movement coming up [inaudible]. And so we started to think about how the governments and businesses would create the infrastructure, but innovation will come from the community level.

If you take a city like Chicago, it’s just a snapshot to what is happening today. So we create the open data, open innovation basically and that produces wealth of application and services into to space.

In the energy space, we still see and we see today, quite of bit of a force, from a regional energy economics analysis being [inaudible 10:08] from a quality perspective. I would say not as quite active in there and is still [inaudible] the rest of the world. So [dashboards] regional dashboards, [inaudible 10:20]. Still however this is a visualization exercise, no yet intelligent system. This is basically leveraging the fact the sensors are becoming [pervasive/invasive] and the sensor level, there are three things, which are happening at the moment. The first is that the sensors are becoming [context 10:38] aware. I know where I am as a sensor. I measure temperature, I measure [water / washer], and basically give that information to the sensor. The sensor also becoming much more powerful. So CPU’s are increasing to [inaudible 10:55] sensors, so computing capacity basically has [inaudible] center level, but in the sensor. And the third point, which is important, is the sensors are becoming energy independent, so we can deploy many more and [inaudible 11:06] basically get power from there. However they three major issues in the data to be attained is: volume, velocity, and variety.

These are very different from each other. So they are [inaudible 11:18] forth in terms of data [inaudible], so there is quite a few applications and services, and the [inaudible] can come and say we going to clean this data and remunerate a new chart. However, volume – huge amount of data – and velocity – this speed, which is [inaudible 11:35]. So we see on those two last issues, velocity and volume, another [inaudible 11:42], which is a way of data emotion and intelligence going to the edge of the network, and going into the data, instead of the data going to the intelligence [unsure]. What we mean there is that we somehow seen some cities and some regional progress moving it away from the centralized [inaudible 11:58] collect data to the edge; you will bring it to the data center, you will manipulate it, you will put an [eyewitness] and basically send it back to the edge, into the intelligence [being run 12:09] at the very edge. So because of the computing capacity being at the edge, you basically bring [inaudible 12:12]. This has given rise to a whole new set of opportunities. We are moving away from [inaudible 12:21] into the capability to [carve] that, action about, and [inaudible] insight on those specific data, which is helping [inaudible] in the network.

The traffic light basically senses a car passing by and switches the green if there is nobody around there, and that happens locally, [inaudible 12:40] information back and forth, and basically manipulating the different parts the network. So they can [inaudible 12:48]. The few projects we were working on in these fronts, we basically put together and work with the city government and the [inaudible 12:58] as you were saying before, Steven. Basically we are collecting the data starting from parking sensors into the side of [inaudible 13:07] this data with lighting, with waste management, we then [inaudible 13:15] monitoring data, and basically see what happens there. The question that we try to solve is how are able to [carve out and size], the moment that those data are basically overlaid on each other, and is there a new service the city can provide [13:26], from a moving from a dashboard to a very real-time analytics [inaudible 13:32]. Is there a business model for operators, telecom operators, energy companies, municipal community and start-ups in this type of work? [inaudible 13:46] result of platforms and letting the data flow through the different sides, and we need to pass this information where [inaudible 13:53].

Last innovation that we are [inaudible 13:56] and I think we have here. In Amsterdam, in the rest of [inaudible 14:00] we started to think about what happens at the moment if there is an IP network, catches the [inaudible 14:03]. So basically we had a couple of the years where city was the say you would be able once the [red light 14:12] is enabled, you will be able to switch on the right when the people pass through. So you going to reduce your visibility [inaudible] lamp post from the luminary from the seminars into the [inaudible 14:22]. Let me say what we will do in the remaining 24 hours when you have a connecting device, which is not serving the original purpose likely, but can you service that, yes [insure]. So we started to think about addition of [14:34] services that came up on top of the infrastructure; Wi-Fi, video surveillance, the idea of letting people interact with light and therefore basically rethinking about [inaudible 14:44]. So we have this idea of living [inaudible], and of a single infrastructure, which is the original purpose [inaudible 14:52], becoming the move that [inaudible 14:55].

The next question that we started to think about [inaudible 15:00] is to move away from the government looking at this investment and, say, complex investment as an infrastructure. And the government coming up to two hours and we have a conversation and [engagement 15:12] with that [inaudible] basically provision from the business world, light as a service. So they practically involved getting [inaudible 15:20] from the city architect, who said, ‘I don’t want to buy your systems from [from China 15:26] and brought this from Cisco, can you send me those service, can you send the decisions – the moment somebody goes by a lamppost, the lamppost is going to be on for 12 seconds, and when the person is gone, the lamp goes off. So the idea of software services moving into [inaudible 15:44] a service, and decision is a service that [too low 15:44]. Thank you.

Markus Breitbach

Yeah, actually [inaudible 15:56] after the presentation of the [inaudible]. I am working for Deutsche Telekom. For those of you who are not familiar with Deutsche Telekom, for example, [inaudible 15:59] other mobile operators as well our European, large system integrators. Going to presently [inaudible 16:14] office taking more care of the IT side of the business and all of the connectivity part. So we as the business unit is sitting in the middle trying to educate mobile guys a little bit with regards to IT [inaudible 16:26] and vice versa, and IT guys with regards to connectivity and mobile IT, delivering solutions, [inaudible] verticals being for example, [inaudible] motor transport, logistics happening, which, in summary, would lead to a kind of small city environment… But obviously smart city is not a solution. Smart city is the subset of plenty of solutions [inaudible 16:52]. So I hope you have taken care of designing for those solutions together with partners. We [don’t] develop everything from scratch; we also make use of for example innovative solutions coming from start-ups applications and applications. When it comes to energy and water, obviously, there are things like smart kit solutions, collecting data, preparing data, storing/sorting data, and later on analyzing the data and running with collection based on the analysis of the results to get out of those data.

I am responsible for sales and marketing based in California but responsible for a global [inaudible17:29] type of services. Happy to be here to share some of the experiences and solutions for you.

Jim Anderson

Good afternoon. Thanks for attending our session. I am Jim Anderson, I am with Schneider Electric. As Steven mentioned, I look after our smart city business in the US mostly. So we have been working on that for probably two years now, and so it has been the lot of the [inaudible 18:00]. But clearly Schneider Electric, for those of you who were in [inaudible] session this morning, you saw from Charbel Aoun, Senior Vice President for Smart city series, to know the view of Schneider Electric; how we are looking at cities. We basically look at cities through the lens of an infrastructure company. So we’re an energy management infrastructure company, and we look at the efficiencies of the infrastructure and the building blocks of infrastructure to move cities to the next level or cities we should be moving to.

You heard the premiere from Toronto this morning talked about the infrastructure being the building blocks or foundational blocks of the city, and you have got to hit the building blocks correct and make them as efficient as you can, and then you can start utilizing those building blocks and utilize the infrastructure for economic development, which then turns into more of a sustainable [inaudible 18:57] from a city perspective. So we will look at it in the lens of an infrastructure company and focus on energy and energy management and the efficiencies around those things. So, Nicola did a great job of outlying some interesting, I would say, advances and where we are at from a sensor technology and the sensor applications perspective. You also heard Charbel talk about, I would say, one project that is very interesting which is the Dallas ICM Project. ICM stands for integrated corridor management, because it is a very specific project that was sponsored and funded by the US department of transportation to demonstrate the ability to take information from various databases, from various different agencies, and how can we improve the congestion on the freeway system, which is about 20 mile section of freeway in Southern Dallas. Actually Dallas along with two other communities, [inaudible 20:02] Taxes.

So it starts to highlight the complexities of different databases and different ways to integrate across different software systems – number one. It starts to highlight the complexities of working through the different government organizations, and how you can actually get people to work together, which is an interesting outcome of that – has been the fact that success breeds success. It’s true because some of the initial government agencies across there where very reluctant to do anything to share information, once they see other people starting to do it and the benefits that start to come from that, then they get on board too very quickly, they want to participate. So there is this whole socialization and this people side of things that is quite frankly very interesting. And this third thing, I would say, is just starting to come into shape now, which is – so this isn’t so much of the technology conversation – this is more of a people side of the equation, which is – how do you get people to adapt to the use of that technology.

So if you got so this intermodal system – it is measuring freeway traffic, it’s measuring the transit system that runs parallel to the freeway, and it’s measuring the secondary roads that run parallel to the freeway as well, and it’s also measuring the parking availability at the transit stations and things like that – and at any given time in real time, people start to give out real time information to the travellers, where they be in transit, whether they be in their car, on the freeway or on the secondary road, about what is the situation; and if there is a problem, it will notify. It will send messages to the people, first through the message sign boards on the interstate, soon to be developed will be a mobile app. So go and get that. And then the real question is going to be, what behavior change happens relevant to that? If the recommendation level is that there has been an accident on the freeway, it’s going to be backed up and recommendation is to get off and take to transit system or secondary road – it will tell you that – the question is how many people would actually do that, versus ‘This is my method, this is what I do always, and I am comfortable with that [inaudible 22:28]

So there is this whole aspect around technology that – certainly, we are seeing the advent of sensors and certainly [inaudible 22:42] around, the ability to take the sensor and to, I would say, distributive control out there – to me it is going to be a combination of distributive control and centralized control. There is no question of looking at that from a smart grid perspective and see that as a grid side of the things. But then how do you get people to adopt the use of that and start participating in that? That for me is one of the barriers that we are facing this and quite frankly this is – I am actually interested in your thoughts and your expertise around that topic, because quite frankly I think this could be the next big hurdle. And I would encourage today, this morning because we had a number of discussions around technology, but now we are starting to get to the other questions around like ‘What is the government, ‘What is the policy, ‘What is the role of government and how we encourage citizens to get engaged?’

I like your points about the community involvement, and I think that is absolutely correct. How do we start to get that in a bigger way and what works? I think that is really kind of an interesting place that I am interested to hear. So if I go back last year – quite frankly last year was more about technology and technology itself for the sake of technology. I think this year we have advanced beyond that. Now let’s talk about applications of that technology and then get into the usage of that technology and how e get people to collaborate and then use that technology.

Stephen Johnston

Well Jim one question is, whose responsibility and the role is it to the [inaudible 24:11] communication infrastructure that all these embedded sensors, whether it is energy, or water. Whose responsibility is for deploying that communications network, how could everyone get access to that data, so that if it is a city that [inaudible 24:25] network, do they share it with other people or if it is a utility that is a network, do they share it with other people? Can you talk a little bit about that [inaudible 24:33] Jim, Nicola, and Markus, on the network side the sensors.

Jim Anderson

Well, not being a network specialist – well, I look to these guys for the network side of things, but I clearly think that it’s such a complex conversation we’re talking about right now. You got the government [inaudible 24:54] private enterprise [inaudible] how does that play? And then you have got the role of citizens and what’s the role that they play. And how to you start to mix all of those things? I don’t really have the perfect answer for you today. I could make some recommendations, but I don’t know if we really have defined that in a great degree. I am interested in the thoughts around public policy; what is a good policy statement. I mean if we talk to cities today, they have all got their own networks. Generally, they are private today. Generally they don’t let people get into those networks; they open up the data, but they generally don’t want anybody getting into their network. You get a lot of cyber security things going on. So the more you open it up, there are always dangers around that. I don’t know what the answer is. I think it is a great question; it is a great topic for discussion, for debate. I’ll have Nicola and Markus…

Nicola Villa

Yes, we are working on the same challenge for some years, and there are a couple of trends that I think I have seen work. And I am going back seeing that cities like Amsterdam and Musang in Korea, in particular. The role of the government there is in deploying this capability – move from being an investor, into becoming an orchestrator. So the government orchestrates market parties and [inaudible 26:12] engagements in the community to basically step up [inaudible 25:14]. And another interesting concept, which is what I called the sandbox concept. The government and the PDPs and the telecom companies [inaudible 26:26] the box, which is basically the network infrastructure, the sensors [inaudible 26:31] and they basically collect and then they start to manipulate that. In some cases they also basically provide intelligence [inaudible 26:39] and put it out, so the third network data, and [inaudible 26:44] That’s what [Bussan] does. However, the user spirits and applications have been by the community, and [inaudible 26:52] combination between data – intelligent data coming from orchestrated in a [inaudible 26:58] and financing. Some governments at local level are using their procurement power to stimulate and fund those applications that the community basically [inaudible]. But it is the community [inaudible 27:13]. Walking that line between what is centralized and I would say government is enterprise driven, and what is the community driven is [inaudible 27:24].

The other thing, which I find interesting the ideas that I came across in Finland, Helsinki – and also in Amsterdam – over special-purpose vehicles. The moment the government comes together with the public and private sector and [inaudible 27:36] you basically get into all the complex of [inaudible 27:45]. So we see the emergence of those in-between vehicles like in Amsterdam [inaudible] so basically the recipient of those investments. They [inaudible] the solutions; they engage the citzens themselves. And if the solution is working, the governments will [inaudible 28:07] perspective. So you have all these mechanisms and all these systems together.

Audience 1

So I just want to make an observation, that your work – how do you put up there [inaudible 28:15] you sort of suggest that the [western] Canada has made some forward progress because of the open data, work that is going on. I want to observe if that is something that is based on very loosely coupled technical standards.

Audience 2

One of things that also significantly describes the reality of the energy systems we are talking about today is that they are actually very close to proprietary, and anything but loosely coupled. It seems to me that one of the opportunities is actually to try and see whether or not we could find the way of actually writing a prototype of the procurement process for cities that will actually require them to either open or loosely couple standards to which in fact these otherwise economically self-interested, closed system doors with [inaudible 29:11] solution that any of the technical people inside the department of water [inaudible 29:15] But there is no [thought / value] at all beyond the [inaudible] activity. So far we don’t see the value of the upside and what happens when you do that, just loosely coupled with that, and what an amazing innovation can happen in just [inaudible 29:30]. But that’s because there is the maturing of that activity for over a decade now. I think we need as the global thought leadership to help us frame something that in the first instance will not be seen as self-interested, which is to say open or loosely coupled procurement process that cities could actually make use of that would keep it open enough to both solve the problem of the utility, the social enterprise and the more general population use as a requirement by going here. I think without that we’re going to be very incremental.

Nicola Villa

I agree that I would encourage those who are interested into what the cities of Eindhoven, Rotterdam and Amsterdam are doing now. They basically came together on the energy theme, and they are starting to basically do strategic procurement, as they call it, to drive local [inaudible 30:30]. So you see the only way we can drive that is by procuring and [inaudible 30:34] standards [inaudible 30:40] so there is going to be through the innovation there in [inaudible 30:42]

Audience 3

Thank you. Actually, I would suggest that that is also happening from another direction at least in the state’s procurement for various kinds of digital applications and so forth by cities where instead of going forward with an open standard, if you will, for the way it is shared; [the part of piece 31:05] will specify that you must be able to integrate with the following 15 other companies and their standards if you’re going to apply for this particular tender or this particular piece of technology or whatever. And so what it does is that it forces us in the private sector to, in advance of tendering that proposal, go back around the back to all the other vendors that are mentioned in the [PMC inaudible 31:33], and it starts to drive down propriety of the standards for change in information at least in the areas that I work in.

Stephen Johnston

By the way, if you wouldn’t mind, saying your name and who you are, so just that we would know from a reference standpoint.

[inaudible crosstalk 31:55]

Did you want to say anything about…?

Markus Breitbach

…your questions about the networks and your explanations about what you just asked, I think you’re pretty right. Once again everybody speaking about our [M2M model 32:10] and these things, but there are plenty of people out there, and I can bet even in this room. I don’t want you to raise your hands now, but even in this room, even who don’t know exactly what is already possible today. It is not really a technology discussion – wherever you want and [inaudible]. It is also not necessarily the only standards; [inaudible] first make use of what is already there because there are so many so called visions which might be the vision for you, maybe for me. But you already did it, right. So therefore it is not a vision; it’s there. So you only need is to respond from where [inaudible]. This is exactly what we have discussed. We were mentioning in [inaudible 32:52] last two or three weeks ago, we had a meeting with the leadership of ITS America, and it was exactly the discussion around – let’s first really push hard on this project, let’s paint the correct picture.

So what do you want to do in this case was about energy or water energy but last one is exactly the same discussion. Let’s show what do you want to achieve? What are the steps or problems or challenges you want to tackle, and put below that what is already in place to tackle that today. And lot of people would say, ‘Really?’, because there are so many technologies and solutions out there. But then it comes for example like [inaudible 33:30] today was mentioning something like partnerships. It is kind of very often [inaudible]. Why? Smart city is not a solution that can be put in place; it’s a subset of existing technologies. You cannot go to any municipality or city and say, ‘It’s changed everything!’ You have to [inaudible 33:49]. You need to tackle also existing devices, software, and bring it into many [inaudible 33:55]. Then we come to standards; you need to transfer it to a certain layer, where all of those existing and maybe new technologies talk to each other, and this mediation layer – let’s say it this way – type of neutral. This is what someone [neutral 34:12] operates and bring to cities so that really we step-by-step can start with the little investment in new technology while not forgetting about the existing infrastructure because this is where [inaudible 34:25] historical data you don’t want to lose. But if you only go for new, you also need to take care of the older part, which is very, very valuable.

And last but not the least, the whole thing about smart cities – it’s not as complex as it seems, because there are so many things already. For example, when it comes to energy, you talk about smart grid. There are other things out there; for example, these [combination] fridge, freezer and so on.

[inaudible crosstalk 34:55]

There are things out there that are designed to balance grid, the energy level. They are designed to help them; they are already there. Solutions also coming from electric vehicle point of view that the electric vehicle and the battery problem that they have still in storage, to use the feedback to the [grid 35:24] depending on the shortage somewhere else – those technologies are already there but nobody really is using them.

A lot of municipalities are a little bit scared to be the first one to really implement it, because they are private sector utilities, for example; they are really a little bit scared work with those technologies and they get scared because [inaudible 35:46] can do something wrong. You don’t want to be the one who is actually [inaudible] there, especially not something which is so [inaudible] consumers living in the city [inaudible]. But when it comes to solutions, a lot of things are there in water management. [Name 36:05] was mentioning [Lake Michigan] I think [inaudible] infrastructure. Let’s starting with taking care a little bit of the waste of the water; not necessarily taking a shower in three minutes instead of five; it’s only the transportation of water is wasting so much water. And there are smart technologies, putting sensors on pipers. You can immediately go and find where leakage is and fix it. And those types of things you can implement right now without big investments; it is there. You can start really step-by-step to really modernize, start collecting new data, adding it to the historical data. You have got new systems; and then you’re coming closer and closer to smart infrastructure; putting the mediation layer on top, and then you are at least on a good way to becoming a smarter city.

Audience 4

I have a comment and a question which is [name 37:01] just mentioned electric vehicles – so the people in San Francisco wanted to put it electric vehicles and then they realized that not everyone had a garage. So if you didn’t have the garage, how do you do it in a multifamily complex? And then they realized, when you do have a garage, the fire marshal needs to sign off only to the permit, he didn’t want it. So to say where technology does exist but the integration with the city where we are not spending enough time. And on that point, so in my current job, we oversee both the clean water act and safe drinking water act in United States.

We do a number of things; one, we give out about $3 billion a year to state municipalities to implement those and that is largely to build the infrastructure. We have no criteria that I know of for any sense to have any feedback or to have any network. So we are giving out to the government billions of dollars, and it would be great [inaudible 38:00] as a follow-up – how do we get to a place that we understand, moving forward, what is possible? A lot of people probably room knowing what sort of very basic level of [inaudible] now; what will be in 10 years? And second big opportunity on that horizon is we have more than a million regulated facilities in the United States. Our budget has been every year in terms of boots on the grounds. So there’s a big emphasis in Congress and the administration to focus on next generation technologies you had when you were [inaudible] needs.

What are the incentives have we got for the treatment plant? What are they for the chemical facility, like the one in West Texas at Blue Mount? So what is the range of how you would have the good ability to monitor stack emissions all the way through hazards on an automated basis? And how do we require states on the federal level to put those in? At the moment it seems – Nicola and I talked about – very ad hoc. How do we systemize it as a prerequisite of getting funding? Has anyone done that?

Nicola Villa

From the result of the conversation between [inaudible 38:20] Barcelona [inaudible] a former Church [inaudible 38:34] He basically said, ‘You guys come here and give me the presentations. If I were a doctor and treating my patient, you are trying to send a [scalpel], when what I need is an aspirin, because you are creating great technology but not particularly knowing what my issue is’. So we created created this program, called for the [inaudible 39:50] city council, which is basically a society [inaudible 39:50], which is basically about finding those factors or the standard, that they will allow [inaudilbe 40:00] house.

Audience 4

I think we have the six out of the 10 biggest cities in USA in the region from Phoenix to San Diego, LA. We did convene them and have that discussion with anyone that’s interested with it. It’s not having right now, and we’ll be happy to do that.

Tim Campbell

Let me just pitch in on this point. My name is Tim Campbell [40:26]. I spent the last 5 years looking at how cities learned from each other and wrote a book on smart cities, and one of the things that struck me is that, although we heard this morning [40:39] between cities they don’t really pick up from each other. In fact there’s an awful lot going around the world. You know something like 10,000 cities over half a million in population around the planet, 345 metro rails in the US, 3000 counties. These are really large numbers and everybody is inventing something. Everybody has nibbled away at some of this. And the trick it seems to me is not whether you need a scalpel, or whether you need a hammer, or an aspirin, but whether you can talk to other patients, to extend your metaphor a little bit – to structure some of these conversations for stuff that has already been done and to intermediate where cities can solve the problems, or have the problems, to get them together. I mean cities are doing it on their own anyway but their learning process is inefficient. So, I think there is a movement also among the cities because they know with globalization and regionalization, and the reduction of trade barrier, that they have to struggle a lot just to hold position. And mayors know that, so they are out there looking to whatever they can find. So I think there is some energy that captures there.

Audience – Deborah

I am Deborah with Solutions… my pleasure, thank you. I was thinking about what you said, and also Jim, what you earlier said about the people component of the equation, from two different perspectives. So one is when you talk about the question whether cities are related, what you’re saying is ‘are they tapping the right things first’. I mean it is very easy for us in the private sector and the technology world to be very visionary about extremely sexy pictures about the future, except that there is no [inaudible 42:17] city out there where we can go and say this is our visionary future. We have to take it to a [inaudible 42:24] already there, and everything that needs to be there and all of the challenges and problems that are already there. Then of course the mayors in particular because they have political powers in the cities, have personal stake in promoting the sexy vision as opposed to the fixing of the least sexy aspect of the infrastructure like capturing the water that’s leaking out of the pipes, because who can see that, who knows about that. And how can you run, you will [inaudible 42:47] and I don’t mean that simply. I think it is a very real kind of motivation issue, and when you think of this first…

You mentioned about the signs on the highway. I thought of a much more rudimentary example of that. I was in the Philadelphia airport, and they had this juggernaut of security where everybody has to go to security at the exact same place for all the gates in the airport anyway. So if the line is 27 miles long, it goes into the parking garage of the next county or something. So at some point someone who runs around from TSA and says ‘No, no, everybody walk down here and go underneath and over, and behind there is another security gate, 17 miles away on the other side of the airport or something’, which is not so different then saying, ‘Get off the highway here, there is an accident, go take the transit’. For the first time I heard that announcement I ran to get to the next gate…

[inaudible crosstalk 43:45]

…But everybody else ran too…That was exactly the problem, what exactly you are saying. So you are thinking, ‘So I am going to a doctor, I am going to go get there in front of the line, worth the 5 mile walk to get there first – except that by the time you get there, everybody else is there too, and the system hasn’t responded quickly enough to now stop the flow of everybody from the first line to the second line. So how do you build an algorithm into your real time [inaudible 44:11] application that accounts not just for giving the information right now, but giving the information in such a way that every fifth person gets off and goes on the transit instead of every person such that you can end up with a juggernaut at the train and nobody can park.

Jim Anderson

Which is why, one of the pieces of information is whether parking space is available, so if there is no parking available, it will be a bad idea to get out.

Audience – Deborah

It just seems everybody has a sort of dashboard of 100%…

[inaudible crosstalk 44:39]

…but I think it goes to sort of both questions as to how do you balance that and [inaudible] data.

Jim Anderson

I do like this idea. Cities learning from each other is really important. To me, I have been to a lot of cities over the last 2 years, and I think they do that. But at least they try and talk to each other. I am not sure that learning is necessarily taking place, but at least there is a discussion going on; clearly not enough, because they are really not moving forward with anything that is meaningful to the city. They are still talking amongst themselves. I think there is a lot of frustration. I think your viewpoint is correct. There is this political side of the things that is real and can’t be ignored, and what are you going to do to address the political side of things? Because it is not [ too much 45:37] sexy if they go on and work on the campaign on [inaudible 45:40] my infrastructure, unless there are some tangible benefits…

[Inaudible crosstalk 45:45]

But I am not sure if [inaudible] on potholes.

Audience – Deborah

They are going to sewages and [inaudible 45:52] pipes.

Nicola Villa

There is another viewpoint to that. From a data perspective, to run such a service, there [inaudible 46:01 – 46:13]. My opinions are two: who does it? And who [inaudible 46:18]? So who does it, we have seen quite a bit of grassroots initiatives coming up from the community that came up and develop applications and [that’s exactly that]. In 2006 in San Francisco and in Seoul, we had a person [inaudible 46:31]. The issue there as we start to see around is that [inaudible]. So the government who put up data [inaudible] private sector, then they will come in and put [inaudible] group of local entrepreneurs will come up with the active support. The issue that we start to see now there is when those companies who created applications, either stop supporting application or go bankrupt or go somewhere else, the government is inheriting [inaudible 47:04]. Meanwhile the citizens have expectations that the government is going to help them with the service, even if the government has [inaudible]. So the question there is not too much about the technology but the business model, that you try and develop as a service. The service is, technology wise, is straightforward; it is there. You can insert it in a week.

Markus Breitbach

You are absolutely right with regards to the business model, this is increasingly a critical factor especially when governmental authorities and the industry are talking to each other very often. There is no real trust-based relationship. It still a kind of ‘let’s see’ kind of thing. Also a lot of people say, ‘Yeah, we are very open’. No, they are not – not very much. And especially as closer as we are to elections, it is getting a bit worse and worse. The only thing that will really convince them that there is a real value, whoever is the [inaudible 47:58] doesn’t matter. You need to provide value to whoever is using it; if it is a consumer, a business or a municipality. What that means is – I know people providing the complete exchange of street lighting infrastructure based on an [opax model inaudible 48:18] only pay out of the savings. And there is no investment on the public side.

And there are other solutions where we go into a creative business modeling – it’s not only a business, but creative business modeling – to really overcome the hurdle of investing an awful lot of money. Also coming back to your view point. [Inaudible 48:40] used every year etc., and especially if you can modernize the infrastructure while even saving money. This is always a good even before elections. So obviously then you need to trust the private part that this is happening and [inaudible]

Stephen Johnston

You have a comment or a question?

Audience 5

We are seeing a real move towards regionalization. I don’t know if that is going to help or make things more complicated. But it is a desire to not just put my chips on one table, and trying to make a difference [inaudible 49:18]; I am actually going to [49:20] collectively, by trying to do these things [inaudible]. It’s quite a phenomenon in Canada.

Stephen Johnston

Who is convening those regional conversations?

Audience 5

It depends. There is no one common place that it comes out. So we have got one scenario where it is coming out of the chief administrator officer of the city within a large region, and another one, where it is coming out of the folks that own the network and [inaudible 49:40] we need a common platform and why would I build that for my city when in fact it is a much more regional piece of infrastructure that we can jointly exploit. We have got another situation where the economic development, two people from economic development [inaudible 50:05].

So there is no… like anything that goes in these cities, there is no logical, singular place where it is happening, but it really is. I think they are doing that a little bit out of desperation, little bit out of reality. I think it reduces risk; I think it is a little different when you get one to four communities that say [inaudible 50:28] do something, than having one community that sits back and says, ‘Well, I am going to do it’; politicians get [risk 50:33], and ‘What do I do, I don’t have the critical mass’. I am sure from you book – [inaudible 50:43].

[crosstalk]

Stephen Johnston

I think this is a very important point that this market is very fragmented. It is really where we are today. It is fragmented. It’s being handled in a different way city by city, county by county, state by state, country by country, and it’s different. And I think what the desire of everyone is get a more broader process that is not so fragmented by investment standards and creating those bodies. But at the end of the day, quite honestly, it is all about leadership. It’s leadership at that level, somebody taking the initiative personally, and say, ‘I am going to make a difference; I am going to reach out and explore why we should invest in this’. I live in Jackson, Mississippi – you can’t tell that from [inaudible 52:42] ….

But even in Mississippi now, when it comes to energy use, there are a lot of investments that are ongoing that are making a difference in people’s life. All my neighbors can look on their phone and tell you what their [inaudible 52:02] is in [inaudible], and that’s probably because [inaudible], and I am crazy about that kind of stuff. But on the water side, we are investing in a $400 million infrastructure project to improve the water quality [inaudible 52:15] Jackson. And I think we are going to see more and more of that because the infrastructure is aging, but it takes people willing to step up and raise issues and have conversations on that. Honestly the sensor [inaudible 52:30] the heat is not working very well….

[Crosstalk 52:33].

In the last few minutes, I would be interested to see if there is any conversation up around applications that you see, that you think is really cool, or unique or anything out there in your communities that you like. Would you like share it with us? [inaudible 52:53]

Audience 6

My name is [inaudible 52:56] and I work in [inaudible] And this was the environmental protection group, who are trying to monitor the system. It is quite interesting, I think, you just have to look within the government services of the United States. The general service administration is now running 50 building, [inaudible 53:18], which they want to roll out. Some of you might know about that. They want to roll out to 1500 buildings, so the very horse power technology permission they are using [inaudible 53:32].

[Crosstalk]

Audience 7

[inaudible]….it is pretty interesting, in terms of surfacing, household level usage data, as far as electric and gas usage, to the end consumer, because this is something they did, now they are delivering us the smart building… usage in power compared around you, and that creates the incentive for people to say ‘Okay, well I’m terrible; I am in the 80 percentile energy in that area’. So I think there is a lot to be done with that [inaudible 54:20] engage the end consumer, and engage the people and the community, not even at the level that people know it’s necessary, but even at the level of [inaudible 54:35]

Stephen Johnston

I think it’s a [valid] point because [inaudible 54:38] because what is different about that is the way that they are presenting it and so they are creating a conversation between people who will normally not talk about energy usage. But because of the way they are presenting it, now you go and say ‘Hey, what’s your usage? Here’s mine’. Better or worse, it’s competitiveness [inaudible 54:57] I am glad you brought that up, it is about how you deliver the information. As Markus said, in our case, the information is already there. We’re just not delivering it the way it makes people engage in it.

Nicola Villa

I think it is about the creation of a [inaudible 55:11] consumer to somebody else. They are basically moving out from collecting intelligence to collecting actions. That’s the whole point. And the creation has inspired me, it is not anymore about big data, but it has been [inaudible 55:36]

Audience 7

[inaudible 55:48]

Stephen Johnston

Well, IP is IP. [Inaudible 55: 47] IPv6 I got IPv4; IPv other devices. I mean, what’s the point?

[Inaudible crosstalk 56:07]

Audience 7

[inaudible]…they are open networks…

Stephen Johnston

That’s not necessarily true. There are IPv6 networks that are integrated [inaudible 56:17] open standard above IPv6 where you are actually getting too [inaudible] share the source. I am sorry, it’s [inaudible] IPv6 is a protocol; but I mean it doesn’t matter. I got devices that have open protocols that aren’t IPv6 that are very important and put in data sensors. You can’t afford IPv6 on every [inaudible 56:44].

Audience 7

But you have to…

Stephen Johnston

No, we don’t have to.

Audience 7

Yes, you do…

Markus Breitbach

May be I will comment on that one. I know many networks around the world [inaudible] operators. All of those protocols, obviously we take care of, but last not least, that’s not a solution. And this is not a value proposition toward anybody, not to a [inaudible], not to municipality, not to a consumer. Obviously, technology wise, infrastructure wise, we have to take care of this and we have started to be working on this. And last but not least, that’s not driving the development, okay? Obviously there is a next level of technology somewhere; if it comes from technology angle, it’s important, and you need to understand the underlying infrastructure of a new service so that it’s up to date, and you get the benefits out of the up to date infrastructure. Last one but not least, this won’t drive anything, because you have to [inaudible 57:46] nice application, bringing a kind of value to [inaudible] value proposition [inaudible]. All of this might be different. But this is what we need to create by also using latest technologies. Well, we need to take care of it.

Audience 7

Well, it does open up…[inaudible]

Stephen Johnston

Well, I would agree with that. Everything that would work on IPv6 today that would be fantastic. [inaudible]

Audience 8

[Inaudible]

Audience 9

[Inaudible 1:00:19] We think a lot of about future of cities, and infrastructure [inaudible]. And we are asking about apps that we find particularly interesting. It’s not the app that we find interesting, it’s the whole data. So it’s data, …[inaudible] so people develop apps by themselves and discover [inaudible] infrastructure, which I think is very exciting. [inaudible]

Second point is observation about this panel – Cisco, Schneider, Telekom – all arguing for all standards, which is fantastic. [inaudible] and ask the Cisco sale guy to give me telephone that’s …. [inaudible]

Stephen Johnston

Thank you all.

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