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Thought Leaders Essays from urban innovators Edited by Simon Willis CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 1

Cities

Contents

Preface 2 Simon Willis, Director of the European Public Sector team, Internet Business Solutions Group, Cisco Systems

Dubai 12 Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

Barcelona 20 Joan Clos, Mayor of Barcelona

New York 28 Michael R Bloomberg, Mayor of the City of New York

Stockholm 36 Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administration and Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm

Milan 44 Silvio Scaglia, Chairman of e.Biscom, Milan

Wroclaw 50 Slawomir Najnigier, Deputy Mayor of Wroclaw

Manchester 54 Dave Carter, Director of the Digital Development Agency, Manchester

Hamburg 68 Senator Gunnar Uldall, Minister for the Economy and Employment, Hamburg

Hillingdon A case study: How to create the business case 74 Pacey Cheales, Corporate Programme Manager, Hillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council

Biographies 110

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Cities

Contents

Preface 2 Simon Willis, Director of the European Public Sector team, Internet Business Solutions Group, Cisco Systems

Dubai 12 Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

Barcelona 20 Joan Clos, Mayor of Barcelona

New York 28 Michael R Bloomberg, Mayor of the City of New York

Milan 44 Silvio Scaglia, Chairman of e.Biscom, Milan

Wroclaw 50 Slawomir Najnigier, Deputy Mayor of Wroclaw

Manchester 54 Dave Carter, Director of the Digital Development Agency, Manchester

Hamburg 68 Senator Gunnar Uldall, Minister for the Economy and Employment, Hamburg

Biographies 110

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Preface

Simon Willis, Director, Public Sector, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa

his is a book about cities, largely need flows more effectively to where essay from Dubai by a true innovator and verbal information is that networked written by cities. It is also a book people are, then there is less imperative to entrepreneur, Saeed al Muntafiq, Director information takes the best route – about the future of the city and bring them all into the same place. General of Dubai Development and traditional information goes from point to T therefore a book about the Secondly, more collaborative ways of Investment Authority, shows how point, while networked information takes future of the place where most of us live. working and decision-making emerge and digitisation and networking develops the the best route it can find. One of the The city leaders writing here are a diverse this changes the relationship of the city way people work. Dubai constantly implications of this is that it becomes group and their experiences with with itself and with its citizens. reinvents itself around the concept of the harder to control. This makes it both more connecting themselves and their citizens trading hub. Demands for education and resilient – and harder to gatekeep. With IP are very different – but a number of In the following sections I look at three medicine across a huge area are networking, fewer premiums are placed common themes emerge, which taken themes that emerge from the essays. The converging on Dubai’s new knowledge on, and less power is given to, the together and carried forward, suggest that first is the changing nature of work and city – built on a fibre infrastructure. gatekeepers of information. This is we are on the brink of some very particularly the increasing importance of potentially revolutionary. profound changes. collaboration in the successful enterprise. In the essay from Barcelona by Joan Clos, This is a much wider trend that cities are visionary mayor of Barcelona, you see an In connected cities, power and influence is People construct the endlessly complex inevitably effected by. The second is the example of an innovative, creative and a function of how well you facilitate architectures of their cities over time – growing realisation that for the city to competitive city that has seized the networks of information and action, not driven by their desire to be with each change in the way enterprises have opportunity to change itself again and how much information you control. other, learn from each other, and grow changed, they require the kind of again over the past few decades. Mayor Collaboration and facilitation supplant economically, culturally and spiritually. To information exchange environment that Clos has put education at the heart of his hierarchy and formal structure as the serve these desires, cities have created enterprises now take for granted. In the city’s endless recreation of itself. dominant tests of effective organisation. physical spaces and mechanisms; the process they may have discovered the next It is not surprising to find cultures that street, the marketplace or the coffee pervasive social infrastructure to follow The essay from New York by Mayor already tend towards the collaborative are shops. In our own age these have been water, roads, power and telecoms. The Bloomberg shows how digitisation and at the forefront of this revolution. Our supplemented by digital spaces. As the third theme is political – a new model for networking change the nature of work by fourth essay is a collective work from means for the instant exchange of digital the polis becomes possible when new developing collaboration. The traditional Anita Ferm, Education Director of the City information are built, a new dynamic ways of working are combined with a new model of government put public servants of Stockholm, Per-Olof Gustafsson, Deputy emerges at the heart of what makes a city pervasive social infrastructure. These cities in a position of gatekeepers, controlling Managing Director of Stockholm’s – information can flow towards people are collaboratively reconstructing flows of information. The focus was to get Economic Development Office and Monica rather than people towards information. themselves around the needs of their access to the information – to control it, Bernestrom, Head of the Department citizens. What emerges is the to trade it, to protect it. In New York (as TIME (Telecom, IT, Media and As this dynamic begins to affect work so it connected republic. elsewhere) networked information has Entertainment|). Stockholm is a city has subtle but profound effects on the changed the nature of gatekeeping. whose long-standing enthusiasm for nature of the city. Firstly, the boundaries The first common theme we see emerging collaboration has given it an edge in the of the working day and of the workplace in these essays is that changes in ways of One of the differences between networked struggle to embrace new thinking. begin to blur. Cities are partly defined by working are starting to effect the city’s information and telephonic, mailed or days and offices. If the information people fundamental strategic planning. The first 2 3 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 2

Preface

Simon Willis, Director, Public Sector, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa

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Many cities are on the brink of taking a a slightly different set of effects on the require some kind of public investment the really fundamental passive longterm fundamentally new step in their thinking. nature of our cities. It is in the nature of and public intervention to make it work. In infrastructure. The essays show different That is to categorise, in their minds, many of these infrastructures that the the case of real broadband the amount of models in different cities of what stands communications infrastructure as on the market cannot provide them at the outset. investment involved is large. between the infrastructure and the end same level as roads, railways, dams and We all are aware that water and transport users. These allow people access to airports. The cities highlighted in this book are first developed as a social The second set of reasons as to why the different service providers – whether it is (and many others) know that they need to infrastructure, in the first instance created, market cannot provide broadband telephony, video telephony, IP telephony, modernise their cities so that people can paid for and owned by the public sector. structure is based on what services people security applications around housing interact within them more effectively. If a What emerges from these city essays is require. Someone investing in estates and into schools, and then city is sufficiently connected, then the possibility that the next pervasive infrastructure will have to get payback education, healthcare provision, video on investors will arrive and find the right kind social infrastructure that society wants over such a long period of time that they demand and entertainment and more. We of employees. Competitive cities are to advance to the next stage, is will require exclusivity over the services still don’t know what services will develop increasingly regarding real broadband broadband fibre. that they are going to provide. This limits in this environment. It is clear that networks as belonging in the same the field of access and services. The city somebody needs to sit between the political and investment categories as Although there are exceptions, it appears decision-maker or public-sector decision- fundamental investment and the set of transport networks. Fibre infrastructure for that the public sector may have a key role maker (who wants people to have access services that are going to be provided, a couple of million people is equivalent in to play in this development. There are two to a wide range of entertainment services, and the city is emerging in many places as cost to a couple of miles of highway. It fundamental reasons why a pervasive government services, communications the vehicle to do that, on its own or has become a viable option for a city social infrastructure cannot generally be services and so on) will find that their through a public/private partnership or investing in its future. The question is, effectively provided by the market. Firstly, needs are not met. City decision-makers through some other joint mechanism. whether and when it will become an that the investment required in this case may not want to have access limited and imperative. (in order to achieve critical mass in pre-defined by a single infrastructure Among our examples, the Milan story told connectivity) is so huge that the market investor or service provider. by the far-sighted Silvio Scaglia, Chairman All those reading this book will be acutely cannot move, because the services cannot of e.Biscom, is of a pure private play. The aware of the rapid growth of the amount be provided to the consumer by the The essays in this book show how availability of venture capital in the late and the speed of connectivity in the past private sector until the connectivity is different environments create different 90s, the lack of pre-existing cable to ten years. This transformation is available and the connectivity cannot be models, but increasingly the city is prevent the new entrant from getting happening much faster than previous invested in until the demand for future stepping in as a fundamental stakeholder rapid take-up of services and the density revolutions. If you go to the Linx server services is understood. and investor. The city will invest in the of housing were a set of unique (www.linx.net) and look at internet activity passive infrastructure for connectivity and circumstances in Italy that allowed over Europe’s largest internet exchange Investing in real broadband infrastructure can borrow more cheaply than the private e-Biscom to take off in a really impressive point over recent years, you will see that is expensive. The establishment of sector. The city can run the business case way. Italian cities are only just beginning the dot-com crash apparently didn’t telecoms presents the most obviously and will be able to sustain its borrowing to look at the wider set of city-service happen. Just about the only event that has comparable example. To build the from quite a small stream of returns by applications and aggregated demands a significant impact on the graph is fundamental social infrastructure for giving access to the infrastructure. The city that they want to use this infrastructure Christmas. The apparent rollercoaster that telecoms required public-sector knows that this passive infrastructure (and for. The Fastweb experience has not been we have been on since 2000 has been just intervention both at the beginning of that I’m thinking here about fibre) has about driven by the desire to put e-learning into a trivial variation around a remorseless revolution and well into it. Then came a 15-20 years of life in terms of its usability, schools or do initial primary care health upward rise in connectivity. point of maturity where it became which takes it beyond the type of return consultations in people’s living rooms. appropriate to allow the market much on investment calculations that most The driver for growth in Milan has come Each of the pervasive social infrastructures more freedom. In fact, you may require shareholder-owned companies and from the video on demand and video that our cities are built around, such as the market to drive innovation onwards organisations are able to contemplate. telephony and entertainment and private those for water and transport, have a and give the consumer more choice, but communication applications that slightly different set of characteristics and there is a build-out stage where you So, the public sector steps in and funds people demanded.

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That is one end of the spectrum and it has complex, and affected by the local political now presents us with the opportunity to that the schools are not good enough, produced an interesting and successful environment as well as local legal and make the idea of rule by the people more healthcare is not good enough and the business. The next step will be for those economic factors. One model is like a real than it has ever been, creating an police can’t protect them from danger on city governments (increasingly not just utility, which is majority-owned by the city environment in which people reconnect the streets of the city. These are the big Milan but many other Italian cities as but has a lot of private-sector money and with each other politically and at the same city issues, and our politicians are caught well) to look to the infrastructure investment. Wroclaw’s story as told by the time rediscover the connection they have in a situation where their people are to see how they can improve their own deputy mayor, Slawomir Najnigier, is a lost with their rulers. And the natural disengaged and not willing to pay more services as well as proving an attractive good example of that kind of approach, as geographical confines of the connected money but are demanding higher investment environment for the growth they have actually used the heating utility republic are, as in ancient Greece, those of levels of service. of small businesses. (which has the holes in the ground) as a the city-state rather than the nation-states public/private vehicle to develop the which dominated the past century. At the same time, technology has created Stokab is at the other end of the spectrum passive infrastructure. Hamburg too, as the possibility of more responsive services in that it is a pure public play. There was a shown by Senator Gunnar Uldall, offers a Every city is an autonomous competitor in that are more flexible to the signals that very clear vision in Stockholm that the mixed model, where the private sector a globalising economy. It is not enough consumers send. The new connectivity has building of a knowledge economy and the leads and the public sector encourages that a national government is doing the made the private sector much more attraction of inward investment and the and invests. In Hamburg, the public sector right things to attract investment. The responsive to consumer demand, and that provision of better public services would will intervene as and when necessary, and individual city needs to attract investors. has made consumers much more all be facilitated by a fibre-based will ensure that through the services The people in that city need to be demanding, which has in turn made them communications infrastructure. When you provided Hamburg remains a growing and attractive to employers. Workers in a more disconnected from their read the essay by key Stockholm decision- successful trading hub. successful city have to deliver value in an unresponsive governments. That is not makers (and visionaries) Anita Ferm, environment where what you knew ten because the public service is stupid and Per-Olof Gustafsson and Monica How significant is this trend? We are years ago is irrelevant to what companies the private sector is clever. The reason that Bernestrom, you see that at the very heart aware of at least 40 European cities that now need from their employees. As a the private sector grabbed hold of change of it is not only a business plan but a are currently either planning or building successful city, once you start to is that for a private sector company, profound belief that this would be the real (Ethernet) broadband infrastructures. understand modern educational needs you change is a life or death issue. For right way to go. They couldn’t calculate all The number increases weekly. It seems start to get this sense of lifelong example, when British Airways has the benefits to Stockholm at the time that likely that something very significant is education actually built into the heart of competition from easyJet and Ryanair it the investment was commenced, but they taking place here. the economic strategy of city, the survival either responds or it goes out of business can see the benefits now. For example, as strategy of the city. in the face of competitors with lower people in Stockholm begin to In this very complex and confusing back-office costs, simplified fare structures telecommute, strain on the transport environment, it may be useful to try to Meanwhile it is widely accepted that there and incredibly low transaction costs infrastructure is being reduced. This is a look at what is happening in more is an emerging crisis in democracy because based on new forms of technology- fascinating development and is more or conceptual terms. This may allow us to people do not feel engaged with their enabled connectivity. less at the forefront of what is happening develop a framework within which we can political decision-makers. They don’t in the modern city. Stockholm already has see what is common to these success understand them, they don’t know what For government, with its quasi-monopoly, a different approach to work and the stories. The republic in political history was motivates them and decisions appear to it has been harder to respond to this new workplace emerging. Now they are an idea that broke with the concepts of come from on high. There is a kind of trend, although governments are looking at wireless and turning Stockholm monarchy, oligarchy and timocracy and disengagement. This is a disaster for beginning to see that they face an into a wireless hotspot. The whole established the idea of rule by the ‘polis’. politicians as it takes away their legitimacy emerging crisis of legitimacy and service. Stockholm model represents a very It was in the small trading-hub cities of just as it begins to undercut their ability to City governments have responsibility for Swedish belief in public provision of Greece in the 6th century BC that the raise revenues. Unwillingness to pay tax looking after the poor and vulnerable and, fundamental infrastructure. democratic experiment truly began. leads directly to restrictions on their ability because they are using public money, they to provide services. This feeds back into must take fewer risks. So they find Then we have a mixed model, often very The prospect of a ‘connected republic’ their unpopularity with people, who feel themselves unable to move as quickly as

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the private sector, and up until now have been 25 or so different departments A key element of any strategy for the It’s that kind of emerging role as they could not subject social services or dealing with everything – if you want your connected city is customer-centricity, or orchestrator that you see in the essay from healthcare provision or the criminal justice garbage picked up it is this department, citizen-centricity. Hillingdon is a borough David Carter, Director of Manchester’s system to the risks associated with and if you want your water turned off it is of London and it discovered that the Digital Development Agency. Connectivity innovation and new technology. another one, and if the people next door investment required for customer- in Manchester is not just about big are noisy it is another. But as the New York centricity would repay itself in an business and knowledge workers. It is also That may now be changing. Even if the essay makes clear, you shouldn’t need incredibly short amount of time. So one of about excluded communities becoming city governments are boxed in, they are someone with a doctorate in municipal the fundamental drivers for Hillingdon’s connected through the city as it responsive political animals; they want to politics standing next to you as you try to connectivity was to reorganise its services orchestrates local community groups. deliver good things to their communities. sort your way out of a problem. Now, the around what citizens actually wanted and These local voluntary groups and public- They need to find a solution. These essays city’s networked information system to be more responsive to requests coming sector groups are trying to meet the needs document the emergence of that solution allows New Yorkers to pick up a phone, in. It has discovered a double win. Firstly, of local communities, whether by giving in the development of what we call the dial 311 and be put through to the right citizens feel better served, and re- them access to training, or giving them connected republic. Ideas that have been person to solve their problem. It is the engaged; secondly, it becomes cheaper for information about where they can get applied to business over the past ten years city which thus has to rearrange itself the city to do its work. It is a similar story childcare so they can get back to work, or are being applied to the different public- around the needs of its citizens, and not in Barcelona, where the CAT 365 project by helping them connect with other sector environment in ways that overcome vice-versa. has set up a clearing house for citizen people in similar situations so that they the obstacles which are holding this information. CAT 365 involves the private can feel more part of a community and process back. (I’m indebted to my Several years ago, Barcelona rearranged its sector as well – a public/private develop common, mutually supportive colleagues, Martin Stewart-Weeks and network around a portal that reflected the partnership runs the clearing-house, which strategies. Manchester is an example of Mark Badger for much of this analysis – way people live their lives and the also offers services out to banks, and real people using connectivity so they can see their forthcoming book on the problems they have. This sounds very utilities and other private-sector players start to take control of their own Connected Republic.) obvious, but it is very difficult for public which need private sector information. development and their own fate. The city servants to make that fundamental shift What will perhaps emerge is a new depends on its infrastructure to become Despite their differences, all cities have from ‘this is the way we are arranged’ to funding model, as these people pay for an orchestrator – and in the Manchester some fundamental things in common. ‘this is how your needs as a citizen are the ability to become more responsive to case, wireless has played in increasing part arranged’. Clearly public servants are not citizens. If the government is effectively of that infrastructure, even in the poorer First of all, they must grapple with the going to reorganise their departments subsidising the service, so much the better. eastern district of the city. issue of how to re-engage with people around citizens’ needs every week. who are becoming disengaged. People’s needs are different: they are Citizen-centricity can help make it possible Mancunians are typically innovative, Governments have to become transparent: constantly changing; they overlap and for organisations to become orchestrators creative and entrepreneurial people. The citizens must be able to see what contradict each other. However, once rather than doing everything themselves. city is trying to serve all of them and at government is doing. Communications citizen and official are networked, they They reach out to the place where the the same time include that group of technologies unlock the possibility of can collaborate. The official finds himself thing is best done. The city is no longer people who were left behind when the reorganising and presenting information or herself working in a great virtual the great monolithic provider of services last industrial revolution left Manchester. in a way that is appealing to citizens. contact centre where inquiries can be to all people and disappointer of people at So there is a very rich emerging portfolio routed to the appropriate destination. It’s all times. In contrast, the city is the of what the city can orchestrate. Dubai what the Government of Canada called Mayor Bloomberg’s New York essay facilitator for a set of groups, some of the has also developed an orchestrator ‘No Wrong Door’. And once information is describes what appears to be a small, but independent, some of them semi- function, but one much more focused on networked, citizens see it is transparent is in fact a crucial step forward. The independent, who are able when the resources of its people and their and become ready to engage with principle behind the 311 service is that networked together to provide a much ingenuity. Through the internet, it is authority, which they now see as offering citizens shouldn’t have to work out for more responsive service. orchestrating local talent, regional players them a service. Indeed, it becomes more themselves how the city is organised. and the private sector. Large companies likely that citizens will use the opportunity Cities have been opaque because there are being attracted to Dubai to provide a to influence, shape and guide authority.

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set of services for the region so the city real value in services that citizens require. accommodation – almost a 50% reduction based services, they can redefine what can re-invent itself as a knowledge hub for So successful has Hamburg become that – was more significant than anticipated. they offer around the actual needs of the region – and Dubai has a typically the countryside around it has towns The relevance and impact of these initial their citizens. radical conception of what its region is. coming to the city and asking them to act findings were enhanced by the subsequent as a bureau for them as well. It is the quantitative ROI analysis. This work They are driven by democratic demands None of this is easy. The industry is awash same in Hillingdon, which has started to established a financial cost and saving of for re-engagement and for better and with the dynamic of early hopes and work with larger groupings of local fully deploying modernised working in more responsive and accessible city expectations that shoot up too high and authorities in London. housing services. More people can work services. They are also driven by lead to disappointment when they are not from home and stripping out 35% of competitive forces. fulfilled. Yet these essays engender the The Hillingdon in-depth case study offers a office costs on a recurring basis from year feeling that people have recently been too road-map for the early part of the journey. four onwards means local councillors have As it looks outside its nation-state glum; new connectivity is actually Resources are limited, however strong the choices to make regarding reallocating boundaries to define what it is going to happening. It turns out that it is harder to case is, and the options for what you resources that were previously locked up be in the future and how it is going to be do than some people thought. It is not might do are many. Any city manager will in relatively fixed assets. successful in this environment, the just a matter of whacking up a website be standing with a small pot of money successful city learns not just how to work and saying, ‘come and visit our city’. Nor and a huge number of claims on it – and The Hillingdon business case generated, or differently within its departments and is it just a matter of putting a bunch of the question is, ‘What do I do next week? rather confirmed, a piece of learning that agencies but how to collaborate with its networks out to the classrooms and How do I get started on this journey and has been stated before but is worth own citizens on the project and make hoping that classrooms will be what should I do first?’ The reason the reiterating. The modernisation business them part of the success of their own city transformed by mere access to technology. case study shows step-by-step case is not ‘about’ putting forms on the – thus giving the city back to them. It actually requires changes in processes prioritisation and budget allocation is that web, implementing CRM or having and fundamental changes in the way even in a tough investment environment it colleagues work from home. What the people work. You can see in the Hillingdon will allow a city to make changes that will modernisation business case is “about” is case study how people had to stop doing not only pay back and allow it to expand achieving profound business certain jobs because functions ambitions, but will change the way that transformation through carefully managed disappeared. Hamburg too offers a great people work. organisational change. There is nothing example of quite ruthless standardisation, particularly radical in this statement other driven by a finance department in Hillingdon takes quite small processes and than that the words are now grounded on Hamburg which would not give access to changes people’s relationship to their a detailed business case whose scope and IT budgets to anybody who failed to work and the way they collaborate. With scale constitute a complete transformation adhere to the standards it had established. all the money and political will in the for Hillingdon’s housing service. What is This is pretty dry stuff, but it is actually world you are not going to get anywhere more, the business case process is now a critical because it turns out that this is unless the actual city workers buy into useful diagnostic tool. where money has been wasted, as collaboration, start to behave differently everybody re-invents the wheel in the and become more responsive. What we see in these essays is perhaps the housing department, the refuse collection emergence of a political and economic department, the benefits department The development of a business case to phenomenon – the city as the new and so on. support the modernisation of Hillingdon connected republic of the 21st century. council’s housing service is a tangible Standing on the bedrock of real Addressing that back-office process, re- outcome. Although not completely broadband as a new social infrastructure, engineering, standardisation, the creation unexpected, the scale of the potential for these innovators and visionaries are of shared service bureaux, will be the task deploying new working methods – redefining their role in the globalising of the next wave. The city can increase the affecting nearly 70% of the workforce – information economy. As orchestrators of productivity of its workforce, unlocking and the consequential impact on office networked information and information-

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Dubai

Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

ubai has an economic blueprint Why did we start with technology? Dubai at the centre Change of plans for the future, first conceived in 1998 by the Crown Prince with History – and there was no more pressing Since Media City the model has changed, Firstly, it’s forced us to focus on sound D the simple objective of historical example at the time than and with Dubai Health Care City (DHCC – business planning, working through increasing per capita GDP. Unlike some of Netscape: a small company that IPOd at see panel), we raised finance exclusively everything from (in the case of Dubai our neighbours, we have little in the way about $18 dollars and closed on the same from the regional private sector. This came Media City) how technology and media of naturally occurring mineral resources, day at $75. Examples like this were still about from a change in our appreciation companies can work together, to so we needed a service- or technology- very much in everyone’s mind in 1999, of our position geographically and how real-estate management can increase based approach. when His Highness launched Dubai economically – we had to revise what we return on investment. Internet City (DIC). thought of as being our 'region'. The strategy we adopted was based on This planning process goes through several the model usually referred to as ‘cluster We soon realised that technology alone Investment in any given region flows to stages. First, the business opportunity 1 development’ and is designed to create was not enough. We also needed content, the ‘hub’: for example, the USA has New analysis, from conception through idea specific engines to drive economic growth. convergence and – of course – talent. So, York, Europe has London, Asia has Hong mapping, process specification and so on. The objective was the creation of a after the launch of DIC, Dubai Media City Kong and Singapore. But if you look at the We bring in experts to look at each sector, ‘technology cluster’. (DMC) arrived in 2001. In late 2003 we wider geographical context of Dubai, you weighing up the value propositions. moved ahead with Dubai Knowledge soon see that we’re in a ‘region’ that used Six years later, Dubai has become the hub Village, an enclave within DIC designed to not to have a hub at all – even, and Once we’ve mapped the sector within the of – and therefore the gateway to – an provide a broad range of education and perhaps especially, taking Africa into industry and within the cluster, we choose untapped market that spans the Middle training faculties. account, although it has a vast economy. specific business opportunities and create East, North and South Africa, the Indian a top-level business plan for each one. We subcontinent and the CIS. This market We had to learn tough lessons throughout It was this realisation that transformed our run due diligence on the plan, then profile consists of 31 countries, 53 languages, this process, and especially when we ambitions. We stepped in to fill the gap. the top 150 or so key investors in the 1.8 billion people and a collective GDP developed our second and third clusters, We have since been very successful in region. We establish relationships with of $1.1 trillion. for the financial and health sectors positioning ourselves as the hub of the them, so that we understand their respectively. Each time, we had to go back extended region outlined above. With a investment profiles and can match our Our vision is now increasingly focused on to the drawing board. Every project went collective GDP of $1.1 trillion, it’s no offerings to their portfolios. one aim: to make Dubai a global hub of through major revisions with regard to the surprise that we can rely increasingly on the world knowledge economy by 2010. parties involved and the relationships, as ‘regional’ financing! This is hard, carefully targeted work. For well as the basic model. example, when we launched Health Care This shift has changed the way we work City, we knew exactly who to go to for and especially the way we plan, legislate, investment in our teaching hospital, our foster talent and create communications diabetes research centre (diabetes is the infrastructures. number-one killer in this region), the 1 Professor Porter of the Harvard Business School’s Institute for Strategy and Competitiveness launched the Cluster Mapping Project to define clusters statistically and create objective, detailed profiles of regional economies. medical centre and so on. Cluster mapping involves the analysis – at several geographic/economic/demographic levels – of regional economic units. This data is used to identify those areas that, by virtue of their performance, location and interdependencies between different industries, can be termed ‘clusters’. Clusters can be evaluated in terms of their contribution to employment and earnings, 12 economic growth, generation of new businesses, and development of IP. 13 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 12

Dubai

Saeed Al Muntafiq, Director General, Dubai Development and Investment Authority

Dubai Dubai

The rule of law subsidiary has its own president and Their needs will be different, of course. Oracle, IBM, Cisco, Compaq and Ariba. operates as a separate business unit. So You only have to think of something like We allow 100% foreign ownership and Secondly, it’s forced us to introduce new just as GE, for example, has its telemedicine to realise that the Health sales. Furthermore, company earnings and statutory frameworks – especially where engine’s division, its plastics and City, for example, will require higher private income are exempt from any form finance and health are concerned. There chemicals, so Dubai has its Media City, communications specifications than other of taxation. DIC is already cash-positive, are numerous issues that can be Financial City and so on. sectors. It’s not just infrastructure either: although not profitable yet, but this is overlooked – the role of intellectual applications and protocols are needed to largely an issue of how we treat property law in healthcare, for example, But you also need to be aware of the create a comprehensive healthcare system depreciation – there are obviously vast where companies are investing heavily in human element at the bottom of the pile. in Dubai, answering the requirements of infrastructure costs. IP research and development. Where is the skills pool that is driving the the teaching hospital and ultimately machine? Personally, this is something I enabling the linking of all healthcare Dubai Media City is already home to over The lessons we’ve learned here are think about every day: from where are we information systems – clinics, hospitals, 550 media companies including key principally that you can’t do it all at once. going to get the talent? Right now, if you pharmacies etc – to the central Health players such as CNN, Reuters, Sony You have to focus on one sector and map sat down and worked it out, we’d have City ‘hub’. Broadcast & Professional, McGraw Hill it out carefully. Every new regulation you about six projects for every individual! Publishing, Bertelsmann and MBC. introduce is going to impact on the People are the issue, which is why we Then there are the cultural challenges Regional companies and new start-ups country and the region as a whole. When spend a lot of time in finding, grooming, implicit in extending communications supplement the mix and there’s a growing you’re operating subsidies at the level mentoring and then pushing new links. Schools don’t want to lose control talent pool offering creative skills and required for these sorts of projects, young nationals. over communication between students of services to the larger companies. Media statutory influence is mandatory to avoid different gender, for example. In all these City is cash-positive and already looking at destabilising niche economic sectors: Our educational strategy is an identical cases, the first step is to research and launching a second project: Film City – a you’re not simply managing projects at proposition to Boston. It is not cluster- identify what the customers want and Hollywood of our own. this scale; you’re also macro-managing the driven – any cluster structure emerges need. Broadband may be driving economy as a whole. The critical success organically from seed projects. Boston has infrastructure development in many Dubai Knowledge Village launched in the factor here is leadership – you have to stay Harvard; it also has MIT, and that’s what modern cities, but that doesn’t mean fourth quarter of 2003. It's become home on top of everything – and you need to be we’re aiming for here. We’re expanding you can take your eye off the basic to a broad range of education and able to win vital support and commitment our facilities for those entering high question: what do people actually want training operations, ranging from major to keep going. school and, at the other end of the scale, to use it for? international universities, such as the US for postgraduates. We’re not dealing with Purdue University with large, on-campus The human factor the 18-year-old age range, where there are It’s also important to define your own role facilities, to independent, freelance very significant costs involved. We want to in this process. Our approach is to get the trainers operating out of fully serviced Next, we’ve had to deal with human lay the foundations with a good general experts to define the needs and the business centres. factors, such as how the people at the top education, and then we’ll provide the specifications and to carry out the work; should be incentivised to boost specialist finishing courses to take people we’re only the project managers. After all, Dubai Health Care City will take longer to performance. This is an important into work. we’re not doctors (for example) and reach profit. This is because the health example, because each cluster is totally shouldn’t pretend that we are. sector has demanded a different independent, responsible for its own Making connections approach. DHCC operates in both the success and managed, in effect, From vision to reality academic research and healthcare service like a company. Today, each city independently determines arenas. We feel that we have to subsidise its technology and connectivity These strategies have borne fruit: our the former while allowing the private At a higher level, there’s a council of requirements but, going forward, we projects have been extremely successful. sector to develop the latter – and ministers or executive council, which is envisage that all of these cities will therefore to take the profit. This isn’t a effectively the corporate holding company be connected. Today, DIC is home to over 500 companies problem for us: any economy that aspires with all the cities as subsidiaries. Each including Microsoft, Hewlett Packard, to global status needs to invest a

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percentage of GDP in research. in the first phase to develop the project's infrastructure. The sky’s the limit. Dubai Internet City Broadcast & Professional, McGraw Hill The business model for Dubai Publishing, Bertelsmann, and MBC, International Financial City works Killer instincts A strategic base for companies along with regional companies and predominately through real estate. We targeting emerging markets in a vast new start-ups. The interdependent region extending from the Middle East media community also boasts a also offer access to regional markets – What have I learned during this period of to the Indian subcontinent, and Africa growing talent pool that offers a range Saudi, Bahrain, Kuwait etc. One of our enormous growth and tremendously hard to the CIS countries, covering of creative skills. Currently, over 250 value propositions is our time zone. work? The most important lesson, I think, 1.8 billion people with GDP $1.1 trillion. freelance media professionals are We have a six-and-a-half-hour slot has been to trust your instinct. based in the City. As a free-zone entity, between close of business in New York Within a short span of time, a dynamic Dubai Media City allows companies and the start of trading in Asia – a Articulate the vision, address the international community of ICT 100% company ownership along with very attractive proposition for finance economies of scale, clusters, companies has established itself in commercial benefits that include a 50- houses and especially those involved in competitiveness of the region – then go Dubai Internet City. These companies year tax exemption from personal, foreign exchange. with what you know. Don’t keep asking represent a community of over 10,000 income and corporate taxes. consultants: go for entrepreneurs, for knowledge workers. The cluster of ICT In the past, the main focus in the real people who get the things done. Plan, companies in Dubai Internet City Dubai Knowledge Village estate market has been on taking profit. cost, manage – and then don’t let comprise software development, Knowledge Village aims to create a rich But there’s increasing focus on taking anything get in the way of executing the business services, web based and e-commerce, consultancy, education ecosystem for a variety of longterm revenue from real estate, via plan – ruthlessly. You want to think like a and training, sales and marketing, and organisations and individuals to create tourism, financial services, manufacturing team of mercenaries: go in, assassinate, back-office operations. DIC provides a and disseminate knowledge. and so on. If you look at a ten-year and get out! scalable state-of-the-art technology Knowledge Village provides a world- business plan for any of these cities, platform that allows companies class learning infrastructure and the first four are going to be focused looking to provide cost-effective environment for the development of on real estate revenue streams, but Business Process Outsourcing (BPO) scholarship, education, training, ideas, strategic revenue streams kick in during services, such as call centre operations, creativity, innovation and the second half. and easy access to these services. entrepreneurial expertise.

Revenues generated by a city from its real Dubai Media City Knowledge Village will be a catalyst for estate will not go to government: they the development of a strong and help to pay back the banks and boost The Media City provides an advanced sustainable future, based on a wealth investment in the value-added industries infrastructure and supportive of knowledge – human resources that the city needs to take it to the next environment for media-related rather than natural resources. level. Dubai Internet City, for example, businesses to operate globally out of Knowledge Village creates access to can pay back the bank and put money Dubai. The Media City brings to the this new culture of learning in three distinct ways: firstly, by facilitating into research in technology and telecoms, media community an advanced access to high-quality learning redefining itself as an alternative infrastructure based upon a global opportunities – for all ages, career service provider. interconnected network, linked by satellites, computers, the internet, stages and levels; secondly, through television, radio, journalism, cinema the wide diversity of areas of studies Meanwhile, it’s onwards and upwards. In and film production. available; thirdly, through the strong, October 2003, Dubai announced the close and diverse background and region’s biggest tourism project yet – The Media City is already home to over interaction of learners at Knowledge Dubailand – with an estimated investment 600 media companies, including global Village – a global learning habitat of more than Dh18 billion. The giants such as CNN, Reuters, Sony where individual contact and government intends to spend Dh2.6 billion

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connectivity into global networks via cluster economy is a university medical technology are richly combined into a complex; consisting of a university unique experience. specialty hospital, a post-graduate medical school and nursing school, Dubailand and a life science research centre. The combination of these three The government intends to spend components will enable Dubai to Dh2.6 billion in the first phase to leapfrog to the forefront of regional develop the project’s infrastructure, medical practices, establishing a and with an estimated investment of position of regional leadership through more than Dh18 billion. leading edge education and research, and thereby becoming a centre of Dubai’s strategic plan is to add more excellence in global healthcare. depth to the tourism sector and contribute towards transforming the Dubai International Finance city into one of the top tourist Centre destinations internationally. The project will be built along Emirates Situated as a bridge between the Road, next to Nad Al Sheba, Al Qouz financial centres of Europe and Asia, and Al Barsha, which will give it the Dubai International Finance Centre advantage of easy access from Abu (DIFC) is a platform for accessing the Dhabi, Dubai, Sharjah and the trillion-dollar regional market. Dubai is Northern Emirates. building its international financial centre on four foundations: Dubailand will be completed by late 2006 and expects to attract 15 million The first is regulation and transparency, tourists to Dubai by 2010. because a global finance centre of the 21st century has to be Dubai Health Care City open and well regulated so that it is trusted by other jurisdictions and The Dubai Health Care City (DHCC) companies who locate within it, initiative is to provide the highest knowing their reputation is safe. quality of healthcare services to Second is the creation of new medical care and wellness seekers from financial capital markets, which will the region (comprised of the GCC, help bring prosperity to the entire Indian Subcontinent, Northern Gulf, region. Financial capital moves to Central Asia, the Levant, North and where it is safest and best rewarded, East Africa), by creating a world-class so DIFC’s combination of total cluster of healthcare professionals and transparency and zero tax enable service providers at the heart of Dubai. Dubai to benefit from the global flight to quality. Third is, it’s a great DHCC aspires to provide state-of-the- environment for people, and fourth is art medical care services in selected its stable political environment. disciplines that are relevant to the health problems facing the patients in the region. The ‘core’ of the healthcare

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‘ Barcelona

Joan Clos, Mayor of Barcelona

arcelona, one of Europe’s major neighbourhood portals have created of information and services. Barcelona is a by Barcelona City Council (Ómnibus, June cities, is the economic, cultural debate, because they are not only news European city with a high number of 2003), 46.5 per cent of the city’s homes and administrative capital of portals but also interchange platforms transactional services. The site displays its are connected to the internet. That means B Catalonia, an autonomous region within the community. For example, when contents in three languages – Catalan, that nearly one in every two Barcelona in the northeast of Spain on the an urban city planning reform is launched, Spanish and English – and provides homes is connected to the net. Of this Mediterranean coast. It is sixth in Europe the community can air their views – the information for residents, companies and group, 37.8 per cent has a broadband in population density and fifth in industrial dialogue itself is a tool for the planners in tourists. The site and its services have won connection at home, and the last quarter concentration. The metropolitan area of the decision-making process. These several awards: third prize in Design in the has seen swift growth in DSL connections, Barcelona traditionally had a high websites work in the majority of the European E-City Awards (2002), first prize a technology that is replacing the proportion of industrial activity as part of Barcelona districts and have increasing of the Auna Foundation (2002), the traditional telephone line, along with slow its total economic activity. Today, the city citizen participation. Stockholm Challenge Award (2002), and it but steady growth in connections and its surrounding area are a significant was also a finalist in the World Technology by cable. economic centre in terms of new Barcelona City Council is moving towards Awards (2002). technologies and advanced services within e-government, using the internet as a tool Compared to the Scandinavian countries the framework of the information society. to achieve the following key strategic Barcelona City Council has broad or Southeast Asia, these figures are low, objectives: experience participating in European but one must bear in mind our Our aim is to transform Barcelona into a projects: Dalí, Gala, Exe, NetForNets, demographic context. great city, where the knowledge economy • Rethinking and improving internal Permis, Gaudi, Eurociti, Elda and others. can develop out of the dense urban management It also belongs to large networks of cities In Spain as a whole, 27.4% of the nucleus that is our city. The new EU • Enhancing and deepening such as TeleCities, and belongs to big city population is connected to the internet, policies that will increase the funds commitments to citizens networks (currently holding the while the figure is 32% in Catalonia, available for research and knowledge offer • Developing a participatory strategy for presidency), including EuroCities, according to the latest EGM survey us a great opportunity to move forward. the city Metropolis, Major Cities of Europe performed by AIMC. However, it must be and ELANET. remembered that this survey includes all We are known as a city that produces and At present, the data network of Barcelona internet users, not only those with home exports medium-high-tech goods. ICT City Council is made up of four clearly The broadband city connections. That is, there is a differential manufacturers have increased exports distinct areas: of at least 20 points between Barcelona’s almost fourfold since 1993 and In order to explain the development of geographic surroundings and Barcelona Barcelona has become the principal export • Corporate network broadband in Barcelona, you need to itself. The same trends can be seen in base in Spain. • Access network understand the setting in which it has broadband connections. • Extranet taken shape. This essay first describes More important is the capacity of the • Internet the demographic context, and then the Furthermore, certain socio-economic ‘New Technologies’ to bring government socio-economic context. factors have hindered the growth of closer to our citizens and to create The official website of Barcelona City broadband in the city. Elsewhere in the transparency in the city management. We Council provides access to a broad range According to the latest data from studies world, broadband developed in the have experience in citizen networks. The 20 21 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 20

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Joan Clos, Mayor of Barcelona

Barcelona Barcelona

framework of a pre-existing cable Channel Integrated Service more complex, thereby being capable of network, which had been created, System (MISS). Public administrations must take including citizens, other public institutions, extended, operated and made profitable advantage of the development of private companies and other actors in the 80s and 90s for television. The system, which serves more than wireless technologies to involve in the city. However, in Spain, digital television 18 million requests a year, centrally citizens by giving them a greater entered people’s homes by satellite manages most of the information and role in management processes Towards the universal availability of rather than by cable, and satellite services going both from the City Council public services and information technology has not yet made an to citizens and from citizens to the effective leap to bi-directional data City Council. Public administrations must take transmission – a necessary condition Most of the equipment supporting the network is Cisco. All the networks use a advantage of the development of wireless for broadband internet. MISS is based on internet technology, and combination of Radius-LDAP as the technologies to involve citizens by giving it allows for sharing the same information them a greater role in management Barcelona City Council has faced up through three channels: the website authentication system of entering users. processes, while reducing costs in service to these challenges with the longterm www.bcn.es, the telephone information management. Above all, the most vision of providing better services to service and the public information offices. For its part, the Extranet provides a link important goal is to improve both citizens, as broadband is not an end in between external companies and the City provision of services to the public and itself but rather a tool for improving the In order to develop the MISS, intranet and Council. It is based on point-to-point links citizens’ quality of life. productivity, and therefore the integrated internal services, we have had that originate in the City Council and have competitiveness, of the city. And most to create a powerful internal broadband an endpoint in each of the companies One of the most important challenges of of all for achieving internal changes in network to support the information flows involved. The technology of the Extranet is the council itself. As we have said, the required in an information architecture of Gigabit Ethernet and is supported by m-government in meeting this aim is to aim is always to provide citizens with this type. operator links. The system operates with effectively combine secure methods of better services. CISCO 2948 and 3512 units. identification and easy-to-use applications Data network so as to ensure citizen-accessibility. For instance, for some time now the City The corporate Internet provides an Council has been broadcasting live online, • Corporate network internet connection to the internal The following are some good examples of via streaming video, all municipal plenary • Access network network as well as to the public internet the possibilities of m-government: sessions. Users can also see all past • Extranet services available. automatic question-and-answer services plenary sessions on demand through an • Internet (the voice portal, currently under index of plenums by subject. Here, the development in Barcelona, based on voice- The City Council has its own public IP limited spread of broadband in the city recognition and web-semantic The Corporate network is a private address, as it is constituted as an LIR. has prevented provision of more advanced network that links together the 123 technologies); reminders of appointments services to citizens. with the administration; sending of public centres of the City Council. The Multi-Channel Integrated Service transport timetables depending on • The Broad Services City: the challenge System helps improve people’s quality of The Access network ensures the location; use of multimedia messages of transforming administration through life by offering those without internet connectivity of centres with lower (MMS) as instruments of public broadband access the chance to benefit from the participation; payment of public parking • Multi-Channel Integrated Service broadband requirements to City Council same information and the same services tolls; tickets for public transport; System (MISS): e-government beyond applications by means of a channel provided by the City Council on the information about public employment an Internet portal between the centre and the CPD/IMI. It is internet. vacancies; services in museums and other • The creation of a 155 Mbit/s high- defined on the basis of public networks tourist attractions; and an endless list speed internal network for the City and configured like a VPN. There are four Moreover, the MISS structure is the limited only by our imagination. Council has enabled the development main access technologies: frame-relay, technological framework that allows us to and implementation of the Multi- ADSL, XDSI-XTC and GPRS. enlarge our internal network and make it

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Barcelona is already seeking to design an of life. The updating of the regulatory framework effective model of global m-government In short, e-governance helps has taken the form of the Modification of that would meet all these challenges and In short, e-governance helps citizens take citizens take a more proactive the General Metropolitan Plan for the place all these actors at the service of a more proactive role in deciding what role in deciding what kind of renewal of the industrial areas of the city. kind of services they want and through services they want and through Poblenou (MPGM), approved 27 July 2000, what type of structure they wish to what kind of structure they wish which has generated conditions This is because m-government is not only receive them. to receive them. favourable to stimulating and attracting a phase of e-government, but a advanced economic activities. These reinvention of public services from the Two emblematic projects activities demand a central location, good standpoint, more than ever, of the citizen. infrastructures and a quality urban The network of metropolitan cities, with environment. • 22@ Bcn Barcelona in the lead, is quickly shifting its The broadminded city: towards • The Universal Forum of Cultures 2004 productive specialisation: nearly two-thirds e-governance The Modification of the PGM changes the of its exports today are goods with high or characteristics of the urban planning Currently, two projects are running in middle-high technological intensity. Its According to the United Nations, the regulations of the industrial area, Barcelona that are examples of the future competitiveness critically depends concept of governance must be replacing the old urban zoning commitment of the city to the socio- on its capacity to integrate new understood as a process. In this process, qualification 22a with the modern 22@: economic, urban and international information and communication institutions, organisations and citizens position of the city in the future. At technologies and to strengthen organise to make decisions through • It regulates the uses and density of the same time, these two projects knowledge-dense tertiary or industrial effective mechanisms of transparency. construction show our belief in technology as an activities. The city of Barcelona acts as • It provides incentives for conversion to indispensable element of building a just both the main centre of services to a attract knowledge-dense activities Thus, and continuing with the definition and equal society. multi-nucleus metropolitan area and as • It creates a new equipment of the United Nations, e-governance capital of Catalonia. To preserve its leading qualification called 7@, which is the use by the public sector of the most 22@ Bcn role economically and professionally, it will clear the way for building innovative information and must deepen its specialisation in information infrastructures communication technologies, such as Barcelona has set itself a new goal: to fully knowledge-dense activities, as these are • It defines new standards of urban internet, to provide citizens with better integrate itself into the new technological also employment-dense activities. services, more reliable information and revolution and face the challenge of the development and – in the Special more knowledge in order to facilitate Plan for Infrastructures – provides for information economy. The Poblenou, the Barcelona’s traditional economic and access to governing processes and the complete urban development of leading nucleus of industrialisation in urban planning strategies were based on promote citizen participation.’ It is, the area Spain in the 19th century, is striving to be manufacturing as the dominant economic indeed, an unequivocal commitment by • It defines the obligations of the main technological platform for activity, and on the premise that zoning in decision-makers to strengthen the landowners and determines the Barcelona and Catalonia. the central municipality of the metropolis collaboration between private citizens and forms and mechanisms for derivative was needed to preserve manufacturing. the public sector. planning – Special Plans – in order to Real, living Barcelona, as a labour market The transition from an industrial enable conversion that includes nearly two million jobs manufacturing model to one based on the The introduction and acceptance of and a population of 4.3 million, is the information society has entailed in-depth Throughout its execution over 15 to 20 e-governance is the path towards ensuring sixth leading metropolitan region revisions of urban regulations of the old years, the project will allow for the that each citizen has the same right to be of the EU demographically, exporting industrial areas of the Poblenou district building of 3,200,000 m2 of new and a part of decision-making processes that 22.5% of Spain’s industrial and (zone 22a of the General Metropolitan used buildings for productive uses, affect them directly or indirectly, and to non-industrial goods. Plan of 1976). influence the process so that it can between 3,500 and 4,000 new housing improve his or her conditions and quality units under a regime of official

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subsidisation, the freeing of some safeguarding of human rights and forms 220,000 m2 of land for new facilities of living in harmony with the and garden areas, and for an increase environment. These elements, among of 100,000 to 130,000 jobs in the area. others, are crucial for forging conditions that are more favourable to progress and Forum 2004 human development. Barcelona is committed to a future where a stable Barcelona is starting the innovative peace means much more than absence Universal Forum of Cultures in 2004. This of conflict. is a new type of event with an international dimension, where the city aims to provide a space in which to reflect upon and experiment with the most important cultural and social conflicts faced by the world in the 21st century. It will be held from 9 May to 26 September, and will be structured around three themes: cultural diversity, sustainable development and the conditions of peace.

Knowledge of other cultures is essential to engaging in constructive dialogue between peoples. Such knowledge entails reflection upon the commonalities of all human beings as well as their differences. To the extent that we are able to conceive difference as enrichment and a common heritage, not an obstacle, we will be able to reduce tensions and turn them into a positive force.

Today, it is more urgent than ever to find forms of growth that respect natural resources and conserve them for the good of all, particularly for future generations. It is important to understand sustainability as a concept that goes beyond ecology, and also as a factor that enables creating conditions for coexistence, dialogue between peoples and peace.

The creation of a culture of peace must be based, most of all, on respect for other cultures, social and political justice,

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The creation of a culture of peace must be based, most of all, on respect for other cultures, social and political justice,

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New York

By Michael R Bloomberg, Mayor of the City of New York

itizen Service – the concept of we are streamlining government and emergencies and 311 for everything else. of them conduct their business more government agencies providing doing better with less. If you want to report a broken streetlight, efficiently and with better citizen service. world-class service to its citizens find out if you qualify for food stamps, or C – is a major goal for my New York City is at the forefront of even report graffiti, all you need to do is Digitising x-rays administration. Over the past 20 months, technological innovation in municipal dial 311 (or 212-NEW YORK if you are we have focused our attention not only on government. From our 311 Citizen Service outside New York). In November 2002, the Health Hospitals balancing the budget, improving our Hotline, to digitising 911 emergency Corporation (HHC) completed the schools and keeping crime down, but also response calls, New York City continues to In five months we have already received installation of Picture Archiving on improving service delivery wherever deploy technology to every agency to help two million calls, and call volume is Communications Systems (PACS) at all possible. Technology is a driving force in them fulfil their goals. picking up every day (nearly 20,000 calls HHC facilities. Each year, PACS providing better Citizen Service to all New come into 311 each day). Clearly, electronically stores digital x-ray images Yorkers. Instead of paper-based systems Below is a sampling of the different providing easy access to city services is a for one million radiology cases, replacing that inherently make it difficult, costly and programmes New York City has underway big hit with New Yorkers. the use of outmoded and cumbersome time-consuming to share information, we and how we are using them. x-ray film. Prior to the system-wide have made an aggressive push to drive Using 311 technology, for the first time installation of PACS, it took 24 to 48 hours more applications and functions to the 311 Citizen Service Hotline the cty can prevent problems before they to access almost every radiology image. internet (or other digital mediums) where arise. How can we do this? For instance, With PACS, every image is available within the information can be quickly shared and On March 9 2003, the 311 Citizen Service we can map all double-parked car four minutes. Using PACS, a patient’s distributed to the parties that need it. Hotline went online. Before 311, every complaints, noise complaints, and all medical team can review the digital x-rays Over this period, there is no question that time the city announced a new establishments with liquor licences from from virtually any location over secure New York City has become more efficient, programme or service, there was always a the State of New York. We can use this internet gateways 24 hours a day, seven innovative, technologically adept, and new number attached to that programme data to ascertain if some of these double- days a week, consult on treatment options citizen service-friendly. or service. By the time I took office, there parked car complaints and noise faster and more efficiently, and maximise were 11 pages of telephone numbers in complaints are coming from a club or bar, the productivity of scarce radiology and During the current fiscal crisis, we cannot the phone book listing different ways New and try to prevent the problem from medical expertise. Digital storage further afford to operate at anything less than full Yorkers could contact their government. arising again. improves patient care by allowing for easy efficiency. In business, we are judged by Whenever New Yorkers had to contact comparison of images over time, and by performance, not by how much we spend. their government, they had to be a 311 represents a major achievement of my providing detailed and accurate Government should also be judged by the near-expert in municipal government to administration. Not only did we magnifications of images. same standard. Cutting $2.3 billion from find the right office (for instance, the Fire consolidate 12 call centres (eventually, all the budget does not mean we cannot Department doesn’t repair broken fire 40+ city call centres will be rolled into The programme saves doctors’ time and provide good or improved services to the hydrants, the Department of 311), but we now have sophisticated tools hospitals’ money – $1 million at Elmhurst public, and that is exactly what we have Environmental Protection does). 311 to measure our performance in alone. In fact, instead of having a done this year. From using technology to changes all of that. Now New Yorkers only responding to requests. 311 affects every radiologist at all times at both Elmhurst improving citizen service, to cutting into need to remember two numbers when city agency in New York and has helped all Hospital Center and the Queens Hospital the city bureaucracy of cars and permits, contacting their city government – 911 for 28 29 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 28

New York

By Michael R Bloomberg, Mayor of the City of New York

New York New York

Center, just one is needed for both only enhance patient care but also State-of-the-art revenue collection locations at night. The PACS system improve the bottom line – patients are New Yorkers can now pay parking maximises the productivity of scarce treated more quickly, at a lower cost, and tickets, property taxes, water bills Thanks to NYCServ, New Yorkers can now radiology and medical expertise. insurers are providing higher and other fees in one quick visit pay parking tickets, property taxes, water While fewer than ten per cent of reimbursement rates to healthcare over the internet bills and other fees in one quick visit over hospitals nationwide have digitised facilities with CPOE, an increase of as the internet at www.nyc.gov/finance. x-rays, the PACS system has been much as four per cent in 2002. Through NYCServ, which went online in installed at every HHC facility in the February 2002, New Yorkers can also place. Since ‘Meet Our Kids’ was launched, city. This has saved $4 million Putting all medical records online contest tickets online by conducting a enquiries to the ACS Parent Recruitment and will save $11 million annually. hearing with an Administrative Law Judge Hotline have increased by 65%, with The successful implementation of the via email. Individuals can also track down internet inquires accounting for about Computerising physician orders Computerized Physician Order Entry towed cars and pay certain business taxes. 50% of the average 600 total calls to the system is hastening the completion of Since January, NYCServ has serviced hotline each month. ‘Meet Our Kids’ is In 2002, HHC completed system-wide HHC’s overall goal of storing all patient 630,000 transactions, collecting a total of also one of the most visited areas of the installation of Computerized Physician records in its Electronic Medical Record $1.4 billion. ACS website, consistently ranking among Order Entry (CPOE) throughout its (EMR). Currently, the electronic medical the top ten pages viewed, with about 11 acute care hospitals and at over 100 record of every one of HHC’s 1.3 million Purchasing permits online 2,200 hits per month. Savings for the city community-based clinics. Annually, HHC patients includes medication history, lab include a reduced number of mailings, clinicians now use CPOE to order results and radiology tests. The EMR also reduction in staff time on the phone and Last year Parks established an online credit approximately 13 million pharmacy links to the Micromedex patient digital photography cost savings of card payment system for special events prescriptions, 96 million lab tests, and one information system, which clinicians use to $35,000 a year. and tennis permits. The Parks website also million radiology tests. National safety provide patients with a printout – in allows users to obtain special events experts widely agree that using a CPOE English or Spanish – of complete Benefit QuickCheck for seniors permits/applications, athletic permits and system reduces medication errors by as information about their prescribed applications, forestry permits, lifeguard much as 50 to 70%, and HHC’s medications, specific medical conditions applications, guidelines for donating In May 2002, the Department for the medication error rate with this system is such as asthma, and other critical works of art to Parks, volunteer sign-up Aging released QuickCheck, an easy-to- less than .000001% – or less than one in a medical information. forms, and more. million. CPOE also provides clinicians with use, online tool that helps New York City’s senior citizens check their eligibility for a alerts and warnings, and detailed Improved adoption access Mayor’s Office of Film, Theatre and variety of benefits and programmes. The medication history. CPOE further improves Broadcasting QuickCheck user completes an online patient care by giving clinicians faster In February 2002, the Administration for centralised access to lab results, allowing application, and can then choose from 16 Children’s Services (ACS) launched the In 2002, the Mayor's Office of Film, doctors to treat patients promptly. For assistance programmes administered by ‘Meet Our Kids’ website. The website Theatre and Broadcasting loaded all routine lab tests, results are available in various branches of federal, state and local allows interested families to view photos permit applications online at under two hours, urgent tests are government. QuickCheck informs the and stories of children who are waiting for www.nyc.gov/film. Prior to this, the available in under 30 minutes, and applicant which benefits they are most a permanent, loving adoptive family. The agency had been processing permits by emergency screening results are back in likely to receive and then provides a link benefits of having adoption information hand and with typewriters. In addition less than ten minutes. HHC remains far to the administering agency’s eligibility online include immediate availability of to streamlining the permit process, the ahead of the national trend in this effort, form. Following the introduction of adoption information, 24 hours a day, agency has installed a new phone with 100% of all HHC physicians using the QuickCheck, the number of monthly visits seven days a week, significant savings in system whereby an individual answers CPOE system for all their ordering. Only to Aging’s website rose by nearly 50% to staff time, and the ability to reach the phone rather than an automated voice five per cent of all hospitals nationwide – over 23,000 hits. adoptive homes outside of New York City, mailbox system. public and private – have achieved this which is a great way for ACS to find goal. Ultimately, these innovations not homes for children who might be hard to

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Mayor’s management report – Leveraging technology resources Using technology and multi- streamlined and online By making procurement agency coordination to combat At the beginning of 2002 the DoITT was information available domestic violence In September 2002, the Mayor’s Office of instructed to assist agencies in cutting electronically, paper waste has Operations released the newly streamlined their technology and telecommunications been reduced dramatically and In October 2002, the NYPD completed Mayor’s Management Report (MMR – a costs, and upgrading their technology Requirement Contracts are work on a new system that digitally report of different statistics compiled by infrastructure. DoITT began sharing its accessible instantaneously records and indexes all calls made to the the different city agencies). The new MMR data centre and fibre resources to save city’s 911 emergency response system. As has been redesigned as a ‘Public Report agencies the costs typically associated a result, clear and accurate recordings of Card’ – to help citizens, civic groups and with securing internet access or housing these calls are now retrieved and made public officials understand how data centre facilities at alternative databases based on key words, contract available to prosecutors almost government is performing. The City locations. Currently, 13 agencies are numbers, vendor names or contract types, immediately. Prior to the implementation introduced a companion website – using the service, saving the city $1.3 and view or print electronic versions of the of this new technology, 911 calls were www.nyc.gov/myneighborhoodstats – that million annually. actual RC reports. By making the manually retrieved by technicians and makes obtaining and understanding the information available electronically, paper provided to prosecutors on cassette tapes, data more user-friendly and accessible. In addition, city agencies are now able to waste has been reduced dramatically and a process that took an average of three The website also allows the public to view, use DoITT’s Virtual Private Network facility RCs are accessible instantaneously. This months to complete. The Kings County locally mapped performance statistics, so to gain remote access from the internet programme has saved $55,000 in FY2002. District Attorney is now using the system the average user can enter his or her zip for individual agency users, saving the city In FY2003, and every year thereafter, the to strengthen the prosecution of code and learn the local crime statistics, $1 million annually. DoITT has also opened programme will save $100,000. misdemeanor domestic violence cases. park cleanliness rates, fire response times up its data centre to any agency, allowing Prosecutors may now play victims‘ 911 and more. Since its launch on 24 them to save the cost of building their Paperless city offices calls for arraignment judges, increasing September 2003 the e-MMR has received own data centre, saving the city over $5 the likelihood that bail will be set. In some over 170,000 page views, and over 59,000 million annually. In 2002, the Human Resources cases, 911 recordings can even serve as people have taken advantage of the Administration (HRA) converted 19 of 31 direct evidence, enabling prosecutions to neighbourhood performance application. And finally, DoITT is transferring the job centres to a paperless office system, proceed even if the victim refuses to NYC.gov website from its external host site with the intention of having all the centres cooperate. From 22 October through 4 Telecommunications cost-savings in New Jersey to the DoITT data centre to completed by June 2003. With the December 2002, the District Attorney’s initiative avoid third-party vendor costs. The move paperless system, employees enter Office accessed and screened 197 digital will save the city $1.4 million annually. information about clients directly into the 911 recordings prior to arraignment. In 2002, the Department of Information computer, instead of filling out forms in Approximately one-third of those calls Technology and Telecommunications Paperless procurement longhand or on a typewriter. The system were deemed to be of significant (DoITT) began an aggressive review of all prompts workers to ask for information evidentiary value and were played in the courtroom to bolster bail applications. city telecommunications needs to discover Starting in July 2002, the Department of and ensures that data is not missed. As ways to reduce telecommunications costs Citywide Administrative Services (DCAS) workers become increasingly familiar with without reducing service. DoITT suspended the monthly distribution of all the system, the time necessary to serve DNA technology negotiated a revised local telephone usage paper copies of its Requirement Contracts each client will continue to decrease, and billing plan with Verizon that is expected (RC) to City agencies. Instead, city to date HRA has imaged 230 million During the first three-quarters of 2002, to reduce expenses by approximately agencies now must log onto the city’s documents. The paperless office has OCME‘s Forensic Biology Laboratory $10 million annually. In addition, the city intranet to view RCs. To make the new already substantially cut processing time increased the number of Combined DNA will save $1.7 million by cancelling unused system work, DCAS developed a and eliminates paper files and the need to Index System (CODIS) profiles 140%, from voice and data lines, and save $2 million searchable database of all RCs as well as search for them. 1,313 to 3,156 profiles, resulting in a 52% by securing better pricing for various the central storehouse catalogue of items increase in case-to-case matches, a 36% telephone services. in inventory. Users can easily search the increase in convicted offender matches,

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and a 61% increase in conviction matches. grant from the New York City Police Turnaround time for DNA work related to Foundation. The NYPD has also expanded sexual assaults averaged 39 days per case the ‘Digital Photographs Pilot Project’ from – the fastest turnaround time for regular Queens to Brooklyn to assess the use of casework in any large public DNA new digital camera technology and laboratory in the United States. Over the software, and expedite the transmission of past year, OCME has also electronically photographs to the District Attorney’s archived two years of medical examiner Offices for the prosecution of defendants case records, forming the basis for an in domestic violence cases. In addition, the electronic records management system. NYPD has provided laptop computers to Finally, OCME has been developing an all precinct, PSA and transit commanders, agency-wide system to electronically connecting each to the Compstat. generate death certificates. This system will be fully operational on1 January 2004, Forensics when the city adopts the new national death certificate standard. The NYPD has launched several technological initiatives to enable forensic OCME has successfully continued to scientists to provide a higher quality respond to the largest, most complex report in a timely manner to prosecutors mass fatality incident in the history of the in New York City. These include the United States, namely the September 11th enhancement of ballistic imaging, digital attacks. The Office restructured imaging and the handling of data operations, created new processes and and evidence. procedures and coordinated efforts with other agencies, jurisdictions, and more than 80 countries. As of this date, 52% (1,443) of the victims reported missing have been identified, and OCME anticipates that the introduction of new DNA technology will push the figure to 72% (2,000) of the victims. OCME has also utilised DNA technology to link remains of the victims of Flight 587. The victims’ families have claimed more than half of the remains and OCME is meeting with the families to decide upon a final resting place for the remains that have not been identified or claimed.

Digital cameras

In 2002, the NYPD distributed digital cameras to all precinct, housing, and transit commanding officers through a

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Digital cameras

In 2002, the NYPD distributed digital cameras to all precinct, housing, and transit commanding officers through a

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Stockholm

Monica Berneström, Head of Development TIME at the Economic Development Agency; Anita Ferm, Director of Education Administration and Per-Olof Gustafsson, Deputy Managing Director, Economic Development Office, Stockholm

passionate interest in technology deregulated telecoms market in the world. it’s not just a corporate resource: 95% of district has its own local council and its – and communications in We wanted to improve the infrastructure homes in the city of Stockholm have been own public administration. Together, particular – seems to be a by laying new fibre, but we wanted to do passed, so all the home-owner needs to these districts are responsible for the great A hallmark of the Swedish national so in a manner that would not perpetuate do is connect to Stokab either by majority of the city’s budget and also have character. Perhaps it’s the combination of the existing monopoly (since, like most themselves or through a service provider. direct control over childcare, schools, care a small population and many isolated countries, we had only one telecoms of the elderly and other social duties island communities. Or perhaps it’s provider at that time). We developed the Stokab model because within their district boundaries. because we feel ourselves part of a little we wanted to foster competition, but we country on the outskirts of the world, so The solution was Stokab (www.stokab.se) didn’t want the situation that had arisen This decentralisation was an excellent that when new ideas arrive we delight and the international community was in, for example, London, where numerous opportunity for the city to rewire and in making it possible for all our initially as dismissive of this as Lars different providers dug holes in the put fibre into city institutions. Each countrymen to share these innovations Ericsson’s neighbours must have been ground, causing difficulties for citizens district council was connected to the as quickly as possible. about his fishing rods. It has, however, and endless traffic disruption. On the network and at the same time it was been equally successful. other hand, at a strategic level, the issue decided that all schools should also be By 1898, for example, Stockholm had of competition had to be addressed connected, as well as elderly care more telephones than London or Paris. The idea was simple. The City of because in the inner parts of the city there institutions and daycare centres. The phone had become an enduring Stockholm raised the finance and was room for two or three operators. national pastime. It’s an obsession that incorporated a vehicle (AB Stokab – the This future-proofed infrastructure was has certainly paid off: in 1910, when the name is not an abbreviation or anything, In addition to practical considerations, we financed by the city, the expenditure wife of inventor Lars Magnus Ericsson first simply the title of the company), to cable chose the public investment route because justified by the benefits of having a public bought a car, her husband insisted on the city. This meant turning our backs on we realised that we could use the network access network. These benefits have fallen taking his phone with him on every short-term revenues – making a quick as a tool in raising the profile of the city. principally into the areas of education and journey. They solved the problem of buck by effectively selling the right to dig Our international marketing position is training, information services and connecting to the exchange with fishing up the roads – and embracing long-term that Stockholm is a good place to invest telecommuting. rods. When Lars felt a compulsion to make investment. Just as the civil authority is in. This is an indirect financial benefit for a call, Hilda would park the car under the responsible for the roads but not for the the city: Stokab itself is not a revenue The networked school nearest telegraph pole and wave the rods traffic, so Stokab is responsible for source. Although it does make a small in the air, hooking the wires onto the providing dark fibre (ie fibre-optic cable profit, this is not the objective. Indeed, the Stockholm has good-quality upper overhead lines. The rest, as they say, without the light signalling component), city is a customer and pays for network secondary schools. 41% of children in is history... without dictating the use it is put to. capacity just like everybody else. Stockholm have one parent that comes from another country – and even with this This story perfectly illustrates another There are now 68 customers or operators By 1997 the city had become a market high level of immigration the schools are national trait: a desire not to adopt the that lease capacity from Stokab. We leader and a decision was made to break successful. In fact, 70% of 16-19 year olds conventional solution, but to implement reached break-even in three to four years. up the city into 24 districts (although this are satisfied with their education and will practical strategies that actually work. In It’s a lot easier to buy capacity from number has now fallen to 18). Each recommend the programme they are 1993, Stockholm became the first Stokab than it is to start from scratch. And 36 37 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 36

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studying to other pupils. A recent OECD teaching are different, the approach of the everyone may welcome a reduction in survey highlighted the success of the teacher has had to change – and that’s The political objective behind e- paperwork, new systems involve process system, with 91% of the population not an easy task. We had begun an learning is not to increase or re-engineering and can be seen as achieving the equivalent of 5 GCSEs at extensive teacher training programme in decrease the number of staff, but reducing face-to-face contact. grades A-C (placing the country’s new media studies as far back as 1985, to raise the status of working in educational system ahead of the USA and using city- and government-funded the public sector; attracting the As a result, 2bn krona have been set aside every European country except Norway). education programmes. We discovered right people and developing the for training local government staff and an There is a private system as well – 13% of that there was no substitute for practical right skills important part of the fund is to use IT as a schools are independent, but the students experience: teachers need to experience tool to develop e-learning. The political are paid for by the state, and every the value of the net in their own subjects objective behind e-learning is not to independent school must use the national so they can see what’s possible both for increase or decrease the number of staff, curriculum. themselves and their students. taken these courses. Your work is graded but to raise the status of working in the remotely by a qualified teacher via email. public sector; attracting the right people Stockholm has been working for many Some teachers are understandably nervous An additional benefit is that distance and developing the right skills. We want years trying to provide all schools with about IT, but once critical mass is achieved learning can be made available to be an attractive alternative to the network and computers. The programme the late arrivals start hurrying to catch up. internationally: we have Swedes using the private sector – and by having well-trained has been running since 2000; all schools We now have teachers in different schools service all over the world. personnel we increase the status of public are now connected and the focus is on exchanging lesson plans with each other sector employees. older students – 16-19-year-olds. Students and cooperating in other ways. Improving public service now have much greater individual choice The business case of study topics. The traditional classroom It’s not just teachers that benefit, either. Distance learning and lifelong education with a teacher lecturing to assembled School administrators can now extends into the workplace as well. It’s not Of course, the city is involved in the school students is on the way out as greater use communicate much more effectively with just about taking a course in English or budgets – how much they spend and their is made of broadband internet resources. parents. Initial feedback seems to suggest German: it can be about developing new results – and there are procedures laid that parents are particularly concerned to skills and changing jobs. This is an area down that need to be followed, but in the For example, a student interested in get information about homework, food, where we still have a lot to learn, but we development of the education network history would traditionally have picked up tests (pass and fail) and what the teachers are looking at ways of briefing staff on there was not always a formal business a book, read five or ten pages on World are like, so we’re developing programmes new working practice, legislation and analysis. We were not asked what the War II and then looked for another book to share this information as part of an other issues, as well as simply making alternatives were or could be. We didn’t to consult on another related subject. A overall strategy to improve communication materials available for sharing and re-use have to submit a formal business plan in library search involved not only locating between school and home. This is by small, widely distributed groups. every case and we didn’t necessarily know volumes, but scanning the indices and particularly useful now that parents how much things would cost. However, reviewing the content before building a choose the school they want the child to Up until recently, most of our investment the city district budget set aside 200m reading list. Today, you can use the web attend; getting to know more about the has been in providing services to the krona per year to start with (recently and find many different resources for the school in question is very important. general public. However, it is clear that our reduced to 80m), an allocation which topics you are particularly interested in, own internal training methods are reflected general agreement that pump easily building a reference library of books Another established project centres on inefficient and we’d like to introduce priming was necessary for growth. The and articles that enable you to approach distance learning. Mature students – or computer-assisted training for the 45,000 central education authority has a specific the topic from many different angles. You those who don’t want to come to school – employees who work for the state. To do budget earmarked for computers and can even find people who were living can find up to 25 courses on the web. This this, we have to re-educate our staff to software and each individual school has its during World War II and discuss the war has been particularly important for adults find and use material online. We also need own budget as well. with them in person. who failed in their earlier years. Initially it new authoring and publishing tools to was difficult persuading people to sign up, adapt core material for use by many Of course, now that the methods of but several hundred adults have now different groups. It’s not easy: while

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It’s therefore very difficult to assess the decided it is not secure. And on the topic A more specific M-City case study involves exact expenditure on e-learning. It’s of security, we have a PKI (Public Key People often work from home one a small daycare unit for the elderly. It has equally impossible to establish the Infrastructure) project in progress and or two days a week and between 10 and 15 workers and one measure of the benefits. Our attitude is expect this to be rolled out in 2004. Stockholm has invested in laying manager. The workers are elderly that this is a question of democratic right, fibre out to the many tiny islands themselves and often unable to work – the rather than a profit and loss account. The Telecommuting to move companies away from manager would have days when five out programme extends from the very young of ten of her team were sick. On these the city centre to the very old. It helps the disadvantaged Sweden’s island geography makes days she had to spend two hours a day as well as the physically and mentally telecommuting more attractive here than phoning other people to fill the slots in handicapped. One young man pointed out it might be in other countries. People the complicated schedule. The M-City to me recently that ‘although I may often work from home one or two days a What’s next in Stockholm? programme enables her to send a group struggle to write my email, no-one who week and Stockholm has invested in laying SMS to everyone who wants to work that receives it knows that I took seven hours day and the first person who calls in gets fibre out to the many tiny islands to move We have a new project called M-city, a to write it. For the first time in my life, the work. She now spends only five companies away from the city centre. We generic title for services accessed by I am an equal.’ Can you put a value minutes a day on this task, saving 40 had another agenda here: wiring the mobile phone. The city sees 3G as having on that? hours a month. islands reduces traffic flow into the city, a role in creating public services, providing easing congestion. Call centres, cab and better administration for services related e-democracy taxi firms, and others now work from the to the care of the elderly and fast-tracking We’re already seeing the benefits of the islands, and managers are growing the registration of students in schools. M-city programme. Inward investment If you’re going to exercise your vote accustomed to the idea. If it’s a sunny day, from the IT sector is increasing and at the time that this article went to press, ten IT correctly, you need the information to then a work team can sit in a warm spot M-City connections could be through fibre companies had relocated to Stockholm in make a decision. 10m krona has been set outside; never mind their location – only or wireless – 3G or wireless LAN (and in the preceding six-month period. Our aside for e-democracy projects. We have their output matters. Stockholm they are complementary). infrastructure makes it possible for us to tried to put as much as we can on the Wireless LAN enables operators to create be a test-bed for services and we can open web, providing information and at the Information online hot spots within the city – there is already up marketing opportunities at many same time helping to demystify the a huge hot-spot at the university campus different levels, contributing to the critical political process. In addition to the information services and another in the city centre. already referred to, there are two other mass of demand that the markets require. All this has helped enormously in For example, Kista is often referred to as areas of application that have been For schools, pupil check-in each day is a marketing the city as a place to live Sweden’s ‘Science-City’. There are over particularly useful. The first relates to heavy administrative burden for every and work. 700 technology companies based there, job-hunting. We have seen a great deal teacher. Our aim is to link this process employing 65,000 members of the local of development in this field and all job with feedback to parents, using SMS. Looking ahead population. Forthcoming votes in the city searches are computerised and published We can text them to tell them if the council are now published online a month online at a national level. This makes it child is not at school. We can also use ahead, together with an application that much easier for us to support and monitor GPS in the phone to pinpoint a child’s Issues ahead of us include how we can get allows people to chat with and email employment services. location for both teachers and parents. rich educational content into the home. politicians. We also made sure that people Over a certain age every child in Sweden We believe that users will want more could view the debate on the web via a Finally, we’ve made a considerable has a mobile phone, so the system has a games, more movies and hopefully more live video link. investment in our transport system. lot going for it. And in higher education, of a say in how they are governed. All Thanks to investment by the city, we students can receive SMS notification of these things come from dialogue between Stockholm is also working with the Cyber can now publish real-time online cancelled lectures and other last-minute people and government. Vote EU project (www.eucybervote.org), information about traffic jams and other programme changes. but currently we do not plan to use it in transport issues, reporting both local and • We have our fibre network; now all we the next election. The Government has national conditions. need are more ideas for applications.

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With this in mind, the Stockholm Challenge Award was developed to e-learning – connect with other cities. The Challenge the lessons we learned! Award is a competition for user-driven application development. New ideas Here are the five most important have to be innovative, user-friendly and lessons we learned in deploying must show a clear social benefit. We our e-learning programmes: now have a database of 4,000 ideas. In the end, we believe that investment in • Efficient technical support is our own city has not only brought crucial. Frustration with benefits to Stockholm, but will also technical problems involving bring benefits to the world. the computer, the network or the switches is completely unacceptable

The Stockholm archive • There must be enough capacity. If the net is down it kills interest Our latest municipal project is about the city itself. We’ve built an online • Support in learning is necessary archive of historical views onto the network so that students can see • Try to arrange network structures what it would have been like to live that bring teachers together in Stockholm 100 years ago – not only what the environment looked like, • Remember that it’s not going to but also how people lived and worked. be easy! Never downplay the challenges involved This project has shown the benefits of inter-departmental collaboration: the city archive, administration and libraries are all working together to see how schools and citizens can interact with the past. One archive project went back to the 13th and 14th centuries, focusing on a single district of the city. The knowledge base is derived from historical, political and social archives and one of the main objectives is that it should encourage a sense of belonging among those living in the city. It’s also timely: the city celebrated its 750th anniversary in 2002, an event that helped to raise interest in the project and vice versa.

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Milan

Silvio Scaglia, Chairman of e.Biscom, Milan

ilan, city of La Scala and Da company has achieved this by maintaining proportion of high-rise buildings, IP to cut costs Vinci’s Last Supper, sits at the a strong cable presence and concentrating both domestic and business centre of northern Italy’s road simultaneously beating the telco sector at demand for services into a single address. From the beginning, e.Biscom’s service M and rail networks, straddling its own game by rolling out a DSL service We were aware that AEM, the local utility, was based on pure IP (Internet Protocol). lines of communication between east and that is not only three times faster than the had already developed an infrastructure There would be no voice switches, no west. For Europeans travelling overland, main competitor but has succeeded in of ducts for fibre optic cables, which had cables, no boxes. Milan’s micro-markets Milan is the gateway to Italy. more than doubling subscription levels in not been completed. We reasoned that, can be served by an IP switch or router 12 months to 249,000 customers (with an since the average number of residential for a fixed cost; the costs then decrease Its dominant position in the physical ARPU of over $900). This growth has clients is 16 per building, the critical as take-up in the same building, or network infrastructure of the country is continued in the context of strong parameter would be the adoption rate cluster of buildings, increases. Given mirrored by dominance in networks of a national demand; Italy as a whole saw in these high-rise buildings. Since each that penetration is now 20-25% different kind. A fortuitous combination of over 525,000 new DSL lines taken up in presented a micro-market demanding of areas covered by the service and that entrepreneurial daring, good fortune and the first six months of 2003. anything from VOD and entertainment an average of four clients per building will technological innovation has put Milan at through broadband voice and data be connected, the company forecasts a the forefront of Italy’s broadband Template for a networked city services to traditional home internet return of the initial investment in just over revolution, helping to push the country service provision, e.Biscom set its sights two-and-a-half years, reaching break-even into the world’s top-performing DSL and Although e.Biscom operates in the main on a diverse offering. in 2005. fibre-optic broadband performers. metropolitan areas of Italy and further afield, Milan was the cradle of the When you have a single provider in this IP gave e.Biscom this competitive Fibre-optic came first. In 1999, our operation. This was not just for context, it can have a dramatic effect advantage over other telecoms companies, company e.Biscom rode the internet wave geographical reasons, but also because on people’s lives. You live and work locally but there is another benefit for Milan. The with the largest private-sector IPO in of Milan’s unique characteristics as a and time is of the essence. Your provider company uses IP to facilitate the Italian history, raising 1.6bn euros in a city and community. offers VOD, so you don’t have integrated management of voice, data and float that valued the company at 7.3bn to wander the streets in search of a title video using a packet-switched network euros. The cash was earmarked for a First, the city has a vibrant creative to rent or buy. The same provider running over fibre-optic cable. This gives courageous rollout of 2,500 kilometres of industry that drives an economy based cables up your business, provides your the Milan operation two advantages – new optical fibre, offering business and around design, fashion, media and IT R&D. digital TV service and helps you call your practically unlimited bandwidth and consumer broadband cable services. The We set up e.Biscom knowing that Italy mother. This makes for ease of use that maximum efficiency of its investments in only threat came – as it has done already had the highest proportion in attracts creative companies; while the infrastructure. The fibre-optic IP network elsewhere – from the telco sector and Europe of SMEs (Small and Medium performance advantage helps to grow has enabled e.Biscom to integrate its deployment of cheaper but slower Enterprises). These thrive in small offices innovative operations. previously separate functions and develop DSL technology. and home offices and are often in innovative, value-added services, which the same multi-storey buildings as can be used simultaneously over a single Over three years later, e.Biscom has residential customers. connection that suit perfectly the physical emerged from the IT downturn with rising structure and creative drive of sales and a burgeoning stock price. The Second, Milan is characterised by a high 44 45 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 44

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Silvio Scaglia, Chairman of e.Biscom, Milan

Milan Milan

the Milanese community and its Content companies, however, are growing communication and links between workplaces. We can offer entertainment, increasingly aware of the gate-keeping Fast Web technology supports geographically distant schools. commercial services such as video role played by local network providers. audio/video links between remote conferencing, and other high-bandwidth This probably helped e.BisMedia to sign government agencies, public There are also numerous applications in applications that would not be possible agreements with leading content bodies, schools and hospitals to tele-healthcare and e-health. Remote over a standard DSL offering (generally producers such as Universal Studios, permit significant enhancements medical consultations, healthcare services, three or more times slower). 20th Century Fox, Dreamworks, Discovery in the quality of public services as transmission of patient records, samples Channel, BBC, MTV/Nickelodeon, United well as cost-effectiveness and x-rays are all possible without getting Entertainment as business driver Features, as well as complete channel out onto the road. Another growing area offerings from companies including CNN is remote security: the ability to monitor Entertainment services such as VOD and and Cartoon Network. These companies your office, shop or studio from another digital TV are not only profit-centres in see innovative distribution (and VOD over its residential customers in Milan, Rome, location using high-definition CCTV. their own right: they also carry a branding IP can be an especially powerful Genoa, Turin, Naples and Bologna. advantage that demystifies the technology combination), as a means of building The business model and partnerships/JVs service, drawing in the individual who positive brand associations as well as The technological features of the new we pioneered in Milan are all based on in turn brings commercial custom in generating additional revenue. service and its applications in public, new technology, which makes investment his wake. private, social and business environments more efficient than traditional approaches. Entry into the digital broadcast market make it easier to manage or establish in The city itself – its historic, physical Cable TV combined with VOD and means brushing up against new statutory businesses in Milan. TV-quality video infrastructure – helped to create this broadband internet (itself a rapidly bodies and legislation. In Italy, the merger conferencing is a world away from the technology for the vital triple play of growing entertainment medium) is a between TELE+ and Stream into the new more familiar narrow/mid-band variety telecoms-entertainment-internet, which compelling offer. Technology companies satellite pay-TV platform Sky Italia, and the and is a strong competitor to established we’ve driven to profit by maintaining cannot change their spots entirely, consequent ruling of the EU Antitrust satellite linking technologies. Subscribers service, visibility and branding in each however, and e.Biscom’s successful Commission, means that e.Biscom will be need only a TV, touch-tone telephone of the consumer and business sectors. strategy was initially to build Joint able to complete its television offer with (cordless, for preference) and a small Within those sectors, we maintain strong Ventures (JVs) with established operations. live Serie A and Serie B soccer matches, FastWeb TVcam video camera placed on focus and maximise market share. The starting from September 2003. On the top of or next to the TV. The simplicity investment is very high, but the returns that arises out of service integration is Rai Click, for example, is a JV between basis of the European Commission’s are there and our quarterly returns are immediately obvious: to make a video call e.BisMedia (a wholly-owned e.Biscom decision, the premium content of the new demonstrating that we’re meeting you simply press the asterisk key before content provider) and RAI, the Italian State single platform Sky Italia (mainly Serie A the challenge. keying the phone number. owned broadcaster. This JV provides on- and Serie B football matches, sports demand content on a commercial basis, events and movies) will be purchasable by FastWeb: triple play to home with over 2,500 videos available through non-satellite competitors at a ‘retail minus’ Apart from opening up new opportunities and business TV and Web. Rai Click also supplies access price; that is, the price offered to the final for person-to-person, videocoms can be on a PC via ADSL (and, in the case of client reduced by a percentage. used for a host of applications in the FastWeb was originally a partnership with FastWeb – e.Biscom’s operating company public sector. FastWeb technology existing local municipal utility provider – customers (see panel) on television), to The power of telepresence supports audio/video links between AEM. In 2003 e.Biscom acquired AEM’s RAI’s current and archival programming of remote government agencies, public stake in the company and since then we films, fiction, TV shows, classical music, Video networking provides another bodies, schools and hospitals to permit have driven the operation into a period of concerts and theatre. The customer can example of how IP over fibre optic can significant enhancements in the quality of rapidly increased growth and profitability, choose between a fixed-fee subscription generate new applications. e.Biscom’s public services as well as improved cost- reporting an EBITDA of 40.1m euros in the and a pay-per-view option. broadband telecoms operator FastWeb effectiveness. Application opportunities six months to June 2003 compared to launched a videocoms service in the third include tele-education and e-learning 5.5m euros in the first half of 2002. quarter of 2002, making it available to all (extra lessons from home), parent-teacher

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FastWeb provides voice, broadband Click titles on-demand. There’s also internet connectivity, data transmission an EPG (Electronic Programme and video services in all existing formats: Guide) and a virtual network video broadcast (ie traditional free-to-air TV), recording system (VideoRec) which multicast (ie pay TV and pay-per-view) and allows the recording of programmes unicast (ie video-on-demand and full without the use of videotapes or interactive TV). Access to the end-user is VCRs. FastWeb TV is provided over provided directly through fibre optics its network without the need of (with Fibre-to-the-Home/Fibre-to-the- antennas, satellite dishes or Office solutions), or through xDSL decoders technology over unbundled lines. • Wi-Fi – this service allows customers to take full advantage of FastWeb’s The technological solution and the fibre- bandwidth, surfing the net rapidly optic infrastructure support much faster from any point at home without access speeds than those currently having to install additional cabling available on the market: up to 10 Mbit/s upstream and downstream for residential There are many business applications on customers and virtually unlimited speeds offer, but the most requested services for business subscribers. Also, the use of include VPN (Virtual Private Networks) and the IP protocol has allowed the Business to Employee (B2E) services. development of a DSL service in cities FastWeb offers connectivity between where the fibre-optic network is still being different branches at speeds of up to 1 rolled out, thus enabling advanced Gb/s, and from employees’ premises to the telecommunication services, at reception corporate LAN at speeds of at least 2 Mb/s speeds of up to 4 Mbit/s and transmission on FastWeb’s network, with no need for speeds of up to 0.512 Mbit/s, much faster dedicated links. than those delivered by other DSL operators in Italy. Business users can also benefit from video-conferencing systems, web hosting As well as providing faster access (including audio-visual streaming services), compared to the competition, FastWeb is and a number of bandwidth solutions constantly focused on the development of from bandwidth-on-demand to SDH high new value added services. The residential capacity lines at speeds of up 155Mb/s. offer, on top of voice and broadband internet services, includes:

• Videocommunications via the TV set • FastWeb TV – this service allows subscribers to access the main Italian broadcast TV channels in digital format, plus a selection of satellite channels and a video-on- demand service. The latter offers more than 3,000 e.BisMedia and Rai

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Wroclaw

Slawomir Najnigier, Deputy Mayor of Wroclaw

y city Wroclaw is in Poland, who fail to adapt to the data revolution largest local communication system owned 56% by the city and the first the capital of Lower Silesia, will be eliminated from the game. (TETRA) in the country. At present TETRA is heating company quoted on the Warsaw with a history going back over set to become the national standard for Stock Exchange) is responsible for M 1,000 years. Following the Programmes alone are not enough: you municipal and police services. The providing heating to 60% of the collapse of communism in 1989, Wroclaw also need the skills. Wroclaw has them. authorities in Wroclaw were also the first apartments in Wroclaw. Following the has been making up for lost time. External Not only are our academic standards well- in Poland to initiate the launch of a disastrous floods of 1997, MPEC Wroclaw investment has multiplied enormously: in known throughout Poland and elsewhere, broadband multimedia network (described S.A. had to restore and re-engineer parts 1989, there were only 17 companies with we also have a fund of new ideas, which in more detail below). Broadband service of the system and, with typical local a foreign capital base: now there are local entrepreneurs (there are around 400 infrastructures will soon, we believe, be an ingenuity and enterprise, decided to use the cables (used for system monitoring) to almost 2300. IT companies in Wroclaw) are quick to put everyday feature of city life, just like water provide broadband services. into practise. and sewage systems. The country is politically stable, has several industry sectors ranked in the A local consulting firm provided the Broadband infrastructure has been put Finally, self-promotion. We’ve found that top five in European economic tables, expertise needed for building, integrating into place, largely because the Wroclaw new media distribution is the cheapest enjoys an international reputation for regional authority itself has, with over 350 and commissioning the network, which and most effective. Our website innovation and has established new departments and nearly 20,000 staff, an went live in March 2003. The services, (www.wroclaw.pl) is the most popular benchmarks in several IT areas. urgent need for it. No surprise, then, that including permanent and fast internet municipal site in Poland, with around Fashionable and popular, Wroclaw the e-Wroclaw programme is principally access, are affordable at around 250,000 visitors per month, including enjoys growing international recognition. concerned with municipal operations and 12.5 euros per month and between July 15% from abroad. management. Initiatives range from the and October 2003 contracts were signed All these advances have taken place construction of e-Administration, with over 3,100 customers (out of 7,000 against a background of increasing e-Education, e-Transport, and e-Security E-Wro Municipal Data Network homes wired). We plan to extend the E- connectivity, driven by targeted platforms, to providing support to local Wro network to approximately 40,000 programmes, a strong skills base, the business (e-Services). Local government Our flagship project is undoubtedly the flats by 2005. provision of a broadband infrastructure cannot, of course, provide the answers (or E-Wro Municipal Data Network. On its and assiduous promotion. the services) which rightly come from the own initiative, the city launched a state-of- What makes this project extraordinary is independent sector – nor can it provide all the-art municipal infrastructure project that it’s comparable with similar projects with the objective of building a First, the programmes. ‘e-Wroclaw – City the capital that that sector requires – but taking place in the best-developed broadband multimedia network (METRO of the Future’ is part of the Wroclaw it can provide support and help to speed countries of the world. We may be only or MAN). Economic Development Support things along. the fourth largest city in Poland, but we Programme and is a good indicator of our have always been an important economic, objectives. The slogan ‘City of the Future’ Hence the provision of broadband E-Wro is a good example of local academic and cultural centre. Wroclaw highlights our belief that state-of-the-art infrastructure, without which none of drive and ingenuity. Miejskie needs to compete with other cities and it’s Przedsilbiorstwo Energetyki Cieplnej data technologies have a direct impact these initiatives could be put into practice. pleasing to realise that, in many places, Wroclaw S.A. (MPEC Wroclaw S.A., projects like this are still confined to the upon local economic development. Those The city has financed the building of the

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Slawomir Najnigier, Deputy Mayor of Wroclaw

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drawing board. E-Wro was innovative, Non-commercial projects are not ignored. multimedia promotion is just one turned a natural disaster to our advantage The City of Wroclaw actively researches E-Wro is a project on a truly recent example. and, most important of all, was entirely the possibilities of securing – and European scale, watched with conceived and carried out by the canvasses for – EU funding for deserving interest by our colleagues I said at the start of this essay that we are local community. causes. We have been using these funds throughout the international building an international reputation and, for years for expanding the road and community again, the E-Wro network is a great E-Wro is not just about shuttling data sewage system – we now apply our example – a project on a truly European experience in raising such finance to the back and forth. We now have evidence to scale, watched with interest by our funding of IT projects. support the theory that data colleagues throughout the international government departments can get carried infrastructures act as catalysts for new community and matched by very few applications. Schools located in the E-Wro We further believe that private, away by new internal applications, initiatives elsewhere. I’m convinced that catchment area, for example, are using the commercial and public-sector projects forgetting the true end-user – the citizen. the developments taking place in Wroclaw service to create e-mail accounts and web- should not be carried out in isolation. In the third quarter of 2003, Poland began are a taste of the future: witness the level sites, as well as to swap information and For example, by developing the the task of introducing legislation to of attention paid to the city and the E-Wro set up local networks. We expect most of e-Administration programme, the city not enable and promote online services to project in particular. Other cities in Poland Wroclaw’s 300 schools and educational only provides new services, but also ease the administrative burden on the are eager to benefit from our experience institutions to be connected to the reduces the business risk of the METRO public. Without such appropriate and plan similar investments - and what network by the end of 2003. network by acting as a consumer. It works legislation, we could waste the entire better example than a good plan, the other way too – the company potential of IT. It’s a myth that the public successfully implemented? We can only Another example can be found in developing the network indirectly enables is indifferent: most inhabitants of Wroclaw hope that the number of connected cities neighbourhood security. Wroclaw has a many non-commercial schemes. The are behind us on this and, wherever the E- will grow steadily in future. TETRA-based communication system, burden of developing IT is therefore Wro network offers free line installation which provides the foundations for the spread between different organisations (with no obligation to sign a service e-Security Programme, but it was the and sectors. The benefits are shared by all. provision contract immediately), over 80% Finally, I am delighted that you have broadband infrastructure that made it of inhabitants place an order. The demand taken the time to read about what possible to install a CCTV camera network One thing is paramount: the E-Wro is proven. we’ve been up to and for giving me this to monitor housing estates. Without network has to follow the market and opportunity to present our town. I invite access to a network such as E-Wro, bow to market forces. Its primary task is you to Wroclaw – a City of the Future. Wroclaw plays an active role in regional projects of this kind would have been not to meet the requirements of education And, if you cannot visit us in the flesh, development, so these projects are having prohibitively expensive. and administration, but to provide you can always pay us a virtual visit an impact way beyond the boundaries of commercial broadband services to over the internet! Wroclaw City limits. Early 2004 should see Projects in Wroclaw use a range of Wroclaw residents. Before the network the launch of the Wroclaw Technology different financial models to get was built, we studied and developed Park (with the city as principal Important addresses: off the ground. Some projects, like careful business plans. It’s a little early to shareholder), while the Wroclaw e-Administration, e-School or e-Transport speak of a commercial success – as I have Technology Transfer Centre is active at City of Wroclaw: www.wroclaw.pl are financed by the city and, in some already explained, the local authorities Wroclaw Technical University. Institutions cases, from European Union grants. In have not spent a single zloty on the MPEC S.A.: www.mpec.wroc.pl these cases, the City has direct status and project – but it's just as important for us such as these, as well as other colleges, influence. Other projects, including the to see that the services are being used. chambers of commerce and industrial Miejskie Sieci Informatyczne ‘e-wro’: E-Wro network, involve the independent Take-up of the services has already bodies are invited to sit on the Board of www.e-wro.pl sector. So far the implementation of this exceeded our original projections. the e-Wroclaw Programme. It’s a prime broadband network has not cost the city board objective to ensure that innovations ‘E-Wro’ operator: www.dcg.pl a single zloty. Computer-based administration platforms are propagated throughout the region; can be rather incestuous affairs; a regional conference devoted to online

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Manchester

Dave Carter, Director of Manchester Digital Development Agency

he success of modern Manchester of world trade in textiles, and from this challenges where traditional approaches increasing the number of people living is founded on a long and proud base in textile manufacture and trade the to urban regeneration will not necessarily in the city centre from 600 in 1989 to history. Manchester was the first economy diversified into engineering, ensure sustainable economic growth or more than 6,000 in 2000, with T city of the Industrial Revolution – chemicals, publishing, legal services and that social exclusion can be tackled associated leisure facilities the first city in the world to experience the banking. These are still the cornerstones of effectively. Alongside a continued • Business tourism: with new hotels and shock of rapid industrialisation. Within the the regional economy, together with the commitment to physical regeneration, a new international exhibition and space of little more than a century, it grew fastest-growing internet and new media and the development of the new conference centre from a small mercantile centre to become sector in the UK outside of London. infrastructures required for the knowledge • Cultural facilities: the opening of the the second largest city in England, with a During this period of wealth creation the economy and the information society, new new international concert hall – the global recognition of its ‘Made in foundations of the city’s traditions and approaches need to be developed to Bridgewater Hall, the City Art Gallery Manchester’ brand. The cradle of the institutions were laid. In education, connect opportunities with needs and Extension and the renovation of the Industrial Revolution, it remains a Manchester has the largest student re-engage excluded communities with Royal Exchange Theatre breeding ground for innovation and campus in the UK, with 60,000 students economic and civic life. • Our Sports City initiative where, enterprise. and three universities within one kilometre in 2002, Manchester hosted the of the city centre; in health, teaching In response to this situation, the city is Commonwealth Games with a Manchester was founded as a Roman hospitals and research institutes; and in pursuing parallel economic strategies. The new national stadium, new settlement and was a historic commercial transport, it has the world’s first city has seized the opportunity to national Velodrome and and trading centre for 400 years before passenger railway and now one of the strengthen its position as the regional Swimming Centre the Industrial Revolution. It has a proud world's top-ten airports. The foundations capital of the North-West of England with international history dating back to the of the city’s cultural life were also laid new investment, including: The primary objective is to ensure that settlement of Flemish weavers in the city with Manchester having England’s first there is real benefit provided to local in the 14th century, through Manchester public library, the first professional • Transport infrastructure: with the communities while, at the same time, merchants playing an active role in the orchestra, the first repertory theatre continuing expansion of Manchester assisting the city to emerge as a key Hanseatic League, to its role as an company and a series of historic museums Airport and the extension of the new European Regional Centre which is able to international centre for political and and art galleries. Metrolink tram system attract and deliver investment and major economic thought in the 19th century, • City-centre regeneration, particularly sporting and cultural events. The City hosting both Adam Smith and Karl Marx. A new strategy for Manchester as following the impact of the terrorist Council has taken the lead in channelling By the middle of the 20th century, a post-industrial city bomb in June 1996 which destroyed resources towards area regeneration and Manchester had already provided the part of the centre, and the local benefit strategies. These aim to world with the first steam engine and The challenge for Manchester now is to development of a new retail core develop sustainable local economic passenger railway system, split the atom combine sustainable economic growth including the world’s largest Marks & communities linked into the opportunities and started the IT revolution with the with the delivery of real local benefits to Spencer store provided by the regional centre. We also invention of the first computer with a the city’s residents, in terms of • New residential developments, both in need to be able to identify areas for stored programme. employment and quality of life. The the city centre itself and at the potential economic growth which will impact of globalisation and the new Castlefield industrial canal site, contribute positively to local employment At its height, Manchester controlled 80% knowledge-based economy presents new 54 55 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 54

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Dave Carter, Director of Manchester Digital Development Agency

Manchester Manchester

opportunities and to social inclusion. It is There are also other challenges to face up industrial pollution regionally and Manchester has a significant and growing here that ‘new’ industries, such as the arts to in terms of achieving our vision. Some nationally in the UK, let alone the rest of level of employment in film, media, music, and cultural industries and the are practical and not all are in our control. the world, is a massive task in itself and authorship, architecture and design and in internet/New Media sector may have an We are, for example, in European terms will create many jobs. internet services. The largest enterprises important role to play in the structure of for example, a peripheral region and, are mainly in the field of television and the economy of the 21st century. because of this, transport links with the Manchester will be concentrating on publishing. The most significant of these is rest of the world are a key priority. This is creativity, innovation and technology but Granada TV, which is the UK’s largest Manchester's vision for the future partly why the airport is of such strategic we recognise that so too will many other private sector television company and part importance but also why the upgrading of cities and regions in similar positions all of a large global enterprise. Manchester is Manchester’s vision for the future, as rail links is essential to our future. over the world. This means that while the only regional city with a role in expressed in its ‘City Pride’ Prospectus, is Manchester Airport has 95 airlines serving Manchester continues to highlight its national newspaper publication. Since the to be a European regional capital – centre 175 destinations and employs, directly and particular strengths, building upon 1950s’ Manchester has been at the for investment growth, rather than indirectly, over 50,000 people. It continues textiles, computers, broadcasting, forefront of British pop and dance music, regional aid, and an international city of to grow, serving over 18 million publishing and football, it is now looking ranging nowadays from the commercial outstanding commercial, cultural and passengers a year since the second runway forward to the new entrepreneurial spirit success of local bands like Simply Red and creative potential. The city will be an area opened in February 2001 and with coming from the creative and cultural Oasis to the dynamic underground dance distinguished by the quality of life and predicted sectors, from its local universities and from scene that has sent Manchester-made sense of wellbeing enjoyed by its growth to over 40 million passengers in the new enterprise partnerships that the music and DJs across the world. residents, where all will have the the next 15 years. City Council is helping to facilitate. opportunity to participate in and benefit These new growth sectors are in the from the investment and development of Sustaining economic growth and Manchester as a creative city position of maintaining their local position their city and, therefore, live in truly connecting the new opportunities thus and competing for access into global sustainable communities. created with the needs of local people, There is a strong tradition of creativity, economies. The fastest growth is being many of whom face poverty and social pioneering and invention in Manchester. seen in the design-based sectors (fashion, Our aims and objectives also characterise exclusion, underpins all aspects of the This creativity is taking new forms and is buildings and products), which are less what has become an increasingly city’s regeneration strategy. One of the part of the experience of Manchester dominated by large enterprises because sophisticated role played by the City biggest causes of poverty is today: the conversion of redundant small businesses are more able to access Council. We continue to be a major unemployment and low-wage warehouses by innovative property global market opportunities directly. deliverer of services; and as an employment, and that is why job creation developers and local architects into Recent research in the city has confirmed organisation employing over 20,000 is such a high priority. Where will the jobs accommodation for design, software and that employment in the cultural industries people, with gross expenditure of some of the future be? Some traditional sectors, multimedia companies; the clubs where in Manchester is significant and that it £1.4 billion, a significant player in the like construction, are key, while others, like many of the UK’s leading music groups promises future growth. This is why we local economy. Increasingly, however, our textiles, chemicals and engineering, will have emerged; the café bars and are trying to create one of the world’s role has become that of coordinator and remain significant. But jobs that have been restaurants fitted out by young designers. leading ‘post-industrial’ sustainable cities, facilitator; that of bringing together lost from manufacturing in these sectors Manchester is a seedbed of youth based on the new technologies and different public-sector organisations and are not likely to be replaced. Quantum- enterprise and creativity. The presence of industries of the future. Manchester is, not ensuring that they deliver services inspired electronic devices, convergent the universities is a major influence, and it for the first time, reinventing itself. together in an integrated way, linking media technologies, nanotechnology, is essential that the city should not only them with the communities they serve. biotechnology and other innovation-led attract students but also provide Central to this is the need to accelerate The City Council also aims to provide developments can create a very opportunities for them to remain. Cultural the transition to a knowledge-based leadership to develop shared visions and considerable number of jobs. Similarly, the industries are important in their own right; economy by stimulating creativity and the public/private/community partnerships region’s strengths in environmental they are also a source of creative capital, innovation across the local and regional that are required to deliver them. management are another key asset. The of ideas and communication, which is so economy. We need to be at the forefront cleaning up of more than 100 years of vital to the future. of a cutting-edge digital culture, based on

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innovative business clusters and networks, City Council and the universities, which is e-commerce, e-government and which are uniquely capable of and the home for 50 companies employing Manchester is on the way to the internet/New Media sector in necessary for sustaining growth within the 700 people. This will double in size over achieving the successful transition Manchester – the national policy information society. In the UK, a recent the next three years. Added to this must from being the world’s first great context in the UK Government report highlighted ten critical be Manchester's growing internet and industrial city to one of the success factors for cluster development, e-business success, the most rapid growth world’s leading post-industrial The UK Government has set out its starting with the importance of a strong of any region outside London and the success stories ambition to make the UK the best place in science base and including an South-east, where we have the only the world for e-business and e-commerce. entrepreneurial culture, the ability to international Internet exchange outside At the same time it aims to make the UK a attract key staff, effective networking and London, called ‘TeleCity’, which is also world leader in the electronic delivery of a supportive policy environment. based on the Science Park. Manchester City region with its own public services: e-government. All public government, at the heart of social and bodies, including local government, have Manchester making it – a Manchester’s first strategic report on new economic revival of the North-west, is also to ensure that 50% of services are networked city in a networked technologies and regeneration appeared in vital, as is the country’s first fully delivered electronically by 2003 and that global economy 1989 under the title of ‘Manchester – the integrated public transport system, 100% of services will be capable of being Information City’, and more recently we building on our successful and expanding delivered in this way by 2005. Four key The regeneration of Manchester is far have stressed Manchester’s focus both as Light Rapid Rail Transport System – challenges have been highlighted, which from complete, but much has been a ‘creative city’ and a ‘digital city’. What is Metrolink. Finally, we must ensure an need to be addressed before these achieved in the past ten years. This has now clear from our experience is that improved quality of life and environment ambitions can be fully realised. We must only been possible through the these capacities are interdependent, and in every part of the city. develop a world leading infrastructure imaginative and dynamic partnerships that that to be a successful creative city you with access for all, both in terms of the City Council has been able to establish must be a digital city and vice versa. This Manchester is on the way to achieving the business and the wider community, and with the private sector and the wider is why, in 1993, Manchester was one of six successful transition from being the ensure that the education and skill base is community. This idea of a networked city European cities that set up a new world’s first great industrial city to one of there to develop the workforce of the being essential for operating in the network, called TeleCities, which now has the world’s leading post-industrial success future. It’s also essential that we tackle the increasingly networked and global more than 150 cities involved in a trans- stories. Even then, the speed of economic ‘digital divide’, ensuring that the economy is central to our thinking. European network stretching from Iceland and social change will require that the city information society is fully inclusive and, and Ireland in the west to Russia and continually finds new forms of dynamic finally, that we create a business-friendly A partnership approach to economic Romania in the east. urban management to ensure that this environment for e-commerce and development is particularly important in success can be sustained. We believe that e-business to develop. building the foundation of the knowledge- Creating a sustainable future for only by adopting a holistic, creative and based industries of the future. They play a Manchester cooperative approach can we rise to the The UK Government has made strenuous leading role in incubating new businesses, challenge of the new global knowledge efforts to push forward the agenda with for example, where through the Campus The longterm vision for Manchester is economy and information society. We the appointment of e-Minister together Ventures agency, established as a based on achieving a thriving economy in need to ensure that what makes with a national e-envoy. All government partnership between the city and the three the industries of the future. To do this we Manchester an increasingly attractive place departments are now required to produce local universities, 50 new companies need the research and educational in which to live, study and work can be e-business strategies and to set clear employing 400 people have been facilities to keep us thriving and a sustained in ways that will continue to targets for the delivery of e-government established so far, with another 70 new population with the skills to maintain attract and develop creative talent, services. Priorities for local-national start-up businesses planning to spin out those industries. Key to this success is the noteworthy events and lasting Government cooperation include forging over the next year. growth of the city centre’s population, opportunities for the people who do and closer links between local authorities and from the current 6,000 to over 20,000, will make it their home. national government, increasing the use of Alongside this is the Manchester Science and the sound infrastructure to support e-commerce for public procurement and Park, another joint venture between the that population. The development of the business-to-business transactions including

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digital signatures, promoting e-democracy The future is here, so what information system, the Manchester Host, through improved Internet services for happens next? The city’s creative and with a not-for-profit company, Poptel. MPs and councillors, developing entrepeneurial spirit benefits from community-based networks and moving The city has recently established the the opportunities made available This partnership resulted in Manchester towards electronic voting. Manchester Digital Development Agency through new technologies being one of the first local authorities in to take forward new initiatives aimed at the UK to have an extensive website and Manchester – from information making Manchester a world-class digital the first to be an Internet Service Provider city to e-city city. By working with a wide range of (ISP) through its partnership with Poptel. At the Digital Development Agency’s 2003 partners in the universities, business and In 2000, a not-for-profit consortium led launch, there were representatives from Manchester has a number of important the voluntary sector, the Development by Poptel won the right to administer one community groups, businesses and the strengths as a leading location for Agency will ensure that projects of the new high-level domain names for universities, alongside web designers and internet/New Media investment, that across the city are coordinated and the internet on a global basis, with .coop. New Media developers. A specially made enable it to take a leading role in made sustainable. This means that Manchester, the original film for the event asked the question, e-business and e-government home of ‘The Co-op’, is now the home to ‘What’s the trouble with technology?’ developments. It has one of the best Whereas many of the drivers for the worldwide administration of the on- highlighting a determination to see infrastructures outside London in terms of e-government have come from the centre, line ‘.coop’ of the future. Poptel is still technology as an enabler, rather than as telecommunications and R&D networks – Manchester’s approach has always been the UK’s only employee-owned and an end in itself. A poem, written specially using the universities’ broadband supported by officers and representatives controlled ISP. for the event ended with the words: Metropolitan Area Network – ‘Net North at the local level, and, ultimately, this West’, with digital cable, ADSL and improves the chance of sustainability Manchester’s strategy is based on a ‘The future is here wireless broadband services. It has an through the ‘mainstreaming’ of services. commitment to encourage partnerships extensive enterprise and incubation So what happens next? across the city to provide the services When even your grandma network – the North west Incubation Manchester’s aim of making ICT accessible required to ensure that both businesses Sends you a text.’1 Partnership – coordinated by Campus to all does not stop with the internet as it and the wider community can take up the Ventures at the University of Manchester is now, but looks forward to the opportunities offered by the information In Manchester, at least, that is not likely to and linked into Manchester Science Park, development of new technologies society and the new internet/New Media be a rarity, but an everyday occurrence. and the new Manchester Science such as broadband and Wi-Fi and technologies. City Council supported Enterprise Centre, based at UMIST mobile communications. initiatives include: (Institute of Science and Technology). Networking Manchester Another strong point has been the By pulling together responsibility for the • Establishing local Electronic Village development of local community-based use of technology across business, Manchester City Council has a long- Halls, community access and learning initiatives such as the network of communities, education and local standing commitment to prioritising centres, where people can gain Electronic Village Halls (EVHs) and government, the city is building on its ICT information and communication confidence, overcome their community access centres together with legacy in ways that are innovative and technologies as a key part of its economic technophobia and learn new skills and the award-winning Manchester inclusive. Our experience has shown that regeneration strategy for the city. The City where small businesses can get ‘hands- Community Information Network (MCIN) businesses in the city require a skilled and Council recognised this more than ten on’ experience of IT and the internet and Innovation in Digital and Electronic technologically literate workforce, that years ago, when it carried out the first • The setting up of the Manchester Arts (IDEA), which is the largest online local government needs to use electronic major review of its economic development Community Information Network access learning initiative in the UK. Lastly, methods to engage directly with strategy in 1989. Manchester was the first (MCIN) in 1994, which has since all the partnership agencies supported by businesses and communities, and that the city in the UK to highlight this as a priority expanded to be one of the largest the City Council are committed to support city’s creative and entrepreneurial spirit in its Economic Development Strategy in online community networks in the UK, the further growth of the internet/New benefits from the opportunities made 1991. In the same year Manchester available over the internet (and soon Media and creative industry sectors available through new technologies. launched the UK’s first public-access via Digital TV) and through interactive as a priority. computer communications and information points in libraries, health

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centres, advice centres and community of the most dynamic contributors to the buildings across the city – it has also development of the information society in The Eastserve Project: wired up Through New Deal for Communities, just joined up with Radio Regen, Manchester are the three original EVHs – and ready to go2 over 140 regeneration projects are Manchester’s community radio training the Women’s EVH; Bangladesh House EVH, completed or under way, helping the agency to launch the first internet whose work involves excluded East Manchester is using new community get back on its feet. One of community radio station for the city communities from many different ethnic technology to turn its community into the most popular of these – taken up • Developing partnerships with the local minorities; and Chorlton Workshop EVH, one of the most computer-literate in by around half the households in the universities, particularly the Manchester based in one of the local churches, as well the country, helping to drive the area and with around 1,000 ‘hits’ a Metropolitan University (MMU), where as the trade union-based ‘Labour regeneration of the whole area. day – is Eastserve, an interactive a wide range of business support Telematics Centre’ and the digital arts website. services are provided through a linked pioneers who established new digital arts Raise your eyes above the rows and set of centres and projects including: initiatives across the city. rows of terraced houses that make up ‘Connecting’ the neighbourhoods of • The Manchester Technology many of the traditional streets of East Beswick, Clayton and Openshaw, Management Centre (MTMC) All of these groups demonstrate a social Manchester and you will see the masts Eastserve is much more than an • The Manchester Multimedia Centre entrepreneurship which has historically of the new Sportcity Stadium, pointing information service. It is helping to • the Information Society Awareness – been largely untapped and ignored, yet bravely upwards. promote many of the NDC objectives ‘IS Aware’ – project which has a real potential to create new by drawing longterm unemployed • The North-west New Media jobs and training opportunities and to Built for the very successful people into training and jobs, Network, coordinated by the reconnect excluded communities to the Commonwealth Games in 2002, the encouraging those who are without a Manchester Institute for Telematics benefits of the information society. This is stadium seems to symbolise the area’s bank account or credit rating to save, and Employment Research, MITER, one of the most important challenges huge efforts to pull itself out of a and getting people who have been based at MMU facing this area of work: how to find ways seemingly endless cycle of decline. hard to reach involved in new • Supporting the arts and cultural of connecting these capacities across initiatives. There are signs that it may industries through a new business Manchester and the wider region and to also be sparking improvements to key East Manchester has taken many support agency – the Creative develop new pathways into employment public services. knocks over the decades, driven by Industries Development Service (CIDS) – in these growth areas for society as a successive losses of coal, steel and which provides advice, training and whole. This is the only way that we can power industries and large parts of the Eastserve’s first aim was to provide support for business networking realise the critical mass of activity and manufacturing sector, particularly in residents with computers and internet • Coordinating events through the Digital participation required to achieve the 1970s and 1980s. access. By March 2003, over 4,000 Summer/Inter:face festival which sustainability in the longer term. This is households had their own computer. showcases cutting edge collaborations what Manchester is most committed to in Schools and other organisations are The resulting wide-scale between arts, science and technology terms of linked strategies for economic also linked in. unemployment, often affecting several • Developing new community based regeneration and developing the generations, has left its scars in the broadband services, such as the information society. shape of heightened crime and The equipment is supplied by ITEM, a Eastserve community portal vandalism, poor-quality and local community enterprise that (www.eastserve.com) backed up with abandoned homes, wastelands of collects and recycles redundant wireless broadband access for the empty spaces, as well as low computers and buys new ones in bulk local community educational achievement and to sell at a large discount. Many people poor health. still can’t afford the £200 to buy a new In Manchester’s experience, those projects computer, and that’s where East and initiatives supported by sections of Manchester Credit Union (EMCU) Today that picture is changing... the the community facing social exclusion are comes in. They arrange a loan, in the Industrial Revolution may be over, but often some of the most creative and process taking on new customers and a new IT revolution is just beginning. innovative. It is no coincidence that some introducing them to the benefits of

2 This information is reproduced from an article by Sara Lovell in ‘Inclusion’ magazine, published by the Social Exclusion Unit in the Office of the Deputy Prime Minister. The Social Exclusion Unit cannot accept liability for any omissions or errors. 62 The views expressed are not necessary those of the Social Exclusion Unit. (C) Crown Copyright 2003. 63 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 62

Manchester Manchester

developments in Manchester saving. This has turned EMCU into the schoolchildren downloading their tied into training and the credit union has fastest growing credit union in the homework, to working out benefits made it much more sustainable.’ MIDAS: www.midas.org.uk country, with around 3,000 new using an online calculator. The inward investment agency for members via Eastserve. As a bonus, Partner organisations such as Manchester Manchester. MIDAS is also managing the new jobs have been created to handle Much of the local information on the City Council are now starting to provide Commonwealth Games Economic Benefits the huge demand. site is provided by a Residents’ Panel of some of their services online. Lesley adds: Legacy Programme journalists who also make decisions ‘Service providers are keen to see how Everyone who buys a computer must about the site’s future direction. Eastserve can help them and to promote Marketing Manchester: also take up a three-hour training themselves, but they also have to course to learn how to use it. The Eastserve’s Website Manager, Daniel respond. They cannot just deliver services www.marketingmanchester.com training, provided by Manchester Bainbridge, says: ‘Broadband can help online in their existing format – they The tourism and promotional agency for College of Arts and Technology to develop individual projects on issues are finding that they have to change Greater Manchester (MANCAT), may be their first learning such as crime, safety and health. For and improve them.’ experience in a very long time, example, we are talking to the local Creative Industries Development providing a gateway to further training Primary Care Trust about video- How far the website can influence the Service and, for some people, into work. conferencing GP surgeries so that quality of public services may be difficult doctors can consult with patients to assess at this stage, but it has certainly CIDS: www.cids.co.uk Shirley Hughes, who was unemployed about minor problems online. There had a considerable impact on local people for 14 years, bought a reconditioned are wider implications too – we could and on the NDC programme and it looks The business support agency for the arts computer for just £30, and with the improve consultation with like it is here to stay. Eastserve is confident and cultural industries sector help of training and support gained organisations such as the Greater that by the time its funding runs out in new teaching and ICT qualifications, Manchester Police Authority, enabling 2004, it will be an integral, self-standing North-west New Media Network enabling her to secure a job as a residents to influence policy.’ part of the community. www.nw-newmedia.net teacher with MANCAT. ‘It has been an amazing experience and my thirst for There have been a few initial stumbling The regional network supporting the knowledge is growing. I was pretty blocks during the development of Key network contacts in development of the new media sector (see much a novice at the start,’ says more interactive services with public Manchester also MITER below) Hughes, ‘but now I am confident in my services, in that some have been wary own ability. I am looking forward to of speaking directly to their customers Manchester City Council: Manchester Community Information providing other women with the via discussion forums and local Network chance to gain confidence and new businesses have been slower than www.manchester.gov.uk computer skills at MANCAT.’ anticipated to get on board. MCIN: www.mymanchester.net The current website, for more details about the city’s work in the internet/New One of the first and now largest Once people have the funding, The DFES will be carrying out a full Media field contact the Economic community information networks in hardware, training and back-up to get evaluation of the project, but NDC Initiatives Group (EIG) at the City Council the UK online, they can use Eastserve’s Regeneration Officer Lesley Spencer extensive website service, which is just believes that it has already contributed Manchester Digital Development MITER@MMU: about to be launched on a wireless to the overall renewal of the area. Agency: broadband network, solely for the East ‘Eastserve has been very valuable in The Manchester Institute for Telematics Manchester community. Broadband pushing things along and engaging www.manchesterdda.com and Employment Research at the costs less, and is more in tune with a services and local people faster than Manchester Metropolitan University whole range of community uses – from would otherwise be possible. Having it The website of the Digital Development (MMU) has been developed from one of ‘surgeries’ with service providers to Agency articulating a vision for ICT the longest-running partnership initiatives

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in the city, established by the City Council THE FUTURE IS HERE and the MMU more than ten years ago. by Adrian Slatcher The key projects which are co-ordinated by the partnership: We once painted cave walls With berries crushed down, Digital Media – U: Made music with jawbones And horsehair we’d found. www.dm-u.co.uk Scratched on slates, Made papyrus from reed, Digital Media Watch: Learnt ABC When we wanted to read www.dm-w.co.uk

Dipped quills in ink Further information on MITER from: To fill our long scrolls, www.miter.org.uk Then bound up the pages Into books we could hold. IDEA – Innovation in Digital and We once filled whole rooms Electronic Arts: With adding machines, Abacus to spreadsheet www.idea.org.uk Still counting out beans.

Digital Summer/Inter:face - We used smoke signals And pigeons to send, www.digitalsummer.org/interface Advance warnings of foes Or news to a friend. Telecities and the European Digital The email of the species Cities programme: Is quicker than the mail And our most hated words www.telecities.org Are Abort-Retry-Fail.

If the future is here Then think what comes next, When even your grandma Sends you a text.

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If the future is here Then think what comes next, When even your grandma Sends you a text.

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Hamburg

Senator Gunnar Uldall, Minister for the Economy and Employment

roadband is a way to a digital broadband technology, is deployed. We The business service offers companies a element. The aggregated budget is held quality of life. While an athlete’s now have approximately 200,000 DSL database with more than 100 online forms under the stewardship of the finance motto is ‘higher, faster, further’, connections in Hamburg, allowing and links to contacts and other sources of department, which also holds B the motto of the networked broadband access to many more people. information. Furthermore, Hamburg uses responsibility for e-government. Funds are society is ‘faster, further and broadband’. the latest software for public tenders via then allocated from that single source. After you have tried the video-on-demand In addition, last year the Hamburg@work the internet. offering (as explained later), there really is initiative started the largest non- A committee – which also records, reviews no going back. commercial WLAN project. Forty hot-spots Hamburg is currently implementing a and manages development spending – throughout Hamburg will offer DSL-based unique access point to our internet takes all IT investment decisions centrally. To Hamburg, e-government means fast wireless internet access for everybody. services – the Hamburg Gateway. You can Each agency wishing to establish an IT or and effective administrative services for use all administrative services with only e-government project has to make a case citizens and local businesses. Public-sector As the so-called Gateway to the World, one user ID and password. Our goal is to for each project, develop its own processes must keep pace with the the Free and Hanseatic City of Hamburg save unnecessary travel and waiting time proposals and submit a business case into technological advances made by private sets the framework for all companies to be for our customers, while at the same time an applications databank. All projects are industry and consumers. As Hamburg is an successful on the base of a solid, future- improving the quality of service with assessed in the same way for ROI and open-minded trade and media city, as well oriented infrastructure. significantly less cost and complexity. cost savings. as a centre for the digital economy, we must drive e-government to provide the Finance department: How it works Diether Schönfelder, Head of best possible service to our customers, e-Government, IT infrastructure e-government for the City of Hamburg, Hamburg’s citizens. for the administration1 For ten years, the City of Hamburg has explains: ‘Any department wanting to managed its IT infrastructure in a simple – establish an IT or e-government project In Hamburg there is intense competition The access to local services through the and possibly unique – way, which has to make a specific case for that between carriers and service providers, internet is an additional way of facilitates a unified and coherent IT project. Each business case is assessed so which leads to a wide range of low-priced communicating with the administration in strategy. This budgetary mechanism that we can make decisions according to a high quality services based on the Metro an effective and convenient way. There is a provides focus and muscle to ensure that citywide view.’ Ethernet infrastructure. Local providers wide range of offerings for citizens and all IT spending is planned and controlled offer bandwidths of up to 9.2 Mb/s. So businesses in our e-government road map. from the centre, which virtually removes The system requires that each project must this is interesting even for businesses with the possibility of duplication, state how and when the investment will high data traffic volume. For example, citizens who want to contact incompatibility and waste. be paid back. If a proposal is not a government official may prepare considered sound and is not in line with DSL is also available throughout the city themselves online by finding the best There are no Hamburg local government Hamburg’s overall e-government strategy and there is increasing demand from contact. They may also research the agencies with discrete IT budgets. Before and IT standards, it will not proceed. private households. Furthermore, relevant regulations and download all any money is allocated to departments Annual reviews are held and, occasionally, Hamburg is one of the first cities in necessary forms. such as justice, finance or internal affairs, projects have been terminated as a result Germany where UMTS, the latest mobile there is a mechanism that removes the IT of technology problems or lack of success

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Hamburg

Senator Gunnar Uldall, Minister for the Economy and Employment

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according to the city’s criteria. ‘Every the areas served by Hamburg. From the road, up to 16 copies of the request must project,’ says Schönfelder, ‘has to be a start of 2004, the single business will run Western democracies have be sent to interested parties like cable win-win: this means that it must provide services for two adjoining councils, and deliberated long and hard on the companies, building contractors and other citizens with a better service and save the offer services further afield, to provinces vital task of providing access to public services. Soon the utility or builder city money.’ and small cities to the north of the region. government services to all citizens will only have to register once to receive while maintaining levels of security messages electronically. Only sound projects that fit with overall There are two key projects for the citizens and confidentiality city and regional strategy are permitted of Hamburg and her neighbours as The benefits of websites and online to proceed. This budget mechanism explained by Jörn Riedel, Head of Network transactions can be measured in many has also been responsible for introducing Architecture and IT for the City of ways: in Hamburg this is done by usage a healthy element of competition Hamburg. ‘The internet platform has gone services. e-government must not be and by the savings made. But Diether between the various agencies in their from strength to strength during the last esoteric: access has to be simple. Our e- Schönfelder emphasised that in Hamburg: pursuit of IT funding, cost-cutting and six years and now supports the second government strategy and what we offer ‘The “electronification” of services is improving service. biggest website in Germany, with over ten are designed to make it that way.’ always accompanied by improvement million page views per month.’ This in business processes, so that further Germany’s federal system can lead to website is run as a public/private But while Schönfelder believes that financial benefits are derived from duplication of resources in bordering partnership and reflects all the activities of simplicity of access to electronic services is these as well as from the transfer of states: Hamburg, however, has the city including the booking of theatre all important to their quick take-up, he is systems online.’ sidestepped the issue by extending its tickets and hotel rooms, as well as well aware that it will take time for e-government domain bilaterally across administrative services. electronic routes to take over. Traditional Economy department: broadband, the neighbouring states of Schleswig- methods of access – letters, telephone SP competition, economic Holstein and Niedersachsen. The second project is the Hamburg calls to the developing Citizen Contact development Gateway. ‘This,’ says Riedel, ‘will provide Centre and visits to the local office – are Collaboration across the region benefits the connectivity for all transactions with all still in place and being updated so that As a result of the commitment to citizens, particularly those who travel daily our citizens and our commercial customers whichever access method is used by e-government, Hamburg is focusing on into the city and have no time to visit their as well.’ Online public information services business or by individuals, there will be no new technologies including the ongoing local office. Early next year, commuters are already hugely successful. The most doubling-up of data input; the same development of broadband. The into the city will be able to log into the used, with up to 750,000 hits per month, electronically supported business processes implementation of a modern technical Hamburg office to transact their own helps people get the services they need. will be used throughout. Hamburg is also infrastructure for effective e-government council business during their working day. Once a query has been input, a page planning the online management of has been under way for several years with This is enabled by a secure network using comes up with the nearest office that municipal grants. An example of this the administration network of 30,000 PCs, XML, which allows information to be deals with the matter, its opening times, would be the administration required a standardised communication shared and data to be input in one the requisite forms and information on the when a claim is made by a charitable infrastructure and secure online access at location – in Hamburg – and processed in public transport that will take the citizen institution such as a church, for the its heart. another, their local office. to that office. Other well used services are running of a kindergarten. The church is the online ordering of birth certificates, entitled to reclaim some of the costs, but Western democracies have deliberated The merging of the IT provider for new passports and special voting forms in staggered payments, and only once long and hard on the vital task of Hamburg with that of Schleswig-Holstein for voters away from home. receipts have been provided. The process providing access to government services will bring economies of scale. These are will be quicker and easier online and will to all their citizens while simultaneously publicly-owned companies organised as Diether Schönfelder is convinced of the no longer require piles of paperwork. maintaining appropriate levels of security stand-alone businesses with their own value of getting the e-government and confidentiality. The endorsement of budgeting and accounting systems, message across to customers and to Another simplified process will deal with digital certificates by the European providing services for private companies as partner organisations alike. ‘Number of permissions. Currently, when a public Parliament has led many federal German well as managing the infrastructure for users is what counts for us, not number of utility requests permission to dig up a authorities to insist on their use online,

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in all cases where a handwritten services will be up and running shortly All services that Hamburg provides will signature would otherwise be required. once relevant legislation has been passed be available electronically. Once an But the digital certificate is not commonly by the Department of the Interior. account has been established, all data used by individuals (fewer than one per made available is on that account. If a cent of Hamburg citizens), or indeed by The new Hamburg Gateway, using a user accepts a service, and a result many businesses, and there are problems similar model to the Government Gateway cannot be provided online immediately, with compatibility of systems from in the UK, will provide connectivity for the user can logout and will later be sent different suppliers. citizens and commercial customers for all an email. They can then return to find the transactions through a single interface. result of the query, or the completion of Having analysed practices across Europe Jörn Riedel explains: ‘Four or five hundred the transaction. and examined the UK model, Hamburg software applications run on the back end managers found that digital certificates systems, and data shared across the Senator Uldall summarises: ‘Hamburg are not mandatory, provided there is a infrastructure will be translated to provide works as a team so that everything goes single secure gateway to government the view seen by the user. This will share easier and faster – especially with websites, and that once a stringent an underlying functionality so that broadband.’ process of authorisation has taken place, a features can be accessed in the same digital signature is not required to way with a similar look and feel for ease undertake e-government transactions. of use.’

Now Hamburg is adopting a process Companies use the broadband service similar to that used when a client opens a mainly for fast data transfer and real-time bank account. To access those more secure connectivity. The media and logistics areas of the Government intranet in order industries, including the harbour, are good to, for example, make payments for e- examples of industries in our diverse government services, a citizen completes economic landscape that have a strong an application form and sends it to the demand for broadband. In the private council. The council sends authentication sector, a local service provider has started data, password and ID to a local office. To an innovative video-on-demand service collect the data that will enable that has set the ball rolling for vod transactions to be made online, citizens services all over Germany. visit that office to show their faces and a personal ID card or passport. They then Take the example of mobile radio receive authentication data and it is their technology via UMTS: the combination of responsibility to keep it secure. mobility and broadband is a high technology base for the development of This data is entered just like a normal innovative services, and therefore new login process with a user code and market opportunities. Consequently, password. The data includes address and driving the adoption of these technologies other personal details that can make it will also have a positive impact on the more useful, and arguably more secure numerous Hamburg-based IT and Telco than those digital certificates with single companies. With the variety of mobile fields. Once the citizen is signed up, all business applications used, they are services can be accessed and transactions already among the pioneers in that made. The gateway to the government sector in Germany.

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Hamburg Hamburg

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Hillingdon - a case study How to create the Business Case

Pacey Cheales, Corporate Programme Manager for the Hillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council

The local strategic Services department. COMMUNITY PLAN AIM HOUSING ’S STRATEGIC OBJECTIVE planning context A HEALTHIER BOROUGH Improve services for older people and London Borough of Hillingdon: promote independent living for vulnerable for modernisation tenants A SAFER BOROUGH Work with the police and others to reduce Hillingdon is London’s second largest Introduction crime, anti-social behaviour, domestic unitary borough – covering 42 square violence and racial harassment miles of west London from Harefield in AN ECONOMICALLY PROSPEROUS Increase the supply of housing for low Each local authority will have its own the north to Heathrow airport in the BOROUGH income and key worker households drivers for modernisation. Whether south. Located 14 miles from central A CLEANER AND MORE PLEASANT Satisfy basic needs for warm homes and responding to national or local priorities, BOROUGH safe streets and improve conditions in the London Hillingdon shares its boundaries the modernisation of service delivery private sector with neighbouring west London boroughs through e-government is a common factor A BOROUGH WHERE OPPORTUNITIES ARE Focus resources on excluded groups, reduce and the counties of Hertfordshire, OPEN TO ALL homelessness and ensure equality for all in community plans, best value Buckinghamshire and Surrey. service users performance plans and service specific plans. A BOROUGH THAT ENCOURAGES LIFELONG Provide training opportunities for council LEARNING tenants and people living in temporary The borough is home to 250,000 people Hillingdon’s business case for accommodation from diverse backgrounds. BAME (black, modernisation work does not try to Asian and minority ethnic) communities establish a definitive set of modernisation Within this strategic context the £18,500,000 currently comprise 19% of the population drivers applicable to all local authorities. operational scope of Hillingdon’s Housing • Provision of 23 sheltered housing – this figure is expected to rise to 25% by However, the detailed analysis carried out Service is illustrated by highlighting the schemes providing independent living the end of the decade. Hillingdon includes by Hillingdon’s Housing Service operational services delivered by the accommodation for 925 elderly and the world’s busiest international airport at highlighted the importance of answering department’s 520 directly employed staff vulnerable members of the community Heathrow and the main campus for the question ‘What are the drivers for and its other partners: • 18-month, £27,000,000 capital Brunel University. modernising the service?’. The answer to programme to supply 230 new this important question is for each local • Landlord for more than 11,500 affordable homes Housing Services: authority to determine based on its tenancies and 1,500 leaseholders – own circumstances. collecting rent and service charges Drivers for modernisation: Hillingdon council’s Housing Service valued in excess of £45,000,000 provides a comprehensive range of Strategic planing context for per annum This local context helped Housing Services housing-related services to all tenures in modernisation – London borough • Administering housing and related identify the following objectives for the local community. The department’s of Hillingdon and housing services benefits valued in excess of modernising the service: strategic priorities and operational £70,000,000 per annum to 18,500 new activities are focused on positively and existing service users To place the more detailed aspects of • National and local government policy contributing to the borough’s Community • Annual planned maintenance and day- Hillingdon’s modernisation work in agenda re: BV157 and wider Best Plan in the following areas: to-day repairs investment in council context, this section provides a thumbnail Value regime housing stock valued in excess of sketch of the council and its Housing • Generate cost/productivity gains, 74 75 CISCO Cities BLACK.qxd 25/11/03 10:50 AM Page 74

Hillingdon - a case study How to create the Business Case

Pacey Cheales, Corporate Programme Manager for the Hillingdon Improvement Programme and Steve Palmer, Head of Technology and Communications, Hillingdon Council

Hillingdon – a case study: how to create the business case Hillingdon – a case study: how to create the business case

demonstrate willingness to positively Building the Modernisation Step 1: the first instance as the benefits from scrutinise costs and working methods Business Case Benefit identification modernisation can be unexpected • Socially inclusive e-delivery, ensuring and diverse. potentially excluded groups had access There follows a brief explanation of INTRODUCTION to digital delivery channels Hillingdon’s process, as well as the key • Third, a practical categorisation system • Work-Life-Balance aspirations, strive to outcomes from the Housing department’s was used to map each ‘long list’ Each local authority’s strategic and be an employer of choice in a modernisation business case: benefit against one of three operational context will create the competitive labour market broad groupings: framework in which the modernisation • Meeting citizen expectations, ensuring business case is built. In building any a positive response to evidence from • Red benefits – are those that will Step 1 business case the importance of citizen panel of awareness and desire (when delivered) realise hard Benefit identification establishing the anticipated benefits to transact electronically tangible cost savings, eg reduced Identify the benefits modernisation of a particular initiative at the outset • Improving accessibility to services, premises costs or savings in needs to deliver for your organisation if self-evident. using online facilities and new working procurement costs. arrangements to establish more flexible Step 2 In the case of modernisation the pathways into services • Orange benefits – are productivity The modernisation diagnostic anticipated benefits will be relevant to improvements in terms of employee Identify the opportunities and risks of each council’s circumstances. Identifying these objectives at an early time saved, eg from web-enabled modernising working practices, Consequently, Hillingdon’s work is not stage was productive as they focused citizen self-service. These types e-delivery and citizen contact presented as a definitive list of benefits for Housing Service’s attention on the benefits of benefit require proactive modernisation. Instead the experience that had to be delivered by modernisation. management to be realised. Step 3 gained from Hillingdon’s approach They can either be banked as Reality check may assist other councils faced by Building the financial savings or alternatively Review the diagnostic outcome similar challenges. used as ‘free’ resources to be modernisation against the benefits required reallocated elsewhere. business case BENEFIT IDENTIFICATION – LONDON Step 4 BOROUGH OF HILLINGDON • Green benefits – are those benefits Completing the business case Introduction that cannot be converted with any Develop a costed ROI on all or selected Hillingdon’s process of benefit degree of reliability into cash or priority elements of the diagnostic identification was as follows: Having identified the most important productivity gains, eg, building ‘drivers’ for modernisation, the core of organisational capacity or raising • First, the benefits associated with Hillingdon’s work focused on building the Step 5 the council’s profile with modernisation were explicitly defined. business case for modernisation. The Prioritising the business case key stakeholders. business case emerged over time and was Evaluate the business case using Hillingdon found it helpful to identify a agreed prioritisation criteria to assist number of broad target groups as refined through an iterative process. When this process was complete, a set of resource allocation decision-making potential beneficiaries of Having completed the process Hillingdon’s desired red, orange and green (This step is not relevant to the main modernisation: experience suggests there are five steps modernisation benefits were identified focus of this paper and is not • Citizen and community involved in building the modernisation by Hillingdon: business case. reported in here) • Employees • Service providers • External stakeholder

• Second, a ‘long list’ of benefits was developed. Nothing was ruled out in

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• Second, a ‘long list’ of benefits was developed. Nothing was ruled out in

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Potential red hard cost benefits Potential green intangible benefits, not reasonably converted to a financial value Reduced premises costs – savings on officer accommodation Reduced ICT costs – reduced connectivity as accommodation declines Community leadership – major local employer embracing information age Flexible working methods – simplified terms and conditions Reputation – as a forward-looking organisation Recruitment costs – reduced turnover, declining advertising costs Closeness to citizen – better understand needs and more responsive Restructuring – potential increased spans of control Social inclusion – use digital technology to promote inclusion Reduced facilities management costs – reduced premises numbers Identify and respond to trends – via improved data capture and management Cheaper, faster procurement – enabled by b2b online procurement Citizen empowerment – via digital self-service and engagement Reduced postage costs – channel swapping from manual post to email Meeting citizen e-expectations – surveys indicate citizen readiness/desire Faster turnaround time for the citizen – self-service, single point of contact Ability to attract funds – improved reputation helps attract resources Potential orange time and/or productivity benefits which may be Attracting partners – private sector attracted to local authority exemplars converted to cash or redirected elsewhere Quality of service – reduced cost, faster services that meet citizen needs Improved work-life-balance – for staff involved in modernisation Reduce commuting time – flexible working reduces commute frequency Staff motivation – improved by modernised flexible working Greater productivity – increased staff motivation from flexible working Openness to innovation – building future capability and capacity Better use of specialists – focus on value-added tasks, via job redesign Project image of modernity to stakeholders – innovator to work with Reduced staff turnover – improved work-life-balance Greater employee responsibility – cultural change via modernised working Access to electronic information – greater efficiency in data-handling Output/outcome based management – performance orientated focus Single point of contact – reducing resource duplication Service accessibility – better meeting statutory duties Standardisation of response – via call-scripting, reduced transaction costs Regional/sub-regional good practice – being an exemplar for peer authorities Online forms/transactions – citizen self-service and channel-swapping Tracking/data management – enhanced performance-monitoring The process of benefit identification resulted in a matrix that combined both benefit Disintermediation of third party – simplify supply chains categories and target groups shown below: Regional/subregional economies of scale – west London mechanisms Benefit, target group matrix:

TARGET BENEFIT CATEGORIES GROUPS RED ORANGE GREEN Citizen and Disintermediation Socially inclusive community

Employees Reduce commute Staff motivation time & turnover

Service Reduce premises & Greater Service accessibility, providers recruitment costs productivity staff motivation and

meeting citizen

e-expectations

External Subregional Meeting citizen

stakeholders economies of scale e-expectations

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TARGET BENEFIT CATEGORIES GROUPS RED ORANGE GREEN Citizen and Disintermediation Socially inclusive community

Employees Reduce commute Staff motivation time & turnover

Service Reduce premises & Greater Service accessibility, providers recruitment costs productivity staff motivation and

meeting citizen

e-expectations

External Subregional Meeting citizen

stakeholders economies of scale e-expectations

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By identifying the benefits of communications technologies to modernisation at the outset of the change the organisation BREADTH OF MODERNISATION business case Hillingdon found: • Sensitive to the human resource Modernised e-Service Citizen Contact benefits, implications and risks of Few Service Functions Working Delivery Management • It focused attention on the benefits deploying and sustaining most relevant to the organisation. modernisation • It established a set of benefits that the modernisation diagnostic would be However, the diagnostic was relatively assessed against, and, finally, time-consuming to apply, required data • It helped address the question of where preparation beforehand and a fair amount to apply the modernisation diagnostic – of quantitative and qualitative analysis More Service Functions which is explained further in step 2. afterwards. Step 2: Scoping the modernisation diagnostic: Diagnostic scoping matrix modernised working. The modernisation Hillingdon decided to carry out all three diagnostic elements of diagnostic across the Housing The following sections summarise each Opportunities for modernised working Service. An alternative would have been to element of modernisation diagnostic and INTRODUCTION focus a single part of the diagnostic on a set out the opportunities and risks The objective was to work with service wider range of service function, eg identified when it was applied to the managers to identify opportunities to The objective of the Hillingdon’s applying the modernised working Housing Service. utilise a range of modernised working modernisation diagnostic was to identify diagnostic to staff who work in major civic arrangements in Housing Services, the opportunities, benefits and risks buildings or all peripatetic staff. THE MODERNISED WORKING including: associated with deploying digital DIAGNOSTIC – HOUSING SERVICES communication technologies to: Clearly there is a continuum of scoping • Mobile working options available, and each council will The broad objective was to work with • Teleworking 1. Modernise working practices determine what’s best for its own service managers to identify the • Hot desk modernised working 2. E-enable service delivery circumstances. For example, if cost opportunities to modernise the way arrangements 3. Improve citizen contact management improvements were a priority, applying Housing Service’s 500 staff work. • Extended service availability the modernised working element of the Particular attention was paid to how • Increased use of flexible working diagnostic would be most relevant. The diagnostic was characterised mobile and teleworking could be Whereas if identifying services to be as follows: utilised in parallel with more flexible The investigation highlighted the job e-enabled to meet BVPI157 was of working policies and electronic functions that best lent themselves to particular significance then the e-services • A set of pre-determined questions document management (EDM) to modernised working, as well as the part of the diagnostic would be used. applied systematically enable modernised working. numbers and proportions of FTE's • Service-based approach that focused on involved. Teleworking functions were Hillingdon’s experience was that reviewing the experience and judgement of The importance of effectively managing defined as non-public contact back-office the benefits identified (during step 1) service managers human resource (HR) issues to deliver activities that supported front-line delivery, helped scope the application of the • Scaleable management tool applied modernised working was recognised as eg client casework, project preparation, diagnostic. both to relatively small staff groups of being central to the entire modernisation write-up/preparation for inspections/visits half a dozen as well as service teams of agenda. Consequently priority was etc. High-volume telephone public contact more than staff given to identifying the important HR work was excluded from the teleworking • Conscious of the capabilities presented policy, organisational and staff category. The view was taken that initially by the internet and other digital competencies associated with deploying employees should not be isolated at home

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dealing with potentially irate telephone Similar to other organisations, Hillingdon Opportunities for flexible working: 6 days in 7 by working Saturday mornings calls in virtual contact centres. Mobile recognised that pursuing opportunities for working was defined as any functions modernised working would require hot The objective was to identify the Flexible weekly hours within a banded requiring regular, dedicated time away desk/touchdown facilities being preferences of service managers for upper and lower limit was not from a civic office, whether to deliver substituted for existing dedicated work promoting the use of flexible working supported in general as this would services to the community, inspect desks. This in turn could leverage the arrangements to support the make resource planning too difficult properties or meet with external partners. opportunity for space savings, more implementation of modernised working. efficient use of assets and associated Annualised and compressed hours were seen as offering potential benefits to Service managers also highlighted how reductions in accommodation costs. The Service managers were asked to evaluate service delivery and resource planning they thought their team(s) would respond potential impact on office accommodation the potential benefits of deploying a to the implementation of modernised pre- and post-modernised working in number of flexible working arrangements, Pre-set annual leave, ie prohibiting working. The modernised working Housing Services is summarised in the including: leave at certain times, smoothing diagnostic identified the following: table below: leave throughout the year or use of • Changes to the start and end of the ‘closedown’ periods were seen as Estimate of 295 or 70% of the total Indications were that a reduction of working day, ie 8am – 8pm offering potential benefits, particularly workforce was potentially suitable for approximately 50% in the number of • Service availability each week, ie 6 or 7 where there were cyclical peaks mobile working and/or teleworking for work desks could be achieved post- day working in workload between 2 – 4 days per week. modernisation – when compared with • Application of flexi-days the number used in mid-2001. However, • Flexible weekly hours within a banded Common theme to emerge was the the overall space reduction (and cost Consequently, that 295 staff could upper and lower limit. continued relevance of core/fixed reduction) could be greater if modernised move from a dedicated work desk in • Annualised hours, eg working standard working hours to teleworkers. Service working was deployed in parallel with a civic building to a hot-desking/ pattern/hours during specified periods – managers broadly took the view that EDM, as the latter could further reduce touchdown facility. leaving other periods when the so long as work was carried out to the office space required to store employee does not attend work. agreed levels working time could be manual data. • Compressed hours – eg, the ability to credited on a 24/7 basis either work agreed annual hours in a shorter period (at flat rate) or to work Opportunities to utilise HR to support Location CURRENT Opportunities Hot desks on Balance needing MODERNISED (headcount) WORKDESKS For mobile, 1:3-1:4 ratio 1:1 desk ratio WORKDESKS above contracted hours (at flat rate). modernised working: Teleworking In both cases above the 36 hours Civic Centre 265 183 45-61 82 127-143 national conditions The objective was to identify: • Pre-set annual leave arrangements, Area Housing 154 112 28-37 42 70-79 ie prohibiting leave at certain Offices x 4 • The HR policy priorities that service times, smoothing leave throughout TOTAL 419 295 73-98 124 197-222 managers believed were needed for entire leave year and the use of modernised working to be ‘closedown’ periods. effectively deployed • To highlight the ‘softer’ less The options were discussed with service tangible organisational risks that managers and a number of priorities threatened the effective delivery of consistently emerged across the modernised working Housing Service: • The competencies (knowledge, skill and behaviour) that service managers Preference to extend both the start and believed were most necessary for their end of the working day (ie, to 8am- staff and managers to deliver 8pm) and extend service availability to modernised working

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This part of the analysis identified a Opportunities for electronic data • Service specific and generic Flexible working preferences: number of consistent perceptions and management (EDM) to support policy/technical/professional messages from service managers: modernised Working: guidance (ie health and safety etc) 1. How to manage the potential tensions between the needs of the service and The priority was for HR to develop an The objective was to identify the data that Risks and issues raised by the employees’ desire for an improved effective policy response to teleworking needed to be available electronically to modernised working diagnostic work-life-balance? The opportunities (including health and safety issues), support modernised mobile and/or presented by greater flexible working managing the performance of teleworkers. Completing the modernised working could allow employees to develop a geographically dispersed teams and element of the diagnostic raised a number work-life-balance suitable to their resolving the contractual issues Service managers identified the manual of issues and risks for Housing Services to personal circumstances. However associated with modernised working and electronic data requirements for each consider: service need to take precedence. function previously earmarked as being A solution being considered is to Potential threats to modernised potentially suitable for modernised Modernised working: develop a ‘menu’ of flexible working working identified by service managers working. The following results emerged: options that managers and employees included focusing on ICT at the expense can select from to ensure service 1. How to effectively manage the of human factors (eg maintaining team needs are met. • Confirmation of the value of Housing’s reduction in dual purpose building identity and culture despite geographic 2. How to manage the resource previous ICT investments in an assets – ie those that contain both dispersal), ineffective performance implications of extending total hours of integrated housing management office space and face-to-face public management of dispersed teams, service delivery and availability? The key system and the deployment of ‘thin’ contact facilities? (management concerns that ‘I can’t factor is likely to be the impact of client technology across Housing’s 2. What happens to office accommodation manage what I can’t see’) and modernised working on aggregate 430 user base in 2001. Both were seen post-modernised working? Is the managing the uncertainty created for demand for services. Where demand as providing foundations for future remaining office space rationalised (ie both managers and employees by remains unchanged despite increased web based applications and new close down), consolidated (ie merged) modernised working service availability (ie total demand is working methods or centralised? spread more thinly), the priority will be • Broad categories of data needed to 3. Where and how will future face-to-face Common competencies for employees to reorganise existing resources to cover support modernised working were contact with the community be and managers necessary to sustain the extended hours of service highlighted as information hubs for conducted after the accommodation modernised working included: availability. Where aggregate demand a number of modernised working portfolio has contracted post- expands in line with increased service practices: modernised working? • Self-learning availability, additional resources will be • Professionally up to date needed unless modernised working • Tenant files (people based data) Housing Services’ approach to the • ICT self sufficient delivers offsetting productivity gains. • Client case files (Benefits, Emergency sensitive and complex issue of face-to-face • Increased health and safety and 3. How to reconcile the need for Housing, Private Sector, Sales etc) public contact was to seek the equalities awareness increased flexible local • Property files (capital programme community’s views via a citizen survey. • Customer focused employment practices with local project data, property related, ie The options being evaluated are to • Personally accountable and government’s national employment estates, sheltered and hostels) increase the use of home appointments organised conditions framework? Hillingdon’s • Mobile data requirements for (where safe to do so), develop single • Flexible and having good approach has been to seek a negotiated employees, particularly for staff delivery points for face-to-face contact colleague relationships provision of flexible working through involved in site inspections/visits. ie at centralised or consolidated office the council’s existing single table These offered opportunities for locations or develop surgeries/drop-in harmonisation machinery. productivity gains by enabling facilities located at community facilities remote access to back office ie hospitals, GP surgeries, other council databases (either read only or to premises – libraries, or shopping update online) centre etc.

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Human Resource priorities design? Throughout Housing Services CITIZEN CONTACT DIAGNOSTIC – Preferred service delivery and staff multi-task, performing front and HOUSING SERVICES communications channels: Some of the most important questions back office tasks at different times as posed by the modernisation agenda were well as desk-based and mobile working. The context for this element of diagnostic The objective was to work with service highlighted at this stage: Productivity gains could be achieved was the recognition that digital managers to identify and categorise by specialising and consolidating communication technologies were service delivery using two criteria. First, 1. Is the implementation of modernised tasks at particular times. Indeed, this creating new opportunities in the the channel used (for both inbound and working (particularly teleworking, is likely to be a prerequisite for management of citizen contact. In North outbound communications) and second, mobile working and changes to service modernised working as tasks suitable America and the EU, large public and the qualitative nature of the service availability) mandatory or voluntary? If for tele and mobile working will have private sector organisations are relationship between Housing and mandatory, does it apply to existing to be consolidated into continuous progressing beyond telephony based call the citizen. and/or new employees, or will working periods. centres and towards multi-channel contact implementation be phased over time? centres. These changes in channel • Channels were categorised as There are a range of factors to be Electronic document management: management have been giving greater face- to-face, telephone, letter, considered, particularly social exclusion, focus by the emergence of customer (or email or fax health and safety, and issues where 1. The EDM aspects of the diagnostic citizen) relationship management (CRM) • Service relationships were employees do not have suitable raised the question of how to software applications being marketed for qualitatively categorised as either: domestic accommodation to support effectively manage existing manual use in the UK public sector. • ‘Tell Me’ – where there was a teleworking. There is also the clear issue data? Consideration needs to be given relatively simple exchange of of personal choice: some people want to data protection, client confidentiality Consequently, the objective of this part of information that was not necessarily to go to their employer’s place of work and possible Human Rights Act the diagnostic was to understand the client-specific. and do not want to remain at home. implications. In addition, the practical nature of Housing Services contact with its • ‘Help Me’ – where further However, this needs to be carefully consideration that widescale community and the channel preferences assistance/enquiry was needed and balanced against potential cost and modernised working is not sustainable for this contact. This information would related to the specific circumstances productivity gains that may accrue from if mobile and teleworkers are help determine how citizen contact could of the citizen. reductions in accommodation costs, transporting large amounts of manual deliver higher quality service outcomes for • “Relate To Me” - where the specific improved productivity and enhanced data between different places of work the community and leverage potential communication or transaction was, in service quality resulting from needs to be addressed. economies of scale for the council by almost all cases, part of a longer modernised working. deploying: term, more complex relationship 2. Are managers and colleagues Housing’s objective is that to support between the council and citizen. competent (knowledge, skills and modernised working, data needs to be • Multi-channel contact centre(s) behaviour) to operate effectively in available electronically via the council’s ICT • Consolidated handling of Service managers estimated current a post-modernised working network – and that the data is accessible generic enquiries volumes of interactions with the environment? The greater degree to remote staff 24/7 without the need for • A single point of contact community for each channel – and of personal responsibility and confidential citizen or commercial data for citizens characterised the nature of the accountability, professional discretion, being hosted/stored outside the council’s • Improved service accessibility through relationship as either ‘tell’, ‘help’ or lone working, often accompanied secure ‘firewall’. 24/7 online information ‘relate to me’. by more direct contact with the • Citizen self service community may not motivate all existing staff. What will the employer’s response be in these circumstances? 3. What is the impact of modernised working on established forms of job

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Total inbound communication was Analysis of outbound communication Risks and issues raised by the citizen characterised as follows: identified that: contact diagnostic

Relationship Face-to-Face Telephone Letter Email FAX TOTAL The reasons why Housing Services’ Completing this element of the diagnostic ‘Tell me’ 29% 49% 16% 4% 2% 100% 29% contacted citizens appeared to be highlighted a number of important risks ‘Help me’ 39% 44% 12% 4% 1% 100% 38% ‘Relate to me’ 36% 49% 11% 3% 1% 100% 33% similar to the inbound analysis, namely, and issues for Housing Services: TOTAL 35% 47% 13% 4% 1% 100% 100% equally split between ‘tell’, ‘help’ and ‘relate’ interactions. This suggested that 1. The importance of developing a Analysis of inbound communication two in three outbound transactions thorough citizen contact strategy – identified that: were related to an exchange of setting out how first line citizen contact information or providing general help will be managed on a channel-by- The reasons why citizens’ contact with to the citizen. channel basis. Housing Services’ Housing were in broad terms equally preferred approach is to consolidate the split between ‘tell’, ‘help’ and ‘relate’ – Housing’s preferred channel for handling of the 65% ‘tell me’ and in other words more than two in three outbound communication was also the ‘help me’ transactions in a contact contacts were seeking some form of telephone. However, face-to-face centre – while retaining specialist teams generic information/general help with a communication was preferred for the to manage the 35% of complex ‘relate specific problem. more sensitive and complex ‘relate to to me’ interactions. me’ interactions. It was noted that one 2. The citizen contact strategy will need to In line with other research the in four outbound transactions was address sensitive organisational issues. telephone was the preferred channel undertaken in writing – the vast For example, which forms of citizen for inbound communication, although majority undertaking in writing and contact are best managed on a council not unsurprisingly face-to-face contact posted to the recipient. wide basis and which are best managed increases in preference for more by individual services? Hillingdon’s complex/sensitive service contact(s). It In overall terms this analysis suggested a corporate approach has been to was of interest to note that one in six number of priorities for Housing Services: simultaneously participate in a inbound communication remained in Pathfinder CRM project, pilot a contact writing, either manual or electronic. • The need to develop online citizen centre in a discreet service area while self-service for the 65% of total prioritising services that could be Total outbound communication was communication which was either located in a council-wide contact centre characterised as follows: exchanging data (‘tell me’) or providing in the future. general advice to the citizen (‘help me’) 3. At an organisational level a key Relationship Face-to-Face Telephone Letter Email FAX TOTAL • Seek to digitise (email etc’) written question was whether Housing

‘Tell me’ 23% 50% 23% 3% 1% 100% 27% communication that for legal or other possessed the specialist skills to manage ‘Help me’ 34% 43% 19% 3% 1% 100% 39% reasons needs to be retained effectively the high volume of ‘tell me’ ‘Relate to me’ 40% 33% 23% 3% 1% 100% 34% and ‘help me’ transactions. The TOTAL 33% 42% 21% 3% 1% 100% 100% deployment of a contact centre would require people with specialist customer (citizen) service and management competencies. This would represent a potential threat to existing back office and public contact staff who may possess different competencies.

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E-SERVICES DIAGNOSTIC – government agency or voluntary sector. • Citizen self-service: Online FAQs, programme formulation, Works Over HOUSING SERVICES There were examples where the council access criteria and policies for all Prescribed Limit consultation, tenant acted as an intermediary between the services. Making project case files initiative funds and advisory services. The context for this part of the diagnostic citizen and third parties. The diagnostic accessible to tenants and development Ongoing performance and tenant was central government’s information-age challenged the council to review partners etc. E-enabling client case files feedback on service delivery and society agenda and the specific e-services whether this intermediary role added (Benefits etc) to facilitate online citizen promotion of take-up for particular performance measure BVPI157. Moving value or whether direct access between enquiry. Online referral points/contact services could also be e-enabled. beyond the work required for BVPI157, the citizen and third party should details for tenant associations and Housing Services considered the ways that be e-enabled landlord services. Risks and issues raised by the service quality and effectiveness could be • Cross-boundary working: It was • Online transactions: Including service e-services diagnostic enhanced via e-enablement. From this recognised that digital communication request forms, booking appointments work the e-services element of the and government policy were for home visits, end-to-end online The step-wise change envisaged by wide diagnostic emerged. challenging existing administrative service process, eg Housing Benefits scale e-service modernisation raised a boundaries. Therefore the diagnostic application, decision, appeal and number of challenging questions. Opportunities for modernised was directed to identify opportunities change of circumstances. Discreet to develop regional and sub-regional transactions eg ‘Homefinder’, e-Services 1. Does a robust community access inter-agency partnership and nuisance complaints, mutual strategy exist? The potential benefits of service delivery exchange, arrears escalation process The objective was to build on the initial e-services are underpinned by an access • e-speed: The statutory nature of and the tenant exit checklist were BV157 audit by working with service strategy that raises awareness, Housing’s activities and the long-term also identified. managers to systematically identify the promotes, and supports the take-up of relationship with tenants meant that • Removing intermediaries: Direct opportunities to e-enable service functions digital technologies. This is particularly end-to-end service delivery processes tenant-to-service provider contact to against of the following themes: relevant for hard to reach, socially or could be time-consuming, particularly if address Resident Quality Promise economically excluded groups who mail was posted. Consequently performance issues were identified and • Citizen self-service: Making both otherwise are likely to be late adopters the diagnostic identified opportunities direct tenant-to-tenant contact where generic and citizen specific information of digital technologies. Hillingdon’s to use electronic communication to needed, eg for mutual exchange and available online – so the community approach has been to promote library reduce the total elapsed time to finally b2b procurement by service could directly access information to based public access terminals and complete multiple stage transactions. managers with suppliers. answer their own queries without develop an iDTV pilot. • Community engagement: It was • Cross-boundary working: needing to make direct contact with 2. How to prioritise investment in recognised that direct, ongoing Opportunities to develop sub-regional the council e- services? This was particularly engagement with service users, the procurement and/or delivery • Online transactions: At its simplest difficult to answer, due to a lack of wider community and hard-to-reach mechanisms were identified, eg, empty level this meant digitising existing clear evidence demonstrating the groups could be facilitated online. homes strategy, procurement of manual processes including service tangible benefits of e-service initiatives. Improved online engagement could be property, temporary accommodation enquiries, commissioning, online Hillingdon’s response was to develop an facilitated between the council and support, mutual exchanges, transfers payment for services and the ability to e-services prioritisation model which is community on a number of levels. For and Right to Buy process. provide citizens with an end-to-end not reported on here. example between citizens and business, • e-speed: Lengthy, multi-stage online process for services that are 3. How will the supply chain be between citizens themselves and processes such as Benefits, fragmented amongst different parts of e- enabled? Housing’s initial diagnostic between citizens and the voluntary Repairs for services (tenants and the council or between local and work focused on e-services to the end sector or government agencies. leaseholders) could benefit from central government agencies. service user or citizen. It became using electronic communication. • Removing intermediaries: Digital apparent that this approach did not pay An extensive range of e-service • Community engagement: More communication could facilitate direct sufficient attention to e-enabling other opportunities emerged from discussions immediate and targeted community contact between citizens and service elements of the supply chain, including with service managers. Examples include: engagement opportunities were providers – eg council, contractor, procurement, supply of goods and identified including the capital

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services, and data exchange with following issues: credit for working time and changes to community expectations and government agencies and partners. annual leave arrangements. aggregate demand 4. Does a resilient network of technology • If an acceptable level of benefit was 3. Approximately 65% of total services 2. The effective management of physical providers and partners exist? Work with not demonstrated – pause and transaction volumes with the assets was identified as crucial. council colleagues and other suppliers review the original benefits, revisit community were characterised as Decisions on how to rationalise post- has developed a resilient the diagnostic’s scope and if relatively generic in nature. This data modernised working office communications infrastructure to necessary determine why the generated the opportunity to use online accommodation and how future face- support the piloting of mobile and modernisation business case was applications to centralise the to-face public contact will be delivered teleworking solutions as well as online not sustainable. management of these generic citizen are vital payments and citizen authentication • If an acceptable level of benefit was contacts – while leaving the more 3. Fostering and promoting community portals. More problematic (in Housing’s demonstrated, the costs and savings complex sensitive transactions with access to digital channels was identified case) was generating supplier markets, associated with the opportunities in existing specialist teams. as critical to realising the opportunities commitment to develop a question were developed into a 4. A wide range of service functions were and benefits of e-services. Without an comprehensive range of innovative costed ROI in step 4, completing the identified as suitable for e-enabling. effective access strategy the risk exists citizen focused e-service solutions. business case. Opportunities to deliver potentially that considerable public resources will Housing’s approach has been to faster, cheaper and more consistent be committed to e-enable services that continue to work with existing and new REALITY CHECK – LONDON services online were clarified. In only a relatively small proportion of the suppliers to pilot innovative solutions as BOROUGH OF HILLINGDON AND addition, new and innovative local community will access or use a step towards achieving a broader HOUSING SERVICES opportunities to enhance community 4. Delivery of the modernisation agenda strategic partnership(s). engagement, reduce the need for needs a robust and diverse network of mediation and develop sub-regional technology partners to plan, deliver Clarify the opportunities and risks delivery mechanisms through e- and maintain the core ICT infrastructure Step 3: generated by the diagnostic enablement were also identified. and value-added software that Reality check underpins both modernised working, Applying the three elements of the Business case risk factors improved first line citizen service and modernised working diagnostic to INTRODUCTION e-enabled services Housing Services identified a number of 1. A common theme to emerge was the Having completed the modernisation opportunities and risks: importance of effectively managing key Does the business case deliver diagnostic and identified the key human resource factors – and the risk acceptable benefits? opportunities and risks – step 3, The Business case opportunities: to the modernisation programme of not reality check – was the next element in doing so. In particular: The modernisation diagnostic identified a building the business case. The objectives 1. 70% of office-based staff could benefit wide range of opportunities to improve of step 3 were to: from modernised tele/mobile working • Whether modernised working was cost-effectiveness, service quality and for 2-4 days per week. Wide scale mandatory or voluntary? citizen service. It also highlighted a 1. Clarify the key opportunities and risks deployment of modernised working • Maintaining a balance between number of risks – primarily associated with generated by the diagnostic could reduce the number of office work employee expectations for improved delivering organisational change, asset 2. Assess the opportunities and risks desks by between 47% – 53% via the work-life-balance and the needs of management, socially inclusive e-delivery against the benefits identified at step 1 provision of internet-enabled e-working the service and maintaining a robust network of 3. Determine whether the opportunities arrangements. • Capability gap analysis – whether the partners and suppliers. and risks were likely to generate an 2. The preference among service right skills to sustain a modernised acceptable level of benefit, paying managers to combine improved service organisation exist, and if not how are To assist the discussion on whether the particular attention to the evaluation availability (both morning and evenings, they going to be nurtured diagnostic delivered acceptable benefits, and management of risks identified by plus Saturday mornings) with more • Managing constrained human Housing revisted the original benefits the diagnostic. In Hillingdon this flexible working practices including resources when faced by increased matrix. Through a qualitative, rather than assessment was directed towards the annualised and compressed hours, 24/7

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quantitative process, each of the key Step 4: Orange benefits benefits originally identified was reviewed Completing the Restructuring – additional with the opportunities and risks generated person hours by the diagnostic. The outcome was to business case Reduced commute time – rate each benefit as either: INTRODUCTION additional person hours Reduced average response time • Sustainable (ie ‘Yes’) –additional person hours • Unclear due to partial or incomplete To support the business case for Citizen self-service (self-service) – data (‘?’) or, implementing key initiatives a financial additional person hours • Compromised due to insufficient Return on Investment (ROI) model was opportunities or outweighed by risk developed covering each of the three (ie ‘No’). In Hillingdon’s particular areas of modernisation diagnostic: case ‘Nos’ were not identified modernised working practices, ROI METHODOLOGY – STRENGTHS implementation of CRM practices to AND LIMITATIONS Benefit, target group matrix improve citizen contact and e-enabling service delivery. The ROI analysis was carried out using a TARGET BENEFIT CATEGORIES cashflow model as is common practice in GROUPS The outcome of Housing’s reality check, the private sector. The model was RED ORANGE GREEN identified a number of red and orange developed specifically for Hillingdon’s benefits that appeared sustainable. The Citizen and (?) Disintermediation (Y) Socially purposes using the same methodology as purpose of the step 4, completing the community inclusive has been used to evaluate benefits of business case was to use an established internet business solutions at Cisco ROI model to identify and scrutinise the Employees (Y) Reduce (?) Staff Systems across a number of e-business quantitative costs and savings associated commute time. motivation domains including Customer Care, Supply with each of the following benefits Reduce turnover Chain Management, Workforce highlighted by Housing’s reality check: Optimisation and E-Learning. Service (Y) Reduce Greater productivity (Y) Service providers premises costs accessibility Simple cash-flow-based models like this (Y) Reduce (?) Staff Red benefits have been widely developed by recruitement cost motivation Reduced office space organisations looking at combinations of (?) FM costs (Y) Meet citizen internet business solutions and IP (?) Post costs e-expectations Reduced ICT infrastructure – technologies. ROI analysis is particularly (?) Telephony related to fewer buildings helpful when used to consider not only Reduced recruitment costs through new technologies being adopted but also improved staff retention impacts on working practices and associated business processes. This is the External (?)Subregional (Y) Meet citizen Potential savings from stakeholders economies of scale e-expectations restructuring manner in which it was used at Hillingdon. Reduced commute time For each of the three areas of The qualitative review of the benefit was to complete the business case by modernisation, a number of scenarios was matrix suggested the modernisation carrying out a quantitative assessment of created and modelled. Each scenario diagnostic had provided evidence that a the costs and savings derived from the key considered a different combination of number of benefits identified at step 1 opportunities and benefits. initiatives with associated benefits and were potentially sustainable. The next step costs. In each case:

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• Red benefits (ie hard cost reductions) The ROI is a way of capturing assumptions are broken down into those which are were estimated in terms of their about initiatives, their likely costs and one-off costs associated with the monetary value benefits in a transparent manner which implementation of modernised working • Orange benefits (ie time saving allows inspection and investigation of and recurring annual costs. Descriptions of productivity benefits) were modelled in the implications of variations to the each category are provided below. two ways; in terms of their monetary assumptions. Ultimately the real value of value (by equating the time saved to the model is making assumptions explicit Benefit categories and indicative the average salary rate); and in terms and capturing the logical implications of financial values of the additional hours of time those assumptions in terms of value to available to provide extra value- the organisation. The ROI at the planning To create the ROI business case, the costs added services stage does not address the key issue outlined above were compared to the • Green (ie non-financial) benefits of allocating accountability to those benefits achieved from modernised were not modelled as part of the responsible for achieving the estimated working. These benefits were derived by ROI although they do, of course, benefits. The following sections describe comparing the working practices under form part of the overall justification the analysis and main results from modernisation to those pre-modernisation for implementation. the analysis. and examining the costs associated with It is important to interpret what comes each. The resulting savings, over a four out of an ROI analysis. It should not be THE ROI BUSINESS CASE FOR year period, are described in the thought of as a ‘forecast’ predicting a E-WORKING – HOUSING SERVICES following table. known future outcome. Such a view implies that the hard work is done once Cost categories and indicative values: the business case is estimated. Rather, it Benefit category Year 1 Year 2 Year 3 Year 4 £ £ £ £ is a way of helping an organisation to The table below describes the major cost Real estate – Benefit from 116,096 559,994 682,920 682,920 design the future that they wish to create. components in the ROI model. These costs released space Technology Infrastructure - 7,560 18,060 21,000 21,000 Cost summary Estimated Costs benefits from fewer location One-off costs £ Employee Retention – 11,100 22,200 33,300 44,400 One-off electronic data management costs 265,000 annual recruitment cost (backscanning of images, EDM software) saving One-off voice and data network costs 83,500 Restructuring – Average 142,500 213,750 285,000 285,000 (enhanced corporate, mobile and teleworker infrastructure) annual net cost saving One-off implementation support costs 90,000 Commute time – Value of 49,138 73,707 98,276 98,276 (project management and employee training) commute time One-off real estate costs 371,000 Sub total – modernised £326,394 £887,711 £1,120,496 £1,131,596 (potential reverse premiums and new office kit) working benefits One-off delayering costs 80,000 Annual costs £ Annual electronic data management costs 15,000 (EDM software maintenance and upgrade) Annual voice and data network costs 128,500 (enhanced corporate and teleworker infrastructure) Annual mobile technologies costs 25,000 (mobile worker technologies) Annual real estate costs 100,000 (provision of alternative public contact premises) Annual restructuring costs 128,250 (potential redundancy and regrading costs)

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Indicative additional service provided The table below summarises the outcome by reallocating productivity of each case 1, 2 and 3: time savings Modernised working scenario Payback Net annual Additional In addition to ‘red’ cost savings’ month benefit In hours In opportunities to save employee time were year 4 year 4 examined. These productivity (or ‘orange’) Case 1: 39 £435,000 0 savings were converted to a cash Property benefits only equivalent by applying the average salary Case 2: 29 £735,000 0 rates for the relevant job functions. These Full case with orange productivity benefits converted to monetary value benefits differed from the red benefits in Case 3: 37 £480,000 17,160 that they represent an opportunity for Full case with orange productivity Hillingdon to do something with this benefits converted to hours saved time. At one extreme this could mean fewer people providing the same service at the other it could mean the The potential benefits of each case were same people providing more service profound – although to differing degrees. to citizens. Taking Housing’s annual gross office accommodation costs of £1,300,000:

Benefit category Year 1 Year 2 Year 3 Year 4 • Case 1 represented an ongoing saving Hours Hours Hours Hours Restructuring – additional 6,380 9,570 12,760 12,760 of 33% on office accommodation costs person hours from year 4 onwards Reduced commute time – 2,200 3,300 4,400 4,400 • Case 2 represented an ongoing saving additional person hours of 56% on office accommodation costs Sub Total – modernised 8,580 12,870 17,160 17,160 from year 4 onwards working benefits • Case 3 represented an ongoing saving Additional hours converted 4.9 7.4 9.9 9.9 to full time equivalents(*) of 37% on office accommodation costs from year 4 onwards and 3% productivity gain from mobile and (* Based on 1728 working hours per • In case 1 orange productivity benefits teleworking staff annum, ie 36 hours X 48 weeks) were not included; in cases 2 and 3 some productivity benefits were Case 1: Property benefits only Modernised working - scenarios included modelled and outcomes • In case 2 orange productivity benefits The most significant red benefit identified were evaluated in financial terms • In case 3 orange productivity benefits A number of scenarios were modelled Case 1: Property benefits only Year 1 Year 2 Year 3 Year 4 were evaluated in terms of additional which are summarised in the following £ £ £ £ hours of service available table and described below. Each scenario Total financial benefits 123,656 578,054 703,920 703,920

represented a separate run of the model Total costs 978,000 268,500 268,500 268,500 where some of the input assumptions Cumulative financial benefits 123,656 701,711 1,405,631 2,109,551 were changed: Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 Annual net benefit -854,344 309,554 435,420 435,420 ROI on financial benefits 13% 56% 93% 118% Financial break even month 39

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at step 1 was the potential to reduce between the employee and Hillingdon Case 2: Wider Business Case Year 1 Year 2 Year 3 Year 4 office accommodation costs. This was (for all grades below manager it was £ £ £ £ examined in detail during the diagnostic assumed that the employee takes all of Total financial benefits 233,032 983,530 1,120,496 1,131,596 phase (step 2). Case 1 examines the ROI this benefit). Total costs 1,058,000 396,750 396,750 396,750 associated with this option. Payback Cumulative financial benefits 233,032 1,216,563 2,337,058 3,468,654 In case 2 all productivity time saving 1,058,000 1,454,750 1,851,500 occurred just after three years and annual Cumulative costs 2,248,250 benefits were converted to cash at the Annual net benefit -824,968 586,780 723,746 734,846 net benefits from year four onwards were appropriate average salary rate. The ROI on financial benefits 22% 84% 126% 154% £435,000. The table below describes the outcomes were: Financial break even month 29 outcome from this scenario in more detail.

In this case break-even moved from month This shows that the upfront cost of 39 to month 29 and recurring net benefits e-working was estimated to be £978,000 Case 3 Full case with service Year 1 Year 2 Year 3 Year 4 increased to £734,000 in year 4. This with a net cost of £854,000 in year 1. The productivity benefits £ £ £ £ illustrated (in financial terms) the Total financial benefits 134,756 600,254 748,320 annual net benefit is positive in each 737,220 significant additional benefits from the Total costs 978,000 268,500 268,500 268,500 subsequent year rising to £435,00 in extra initiatives considered in this case. Total hrs for additional services 4,400 17,160 17,160 17,160 year 3 and beyond. The ROI percentage However, it is unlikely that Hillingdon Cumulative financial benefits 134,756 735,011 1,472,231 2,220,551 value is cumulative benefits divided by would attempt to convert productivity Cumulative costs 978,000 1,246,500 1,515,000 1,783,500 cumulative costs, ie 100% ROI indicates time saving benefits into cash. More likely Annual net benefit -843,244 331,754 468,720 479,820 break even. ROI on financial benefits 14% 59% 97% 125% would be case 3, where red benefits are Financial break even month 37 evaluated in terms of cash savings and Case 2: full case with monetary Cumulative additional 4,400 21,560 38,720 55,880 orange benefits are evaluated in terms of productivity benefits service hrs additional hours of service available for value added services. In addition to consolidation of the Financial break-even was achieved in THE ROI BUSINESS CASE FOR CRM property portfolio based on modernised Case 3: full case with service month 37 and the annual recurring net AND E-SERVICE DELIVERY – mobile working practices the business case productivity benefits benefit by year 4 was £480,000. In HOUSING SERVICES was extended to include: addition this case ‘freed’ 56,000 working The results from this case were: hours in productivity gains over the four INTRODUCTION • Improved employee retention achieved years (at a recurring annual rate of 17,000 as a result of an enhanced work-life- hours) that could be made available to balance for employees. It was assumed Building on the results from the e-service improve service quality to Housing’s that this benefit would manifest itself delivery and citizen contact diagnostics, tenants and other service users’ services. in a reduced staff turnover rate with a the purpose of the ROI was to estimate Of course the managerial challenge of resulting impact on recruitment costs. the impact on Hillingdon of implementing ensuring that this ‘freed’ time is used The ultimate improvement to the CRM and moving routine enquiries effectively remains, and this is an issue retention rate was assumed to be towards web-based citizen self-service. that needs to be addressed to ensure that phased in over four years. benefits are actually realised. • Restructuring and redesign of However, there was less clear cost data supervisory processes were assumed to available in this area and more uncertainty be phased from year 2 onwards. about the impact of the benefits identified • Reduced commute time for managers by the diagnostic. Therefore the initial achieved through flexible working work in developing a business case arrangements. It was assumed that focused on establishing an hypothesis as these time savings are shared 50:50 to what impact was hoped for, how it may

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be achieved and what some of the key impact of allocating more staff to deal increasing or decreasing depending on the average time to deal with a query? risks appeared to be. To do this a cause with the backlog of unresolved queries. arrival rate of new queries and the rate at Irrespective of why this time may be and effect map was developed to make This results in fewer staff available to deal which they are being resolved. What decreased, what is the likely impact on the explicit the key relationships impacting the with new queries. Consequently, as staff tends to happen over time is that demand backlog of unresolved queries? An initial likely outcome. are reducing the backlog of existing is fairly constant and, with a response is that as queries are dealt with queries, new queries are being added to fixed allocation of resource between faster, other things being equal, this the same backlog. This compensating the backlog and new queries, a more would lead to a fall in the backlog. or less constant level of unresolved However, this means that the equilibrium queries results. described in loops B1 and R1 is disturbed, Conventions used in the diagrams therefore consideration needs to be given What is the impact of reducing the to any knock on effects this may have. In the diagrams that follow a ‘+’ indicates that the variable at the head of the arrow moves in the same direction as the variable at the foot of the arrow while a ‘-’ indicates that the variable at the head of the arrow moves in the opposite direction to the variable at the foot of the arrow (all other things being equal). The direction of the arrow shows the hypothesised nature of causality. For example an increase in Average touch unresolved queries (foot of the arrow), other things being equal, will lead to an increase in the average response time (head of the arrow). time per query

Where feedback loops are formed in the diagram ‘B’ indicates a balancing loop + where increasing (or reducing) any variable in the loop then working round the chain – R1 of cause and effect leads to a compensating decrease (or increase) in the same Unresolved variable next time round. Conversely ‘R’ indicates a reinforcing loop where any queries – staff on new queries increase or decrease in a variable is amplified by working through the chain of cause Staff responding to and effect. new queries – B1 Staff on backlog staff deal with backlog + + Hypothesis for impact of CRM and Unresolved – e-services deployments on service queries Average capacity, aggregate demand and response time service quality

B1 Staff on Initially, consideration was given to the backlog way unresolved queries are dealt with. As staff deal with backlog they build up, the response time to the + + customer gets longer (ie time to deal with the query increases) thus more staff are Average allocated to dealing with the backlog of response time unresolved queries. This is captured in the first balancing loop shown right.

behaviour shown in the reinforcing loop Next, consideration was given to the means that, overall, the backlog may be

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behaviour shown in the reinforcing loop Next, consideration was given to the means that, overall, the backlog may be

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Average touch with promptly. Thus the overall demand service which reduces customer time per query increases as more new queries emerge satisfaction, with potential implications which once again adds to the backlog. for discretionary demand. + – R1 A further complication was added when So, it is important that improvements in Unresolved – staff on new queries considering the impact on the workforce customer satisfaction achieved through + queries Staff responding to of high levels of unresolved queries. reduced touch time are not lost through a New queries new queries Customers become agitated and staff are combination of excess growth in – Staff on put under increasing levels of stress. If aggregate demand and deteriorating + B1 backlog maintained over a period of time this is quality of service. staff deal with backlog likely to lead to a deterioration in the B2 + + expectations and demand service provided to customers and a Finally consideration was given to the Customer Average reduction in the level of customer mechanism by which average touch time expectation response time satisfaction. would be reduced through + implementation of CRM processes and – This analysis suggests that reducing touch introduction of self-service channels on Customer time in a stable environment produces at the web. In doing this it was recognised satisfaction least three effects: that these initiatives eventually have the desired effect on touch time. However, in 1. As the average query handling time is the short term these new ways of working reduced unresolved queries are reduced mean that the workforce have to learn The model developed so far shows the again. As customers are served faster, their and customer satisfaction improves. new skills, which can actually increase impact would be entirely positive, satisfaction levels increase and, over time, 2. This can lead to an increase in demand touch time during this transition period. however demand had not been introduced they come to expect this faster service as which increases the backlog of queries This means that there may actually be an to the model at this stage. Loop B2 the norm. Consequently, they are more and reduces customer satisfaction. initial deterioration in service to customers illustrates a counter-effect that could likely to come back with another query in 2. In the meantime an increasing while the new processes are ‘bedded in.’ potentially increase the backlog once the expectation that this too will be dealt backlog can lead to a deterioration of

Average touch time per query – R1 + Unresolved – R1 – staff on new queries Unresolved queries + queries – staff on new queries Staff responding to Staff responding to New queries new queries new queries + – Employee stress Staff on + B1 – backlog B3 staff deal with backlog B1 Staff on B2 + + service level expectations and demand backlog – Customer Average staff deal with backlog Quality of service to expectation response time + + customer + – Customer Average satisfaction + response time

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Hypothesis for impact of CRM and Potential impact of CRM and e-services e-services deployments on service on citizen satisfaction capacity, aggregate demand and service quality

New CRM and Customer e-services e-working Satisfaction Desire initiatives + CRM process + deployment Self-service channel deployment + – Risk 1 + Employee familiarity with working processes – – Average touch – Learning Risk 2 time per query

+ – R1 Unresolved – staff on new queries + queries Staff responding to Time New queries new queries + – Employee stress Staff on + B1 backlog In conclusion this means it is important to e-services initiatives into (orange) B3 staff deal with backlog B2 + + service level understand the capacity of the workforce, productivity time savings. However, the – expectations and demand Customer Average to manage customer expectations and the implementation was not defined Quality of service to expectation response time quality of service provided. sufficiently at the time of this analysis to customer + obtain accurate costs of implementation, – Customer Investigating The Extra Capacity consequently the analysis focused on the satisfaction + Generated By CRM And E-Services: productivity benefits ie this was an ‘R’ analysis rather than an ‘ROI’ analysis. This To manage these risks Hillingdon wanted provides the basis for planning The desired impact of reduced touch time, reduce customer satisfaction. Furthermore to estimate the additional service capacity enhancements to service, actively achieved via the introduction of self- customer satisfaction could, potentially, it was capable of generating through managing expectations and considering service through the web and CRM, will be fall to levels below the initial levels modernisation. An ROI model was the value by comparing costs, when known, to reduce average response times for achieved prior to the introduction of e- ideal vehicle to do this as it provided the to anticipated service improvements. dealing with queries and improve services (see line ‘Risk 2’ below). These means of translating the CRM and customer satisfaction. However, the hopes and fears are captured in the impact of increasing demand following diagram. anddeteriorating service levels could

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The following table describes the SUMMARY – COMPLETING THE initiatives and benefits analysed for CRM BUSINESS CASE and e-service delivery. 1. The business case for modernised Case Initiative Description Benefits working practices shows a payback of Case 1 CRM • Single point of contact • Faster service for citizen just over three years on a cashflow basis for citizens • Reduced touch time for (ignoring any benefits of charges to

• Consolidated public Hillingdon capital). The total cost, both capital and contact centre • Consistency of service operating expenditure, over four years is Case 2 e-services • Citizen self-service • Faster service for citizen • Online transactions • Reduced touch time for approximately £1.8m. By the end of this • E-speed Hillingdon period annual net benefits of something

• Disintermediation • Consistency of service like £435 to £480k were estimated with Case 3 CRM and Multi-channel customer Faster service for citizen • • up to an additional 17,000 hours per e-services contact facility • Reduced touch time for Hillingdon annum (or approx 10 FTE’s) of value- • Consistency of service added service time made available. Case 4 Regional • Consolidation across • Economies of scale 2. CRM and e-service delivery were less

consolidation local authorities • Adoption of best practices well defined and pilots are now under

way that should allow a better These four cases were considered in the regional delivery of services has not been estimation of costs. However, a order suggested as this represents the sufficiently well defined. This provided an compound growth in productivity of most likely sequence of implementation. estimate that could be tested in pilots to approximately 6.3% is estimated from Cases 1 to 3 are self-explanatory, case 4 determine the actual level of additional full implementation of these solutions considers the potential impact of regional capacity generated through the which would result in an additional consolidation across local authorities introduction of these initiatives. Once 51,000 hours of time (or 33 FTE’s) for beyond Hillingdon, for example the West these estimates are validated via pilots value-added customer service. London Alliance. they may be compared to the cost of implementation to assess value for money. This case study has demonstrated the value The scenarios modelled and outcomes They can then be used to set policies to of a rigorous structured approach to manage citizen expectations (and future identifying the costs, benefits and risks The results from the analysis indicates that demand) as well as desired service levels. associated with implementing modernised between 2.3% and 6.3% of the total All three components: capacity, demand working practices and e-government. The workforce can be freed up from the management and quality of service should process of articulating and quantifying the introduction of the initiatives described in then form part of the performance business case was an invaluable step in cases 1 to 3. Case 4 was not estimated as review system. understanding and communicating the opportunities at stake. This analysis can Case Impact by year 4 Equates to Case 1: CRM only 12 people freed up to 2.3% of the total workforce now be extended to all other service areas deliver value added and will form the basis of setting and service (approx) managing targets for real improvements in Case 2: e-service only 21 people freed up to 4.0% of the total workforce services to citizens. deliver value added service (approx) Case 3: CRM and 33 people freed up to 6.3% of the total workforce e-service deliver value added service (approx) Case 4: Regional Not estimated, as solution not scoped. Clearly potential e-service for additional benefit

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consolidation local authorities • Adoption of best practices well defined and pilots are now under

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Author biographies Author biographies

Michael R. Bloomberg fields at city high schools throughout Dave Carter strategic business support, project and The 108th Mayor of the City of the five boroughs. He also served on the Director of the Manchester Digital programme change management with New York boards of 20 different civic, cultural, Development Agency following on from London authorities; as well as an MBA educational and medical institutions, being Acting Head of the Economic from Warwick Business School and He was born in 1942 to including: the High School for Initiatives Group within the Prince2 qualification. middle-class parents in Economics and Finance; Lincoln Center Regeneration Division of Manchester Medford, Massachusetts, for the Performing Arts; Metropolitan City Council. where his father was the Museum of Art; Police & Fire Widows’ & bookkeeper at a local dairy. Children’s Benefit Fund; SLE (Lupus) Over the past 15 years he Joan Clos Mayor Bloomberg’s thirst for Foundation and Prep for Prep. has been involved in Mayor of Barcelona since 1997. information and fascination with developing projects utilising technology was evident at an early age, In 1997, Michael Bloomberg published information and In 1999 he was elected for and led him to Johns Hopkins University, his autobiography, Bloomberg by communication a four-year term, and was where he parked cars and took out Bloomberg. All of the royalties from technologies in the context of urban then re-elected in the loans to finance his education. After his sales of the book are donated to the regeneration. municipal elections of May college graduation, he gained an MBA Committee to Protect Journalists. 2003. Joan Clos was born at from Harvard and in the summer of Parets del Vallès in 1949. He is a doctor, 1966 he was hired by Salomon Brothers having taken his degree in medicine to work on Wall Street. Pacey Cheales with the first graduating class from the Monica Berneström Corporate Programme Manager for the Universitat Autònoma de Barcelona, and As a young trader, he created a financial Head of the Department TIME (Telecom, Hillingdon Improvement Programme studied at the Hospital de Sant Pau, one information computer that would collect IT, Media and Entertainment) at the (HIP) of Barcelona's modernist architectural and analyse different combinations of Economic Development Agency in the jewels. After a period working as an past and present securities data and City of Stockholm. Pacey Cheales is a corporate anaesthetist, he decided on a radical deliver it immediately to the user. In Programme Manager for change of course in his professional life, 1982, Bloomberg LP sold 20 Member of the working the Hillingdon Improvement moving into epidemiology, community subscriptions to its service; 20 years group ‘IT and Democracy’ Programme (HIP), where he medicine and health resource later, Bloomberg LP has over 165,000 run by the Swedish is leading the management. He took part in the subscribers worldwide. As the business Government. Member of implementation of flexible working and movements of anti-Franco professionals proved its viability, the company the Council of Mobile e-delivery programme for the council. and health services reform. During the branched out and in 1990 Bloomberg LP Services. Chairman of the national He developed the initial Modernisation post-Franco period of political transition entered the media business, launching a council of ‘e-services and growth’ Business Case in Housing Services in he worked in primary healthcare with news service, and then radio, television, 2001, and worked with Cisco Systems in a group of doctors who defended internet, and publishing operations. 2002 to create the final case study that the political transformation of the was referenced in the UK Government’s country as a means of reclaiming He funded relief programs for victims of National e-Strategy for Local professional dignity. domestic violence in New York City, Government in late 2002. Since then, in sponsored the Children’s Health Fund's partnership with Cisco, he has presented Joan Clos has led the process of Mobile Medical Unit, which serves the Hillingdon’s Modernisation Business transformation from the industrial city children of homeless families, and Case at both national and regional born in the 19th century towards the supported construction of new athletic seminars. He has 17 years’ experience in ‘city of knowledge’ of the 21st century.

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The future of welfare, cohesion and Director for external relations at the City Dubai Ideas Oasis and in November he Committee and then became President opportunities for Barcelona, destined of Stockholm’s Executive Office directly was given the additional role of Vice- of the State Office for Housing and to be a natural leader in southern subordinate to the CEO. President of Real Estate and Facility Urban Development. In 2002 he was Europe, depends on its excelling in Management of the Free Zone. In Adviser to the Executive Board of KGHM the new economy. March 2002 he was again promoted to Polish Cooper Ltd. the role of Chairman of the Board of Saeed Al Muntafiq Media City. Director General of the Dubai Anita Ferm Development and Investment Authority In April 2002 Saeed Al Muntafiq was Steve Palmer Director of Education Administration, appointed Director General of the Dubai Head of Technology and Stockholm Saeed Hussain Al Muntafiq Development and Investment Authority Communications, Hillingdon graduated from Schiller where he now heads a team that is Council Anita Ferm has for many International University, UK, responsible for advancing the economic years been Director for the with a Bachelor of Arts development and growth of Dubai. Steve Palmer is Head of Stockholm Education Degree in International Technology and Communications at Administration with Relations with Psychology. He also Hillingdon Council in London and he has responsibility for upper attended the Program Management a brief for E-Service delivery both within secondary schooling, local-government Development at Harvard Business School Slawomir Najnigier the Borough and as part of its regional administrated adult education, Swedish in USA. Deputy Mayor of Wroclaw working. He was elected to be Chairman language tuition for immigrants, and of SocITM London Branch in November special schools for people with learning Saeed Al Muntafiq has worked for In 1983 Slawomir Najnigier 2001 having been its Secretary for the difficulties. Anita Ferm has also held Emirates Petroleum Products Company graduated from the previous 2 years. The broad issues of positions directed towards adult, (EPPCO) for a period of 11 years. While Department of Fundamental citizen access and identification are key technical and vocational education at at EPPCO, he spent two years at Caltex Technology Issues at the and his Communications brief includes the Swedish Educational Agency and at Malaysia as the Assistant Director of Wroclaw University of management of the Council’s Press and the Swedish Ministry of Education. Marketing. In December 1999, he joined Technology and in 1988 he graduated Public Relations functions as well as the the Dubai Technology, E-Commerce and from the Faculty of National Economy at Council’s ICT infrastructure. As a Media Free Zone as Project Manager to the Wroclaw University of Economics. geographic area Hillingdon is currently compile the strategy for Dubai Internet Following this he worked as chairman of enjoying unprecedented commercial Per-Olof Gustafsson City and in May 2000 was promoted to a computer company and since 1990 he investment but it also suffers from Deputy Managing Director, The City of the role of Chief Executive Officer of has been a councillor and a member of significant deprivation. The Borough is Stockholm’s Economic Development Dubai Media City While at DMC, Saeed the Municipal Government of Wroclaw, multi-cultural and reflects the residency Office and Chairman of IT-forum (an Al Muntafiq achieved numerous responsible for finances and ownership of Heathrow within its Boundaries. organisation for cooperation and successes including attracting 400 transformations. From 1992-1993 he development in the IT-sector in the companies ranging from broadcast to was Undersecretary of State at the Prior to his move into a Corporate level Stockholm region) publishing, formulating the Freedom of Ministry of Physical Planning and role he had a 20 year background at Expressions Laws and engineering the Construction and in July 1994 he senior level in delivering and supporting Some examples of Mr infrastructure and legal landscape for became Deputy Mayor of Wroclaw, front line service delivery including Gustafsson’s earlier the media industry to operate in Dubai. responsible for the municipal economy. refuse collection, street cleaning, vehicle positions are Controller, In August 2001 Saeed Al Muntafiq was During the flooding in Poland in 1997 maintenance and engineering. He has Deputy IT Director and appointed Chief Executive Officer of he headed the Wroclaw District Flood also managed a diverse range of

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environmental issues including working definition of strategy projects, Adrian Slatcher proposals on the reform of Taxation. with the Coroner’s Service, Infectious marketing and organisation regarding ICT Development Officer of the Since 2001 he has been Minister for Disease Control and other similar, the automobile sector and distribution Manchester Digital Development Agency Economy and Employment. glamorous, functions. He has acted as in Italy, Switzerland and Germany. and poet an adviser to the Law Society Local Government Group and has chaired a Two years later, in 1991, he moved from Since 1999 Adrian Slatcher number of policy development teams. the consultancy field to direct has worked in developing, Simon Willis He lives in Essex, is married with two management entering the Piaggio researching and Director, Public Sector, Internet Business grown-up children, and has two Group, initially as General Director of disseminating ICT in Solutions Group Europe, Middle East & grandchildren. He has the rare Motovespa S.p.A. in Madrid, and then universities, local Africa Cisco Systems, Inc distinction of being one of the select as Senior Vice-President of non- government and the voluntary sector. few Leyton Orient Football Club European activities, establishing and He has published poetry and short Simon Willis came to Cisco supporters and enjoys travel and managing companies in China, India, stories widely. He is now ICT after 15 years of work in reading in his spare time. Indonesia and South America. Development Officer of the Manchester government and e-business. Digital Development Agency He has held various senior At the beginning of 1995 he entered management and policy Omnitel as Chief Operating Officer and positions in the UK Government, Silvio Scaglia became CEO in July 1996. During this including private secretary to a Minister Chairman of e.Biscom, Milan period Omnitel underwent its Senator Gunnar Uldall of State, head of operational reform at transformation from start-up to Minister for the Economy and Employment the Department of Social Security, head Silvio Scaglia was born in successful company, becoming the of pensions equalisation and Chief 1958 in Lucerne, second largest mobile operator in Gunnar Uldall was born in Executive of a national disability agency. Switzerland, and grew Europe and one of the five highest value Hamburg. After military He ran a high-level criminal justice up in Novara. Italian companies. service he studied Political operation and helped design the new Economics. In 1962 he financial services regulatory regime for After graduating from the Polytechnic At the end of July 1999, Silvio Scaglia became a member of the the UK Treasury. He also headed University of Turin in 1983 with a degree founded e.Biscom with Francesco CDU and in 1966 a management numerous UK delegations to the EU, UN in Electronic Engineering, specialising in Micheli and has been CEO ever since. In consultant. From 1966-1982 he was a and OECD. After leaving Government he telecommunications and computer April 2003 he was also appointed Member of Hamburg City Council and worked for a large systems integrator, science, he worked for a short period in Chairman of the Group. e.Biscom’s then Member of the German Parliament. where he focused on IT integration Aeritalia Spazio on the data transmission success comes from the development of From 1996-2001 he was spokesman on and e-business work specialising in system between the tethered satellite a new generation of broadband economic policy for the CDU/CSU payment systems, security and market and the Space Shuttle. telecommunications services, based on Parliamentary group. In 1996 he infrastructures. He has run the the innovative Fiber To The Home and IP published ‘Die Steuerwende – Eine neue European Public Sector Group at Cisco’s In the autumn of 1983, he moved into technology, allowing the company to Einkommenssteuer, einfach und gerecht’ Internet Business Solutions Group for the consultancy field, becoming part of become Italy’s main alternative carrier. (‘The Tax Reform, a new income tax, three years. Arthur Andersen Management Today e.Biscom employs over 1,850 simple and just’ ) Knauer Verlag, München Consulting, transferring in 1986 to people and has total revenues of about Simon Willis has a first-class degree in McKinsey & Co, and subsequently in 237 million euros. Gunnar Uldall has won many awards – Politics, Philosophy & Economics from 1989 to Bain Cuneo e Associati. During the 1997 Deutscher Mittelstands Prize Balliol College, Oxford. this time, he was mainly involved in the and the 1998 Wolfram-Engels Prize for

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Cisco Internet Business Solutions Group

As a long-term trusted business and technology advisor, Cisco Internet Business Solutions Group (IBSG) helps customers maximize their return from technology investment. IBSG business and industry experts bring customers the latest industry trends and technology innovations, sharing Cisco and industry best practices. The group engages globally with Cisco’s largest customers to help refine their business processes to increase productivity, reduce costs, and create new revenue streams. IBSG offers business and internet expertise across seven vertical industries, including the public sector. It works with more than half the largest organisations across each vertical industry and all of the top ten global telecoms service providers.

Simon Willis is Director of the Public Sector team, Internet Business Solutions Group, Cisco Systems, Europe, Middle East and Africa. He works as trusted advisor at the most senior levels of large public-sector organisations where transformation is imminent or there is the potential for ground-breaking projects likely to be emulated by others. These projects include tax, education and payment systems along with mass client service and claims-processing organisations. Other projects range from integrated justice and security initiatives, large procurement operations as well as whole-government programmes and those seeking seamless government and transformed service delivery across their full range of services. Among his team’s current engagements are public- sector projects in the Netherlands, Belgium, Spain, Italy, Germany, France, UK, Russia, Jordan, Lebanon, Turkey, Morocco, Romania, Poland, Bulgaria and Hungary.

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Cisco Internet Business Solutions Group

116 Thought Leaders Essays from urban innovators Edited by Simon Willis

The ideas explored in this book chart the emergence of Monica Berneström, Stockholm a political and economic phenomenon – the city as the Michael R. Bloomberg, New York new connected republic of the 21st Century. Simon Willis, Dave Carter, Manchester Director of the European public sector team in Cisco Internet Pacey Cheales, Hillingdon Business Solutions Group, has collated essays that show how Joan Clos, Barcelona different cities, at the cutting edge of the process, are grap- Per-Olof Gustafsson, Stockholm pling with the various stages of connectivity. Anita Ferm, Stockholm Saeed Al Muntafiq, Dubai There are striking differences between their experiences. Slawomir Najnigier, Wroclaw But they also have certain things in common. They are driven Steve Palmer, Hillingdon by their citizens’ demands for political re-engagement and Adrian Slatcher, Manchester for better, more responsive, more accessible city services. Silvio Scaglia, Milan They are also driven by competitive forces. As they look out- Gunnar Uldall, Hamburg side their nation state boundaries to define what they Simon Willis, Cisco are going to be in the future and how they are going to be successful in the newly emerging global environment. The successful city learns not just how to work differently within and between its departments and agencies but how to collaborate with its inhabitants on the project and make them part of the success of their own city – thus giving ownership of the city back to its citizens.

Price £9.99 and u14 ISBN 0-9546445-1-4