Frost & Sullivan’s Double 4

4 Roles for Industry and 4 Types of Business Models

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J just found a webinar by Frost & Sullivan on Smart City. Second half is a bit “IBM loaded” as one of the participants is Karen Parrish, VP Industry Solutions Public Sector IBM. Anyway – the presentation (till chart 16) gives an excellent overview of the current status of the global SC discussion.

In the introduction they said that SIEMENS just recently organized a City Conference with 29 mayors of major cities (e.g. London) to share insights on the dynamics of the eco-system Smart City. Two things I find interesting here:
a) Siemens is only one of an increasing number of technology providers that massively approaches City as a customer
b) It is a change of paradigm that cities leave their enclosure and exchange with industry.

Well, back to the webinar… I just quickly summarize what I found really interesting. Frost & Sullivan identify:

​Authorities independently build infrastructure and provide services. They operate and maintain the SC solutions.​
Model mainly found in the Middle-East​ ​​
​Authorities appoint trusted planner to build infrastructure, mostly in particular area and over a defined period of time. Reason to do so is municipalities need for private finance. After completion and return on investment the operation is handed back to municipality.​
​Model is seen in Atlanta, done by GE​ ​​
​Authorities allow any qualified company to build infrastructure and provide services. The city imposes regulatory obligations!!!
Model is implemented in Amsterdam with 71 partners in approx 30 projects
City appoints a trusted partner to develop the cities infrastructure and services. This partner operates and manages the solution(s) – The City planner has no further role. According to F&S most PPP are based on that model.
Model is operated by IBM in Rio.

​ ​Project integrators offer pre-packaged platforms, that bring together various sectors in a holistic end-to-end integration
Representatives are: IBM, Oracle, Accenture, Siemens ​​ ​
Network Service Provider:​
NSP offer collaborative networks, data analytics and solutions that connect people, assets, systems, products by leveraging their networking and M2M capabilities
Representatives are: Cisco, Verizon, Ericsson, AT&T
​​ ​Pure-Play-Product Vendor
​ Traditional product suppliers that provide hard ware that operate as main nodes of connectivity (e.g. smart meters, automated switches, voltage regulators).
Representatives are: Schneider-Electric, Siemens, Honeywell, ABB, Eaton
Managed Service Providers
The MSP do on-site consulting and offer 24/7 monitoring and management of the SC solution.
Representatives are: IBM, Serco, SAIC, Infosys

The technology providers we see in the SC context are participants of the sectors IT, Energy & Infrastructure, Automation & Building, Security, Telecom. Although most players still have a very clear CORE competence or sector competence there obviously is a trend to “Convergence of Competition”, due to the “Convergence of Technology”. Most players move towards the “Point of Convergence” , F&S calls it, to deploy one-stop-shopping for the customer city.

So far – at least that is my impression – they are all investigating this new territory of connectivitiy on technical possibilities and intercompany activities as well as the new openness of governance. A bit strange though, as cities are probably the oldes market places one can think of!

for Cities​ ​
1) Create SC stakeholder groups that controll all the various bodies and parties involved
Example: UK created a Ministry of Cities; Amsterdam created the Amsterdam Smart City Foundation
2) Encourage open collaboration (so far not a core competence of municipalities!)
Example: Chicago has open data platform and encourage entrepreneus to exploit that data and create applications
3) Build Digital Infrastructure

    for Private Sector ​

1) Evaluate the role and position that is close to your core competence
2) Build a City as a Customer Strategy, create a specific team
3) Identify potential partnerships, business models and consortia
4) Develop capabilities in data analytics and cloud-based-services either within own or third party portfolio
5) Develop service as a business model

Take away for both sides in my understanding is to create an organisational structure that can facilitate the cross segmented approach and help materialize a Smart City agenda.


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