INTERNET OF THINGS The New Government to Business Platform A REVIEW OF OPPORTUNITIES, PRACTICES, AND CHALLENGES © 2017 The World Bank Group 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved. This volume is a product of the staff of the World Bank Group. The World Bank Group refers to the member institutions of the World Bank Group: The World Bank (International Bank for Reconstruction and Development); International Finance Corporation (IFC); and Multilateral Investment Guarantee Agency (MIGA), which are separate and distinct legal entities each organized under its respective Articles of Agreement. We encourage use for educational and non-commercial purposes. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Directors or Executive Directors of the respective institutions of the World Bank Group or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. Rights and Permissions This work is product of the staff of the World bank with external contributions. The find- ings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they repre- sent. Nothing herein shall constitute or be considered to be a limitation upon or waive of the privileges and immunities of the World Bank, all of which are specifically reserved. ii INTERNET OF THINGS The New Government to Business Platform A REVIEW OF OPPORTUNITIES, PRACTICES, AND CHALLENGES 1 Table of contents ACKNOWLEDGMENTS  4 Ludwigsburg  44 Mannheim   46 EXECUTIVE SUMMARY  9 Reutlingen  48 IoT in Action (Main Findings)  11 Estonia  50 The IoT Toolkit – What Governments Can Do   13 Kazakhstan (Astana)  54 Leadership/Policy  13 Strategy and Implementation  14 Canada  58 Capacity and Engagement  15 Mississauga  60 Ontario Tire Stewardship (OTS)  62 A Note on the Methodology  15 Ontario - Technical Standards and Safety Authority  64 INTRODUCTION & METHODOLOGY  19 Background  19 United States of America   66 Study Approach  20 Japan (Kobe City)   67 Jurisdictional Scan  20 United Arab Emirates (Dubai)  69 Literature Survey  21 India (Rajkot)   70 Marketplace Survey  21 RECOMMENDATIONS AND TOOLKIT WHAT IS INTERNET OF THINGS?   25 FOR GOVERNMENTS  75 Elements of an IoT System   25 Leadership/Policy  75 Sensors  25 Proactive Policy  75 Networks (or Connection Technologies)  25 Vision/Strategy Alignment  76 Analytics  26 Strategy and Implementation  76 The Analog Components of IoT  26 Sandboxes to Test Policy/Technology  76 IoT Challenges  26 Public-Private Partnerships and Platforms  77 Technology   26 Independent Coordinators  77 Privacy and Security   27 Local Business Models  78 Interoperability of IoT Systems  27 Develop Infrastructure for IoT  78 Market Readiness  27 Capacity and Engagement  78 Reliability  27 Engagement, Awareness, and Trust-Building  78 Develop IoT Capacity Within and IOT ON THE GROUND  31 Outside Government  78 United Kingdom  32 Standardization  79 Milton Keynes  35 Bristol  37 LOOKING AHEAD  83 Germany  40 BIBLIOGRAPHY  85 Hamburg Port  42 2 APPENDIX A. IOT QUESTIONNAIRE  93 APPENDIX B. IOT SYSTEMS, PLATFORMS, AND APPLICATIONS  97 APPENDIX C. IOT STANDARDS AND CONSORTIA  103 APPENDIX D. IOT IN SOCIAL MEDIA, SOCIAL GROUPS, MEETING GROUPS, ALLIANCES  105 APPENDIX E. ADDITIONAL NOTES ON IOT IN GOVERNMENT   107 3 Acknowledgments T his publication was funded by a data innovation matter expert on IoT. Nexleaf Analytics, a not-for-profit grant from the Trust Fund for Statistical Capacity firm in California, USA, undertook a marketplace survey. Building (TFSCB), a multidonor trust fund man- Stefan Beissweinger and Asset Bizhen provided local aged by the Development Economics Data Group (DEC- knowledge and expertise from Germany and Kazakhstan. DG) at the World Bank. The Innovations in Development Jeevan Mohanty provided information on the current work Data (IDD) pilot window of TFSCB supports testing and in India. The project team would also like to thank Yeraly scaling of new approaches, technology, and collaboration Beksultan in Kazakhstan for his feedback and input. Maja for more effective and efficient data collection, manage- Andjelkovic, Carlo Maria Rossotto, Syed A. Mahmood, ment, and use to build the capacity of government agen- and Trevor Monroe were the peer reviewers of the report. cies, and other development stakeholders, to monitor and Ganesh Rasagam and Dahlia Khalifa provided overall accomplish the Sustainable Development Goals (SDGs). guidance. Alla Morrison and Grant James Cameron served as the liaison with TFSCB. Several people provided input and contributed to the report. At the World Bank, the project was led by Prasanna The authors of the report would like to also acknowledge Lal Das. Srikanth Mangalam, Public Sector Innovation the significant contribution of experts and practitioners Specialist, was the lead consultant. Dr. Mehmet Yuce, (listed in the table below) from outside the World Bank Professor at Monash University, Australia was the subject who provided input to the report. Name Organization City/Country Shawn Slack City of Mississauga Canada/ Mississauga Sven Tretrop City of Mississauga Canada/ Mississauga Wilson Lee Technical Standards and Safety Authority Canada/ Toronto Roger Neate Technical Standards and Safety Authority Canada/ Toronto Andrew Horseman Ontario Tire Stewardship Canada/ Toronto Carmelina Macario Resource Productivity and Recovery Authority Canada/ Toronto Mary Cummins Resource Productivity and Recovery Authority Canada/ Toronto Mohammed Abdulla Shael AlSaadi City of Dubai Dubai/ United Arab Emirates Siim Sikkut Ministry of Economic Affairs and Communication Estonia (Government of Estonia) Anna Piperal e-Estonia Estonia Doris Pold e-Estonia Estonia Peep Poldsamm Estonian IoT Association Estonia Margus Püüa Estonia e-Governance Academy Estonia Uuno Vallner Estonia e-Governance Academy Estonia Alanus von Radecki Fraunhofer Institute Germany Steffen Braun Fraunhofer Institute Germany Nora Fanderl Fraunhofer Institute Germany Constanze Heydkemp Fraunhofer Institute Germany Petra Steffens Fraunhofer Institute Germany Mike Weber Fraunhofer Institute Germany Jens Tiemann Fraunhofer Institute Germany Christine Brockmann Rhine Neckar Metro Germany Thomas Langkabel Initiative D21 and Microsoft Germany Germany Inka Woyke City of Reutlingen Germany/ Reutlingen Christian Hammel Technologiestiftung Berlin Germany/ Berlin Andrea Brauning City of Ludwigsburg Germany/ Ludwigsburg 4 Name Organization City/Country Georg Pins City of Mannheim Germany/ Mannheim Nina Kruppenbacher City of Mannheim Germany/ Mannheim Banchhanidhi Pani City of Rajkot India/ Rajkot Taisuke Matsuzaki Kobe City Japan/ Kobe City Stephen Ullathorne Gas Tag United Kingdom Adrian Webb Gas Tag United Kingdom Leigh Greenham Council of Gas Detection and Environmental Moni- United Kingdom toring Helen Mainstone Department for Digital, Culture, Media and Sport United Kingdom (Government of U.K.) Amy Taylor Digital Catapult United Kingdom Idris Jahn Digital Catapult United Kingdom Matthew Fox Future Cities Catapult United Kingdom Tom Leaver Future Cities Catapult United Kingdom Isabella Myers Independent Consultant United Kingdom Lorraine Hudson The Open University United Kingdom Theo Tryfonas University of Bristol United Kingdom Rebecca di Corpo University of Bristol United Kingdom Sophie Ross-Smith University of Bristol United Kingdom Nina Purcell United Kingdom Food Standards Agency (Govern- United Kingdom ment of U.K.) Kevin O’Malley Bristol City Council United Kingdom/ Bristol Penny Evans Knowle West Media Centre United Kingdom/ Bristol Geoff Snelson City of Milton Keynes United Kingdom/ Milton Keynes Vijay Sankaran IBM United States of America V. K. Shankar Intel Corporation United States of America Sundip Doshi AerNos United States of America Olzhas Sartayev JSC «Astana Innovations» Kazakhstan Zhanat Dubirova Olexand Chuprina Bakhytzhan Ualikhan Aktore Barlybayev Azat Kudaibergenov Department of Information Technologies of Astana Tursyngali Zhakenov Astana Passenger Transport Office Esenaliyev Anuarbek Astana Energy Department Arsen Kozhanov Department of Public Utilities of Astana Alzhan Abdrakhmanov JSC «National Infocommunication Holding «Zerde» Baysatov Yerbol Astana City Construction Management Rinat Ramazanovich Housing Inspectorate of Astana Miras Maratovich Management of natural resources and regulation of nature management in the city of Astana Kairat Akhmetov Korkem Telecom Asset Issekeshev Mayor of Astana Malika Bekturova Deputy Mayor of Astana Serik Kurmanov JSC «Kazakhstan Industry Development Institute» Tangul Abdrazakova JSC «Kazakhstan Industry Development Institute» Vladimir Turekhanov Kazakhstan Association of Automation and Robotics Kurmangaliyeva Bikesh Darovna JSC «Kazakhtelecom» Arman Doskaliyev Chief (or deputy) physician City polyclinic #7 Ivan Urievich LLP «Astana Tazartu» Orakbay Nurlan Kalabayevich Ingundinov Nurlan LLP dispatch center of state entity «Astana Passenger Transport Office» 5 6 EXECUTIVE SUMMARY 7 8 Executive Summary T AT A GLANCE he Internet of things (IoT), or its sibling, Internet of everything (IoE), has gone from being a buzzword to almost an imperceptible part of our lives. It is so prevalent that we barely notice it anymore. Our phones Still early days for IoT in government contain a variety of sensors that constantly record and transmit enormous amounts of information without us noticing or being aware of it; our houses and cars are Underdeveloped policy and regulatory “smarter” than ever before; our public infrastructure (street frameworks lights, elevators, escalators, roads) contains myriad sensors that are essential for their maintenance and our safety; Unclear business models, despite strong and factories—even those producing low-tech products— value proposition have begun to embrace the “industrial Internet” (powered by IoT). Businesses, especially in developed countries, have Clear institutional and capacity gap in been quick to seize the potential of IoT. A recent story in government AND the private sector the New York Times (1) about the evolution of GE from a manufacturing company to a digital one describes IoT as “the next battlefield” for companies and cites and projects Inconsistent data valuation and the possibility of a hundredfold growth in the data flowing management from machines by 2020. In a similar vein, Michael Porter wrote recently in the Harvard Business Review (2) about Infrastructure a major barrier “smart, connected products”—made possible by vast improvements in processing power and device miniatur- Government as an enabler ization and by the network benefits of ubiquitous wireless connectivity that have unleashed a new era of competi- Most successful pilots share common tion. characteristics (public-private partnership, local, leadership) “I see the Internet of Things as a huge trans- formative development, a way of boosting productivity, of keeping us healthier, making transport more efficient, reducing energy needs, tackling climate change. We are on the brink of a new industrial revolution and I want us... to lead it.” — David Cameron, former prime minister of U.K. (116) Governments have been slower than the private sector to respond to the IoT phenomenon. Policy makers must, however, contend with growing pressure to become more innovative, open, collaborative, evidence based, and participatory (3) as the expectations of business and society change, technology becomes more pervasive, the old policy regime starts to show cracks, and efficiency and 9 optimization become ever more necessary. In regulatory helping make firms more competitive through better use enforcement, for example, where factors such as incon- of IoT technologies. Much of this effort has, however, been sistencies, variability, and poor interoperability across geared toward using IoT within business operations (with- government departments have a clearly detrimental in manufacturing operations, for example, or embedding impact on business, there is growing, though by no means sensors within products to make them more appealing uniform, recognition that IoT can help reap significant and useful for consumers). public benefits such as convenience, safety, and efficien- cy. In sectors such as transport, environment, water, and What has been relatively less explored is how govern- energy there are numerous examples of applications and ments and businesses can collaborate to mutually reap programs where IoT serves as a central stitching element the potential benefits of IoT while grappling with the for government and business. Sensors mounted on lamp- numerous challenges that new technologies inevitably posts that measure and share environmental or pollution pose. Governments are keen to learn how IoT may make data (4) (Chicago and Barcelona, for example), GPS de- their economies more competitive or make it easier to vices that track and provide real-time updates on transit manage businesses within their jurisdiction. Businesses, (5) (Mississauga in Canada), smart meters that monitor too, need government support to test new technologies energy consumption (6) (Amsterdam, Seoul), and sensors within “living” conditions—and for which the policy, that detect volumes in garbage bins (7) (Milton Keynes in capacity, financing, and the business model environment the United Kingdom) are now fairly mainstream in many are still unclear. city governments, with others planning similar pilots (for example, smart street lighting in Astana, Kazakhstan). Implementing IoT within government settings is easier said than done, however; there are many unanswered Many governments accept that they have a role to play questions for both governments and businesses. Can IoT in establishing and supporting an environment in which make it easier to do business in a jurisdiction by reducing new technologies such as IoT can emerge, flourish, and the cost of regulatory compliance while simultaneously grow. Initiatives such as Plattform Industrie 4.0 (8) in providing assurance to government that regulation is Germany, the Digital Single Market Strategy of Europe having its intended effect? How can the government offer (9), the U.K. Digital Strategy (10), the Smart Nation a platform for the private sector to test new application initiative of Singapore (11), the Digital India (12) program, of IoT in “living labs” or “sandboxes” within urban envi- and so on explicitly describe government commitment to ronments while letting government assess its own policy Figure 1. Jurisdictional Ranking on IoT Government – Business Systems Public- Top Private Business Jurisdiction Policy Capacity Data Tech Support Partnership Models Pilot Space Bristol Milton Keynes Reutlingen Hamburg Ludwigsburg Mannheim Astana Estonia Mississauga Kobe City Dubai Rajkot Note: Green = available and functional; yellow = partially available; red = not available; grey = not known. 10 preparedness to deal with the technical and nontechnical City Council, for instance, hopes to accept a cloud- implications of the introduction of new digital technol- based food safety management system (14) using IoT ogies? What are the risks for everybody involved? How sensor data as an acceptable means of fulfilling legal might such initiatives align with other related programs? requirements) In this study, we try to answer these questions by exam- There are few clear and enabling IoT-related policies ining the evidence in several cities around the world. The and regulatory frameworks in place yet. A few govern- report draws on lessons learned during the actual im- ments, such as the United Kingdom (10), India (12), and plementation of IoT-oriented projects (countries covered Singapore (11), have established broad-based strategic IoT include Canada, Estonia, Finland, Germany, India, Japan, policies as enablers for digital development. These policies Kazakhstan, Luxembourg, the United Arab Emirates, the cover issues such as the establishment of government United Kingdom, and the United States); it also draws on working groups to develop IoT-specific capabilities within several secondary sources, plus a review of the current IoT government; spaces for collaboration between academia, marketplace. businesses, and the public sector on IoT-based innovation; or broad strategic direction for the creation of IoT-based in- dustry. In most cases, however, IoT-specific policy remains IoT in Action (Main Findings) underdeveloped both in the area of IoT technology itself IoT discussions often get mired in mind-boggling numbers (such as data, security, interoperability, and availability of about the sheer growth in the number of IoT devices and radio frequencies) and with regard to IoT-enabling issues their potentially transformative impact. However, how do (such as the prescriptive requirements like physical inspec- these numbers correspond to the reality on the ground? tions, and so on). We sought to understand the experience of several cities and jurisdictions around the world to see how the reality Institutional capacity, competency, and education stacked up against a range of parameters. need upgrades. The IoT phenomenon remains poorly understood by both businesses and government agencies. Here are a few observations from our study. The term IoT is only beginning to seep into government consciousness in almost every city we studied, and there It is still early days for IoT in government and most seems to be a limited understanding of the phenom- initiatives are in the pilot or proof of concept stage. enon among businesses as well (15). In both the public While we observed notable exceptions (the integrated and private sectors, entities that were not “born digital” port management systems in Hamburg, Germany; smart continue to struggle to create digital/data competency energy monitoring systems in Canada, Estonia, and the within management and leadership layers, and much of United Kingdom; remote rail inspection and monitoring in the current training favors technical rather than executive Kazakhstan), almost all of the initiatives we assessed were skills. To tackle this, Estonia has made digital courses in either in early stages of implementation (garbage collec- secondary education mandatory. In the United Kingdom, tion in Milton Keynes, United Kingdom, for example) or the government provides funding and infrastructure to still on the drawing board (remote monitoring of elevators support government-business-academic partnerships for compliance in Ontario, Canada). Most pilots tend to through “Digital Catapults.” cluster around similar ideas, such as smart street lighting, traffic/transit management, solid waste management, Data are central to IoT, but there is inconsistent under- public safety involving security monitoring, and smart standing of data’s value and management. Cities such as energy systems. The reality of IoT implementation has not Bristol (16) and Milton Keynes (17) in the United Kingdom yet caught up with the hype around it. are embracing and further enhancing their open data initiatives by making data generated by IoT sensors avail- The value proposition of IoT for government to business able. Data hubs such as that of Milton Keynes accept data services is evident, but the business model is unclear. from a wide variety of sources (including sensors owned The business models for IoT within the government to by nongovernmental entities) and let businesses and civil business space aren’t fully established. We observed two society use the data to perform analytics and develop primary models: software applications. Bristol’s Data Dome lets users create IoT data-driven experiments. In addition, data from IoT ⚫⚫ IoT as a competitiveness differentiator (the City of can be an economic asset for both government and busi- Ludwigsburg’s (13) view of a smart city is to create an ness. For example, in Astana, Kazakhstan, implementing attractive and competitive economy through technol- fuel control sensors on garbage hauling trucks has both ogies such as IoT) triggered significant cost savings for the city and allowed ⚫⚫ IoT as a means to improve regulatory compliance the trucking company to control the theft of fuel. However, while reducing burden on businesses (the Cambridge this is an area of study that needs further exploration. 11 Figure 2. Bristol Data Dome, the United Kingdom’s Only 3-D 4K Immersive Data Visualization Space (left); Estonia’s X-Road Source: Bristol is Open Source: Siim Sikkut, Government of Estonia and very familiar with IoT-based solutions, but not IoT-specific infrastructure remains a barrier even in ad- always. vanced economies. Lack of advanced broadband technol- 2. Most IoT engagements are led by municipal/city/ ogies seems to be a concern even in major economies such subnational governments, not their federal coun- as Germany. The lack of consistent standards governing terparts. With a few exceptions, while national and IoT networks such as low-power wide-area networks can subnational governments support initiatives such discourage large-scale investments. Cities such as Bristol as smart city projects, they are not directly involved and Mississauga are trying to overcome such challenges by in IoT-based projects, especially those that focus constructing their own infrastructure and offering them to on business services (for example, inspections). In businesses for use. Canada, for example, the federal government has only recently referenced their intent to support IoT- The government often plays a crucial role as an IoT based technological innovations in the 2017 budget. enabler. Most successful IoT projects operate under However, Mississauga has pursued investments and public-partnership models. City governments act either implementation in IoT infrastructure for several years. (a) as enablers by creating independent innovation teams 3. The “smart city” tag is a major driver for IoT initia- designed to bring relevant stakeholders and businesses tives. Cities with an interest in smart city recognition together and facilitate active partnerships, offering inno- are pursuing several initiatives that involve the use of vation infrastructure such as “living labs” to private sector IoT-based technology solutions. In most cases, these providers; or (b) as “business partners” by helping develop projects focus on citizen service delivery, but many of business models, commercializing research, creating them also have a government to business (G2B) focus, technology infrastructure and/or “relaxing” regulatory either directly or indirectly. Stuttgart and Mannheim frameworks for testing and experimentation (for example, in Germany, Milton Keynes and Bristol in the United the Morgenstadt experiment in Reutlingen). Kingdom, Mississauga in Canada, Chicago in the United States, and Dubai in the United Arab Emirates Successful IoT pilots share several characteristics. We are making significant strides in this direction. Na- studied a range of cities as part of our study but observed tional governments such as those in Germany, India, a few common characteristics that distinguished most Kazakhstan, and the United Kingdom are actively successful pilots: supporting such initiatives through direct funding, competitions, and/or creation of innovation hubs. 1. Inspirational leadership is key to kick-start proj- 4. Independent, third-party “coordinators” play a ects, accelerate progress, and sustain momentum. key implementation role. Digital Catapult in the The mayors of Ludwigsburg, Bristol, and Astana, for United Kingdom, Fraunhofer Institute in Germany, instance, have taken a keen and personal interest in and Astana Innovations in Kazakhstan are examples IoT-based applications to address their vision and the of coordinating bodies that bring together different expectations of their citizens. In almost all cities we stakeholders, including governments, academia, and studied, the mayors’ individual motivation, commit- industry, to undertake proof of concept studies and ment, and inspiration were essential to catalyze IoT establish strategies for implementation. Government projects. In some cases, the mayors were tech-savvy typically funds these facilitators. 12 5. Focus on the local. Identifying local problems to solve, generating local solutions and content, and promoting local businesses help create more viable IoT-based solutions. Bristol, for example, has been able to successfully link its IoT projects to its vision and periodically engages its local community in gen- erating ideas and developing solutions. 6. Public-private partnerships can provide a sus- tainable model. Initial funding and support from governments supplemented by contributions from THE IOT TOOLKIT the private sector is the model favored by several jurisdictions. Milton Keynes, Mannheim, and Kobe City use a public-private model that supports greater Leadership/Policy initial involvement by the private sector with a view toward a “build to own” model, whereas Estonia and Proactive policy development the city of Mississauga are exploring a joint or inde- pendent ownership approach. Align strategic objectives The IoT Toolkit – What Strategy and Implementation Governments Can Do Establish sandboxes to develop pilots (test IoT, both as a technology and as a governance practice, is value proposition, technology, policies, still in its infancy, and while there is tangible excitement infrastructure, security) about it within both government and the private sector, the evidence of success is still patchy. Governments have Establish a coordination agency to manage a vital role in catalyzing the space and contributing as partners/leaders in the long term. and run pilots Based on the findings and the characteristics of successful Develop public-private partnerships and pilots, we present a conceptual toolkit containing ideas platforms and resources for government agencies that want to implement IoT-based initiatives within their jurisdictions. Research and develop “localized” business The toolkit has three pillars: models ⚫⚫ Leadership/policy Develop IoT infrastructure ⚫⚫ Strategy and implementation ⚫⚫ Capacity and engagement Capacity and Engagement Here are a few highlights from the toolkit for potential government action. Engage local stakeholders through education and outreach Leadership/Policy Develop IoT capacity within and outside the Proactively and iteratively engage in policy develop- government ment with an eye toward regulatory balance. Given the pace of disruption, the wide diversity of stakeholders, the cross-boundary nature of the digital economy, and Encourage standardization the scale of new digital services, it is important for policy makers to look beyond policy models that served the pub- lic sector well before the advent of the digital economy. Within the IoT policy environment, policy makers must consider trade-offs between increased efficiency, reduced privacy, equality, and security. They must also engage more closely with innovators, as Ludwigsburg has done, to define regulatory frameworks that are iterative rather than definitive. The EU Data Protection Regulation, for exam- 13 ple, is designed to foster the market and ensure a balance Identify and appoint “coordinators” to lead and between overregulating and underregulating. Also, while facilitate implementation (Digital Catapult, Astana national governments have a significant role to play in Innovations, Fraunhofer Institute). The successful creating a level playing field with respect to allocation of implementation of IoT-based solutions requires a phased spectrum, pricing, and policy reforms, the dynamic be- approach and the involvement of multiple stakeholders. tween them and subnational and municipal governments The appointment of independent third-party bodies as fa- is key, as illustrated in the case of Canada. cilitators and caretakers of IoT projects during the pilot and proof of concept stages appears to be an effective model Ensure alignment with a larger vision and strategic based on the experience of the studied jurisdictions. These objectives (IoT should support existing vision, not vice bodies, typically funded either directly by governments or versa). Clear and direct synergies should exist between through public-private partnerships, act as coordinators proposed IoT applications and the strategic objectives between academia, government, industry, civil society, of jurisdictions that implement IoT-based solutions. The and other stakeholders. They play the role of project most effective and organic institutionalization of IoT-based manager and are responsible for the design, planning, and initiatives are possible when they tie directly to strategic execution of pilots and proofs of concept and for scaled initiatives envisioned by mayors or leaders of jurisdictions implementation. The U.K. government has created Digital wherein real problems and challenges faced by citizens Catapult and IoTUK for this specific purpose. Fraunhofer and businesses are tackled using such solutions. The Institute in Germany has proactively taken this role and cities of Bristol (18) and Mississauga (19) have integrated has been building such partnerships. The mayor of Astana and entrenched their digital/IoT priorities as enablers for established Astana Innovations to play a similar role. achieving specific strategic initiatives identified by the mayor and city councils. Build public-private-academic partnerships and plat- forms. The development of public-private-academic part- Strategy and Implementation nerships appears to be a critical success factor. Agencies in Finland and Canada are looking to partner with academia Establish sandboxes for pilots and proofs of concept to and businesses to evaluate IoT solutions for remote mon- test policies and solutions. Sandboxes, facilitated directly itoring and inspections of technologies such as elevators, or indirectly by government, in the form of physical spaces, fire protection systems, and building management clusters, and/or environments for running pilots and systems. Kobe City in Japan has worked with a telecom proofs of concept, were the one constant in all the cases we provider to use a Bluetooth low energy (BLE) tag to track observed. Sometimes referred to as living labs or model the movement of elementary school children and ensure cities, these physical spaces provide facilities for setting up their safety. Dubai is working with a variety of service start-ups and building “models” ranging from simple IoT providers, including hospitals, auto manufacturers, and applications to even “model” cities. The Bristol Living Lab parking companies, to implement a child immunization is a place where citizens, artists, technologists, businesses, program. In each case, success hinges on the participation and public sector organizations come together to co-cre- of numerous stakeholders with different priorities, financ- ate ideas and to understand how digital technologies es, capacity, infrastructure, and constraints. A partnership, can be used to meet local needs. Similarly, Mannheim’s sometimes via the coordinator office described above, is Benjamin Franklin Village, once an old U.S. military base, usually the only way to bring these players together. has been converted into a sandbox district designed to test ideas for energy efficiency, smart grids, and electro-mo- Research and develop “local” business models. The study bility. These sandboxes are designed to test more than threw up several examples of incipient local business technology; they serve as test beds for governments to models for IoT. Estonia is considering “Data Corporations” test policy alternatives to accommodate and promote the with shared ownership across the value chain. The city of use of IoT by businesses. The Benjamin Franklin Village is Mississauga estimates that it saves Can$2 million annually helping develop ideas for procurement requirements that (20) through its own fiber-optic network. Astana Tazartu, incentivize IoT-based solutions, relaxation or exemption a solid waste management company established as a pub- of regulatory barriers such as licensing or inspections, and lic-private partnership, has installed fuel control sensors gathering stakeholder views on data privacy/ownership. in its vehicles that have helped reduce both its fleet size Other ideas being tested in similar sandboxes include pub- and associated fuel costs. Bristol is evaluating and testing lic perception and awareness, data stewardship, financial a range of sustainable business models over the next two models, business value propositions, competency, and years and eventually hopes to develop a suite of models skill requirements. that can be applied effectively in different contexts. Other jurisdictions are pinning their hope on the monetization of IoT data. 14 Develop own technology infrastructure (fiber optics, Participate in and support international standard- LoRaWAN, and so on) or establish “productive” partner- ization initiatives. IoT and its associated technological ships with telecom providers. Stable and reliable network innovations is still an evolving field. While numerous infrastructure is a prerequisite for IoT applications. Cities exciting and innovative devices, technological systems, like Mississauga have developed their own fiber-optic and infrastructure have been developed recently, their infrastructure and/or low-power wide area networks dependability (reliability, availability, resilience, main- (LPWAN) that support IoT devices. Others like Kobe have tainability, and use) is often questionable in the absence entered partnerships with telecom providers. Kobe is also of uniform standards. It is important that governments, building an IoT infrastructure using LoRaWAN technology, especially in developing countries, actively participate in taking advantage of its geography (the surrounding moun- the development of such standards to ensure that their tains help extend coverage as far as 15 kilometers). needs and constraints are expressed and addressed by the standards that do eventually emerge. Examples of stan- Capacity and Engagement dardization initiatives include RAMI 4.0 (Germany); IIC (Industrial IOT Consortium) (21); OCF (Open Connectivity Engage and partner with local communities through Foundation), which deals with Interoperability (22); and education and outreach. Community groups and citizens Project Haystack (23), which is a data consortium estab- can play an early and proactive role in generating ideas, lishing data standards for data models for hierarchical providing feedback and input for tackling sensitive and representation of devices. difficult issues such as data privacy and data ownership, and ensuring the long-term sustainability of such projects. The Knowle West Media Centre, an arts center and charity A Note on the Methodology based in Bristol, is a good example of using outreach and The information in this report is drawn from the following: education to develop trust and partnership with local communities. ⚫⚫ Field visits, phone calls, and email exchanges with city representatives and other stakeholders in govern- Develop IoT capacity within and outside government ment, industry, nongovernmental organizations, (work with academic and educational institutions to and academia across Europe, Asia, the Americas, and develop curriculum for current and future capacity Africa development). IoT-based applications and processes ⚫⚫ A literature review of the state of IoT technology and require a very different skill set and competency from the applications covering a range of public sources people managing them. For example, remote regulatory ⚫⚫ A brief survey of the IoT marketplace inspections may not require physical observations but ⚫⚫ Discussions during an IoT workshop organized in may call for strong analytical skills and capabilities. Several partnership with Astana Innovations in Astana, governments are already starting to engage and partner Kazakhstan with universities and academic institutions to develop appropriate curriculum, starting from early education all We recognize that our geographic coverage was limited the way through college/university studies. In the United (Asia, Africa, and Australia are blind spots, for instance). Kingdom, the Open University’s FutureLearn program has Our choice of cities was influenced by the responsive- created a free online module on smart cities that provides ness of city officials and by their current exposure in the foundational and high-level education and understanding existing research (we were keen to go beyond the “usual of smart city applications including IoT-based solutions. suspects” to see how deeply IoT may have penetrated Estonia’s e-school program ensures mandatory education into cities that weren’t necessarily the most visible early in digital technology for all students from an early age. adopters). That said, we would like eventually to validate the findings/recommendations in this report with a larger group of cities. In a future study, we would also like to engage more substantially with the private sector. An IoT questionnaire developed for this report is included as appendix A. 15 16 INTRODUCTION & METHODOLOGY 17 18 Introduction & Methodology The Organisation for Economic Co-operation and De- Background velopment (OECD) suggests, in the paper “The Internet The public sector is under pressure to become more of Things – Seizing the Benefits and Addressing the innovative, open, collaborative, evidence based, and par- Challenges” (28), that the potential benefits of IoT depend ticipatory (3) as the expectations of business and society on the capacity of innovators to conceive and implement change; technology becomes more pervasive, bringing a novel IoT approaches and on the capacity of governments new set of policy challenges; and efficiency and optimiza- to create policy and regulatory frameworks in key policy ar- tion become ever more necessary. Government directives eas. The report identifies the role that IoT can play in mak- such as the United Kingdom’s Growth Duty (24)—which ing public infrastructure such as roads and public spaces, mandates its departments to reduce administrative bur- emergency services, and safety and security more efficient, den and unnecessary regulations while promoting innova- and how IoT can help governments better achieve their tion, creating prosperity and opportunity for all—and the objectives and measure the effectiveness of their policies World Trade Organization’s Trade Facilitation Agreement and implementation. (25)—which sets out expectations among signatory na- tions to reduce bureaucratic delays and red tape’ and cre- For businesses, the value proposition of IoT lies in the de- ate a simplified, modernized, and harmonized process of velopment of new products/services, new business models trade to create competitiveness and growth—are among enabled by IoT data, new and more efficient business pro- the reasons driving the shift from “regulating innovation” cesses, easier regulatory compliance, development of new to “innovating regulation.” markets, commercialization of research, the creation of entrepreneurial opportunities, and ultimately the growth The emergence and application of advanced digital of sustainable revenue models. and smart technologies are key drivers of innovation in government. The United Kingdom’s Growth Duty requires While the potential for IoT in the public sector (29) ap- regulators to “consider how legislation and enforcement pears to be significant, the IoT phenomenon is still poorly frameworks could adapt to emerging technologies and understood by both businesses and government agencies. innovative business models.” Similarly, the EU’s Digital There are very few examples of large-scale IoT implemen- Single Market (26) strategy and supporting documents tation in the government to business domain, and there and policy papers (27) advocate the use of smart technolo- aren’t any established business and partnership models gy for the reduction of barriers to make the EU competitive for governments and businesses to collaboratively develop in the global market, including regulatory and adminis- strategies to either increase regional competitiveness or trative burdens. A recent story in the New York Times (1) reduce the regulatory burden on business using better about the evolution of GE from a manufacturing company IoT technology. The policy options for government remain to a digital one describes IoT as “the next battlefield” for unclear; the IoT marketplace remains abstract as well, companies and cites the possibility of a hundredfold with little public information yet on cheap, effective, and growth in the data flowing from machines by 2020. In a reliable technology options to collect/use/share IoT data similar vein, Michael Porter wrote in the Harvard Business or on the infrastructure requirements for evidence and Review recently (2) about “smart, connected products”— real-time data-based decision making and capabilities. made possible by vast improvements in processing power Governments need to bring their regulatory systems up to and device miniaturization and by the network benefits speed to meet the demands of the marketplace and create of ubiquitous wireless connectivity that have unleashed a the enabling environment for businesses. This includes new era of competition. not merely streamlining individual regulatory processes but also the enactment of new regulations, improvements ⚫⚫ Significant potential benefits of IoT, yet limited adop- in regulatory governance and delivery, and the creation of tion within governments platforms and environments for innovation and research. ⚫⚫ Policy response poorly understood ⚫⚫ Regulatory systems not up to speed The private sector has its own set of challenges. Despite ⚫⚫ Business models underdeveloped many evident benefits (reduced costs for maintenance, ⚫⚫ Limited understanding of the IoT marketplace 19 increased reliability and extension of lives of technologies, Jurisdictional Scan new products/services), commercial models for many IoT applications are still unclear, many technologies require We conducted interviews with experts and key stakehold- living test beds, and entrepreneurs need support engag- ers in government representing national, subnational, and ing the large number of stakeholders many IoT services local interests, academia, industry and industry associa- inevitably require. tions, and nongovernmental agencies. The interviewees were either directly or indirectly involved in IoT-related This report aims to fill this knowledge gap and to create strategies or applications in Canada, Estonia, Finland, greater awareness about the IoT phenomenon within Germany, India, Japan, Kazakhstan, Luxembourg, the Unit- governments. It captures the findings from the first phase ed Arab Emirates, the United Kingdom, and the United of the study based on a jurisdictional scan of a select list of States. Their responsibilities covered policy research and countries in Europe, North America, and Asia. policy making, economic development, information man- agement, inspections and enforcement, technology, law, We hope that this report will help governments better communication, and social media in a variety of areas: assess the potential/challenges of IoT and help them de- velop pragmatic digital strategies that drive the use of re- ⚫⚫ City infrastructure al-time data to monitor, manage, and proactively respond ⚫⚫ Building Infrastructure to infrastructure challenges; raise stakeholder (including ⚫⚫ Energy systems, including power generation, trans- investors’) confidence; and protect public interest. mission, heating, ventilation and air conditioning equipment, boilers and pressure systems ⚫⚫ Ports and port logistics, including transportation Study Approach ⚫⚫ Utility infrastructure, including water supply, water/ The information in this report is drawn from the following: wastewater treatment ⚫⚫ Public health and health care ⚫⚫ Field visits, phone calls, and email exchanges with city ⚫⚫ Environment, including solid waste management, air representatives and other stakeholders in govern- pollution, climate change, and so on ment, industry, nongovernmental organizations, ⚫⚫ Agriculture and academia across Europe, Asia, the Americas, and ⚫⚫ Rail and airport infrastructure Africa ⚫⚫ Public and commercial transportation ⚫⚫ A literature review of the state of IoT technology and applications covering a range of public sources The interviews were conducted using a standard interview ⚫⚫ A brief survey of the IoT marketplace protocol and covered a wide range of topics: ⚫⚫ Discussions during an IoT workshop organized in partnership with Astana Innovations in Astana, ⚫⚫ Legal and regulatory framework Kazakhstan ⚫⚫ Institutional capacity and governance ⚫⚫ Technology framework We recognize that our geographic coverage was limited ⚫⚫ Data ownership, privacy, security, and other gover- (Asia, Africa, and Australia are blind spots, for instance). nance issues Our choice of cities was influenced by the responsive- ⚫⚫ Value propositions and benefits for businesses and ness of city officials and by their current exposure in the governance existing research (we were keen to go beyond the “usual ⚫⚫ Financing and revenue models suspects” to see how deeply IoT may have penetrated ⚫⚫ Performance measurements into cities that weren’t necessarily the most visible early adopters). That said, we would like eventually to validate Please refer to appendix A for the detailed questionnaire. the findings/recommendations in this report with a larger group of cities. In a future study, we would also like to engage more substantially with the private sector. 20 Literature Survey Marketplace Survey The objective of this part of the report is to provide a litera- We conducted a review of the marketplace to examine the ture survey outlining applications, regulatory implications, potential of IoT for the public sector, to highlight examples and challenges in current IoT deployments and future of practical implementation, and to identify successful applications that can provide guidelines for government architectures for IoT based on experience in real-world authorities, policy makers, and business groups. There settings, with an emphasis on developing countries. The is a wide range of regulatory standards for wireless and intent of the review was also to prepare a compendium security considerations of wireless devices used to connect of IoT systems available in the marketplace applicable sensors. The developers of IoT platforms, therefore, should to the built infrastructure environments, including costs be aware of licensing and spectrum management restric- (where readily available), limitations, and advantages. An tions of such wireless devices. The report provides some assessment of costs was not possible within the scope of important information and future directions for govern- this project, in large part because IoT systems, especially ment authorities, business groups, investors, and start-ups in government settings, are not widely deployed—nor are to collaborate and complement each other integrating they well understood. With the exception of highly aggre- smart digital technologies with emerging IoT into public gated data on total cost of ownership in some instances, infrastructure. This report contains some social media no general information on costs was ascertained. activities involving discussions, announcements of IoT products, and applications. Such social groups have been the key platform for some IoT technology developments, generating business and providing benefits through discussions and regular meetings, with a wide range of community feedback. 21 22 WHAT IS INTERNET OF THINGS 23 24 What Is Internet of Things? T he terms Internet of things and its sibling, Internet network (WPAN) and wide area network (WAN) radio. of everything, are still relatively poorly understood Fixed-line telecommunications or Wi-Fi are generally or defined. The authors of a recent green paper on used to connect gateways to the cloud. Connections in IoT IoT gathered multiple definitions of IoT (30), which ranged may also be based on mobile technology, using a SIM to from “there is no universally agreed-on definition of IoT, just connect a device to a mobile network. as there is not universal agreement that the phenomenon itself is named IoT” (Microsoft) to “a precise, exclusive defi- Figure 3. IoT Connectivity with Three Main Technological nition of IoT is not necessary at this point” (U.S. Council for Components International Business) and “any definition should be flexi- Sensors Networks Analytics Collection Action Communication ble enough to adapt as IoT further develops” (Trans-Atlantic Business Council). Other definitions of IoT focused on the attributes of devices and networks. These included “as the growing range of Internet-connected devices that capture or generate an enormous amount of data every day along with the applications and services used to interpret, analyze, The hardware part of an IoT system can consist of simple predict and take actions based on the information received” devices with sensors that just transmit the data via the (IBM) and ‘‘term used to describe the set of physical objects network to the storage/processing infrastructure, or they embedded with sensors or actuators and connected to a can be smarter high-powered devices and processes. network” (Center for Data Innovation). Other definitions focused on the “smartness of things” (Center for the Devel- Sensors opment and Application of Internet of Things Technologies Sensors are electronic devices that sense the physical/me- at Georgia Tech) and the ability to “sense, log, interpret, chanical world to generate useful data that is transferred communicate, process, and act on a variety of information to the Internet through network technologies. A sensor or control devices in the physical world” (National Security “acquires a physical quantity and converts it into a signal Telecommunications Advisory Committee). suitable for processing (for example, optical, electrical, mechanical).” Sensor devices can be embedded in every- In this report, we use the term IoT to refer to a system day physical objects, public infrastructures, transportation involving connected devices that gather data, connect structures, and machines used in industrial buildings and with the Internet or local networks, generate analytics, factories. See appendix B for examples of sensor types. and (in some cases) adapt behavior/responses based on the data/analytics in the network. Networks (or Connection Technologies) Elements of an IoT System It is important to note that embedding a sensor in a physical There are three primary technologies behind IoT: object is not sufficient to form an IoT platform. As described earlier, an IoT sensor device should be able to transmit data ⚫⚫ Sensors over a network. Existing networks are categorized in terms ⚫⚫ Networks of the range, coverage, and distance that the communi- ⚫⚫ Analytics cation devices can communicate with each other. Digital infrastructure relevant to IoT also includes the following: The diagram below shows the connectivity structure of a typical IoT system with the three elements. Sensors collect ⚫⚫ Data centers data from physical or mechanical systems and transfer all ⚫⚫ Security and other services layers data to a central cloud system using networks and con- ⚫⚫ High-capacity computers nected technologies. Intelligent analytics are then applied to extract meaningful information. Wireless connections Investments in these areas are enablers of IoT growth. Com- from sensors to a gateway are established using short- mon network technologies are described in appendix B. range wireless technologies such as wireless personal area 25 Analytics IoT Challenges The billions of sensor devices connected through the For all its promises, IoT implementation still faces a host of Internet generate a huge amount of digital data (so-called technical and nontechnical challenges. In this section, we big data) that are generally stored in the digital domain briefly summarize a few of these. using cloud computing services via the Internet. Advanced analytics helps generate meaningful information and Technology actionable intelligence from these huge streams of data. This is an exciting opportunity for policy makers, govern- IoT tools and technologies are now cheaper, faster, and ments, and industrial business owners to utilize analytics more easily available than ever before. However, there are to predict, optimize, and improve business and operations still very few examples of large-scale IoT implementations of public infrastructure. in government. There are many technical challenges: Several big data processing tools, efficient databases, ⚫⚫ Network coverage: The required mobile and wireless streaming analytics engines, and platforms have been networks should provide continuous coverage, stable, developed to support IoT deployments in real-world and reliable connectivity despite the huge demand applications. Popular analytic approaches include deep coming from increased device connections. Limited learning, crowd analytics, anomaly detection engines, coverage is often the cause for reduced benefits from tracking algorithms, and pattern recognition and detec- IoT applications. tion techniques. In addition, artificial intelligence models ⚫⚫ Power consumption: IoT applications depend on de- have been developed for the public or users to interact vices that operate using electrical energy. Low power with IoT technologies. Augmented reality and virtual real- consumption is therefore very important to facilitate ity are other techniques that can be considered for human continuous operation of these devices. Newer IoT IoT interactions. Edge computing is an emerging data an- devices and applications have begun to explore and alytic approach that helps with localized decision making, exploit energy harvesting techniques to achieve long- reducing latency/increasing responsiveness, resiliency to term operation of battery-powered IoT devices. network failures, and so on. Despite these developments, ⚫⚫ Privacy and security: IoT devices may suffer from it is safe to say that much of IoT data remains underused. privacy and security vulnerabilities. Existing solutions often are not sufficient to address these challenges. ⚫⚫ Interoperability/standards: Different IoT systems The Analog Components of IoT should coexist without affecting each other. There Technology by itself does not necessarily lead to growth and are, however, only limited wireless standards available prosperity, and this is especially true for digital technologies to address the connectivity and interoperability of the such as IoT. The 2016 World Bank World Development Report huge amount of different IoT devices being deployed. on digital dividends notes that digital economy initiatives ⚫⚫ Analytics: As described above, IoT technologies pro- require a strong foundation, consisting of regulations that duce a massive data volume that is diverse, random, create a vibrant business climate and let firms leverage unprocessed, and unorganized. This presents new digital technologies to compete and innovate; skills that challenges and opportunities, and existing analytic allow workers, entrepreneurs, and public servants to seize techniques often are not able to process, aggregate, opportunities in the digital world; and accountable institu- and analyze this volume of diverse data. tions that use the Internet to empower citizens. Privacy and Interoperability Market Reliability security of systems readiness 26 Privacy and Security Market Readiness Privacy and security are fundamental IoT challenges, and The lack of market readiness may be one of the biggest data protection and cybersecurity are essential compo- barriers in commercializing IoT products and services. nents of any IoT strategy. Many IoT devices still suffer from Applications that do not require or expect government security vulnerabilities and aren’t necessarily designed to intervention, such as in Industry 4.0, have been widely protect the privacy or integrity of business networks. The adopted. By contrast, despite the innovative IoT technolo- Mirai bot that took advantage of vulnerable devices such gies being produced, the IoT market remains underdevel- as digital cameras and DVR players (31) and led to one of oped and unready at scale when government partnership the largest denial of service attacks ever is one example of or action is needed or inevitable. An uncertain business the many existing IoT devices that still suffer from one or environment is the most likely culprit for this. The lack of more fundamental weaknesses: regulations, policies, or other government indications have left entrepreneurs and businesses unsure of how potential ⚫⚫ The inability to update the firmware remotely business could be affected in the future by later govern- ⚫⚫ Generic passwords that can be easily guessed ment action. ⚫⚫ No user nudges to manage their devices for security An analogy can be drawn with the consumer IoT market. It is important to establish forward-looking regulatory There are multiple brands of personal activity monitors standards to guard the security and privacy of data. Most and there is an active market. There are no regulations be- of the current solutions to these issues rely on higher-level yond the traditional electronic safety certifications that are computational and memory-intensive processes that tend required, so the consumer is creating the market through to be limited in IoT devices. Significant hardware support, the demand for these products. Because the government such as encryption, authentication, and attestation, and is involved with the G2B or B2G IoT space, the government software support, such as run-time self-healing archi- needs to define the market through regulations and tecture, are required for future IoT devices. It is critical to policies. Since those are not defined yet, the risk is not ensure that only authorized users are allowed to access the sufficiently reduced or defined for businesses to act (28). data and that the systems are developed with processes and standards and monitored to ensure bad actors cannot Reliability exploit the system to access the data or damage the sys- tems, particularly when the IoT systems feed back into the The typical consumer electronics life cycle of 2-4 years physical world. is not feasible for large-scale IoT. The costs and logistics of updating/redeploying any pieces of an IoT system every 2-4 years can potentially outweigh the value for all Interoperability of IoT Systems stakeholders. Any IoT solution should have a clear annual As IoT technologies continue to develop, it is crucial to maintenance contract (AMC) in place to support the de- enable seamless interoperability between IoT systems. vices and services over the lifetime of the system. An AMC Lack of interoperability can lead to disruptions in the net- will incentivize the system provider to provide devices that work, poor data exchange, and suboptimal performance. will be able to withstand external conditions, their sensors Currently, the interoperability of existing standards is still remaining calibrated to ensure proper measurements. unproven, or still being formulated, making it extremely difficult for IoT devices to function across ecosystems. However, given the rapid development/iteration/contin- Several industry consortia, such as Wi-SUN, the Industrial ued growth of IoT technology, a strategy can be developed Internet Consortium (32), Open Interconnect Consortium that will support the updating/redeployment of the (22), and the Thread Group, have been formed to address system as new technologies and new approaches are de- existing interoperability issues in IoT systems. veloped to ensure the system is not obsolete and the value from the application is not lost. 27 28 IOT ON THE GROUND 29 30 IoT on the Ground W hat does IoT on the ground look like, especially United Kingdom when it comes to government to business ser- Milton Keynes vices? What are the goals of different agencies Bristol trying to implement IoT-based solutions? What is working and what isn’t? How close is reality to the hype? How does Germany the private sector contribute to these initiatives? Or does it? Which technologies have been harder to adopt than Hamburg Port Authority others? How are governments grappling with policy impli- Ludwigsburg cations? And many more questions like these. Mannheim Reutlingen In this section, we describe the experience of several cities and jurisdictions around the world. The “cases” aren’t Estonia comprehensive, but we have tried to convey a reasonably complete picture based on field visits and interviews with Kazakhstan a variety of stakeholders in each city. In each locale, we Astana examine the business case for IoT implementation and the government’s preparedness for it, look at the actual solutions that different agencies tried to implement, and, Canada finally, try to identify possible lessons learned and results/ Mississauga next steps. Technical Standards and Safety Authority, Toronto Our choice of cities was influenced by the responsive- Ontario Tire Stewardship ness of city officials and by their current exposure in the existing research (we were keen to go beyond the usual United States suspects to see how deeply IoT may have penetrated into cities that weren’t necessarily the most visible early adopt- Japan ers). Eventually, we would like to validate the findings/rec- Kobe City ommendations in this report with a larger group of cities. United Arab Emirates Dubai India Rajkot 31 United Kingdom The Business Case AT A GLANCE “A world-leading digital economy that works for everyone” is the stated goal of the U.K. Digital Strategy (33), which “sets a path to make Britain the best place to start and Policy references grow a digital business, trial a new technology, or under- U.K. Digital Strategy take advanced research.” The strategy commits Britain to Technology and Innovation Futures 2017 “work closely with businesses and others to make sure the benefits and opportunities are spread across the country.” Implementing agencies/programs IoT is an important part of this approach. As the govern- IoTUK ment’s chief scientific advisor Sir Mark Walport noted in a Innovate UK 2015 GO-Science report (34), “We will only get the best from Catapults these technologies if researchers, business leaders and govern- ment work together, to ensure they deliver the greatest possible benefit to the public.” Focus areas Future cities Health “The opportunity to develop new technologies for smart cities in the UK is massive. We want Data IoTUK Nation Database to make sure that we are at the forefront of this digital revolution …” Technology —Rt. Hon. David Willetts, Minister of State for Supporting low-power networks Universities and Science (117) Financing Department of Business, Industry and Sport IoT in Action (U.K. government), academic institutions, Innovate UK is an executive nondepartmental public body and industry sponsored by the U.K. Department for Business, Energy, and Industrial Strategy (35). Innovate UK (36) has set up Capacity development and now oversees 11 catapults. Catapults (37) are not-for- Best Practice Guides profit, independent technology and innovation centers that connect businesses of all sizes with the United King- Related intiatives dom’s research and academic communities. Multiple ongoing projects Each catapult specializes in a different area of technolo- gy. All offer specialized facilities to help businesses and Jobs researchers solve specific problems. This can help them Not known develop new products and services on a commercial scale. Both the Digital Catapult (38) and Future Cities Catapult (39) focus on supporting businesses and cities through digital innovation. Digital Catapult launched Things Connected (40) in September 2016, an innovation support program targeting U.K. businesses that wish to leverage the capabilities of LPWAN technologies. Things Connected provides start- 32 ups, small businesses, and developers improved access Powered by the Digital Catapult and the Future Cities to LPWAN networks that cover London. It supports the Catapult, IoTUK (41) is a national program of activities that deployment of sensors, applications, and services and en- seeks to advance the United Kingdom’s work in the IoT ables businesses to develop IoT products and services. The space and increase the adoption of IoT technologies and initial London-based network will use 50 LoRaWAN base services throughout businesses and the public sector. It stations scattered across the city to provide a LPWAN test was launched as part of the government’s above-described bed. Things Connected also aims to include other evolving investment in IoT. LPWAN technologies in its rollout. Areas of potential application include infrastructure provision, traffic and The IoTUK program has the following aims: transport services, energy management, and environmen- ⚫⚫ U.K. academic research excellence in IoT tal sensing. To deliver Things Connected in the capital, ⚫⚫ More U.K. research and development (R&D) in IoT Digital Catapult funds the project in collaboration with applications industry partners and academia. ⚫⚫ U.K. business competitiveness in international IoT markets In 2014/15, the Digital Economy Unit (then under the ⚫⚫ Adoption of IoT applications by the U.K. public sector Department of Business, Industry and Skills), Innovate UK, and industry the Engineering and Physical Sciences Research Council, and other partners, in informal consultation with industry For this report, we examined the following programs and the research community, developed a business case for supported by IoTUK: research and innovation projects using IoT, focusing on the public sector (health and cities). The March budget of 2015 ⚫⚫ City of Milton Keynes set aside £40 million for such IoT projects, of which £32 mil- ⚫⚫ Bristol City Council lion was allocated to the Department of Business, Industry ⚫⚫ Digital Catapult and Sport and the remaining to the Department of Health ⚫⚫ Future Cities Catapult as sponsors for projects in health and social care. The £32 ⚫⚫ Bristol Is Open million (41) helped establish the IoTUK (41) program. ⚫⚫ University of Bristol In addition to the programs supported by IoTUK, and “We will only get the best from these tech- to get some perspectives directly from industry and nologies if researchers, business leaders and businesses, we also reviewed the IoT experience of Gas Tag Limited (42) and CogDEM (43). Gas Tag is a start-up government work together.” company experimenting with an RFID tag-based technol- ogy that helps validate the credentials of engineers and then prompts them to record data and photos relating to all gas works they undertake, including installations and maintenance. CogDEM, the Council of Gas Detection and Monitoring, represents the gas detection, gas analysis, and environmental monitoring industry. 33 Challenges/Lessons Learned ⚫⚫ A grassroots-driven agenda in Bristol appears to be a critical success factor for that city, which has a particularly According to the report Mapping the IoT Nation, published evolved citizenry. The lack of adequate pilots and case by IoTUK (44), the IoT marketplace is currently dominated studies appears to inhibit any significant progress with by large, multinational businesses with deep pockets, key policy topics such as regulatory implications on data assertive marketing messages, and incumbent market privacy, ownership, and sharing. share to protect. There is an overreliance on scale econom- ⚫⚫ No concrete examples were observed that indicated ics as a success factor in selecting IoT partners, which keeps evidence of reduced burden reduction on businesses by costs of entry unreasonably high for small players. A lack government agencies, nor were there examples wherein of standards and interoperability further restricts market regulators used IoT solutions as tools for alternate com- activity to players with scale big enough to set their own pliance verification. The Cambridge City Council, a local standards. Thus, the organizations proving successful are authority responsible for food safety inspections, has ap- those for whom there is a structural disincentive to dis- proved the use (14) of an IoT-enabled monitoring process rupt—and consequently the development of cross-cutting as an acceptable food safety management system for technology, platform, and infrastructure plays is held back. compliance purposes; however, the widespread accep- tance of this process across the country is not evident. Several examples of good practices were noted in the examined programs (more details in the individual case Results/Next Steps studies that follow): The government has taken a long-term view of the IoTUK ⚫⚫ The creation of individual catapults and independent program and acknowledges that some of its impacts facilitation bodies such as IoTUK have helped bring ac- might not be realized until beyond the lifetime of the pub- ademia, industry, community, and government together. lic investment. Nevertheless, the Department for Digital, ⚫⚫ Establishing data hubs such as the one in Milton Keynes Culture, Media and Sport (DCMS), which is now coordinat- (that is like X-Road in Estonia) are intended to create an ing the program, is planning an evaluation of the program efficient flow of data. and has commissioned a scoping study and baseline. This ⚫⚫ Bristol’s early investment in building its own fiber-optic will help clarify program aims and develop metrics. infrastructure resonates with an identical strategy for the city of Mississauga in Canada. ⚫⚫ Visualizing and prioritizing the use of IoT solutions to address immediate needs of the city, including creating growth using a top-down approach, demonstrate the importance of vision and leadership as a key element for success. 34 Milton Keynes Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Milton Keynes is one of the fastest growing cities in the United Kingdom and is recognized as an economic success story (45). The city has identified the challenge of support- Policy references ing sustainable growth without exceeding the capacity U.K. Digital Strategy of the infrastructure while meeting key carbon reduction MK Vision 2050 targets as a key issue. MK:Smart was established in 2014 as a large collaborative initiative, partly funded by HEFCE Implementing agencies/programs (Higher Education Funding Council for England) and led MK:Smart by the Open University, with the aim to develop innovative solutions and to support sustainable economic growth in Focus areas Milton Keynes. MK:Smart has a core steering group and is Transport, energy, water management supported by academia, business partners, and the Digital and Future Cities catapult programs. Data MK Data Hub IoT in Action Central to the project is the creation of the MK Data Hub Technology (17), which supports the acquisition and management Public and private sensors of vast amounts of data relevant to city systems from a Weather, traffic, pollution, water, variety of sources. According to Geoff Snelson, director of temperature, humidity, soil sensors strategy and futures at the city of Milton Keynes, “under- standing data is at the heart of all that the city is doing.” The MK:Smart collaboration partners have invested in Financing building the physical installation for the data hardware Public-private partnership and built the software as part of the data hub, with a considerable amount of computing power based in Milton Capacity development Keynes itself. Open University/massive open online courses; enterprise training “Understanding data is at the heart of all that Related initiatives the city is doing.” Smart garbage bins, water monitors, electric vehicles, motion maps for public transit MK:Smart was among the first city-based projects (46) that tried to understand data at the heart of a smart city. Jobs The data hub receives static open city data together with Not known dynamic data from sensors owned by individuals, gov- ernment, and private firms: data about energy and water consumption, transport data, data acquired through sat- ellites, social and economic data sets, and crowdsourced data from social media or specialized apps. Building on the capability provided by the MK Data Hub, the project is innovating in the areas of transport, energy, and water management, tackling key demand issues. Anyone can establish an account and access the data for use, though some data are restricted to specified users. Examples of current applications of IoT are shown in figure 4, panel A. 35 Figure 4. MK Data Hub A: Current Applications B: Data Policies, Quality, and Trading Source: Geoff Snelson, “Creating a Smart City Innovation Eco-System in Milton Keynes.” The scope of the MK:Smart programs exceeds purely tech- Challenges/Lessons Learned nical solutions and incorporates a number of educational, business, and community engagement activities. Through Data are at the heart of the MK:Smart program, and there its Apex Suite (47), a business engagement platform is still considerable ongoing discussion about the most that includes both physical facilities (based at University appropriate policies to manage the access and use of data. Campus Milton Keynes (48)) as well as remote facilities Currently, the data providers are setting the data policies allowing access to the MK Data Hub, the city has engaged and the users sign up to the terms and conditions attached with over 90 small and medium enterprises (SMEs) to help to the individual data sets. The data hub creates a plat- them form for integration. Some data sets may be for “closed” collaborations. While a flexible data-trading model exists, ⚫⚫ develop case studies involving smart city solutions; it is not currently being used. Service level agreements are ⚫⚫ understand how connected projects can help them; being established for IoT to ensure data quality. A tech- ⚫⚫ understand how complex and big data can be of use nical management forum deals with issues and concerns to them; and regarding interoperability. Data-related issues, including ⚫⚫ build a service management platform allowing privacy and security, are currently being handled using a commercial activities (for example, buying and selling permissions and restrictions–based approach. data sets) to be integrated into MK:Smart’s MK Data Hub, organizing hackathons, presenting short courses Results/Next Steps (for example, the Postgraduate Certificate in New Enterprise Creation (48)), and working with students The city is committed to providing funds for MK Data Hub who are looking to transform their ideas and concepts for the next two years. Technology partners currently match into working solutions. this funding through in-kind contributions. Major corpora- tions, including those in the auto sector, have made long- In addition, MK:Smart has teamed up with industry term commitments as well. Developing investable business to deliver the Urban Startup Lab (49), a course that will models, delivering benefits at scale, and expanding use bring entrepreneurs together to create new products and cases across more services are important ongoing priorities. services in a smart cities context.  A major deployment of 2,500 traffic movement and parking video sensors to provide full coverage of the city is now Through a citizen innovation (50) platform, there is an funded and under way. This will be one source of data for ongoing citizen engagement drive toward looking at IoT- an integration platform at the heart of a new mobility as a based innovations to making Milton Keynes and smarter service test bed project. At the moment, the more engaged city. and interested departments in government are those with focuses on environment, transport, health, and social care services. This study did not make a formal assessment of the results of the work that has been carried out, but we do see the opportunity for a follow-up exercise of consultation with all the target stakeholders in the future. 36 Bristol Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Bristol, home to almost 450,000 city residents and more than a million people across the broader metropolitan region, was recently voted the best place to live in the Policy references United Kingdom (51). It has the most skilled workforce U.K. Digital Strategy of any English city, and it boasts two world-class univer- Bristol Resilience Strategy sities. The Bristol region has the largest cluster for tech Bristol Corporate Strategy and digital employment in the United Kingdom outside of London. The area is favored by start-up businesses and Implementing agencies/programs has particular strengths in software development, data Bristol Is Open management, and analytics. Connecting Bristol According to Kevin O’Malley, Bristol’s city innovation team manager, “Bristol is a smart, inclusive and playable city that Focus areas is organically advancing as opposed to having the smart Connected homes city agenda dictated from the top down.” The mayor’s vi- Public health sion is linked to the city’s corporate strategy, which in turn Community-based resilience projects is supported by the City Innovation strategy. Data Data Dome “A smart, inclusive and playable city that is organically advancing as opposed to having Technology the smart city agenda dictated from the top Own fiber-optic network for experimentation; working on 5G wireless down.” technologies The city recognizes a resilience value in the “smart” Financing offering and is guided by the principle that every resident Bristol City Council should have access to technologies that are essential for European Network of Active Living Labs their productivity, well-being, and enjoyment. The city believes this proposition empowers residents, communi- Knowle West Media Centre ties, and businesses to innovate and develop new smart Industry capabilities to better serve their social and economic needs, ultimately enabling new approaches that will help Capacity development the city to prosper. Knowle West Media Centre Open University IoT in Action Related initiatives Bristol is developing an open programmable city through Bristol Is Open, a joint venture between Bristol Univer- Citizen Sensing sity and the City Council. Bristol Is Open works with the Damp Busters Project technology, media, and telecommunications industries; Girls Making History universities; local communities; and local and national governments to develop and pilot IoT research projects. Jobs Long-term partners can be invited to join an advisory Not known panel that guides the joint venture on the evolution of the 37 network, the creation of multipartner experiments, the to rapidly deploy experiments at city scale. Their work is services that underpin the infrastructure, and the publicity delivered in partnership with other public sector agencies, and events surrounding the project. the private sector, and the community and their represen- tatives. This digital infrastructure is the foundation for its IoT ini- tiatives. The infrastructure includes fiber in the ground, a Living Lab mesh bouncing from lamppost to lamppost across the city, and a mile of experimental wireless connectivity. Bristol is one three European cities to receive support from the European Commission as part of REPLICATE—Renais- The Internet of things mesh network (52) is a “canopy of sance of Places with Innovative Citizenship And Technol- connectivity” across most of the city, created from access ogies—which is a research and development project that points mounted on 1,500 street lampposts. It uses a range aims to deploy integrated energy (53), mobility (54), and of self-regulating advanced wireless technologies for information and communication technology (ICT) solu- extending connectivity, connected to a core fiber ring. It tions (55) in city districts. is designed for low-bandwidth applications, but it can accommodate a large number of sensors spread around The project, led by the City Council employs the principles the city. Small sensors, including smartphones and GPS of the Living Lab to engage and include the broadest range devices, supply the three new fast networks in the center of perspectives and inputs. Bristol’s Living Lab is managed of Bristol with information about many aspects of city life, by the Knowle West Media Centre as a place where citi- including energy, air quality, and traffic flow. zens, artists, technologists, businesses, and public sector organizations can come together to co-create ideas and to The mesh is designed to enable IoT devices to be imple- understand how digital technologies can be used to meet mented at scale, offering test facilities to network oper- local needs. ators, application developers, and manufacturers of IoT devices. A city operating system dynamically hosts this One of the successful projects deployed using the machine-to-machine communication, allowing the de- Living Lab approach has been the Damp Busters pilot, a velopment of a wide range of applications. Once the new damp-monitoring initiative in rental accommodations networks are fully functional in the city center, they will be (56) to address potential mold-related health issues. The extended to other regions, over the next three years. These project has co-designed and developed a frog-shaped networks are for research and development projects; they sensor detecting moisture and temperature in the environ- will not provide free or commercial broadband or Wi-Fi. ment. However, there will be opportunities for people to join one of the experimental projects if they want to. The Bristol Living Lab is also part of SPHERE (Sensor The active, wireless, and mesh network is technology Platform for Healthcare in a Residential Environment). agnostic; it was built on open network principles, using SPHERE is a community of nearly 100 researchers who software-defined network technologies that enable net- have developed a number of sensors that help track the work function virtualization. risks of obesity, depression, diabetes, stroke, falls, respira- tory conditions, and cardiovascular and musculoskeletal diseases by monitoring behavior in homes. Source: Kevin O’Malley: “Bristol: Smart and Inclusive City” The City Council’s City Innovation Team looks to pilot the potential of the latest smart technologies to ensure that Source: Bristol is Open Bristol becomes a resilient, sustainable, prosperous, inclu- sive, and livable place, using the Bristol Is Open test bed 38 Data Dome Results/Next Steps Housed in At-Bristol’s Planetarium, the Bristol Data Dome As with most other similar initiatives, clarity around connects to a high-performance computer at the Univer- sustainable business models for smart city interventions sity of Bristol via a 30Gb/s fiber link. The combination of remains a work in progress. However, through the REPLI- display, on-demand network capacity, and computing CATE project Bristol plans to evaluate and test a range of power provides an opportunity to visualize IoT-generated sustainable smart city business models over the next two data experiments, creating interactive virtual reality en- years with the aim of developing a suite of models that can vironments and providing individual audience members be applied effectively in different contexts. with the ability to make their own assessments. The smart city infrastructure in Bristol may continue to In addition to public visualization and demonstration of grow and develop while being used by research institu- city data, the City Council has made a host of data publicly tions, businesses, and the public sector. As the impact of available through an open data portal. this investment is realized for Bristol, the research and development network will be extended to the wider city Challenges/Lessons Learned region—to Bath and parts of North Somerset and South Gloucestershire—over the next three years, creating a IoT-based initiatives in Bristol appear to be influenced diverse city-regional test bed. largely through a combination of visionary leadership and grassroots-based collaborative partnerships, and support- ed by early investments in infrastructure (including its own fiber-optic network). This top-down/bottom-up integrated approach is helping the city organically evolve into a smart city. IoT initiatives are largely citizen-centric with an active participation of start-ups in a variety of projects. 39 Germany The Business Case AT A GLANCE In 2014, Germany released its Digitale Agenda (57) (referred to as the Agenda), which documents three primary objec- tives using technology: Policy references Digitale Agenda ⚫⚫ Growth and employment Regierungsprogramm Digitale Verwaltung ⚫⚫ Access and participation 2020 ⚫⚫ Confidence and security Implementing agencies/programs The Agenda includes a number of measures to guide the Digital Government (Summary) government, reflected in laws like the General Data Pro- National Action Plan for the tection Regulation (58) and initiatives like the Plattform Implementation of Open Data Industrie 4.0. (59). The Agenda clearly states that the digitization of innovative public services and processes fa- Internet of Things/Industrie 4.0 cilitates the further opening up of state geodata, statistics, Plattform Industrie 4.0 and other data (open data). Focus areas Plattform Industrie 4.0 (8) maps out how IoT projects can Open data advance industrial technology and capacity, creating a new Data protection regulation competitive advantage for Germany. Interoperability of devices IoT in Action Data Led by the federal Ministries of Economic Affairs and Ener- Open data gy and of Education and Research, and with stakeholders from every market, Plattform Industrie 4.0 has developed Technology standards and services to help any German company Focus of broadband connectivity enhance their Industry 4.0 capabilities. This includes a compendium of services as well as a growing map that Financing currently shows over 500 projects of how companies are Public-private partnerships using Industry 4.0 technology. But perhaps the most impactful piece to come from the platform is RAMI 4.0 Capacity development (Reference Architectural Model Industry 4.0) (60). Fraunhofer Fokus RAMI 4.0 addresses the need for interoperability. A work- ing group—consisting of key stakeholders from automa- Related initiatives tion, manufacturing, government, and academia—de- Industry 4.0 veloped RAMI 4.0 as a representative guideline for how Living Labs developers should build their product to be ready for the interconnected reality of German production. RAMI 4.0 is Jobs not law, but rather a reference meant to promote harmo- 9 jobs added for every 10 ICT jobs created nized technology that can readily work together (61). 40 Challenges/Lessons Learned ⚫⚫ Data challenges remain. Data ownership is currently very fragmented and no business models have yet The German experience has produced numerous lessons: emerged with respect to monetization of data. Smart city applications currently focus on open data and ⚫⚫ The pros and cons of consensus. Germany’s decision transparency. A study (62) indicates that half of the to create a working group to create standards allows IoT companies are in Berlin (most of them are not for consensus-based decisions across all stakeholders. more than five years old), but their focus is on appli- For example, RAMI 4.0 does not force companies to cation software development for international clients. change by law. There is no dictate for future produc- tion, nor is there any favored solution. The result is an Results/Next Steps ideal that anyone could implement. On the downside, however, consensus solutions and architecture design The federal government has created intelligent networks can take considerable time to develop. to help industry, as they need some room for experiments. Special regions or Living Labs are being built for experi- ments in IoT projects. Special clauses, including exemp- A consensus-based, research-accompanying tions in regulations, are being introduced for experiments. standardization process is essential for the Within this framework, Industry 4.0 partners are working to establish standards, help develop regulations, conduct rapid realization of more highly digitized research to address barriers between federal states and industrial manufacturing processes. the central government, and develop proofs of concept driven by the market and representative of a bottom-up approach. A cooperative approach to infrastructure development. Forty-six percent of the German economy (SMEs) still does In addition, through its Digitale Agenda directive, the not see the impact of digitization. This is largely because German government aims to strike a balance between broadband connectivity is an infrastructure issue: Germa- relaxing and increasing regulations to meet the three ny is one of the world’s top five economies, but it ranks broad objectives of growth and employment, access and 28th for broadband connectivity. With respect to digital participation, and confidence and security. On one hand, technology and IoT, the federal government is focused on it is keen to create a regulatory framework that supports its own infrastructure and internal development. There is a investment with reforms like the relaxation of government conscious effort to overcome the boundaries that current- procurement requirements. On the other hand, the fed- ly exist between federal states and central government. eral government seeks strict data privacy and ownership While the states/local authorities have built their own regulations for both individuals and industry, including digital technologies, they require the federal government net neutrality, IP laws, and a harmonized European data to remove regulatory barriers. protection law,1 which goes into effect May 2018.2 ⚫⚫ Focus on digital literacy. The lack of a proper cur- riculum for public sector education involving digital transformation (except with regards to privacy and security) is a barrier. Groups like Fraunhofer Fokus focus on communication and education, including explaining technologies for government, reviewing frameworks/regulations, and explaining implications to governments. 1 Digitale Agenda 2014-2017, Federal Government of Germany, August 2014. 2 GDPR Portal: Site Overview, EUGDPR, www.eugdpr.org 41 Hamburg Port Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE The Hamburg port (63) occupies about one-tenth of the total area of Hamburg and is the backbone of business in the city. An institution under public law, the Hamburg Port Authority Policy references (HPA) is in charge of infrastructure management in the port. Digitale Agenda HPA Environmental Policy HPA has set the goal of developing the port of Hamburg as a smartPORT (64) with a focus on logistics and energy. The Implementing agencies/programs introduction of innovative mobility concepts, renewable Hamburg Port Authority (HPA) energy sources, and the interlinking of energy-generating plants and industrial plants to promote the efficient use Focus areas of resources are at the forefront of HPA’s approach. The Logistics approach calls for the development of an intelligent infra- structure using technologies such as IoT to collect, analyze, Energy and process data, to ensure transparency at all stages of the supply chain and enable early intervention for traffic Data management. Vision for a central management hub IoT in Action Technology CISCO, Kiwi Security, T-Systems HPA began upgrading its core information technology International, Swarco, Philips, WPS infrastructure in 2009 (65), developing sensor-based appli- cations to monitor land- and water-based traffic, including Solutions, AGT International, IBM, and sensors in roadways and bridges. many more The road sensors are connected to determine traffic speed, Financing congestion, and significant issues. The system (65) also Self-funded monitors vehicle weight—which helps determine how much traffic has crossed a bridge, informing bridge design, mainte- Capacity development nance, and renovation schedules—and communicates with 8,9 Mio. TEU https://www.hafen-hamburg. drivers about delays and traffic patterns. Sensors also provide de/de/statistiken/containerumschlag parking information to drivers via mobile applications that take advantage of GPS-enabled location data. This system has reduced the time drivers spend looking for parking. Related initiatives Several The Vessel Traffic Service Center manages data collection for waterways, which includes radar and AIS (Automatic Jobs Identification System) to monitor incoming ship traffic. 261,000 jobs dependent on Port HPA is currently piloting a solution that would integrate with roadway traffic data to help manage traffic disrup- tions that may occur when ship traffic requires bridge closures around the port area. HPA is also now piloting a number of IoT projects for rail monitoring and inspections, environmental and flood monitoring, road/rail/bridge maintenance, and traffic and parking management. 42 Challenges/Lessons Learned Results/Next Steps According to Cisco, which looked at HPA as part of a HPA is attempting to integrate additional sensors into wide analysis on the economic benefits of IoT for the its systems, based on initial findings. It wants to place public sector (65), one of the biggest challenges has been additional and more capable sensors in key hot spots to demonstrating tangible results of technology, and com- gain a deeper understanding of what is taking place. HPA municating them in terms the general public will under- also wants to learn more about who is moving where, and stand. One strategy to address this has been to build small when they are moving. In order to bring HPA into the real prototypes to show incremental benefits. This allows HPA of big data, HPA is currently looking at auto registrations to highlight project results to generate momentum and using sensors and images. These sorts of higher-level in- support larger implementations. telligent applications appear to be the future for HPA and are already in the planning phases. Lastly, among various Another challenge has been integrating various technol- pilots and test cases that are ongoing, the environment ogies and initiatives. Different systems, if kept sepa- is an area that HPA is beginning to explore, including a rate, provide a fragmented picture. Pulling the systems smart street-lighting program. HPA views this as another together is crucial to building an overall perspective on infrastructure building block necessary before moving into port operations. Finding heterogeneous technologies, and higher-level intelligent systems. integrating technologies into the overall plan, has been more difficult than originally anticipated. In the future, HPA plans to expand and upgrade the system so that all the information—sensor data, video, photos, and other pieces of data—feeds into a central management hub, to help build an intelligent system that can quantify and manage the different systems of transport. Source: Port of Hamburg 43 Ludwigsburg Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Ludwigsburg faces challenges common to several other cities in Germany. These include local ones like demo- graphic change and pollution caused by high levels of Policy references particulate matter emissions as well as large-scale issues Digitale Agenda such as climate change. The city also seeks to offer an attractive environment for inhabitants and a competitive Implementing agencies/programs business environment. City of Ludwigsburg Ludwigsburg has responded by establishing an innova- Focus areas tion network called Living LaB Ludwigsburg, made up Energy of partners from the city administration, industry, and Mobility research institutions that work together in a cooperative manner. The aim of this cooperation is to develop innova- Architecture/construction tive solutions to improve the quality of life. To do so, the IT city focuses on user-centered, digital transformation and Public participation provides an urban test ground. Data, e.g. To support the innovation process, the Living LaB (13) was Parking space set up in March 2016. This unit is distinctive because of (1) Air quality its makeup, with representatives from the municipality, Road quality industry, and academia; and (2) its integration directly River water levels into the municipal apparatus. In conjunction with other Waste bin filling levels municipal departments, the Living LaB identifies needs, conceptualizes innovative solutions with the network and Energy grid municipality, and supports the pilot implementation. All Living LaB activities foster the city’s strategy for a sustain- Technology able urban development. The underlying development Different plan was developed in a participative process with citizens of the city. Capacity development Co-creation makathons IoT in Action A key element of the digital transformation and the Living Jobs LaB activities in Ludwigsburg is the Smart City Cloud and Not known Smart City Dashboard. The cloud aggregates and inter- faces data that is (1) already available within the municipal apparatus (open data); (2) generated through Living LaB and other municipal projects (for example, measuring of indoor air quality in public buildings, environmental air quality, smart lighting, river and flood monitoring, waste bin filling levels); (3) from local businesses (for example, opening hours, portfolio, special offers) and tourism (for example, events); and (4) of general interest (for example, weather). The Smart City Dashboard offers user-specific access to provided information and data sets. The city’s IT community is encouraged—for example, through active 44 participation in hackathons and makathons—to elaborate Furthermore, a number of makathons, in which par- with this data (for example, develop apps) and initiate ticipants can share their expertise to create innovative projects that further create data (for example, create an solutions for and with the city of Ludwigsburg, are planned own sensor network to measure air quality or bicycle in 2017 and 2018 to spur co-creation in the context of the routes). digitalization of urban spaces. This can be understood as capacity development for inter- and transdisciplinary Ludwigsburg tests sensors to identify the availability of groups with an interest in local urban development. Future free parking spaces in the city via smartphone or a navi- scenarios will be made partly visible through augmented gation device. At Groenerstraße, the company Bosch has reality and include IoT-based solutions. installed test sensors in the ground. Their data will be sent via app to car drivers. Related projects are currently under Challenges/Lessons Learned way testing seamless parking (for example, reservation and payment). Many IoT technologies and concepts have been tested or are under preparation to be tested and further improved in The intelligent lighting solutions (23 installed LED street a real-life environment in Ludwigsburg. In this context, a lanterns) will automatically dim and only light up when mind-set that welcomes being part of innovation process- someone approaches. These intelligent street lamps are es is central to the projects’ success. Challenges occur, for projected to save 60 percent on energy costs. Optionally, example, in the matching of actual current city demands the lights can serve as a WLAN point, as a charging station and solutions that fulfill the criteria to be tested under the for electric vehicles, or as an emergency call facility. given conditions in an urban environment as well as the commitment to cooperatively finance the test scenarios. A smart grid system is being tested to optimally coordi- nate consumption and supply. The prerequisite for this is Results/Next Steps that the energy from the various sources can be collected To develop and deploy the digital transformation in in a single place and distributed smartly from there. Per conjunction with the sustainable development concept of the planned design, software will tell how the weather Ludwigsburg, the municipality has set up a Digitale Agen- will be—and thus the expected energy consumption. It da. The city administration of Ludwigsburg believes that will also know where to get the energy from: photovoltaic to achieve its objectives, a sophisticated digitalization sources, wind power plants, or combined heat and power strategy is a prerequisite. How this can be integrated with plant. the sustainable development plan consisting of 11 master plans, which form the strategic foundation and the frame of reference, is not yet decided. 45 Mannheim Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Mannheim—where Carl Benz invented the automobile in 1885—is active in all areas of urban sustainability and is consistently bringing relevant processes into the econom- Policy references ic, ecological, and social activity of a smart city. Like many Digitale Agenda other cities, Mannheim faces several challenges, including List climate change, pollution, demographic shifts, migration, lack of qualified professionals, and area shortages (avail- Implementing agencies/programs ability of military conversion areas). Blue City Mannheim The city’s excellent infrastructure is a crucial factor for the Focus areas companies’ investments, and the city’s continued focus on Mobility energy efficiency, smart grids, and climate change initia- tives using smart technologies such as IoT is seen as critical Energy efficiency to maintaining its status as a smart city. Smart grids IoT in Action Data Not known IoT-based developments/pilot projects in the dynamic smart city of Mannheim include: Technology Not known Climate Protection Under the heading Blue City Mannheim, a modern district Financing for energy efficiency, smart grids, and electro-mobility is Public-private partnerships being developed in the former U.S. military installation Benjamin Franklin Village (BFV), with living space for up Capacity development to 10,000 people. Plans call for jobs to be created near the Not known residential zone, which is close to a large wooded area yet still well connected to the city thanks to public transport. Related initiatives The vision is to create an integrated, energy-efficient Modellstadt Mannheim neighborhood development with new public and private transport options, greater use of renewable energy man- Jobs aged using intelligent systems, architectural innovation, Not known and new business models to support implementation. Energy Technology MVV Energie, a company based in Mannheim, is working on Modellstadt Mannheim (Model City Mannheim, also known as moma), developing an “Internet of energy” that will allow consumers to adapt their energy requirements automatically across different renewable sources, such as wind or solar. 46 moma was one of six projects chosen to participate in raffic. They are equipped with wireless charging technolo- Germany’s E-Energy program in 2006. The program was gy and a compact and fully integrated propulsion system. established to meet the need for new ICT technologies Bombardier Transportation, together with local partners, in the energy industry. moma is designed to increase developed the contactless charging technology wherein energy efficiency and integrate renewable energy supplies electricity is transmitted via charging stations that are through a combination of real-time energy pricing and located at several selected stops. This pilot project is also smart home automation. gathering data from sensors that will further research in the field of sustainable urban mobility, including enhanc- Transport Technology ing the passenger experience. Leading this sector on Mannheim’s streets is the PRIMOVE bus. Since June 2015, two electric buses from Swiss manu- facturer Hess have been undergoing tests in real street t Source: Stadt Mannheim: Rahmenplan: Benjamin Franklin village 47 Reutlingen Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Eleven different Fraunhofer institutes, 14 cities of varying sizes (including Reutlingen), and 22 companies engaged in activities from automotive development to urban plan- Policy references ning have come together to create the innovation network Digitale Agenda Morgenstadt: City Insights to collaboratively conceptu- Morgenstadt alize and realize the future of an integrated, sustainable, livable, and resilient city of tomorrow. The objective of Implementing agencies/programs Morgenstadt is to help cities best utilize and help define Fraunhofer Institute this transformation process, with the aim of creating more City of Reutlingen sustainable, livable cities. Focus areas IoT in Action Retail sector The project “Smart Urban Services: Data-driven Service Climate change and supply chains Development for Urban Value Creation Systems” connects Traffic management different city subsystems currently regarded separate- ly—for example, mobility, logistics, health, environment, Data commerce, and citizen services—to exploit the emerg- Not known ing potential for service innovation by designing a more integrative and collaborative urban value creation system. Technology To set up the smart services, a sensor-based platform is being designed to link the various subsystems and the Not known urban authorities that operate them, which then will be implemented as a prototype. Financing Federal Ministry of Education and Research In Reutlingen, one of the project’s two partner cities, the project proposes to distribute sensor networks in the city Capacity development that will be able to closely follow urban life (66). Their Not known “insights” could enable a wide range of improvements for citizens, from the local shopping app and mobility tips to Related initiatives road cleaning and the elimination of public waste contain- Morgenstadt Initiative ers “on demand.” Jobs Not known 48 Within Reutlingen, the following potential application areas have been identified as the project focus: Goals Solution Retail services and ▶▶ Improvement of the competitiveness of downtown ▶▶ smaRT city App tourism retail ▶▶ Individualized and data-based provision of infor- ▶▶ Adjustment of the framework (dynamic retail) mation ▶▶ Integration of retail services with tourism, etc. (shop- ▶▶ Personalized products and services based on sensory ping day trips) data Optimizing the ▶▶ Increasing the attractiveness of the cityscape ▶▶ Planning routes for garbage disposal according to attractiveness of ▶▶ Road maintenance, disposal, noise mapping need, based on level and movement data as well as the city ▶▶ Efficient organization through integration: improv- predicted filling speed ing interfaces between stakeholders ▶▶ Distinguishing between full and blocked (under- ▶▶ Event management: targeted information provision floor) waste containers Traffic and ▶▶ Handling of increased traffic ▶▶ Traffic programs of the light signal systems environment ▶▶ Reduction of pollutant and noise pollution ▶▶ Evaluation of the transport programs with regard to ▶▶ Improved traffic flow environmental pollution ▶▶ Integrated parking and traffic management Challenges/Lessons Learned Results/Next Steps System solutions are facing major challenges in the field Currently, solutions for the areas of actions are in the of technological implementation, especially in the urban phase of implementation and testing. environment: ⚫⚫ Challenges to integrate and harmonize different subsystems involved in system logics ⚫⚫ Technical challenges due to different basic technol- ogies and nonstandardized device components or interfaces ⚫⚫ Legal framework in the public space ⚫⚫ Guarantees of a working and appropriate data protec- tion concept 49 Estonia Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE In the early 1990s, Estonia, a small country with a small population and few resources, made a conscious decision (67) to use the Internet to build an open e-society. A co- Policy references operative project between the government, business, and Digital 2020 citizens started in 1996, called Tiger Leap (67). It helped Digital Signatures Act prioritize the development of an information technology Digital Transactions Act infrastructure and initially provided educational institutes National ID Card and public agencies access to computers and the Internet. Implementing agencies/programs Around the same time, Estonia passed legislation that Government CIO Office, Ministry of allowed the creation of infrastructure such as the nation- Economic Affairs and Communications al digital identity (ID Card) program (68) and the data exchange platform X-Road (69), both critical for develop- Estonian IT and Telecom Association (ITL) ing the digital society systems that were to come. In the private sector, the nation’s banks and telecoms introduced Focus areas online services and innovations like M Parking, which sig- Energy naled the growing digital capacity in the country. With a Transportation fully established and functional digital infrastructure (67) Wooden houses clusters in terms of technology, capacity, and regulatory frame- works, Estonia prepared to move into its next phase of Data digital revolution in the form of Industry 4.0 and real-time X-Road economy, with an emphasis on IoT. Technology Fiber-optic infrastructure LoRaWAN networks Financing Public-private partnership Capacity development Source: E-Estonia Digital education In its Digital 2020 (70) agenda, Estonia sees the need to Related initiatives monitor current technology trends and carry out pilot Industry 4.0 projects to keep its information system and services up to date and constantly evolving. These include IoT, advanced Jobs analytics, big data, linked open data, and augmented E-Residency reality and privacy enhancing technologies. Highlight- ed in the Digital 2020 agenda is the belief that IoT can enable priority areas, such as the remote diagnostics of its infrastructure, energy consumption, and safer traffic and transport management. 50 IoT in Action Facility energy management solutions (for ports, airports, universities, and so on) are also being developed to man- Estonia has established a regulatory, competency, and age their energy consumption from an efficiency stand- technical infrastructure that supports IoT implementation. point. These systems can predict when an area’s electricity Some early examples of IoT-based applications (though supply is likely to be strained, and automatically forward these are not necessarily G2B-oriented solutions) include customers instant bonus offers to reduce their consump- smart city lighting systems, a smart grid for energy man- tion during those times, thereby smoothing peaks and agement, smart wooden houses, public transit systems, troughs in the local grid. Customer billing is integrated and a smart harbor for transportation and logistics pur- into the same system, which results in an enormous cost poses. savings for the distributor. Smart Transportation, Borders, and Ports Local innovators have also taken a new approach to smart homes, developing systems that integrate electrical, heat- Estonia’s National Road Administration (71) has im- ing, and security systems. These systems are designed to plemented a system that uses sensors and GPS-based maximize energy efficiency, which saves the homeowner monitoring to provide real-time information about road money and is much friendlier on the environment than conditions—including air and road temperatures, wind older methods of home management. speeds, and visibility—to help users, particularly during harsh winters. Challenges/Lessons Learned In partnership with a private sector firm, GoSwift (72), a Estonia has established the foundation necessary to im- system has been designed and implemented to create a plement IoT-based initiatives and strategies. The following real-time border queuing reservation system, eliminating areas were tackled early on: a long-time problem for cargo vehicles, which have had to wait for lengthy periods of time before crossing the ⚫⚫ Policy/regulatory framework country’s eastern border. A similar pilot project that also ⚫⚫ Institutionalization and governance includes commuter traffic planning has been under way ⚫⚫ Technical infrastructure, especially for interoperability between Estonia and Finland since 2016. ⚫⚫ Public-private partnerships, including promoting businesses and start-ups Estonia’s Smart Grid ⚫⚫ Competencies and education Estonia’s Electricity Market Act (73) requires all electricity ⚫⚫ Data meters to be replaced by smart meters, incentivizing Es- tonian entrepreneurs and software developers to develop smart-metering (74) and billing management software for use by utility providers. These systems allow end users to monitor their energy consumption in real time, select appropriate options and packages, and evaluate renew- able energy sources. Source: E-Estonia 51 Regulation 2,000 (nearly 99 percent) online state services. It connects 1,000 organizations and databases and supports nearly The government has established regulatory policies 500 million transactions per year. Figure 5 depicts the and regulatory frameworks without being technology X-Road data exchange layer in information systems that specific. The Electronic Communications Act (75), for allows the databases and registers across the different ser- example, states that “the purpose of this Act is to create the vices to communicate securely via the Internet. Currently, necessary conditions for the development of electronic com- an adapter server/security server is being set up to increase munications to promote the development of electronic com- access to X-Road for a larger stakeholder base; some munications networks and electronic communications services thought is also being given to devising an economy-wide without giving preference to specific technologies and to ensure data exchange platform (also for B2B interoperability) the protection of the interests of users of electronic communica- based on X-Road (“Business X-Road”). tions services by promoting free competition and the purposeful and just planning, allocation and use of radio frequencies and Figure 5. Estonia’s X-Road numbering.” In a similar vein, the Spatial Data Act (76), Electronic Identification and Trust Services for Electronic Transactions Act (77), Digital Signatures Act (78), the Once Only Principle, and so on provide the platform for digital transformation. Governance The e-Estonia digital society evolution started with a reconsideration of the state, its services, and its legal framework from scratch. Instead of developing a single, all-encompassing, central system, Estonia has created an open, decentralized, and distributed system that links different services and databases effectively and securely. The flexibility provided by this open setup has allowed new components of the digital society to be developed and added over the years, yet the system remains resilient to cyber risks. Estonia has established the role of a government chief information officer (CIO) (79), who reports (80) to the minister of economic affairs and communication (and effectively also the prime minister, through the e-Estonia Council), to help oversee the coordination of digital proj- ects including IoT across government while maintaining the independence and uniqueness of each department’s digital needs. The CIO is the gatekeeper of finances and Source: Siim Sikkut, Government of Estonia is therefore in a strong position to influence agencies and other sectors to identify and establish digital strategies, including the use of IoT-based service delivery to busi- Public-Private Partnerships nesses and citizens. The office of the CIO can identify and Estonia has actively engaged the private sector under the coordinate pilot studies for departments and also beyond coordination of the government CIO to set goals for the government. Estonian ICT policy (81) and to prepare the Digital Agenda 2020. One of the key areas of public-private partnerships Change management is identified as a key limitation, and is competency and ICT skills in schools to address skill/ many agencies do not yet see technology and associated labor shortage issues. Other opportunities being explored regulation as priorities. include broadband network development in rural areas of the country, participation in maintaining and upgrading Infrastructure X-Road, and IoT-based applications including big data and data analytics. Estonia has established X-Road, which provides a shared platform in the form of a uniform protocol for data ex- change between government bodies, and also with G2B and B2G. X-Road serves as the backbone for more than 52 Competencies and Education Estonia is considering the idea of a Business X-Road (83) to promote the use of technology-based solutions within Estonia has placed significant emphasis on digital literacy small and medium enterprises. This platform will be de- at all levels. Within the government, there’s strong em- signed to provide secure unified data exchange between phasis on digital leadership and skills as part of compe- businesses. As part of the vision for 2020, the government tence models. The government offers training/stipends for of Estonia plans to furnish the initial funding for it, with administrators to obtain training. Focus area workshops/ subsequent support coming from the industry. training are also provided on an agency-by-agency basis, as well as thematic training and awareness programs On the government side, the results have been much more horizontally (for example, to enhance data analytics ca- positive. Estonia is now the training ground for countries pacity throughout government). In addition, private sector that want to introduce solutions such as i-Voting, e-Cabi- partners such as telecoms and banks (82) provide free ed- net, e-Health systems, and more. Over 70 countries around ucation services on their digital applications to employees the world are using e-solutions and know-how from Esto- and citizens. Robotics and programming are initiated in nia and by its experts and companies. And new systems the school curriculum starting in the first grade. Eighty- are constantly in development. five percent of schools are e-schools and higher education is free. With respect to data ownership, ideas including the creation of “data corporations” with shared ownership Data across the value chain are being contemplated. Together, the Ministry of Economic Affairs and Communication and Issues related to data retention and data ownership still the Estonian Association of Information Technology and remain outstanding. Because Estonia is an EU member, Telecommunications commissioned a study called “Linked it is awaiting EU legislation on these two topics, as this is Estonia,” which envisages a growing role for linked data, a domain in EU (not national) competence. Estonia has particularly using technologies such as IoT. The report urg- made the issue a priority during its EU Presidency in the es the government to prepare for changes in the Estonian second half of 2017, stating that such a framework is nec- legal system and recommends policy measures necessary essary for an EU data economy to go forward. The lack of for the development and use of linked data. a sufficient number of proven cases is seen as a weak link in establishing appropriate practices with respect to data ownership and retention. Results/Next Steps The results in Estonia show significant strengths at the organizational/strategic level, but success in the field has been mixed. The adoption of digital solutions including IoT-based solutions within the private sector continues to be low. Issues such as lack of knowledge and awareness, inadequate government support and incentives, and infra- structure availability despite the presence of new solutions (for example, LPWANs) are seen as barriers for industry participation. The value chain of IoT provisioning is also seen as very complicated, with very few clear business models around them. The part of the value chain that has the highest entry barrier is network availability. Estonian telecom operators currently seem to favor closed value chains. 53 Kazakhstan (Astana) Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE In his January 2017 national address, President Nursultan Nazarbayev (84) firmly put IoT on the agenda when he said, “[T]he 4th industrial revolution is currently underway in Policy references the world. Universal digitization of the economy will result in Digital Kazakhstan the disappearance of whole sectors and the creation of concep- Presidential Address tually new ones. The great changes we are witnessing today are the historical challenge and a chance for the nation at the same Implementing agencies/programs time.” Astana Innovations The president instructed the government to develop and Focus areas adopt a separate Digital Kazakhstan program, including Smart energy several other such directions in the form of “100 concrete steps to institutional reforms (84)” that captured the need Smart transportation for the country to accelerate its digital economic growth. Smart ecology and environment Astana aspires to be one of the 50 smartest cities of the Data world; it created JSC Astana Innovations in 2011 with this None objective. The establishment of a separate entity dedi- cated to building innovation capacities was seen to have Technology several advantages, including the separation of regula- Fiber-optic networks run by national tory powers and business development agenda, better telecom flexibility in staffing and reporting procedures, as well as Supporting low-power networks in development of the private sector. Under the Smart Astana agenda, Astana Innovations has Financing three broad immediate priorities: Zerde Public-private partnerships ⚫⚫ Smart energy ⚫⚫ Smart transportation Capacity development ⚫⚫ Smart ecology and environment None Astana Innovations works with the different city depart- Related initiatives ments to determine the need for innovative digital strate- Smart city initiatives gies and offers its support in designing and coordinating related projects. Astana Innovations may fund some of these projects, while others are funded directly by the Jobs departments. Not known IoT in Action Astana Innovations has initiated several pilot projects in the digital space, including the use of IoT-related tech- nologies. It is important to note, however, that most of these pilots cannot strictly be categorized as government to business services. They typically focus on providing services directly to citizens. 54 Smart Schools when ready for implementation. This project is seen as a potential case for a public-private partnership. The Smart Schools program integrates several systems, including an e-canteen, an e-library, and a security system Smart Polyclinics that is used to control access to school buildings and to monitor the safety of students in real-time, using a video The goal of “smart polyclinics” is to improve the operation surveillance system and sending SMS notifications to of the health care industry by automating internal and parents’ phones about student attendance. external processes. They are designed to provide timely, relevant, and reliable medical information to doctors Public Transit Management System and patients. Services include linking individual IDs for Through a Common Control Center patients with the nearest polyclinics, providing doctors with real-time schedules and patient information, and the The city’s public transit involves nine fleet companies, tracking and dispensing of drugs. Much of this information eight of which are private and the other run by the munic- is delivered through a single instrument to doctors. The ipality. There are currently 83 routes served by 750 buses. project is expected to increase the productivity of labs and Each bus has a GPS and each fleet company operates its create an integrated database of research results drawn own control center. All information, including that of the from data in laboratory informational systems and med- private companies, is available to the city’s control center. ical information systems. The project does not currently Displayed arrival times at bus stops are in real time, inte- use any IoT-based applications, but future initiatives grated with traffic systems and IoT based. An e-ticketing include integrating and updating patient conditions with system currently under implementation will collect more IoT-based health-monitoring devices. information on load, capacity on routes, and will be inte- grated with passenger count sensors placed on the doors Solid Waste Management of all vehicles. The natural resources and wildlife management depart- Additionally, the city’s transport department is considering ment is responsible for overseeing solid waste manage- the possibility of using IoT sensors to monitor the condi- ment, including collection, transportation, and disposal tion of buses. Currently, inspectors and the traffic police of household and construction waste. Under its smart physically check the buses; the use of IoT sensors would program, GPS trackers are placed on trucks and can be reduce the number of physical inspections. monitored by any device. Container areas (about 1,800) are identified on the map by personnel also equipped with While the data collected by the city from the IoT sensors GPS trackers. are not available to the public, the department is open to sharing the data publicly for use by businesses and start- Astana Tazartu, a company established in public-private ups to create applications. partnership, is responsible for 23 sections in the city. Its vehicles are equipped with cameras that help determine Smart Street Lighting other information and assist the drivers in maneuvering vehicles. Additionally, fuel control sensors on the vehicles The goal of this project is to reduce energy consumption monitor fueling at gas stations, which has resulted in and street lighting operating expenses. The pilot study significant savings and helped reduce the fleet size from involves a system of street lighting that provides a flexible 100 to 77. The quality of bin dumping has also improved. configuration of operating modes. Managers on duty can Technical sensors to check the status of the vehicles are set the schedule of turning on/off lighting and choose an being investigated. The weather is key issue when trying automatic mode based on the amount of natural light. to place sensors on bins to help better optimization of dis- Data on the status of lamps and operating mode as well as patch: many of the cheaper sensors failed under extreme system management tools are displayed on a dashboard. cold weather conditions. Dimming function provides control over the load on light- ing equipment. The software provides the opportunity to Fuel Management on Rail Locomotives dim individual lamps as well as a selected group of lamps. JSC TransTeleCom, an operator of a nationwide fiber-optic Communication is provided by means of both wireless backbone network laid along railways, has introduced an (radio, GSM) and wired technologies (PLC). Astana Inno- automated management system for railway engines. The vations projects the energy savings could reach up to 48 system is based on 15 types of sensors in each engine that percent if the pilot is successful and the project is scaled. measure the level of fuel, rpm of engine, location, and Astana Innovations expects to involve private sector com- more and send it to a central system. The purpose of the panies, especially start-ups, to participate in the project system is to control the consumption of diesel fuel by the engine. Plans include collection of data to optimize the 55 speed of trains and reduce or eliminate driver interven- Infrastructure, both in terms of network availability tion except in emergency situations. This has legislative and IOT devices such as sensors, has been identified as implications because current legislation mandates driver a challenge for implementation. Kazakhtelecom, the operation. largest telecommunication company in the country, is in the early stages of implementing an IoT infrastructure in Challenges/Lessons Learned the country. Per the company, the country’s current infra- structure is limited compared to that in world digitaliza- As a general assessment, Astana’s intentions, motiva- tion leaders: Kazakhstan has 65,000 kilometers of optical tions, challenges, and current practices align with current fiber in place; the Republic of Korea, in contrast, despite practices across other jurisdictions in the developed world. being 30 times smaller in size, has 650,000 kilometers of This positions Astana very well to establish its own fiber-optic networks. Other approaches, including the use course of action, creating opportunities for benchmark- of LoRa networks, are being envisioned once standards are ing and collaboration with other jurisdictions without in place for such technologies. Advice is being sought from necessarily having to worry about “catching up” with them. Korea Telecom, including undertaking pilot studies on the use of copper cables in the absence of fiber to save costs. Astana, like many other jurisdictions, is proceeding with On the devices front, specific constraints have included the IoT initiatives largely under a smart city agenda. In that reliability and dependability of sensors in localized and context, as seen with cities such as Bristol, Ludwigsburg, extreme environments, such as cold temperatures, high and Mississauga, the leadership shown by the mayor of snow conditions, and so on. The lack of a local presence of Astana has been a key influencing factor. The creation sensor manufacturers and IoT companies further hampers of and the mandate for Astana Innovations as a coor- the cost and reliability of implementation. dinator IoT initiatives under the smart city directive is well aligned with current practices, as seen in Germany, While there is a strong aspirational commitment to the United Kingdom, and parts of the United States. As create public-private partnerships for initiating and is the case with other studied jurisdictions, IoT initiatives implementing IoT strategies, the process is slow and in Astana are very much in the pilot/proof of concept or seemingly bureaucratic. This is a barrier for start-up com- aspirational stages. panies. For example, Smart Shelf Solutions is a start-up founded in the city of Almaty originally for retail monitor- Since all IoT initiatives in Astana are very much in their ing of inventory. Their technology included end-to-end nascence, it is too early for the city to make any assess- solutions using IoT sensors. They are currently undertaking ments or observations on the potential business models several projects with oil companies and have a contract and value propositions for itself and/or for businesses. to undertake a pilot study using LPWAN- and LoRaWAN- However, pilot applications such as the fuel control sen- based systems for the railways to monitor tracks. The sors, transit management, and garbage truck scheduling company identifies itself as an IoT integrator and believes have demonstrated early evidence of creating efficiencies it does not have adequate opportunities to participate in and reducing costs to the city and businesses. public-private partnerships on IoT pilot projects. Issues regarding data ownership, data sharing, data Similarly, Korkem Telecom is the first and only producer privacy and security, and any policies concerning them of traffic cameras and is involved in video surveillance and have not been raised or discussed within any levels of road traffic project trials. They have invested in and main- government. The city should consider developing policies tain a large Wi-Fi network with over 10,000 daily users and in this regard and using some of the proof of concept stud- have created an app for users of local public buses with ies as opportunities to try and evaluate them. The steps over 200,000 subscribed users. They obtain the data from undertaken in Germany, Estonia, the European Union, and the transport authority. Korkem Telecom believes the lack the United Kingdom, detailed in this report, can be consid- of competent talent within the country has inhibited the ered as good practices. growth of IT companies. 56 The lack of clarity around laws governing public-private Results/Next Steps partnerships is seen as a major barrier. However, the company feels that the current Mayor’s Office is very open Astana Innovations (AI) was established to help coordinate to suggestions. The first IT public-private partnership innovative strategies toward achieving Astana’s smart city project in Astana involving the traffic system is being im- objectives. plemented in good faith and has been entirely financed by investors. According to Korkem, private companies could AI is willing to adopt best practices identified through this succeed if the government provided support in legal ways study to achieve these objectives. Specifically, with respect to prove to other investors and eased restrictions on the to IoT implementation in areas where it can provide better fiber channel market, which currently requires permission “services” and encourage businesses, it is interested in from 14 entities. undertaking proof of concept studies. Officials from some departments have expressed a keenness and readiness to The Kazakhstan Association of Automation and Robotics undertake these studies. Based on their interest, capacity, has members involved in IoT, including TransTeleCom and currently available solutions, the studies would focus and TNS Intec. TNS Intec was engaged with the smart on the following areas: lighting project (pilot); TransTeleCom operates the railway network. The association’s membership is very limited, ⚫⚫ Building inspections indicating a lack of adequate IoT-based companies. ⚫⚫ Solid waste management ⚫⚫ Polyclinics Kazakhstan generally, and Astana specifically, is facing ⚫⚫ Other city services challenges with scarce availability of locally competent professionals in the field of IoT technologies. Nazarbayev Apart from the specific pilots identified above, Astana University in Astana and other universities offer courses Innovations is also interested in simultaneously tackling and options in the digital technology field including IoT, broader strategic and policy-based issues and has request- but the field is still very much nascent. Most city depart- ed recommendations. ment officials expressed a lack of awareness of IoT-based technology solutions and the absence of competent professionals in their agencies. However, some agencies, such as those involved in building inspections, solid waste management, health care, transit, and energy systems, expressed an eagerness to understand and test some of these applications for their purposes, seeing value in mak- ing their processes more efficient and allowing businesses they regulate to become more compliant and competitive. 57 Canada The Business Case AT A GLANCE In 2016, Canada declared Internet access with high-speed broadband download speeds of up to 50Mb/s a “basic telecommunications service” (85) that every citizen should Policy references be able to access. According to the Canadian government’s Telecom Regulatory Policy Telecom Regulatory Policy issued in December 2016, ac- Innovation Agenda cess with these broadband speeds “would enable Canadians to take full advantage of the applications available today and to Implementing agencies/programs use future applications as they become available (e.g. the IoT).” Infrastructure Canada In Budget 2017 (86), the government of Canada intro- Focus areas duced its Innovation and Skills Plan, which focuses on peo- Smart cities ple and addresses the changing nature of the economy to ensure it works for all Canadians. The plan aims to develop Canada as a world-leading innovation economy to create Data jobs and grow the middle class. None Specifically, the government’s budget supports innovation Technology in key growth industries—including digital—with new Fiber-optic networks currently held by large measures that will improve access to financing, encourage telecom providers investment, support the demonstration of technologies, and build the capacity necessary for Canadians to take Financing advantage of growth opportunities and create good, Impact Canada Fund well-paying jobs. Capacity development IoT in Action Canada’s Innovation and Skills Plan The International Data Corporation (IDC) has predicted that in Canada, the number “of installed autonomous Related initiatives intelligent and embedded systems” will rise from 23 Not known million in 2013 to 114 million in 2018 (87). To encourage cities to adopt new and innovative approaches to city Jobs building, the Canadian government has proposed to pro- vide Infrastructure Canada, a federal agency investing in Not known the building of public infrastructure, with Can$300 million over 11 years to launch a Smart Cities Challenge Fund (88). The challenge would invite cities across Canada to develop smart city plans, together with local government, citizens, businesses, and civil society, and help improve the quality of life for urban residents through better city planning and implementation of clean, digitally connected technolo- gy, including greener buildings, smart roads and energy systems, and advanced digital connections for homes and businesses. Winning cities will be selected through a nationwide, merit-based competition, facilitated by the government’s new Impact Canada Fund. 58 Finance Minister Bill Morneau, announcing this challenge, While the study captures several innovative leadership envisaged IoT as an essential part of this landscape. He examples of IoT-based applications in the private sector described a future where “Internet-connected devices help in Canada and sees the potential for the country to be an to shape our daily commutes, with ‘smart’ traffic lights that early mover in the IoT space, it identifies the need for a measure and adapt timing to improve traffic flows. In connected concentrated and collaborative effort to achieve success. cities, electricity is now distributed across dispersed energy stor- age systems, sending energy derived from remote solar, wind and Unlike Germany and the United Kingdom, Canada does geothermal generating stations to wherever power is needed. not have a national initiative that is exclusively focused Underground, connected sewer systems will detect leaks and on the promotion of IoT as innovative digital solutions to monitor real-time water flow, and on our roads and highways, increase the competitiveness and growth of its industry our transportation systems will show real-time information on and businesses. However, Canada’s innovation agenda rail traffic, transport capacity and port loading times, making (90) intends to step up Canada’s role in this sector. supply chains faster and more reliable.” Challenges/Lessons Learned/ Results/Next Steps A study conducted by the Public Policy Forum of Canada (89) has identified several challenges Canada must over- come before it can become an IoT leader: ⚫⚫ Executive understanding and acceptance of IoT solutions ⚫⚫ Availability of skilled labor ⚫⚫ Privacy and security issues ⚫⚫ Build-out of the connectivity infrastructure 59 Mississauga Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Mississauga is the sixth largest city in Canada, with a population of more than 700,000, and nearly 60 of the country’s Fortune 500 companies have their global or Policy references national head offices here. Strategic Plan IT Master Plan In 2009, Mississauga embarked on an ambitious journey: the launch of a Strategic Plan (91) and a 40-year vision for Implementing agencies/programs the city. More than 100,000 residents were engaged in City of Mississauga the development of the plan. The pillars of the plan are Private sector to help Mississauga “Move, Belong, Connect, Prosper, and Green.” The city develops and uses IT strategic plans (92) Focus areas to delivery its objectives. Transit Environment “Connectivity is city-building. In Mississauga, Open data this idea guides Council and staff ’s efforts to Local business growth better use technology to shape policy, make Data informed decisions and deliver quality public Mississauga Data services.” —Mayor Bonnie Crombie Technology Own fiber-optic infrastructure In October 2015, the city approved an IT Master Plan (92) Financing with the following objectives: City of Mississauga ⚫⚫ Fostering open and transparent government Region of Peel ⚫⚫ Enabling decisions through research analytics (big Federal and provincial governments data, IoT) ⚫⚫ Creating a connected and engaged workplace Capacity development ⚫⚫ Improving innovation through partnerships Chief Information Officer Win the Human Race IoT in Action Eduroam The city has been an active partner in a public sector network (PSN) (93) since 2001 alongside the Region of Related initiatives Peel, city of Brampton, and town of Caledon. The PSN is a Not Known fiber-optic network privately owned and operated by the PSN; it carries voice and data communications for all PSN Jobs members as well as for some other agencies that have Not known been provided access. The PSN is registered with the Cana- dian regulator as a nondominant (meaning the PSN does not have any significant commercial impact in the mar- ketplace in providing such access) telecommunications network carrier and is permitted to provide access to other agencies for a fee within the guidelines of maintaining 60 nondominant carrier status. The PSN helps connect city The city’s Advanced Transportation Management System services such as traffic, transit, digital signs, and the city’s (96) has been implemented across more than 120 inter- fleet of vehicles, and the mobile workforce. sections, and the remaining 90 percent (nearly 700) of its traffic intersections will be completed by 2018. Traffic, Mississauga owns about 19,185 fiber strand kilometers of water, rain gauge, and camera-based sensors have been the PSN fiber network. In the city, the network currently installed at these and other locations (97). The system connects 152 sites and 700 intersections with connectiv- currently helps the city manage its fleet management ity to traffic sensors, cameras, and localized computing. system, public transit, and snowplow monitoring, but Estimates suggest that the PSN has led to savings of Can$2 the data have also been made available through its open million annually (94). The infrastructure continues to be data initiatives to citizens and businesses. The next phase expanded to other public facilities, such as hospitals and involves the city placing additional environmental sensors educational institutions, wherein the incremental costs are (for example, for air pollution monitoring) at these inter- relatively less and shared among different stakeholders. sections, using the basic infrastructure and access points that are already in place. Over the last two years, with a base of over 6,000 employ- ees in 50 buildings and in the field, the city has deployed Challenges/Lessons Learned more than 2,000 mobile devices in the field to collect data across a range of services provided by the city, including The creation and establishment of a public sector network transit, fire, and so on. For example, the building auto- in partnership with other cities in the region is an important mation systems across the buildings are integrated and best practice. The PSN works like a separate “company” (93); IoT-based sensors assist in managing energy systems (95). it is governed by the PSN Steering Committee, with repre- They also help with monitoring and optimizing mainte- sentatives from each organization, typically the chief infor- nance of engineering and other services at these locations, mation officer, and has an annual budget that is managed including heating and ventilation systems such as boilers by the Region of Peel. The city of Mississauga is registered and refrigeration units. Per Shawn Slack, chief information as a noncommercial network provider. Federal regulations officer for the city of Mississauga, “Just about every piece of prevent the city from offering its fiber-optic infrastructure to equipment the city buys has the ability to connect to a wireless businesses, thus limiting economic competitiveness. network. Snowplows, buses, fire trucks, HVAC units, and traffic lights are all capable of transmitting real-time data. Collecting Results/Next Steps and using that data to make better decisions will enable more With strong mayoral commitment and visibility at the se- responsive and efficient operations.” nior management level, the strategic/business plan drives the smart city agenda for Mississauga. Over 75 of the city’s Figure 6. Mississauga Connectivity strategic initiatives are directly linked to technology road maps, and IoT is a component in each of those initiatives. The city provides data gathered from its sensors using an open data platform. In addition it can provide the access points at traffic intersections to the private sector to place addi- tional sensors. The city continues to seek out innovation and proof of concept opportunities to create synergies between the city government, the community, educational institutions, local industry, small businesses, and other idea or innovation incubators. The city’s continued partnership with the technology sector is intended Source: City of Mississauga. to drive innovation and provide opportunity and access to technol- ogy in the community. 61 Ontario Tire Stewardship (OTS) The Business Case AT A GLANCE The Used Tires Program in Ontario was established in accordance with the Waste Diversion Act, 2002 and is now overseen by the Resource Productivity and Recovery Au- Policy references thority (RPRA). RPRA is responsible for developing, imple- Ontario Waste Diversion Act menting, and operating diversion programs for designated Used Tire Regulation wastes and monitoring their effectiveness and efficiency. The Used Tires Program is funded by brand owners and Implementing agencies/programs first importers of tires, called stewards, who must remit Ontario Tire Stewardship Program a Tire Stewardship Fee (TSF) to Ontario Tire Stewardship Resource Productivity and Recovery (OTS) for every tire they supply into the Ontario market. Authority The TSFs are used exclusively to fund all aspects of the pro- gram related to the management of used tires. Collection, storage, transportation, reuse and recycling, processing, Focus areas research and development, and consumer education are Recycling and recovery of tires key elements. Data OTS is the service provider for those such as retailers and Proprietary manufacturers that deliver used tires to markets for recy- cling. Ontario legislation requires that the documentation Technology of the diversion of tires through its life cycle be demonstra- GPS system ble. OTS was established as the overseer of this market to Cloud-based management ensure a level of professionalism, standard of compliance, consistency, and the growth of the recycling industry. Financing The stewards of the system include tire manufacturers, Tire stewards vehicle manufacturers (brand owners, original equipment manufacturers, first importers [for example, tire dealer Capacity development brings in imported tires]), collectors (retails, auto recycling Not relevant [accumulators]), haulers, recyclers (processors), and recy- cled product manufacturers. Related initiatives None IoT in action OTS has developed a mobile manifest system in partner- Jobs ship with IBM that eliminates paper-based forms, reduces At risk administration, and makes it easier for program partici- pants to submit information to OTS. Called TreadMarks Mobile (98), it uses mobile devices such as iPads, QR codes that track businesses, integrated weight measurement systems, GPS on vehicles, and a privately owned cloud- based platform. OTS is able to oversee the movement of tires, verify and validate locations and tonnage hauled, and automatically pay the stewards upon successful completion of activities. The system can track individual components of a tire, including rubber, steel, and fiber, based on initial information loaded by the manufacturers. 62 Stewards pay the fee for OTS and the system itself operates To make the process paperless, OTS needed to retrain their on an incentive-based model. Incentives are paid through staff, moving them from traditional clerical roles to that the chain on a tonnage basis. Currently, 80 percent of OTS’s of analysts monitoring and evaluating transactions on a budget goes to these incentives. real-time basis. While the solution does not use sensors (it relies on QR codes), opportunities exist not only to Challenges/Lessons Learned integrate sensors on tires but also to expand the solution to other recycling sectors such as electronics. The creation of an independent centralized body (OTS) combined with legal requirements (a law necessitating Results/Next Steps documentation of the diversion of tires) allowed for the development of an innovative solution. In addition, tying The Waste Diversion Act and Used Tire Regulation have invoice payments and incentives to the adoption of the been revoked in Ontario and have been replaced with mobile technology solutions is a good example of a busi- a new piece of legislation called the Resource Recovery ness model that provides value proposition to businesses. and Circular Economy Act. New regulations on used tires have yet to be developed under this act. In addition, the revocation of the Waste Diversion Act has effectively shut down the operations of Ontario Tire Stewardship. OTS is moving toward winding down in 2018 and possibly ending the application of TreadMarks despite its success. 63 Ontario - Technical Standards and Safety Authority The Business Case AT A GLANCE The Technical Standards and Safety Authority (TSSA) is Ontario’s regulator of technical devices and equipment such as elevators, escalators, boilers, and pressure vessels, Policy references and of fuel burning appliances such as furnaces and Technical Standards and Safety Act water heaters. Public safety issues (for example, incidents Annual State of Safety Report involving injuries and fatalities and high levels of noncom- pliance) have spurred the organization to explore innova- Implementing agencies/programs tive options like the use of real-time monitoring sensors Technical Standards and Safety Authority (99) that can potentially increase performance compliance while not creating an unnecessary burden on business- Focus areas es. TSSA believes that in addition to reducing risks, such Technology inspections applications provide other ancillary benefits, including the reduction of regulatory burden (for example, smarter allocation of resources for inspections). Data None “We are supportive of businesses’ use of inno- Technology vative IoT based solutions for demonstrating Intel compliance so long as they are proven, reliable Financing and meet and exceed Ontario’s public safety Not known expectations.” —Roger Neate, Statutory Director for Elevating Capacity development Devices, TSSA Not known   Related initiatives In partnership with Intel Corporation, TSSA is examining Elevating devices the use of IoT-based technologies for monitoring the Heating appliances performance of elevators, including observing its accuracy when level with floors, patterns of user behavior as they approach closing elevator doors, and other related pa- Jobs rameters. TSSA envisions the pilot studies will help them Not known and the owners of the devices better understand factors influencing past failures, informing design solutions that can provide real-time warnings to users, schedule main- tenance, and reduce public safety risk. TSSA will consider incentivizing building owners implementing such technol- ogies if the solutions are proven. TSSA is also participating in the development of international standards that would permit the use of such applications. TSSA is also considering undertaking pilot studies that use IoT-enabled gas sensors to monitor for carbon monoxide (CO) levels associated with heating equipment such as boilers in buildings, including schools. TSSA has identified 64 CO as a major public safety risk and poor maintenance of appliances is one of the primary causes that allow CO to build to dangerous levels. IoT-enabled solutions will better assist institutions to plan their maintenance schedules and associated budget allocations. TSSA may consider reduced regulatory inspections to incentivize owners of this equipment. 65 United States of America Over the past few decades, the U.S. government has created an environment that allows technology to grow AT A GLANCE and thrive within its borders. Encouraging private sector leadership in technology and standards development and Policy references using a multistakeholder approach to policy making have been integral elements of the government’s approach to Department of Commerce IoT Green Paper technology development and growth. President’s Council of Advisors on Science and Technology In a January 2017 green paper titled “Fostering the Ad- vanced of the Internet of Things,” the U.S. Department Implementing agencies/programs of Commerce (30) suggested that the challenges and U.S. Ignite opportunities presented by IoT require a reaffirmation rather than a re-evaluation of this well-established U.S. Focus areas government policy approach: the federal government’s Agriculture role is to encourage IoT growth and innovation by help- Community Safety ing to expand markets and reduce barriers to entry. The department can also help convene stakeholders to address Health care public policy challenges, and it is exploring cross-cutting Transit issues like cybersecurity and privacy, innovation and intellectual property, data sovereignty, standards develop- Data ment, public-private partnerships, procurement, and more None with stakeholders at the local, tribal, state, federal, and international levels. Technology Intel The President’s Council of Advisors on Science and Technology report Technology and the Future of Cities (100), Financing released in February 2016, suggests that the proliferation of sensors through IoT and converging data standards are Federal government and county funding combining to provide new possibilities for the physical Public-private partnerships management and socioeconomic development of cities. Local governments are looking to data and analytics Capacity development technologies for insight and are creating pilot projects Not known to test ways to improve their services. According to the report, large U.S. cities, through their chief technology Related initiatives officers and related staff, are using technology and data Smart agriculture analytics to solve specific problems in areas such as health, SCALE transportation, sanitation, public safety, economic devel- opment, sustainability, street maintenance, and resilience. The report makes recommendations similar to the De- Jobs partment of Commerce findings on the role of the federal Not known government in supporting city-based initiatives. 66 Japan (Kobe City) Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Kobe City sits almost at the center of the Japanese archipelago, on the Seto Inland Sea, with a population of 1.5 million. In 1995, the Great Hanshin-Awaji earthquake Policy references struck Kobe and the surrounding area, causing 4,751 Not known deaths within the city and destroying or damaging much of the city’s infrastructure. In the years since, and with con- Implementing agencies/programs siderable help and support from people throughout Japan Kobe City and the world, the citizens of Kobe have rebuilt the city into a thriving hub and have almost completely recovered Focus areas from the damage of 20 years ago. The city is now embark- Smart city ing on a journey to become a smart city, with the intention Children’s safety of tackling some of its historic challenges and risks (such as floods, earthquakes, public safety) using technologies Public security such as IoT. Data IoT in Action Open source Sentilo Network Kobe City is piloting several experiments with IoT, includ- ing one spurred by a child abduction and murder incident Technology near a school in Kobe. In September 2016, in a joint effort Fiber optic/LPWA with NTT DOCOMO—the largest telecom provider in Ja- pan—Kobe initiated the Kobe City-DOCOMO urban mon- BLE tags itoring service (verification trial) (101), using Bluetooth Sensors low energy (BLE) tags for monitoring children’s safety in collaboration with 48 companies, including railway and Financing taxi operators. Kobe City/private sector This initiative is considered an example of a business Capacity development collaboration agreement in the use of data generated Kobe University through mobile applications that would be used for the primary purpose of solving various social issues in Related initiatives communities. The project involves the placement of BLE tags in school bags/pockets of children, signals from which Kobe Marathon can be picked up by sensors in town and transmitted to Kobe City–DOCOMO trial parents via the NTT DOCOMO network. These signals can be transmitted up to a maximum distance of 30 meters. Jobs In addition to strategically placed sensors, volunteers such Not known as shopping malls, taxi drivers, individuals, and others can also install applications on their mobile phones that can relay the signals from the BLE tags to the NTT network. 67 Challenges/Lessons Learned Results/Next Steps Several positive aspects came out of the Kobe-DOCO- Kobe City plans to install tidal sensors, land flood sensors MO trial. Data privacy concerns raised by parents were in mountainsides, traffic sensors, human tracking sensors, managed through a series of ongoing consultations and and security sensors. Using the open source Sentilo workshops. The number of participating schools (and Network System (102), Kobe intends to collect data on one parents) rose from two to five, suggesting the success of system/dashboard. It has also entered into a partnership the approach. The number of volunteers signing up for the with Barcelona as part of its smart city initiative. program has also apparently increased. The mountains surrounding Kobe provide an ideal topog- Kobe City is no longer in a position to install more sensors raphy for setting up LPWA IoT networks to complement and pay the telecommunication fees to the provider. To en- the existing fiber-optic networks. The setting is improved sure continuity of the program, Kobe is looking at different by the fact that Kobe University sits halfway up the business propositions, including a fee for service model for mountain and a cable car runs to the top of the mountain. parents, and hopes to arrive at a solution soon. Private service providers can use these resources to install additional sensors that can access the LPWA network to support the children’s safety project, and also consider them when installing other sensors as part of the smart city initiative. 68 United Arab Emirates (Dubai) Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE Inspired by the prime minister of the United Arab Emir- ates, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Smart Dubai (103) program seeks to make Policy references Dubai the happiest city on Earth. Building on innovation Smart Dubai programs developed earlier to drive competitiveness, Dubai aims to create an efficient, seamless, safe, and im- Implementing agencies/programs pactful city experience for residents and visitors through Smart Dubai strategic initiatives and partnerships. It has established different focus areas within its smart city dimensions, Focus areas including smart economy, smart living, smart governance, Smart homes smart environment, smart people, and smart ICT infra- Education structure. The underlying layers (104) for delivering the focus areas include its connectivity or IoT infrastructure, Connected hospitals data, and analytics. Mobility IoT in Action Data Dubai Data Several proofs of concept (POC) currently under way in the city largely focus on delivering better services to citizens in Technology partnership with the private sector. One involves a citywide Not known parking management system that is integrated with per- sonal requirements. The system allows a Dubai resident to reserve a parking slot based on real-time information Financing provided by sensors. This POC is currently being tested Not known as part of a child immunization management program wherein an integrated process of notifying parents, sched- Capacity development uling appointments with doctors, traffic routing through Not known GPS sensors, and parking reservation at hospitals are being set up and piloted. The objective is to ensure that Related initiatives appointments for child immunization are set up, notified, Integrated parking management and the optimal mechanisms for arriving at the hospital are all coordinated. Currently, the focus is primarily on the public sector service delivery to citizens. As part of the next Jobs phase, other aspects, including involving businesses, will Not known be considered. 69 India (Rajkot) Policy Capacity Data Tech Top PPP Business Pilot Support Models Space The Business Case AT A GLANCE The government of India has established a national digiti- zation plan called Digital India (105). The plan focuses on key priority areas: Broadband Highways, Universal Access Policy references to Mobile Connectivity, Public Internet Access Program, Digital India e-Governance, Electronic Delivery of Services, Information Smart City Mission Guidelines for All, Electronics Manufacturing, IT for Jobs, and Early IoT Policy Harvest Programs. Implementing agencies/programs The first three pillars—Broadband Highways, Universal CoE IoT Access to Mobile Connectivity, and the Public Internet City of Rajkot Access Program—address the need for new Internet and cellular service, with emphasis on rural access. The new infrastructure lays the foundation for all other pillars and Focus areas forthcoming projects, including the Center of Excellence Water supply for IoT in India (CoE IoT) (106). Solid waste management Environment and energy A government-run incubator for IoT products, CoE IoT Transportation “aim[s] to build a Startup Ecosystem for the Nation.” Its objective is, with support from the private sector and aca- Data demia, to create innovative applications and gain domain Not known capability in the IoT sector by harnessing the start-up community. The support for IOT development comes in Technology the form of funding and equipment from companies like Cisco, TI, and Qualcomm, plus matched mentorship, lab Not known space, and research support from institutions such as Indi- an Institute of Technology. The incubator can house up to Financing 40 start-ups and 10 emerging companies and specializes Public-private partnership in robotics, agritech, healthtech, and smart city and Indus- try 4.0 products. The incubator only recently opened (July Capacity development 2016) and there are no specific success stories to report yet. CoE IoT The government of India has established a draft policy Related initiatives on IoT (107). The approach comprises five vertical pillars Smart metering (Demonstration Centers, Capacity Building and Incuba- tion, R&D and Innovation, Incentives and Engagements, Transit Human Resource Development) and two horizontal sup- Water supply ports (Standards and Governance Structure). Jobs A report released by India’s IT industry association, NASS- Not known COM, projects India’s IoT market will reach $15 billion by 2020, with nearly 120 firms currently offering solutions. It identifies smart cities, industrial IoT, and health care as key growth opportunities involving a government to business partnership. 70 IoT in Action India’s Ministry of Urban Development (MoUD) selected Rajkot (108), in the state of Gujarat, as one of the 100 cities participating in its smart cities initiative. Rajkot has implemented smart initiatives (109) in areas ranging from transit and e-governance to solid waste manage- ment and water supply. The city’s vision under its smart city proposal includes several pan-city and area-based development initiatives, with a focus on both infrastruc- ture and ICT advancements in the city and at strategic locations. Objectives of the proposed ICT initiatives include public safety improvement and surveillance, traffic management, quality of public services, and real-time tracking of services. Several of these initiatives include IoT components. The city’s municipal corporation is currently reviewing proposals from the private sector to establish a 200-kilometer-long fiber-optic network, CCTV network, environmental and other related IoT sensors, and several Wi-Fi access points. The city envisions providing the infra- structure to businesses for them to use and benefit from. A variety of IoT-based projects (110) on water conservation, solar-based heating, and climate change–related initia- tives are being planned in partnership with the private sector. 71 72 THE IOT TOOLKIT 73 74 Recommendations and Toolkit for Governments I THE IOT TOOLKIT oT, both as a technology and as a governance practice, is still in its infancy, and while there is tangible excite- ment about it within both government and the private sector, evidence of success remains patchy. Governments Leadership/Policy have a vital role in catalyzing the space and contributing as partners/leaders in the long term. Proactive policy development Based on the findings and the characteristics of successful pilots, we present a conceptual toolkit containing ideas Align strategic objectives and resources for government agencies that want to implement IoT-based initiatives within their jurisdictions. Strategy and Implementation The toolkit is structured using three pillars: Establish sandboxes to develop pilots (test ⚫⚫ Leadership/policy value proposition, technology, policies, ⚫⚫ Strategy and implementation infrastructure, security) ⚫⚫ Capacity and engagement Establish a coordination agency to manage Leadership/Policy and run pilots Proactive Policy Develop public-private partnerships and platforms One objective of this study has been to understand how/ if government policy and regulation has kept up with the Research and develop ‘localized’ business fundamentally different demands of the digital econ- omy in which the pace of disruption and innovation is models significantly more rapid, consumer protection throws up qualitatively different challenges, and business regulation Develop IoT infrastructure requires a nuanced balance between promoting competi- tiveness and correcting market failures. Based on the cases Capacity and Engagement studied, we have identified an initial list for action (this will be supplemented in the future by a detailed policy Engage local stakeholders through note focused on IoT policy). education and outreach Governments need to proactively engage in policy Develop IoT capacity within and outside the development and administration that supports regulatory balance. Broadly speaking, there are two sets of policies— government regulations and standards—that are crucial to support IoT implementation. One set of policies deals with the tech- Encourage standardization nology system itself. Issues include the availability and equity of network infrastructure; data challenges including privacy, security, ownership, and sharing; interoperability of technologies; access to the private sector; and costs. The EU digital protection legislation, Canada’s telecom policy, and Estonia’s X-Road standards are examples of policy interventions aimed at IoT as a technology. 75 The other set of regulations and policies enable IoT National Digital Strategies and Policies applications by businesses either for compliance or for meeting the needs of the marketplace. Many jurisdictions ⚫⚫ U.K. Digital Strategy currently have regulations that may constrain or may not ⚫⚫ Technology and Innovation Futures 2017 - U.K. support the use of IoT for compliance. For example, regu- ⚫⚫ Data Protection Regulation - EU lations may require physical inspections of premises and ⚫⚫ Digitale Agenda - Germany may not allow remote monitoring and reporting by busi- ⚫⚫ Regierungsprogramm Digitale Verwaltung 2020 - nesses. Risk and performance-based regulations provide Germany the foundation for fostering innovation. The United King- ⚫⚫ Digital 2020 - Estonia dom’s Growth Duty directive is an example of a policy that ⚫⚫ Digital Signatures Act - Estonia is intended to support the amendments to regulation to ⚫⚫ Digital Transactions Act - Estonia allow for such technologies. Several jurisdictions, including ⚫⚫ National ID Card - Estonia national and subnational governments in Canada, Estonia, ⚫⚫ Digital Kazakhstan and Finland, are exploring significant changes to regula- ⚫⚫ Telecom Regulatory Policy - Canada tions to reduce burden on businesses, catalyze growth in ⚫⚫ Innovation Agenda - Canada sectors such as agriculture and infrastructure, and allow ⚫⚫ IoT Policy - India for innovative compliance demonstration methods by businesses. Slow regulatory modernization cycles pose a Vision/Strategy Alignment major constraint to eager and forward-looking agencies. It is important to ensure alignment with a larger vision However, these agencies require support, capacity, and and strategic objectives (IoT should support existing vi- directives to move in that direction. sion and not vice versa). Clear and direct synergies should exist between proposed IoT applications and the strategic Governments may stifle innovation in the use of IoT for objectives of jurisdictions that implement IoT-based solu- problem solving by not providing incentives such as tions. The most effective and organic institutionalization funding for pilots and exemptions from regulatory of IoT-based initiatives are possible when they tie directly requirements during experimentation and pilot studies. to strategic initiatives envisioned by mayors or leaders of Governments could consider incentivizing businesses jurisdictions wherein real problems and challenges faced that use IoT applications to generate and share real-time by citizens and businesses are tackled using such solu- data demonstrating compliances. Incentives may include tions. The cities of Bristol (18) and Mississauga (19) have reduced inspections, fees, or recognition. Examples in integrated and entrenched their digital/IoT priorities as the United Kingdom and Canada, as discussed earlier, are enablers for achieving specific strategic initiatives identi- emerging as good practices. fied by their mayors and city councils. As governments grapple with such challenges, a set of new methods loosely called anticipatory regulation has Strategy and Implementation emerged (111) as one possible response. The goal of such proactive policy making is to seek optimum balance between technology development, market regulation, and Sandboxes to Test Policy/ policy administration. Open dialogues with innovators, Technology iterative and performance-based rules, the creation of We recommend establishing sandboxes to test policy and sandboxes and test beds, risk management approaches, technical issues. In fact, sandboxes, facilitated directly or and innovative regulatory delivery through the use of indirectly by government, in the form of physical spac- smart technologies like IoT are example components of es, clusters, and/or environments for running pilots and this set of methods. proofs of concept, were the one constant in all the cases studied. Sometimes referred to as living labs or model A few policy references that may be useful to policy makers: cities, these physical spaces provide facilities for setting up start-ups, building “models” ranging from simple IoT City/Regional Policies applications to even “model” cities. The Bristol Living Lab, ⚫⚫ Bristol Resilience and Corporate Strategies for example, is a place where citizens, artists, technolo- ⚫⚫ Mississauga Strategic and IT Plans gists, businesses, and public sector organizations come ⚫⚫ MK Vision 2050 together to co-create ideas and to understand how digital ⚫⚫ HPA Environmental Policy technologies can be used to meet local needs. Similarly, ⚫⚫ Smart Dubai the Benjamin Franklin Village in Mannheim, which was part of an old U.S. military base, has been converted into a 76 sandbox district designed to test ideas for energy efficien- ⚫⚫ India’s Centre for Excellence in IoT cy, smart grids, and electro-mobility. ⚫⚫ Milton Keynes’ MK:Smart ⚫⚫ Bristol Is Open These sandboxes are designed to test more than technol- ⚫⚫ Connecting Bristol ogy, however; they also serve as test beds for governments to test policy alternatives to accommodate and promote Independent Coordinators the use of IoT by businesses. Procurement policies, for instance, may be caught between opposing bureaucratic We recommend that governments identify and appoint procedures (113), stimulating competition and promot- “coordinators” to lead and facilitate implementation ing innovation (112), and thereby they discourage active (along the lines of Digital Catapult, Astana Innovations, participation by innovative firms, especially during pilot or and Fraunhofer Institute). The successful implementation proof of concept stages. The Benjamin Franklin Village is of IoT-based solutions requires a phased approach and the helping develop ideas for procurement requirements that involvement of multiple stakeholders. The appointment incentivize IoT-based solutions, the relaxation or exemp- of independent third-party bodies as facilitators and care- tion of regulatory barriers such as licensing or inspections, takers of IoT projects during the pilot and proof of concept and gathering stakeholder views on data privacy/owner- stages appears to be an effective model based on the ship. Other ideas being tested in similar sandboxes include experience of the jurisdictions we studied. These bodies, public perception and awareness, data stewardship, finan- typically funded either directly by governments or through cial models, business value propositions, and competency public-private partnerships, act as coordinators between and skill requirements. academia, government, industry, civil society, and other stakeholders. They play the role of project managers and The following are examples of sandboxes: are responsible for the design, planning, and execution of pilots and proofs of concept, and for scaled implemen- ⚫⚫ Blue City Mannheim tation. The U.K. government has created Digital Catapult ⚫⚫ Bristol Living Lab and IoTUK for this specific purpose. Fraunhofer Institute in ⚫⚫ Benjamin Franklin Village - Mannheim Germany has proactively taken on this role and has been building such partnerships. The mayor of Astana estab- lished Astana Innovations to play a similar role. Public-Private Partnerships and Platforms The following are examples of independent third-party The development of public-private-academic partner- bodies as facilitators and caretakers of IoT, coordinating ships and platforms appears to be a critical success factor. academia, governments, industry and other stakeholders: Agencies in Finland and Canada are looking to partner with academia and businesses to evaluate IoT solutions ⚫⚫ Digital Catapult - U.K. for remote monitoring and inspections of technologies ⚫⚫ IoTUK such as elevators, fire protection systems, and building ⚫⚫ Innovate UK management systems. Kobe City in Japan has worked with ⚫⚫ Catapults - U.K. a telecom provider to use a BLE tag to track the movement ⚫⚫ MK:Smart - Milton Keynes of elementary school children and ensure their safety. ⚫⚫ Fraunhofer Institute - Germany Dubai is working with a variety of service providers, includ- ⚫⚫ Astana Innovations - Kazakhstan ing hospitals, auto manufacturers, and parking compa- ⚫⚫ CoE IoT - India nies, to implement a child immunization program. In each case, success hinges on the participation of numerous It is also important to point out that agencies and depart- stakeholders with different priorities, finances, capacity, ments with advanced understanding, interest, and need infrastructure, and constraints. A partnership, sometimes for IoT-based solutions may not always have adequate de- via a “coordinator” office (described below), is usually the cision-making authority to implement IoT-based services. only way to bring these players together. For example, many cities do not have the policy-making authority to support smart city initiatives that involve IoT- Public-private-academic partnerships cover both infra- based applications. Such authority may lie with national structure and nontechnical aspects, including policy and subnational governments. This issue was observed not assessments and implications, public perception and only in developing countries such as Kazakhstan but also awareness, data stewardship, financial models, business in advanced economies, including Canada and the United value propositions, competency and skill requirements, Kingdom. and so on. Examples of such partnerships include the following: Creative, risk-taking jurisdictions such as Milton Keynes are proceeding with their proofs of concept, particularly 77 in currently “unregulated” domains, and preparing to Many cities have developed platforms to collect and share handle regulatory issues and challenges as they arise. IoT-generated data. Access and reuse policies are still very More conservative jurisdictions, such as those in Germa- inconsistent. ny, are working with their national partners to undertake “controlled” experiments. Traditional methods such as ⚫⚫ IoTUK Nation Database municipal bylaws also provide flexibility to cities to exploit ⚫⚫ MK Data Hub - Milton Keynes opportunities for testing IoT technologies. One example of ⚫⚫ Data Dome - Bristol such a practice is in the United Kingdom: the Cambridge ⚫⚫ X-Road - Estonia City Council has approved remote food safety inspections. ⚫⚫ Mississauga Data ⚫⚫ Dubai Data Local Business Models The study has thrown up several examples of incipient Capacity and Engagement local business models for IoT. Estonia is considering “Data Corporations,” with shared ownership across the value chain. The city of Mississauga estimates that it saves Can$2 Engagement, Awareness, million annually (20) through its own fiber-optic network. and Trust-Building Astana Tazartu, a solid waste management company Governments must engage and partner with local established as a public-private partnership, installed fuel communities through education and outreach. Govern- control sensors in its vehicles that have helped reduce ments need to be able to educate, build awareness, and both its fleet size and associated fuel costs. Bristol is eval- engage all stakeholders (115), identifying their individual uating and testing a range of sustainable business models roles and responsibilities in the overall management of over the next two years and eventually hopes to develop a risks from IoT deployments, while clearly communicating suite of models that can be applied effectively in different the broad ranging benefits of the technology. Community contexts. Other jurisdictions are pinning their hope on the groups and citizens can play an early and proactive role in monetization of IoT data. generating ideas, providing feedback and input tackling sensitive and difficult issues such as data privacy and data Business models to sustain IoT initiatives are still evolving, ownership, and ensuring the long-term sustainability of with very few clear “winners”: such projects. The Knowle West Media Centre, an arts cen- ter and charity based in Bristol, is a good example of using ⚫⚫ IoTUK business models outreach and education to develop trust and partnership ⚫⚫ Bristol REPLICATE project with local communities. Develop Infrastructure for IoT Businesses and the public look to governments to proac- tively understand and manage potential privacy and Many jurisdictions have begun to develop their own tech- security issues related to data generated through the use nology infrastructure (fiber optics, LoRaWAN, and so of IoT. Security incidents (28) expose technical limitations on) or to establish “productive” partnerships with telecom of the technology and tend to make governments risk providers to develop data platforms. Stable and reliable averse and react in a manner (114) that may not be in the network infrastructure is a prerequisite for IoT applica- best long-term interest of innovation. Building trust and tions. Cities like Mississauga have developed their own credibility with its citizens is key in the deployment of fiber-optic infrastructure and/or LPWANs that support IoT technology solutions such as IoT, considering the variety of devices. Others like Kobe have entered partnerships with risks and challenges identified above. telecom providers. Kobe is also building an IoT infrastruc- ture using LoRaWAN technology, taking advantage of Useful references include the following: its geography (the surrounding mountains help extend coverage as far as 15 kilometers). ⚫⚫ Knowle West Media Centre (Bristol) ⚫⚫ Best Practice Guides - U.K. Many cities have opted to develop their own IoT infrastruc- ture, while others rely on local telecom providers. Here are examples of a few approaches: Develop IoT Capacity Within and Outside Government ⚫⚫ Bristol fiber-optic network It is essential to develop IoT capacity within and out- ⚫⚫ Mississauga fiber-optic network side government. IoT-based applications and processes ⚫⚫ Kobe LoRaWAN require a very different skill set and competency from the people managing them. For example, remote regulatory 78 inspections may not require physical observations but Standardization may call for strong analytical skills and capabilities. Several governments are already beginning to engage and partner Government agencies must participate in and support with universities and academic institutions to develop international standardization initiatives. IoT and its appropriate curricula, starting from early education all associated technological innovations is still an evolving the way through college/university studies. In the United field. While numerous exciting and innovative devices, Kingdom, the Open University’s FutureLearn program has technological systems, and infrastructure have been devel- created a free online module on smart cities that provides oped recently, their dependability (reliability, availability, foundational and high-level education and understanding resilience, maintainability, and use) is often questionable of smart city applications, including IoT-based solutions. in the absence of uniform standards. It is important that Estonia’s e-School program ensures mandatory education governments, especially in developing countries, active- in digital technology for all students from an early age. ly participate in the development of such standards to ensure that their needs and constraints are expressed and The following resources describe ways to engage commu- addressed by the standards that do eventually emerge. nities and develop IoT-related capacity: Examples of standards development currently under way: ⚫⚫ Open University/Massive Open Online Courses - UK ⚫⚫ Enterprise Training - Milton Keynes ⚫⚫ RAMI 4.0 - Germany ⚫⚫ Hamburg Port Authority - Germany ⚫⚫ IIC (Industrial IoT Consortium) ⚫⚫ Canada’s Innovation and Skills Plan ⚫⚫ OCF (Open Connectivity Foundation), which deals ⚫⚫ Win the Human Race - Canada with interoperability ⚫⚫ Eduroam - Canada ⚫⚫ Project Haystack - a data consortium establishing ⚫⚫ e-School program (Estonia) data standards for data models for hierarchical repre- ⚫⚫ Open University’s FutureLearn - U.K. sentation of devices ⚫⚫ NTIA green paper on IoT 79 80 LOOKING AHEAD 81 82 Looking Ahead T his study is an initial exploration of IoT in the field ⚫⚫ Greater research on issues surrounding IoT infra- in which we try to understand whether the reality structure (technical issues, plus emerging business of IoT for government to business services matches models) implementation realities, beyond the small group of 3-5 ⚫⚫ Examination of the role of IoT in the global value cities that are routinely heralded as champions in the chain and its impact on entrepreneurship and finan- space. The cities we studied are technically progressive; cial inclusion their leaderships understand and champion digital initia- ⚫⚫ A separate analysis of business models for IoT within tives, and have put in place specific governance, financial, government and the private sector and technical infrastructure to implement IoT-driven ⚫⚫ More formal IoT-related data collection (more rigor- solutions. Our initial findings suggest the following: ous data on IoT devices within cities, usage patterns, connectivity trends, infrastructure choices, services ⚫⚫ It’s still early days for IoT in government and much delivered, and so on) work remains to be done. ⚫⚫ The value-proposition of IoT for government to busi- Implementation ness services continues to become clearer. ⚫⚫ Further development of the IoT toolkit which is still ⚫⚫ Business models remain unclear, but the promise is very rudimentary too stark to ignore. ⚫⚫ IoT as a component in World Bank and other de- ⚫⚫ Several cities have begun to establish models for “best velopment projects, ideally in multiple sectors and practice” implementation. geographies (these can serve as further ‘learning by ⚫⚫ Data management is key—as in all digital initiatives. doing’ opportunities that help move the discussion ⚫⚫ Government has a strong role to play, but it must do beyond the hype and potential of IoT) so in the spirit/act of partnership with the private ⚫⚫ Further development of standards sector and the academia. ⚫⚫ More rigorous M&E frameworks ⚫⚫ IoT literacy remains a barrier. Diffusion We recognize that these are initial findings and that a ⚫⚫ There is still considerable need to develop awareness more rigorous and wide-ranging analysis of IoT use/imple- around both the potential and practical aspects of IoT mentation around the world needs to occur. Future work within governments, businesses, and civil society should include the following: ⚫⚫ We have identified several organizations, partner- ships, and networks working on IoT related issues. Research International organizations such as the World Bank ⚫⚫ Wider geographic coverage (and analysis of factors are still peripheral participants at best. There is no such as income, size, digital maturity, and others that need to do more and engage more purposefully might influence differing levels of IoT adoption in ⚫⚫ IoT is part of a larger digital ecosystem and it is different situations/sectors) important to include it in all initiatives related to the ⚫⚫ Deeper research into data- and property ownership– digital economy. And vice versa. related issues in the IoT world, plus a comprehensive analysis of data/digital policies for IoT 83 84 Bibliography 1. Lohr, S. G. E., “The 124-Year-Old Software Start-Up.” New 16. Bristol Is Open. Open Programmable City. Bristol Is York Times. August 27, 2016. Open. [Online] www.bristolisopen.com. 2. Porter, M. E., and Heppelmann, J. E. “How Smart, Con- 17. MK:Smart. MK Data Hub. www.mksmart.org/data. nected Products Are Transforming Competition.” Harvard [Online] Business Review. November 2014. 18. Bristol City Council. Corporate Strategy 2017-2022 3. OECD (Organisation for Economic Co-operation and Consultation. City of Bristol. [Online] www.bristol.gov. Development). The Innovative Imperative in the Public Sector. uk/council-spending-performance/corporate-strate- s.l.: OECD. gy-2017-2022-consultation. 4. Bousquet, C. “How Cities Are Using the Internet of 19. City of Mississauga. Strategic Plan. [Online] www. Things to Map Air Quality.” Data - Smart City Solutions. mississauga.ca/portal/strategicplan/plan. Harvard University. April 19, 2017. 20. ———. Information Technology, 2015-2018 Business 5. www.transit55.ca. [Online] Plan and 2015 Budget. [Online] www.mississauga.ca. 6. Talari, S. et al. “A Review of Smart Cities Based on Inter- 21. [Online] http://www.iiconsortium.org. net of Things Concept.” Energies 10 (March 23, 2017): 421. 22. Open Connectivity Foundation. Unlocking the Mas- 7. MK:Smart. Helping to Delivery the Internet of Things in sive Opportunity in the Internet of Things. [Online] www. Milton Keynes. [prod.] MK:Smart. Milton Keynes, UK: s.n., openconnectivity.org. May 23, 2014. 23. Project Haystack. [Online] http://project-haystack.org. 8. www.plattform-i40.de/I40/Navigation/En/Home/home. html. [Online] 24. United Kingdom, Department for Business, Energy and Industrial Strategy. Growth Duty: Statutory Guidance. s.l.: 9. European Commission. Internet of Things in Digital Single U.K. Government, March 2017. Market. [prod.] European Commission. October 1, 2013. 25. World Trade Organization. Trade Facilitation. s.l.: WTO. 10. Bradley, K. “UK Digital Strategy.” Policy Paper. UK Department for Digital, Culture, Media and Sport, March 26. European Commission. Digital Single Market. s.l.: Euro- 1, 2017. pean Commission. 11. Government of Singapore. Formation of the Smart Nation 27. Directorate-General of Internal Policies. Reducing Costs and Digital Government Group in the Prime Minister’s Office. and Barriers for Businesses in the Single Market. s.l.: European March 20, 2017. Parliament, 2016. 12. India, Ministry of Electronics and Information Tech- 28. Working Party on Communication Infrastructures and nology. Internet of Things. s.l.: Government of India, July 22, Services Policy. “The Internet of Things: Seizing the Bene- 2016. fits and Addressing the Challenges.” Background Report for Ministerial Panel 2.2. JT 03396520. Directorate for 13. Living Lab. Living Lab. [Online] https://www.ludwigs- Science, Technology, and Innovation Committee on Digital burg.de/,Lde/start/stadt_buerger/living+l_a_b.html. Economy Policy, OECD, 2016. 14. Checkit. “Checkit and Cambridge City Council Partner to 29. Cisco. Potential for IoT in the Public Sector. Internet of Transform UK Food Safety.” [Blog] April 6, 2016. Everything. [Online] internetofeverything.cisco.com. 15. World Economic Forum. Industrial Internet of Things: 30. United States, Department of Commerce. “Fostering Unleashing the Potential of Connected Products and Services. the Advancement of the Internet of Things.” Green Paper. Industry Agenda. January 2015. Department of Commerce, 2017. 85 31. Woolf, N. “DDoS Attack That Disrupted Internet Was 51. BBC News. “Bristol Named Best Place to live in Britain in Largest of Its Kind in History, Experts Say.” The Guardian. 2017.” British Broadcasting Corporation, March 19, 2017. October 26, 2016. 52. Bristol Is Open. Bio Application IoT Mesh. [Online] 32. Quatromoni, K. “The Industrial Internet Consortium www.bristolisopen.com/wp-content/uploads/2016/01/ Announces the Industrial Vocabulary Technical Report V. BIO-Application-IoT-Mesh.pef. 2.0.” [Press Release] Industrial Internet Consortium. July 24, 2017. 53. REPLICATE. Excellence in Integrated Energy. [Online] http://replicate-project.eu/energy-efficiency/. 33. Government of United Kingdom. “Digital Strategy to Make Britain the Best Place in the World to Start and Grow 54. ———. San Sebastian Mobility Action. [Online ] http:// and Digital Business.” [Press Release] gov.uk. March 1, 2017. replicate-project.eu/mobility. 34. United Kingdom, Government Office of Science. Annual 55. ———. Excellence in ICT and Infrastructure. [Online] Report 2015-2016. s.l.: U.K. Government, 2016. http://replicate-project.eu/ict/. 35. United Kingdom, Department for Business, Energy and 56. Knowle West Media Centre. “The Bristol Approach.” Industrial Strategy. “Upgrading Our Energy System.” Policy [Online] www.kwmc.org.uk/projects/bristolapproach/. Paper. Department for Business, Energy and Industrial 57. Die Bundesregierung. Digitale Agenda. Strategy, July 24, 2017. 58. Wybitul, T., and Bohm, W.-T. “German Parliament 36. Innovate UK. [Online] www.gov.uk/government/organi- Passes New Federal Data Protection Act.” [Online] Hogan sations/innovate-uk. Lovells. May 2, 2017. 37. Catapults. [Online] www.catapult.org.uk. 59. Plattform Industrie 4.0. [Online] www.plattform-i40. 38. Digital Catapult. [Online] www.digitalcatapultcentre. de. org.uk. 60. ———. [Online] http://www.plattform-i40.de/I40/ 39. Future Cities Catapult. [Online] www.futurecities. Redaktion/DE/Downloads/Publikation/interaktionsmod- catapult.org.uk. ell-i40-komponenten-it-gipfel.html. 40. Digital Catapult. [Online] www.digitalcatapultcentre. 61. Adolphs, P. “RAMI 4.0: An Architectural Model for org.uk/project/things-connected. Industrie 4.0.” www.omg.org. Presentation, June 2015. 41. IoTUk. About Us. [Online] www.iotuk.org.uk/about-us. 62. Seibel, B. Open Data in der Praxis. s.l.: Technologies- tiftung Berlin, January 2016. 42. Gas Tag. [Online] www.gastag.co.uk. 63. Hamburg Port Authority. [Online] http://www.ham- 43. Council of Gas Detection and Environmental Monitor- burg-port-authority.de/en/Seiten/Startseite.aspx. ing. [Online] www.cogdem.org.uk. 64. ———. [Online] http://www.hamburg-port-authority. 44. IoTUK. Mapping the IoT Nation. s.l.: IoTUK, August 2016. de/en/smartport/Seiten/Unterbereich.aspx. 45. Chan, S. P. “Cambridge and Milton Keynes to Lead UK 65. Cisco. [Online] http://internetofeverything.cisco.com/ Growth in 2016.” The Telegraph. January 5, 2016. sites/default/files/pdfs/Hamburg_Jurisdiction_Profile_fi- nal.pdf. 46. Cooter, M. “Taking a Closer Look at the Milton Keynes Smart City Project.” Computer Weekly. January 11, 2016. 66. Woyke, I. New Senses for the city (he) live. [prod.] Innovi- sions. s.l.: Fraunhofer IUK Technologie, July 23, 2015. 47. MK:Smart. [Online] www.apexsuite.mksmart.org. 67. e-Estonia. We Have Built a Digital Society and So Can 48. University of Bedfordshire. [Online] www.beds.ac.uk/ You. [Online] www.e-estonia.com. about-us/campuses/milton-keynes. 68. ———. e-Identity. [Online] www.e-estonia.com/solu- 49. MK:Smart. “Urban Startup Lab from Fronesys Promotes tions/e-identify/id-card/. Critical Entrepreneurship Skills in Milton Keynes.” [Online] 69. ———. Interoperability Services. [Online] www.e-esto- 50. MK:Smart. “Supporting Citizens to Shape the Future of nia.com/solutions/interoperability-services/x-road. Milton Keynes.” [Online] www.mksmart.org/citizens/. 86 70. Estonia, Ministry of Economic Affairs and Communica- 89. Public Policy Forum of Canada. The Promise and Pitfalls tion. Digital Agenda 2020 for Estonia. of Internet of Things in Canada. Public Policy Forum. 2017. 71. Tootsi, T. “Utilisation of Road, Traffic, and Weather 90. Government of Canada. Strategic Innovation Fund. Information in Effective Maintenance.” [Presentation]. [Online] https://www.canada.ca/en/innovation-sci- ence-economic-development/programs/strategic-innova- 72. GoSwift. Estonia Borders Queue Management Service. tion-fund.html. [Online] 91. City of Mississauga. Our Future Mississauga: Strategic 73. Riigi Teataja. Electricity Market Act. July 2014. Plan. City of Mississauga. 2009. 74. My Smart Energy. Find Out What Is Happening in Your 92. ———. Inspiring Possibilities - IT Master Plan. City of Country. [Online] www.my-smart-energy-eu/my-copuntry/ Mississauga. 2015. estonia. 93. ———. General Committee Minutes. May 18, 2016. 75. Riigi Teataja. Electronics Communications Act. January 1, 2016. 94. ———. 2015-2018 IT Business Plan and 2015 Budget. 2016. 76. ———. Spatial Data Act. January 17, 2016. 95. ———. 5-year Energy Conservation Plan. 2014. 77. ———. Electronic Identification and Trust Services for Electronic Transactions Act. October 26, 2016. 96. ———. Advanced Transportation Management System. February 7, 2017. 78. ———. Digital Signature Act. June 30, 2014. 97. Cisco. Transforming to an Engaged and Connected City. 79. OECD Digital Government Studies. Benchmarking Dig- [Online] http://www.cisco.com/c/dam/m/en_ca/innova- ital Government Strategies in MENA Countries. Paris: OECD, tioncenter/toronto/pdf/city-of-mississauga-case-study.pdf. 2017. 98. Ontario Tire Stewardship. TreadMarks Mobile. [Online] 80. OECD. Estonia and Finland: Summary of Key Findings: http://rethinktires.ca/wp-content/uploads/Premiere-Haul- Fostering Strategic Capacity across Governments and Digital er-and-Processor.pdf. Services across Borders. Paris: OECD, 2015. 99. Technical Standards and Safety Authority. Annual Public 81. Rahe, A. “Overview of Estonian ICT Policy Coordination: Safety Performance Report. 2016. How to Keep Costs Under Control and Still Achieve the Results?” [Presentation]. 100. U.S. White House. Technology and the Future of Cities. Washington, DC: White House, 2016. 82. e-Skills Monitor EU. e-Skills in Europe: Estonia Country Report. 2014. 101. NTT DOCOMO. Earnings Release FY 2016. 2016. 83. Soe, R.-M. “Real-Time Economy Applications.” [Presen- 102. Sentilo. [Online] http://www.sentilo.io/xwiki/bin/ tation] Norway_Estonia_Cooperation Seminar, ICT WEEK, view/Sentilo.About.Product/Whatis. 2015. 103. City of Dubai. [Online] http://www.smartdubai.ae/ 84. Embassy of the Republic of Kazakhstan. 100 Concrete about.php. Steps to Implement the 5 Institutional Reforms. [online] www.Kazakhembus.com. 104. Smart Dubai. Smart Services and Initiatives Spanning all City Layers. [Online] www.smartdubai.ae/foundation_ 85. Canadian Radio-Television and Telecommunications layers.php. Commission. Telecom Regulatory Policy CRTC 2016-496. s.l.: Government of Canada, December 21, 2016. 105. Government of India. [Online] www.digitalindia.gov. in. 86. Government of Canada. Budget in Brief. [Online] www. budget.gc.ca/2017/docs/. 106. ———. [Online] http://coe-iot.com. 87. Telus/IDC. Internet of Things Study. 2014. 107. India, Ministry of Electronics and Information Tech- nology. IoT Policy Document. Ministry of Electronics and 88. Infrastructure Canada. Welcome to Canada’s Smart Information Technology. Cities Challenge. [Online] www.infrastructure.gc.ca. 108. Rajkot Municipal Corporation. RITE Governance. 87 109. ———. Smart City Proposals. [Online] www.rmc.gov. 113. GovLoop. The Internet of Things: Challenges and Opportu- in. nities for Government. s.l.: GovLoop, 2017. 110. ICLEI. The Urban Climate Project: Building Clean and 114. Future of Privacy Forum. The Benefits, Challenges and Efficient Cities, Initiatives in Rajkot. [Online] http://urban- Potential Roles for the Advancement of Internet of Things. 2016. climateproject.iclei.org/rajkot.html. Docket No: 160331306-6306-01. 111. Nesta. “Anticipatory Regulation: 10 Ways Govern- 115. Simpson, A. “Increasing the Potential of IoT Through ments Can Better Keep Up with Fast-Changing Industries.” Security and Transparency.” [Blog] U.S. National Telecom- [blog] http://www.nesta.org.uk/blog/anticipatory-regula- munications and Information Administration. August tion-10-ways-governments-can-better-keep-fast-chang- 2016. ing-industries. May 2017. 116. Cameron, D. “Prime Minister Cameron’s Speech to the 112. Georghiou, L. et al. “Policy Instruments for Public Pro- CeBIT Trade Fair.” Hanover, Germany, January 9, 2014. curement of Innovation: Choice, Design and Assessment.” Technological Forecasting and Social Change 86 (July 2014): 117. Willetts, D. “New Initiative to Support $40 Billion 1-12. Smart Cities in the UK.” [Press Release] gov.uk. October 9, 2013. 88 89 90 APPENDICES 91 92 APPENDIX A. IoT Questionnaire IOT Study – Interview Protocol 14. What is the authorizing framework/environment for the use of IoT-based applications within the agency (Government/Regulatory Agen- (e.g., mandate letter, policy direction, etc.)? 15. Are there policy guidelines/standards informing the cies) IoT implementation, and if so, what are they? 16. Are any measurement/evaluation standards incorpo- rated in the policy Category I: Organizational Information   Category III: Areas of Public Infrastructure 1. Country/City Name: 2. Name of Organization: ⚫⚫ What are the areas of public infrastructure services 3. Person(s) Name: and what type of IoT applications are being consid- 4. Persons(s) Title: ered? 5. Person(s) Roles and Responsibilities: 1. Built Environments/Buildings, including institutions such as hospitals, schools, social housing, seniors’ Category II: Legal/Regulatory Framework homes, etc. a. Smart systems such as lighting, elevators, face 1. Is there a formal digital policy from the government? recognition–based security systems, etc. 2. Does the digital policy recognize the use of IoT-based b. Predictive maintenance of engineering systems applications for government service delivery? such as elevators/escalators using real-time 3. Is the current policy designed to foster or inhibit the monitoring growth of IoT in society? c. Real-time monitoring of operation and mainte- 4. Is the policy aimed at specific uses of IoT or is it more nance of emergency management systems such general than that? as fire protection, backup generators, etc. 5. Are there existing laws or policies on freedom/right/ d. Performance-based licensing and inspections by access to information or privacy laws that either facil- regulatory agencies itate or hinder/pose a barrier to the use of IoT-based e. Sensor-based integrated building management applications? systems (e.g., supported LEED buildings) 6. Does the policy cover IP? 2. Energy Systems, including power generation, heating, 7. Are there any specific laws that regulate the collection ventilation and air conditioning equipment, boilers and use of data produced by IoT applications? and pressure systems a. Who owns the data? (The device provider or the a. Remote monitoring and operation of energy buyer? The government? Or another?) systems b. Are there any limitations on the sharing and use b. Sensor-based detection, response, and manage- of this data? ment of equipment failures such as corrosion, 8. Does the policy contain any cybersecurity provisions? leaks, and environmental releases 9. Does the policy specify any technical standards for c. Drone-based monitoring of pipelines IoT; is interoperability a policy goal? d. Indoor air pollution monitoring and response 10. Is there a formal stakeholder consultation/citizen systems engagement process? Were businesses consulted? e. Remote monitoring and verification of certified 11. Were the stakeholders consulted prior to formalizing contractors the use of IoT-based applications? 3. Transportation 12. What was the mechanism for consultation and what a. Real-time GPS-based scheduling and routing was the feedback and response from the consultation b. Real-time monitoring and management of fleet, process? such as school buses 13. Are there any outstanding/residual concerns from c. Remote vehicular inspections stakeholders? 93 d. Tracking and compliance at ports/border cross- 8. Does the agency have formal institutional arrange- ings ments with other agencies in facilitating an efficient/ 4. Environmental Infrastructure, including water supply, effective implementation of IoT-based solutions? water/wastewater treatment, waste management 9. Are there performance management processes/ a. Remote monitoring of water leaks programs in place to measure the effectiveness and b. Flood detection and warning systems impact of IoT-based solutions? c. Remote and real-time monitoring for contami- 10. Are the results from performance measurement nants at wastewater treatment plants available to the public from the businesses and the d. Sensor based real-time garbage/waste pickup, agency? disposal, and tracking systems 5. Food, Consumer Products, and Public Health Category V: Technology Framework a. RFID tags on food/meat products for monitoring of conditions, expiry dates, etc. 1. What was the specific role of the agency in determin- b. Remote monitoring and inspections of restau- ing the technology solution/architecture? rants and food service locations 2. What is the technology architecture that is being c. Protection and supply of vaccines used? 6. Other Applications 3. What are the specific components of the IOT system (sensors, actuators, cloud services, networks/proto- ⚫⚫ What specific types of services are being delivered (or cols/standards, platforms, etc.)? being contemplated) with IoT applications? 4. How interoperable is the solution? 1. Are these services delivered by the agency or by 5. How are security aspects addressed? businesses? (e.g., regulatory inspections are serviced 6. Where does the technology reside? (Within business- delivered by the agency, preventive maintenance es, both businesses and agencies, agencies only, etc.) services are delivered by businesses but accepted/ 7. Who is responsible/accountable for the technology overseen by the agencies) solution? 2. Is the scope of the IOT application limited to certain 8. Who owns the software and the associated intellectu- aspects of the service or across the entire sector (e.g., al properties? are the services limited to certain geographic regions, 9. What types of machine learning applications or other specific types of technologies etc.)? technologies are being used? 3. Is the use of IoT-based applications mandatory or 10. Are the solutions available as a package or are they voluntary? being individually/separately sourced? 11. Were academic institutions involved in the design Category IV: Institutional Framework and development of the technology solutions? 12. How large (how much choice) and how mature (avail- 1. What is the overall agency governance structure for ability/quality/accessibility) is the marketplace for the IoT-based policy making and delivery (roles and re- required technology solution(s)? sponsibilities, organizational chart, job descriptions, 13. What were the relative costs of possible technology etc.)? solutions (on a per business and across the business- 2. Are decisions on IoT-based applications made at the es)? strategic (senior management) level or viewed as 14. Who are the leading providers of technology solu- operational? tions in the marketplace? 3. Do the decision makers have adequate statutory/ 15. What were the challenges in implementing the solu- regulatory authority to recommend/implement IoT- tions and how were they resolved? based applications? 16. What was the time-period for the entire life cycle of 4. How are businesses engaged in the process (volun- implementation (including proof of concept studies)? tary choices, mandated/regulatory requirements, 17. What were lessons learned through the implementa- incentives, etc.)? tion cycle? 5. What is the level of awareness of IoT-based applica- 18. Who is responsible for maintenance of the technolo- tions within the agency and among businesses? gies and how is it managed? 6. Are there formal training/communication programs 19. Are there any dispute resolution mechanisms in for building awareness and educating internal and place? external stakeholders? 7. Do the services provided overlap with other agencies, Category VI: Data Framework and if so, what is the process for reducing conflict and addressing consistency? 20. Has a data governance framework been established? 1. Who owns the data generated? 94 2. What is the data life cycle? 4. Do businesses realize cost savings? 3. Is any data open 5. Do businesses increase their market share through 4. How is the data managed? such applications? 5. Are there provisions/opportunities for outsourcing 6. Are there efficiency gains within the agency? the management/analysis of data to entrepreneurs 7. What are the motivating factors (incentives) for busi- (creating new opportunities)? nesses to adopt/use IoT-based applications? 6. Who analyzes the data? 8. Does the government provide subsidies/rebates to 7. Are there data quality systems in place to manage the businesses or consumers for implementing such accuracy, relevance, timeliness, and completeness of solutions? the data? 9. What is the demand for such applications? Do busi- 8. What decisions are made/actions taken using the nesses view the availability of IoT-based applications data? as valuable for their work? 9. How real-time are the responses/actions to the data? 10. Are there other tangible/intangible benefits that have 10. Are periodic reports produced and shared with the been/can be realized through implementation (e.g., public? improvements in compliance, reduction in negative 11. Is the data made available for free or is it “sold” to environmental/safety/health impacts, reduction in stakeholders, including the agency? breakdowns/shutdowns, etc.)? 12. What is the current skill set and availability of com- 11. Has the city/jurisdiction benefited from the use of IoT- petent resources to handle the data, including data based applications (e.g., increase in new businesses, analytics? reputational impact, increase in investments, etc.)? 13. Is the data collected through the IOT applications part of an “open data” initiative? Category VIII: Financing 14. Is the public able to access and use the data? 15. Are there reports/publications available on the use of 1. How is the technology infrastructure for the IoT solu- IoT-based data? tion funded? 2. What is the role of the agency in the financing model? Category VII: Value-Proposition and Benefits to Govern- (Subsidies, rebates, performance incentives, loans, ment and Businesses grants for proof of concept or implementation, etc.) 3. How is the data infrastructure (through its life cycle) 1. What were the objectives of government? funded? a. Efficiency? 4. Is there a shared model for funding across businesses, b. Compliance? technology providers, agencies, and the consumers? c. Audit? 5. Do stakeholders/users have to pay for the data? d. Business environment? 6. Who pays for the maintenance of the infrastructure, e. Competition? including hardware such as the sensors? f. Innovation? 7. What is the distribution of costs across the technolo- g. Others? gy solution (hardware, networks, data, etc.)? 2. What benefits do IoT-based applications provide to 8. Is there a long-term strategy for the funding model? the agency? 3. What benefits do IoT-based applications provide to businesses? 95 96 APPENDIX B. IOT Systems, Platforms, and Applications IoT technology systems comprise three elements: ment. They can be used for both indoor and outdoor environmental monitoring purposes. ⚫⚫ Sensors ⚫⚫ Chemical sensors: These sensors measure hazard ⚫⚫ Networks levels of certain chemical compounds and radiations ⚫⚫ Analytics in the environment, mainly in harsh environments (for example, mining, chemical factories). There are many types of sensors currently available in the ⚫⚫ Motion sensors: These sensors measure motion and market, including most common following ones: rotation, which are important components in the automation industry. A very common example is a ⚫⚫ Acceleration sensors: These sensors measure accel- motion-sensing light that turns on when it detects eration of objects, and motion that provides useful motion in a room (if somebody walks in, for instance). information in industrial applications to monitor ma- ⚫⚫ Magnetic sensors: These sensors measure magnetic chines or tools. One example is a sensor that protects fields, which can be used in various industrial environ- a laptop from damage when it falls. ments. Common applications include power steering, ⚫⚫ Force sensors: These sensors measure pressure and security, and current measurements on transmission are often used to measure weight (to monitor loads lines. on cranes or in grain silos, for example). Force sensors ⚫⚫ Light sensors: These sensors measure light strength are used, for example, in IoT applications in medical for both energy management and environmental and industrial instruments, packaging, and industrial control applications. A common application of such machinery. sensors is to detect brightness in indoor settings and ⚫⚫ Flow sensors: Flow sensors are used to measure the adjust the screen brightness of LCD monitors for flow rate of liquids in various applications, typically optimum display. vehicles, buildings, and factories. One example is ⚫⚫ Pressure sensors: A pressure sensor measures pres- measurement of flows in vented pipelines like drains sure. A common example is seat occupancy monitor- or sewers to confirm whether they are at capacity. ing in cars. ⚫⚫ Sound sensors: Sound sensors are primarily used to ⚫⚫ Medical sensors: Small medical sensors such as measure the noise level and the intensity of sound in ECG and heart rate monitors are designed to enable different settings, such as cities or factories/restau- remote monitoring for IoT health care applications. rants. ⚫⚫ Vibration sensors: Vibration sensors are used to The following are common network technologies used in sense vibrations of city infrastructure, factory machin- IoT systems: ery, power generators, and in vehicles. One example is the measurement of changes in vibration in factory 1. Mobile Communications and Wireless Wide Area machinery to predict maintenance requirements. Networks (up to 10 km) ⚫⚫ Humidity sensors: Humidity is an important a. 3G/4G: The “G” represents the next-genera- environmental parameter and humidity sensors are tion technology development in mobile data frequently used in climate-based IoT applications and communication, mostly focused on data speed, for air quality measurement in urban areas. security, and more robust communication in ⚫⚫ Temperature sensors: Temperature sensors, used the mobile networks. Most advanced features to measure the temperature of outdoor and indoor in smartphones, such as video calling, were environments, are the most common sensors used in introduced in 3G and are being improved with IoT applications. One example is the measurement 4G technology. of heat to monitor the operation of machines and b. LTE: Long Term Evolution (LTE) is an international devices in industrial systems. mobile communication standard for enabling ⚫⚫ Gas sensors: Gas sensors are used to measure gases high-speed wireless mobile communication such as CO, CO2, and NO2 for pollution monitoring networks to meet the increasing demand of data and CH4, H2S, and NH3 for emissions in the environ- communication. 97 c. LTE Advanced: This is a more advanced LTE stan- 4. Wireless Personal Area Networks/Short-Range dard that targets 4G mobile technology network Device Networks (up to 100 m) speeds. It is also known as LTE 4G. LTE advanced a. Bluetooth: Bluetooth is a wireless standard for is expected to provide a faster communication data transfer between fixed and mobile devices. link with more robust connections. Bluetooth was initially developed to eliminate d. GPRS (General Packet Radio Service): A packed- cables used with personal devices. based mobile communication service with low b. Zigbee/XBee: This is a wireless standard used by data rate communication. radio devices to low-power wireless connection. e. CDMA: It is a cellular network standard primarily It uses the ISM band as the communication used in the United States. frequencies. Like LoRa systems, XBee/Zigbee is a f. GSM (Global System for Mobile Communi- popular low-power area network protocol for IoT cation): It is the world’s most used standard applications. system. Both GSM and CDMA standards are used c. UWB (Ultra Wideband): The UWB standard in 3G/4G and LTE technologies. is used for low-power high-data-rate wire- g. Sigfox: It is a low-power wide area network that less connection for personal devices. It uses a has become popular for addressing the connec- transmission frequency different than XBee and tivity of low-energy remote objects (for example, Bluetooth. smart meters). It is a narrowband technology d. Wi-SUN (IEEE 802.15.4g): Wi-SUN is a global with low-data network link, carrying up to 12 wireless alliance that has been chosen by utility bytes. companies to enable interoperable wireless h. LoRaWAN: LoRaWAN is a low-power wide area standards–based solutions. network system maintained by the LoRa Alliance. e. 6LoWPAN (IPv6 over Low-Power Wireless It is currently the most popular network used Personal Area Networks): Its purpose is to apply to connect objects in IoT applications. Unlike Internet protocol to small devices to establish mobile communication networks, LoRaWAN wireless Internet connectivity. It is another popu- has data rates from 0.3 kbps to 5 kbps and uses lar protocol for IoT applications. gateways to improve the coverage. f. Z-Wave: Z-Wave is a low-power wireless commu- i. Weightless: Weightless is another low-power nications protocol, targeting mainly home and wide area network technology, delivering a office automation applications. solution for wireless connectivity of smart ma- g. Thread: Similar to XBee and Z-Wave, Thread is chines (for example, machine to machine [M2M] based on 6LoWPAN to enable IoT applications. communications). Its wireless protocol uses mesh communication j. Narrowband IoT (NB-IoT): It is a recently like XBee. developed standard for IoT projects, to form h. ANT: This is a wireless technology similar to a low-power wide area network using small Bluetooth. amounts of data communication over long distances. 5. Wired Connections a. Powerline: It provides data transmission on the LoRaWAN, NB-IoT, Weightless, and Sigfox are similar in provid- existing electrical wiring in home and offices ing connectivity solutions for IoT technologies; however, they use without any additional network cables. different wireless communication techniques, frequency bands, b. Local Area Network (LAN)/Ethernet: This is a and network protocols. wired-based network that links computing devices within a building. 2. Wireless Metropolitan Area Network (up to 10 km) c. Cable modem, dial-up, DSL, SONET: These are a. IEEE 802.16 (WiMAX): WiMAX (Worldwide wired communication links used to connect the Interoperability for Microwave Access) is a broad- Internet to devices using either optical fiber band wireless network system established for (SONET) or cables. the deployment of wireless network systems in metropolitan areas around the world. 6. Short-Range Communications (up to a few cm) a. RFID: RFID devices are contactless systems 3. Wireless Local Area Network (IEEE 802.11) (0.5 km) that are widely used to track items and objects a. Wi-Fi: This is a wireless local area network stan- in many industrial environments. RFID uses dard (for example, IEEE 802.11 standard) used electromagnetic waves with low bandwidth and to connect smart devices such as smartphones, low-data communication. computers, smart TVs, and smart appliances to b. NFC: This is a communication protocol estab- the Internet. lished to provide a very short (for example, 4 cm) 98 connection between small devices. It is imple- As the number of IoT devices has grown, so has the mented in contactless devices such as key cards number of applications. Real-world deployment strategies and contactless payment systems. NFC technol- are required for each application and sector (for example, ogy is also widely used in smartphones to utilize deployments of Industry 4.0, Industrial Internet, Wi-SUN, them like a smart card. and GS1 implementations). The German government ini- tiative Industrial Internet (Industry 4.0), for example, was 7. All-IP or Next-Generation Network: formed to redraw industry boundaries and create a new Mobile subscribers and Internet users demand access to wave of disruptive hardware and software technologies for the Internet, placing enormous load on the network infra- improving productivity and enabling new opportunities. It structure. Mobile communications (LTE, 3G/4G), M2M, and includes cyber-physical systems, IoT, and cloud computing IoT technology will all be IP-based communication systems targeting automation and manufacturing technologies. It to access the network communication infrastructure for is now being recognized as the industrial Internet of things the Internet. Users of these new technologies require (IIoT). mobility, speed, easy access, and security for all possible new services. Operators of services demand high speed In a recent report, McKinsey Global Institute identified and increased revenue to establish new services and reach nine settings for IoT usage with the greatest economic more customers, with reduced operating cost. potential, capturing over 100 IoT applications in environ- ments such as homes, offices, factories, worksites (mining, As the demand from these mobile communication devices oil and gas, and construction), retail environments, cities, increases, the next-generation network or all-IP should vehicles, and the outdoors (figure B1). These applications enable advanced telecommunications network, with are estimated to have a total value of $3.9 trillion to $11.1 higher security to meet the increasing demand. There- trillion per year in 2025. The largest setting for the poten- fore, the concept of next-generation network or all-IP is to tial value created is factories, which could be as much as establish an advanced Internet protocol (IP), facilitating a $3.7 trillion in 2025—about a third of the total potential secure, cost-effective, high-bandwidth IP backbone for the value estimated for all IoT applications by McKinsey Global next generation of telecommunication infrastructure, by Institute. connecting all existing networks into IP-based networks. And finally, as the number of devices and applications centered on IoT has grown, so has the IoT marketplace. Figure B1. Nine Settings Where IoT Have Bigger Table B1 provides a list of major hardware, software, and Economic Impact computing companies focusing on IoT systems. This is only a partial list, but it provides further evidence of IoT-focused economic activity. Companies like Cisco, Samsung, Flex, IBM, Entrust Datacard, and Amazon are providing cloud computing services. In terms of hardware and connection technology toolkits, Libelium is currently the leading company, presenting many sensor platforms for various IoT applications and deployments. They have partnered with many companies in the IoT domain as well as with cloud software solution providers to offer all the required components to deploy IoT, M2M, or projects to smart city activities. Their devices have been used for IoT applications such as smart parking, air and noise pollution, vineyard monitoring, gas moni- toring, smart water, and radiation monitoring. Libelium provides a universal gateway called Meshlium, which was developed to connect any sensor to any cloud platform. Many existing large electronic and IT companies are key industry players for IoT hardware developments. There are new start-ups, some included in table B1, taking place in the market for focusing supplications of IoT. 99 Table B1. Existing IoT Platforms for IoT Applications Company Module/s Features Website Cisco Cisco IoT System - A set of products and technologies for creating http://www.cisco.com/ - Cisco Fog IoT solutions from cloud to fog c/m/en_us/solutions/ Computing internet-of-things/ - Physical and cybersecurity iot-system.html application platform - Network connectivity - Data analytics Samsung ARTIK IoT Module - Integration of hardware modules and cloud www.artik.io services IBM Watson IoT Platform - Cloud-hosted service https://www.ibm.com/ Node-RED internet-of-things/ http://nodered.org/ Flex Flex Sketch-to-Scale™ Solutions - E-solutions and cloud service http://www.flexman- Flex Manage Cloud age.com/managed-ser- vices/ Nectar Nectar Cloud - Cloud-hosted service https://nectar.org.au/ about/ NVIDIA Embedded Jetson TX2 Embedded AI - Hardware solutions for embedded computing https://developer. nvidia.com/embed- ded-computing Qualcomm Snapdragon™ system on a chip - Integrated processor and wireless connectivity www.qualcomm.com Smart Cities - Edge processing - Security interoperability - Deploying at scale Snapdragon 835 - Processor platform - Robust mobile security Wireless and RF - Zigbee - Thread - Wi-Fi - Bluetooth - Proprietary Sensors - Low-energy sensor interface - Optical, humidity, temperature, capacitive touch sensors Amazon AWS IoT Platform - A cloud platform that can support billions of https://aws.amazon. device connections com/iot/ GainSpan Wi-Fi Module (FCC, CE, IC, Telec - Development of hosted or hostless application www.gainspan.com Certified) software Wireless - Sub-1GHz - 2.4GHz - NFC MiGLO - Near-field magnetic induction (NFMI) hearables Sensors Lantronix PremierWave - System-on-module www.lantronix.com - Wi-Fi, Ethernet Texas Instrument All required hardware compo- - MIMO Wi-Fi Bluetooth combo http://www.ti.com/ww/ nents available for an IoT imple- - Zigbee, RF4CE, 6LoWPAN, NFC, Proprietary en/internet_of_things/ mentation, end-to-end solutions iot-products.html 100 Intel Intel Quark SE - Microcontroller with sensor boards, interface www.intel.com shields, integrated communication modules Intel IoT Gateway - Aggregate data from edge/Fog to cloud Particle Wi-Fi and cellular connectivity - Prototype-to-platform development www.particle.io LinkLabs Symphony Link - LoRa: Low-power wide area network (LPWAN) www.link-labs.com LTE-M - TCP/IP network LTE Cat-M1 - Extended discontinuous reception AirFinder - Real-time location system for asset tracking www.airfinder.com Libelium WaspMote - 110+ sensors www.libelium.com/ (WSN hardware) - 16 radio tech. (cellular, LoRa, Sigfox, Zigbee, http://www.libeli- DigiMesh, Wi-Fi, etc.) um.com/resources/ MySignals - Biometrical platform for measuring 20 differ- case-studies/ ent body parameters Meshlium Xtreme - Sensors to the cloud Freestyle Freestyle Microengine - Hardware and computing solutions for M2M http://freestyletechnol- M2M Switch ogy.com.au/ Entrust Datacard™ IoT Software Platform - Cloud service provider https://www.entrust- - Device and data security management tools datacard.com Silver Spring Hardware and software solutions - IoT solutions, smart electricity, gas, water and https://www.silver- Networks city services springnet.com/ Autani, LLC IoT platforms for energy man- - Wired/wireless solutions http://www.autani.com agement - EnergyCenter platform, integrating appli- cations for metering, HVAC/environmental, refrigeration, sensors, lighting control ThingWorx IoT An IoT platform - Ecosystem, smart agriculture https://www.thing- Technology worx.com/ecosystem/ Platform markets/smart-con- nected-systems/ smart-agriculture/ Thread Thread network - Network connections using smartphone, http://threadgroup.org tablet, or computer - Network connection to 250+ devices in a single network with 6LoWPAN - Security at network and application layers Trimble Software IoT platform - Across the entire agricultural supply chain https://agriculture. trimble.com/software/ connectedfarm/ IoTree Watchbox Iotreecloud - A solution for building and environmental https://iotreecloud.com monitoring - A cloud solution ThingBot ThingBot-LoRa - IoT sensor hardware solutions based on LoRa, http://www.thingtron- ThingBot-ESP XBee, Bluetooth, and Wi-Fi ics.com/ ThingBot-15.4 SensorUp SEFG - Sensor hardware, cloud solutions http://www.sensorup. SensorUp SDK com/ Gateways IoT WoRKS (IoT End-to-end IoT solutions - Device, gateway, connectivity, security http://www.hcltech. business unit of HCL - IoT platform, data storage, device manage- com/Internet-of- Technologies) ment, data science workbench Things-IoT/ 101 102 APPENDIX C. IOT Standards and Consortia The following organizations and consortia are working to Wi-SUN Alliance establish standards of practices across the various aspects The Wi-SUN Alliance promotes open industry standards of IoT-based systems: for using wireless smart networks, and provides solutions to the interoperability challenge of IoT technology. Wi- Industrial Internet Consortium SUN is becoming a global wireless alliance, chosen by util- The goal of this consortium—formed in March 2014 ity companies enabling interoperable wireless standards– by AT&T, Cisco, GE, IBM, and Intel—is to accelerate IoT based solutions for advanced metering and home energy growth by coordinating initiatives to define common management of IoT applications. It contains the required architectures, provide interoperability, and influence the solutions of interoperability among existing wireless global standards for Internet and industrial systems. The standards that can be used in IoT technologies. Although it group creates tests for real-world applications and creates is mainly developed for utility and smart grid applications, IoT solutions to facilitate industry through intelligent, Wi-SUN Alliance solutions are being adapted for a wide interconnected objects that dramatically improve perfor- range of IoT applications, including agriculture, structural mance, lower operating costs, and increase reliability. health monitoring and asset management, street lighting, parking systems, and more. IEEE (Institute of Electrical and Electronics Engineers) IEEE has designated several initiatives and formed IoT These existing alliances and consortia have outlined rec- groups with members from multidisciplinary back- ommendations for governments and others. Some recom- grounds. IEEE has a working group (IEEE P2413 Working mendations include funding local governments, funding Group) focusing on IoT standards to define an architectural large-scale national projects in certain cities, identifying framework for the IoT. It presents solutions and recom- economic and social impacts that could benefit social mendations for some of the challenges discussed in this impacts, and eliminating policy hurdles that restrict the report for IoT applications in key areas such as transporta- ability of international device manufacturers to enter the tion and health care. market. With regards to the security and privacy domain, according to a survey undertaken by IoTUK, it has become OneM2M apparent that governments should be regulating these to This group is also a global standards initiative that defines minimize the abuse and maximize benefits. Therefore, a architecture, API specifications, security, and interopera- national strategy for IoT and well-established partnerships bility for M2M and IoT technologies. It was formed in 2012 and relationships between public and private sectors are by eight global standards development organizations recommended. (ARIG, ATIS, CCSA, ETSI, TIA, TSDSI, TTTA, and TTC) and seven industry groups. 103 104 APPENDIX D. IoT in Social Media, Social Groups, Meeting Groups, Alliances IoT devices will have the biggest impact on social life ever F-interop expected. It is important for each government to discuss http://www.f-interop.eu/ the developments and deployment of this technology with Europe the public in mind. Many social groups in many countries F-Interop is a H2020 European research project aimed at are already meeting and discussing the implications of researching, developing, and supporting online tests for IoT platforms. Such social media groups give members IoT. Many documents and reports can be found on this the chance to network, share knowledge and experiences, website. and develop business opportunities. There are many IoT alliances in developed countries, and similar activities are Alliance for Internet of Things Innovation (AIOTI) beginning to appear in developing countries. https://ec.europa.eu/digital-single-market/en/alliance-in- ternet-things-innovation-aioti Table D1 outlines some active IoT groups. Social media Europe like Facebook and Twitter have accounts that continu- European Commission initiatives on IoT ously present recent developments of the IoT technology. Alliances and standard groups are formed to undertake IoT Journal technical discussions, considerations and implications of http://www.iotjournal.com/ the IoT technology implementation. RFID Journal Table D1. Active Social Groups, Alliances, and Standards for IoT Development and Discussion http://www.rfidjournal.com/internet-of-things RFID Journal has a section for IoT-related activities and IEEE projects around the world. http://iot.ieee.org/ IoT Centrum Worldwide All activities from IEEE societies are discussed and an- http://www.iotcentrum.com/ nounced on this website, including standardization and USA regulations issues. IoT Centrum is a platform for individuals, companies, and organizations to communicate their key findings, prod- Wi-SUN Alliance ucts, events, and all the latest news on the IoT. https://www.wi-sun.org Wikipedia Worldwide A consortium of global corporations and world leaders, https://en.wikipedia.org/wiki/Internet_of_things focusing on solutions of interoperability among existing General IoT information wireless standards IoT applications in utility services Twitter Activities ITU working group https://www.itu.int/osg/spu/publications/internetofth- IoT Guide ings https://twitter.com/iotguide Europe The IoT Cloud Thread Group https://twitter.com/TheIOTCloud https://threadgroup.org USA IoT Thames Valley Founded in June 2013 by Yale Security, Silicon Labs Sam- https://www.meetup.com/Internet-of-Things-Thames- sung, Next Labs, Freescale, Big Ass Fans and ARM. It is a Valley/ standard focusing on IoT implementations in the home USA environment. 105 IEEE IoT IoT Weekly News https://twitter.com/IEEEIoT https://www.facebook.com/iotweeklynews/ https://twitter.com/IoTwatcher IoT Weekly News Facebook site https://twitter.com/IoTwatcher ioTree Meet IoT https://www.facebook.com/iotree-457741164431092/ https://twitter.com/MeetIoT IoTree Cloud Facebook site Internet of Things Rotterdam IoT Planet https://www.facebook.com/IoT-Planet-705919092869278/ Internet of Things IoT workshop events https://twitter.com/TechThings_IOT SensorCafe IoT.do - DO the IoT https://www.facebook.com/sensorcafe https://twitter.com/IoTdo A website for online sensor news and resources IoT Trends Internet of Things - Europe https://twitter.com/IoT_tt https://www.facebook.com/InternetofThingsEU @arrayofthings in Twitter Internet of Things - IOT India USA https://www.facebook.com/india.iot iotevent IOTknowledge https://twitter.com/iotevent https://www.facebook.com/IOTknowledge IoT Cythings.com - Internet of Things https://twitter.com/hashtag/IoT https://www.facebook.com/iofthings IoT news and development The IoT https://twitter.com/TheIoT iot5g https://www.facebook.com/iot5g Cisco IoT https://twitter.com/Cisco_IoT Internet of Things https://www.facebook.com/Internet-of-Things- Intel IoT IoT-658363714256285/ https://twitter.com/Inteliot reteiot IBM Watson IoT https://www.facebook.com/reteiot/ https://twitter.com/IBMIoT IOT Projects Facebook Groups Intel Internet of Things https://www.facebook.com/Inteliot More than 50,000 people follow this account. IoT.do - Internet of Things https://www.facebook.com/IoTdo Internet of Things https://www.facebook.com/courseIOT An IoT community on Facebook 106 APPENDIX E. Additional Notes on IoT in Government Governments should play an encouraging role for IoT The European Commission publishes working documents developers and companies to implement IoT platforms. as guidelines (for example, “Advancing the Internet of Some countries have already supported many projects to Things in Europe,” in April 2016) to meet needs and specify fully understand the potential capacity of IoT technology the EU’s IoT vision, which is based on three pillars [72]: and its benefits. Here are some of the initiatives. ⚫⚫ A thriving IoT ecosystem Singapore ⚫⚫ A human-centred IoT approach In November 2014, Singapore launched its Smart Nation ⚫⚫ A single market for IoT initiative, allocating $1.6 billion to secure economic and social benefits through smart technologies, particularly United Kingdom the IoT. The funding will focus prominently on large-scale The United Kingdom’s commitment in IoT technology has deployments of smart city applications using sensor and been significant. IoTUK was created to support the delivery computing technologies. And in August 2015, SPRING of government policy and catalyze markets [34] [37]. In ad- Singapore, the Infocomm Development Authority of Sin- dition to participating in the EU’s 7th Framework research gapore (IDA), and the Information Technology Standards program, the United Kingdom allocated an additional £45 Committee (ITSC), under the purview of the Singapore million ($69 million) to the following IoT research projects Standards Council (SSC), partnered to establish the [71]: Internet of Things (IoT) Standards Outline in support of Singapore’s Smart Nation initiative [70]. Three standard ⚫⚫ Future Cities program 2014/15 — £18.5 million ($29 categories—sensor network standards, IoT foundational million) standards, and domain-specific standards—have been ⚫⚫ Enabling technologies for energy 2014/15 — £3 mil- identified under the IoT Standards Outline to enable the lion ($4.6 million) nation to exploit technology and to address challenges ⚫⚫ Connected freight — £4 million ($6.2 million) such as the increased demand on health care facilities, ⚫⚫ Digital health — £5 million ($7.7 million) traffic planning and congestion prevention, and demands ⚫⚫ Location-based services — £5 million ($7.7 million) on energy and resources. ⚫⚫ Reimagining the High Street — £6 million ($9.3 million) European Union ⚫⚫ Secure remote working — £3.5 million ($5.4 million) From 2007 through 2013, the European Union’s 7th Frame- work Programme for Research and Technological Develop- United States ment (FP7) invested more than €130 million ($145 million) The White House launched the Smart Cities Initiative in to projects related to the IoT. The funding was allocated September 2015 with strong support ($160 million toward to academic and industry groups with public-private R&D in IoT technologies that cover more applications partnerships. These projects have been the technological than just smart cities). Now there are many initiatives in foundations for the IoT technology, with several projects the United States. For example, the successful Array of targeting smart city initiatives and “living laboratories.” Things—a collaboration between the University of Chi- cago, Argonne National Laboratory (program operators), The EU’s next research program, Horizon 2020, started in and the city of Chicago—provides some frameworks from 2014 with a budget of €80 billion ($88 billion). Some of its its experiences in Chicago to implement and manage an projects seek solutions applicable to aging populations, IoT project implementation [48]. This project provides food security, and energy efficiency and sustainability [71]. all the implications and roles of participants, including data availability, public meetings, and its governance and The European Commission launched the Alliance for In- privacy policy, in reports that can serve as useful references ternet of Things Innovation (AIOTI) in March 2015 to work for other government and policy makers seeking to make closely with all IoT stakeholders to establish a competitive future implementations more efficiently. European IoT market and to create new business models. 107 Spain/Barcelona Australia The city of Barcelona has been a successful platform for IoT The IoT company Freestyle Technology received significant sensor deployments toward a smarter city project. The city support from the Australian government; it launched its is covered with many sensors for controlling and moni- R&D IoT Innovation Centre in Melbourne and has created toring several infrastructures. Significant outcomes are 150 highly skilled tech jobs in Australia. A nonprofit entity already achieved, including reduced congestion and lower called the Internet of Things Alliance Australia (IoTAA) was emissions, cost savings on water and power, and improved launched in late 2016, with an executive council formed economic development. The Barcelona City Council has of representatives from CSIRO, the ACCC, the Business teamed up with Cisco, the Barcelona Supercomputing Council of Australia, Optus, Telstra, Nokia, NBN Co., IBM, Center, and other technology partners, including Schnei- Intel, Hewlett Packard Enterprise, and the Department of der Electric, the Technical University of Catalonia, and the Prime Minister and Cabinet of Australia. i2cat, to establish a proof of concept platform to centrally monitor the infrastructures in the city. Various technol- Developing countries ogies are used to control traffic, lighting, parking, and For developing countries, IoT has the potential to deliver waste. solutions to many aspects of daily life that could dramat- ically improve the delivery of services related to energy, Republic of Korea health services, security, education, disaster management The Republic of Korea has been one of the most encour- and monitoring, farming, and water quality. With popula- aging countries for providing some required service and tions increasing in developing counties, especially in their necessary development steps for IoT platform design and urban areas, developing countries are investigating how implementation. Korea recently announced that they will to increase and enhance services to address these growth invest a total of $5.6 trillion by 2020. Korea established challenges. IoT can create an intelligent platform for the Global Council of Public and Private Sectors for IoT and developing countries to overcome the existing challenges the IoT Innovation Center to enable partnerships between they face. software, device, or user businesses and large businesses/ SMEs. The smart city project established in Goyang, just north of Seoul, will create an IoT model tackling issues around security, the environment, energy, and transport to support public services with benefits to the lives of its citizens. The Korean phone network LG Uplus team is managing these projects with local organizations in the city [51]. The IoT projects implement the environmental sensors that detect dust, exhaust fumes, and noise levels on the roads, as well as the automatic street lights control system, which turns individual lights on and off by detect- ing nearby pedestrians. 108 109