| Live from Building the Broadband Economy #5 |
Suwon is the home city of Samsung, which has a big
impact on its economy. The city administration has made massive
investments in e-government and networks to create a ubiquitous online
environment for connecting to crime prevention, fire prevention, traffic
information, e-learning and citizen services. John pointed out that
Asian cities are unique in requiring a large amount of documentation
from citizens. Much of Suwon's work has focused on putting this paper
trail online to vastly simplify the lives of citizens. In the process,
they have created a transparent government, in which all processes are
visible and the integrity of its operations is assured.
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| Live from Building the Broadband Economy #4 |
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| Thursday, May 20, 2010 |
| Live from Building the Broadband Economy #3 |
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| Live from Building the Broadband Economy #2 |
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| Live from Building the Broadband Economy #1 |
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I have an abiding interest in a question that is on
the mind of every parent able to afford today's marvels of networking,
the mobile phone and personal computer. What impact is all of the
Facebooking, Twittering, texting and now Formspringing having on the
development of the next generation? (More on Formspring in a moment.)
In the last chapter of our book, Broadband Economies, I wrote about the
tide of research in the Nineties on the psychological impact of Internet
use. "If we take this research at face value," I wrote, "the
conclusion is clear. The Web is a destroyer of social capital. Power
it up with broadband, and you have the makings of a virtual plague
laying waste your community." Photo credit: John Shumaker, 17, on Facebook at his home in Lafayette, Calif. Peter DaSilva for The New York Times |
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You can actually feel the difference between an emerging economy and a mature one. I recall it from trips to Malaysia and India. When you visit a place where the economy is growing like mad, there is electricity in the air. It's the energy of hope. People might not have any more idea where they're going than I do, but they know they're going somewhere and that it's going to be big. In large, mature economies, on the other hand, the highs and lows are muted. There's a lot more to lose and less faith in what there is to be gained. Like big ships at sea, they take a long time to get up to speed and a long time to turn in a new direction.I have not had the privilege of visiting Suwon, South Korea - that opportunity went to my colleague John Jung - but I bet I know what it feels like. I have just finished writing their Top Seven Intelligent Community profile on our Web site, and I recognize the attitude. It says "let's get it done." The 1997 Asian economic crisis made Mayor Yong Seo Kim and his leadership team lose faith in a future that depended on South Korea's enormous chaebol companies. So, they set about building an economy whose growth would be based on small-to-midsize enterprises (SMEs) specializing in IT, biotech and nanotechnology.
And they got it done. Fast forward a few years, and Suwon was home to three new industrial complexes and nine multi-tenant technology buildings. The new Kwangkyo Techno Valley campus is now full of research institutes set up by business, universities and government working hand in hand.
South Korea already has one of the finest broadband infrastructures in the world, but Mayor Kim and his team wanted ICT to be ubiquitous in Suwon. They got it done. A lot of investment later, the U-Happy Master Plan had created a 1 Gbps e-government network. They integrated systems for taxation, real estate, public health and safety, transportation and city administration, and put them online. An e-services gateway handled 600,000 transactions last year from 10 million unique visitors.
In its nomination for the Top Seven, Suwon wrote that "Investment in education is one of the most sound and rational outlays of capital that a government can make." Between 2002 and 2009, the city backed up that proposition by investing more than US$360m in upgrading school facilities, opening new schools and expanding staff.
Globalization is much on their minds. So they opened the Happy Suwon English Village in 2006 to offer intensive learning in the global language of business to 7,000 elementary school students per year. A new Suwon Village of Foreign Languages, which opens this year, will offer the same environment for Chinese and Japanese. In 2007, Suwon established the Gyeonggi Suwon Foreign School. It aims to make the city a premier destination for expatriates with families working for Korean multinationals. And with all of this focus on languages, they are not exactly ignoring technology. The city holds an annual Suwon Invention Competition for students and sends contestants to the World Innovation Olympiad every year. Since 2004, Suwon has organized an annual Information & Science Festival, which attracts 60,000 paid registrants to a National e-Sports Competition, National Intelligent Robot Competition, Professional Gamers Exhibition and much more.
It's not as though the global recession missed South Korea. Well, okay, technically speaking, growth never quite turned negative, because the government poured in fiscal stimulus. But from November 2008 through March 2009, exports slumped every month by double-digit amounts. When your economy has been growing 7-10% for years, that feels like a recession. The difference is attitude. While government and business in Europe and North America have been obsessed with how much and how fast to cut, Suwon has been thinking about how to win the next round of the economic game. They may not know exactly where they are going, but they know they are going somewhere, and it's going to be big.
Until the US financial industry imploded in 2009,
columnists like the New York Times' Tom Friedman
wrote despairing editorials about America's best young minds, who were
graduating from university and going to work for hedge funds and
brokerages. There, they were put to work developing those exotic
financial instruments that, we now know, turned out to be so much toxic
junk. It's a challenge for industrialized nations to interest their
young people in science, technology, engineering and math or STEM. Not
so in the racing economies of China, South Korea, India, Brazil and
other emerging economic powers. There, it is clear to everyone where
the future lies: in making things and delivering services that require
extreme technology skills.
So, how does a community in an
industrialized nation interest its youth in STEM and route them into
careers in companies clamoring for their talents? For a compelling
example, see our profile of Ottawa, Ontario, Canada, one of our Top Seven
Intelligent Communities of 2010. (A quick log-in is required.) Ottawa
is Canada's capital. So naturally, you would expect the most highly
valued skills there to be lawyering and navigating bureaucracy. But
Ottawa is determined to be recognized less for governing and more for
innovating in the technologies of the 21st Century.
Recent
history makes that challenging. When the 2001-02 telecom recession hit,
it decimated Ottawa's communications sector, which includes Nortel,
Newbridge Networks, Cognos and Mitel. Today, Nortel is in bankruptcy,
having been unable to withstand the competition from such Chinese
innovators as Huawei and ZTE. As telecom moved from regional darling to
regional dog, enrollment in secondary school science and math programs
plummeted. That soon translated into lower science and engineering
enrollment at the university level. The tech sector recovered but
interest in science and engineering education did not.
By 2008, Ottawa's economic development
organization, OCRI, its
universities and its entrepreneurs were doing something about it. New
programs included a Specialist High Skills Major for grades 11 and 12
that focused on ICT, and a High School Technology Program that sent
students into companies to create software projects. Universities
joined in with courses in entrepreneurship and e-business, graduate
programs in computer modeling and game animation, new schools of media
& design and a bachelor of engineering in sustainable energy.
The
community has also focused on the "last mile" between the end of
education and the start of employment. It's the golden moment when the
most talented students face a choice of where to start their careers.
TalentBridge is a program that provides entrepreneurially-inclined
university students with part-time jobs at local technology companies,
paid by local government, where they work under experienced mentors.
The companies get the benefit of fresh thinking and new energy, while
students gain business experience and often make the move into full-time
positions with the companies.
Ottawa serial entrepreneur Terry Matthews has created the Wesley Clover
Affiliate Program, which identifies the brightest and most motivated new
graduates, puts them through a "boot camp" training program for 9-12
months, and then pairs them with industry leaders in specific sectors.
The aim is to introduce a new product into the market within 12 months.
That's a smart move for an investor like Matthews, and a great
contribution to Ottawa's future.
I'm glad that serious thinkers
publicly worry about young people who would rather get an MBA than a
computer science or engineering degree. In our Facts & Figures
Library, there is an interesting opinion piece by columnist Ralph Gomery
called "The Innovation Delusion." He believes that
Americans - including Tom Friedman - are fooling themselves if they
think they can have a vibrant tech sector in this country but let the
manufacturing happen somewhere else. Whether he's right or wrong, it's
an important discussion to have. But it is not the thinkers who impress
me most. It is the doers - the Intelligent Communities like Ottawa
that don't just shake their heads about the future, but roll up their
sleeves and get to work creating a better one.
For instance in Eindhoven (Brainport), Holland recently, I discovered that the region was the home of Vincent van Gogh and his family. I had just seen an exciting exhibit of rare paintings and personal letters by Vincent to his brother Theo at the Royal Academy the week before in London and now I was going to actually see the shed where he painted his famous Potato Eaters painting. If that wasn't enough, I was given the opportunity to stay in The Netherland's famous Smart Home for three nights in Eindhoven. Although challenged with the language, I was able to master the various buttons and levers to work everything in the Smart Home. It was quite an intuitive experience and an extraordinary opportunity, but it was not the most surprising while in Eindhoven. I was a bit surprised to learn that I would be looking at the underbelly of their society. I thought that was what I had heard, but actually what I wound up looking at was a very pregnant belly of a woman going into labour and here I was, moments later, being encouraged to deliver a baby, no less.
Now how does a guy who sits most days in front of a computer or in a boardroom find himself in an operating room about to deliver a new born baby? Were my recent honorary degrees somehow interpreted as actually being a doctor? Was something lost in translation? I was in Eindhoven to undertake an examination of the vitals of the community, not the vitals of a woman about to deliver a baby. Well, I guess anything goes in the world of ICF.
So let me explain a bit more. I was about to observe the digital monitoring rooms of a health simulation centre where doctors and their team of nurses practice on simulation, observed by other doctors in remote locations. This was supposed to be all about high-speed broadband and its applications. But the program shifted gears and that day's scenario revolved around a woman driving her car at high-speed and has an accident. She is brought to the operating room that we are observing over dozens of monitors.
Our facility shifts into panic mode when it is discovered that she is pregnant and needs an emergency C section or else lose the baby. I was prepared to monitor this in my comfortable chair sipping a latte. Instead I was given a white doctor's uniform and quickly shepherded into the bright and busy operating room. Others around me were busy with their tasks and one nurse was calming the woman down. The patient was going into shock and there was a new sense of panic as the monitors around me buzz, bleep and whiz. All foreign sounds to me. What am I doing here?
Slipping on rubber gloves, I am handed a scalpel and instructed
with a sense of urgency to slice the belly where marked. I do this as
instructed. I am then given scissors to complete the job. The
gynecologist instructs me to now finish the job by pulling the baby out
of the woman's womb through the incision I had just made. I do as I'm
told and there is great excitement around us. All this excitement in the
span of about 60 seconds. The woman's vital signs improve and the nurse
announces that the baby's vital signs are good as well. Apparently
there was a photographer imbedded in the delivery room, hence the
photograph in the newspaper the next day. I wonder how many people looking at the picture realize that the woman was a very sophisticated wifi-enabled simulator and while she moves her head and eyes and mouth as if she were real, she wasn't. The belly looked quite realistic; but believe me, I sliced into a rubber doll and nothing else.
After that excitement I continued on to witness a driverless bus by a local firm called Phelia in Brainport's Automotive Campus that uses sensors and magnets to remember its driving track, speed and docking capabilities. Eindhoven purchased a fleet of these buses and developed a 10km route with magnets imbedded into the road between Eindhoven's train station and the airport that could be used by the driverless bus. I wonder if that is where the woman had her accident? Wait a minute, it's all simulation.
The make-up of the community also hosts immigrants and a broad mix of new comers coming to Arlington for residential opportunities adjacent to the Nation's capital. But today many of the people actually find work in Arlington. The sense of community is deep. Young, single and tech savvy, many residents and workers give their time freely to participate in commissions and committees. With a high level of education and sense of community commitment, many are on multiple commissions and committees. "It's hard for the leadership to argue with the opinion of judges, Nobel Laureates, international negotiators and experts in fields ranging from medicine to international development." It is after all, I am reminded, the world in one place. "We have over 100 languages spoken in this community and as a community, it is very inclusive and welcoming to all people from around the world interested in contributing. But it is well known that collaboration becomes more difficult as a community grows. It will be Arlington's challenge to maintain that sense of collaboration as the community continues to attract more people to the county.
Photo: Arlington County Board Chair Jay Fisette with Ballston in the background.

Arlington is adjacent to Georgetown in Washington DC, but feels like a major city with 30 storey high rises and densities that are attractive to young couples and families between the ages of 24-35. At a corner in the Ballston neighborhood I see about a dozen individual joggers, dressed in designer running gear, coming and leaving in all directions, and criss-crossing in a pattern that almost feels choreographed. Arlington is attractive to people who work in the defense industry, close to the Pentagon and to Washington's key offices across the river. The Rosslyn-Ballston corridor is a nexus of science and technology related firms, many of whom benefit from the synergy of the close proximity to each other. The other consolidation of firms supporting the business of government and defense is in the Crystal City area, a major spine of high density development adjacent to Ronald Reagan National Airport. All of these firms and the people that live and work in them, and their neighboring lower density residential areas benefit from the major transit capabilities in the region. 11 of the 33 stops are in Arlington. The Greater Washington Region has a population of 5.5 million and benefits from the remaining 22 stops. This inordinate benefit that Arlington has is a consequence of geography and history, but it is also a result of determined leadership and the collaboration of many individuals who make up this community. 45 neighborhood committees and a significant number of commissions keep the population in touch and actively engaged. They work together for the betterment of the community; for their families and for their children.
What is the wow factor in Arlington I asked? I am told without any hesitancy: "It's the committees, commissions and neighborhood groups that make up the county."
It's a good saying, because it expresses two valuable
ideas. First, an organization should be structured to carry out its
strategy, not the other way around. And second, not even the best
strategy will work unless you put the right structure in place to
accomplish it.
Besides, they are wonderfully hard-edged business
terms, aren't they? You feel wise and powerful just saying them.
Compare that with saying another word that ICF uses far more often.
Collaboration. It isn't quite the same thrill, is it? Yet, in
Intelligent Communities, lasting transformation is usually the product
of collaboration among many partners. And this year's Smart21 Communities demonstrate that
making collaboration pay off takes - you guessed it - both strategy and
structure.
Many communities take a collaborative approach
to developing strategy. The city of Ballarat in Victoria, Australia
assigned a team at the local university to develop a plan called
Ballarat ICT 2030. The work took on the rigor and cross-disciplinary
depth of a major research project. The team consulted with state and
local government, local businesses, ICT firms, and community leaders.
They identified trends, uncertainties and linkages with the power to
shape the city's future. Over 220 people contributed through
interviews, surveys, panel discussions, workshops and briefings over
four months. Stir in a generous portion of data on national and global
trends, and the Ballarat ICT 2030 strategy was ready to go. It called
for making the city a globally competitive ICT center by creating the
infrastructure (broadband) and support system needed to create, attract
and retain tech companies.
Collaboration can also provide the
structure for a project. In 1994, Besançon, France became the first
French city to deploy a metro fiber network, even before the 1998
liberalization of France Telecom. It was a cooperative project of local,
regional and national government agencies, which were soon joined by
semi-public organizations such as the Chamber of Commerce and local
university. Collaboration was structured through co-ownership of the
assets, with defined terms for joint network usage and maintenance. The
backbone provided by the cooperative network has enabled Besançon to
launch multiple award-winning educational programs. Interestingly, this
approach finds its mirror image in an American community, Cleveland, where a nonprofit called OneCommunity
also assembled a fiber network serving members of a public-private
cooperative. The OneCommunity network helped to put the city and
greater region (Northeast Ohio) on the list of the Top Seven
Intelligent Communities of the Year, not once but twice.
An
American member of the Smart21 - Riverside, California - has made
collaboration an integral part of both strategy and structure. After
hiring a new city manager to reverse years of drift, Riverside involved
leaders from business, government, community groups and the city's four
colleges and universities in crafting a vision for the future. The
resulting vision called for Riverside to deploy an advanced broadband
infrastructure and use it as a foundation to aggressively attract
technology companies to this low-cost location only an hour's drive from
Los Angeles. Those companies, in turn, would generate demand for the
thousands of students graduating from the city's universities, who had
long taken their skills and earning power elsewhere. To carry out the
strategy, Riverside mayor Ron Loveridge formed a nonprofit corporation
called SmartRiverside. Its board included the CEOs of Riverside's
existing high-tech companies. They formed an advisory group called the
CEO Forum, which began issuing recommendations for attracting and
retaining tech businesses. At each stage in the city's development
since then, the CEO Forum has played a part, from pushing the hiring of
Riverside's first CIO to a decision to deploy a WiFi network for public
safety services, citizens and businesses.
Communities are not
businesses. Decisions are not rendered in executive suites and passed
down through the ranks. Decisions are shaped by politics - the art of
the possible - and by culture and recent history, which makes
collaboration a necessity and truly effective collaboration a
competitive advantage. But as the Smart21 show, collaboration alone is
just a good conversation. In an Intelligent Community, collaboration
follows strategy.
At the heart of a performance-driven culture for
city government is a "Citizen Relationship Management" (CRM) model that
provides a single environment to integrate departmental systems to
capture, analyze and answer constituent-driven requests. It engages
constituents and government employees as key stakeholders, provides
streamlined access to government information and services by encouraging
interagency IT initiatives that, while improving constituent services,
also consolidates disparate systems, decreases paperwork, increases
productivity and saves money.
To emphasize this, a model can be
found in New York City with an approach that demonstrates how best to
deliver this model through executive leadership. Upon taking office in
January 2002, newly elected Mayor Michael Bloomberg, inspired by similar
systems that were being piloted in a handful of cities nationwide,
announced as one of his first acts in office plans for the creation of a
3-1-1 Service Center for New York City. This service acts as a
centralized repository for citizens to make requests, lodge complaints
or simply get straightforward answers to questions about the city
government and its services.
It is now a model of excellence for
all municipalities based on the platform supporting service delivery
automation with CRM which allows the City to not only more efficiently
respond to calls and the program is also designed to proactively address
with situations that lead to a high volume of calls or incidents. This
proactive approach is what Mayor Bloomberg means when he says, "It's not
just a citizen service hot line, it is the most powerful management
tool ever developed for New York City government. I can't imagine
running the city without it."
Now, the City of New York has
delivered on the potential transparency and accessibility functions by
launching the Citywide Performance Review (CPR) that is a
comprehensive reporting vehicle to track the effectiveness of municipal
services based on a series of indicators. It does not discriminate from
the good news or the bad news using CRM and Business Intelligence tools
that result in dashboards and scorecards for the public to view how well
their public resources are used.
Traditionally, CRM has been a
commercial business application to provide business a more strategic
competitive advantage by delivering a seamless, unified customer
experience for interactions regardless of internal organization. Now,
CRM is an attractive tool for government organizations as they transform
themselves to foster the translation of citizen-relevant data into
actionable information by providing the right information to the right
person at the right time. Also, CRM embeds a proactive culture as it
extends an understanding of citizen needs throughout an enterprise thus
enabling all functional areas to make informed, citizen-based decisions.
As CRM can capture incoming data from multi-channel inputs, a 3-1-1
program highlights a workflow process for citizen contact, workload
tracking process and finally, performance management. With careful
thoughtful leadership such as the model Mayor Bloomberg delivered in New
York City, a service delivery regime can be transformational,
streamline processes and align service and program tasks more seamlessly
to drive down costs and enhance decision making.
Several
municipal jurisdictions in North America currently have 3-1-1 programs
and in Canada, the Region of Halton in Ontario and the City of Calgary
are leading the way with their comprehensive business models and tools
to support a complete citizen experience. Now we see more opportunities
for smaller municipalities to engage in 3-1-1 collaboratively with other
communities despite their lower population bases as regionalization of
programs that share resources and information regardless whether it is
across municipal boundaries or jurisdictions is a major new trend for
3-1-1 and CRM programs to drive better performance reporting.
David Gourlay, an expert in Citizen Relationship Management systems, is the Ottawa-based Director for Business Development, Public Sector, Canada for Oracle Corp. He can be reached at david.gourlay@oracle.com.
"We have learned that to raise a happy,
healthy and hopeful child, it takes a family, it takes teachers, it
takes clergy, it takes business people, it takes community leaders, it
takes those who protect our health and safety it takes all of us. Yes,
it takes a village."
So pronounced former First Lady of
the United States Hillary Clinton, before an audience in Chicago 14
years ago. Ever the politician, Mrs. Clinton then shouted in her best
political twang: "And Chicago is my kind of village!"
At that time she was quoting from her controversial book, It
Takes a Village. While her idea seemed radical at the time,
mainly because of its political ideas, it identified a rooted challenge
in an era of increased social mobility and economic and technological
transformation. On the day in 1996 when Mrs. Clinton spoke, the
Internet was in its infancy, along with billions of the planet's
inhabitants who today use broadband and the web as part of their daily
experience. They have used the digital experience to create communities
in their own image.
Like Mrs. Clinton, they intuitively had it
right: we live in relationship, not in isolation. If the physical
community cannot comply to our collective need, a virtual one will
emerge. Borrowing a phrase from Africa, she thus began a revival of an
old idea concerning the strength of communities. It is collective.
"Strength in numbers" is an old political axiom, which usually refers to
voters. However, in the era of the new community, it is unabashedly an acknowledgment of collaboration.
I think the title of Mrs.
Clinton's book, as much as the book itself, began to set the tone for
how I think about the new community. ICF has begun to understand what
it really takes to become a successful village or community in the new
century. Politics has trailed along. At the community level, in many
cases, it has even led. As we head toward naming another intelligent
community of the year I would say that we are still only beginning to
scratch the surface of what is possible.
A new tribalism has
become visible on the horizon. Not one that is collectivist as were
attempts to have a central state plan the lives of citizens. Nor
"tribal" in the sense of being defined or organized in response to an
enemy, or an external threat. But rather one that is capable of
delivering the promise of a safe and more wholesome community. Like
explorers setting out to chart a new land or, closer to home for me, a
satellite exploring the edges of the universe and all of the excitement
that generates, our criteria is a new type of map. It has allowed
hundreds of communities to begin to search for their future, and
understand its potential by looking at successful places.
The
Role of Culture
I wrote in my 31
December blog that the culture within a community, especially an
intelligent community, is yielding an as-yet unmeasured gross domestic
local product. This GDLP comes not from the presence of museums,
historic sites of interest or hotels developed to accommodate and house
tourists. While these are attractive features for any community, and
famously so in cases such as Bilbao, Spain through its Guggenheim Museum or in Hong
Kong, through its new West
Kowloon development, they are not the raw materials needed to
generate the "economy of the creative culture." Their virtue is that
they are promoted in the business and travel sections of newspapers and
magazines, which adds luster to a community for tourists. They also
help to attract real estate investments, add money to the tax rolls and
produce livable wages for workers and managers in the services sector.
Curators of museums, as well as other professionals, do even better.
However, in my view, they are byproducts of what a local culture is
capable of truly producing. In a sense, they are fossilized unless
identified and used as a source of innovation.
To quote another
political figure from the era of the Clinton presidency, former Vice
President and Nobel Laureate, Al Gore, is right when he says that
"political will is a renewable resource." The suggestion is that
innovation and vision, expressed in political terms, will produce new
energy. If this is the case, I believe that it is also true that local
culture is both a renewable resource and imperishable. It is the gold
mine we should rush to exploit.
When a local culture is harnessed
to broadband and telecom, it receives new potency and invigorates an
old "investment." The investment is a complex one to readily define,
but one that is familiar. So familiar that we take it for granted. Yet
it is the continuously reinforced, and reinforcing, experience of
community life. No matter where we are, community life persists through
our daily, vibrant spectrum of experience. We richen ourselves in
direct proportion to our pride of place, educational experiences,
ancestral identification, economic status and our ambition and desire.
The "village" includes a particular history, language and its social
customs.
It can be revealed in a flash. I cannot forget a
presentation made by Darrell Ohokannoak, chairman of Nunavut
Broadband. Nunavut is Canada's third Arctic territory and was
named a Smart21 community by ICF in 2006. We knew that Nunavut had
developed a broadband company and an infrastructure to connect its 28
communities, all of them remote, in an attempt to tackle harsh
unemployment and an increasing disappearance of its cultural essence.
While
beginning his presentation at a summit of Canadian Intelligent
Communities, organized by MISA, I expected another interesting
Powerpoint presentation with graphs, bullet points and a quote here and
there for emphasis. Instead, we saw beautiful photographs of what
seemed like someone's family vacation, but far more unique.
"My
apologies for not having words for you," he began slowly "But we are a
visual people and we tell stories." He paused. "We use our
imagination." In four words he had explained a persistent quality of
his community and one that would inform its unique economic offering.
Using imagination and knowledge of communications technology, Nunavut
had been enabled by the power of broadband via satellite. The satellite
connected it to the world. Over time it managed to use the Internet to
bring to market its unique tribal art, which thanks to its e-commerce
site found markets outside of its frosty region.
The community
had reached into its own core, brought forward its collective
imagination and harnessed it to broadband and related technology and
allowed its cultural assets to renew themselves in a new era of
"community."
It is an old story but one that is constantly
rewritten. The question is, what will it look like in the 21st century,
and how can we best study it?
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Now that ICF has announced its Top Seven Intelligent Communities of the Year, it is a good time to reflect on "the other 14." That is, the 14 out of the Smart21 Communities of the Year that were not selected by our analysts to be among the Top Seven.
These stages in the competition are my least favorite part of our yearly process. So much innovation, inspiration and hard work are on display from October to January, only to be pushed out of the limelight by the Top Seven selection. It's true that the Top Seven scored higher on our Intelligent Community Indicators, and on the annual theme of the Awards, than the other 14. But those 14 deserve to be honored. More important, the rest of us need to know about the strategies and practices that put them on the short-list of the world's most successful Intelligent Communities.
Three of our Smart21 - Danville and Bristol in the state of Virginia, USA, and Porto Alegre in Brazil - illustrate a really successful strategy for community broadband, one that has put them square at the center of growing regional economies.
When
local governments go into telecommunications, they have different
priorities than do private companies. They need to deliver dependable,
high-quality, cost-effective service, and to make money doing it,
because otherwise there's nothing to invest in maintenance and growth.
(For all those who like to chant "people, not profits," I offer the
wisdom of management consultant Peter Drucker, who pointed out that,
contrary to popular belief, businesses do not exist to make profits;
it's just that they just can't do anything else unless they do.) But
governments have other goals that are part of their special mission:
economic development, improved public services, more equal access to
opportunity. Sometimes the pursuit of those goals distracts them from
running the store properly, in which case they lose money and make
voters angry. But that's certainly not the case with Porto Alegre,
Danville or Bristol.
All three communities were starved for both broadband and economic opportunity. They are in rural areas and long depended on agriculture and low-skilled manufacturing for employment. Not a recipe for economic success in the 21st Century. The incumbent telephone or cable TV providers were not willing to make the investments needed to create a robust level of service. So, all three communities decided to do something about it themselves.
In Bristol and Danville, the cities owned their own electric utilities, and made these the basis for the build-out of a 100 Mbps fiber-optic network. In Porto Alegre, a city-owned communications and IT company built a hybrid fiber and wireless network. The original concept was to serve city-owned facilities as a substitute for paying the incumbent telephone carrier for service. In other words, to save the taxpayers money. But demand from businesses and citizens caused all three communities to aim higher. Bristol fought in the courts and state legislature for 3 years, at a cost of US$2.5m, to win the right to compete with incumbents - and within a few years had over 60% of the market. In Danville, community leaders were able to sidestep legal battles by making theirs an open-access network, in which the city provided the physical infrastructure that private-sector carriers used to deliver voice, Internet and video services. Because of a different legal and political climate, Porto Alegre reported no major obstacles to its deployment of both infrastructure and services.
So far, these are community network stories like many others. It was after the networks were up and running that things got interesting. Bristol Virginia Utilities (BVU), the city-owned carrier, developed partnerships with neighboring counties, and became the prime contractor for a network build-out there funded in part by public grants. The networks linked not only to homes and businesses, but also to a new technology park that attracted major IT employers. In Danville, the city-owned electric utility services the entire region, and the third phase of the nDanville network is reaching outside the city limits to more than 20,000 rural businesses and homes. It will support telework, rural schools and local business start-ups. Porto Alegre is using their 350km regional fiber ring to connect rural health clinics with hospitals downtown. That has reduced waiting time at the clinics from 4 months to 30 days, and missed appointments from 40% to less than 10% of the total.
What's the point? Each of these communities has leveraged its own hunger for broadband to make itself the hub of a fiber-connected region. As Mayor Jim Rector of Bristol told me, BVU is generating income from places far outside the city. The network is making possible high-quality jobs to which Bristol residents commute. It has encouraged the state university system to build a satellite campus nearby - connected, of course, to the fiber network. Senior executives of a Fortune 500 mining company headquartered in Bristol told me that they couldn't keep their corporate nerve center where it was without the connectivity provided by BVU. Broadband-based services flow outward from the hub and prosperity flows back in, only to flood outward again like a spring tide.
If your community has its own broadband network, you probably have
opportunities to grow it beyond your own boundaries. In fact,
neighboring communities and counties may be clamoring for your help.
Should you give it? The experience of the Smart21 suggests you
should. You have to get the funding and business model right, of
course, but the rewards to the network owner and operator can be
substantial. And while you are building traffic on your network and
incomes in your community, you will be doing a lot of good for your
neighbors as well.
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My
grandmother used to say that "idle hands are the Devil's playthings."
She meant that when you don't know what to do with yourself, that's
when you are most likely to get into trouble. I guess the lesson stuck
with me. On the rare occasions when I am exposed to reality TV, my
first reaction is always the same. "Those people have way too much
time on their hands."
On February 12, Sam Dillon of The New York Times published a story that shows what a smart woman my grandmother was. The article ("Wi-Fi Turns Rowdy Bus Into Rolling Study Hall")
reported on the miracle that occurred when school buses in the town of
Vail, Arizona were equipped with WiFi hubs. Instead of teasing,
texting, flirting, shouting at, climbing over or punching each other,
the kids turned to the Web for entertainment, communication and help
with last-minute homework. As Mr. Dillon put it, "Wi-Fi access has
transformed what was often a boisterous bus ride into a rolling study
hall, and behavioral problems have virtually disappeared."
The
story shows a local government making creative use of broadband to
influence the behavior of its citizens for the good of the community.
Going to school? Good. Getting into trouble because long bus rides
are boring? Bad. Catching up on homework and practicing digital
skills instead? Good.
As I read it, I was thinking of our Smart21 of 2010.
I realized that smart communities around the world are doing a lot more
than just deploying broadband. They are thinking through how broadband
deployment can also be a policy tool. By applying creativity to the
"how" and "where" of broadband deployment, they are multiplying the
positive impacts on community life and economic performance.
Moncton, New Brunswick, Canada
is a small city of 65,000. If you jump in your car, no part of the
city is more than 15 or 20 minutes away. That makes it a tough place
to run a municipal bus line, because travel by car will always be more
convenient. At least it was until Moncton
decided
to change the equation. The city partnered with a local company, Red
Ball Internet, to install Wi-Fi hubs on all city buses, linked to the
Web at up to 45 Mbps. I have watched full-motion video online (see
photo) while traveling on a Moncton bus, and the performance in this
demanding application was as good as I get at home. Suddenly, the idea
of commuting by bus looks a lot more appealing. Instead of staring at
the cars ahead of me in traffic, I can use the time to get a head start
on my work or finish something left over from the day without leaving
late. Moncton credits Wi-Fi with boosting ridership. That's important
for two reasons. Moncton is growing and traffic congestion could
become a real problem, as it is in Silicon Valley, where it hurts
quality of life and raises costs. Putting more people on buses also
keeps Moncton's carbon footprint under control as its economy continued
to prosper.
Taoyuan County, Taiwan
is home to the international airport that serves the nearby capital
city of Taipei. The airport is an important economic center for the
county. But the blessing is decidedly mixed. Think about what you do
when you fly into an airport located outside the city of your
destination. At my regular hub - Liberty International Airport in
Newark, New Jersey - I get off the plane and head east for my office in
New York City or north for home. That's money leaving Newark, leaving
Essex County, and going out of reach.
Taoyuan's answer is a
plan called Aerotropolis, whose goal is to keep more of the airport's
economic output within the county. An important part of the plan is
"M-Taoyuan," a WiMAX corridor it is building to improve connectivity
across some pretty mountainous terrain. But here's the real point.
When it is completed, it will form a seamless wireless broadband
corridor connecting every traveler on every kilometer between the
airport and downtown Taipei. Like a physical highway that allows
prosperity to flow out of major cities as well as inward, M-Taoyuan
will transform that corridor into an entirely new economic center.
When
communities deploy wireless, they often look for the easy victory. They
put wireless antennas on light poles in the city parks and celebrate.
Hey look! We've got a brand new Wi-Fi Zone! But let me ask you: when
was the last time you went to the park to check your email? When I go
for a walk in the park near my office, it is to get away from email and
instant messages and telephone calls, to feel the breeze and get some
sun on my face.
When communities go into broadband or develop
policies to guide the private sector, it's an important chance to think
about what users need and what social and economic goals they want to
accomplish. "Connectivity for all" is a good slogan, but it's not
enough to make communities successful in the 21st Century.
We are hearing from Professor Cheol-Soo Parkof
SungKyunKwan University in
Suwon is the home city of Samsung, which has a big
impact on its economy. The city administration has made massive
investments in e-government and networks to create a ubiquitous online
environment for connecting to crime prevention, fire prevention, traffic
information, e-learning and citizen services. John pointed out that
Asian cities are unique in requiring a large amount of documentation
from citizens. Much of Suwon's work has focused on putting this paper
trail online to vastly simplify the lives of citizens. In the process,
they have created a transparent government, in which all processes are
visible and the integrity of its operations is assured.
ICF's Lou Zacharilla pointed out that recessions
are dangerous because people can vote with their feet by moving away in
search of opportunity. That has not happened in Ottawa partly because
of a great quality of life but also because of countermeasures put in
place to spur regeneration. Mayor O'Brian described Lead to Win, a
government-funded project that taps technology managers who lose their
jobs with big companies, trains them in entrepreneurship, connects them
with partners and potential customers, and provides seed funding. It is
programs like this because have allowed Ottawa to replace the 20,000
low-skilled manufacturing jobs lost in the last recession with
higher-skilled jobs in engineering and business.
The world isn't flat, he says, it is spiky. A
graph showing where patents are filed, there are huge spikes in big
cities in industrialized economies. Does that mean Africa and Latin
America don't matter? No, it means that we have not yet figured out how
to reach them. Kevin described a project he worked on for the Indian
Air Force. They reserved a portion of their wireless bandwidth to put
self-powered kiosks into Indian villages to give them their first
exposure to the Web. There was a big discussion about whether this
would ruin their culture, or would it preserve the culture forever. The
villages are now able to sell some of their products and services on
the global stage and finding that connectivity does expand and preserve
their culture. They are committed to giving 100% of their citizens
access.
Three recent articles in The New York Times
point to new research and our ongoing lack of real knowledge about the
human-machine interface as it affects young people. On May 5th, Tamar Lewin wrote about a new social
networking site,