Smart City November 2003

Africa’s Smart City

Transforming local government
with an IT enabled strategy
- Cape Town’s ‘smart city’
strategy -

Presentation to TMT
November 2003


The Strategy
What is the Smart City Strategy?


Transformation Strategy
• In 2000, Spanish sociologist and author, Manuel Castells speaking
at the Urban Futures conference at Wits University said “Sub-
saharan Africa runs the risk of being virtually deleted from a world
economy that increasingly is being driven and shaped by
informational and globally networked capitalism…..
• …. Countries can operate effectively in the new global economy
only if they meet two conditions: they must command adequate
information and communication technology infrastructure and they
must generate the human resources to operate it”
• The Smart City strategy was borne out of a similar analysis
of the local, national and international economic
environment. The Smart City strategy is a response saying
that “we refuse to be deleted from the world economy” Our
response is to promote new technologies, increase city
productivity and target social problems to boost our
competitiveness as a basis for success. We have to harness
the power of ICT to ensure the development of the city and
its citizens. We need to ensure that the city has the
necessary ICT infrastructure and that its citizens have the
skills necessary to effectively utilise and leverage this
infrastructure.


Transformation Strategy
Strategy borne out of a sober understanding of the trends
facing the city.
It is a strategic framework that aims to reposition Cape Town
as a leading player in the new global knowledge economy.
It is not only focused on transforming the way that local
government works and delivers its services, but transforming
the way that the entire society operates.
However, its primary interventions are based on what local
government can enable and how local government can ‘lead
by example’ by changing the way that it interacts with
citizens, businesses, other government departments and
other stakeholders
It is not an IT strategy or the “property” of the IT Directorate,
but is instead something that cuts across all City
departments and strategies.


Encompasses these 5 questions
1. What leadership is necessary to establish competitive advantage
in a digital economy and society (smart city leadership)?
2. What must be done to ensure that our policy and regulatory
environment supports the development of a smart city?
3. How will information technology lay the foundation for the building
of a new flexible and responsive organization and enable the
organisation to continually improve in its efficiency and
effectiveness in delivering its programmes and services?
(administrative/ e-government strategy)?
4. How do we use IT as an instrument to foster the economic and
social development of the city (development strategy)?
5. How can IT be used to ensure/ enhance good governance (digital
democracy)?


Council’s Vision – make Cape Town a Smart City
Required outcomes for 2001 - 2004
Citizens to deal with local government services
Cape Town recognised as the leading South
in an integrated manner (eg. via one-stop
African city in the use of information and
shops)
communications technology for city
management (IT enabled organisation) Local government more customer friendly and
citizen oriented
ICT widely used in the city achieving its
strategic priorities (i.e reducing crime, Improved and informed decision making
combating HIV/ Aids, promoting job creation processes
and tourism & free basic services) Growth and retention of the IT industry in the
Policy and regulatory environment that is city
conducive to electronic commerce, protection More people skilled in IT operating within the
of intellectual property rights, and an enabling economy of the city
legal framework for the digital transformation
Reduction of the digital divide due to the
of local government operations and society
widespread availability of public access to
achieved
Information and Communications technologies
Services accessible by multiple technologies, (ICT)
including web sites accessible from PCs,
Local government, the politicians and the
kiosks, cellular phone and call/ contact
officials more accessible
centres.
IT organisation that provides world class IT
Highly cost effective and efficient local
services to local government and local
government
government related organisations.


The President says….

“An important area being addressed under NEPAD is the
issue of using Information and Communication
Technology to leapfrog the development of the continent
forward. In order for Africa to benefit from the globalisation
process and the information age, ICT infrastructure
development on the continent is vital.
At the national level, as we are certainly aware that the
effective use of ICT in any country impacts strongly on the
productivity and competitiveness of that economy as well
as the ability of government to deliver on its social goals.”


SMART CITY RELATED
PROJECTS
From Strategy to Implementation


The strategy encompasses many projects
that drive the city a smart city
Some of the smart city projects currently underway

Interactive
PC’s for and
Councilors transaction

e-Project Suite
enabled web
Digital
Digital
Internal infrastructure
signatures
Business
Smart City Architecture,
Centres
Work Group Council
standardisati
Agenda’s
Legislation on and
External and reports
Review consolidation Kulisa
Smart City online
Projects Project
Steering
Open
Committee Content
DSP
Innovative
Democracy Management
Partnership BEE
Electronic
Project
Strategy Intranet and
agendas and
Tourism e-
(Government, Portal
registry
E- Business
NGO, Private, development
IT service
Transactions project
community)
Online
provider
Bill
Bandwidth
E- Services
strategy
Barn
Government Directory
Training
Centre of
Cape On Line Cape On Line
strategy
Excellence
e-City
External
Projects City/People
e-
Policy & e-
Leadership
Development
Government
Regulatory Governance
Internal
Environment
Project


Project Ukuntinga
E-Government

Project Ukuntinga: Implementing SAP
ERP in record time
The City of Cape Town is the first local authority in South Africa
to perform a large scale SAP implementation


Implementing SAP in record time
18 month implementation of mySAP.com including HR and
Payroll, Financial Accounting, Management Accounting, Asset
Management (FI/CO), Materials Management and Procurement,
Real Estate, Plant Maintenance, Revenue Management and
E-Government

Billing (SAP ISU-CCS).
Cost: R300 Million +
Number of SAP users: 6000
First Release: 10 months (HR and Payroll, Financial Accounting, Management
Accounting, Asset Management (FI/CO), Materials Management and Procurement)

This must rank as one of the largest Local Government
initiatives in the world - I have been unable to identify any
other project at a Local Government level anywhere in the
world to match this programme in size
Donovan Muller – Accenture Partner


ERP is an critical enabler to “smart
city” strategy
An ERP will provide the
solid foundation on
E-Government

which the eGovernment
strategy can be
deployed.
_________

eGovernment flip flops
relationships:

Citizen Citizen

Official IT

IT Official


E-Government

“We agreed that we would focus on E-
government because E-government is a
necessity for the efficient and effective
operation of government.”


City/People Development

Smart Cape Access
Project

e-mpowering the people
www.smartcape.org.za


Smart Cape Access Project

Objective: to ensure that all citizens of Cape Town have
access to basic information and communication technologies
(ICT).

Public access model that allows computing facilities to be
provided cost effectively, using open source software and
piggybacking on existing infrastructure and resources.
– Word processing and other applications
– Connected to the Internet
• Web sites
• E-mail

Enabler of other social and economic development initiatives
by the City


The Pilot Project
Six libraries

– Grassy Park Library
– Guguletu Library
– Hector Peterson Memorial Library, Lwandle
– Delft Library
– Brooklyn Library
– Wesfleur Library, Atlantis

Six months
Provide infrastructure, not staff
Monitor impact, costs
Simplicity, No technical management required


Where are we at currently?

Expanding the Smart Cape Access project to all
City owned libraries;

Formalising the Volunteer Programme;

Exploring sustainability opportunities through the
facilitation of local content e.g. MRC;

Exploring the implementation of a community
computer based literacy project with Provincial
Government of the Western Cape.


Towards a Smart City…

Self-service system where citizens and businesses
will be able to:
– Access local government information
– Apply for services
– Query and Pay accounts
– Access tenders and job opportunities
– Access local business support for emerging and small
businesses



“Entire communities need to be exposed to
the benefits of ICT and positive attitudes
created towards the cultivation of
awareness and everyday access and use
of this technology so as to bring all our
people into the information age.”


e-Government Market Research Study:
E-Governance

In Collaboration with Province
Technology and public services
- how e-government can improve service delivery -


What is e-government?

• “Transformation of internal and external public sector
relationships through Internet enabled operations,
E-Governance

information technology and communications to optimise
government service delivery, constituency participation
and governance”
Cape Town IT Directorate


Research purpose
“Which government services should be
transferred into a digital form and made
E-Governance

available online?”

Approached from a beneficiary perspective
[Other perspectives: technical, access, political,
internal efficiency, etc.]


Recommendations
Need a vision specifically about services
Develop an integrated plan of action i.e.
- Publish information online about all services as a first step. Create a
services directory [Currently being developed]
E-Governance

- Redesign government web site around beneficiary needs [Currently
being developed]
- Integrate this process with the Communications Internet strategy work
[Currently working on this]
- Use web interface to power call centres
- Develop and implement rigorous standards for forms. Create a
central forms clearinghouse and repository
- First automate information transactions
- Promote online service elements extensively as they become
available, internally as well as externally
- Automate financial transactions as ‘final’ step



ICT for Economic Development
ICT as an enabler/tool in other industries


ICT as a channel for business
support

The City has identified several economic sectors as priorities for
support by local government. These sectors include:
– Tourism
– Film & Media
– Medical services and products
– Information Technology and Communications
– Design/quality-intensive manufacturing like jewellery and boat building

Use of ICT to channel information
– such as market intelligence
– so as to facilitate the growth and development
of these sectors.


Description of a Business Service Centre

The centre will physically consist of a room equipped with:
– Approx 10 computers with Internet access and business productivity applications.
Each will be located in an office cubicle, which can be rented by the hour.
– A network server for managing the system.
– A network printer
– A photocopier and scanner
– A fax machine
– Other office facilities and equipment
Space will be available for small business providers to offer other
accounting, marketing and other services of to customers of the
service centre; and for workshops and other small meetings to be
held.

The centre will run on a commercial basis, with customers paying for
the services provided.


Where are we now?
3 pilot sites have been identified:

– Khayelitsha
– Guguletu
– Langa

Launch of the Khayelitsha Business/Tourism
Information & Digital Centre took place on 11
November 2003. Launch was addressed by the
Deputy Mayor.



“The growth and development of small,
medium and micro enterprises can and
must benefit from the available technology
so that we are able to expand access to
technology to the wider community of our
business people to encourage business
growth and improve the level of
competitiveness even among the smaller
corporations.”


Innovative Black Economic

Empowerment (BEE)
Building real skills in ICT amongst previously
disadvantaged individuals, communities and
companies


Various initiatives

Individuals
– Co-operative training with Technikons
– Learnership programmes (currently fed from co-operative training)
– External and Internal Bursaries

Companies/ Organisations
– Procurement supports the ideals that we are trying to achieve.
Focuses on real skills transfer and real empowerment on the
ground – even in large, complex projects (will be discussed in
more detail)
– Also work with local SMMEs to build their capacity in a way that
benefits the city, the SMME and the individual resource. Aim is to
create strong sustainable black ICT companies in Cape Town as
well as to build skills and companies – not enrich Directors.
Therefore the city sets the rules.


For example: On the the ERP project
Penalties (max 25%) are set and defined as follows:

– 60% of team to be PDI – 5%

– 50% of team to be Black – 5%

– 50% of team to be Women – 5%

– 25% of team to be African – 5%

– 25% of team to be sourced from SMME’s – 5%

Over and above this, trainees were brought into the
project. Most of whom have now found employment



Kulisa Project
Building a Smart City: Enhancing our IT Skill
Base


Vision
Kulisa (“to grow”) Project

Aims to be a leading partner in rapidly building and sustaining
a growing South African ICT sector through the provision of
skilled and experienced individuals according to the needs of
ICT and ICT supported industries.

1. By encouraging organisations with existing internship programmes
to grow their intake of learners, through incentivising these
organisations with partial grants;

2. By encouraging organisations with no internship programmes to
develop such programmes, or alternatively to adopt an existing
Youth Internship Programme; and

3. By assisting the ISETT SETA to accelerate SETA processes and
procedures.


Proposed Intake

Training will focus on the following three key areas namely:
– Technical i.e. IT Technicians
– Development i.e. programmers
– Project Management

Focus on targeting the following group of individuals:
– Unemployed matriculants with an aptitude for ICT: YiP encourages
organisations not to use first line filtering such as matric, maths and
science.
– Unemployed graduates from Universities and Technikons: The
figure of over unemployed 300 graduates has been mentioned
before.

Interns to be recruited from previously disadvantaged
communities and from other Directorates. [Requires a policy
decision]


Current Status

Completed the selection of first 100 interns

Completed the training of mentors

Launch scheduled to take place on 21 November
2003


Urban Gateway Service
e-Governance

Centre: A Pilot
In Partnership with DPSA


Background

March 2003: Presentation made to the City by CPSI
(Centre for Public Service Innovation)
E-Governance

July 2003: Letter of intent signed

September 2003: Discussions with Provincial

Government on integrated service delivery

Overall concept design, to be adapted for Metro
requirements


Concept
Single point of contact Welcoming, service-oriented
environment
- Central Government
- Provincial Government Shorter queues, assisted by
- Metro services people and technology
E-Governance

Access to services Improved tracking of services
Near transport nodes
-
Integrated Service Delivery
Many services in one place
-
joint project between spheres of
-
Many services at one service
-
government
point
Managed queuing
-
Appropriate institutional structure
Access to information
Engagement process between
Support for previously
-
stakeholders
unserved citizens
Trained people with access to
-
range of services
Knowledge of wide range of
-
sources


Integration with Cape Town proposals

• ‘Matching’ of CT and national proposals
– Citizen focus
E-Governance

– Seamless access
– No need for citizen to know how to access a particular
Department
– Improved co-operation in governance of 3 spheres

Next two slides show conformance to Cape Town
strategy


Conforms to Service Interface
“ The frontline of the system will be a network of service centres
located at safe and accessible points across the city.
Access them via walking into a centre, through the single phone
number, fax or e-mail.
E-Governance

Well-trained multi skilled officers will be able to address 80-90% of
user needs at the first point of contact. All centres to have cash
receipting facilities.
Frontline centres to be supplemented by a number of ‘specialist
centres’ (including development One-Stop shops located in the
major CBDs, able to process planning applications and related
requests very rapidly).
Administrative offices and cash offices will be the foundation for this
network. However, the City will move some of the centres to more
convenient sites.
Establishment of a pilot centre in a poorly resourced area.
”


Integration with Cape Town
proposals (2)
Aligned with Cape Town Strategic document
– Goal 2.1: Improved access to services, information and
facilities
E-Governance

– Goal 2.2: Extending engagement and public participation
– Goal 2.3: Decentralising services and reaching out to citizens
– Goal 4.1: Improving access to decision-making processes
– Goal 4.2: Improving governance practices by moving
government closer to the people.
Institutional structure designed to match the
proposed design for City of Cape Town


Benefits for The City of Cape
Town
Alignment with and support of strategy

In line with proposed operational model
E-Governance

Links to proposed pilot centre

Financial partnership with other spheres of Government and
private sector

Catalyst for co-operation between City and other spheres of
government


Implications for Cape Town
(1) - Responsibility
Contracting or provision of premises
E-Governance

Establishment of the service centre as a running institution

Contracts to DPSA, who co-ordinate information provision from
National and Provincial services

Provision of own services

Local service delivery standards

Metro remains the leader in service provision


Implications for Cape Town
(2) Financial
Operational cost of the Metro services which are delivered through
the centre
E-Governance

Capital investment arrangements to be defined as part of the
business case - need to protect financial sustainability of the City

Shared overall cost between Metro and other service providers,
who are paying for their portion of the centre
– E.g. Home Affairs may utilise 25% of the Centre and contribute 25% of
operational costs. This reduces the overhead portion of the City’s cost.


Current Status

Feasibility stage of the Engagement Process
E-Governance

Tailor Business Plan to City of Cape Town


Approval by TMT

Agree to participate in feasibility
E-Governance

Establishment of mandated team to develop business
plan – led by IT and Area Coordination, supported by
– Urban renewal
– Economic Development
– Social Development
– Relevant Subcouncils

• Consideration of business plan


Other Related Projects

Development of the Health Environment: A joint project
between City Health, IT and the Provincial Government
Health Directorate
Film permitting system
Programme eXite
Implementation of the Microsoft EPM tool: A standardised,
integrated project management tool
Representation at the World Summit on Information
Society Conference, Geneva
Performance Management System, Budget reform
reporting system, GIS Architecture Project, + may others


GOVERNANCE
Leadership

The Importance of Integrated Coordination


Smart City Strategic & Operational Framework

Strategic
Smart City PGWC
Strategy
Management &
External Smart
Governance Internal Smart City
City Steering
i.e. Strategy/Vision/Marketing
Work Group Committee
Leadership

City/People
Leadership e- e-
Policy &
Pillars
Development
Government Governance
Regulatory
Environment

Operational
e-City Smart Cape Urban
Projects Access Gateway
Point Services
Centre

Project Governing Structure

Project Team Members

Information & Communication Technology

City of Cape Town

External City of Cape Town


The Smart City Convergence
Leadership Smart City
Action Items:
• Build a broad shared view
of what we want to Policy and Regulatory
achieve
Leadership

environment
• Include constituents,
E-government
partners and
advocacy groups
• Develop a cooperative Economic and social
architecture Development
• Align all initiatives with the
Digital democracy
architecture and the
strategy
• Build demonstration
projects
Time


Results
To date the Strategy has received national and provincial
recognition. We have also won the African ICT Achievers Award in
2002 and 2003.
SAP ERP implementation is the most comprehensive ERP
Leadership

implementation in local government in the world. Real information
is now becoming available and challenging some key assumptions
in this organisation
We have also received the Bill & Melinda International Access to
Learning Award for our Smart Cape Access project.
We have an established working relationship with the Provincial
Government of the Western Cape.
We have delivered real capability into communities and we have
shown what a developmental local government is all about


Conclusions
The City of Cape Town has a solid strategy and a plan to
become a ‘smart city’
This is a 5 year strategy with various projects and
deliverables that build upon one another
Integration and alignment is critical
The key differentiator in the city is that we have started on
the path to implementation.
Our analysis of Cape Town’s ICT strategies suggests that the city has a high strategic level of
thinking and acting.
Furthermore, ICT strategies are very well embedded in other City strategies. The I-visions and strategies
of both Cape Town and the Province reflect a comprehensive approach, harnessing ICT both in
policy goals (social, economic) and processes (re-organising the municipality and the province to
make them more effective and efficient).
Euricur (European Institute for Comparative Urban Research)

Smart City November 2003

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Smart City November 2003