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    Report on the useof electronic networksin cities

    Is your city an eTropolis?

    This report was prepared by

    The Center for Strategic Technology Research

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    About this report

    This report is based on a series of case

    studies performed in the Spring and

    Summer of 1999. The research primarily

    consisted of on-site interviews covering

    18 technology initiatives in nine locali-

    ties. These interviews were complement-

    ed by extensive secondary research into

    initiatives in many other localities.

    This research was conducted by

    The Center for Strategic Technology

    Research. Primary researchers were

    Mark A. Jones and Tony J. Costa.

    2 Copyright 1999. Andersen Consulting. All Rights Reserved.

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    5 Is your city an eTropolis?

    This section discusses the types of initiatives taking place

    worldwide. It will help civic and organizational leaders

    understand how activities that are currently taking place

    in their city stack up against world standards.

    6 The Initiative Classification Framework

    8 Standalone Applications

    10 Integrated Applications

    12 Meta-Applications

    15 Key areas for concern

    Pulling off a successful initiative is difficult. In this

    section, eight key areas for concern are discussed in light

    of the case studies. Recommendations for overcoming

    these challenges are also presented.

    16 Overview

    18 Fit

    20 Comprehensive Approaches22 Buy-in & Commitment

    24 Maintaining Cross-Organizational Applications

    26 Actionable Visions

    28 Systemic Relationships

    30 Technological Change

    32 Personality & Culture

    Copyright 1999. Andersen Consulting. All Rights Reserved. 3

    Table of Contents

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    Rarely, there are cities

    that attempt to rethink

    how services are delivered

    to an entire portion of the

    population.

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    Cities everywhere are rushing to

    embrace the potential that computing

    and communications technologies offer

    to transform cities into more economi-

    cally and socially prosperous places tolive. Current initiatives vary widely in

    terms of their ambition and how much

    they impact city life. For the most part,

    cities focus on relatively straightforward

    applications that make it easier to access

    existing information or automate rou-

    tine services.

    In rare instances, however, there are

    cities that attempt to rethink how serv-

    ices are delivered to an entire portion ofthe population, or they reengineer inter-

    organizational processes across entire

    industry sectors to gain new levels of

    efficiency. These cities are on the road

    to becoming an "eTropolis", a city that

    uses technology to fundamentally

    change how it works.

    Initiatives

    Mapping initiatives into the Initiative

    Classification Framework will help civic

    and organizational leaders understand

    the kinds of activities that are currentlytaking place in their city. This report

    will discuss benefits and challenges for

    each of the three types of initiatives.

    This report will also help city leaders

    determine if their city is on the road to

    true transformational change.

    Initiatives fall into one of three classifi-

    cations:

    1. Most initiatives are StandaloneApplications that can be successfully

    developed by a single organization.

    These applications range from simple

    online information repositories to

    sophisticated eCommerce applica-

    tions.

    2. Some initiatives bring together mul-

    tiple organizations to jointly create

    Integrated Applications based on a

    shared vision for how technology

    can help all of the organizationsfunction. By combining the resources

    of complementary organizations,

    these initiatives can leverage scale

    and broader expertise to deliver

    greater benefit for their locations.

    3. And, only rarely, there are cities that

    attempt to create Meta-Applications.

    These initiatives rethink how services

    are delivered to an entire portion of

    the population or reengineer inter-organizational processes across

    entire industry sectors.

    Copyright 1999. Andersen Consulting. All Rights Reserved. 5

    Is your city an eTropolis?

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    6 Copyright 1999. Andersen Consulting. All Rights Reserved.

    Three levels of development

    In general, there are three levels of initia-

    tive development within cities. These lev-

    els describe the ambitiousness of initia-

    tives and their intended impact. In a

    Wired City, most activity centers on

    Standalone Applications such as online

    forms and information repositories devel-

    oped by a city agency. In a NetworkedCity, organizations also form partnerships

    with other local organizations to jointly

    create Integrated Applications, such as

    real-time data sharing applications. In an

    eTropolis, the most complex level, organi-

    zations attempt to develop standards and

    protocols that govern data sharing, busi-

    ness processes, and electronic transactions

    across many levels. These Meta-

    Applications can be expansive in their

    scale and may touch hundreds of organi-

    zations within a city or, in some instances,

    an entire geographic region.

    The InitiativeClassificationFramework

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 7

    Standalone Applications

    Standalone Applications are thesimplest initiatives and are almostalways the product of a singleorganization. They are best whentargeted at defined user popula-tions such as small businesses orsenior citizens that have common

    sets of needs. StandaloneApplications usually extend existingproducts or services or aggregateinformation from publicly availablesources such as government agen-cies, community organizations orusers.

    - Online access to content- Routine transactions anyplace,

    anytime

    - Easy to implement and quick togenerate a return on investment

    - Leverages and extends existingproducts and services

    - Provides increased exposure toexisting and new user popula-tions

    - Lowers transaction coststhrough automation

    Integrated Applications

    Integrated Applications are theresult of a joint effort by multipleorganizations to implement ashared vision or pursue a commoninterest in a given market. Often,these initiatives involve data orinformation sharing among partici-

    pating organizations. In someinstances, new channels are devel-oped to support or deliver productsand services.

    - Integration of products andservices from multiple organiza-tions

    - New channels for gaining accessto products and services

    - Intelligent bundling of productsand services

    - Achieves greater efficiencies ofscale, lowering overall costs

    - Generates new data and infor-mation assets through aggrega-tion

    - Makes better use of informa-tion, services, and resourcesfrom multiple organizations

    Meta-Applications

    Meta-Applications are the mostcomplex and ambitious initiativesorganizations and cities can under-take. Meta-Applications dramatical-ly restructure the ways in which anentire industry, sector or city inter-acts and delivers products and serv-

    ices. As such, Meta-Applicationsrequire the involvement of manyorganizations throughout the city.

    - Products and services are organ-ized around user needs andintentions

    - Comprehensive access to multi-ple services through one source

    - Ensures continuity of serviceacross many organizations andlocations

    - Streamlines business-to-busi-ness interactions

    - Enables organizations to focuson their core competencies

    - Creates competitive advantagesfor an entire industry, sector orcity

    Efficient standaloneapplications will makelife more convenient.

    Meta-Applicationscreate new structuresthat dramatically improvehow cities function.

    Connected organizationswill create new channelsand efficiencies.

    Description

    UserBenefits

    OrganizationBenefits

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    8 Copyright 1999. Andersen Consulting. All Rights Reserved.

    At the most basic level are freestanding

    applications that create or extend serv-

    ice capabilities of a single organization.

    Sometimes, these applications are man-

    aged by one organization, but use data

    or information from other sources, such

    as government agencies or the resident

    population. Their operation and direc-

    tion however are controlled by the core

    organization.

    Every city will have hundreds or thou-

    sands of initiatives in this category, and

    they are the first step in getting local

    organizations prepared to participate in

    more complex initiatives in the future.

    Common characteristics of Standalone

    Applications include:

    - Primarily freestanding with a high

    level of independence from other

    organizations

    - When successful, they focus on a

    well defined user population

    - Use existing data from government

    agencies, community organizations

    or users

    Benefits

    The benefits of initiatives in this area

    are many.

    User benefits

    - Added convenience for users. By

    providing essential services in new

    ways or adding value to common

    interactions, these initiatives add a

    new level of convenience to routine

    activities.

    Organizational Benefits

    - Easy to implement. Because these

    initiatives are the product of a single

    organization, they tend to be easy to

    implement. Often, they can be go

    from concept to operation relatively

    quickly and with low cost.

    - Quick wins.While many of the ben-

    efits of computing and communica-

    tions technologies are focused on

    long-term gains spread over a large

    audience, initiatives in this area

    present a panacea of quick wins that

    can begin to capture benefits in the

    short-term and grow over time into

    larger, more ambitious initiatives.

    Standalone Applications

    Standalone Applications are the first step in getting local

    organizations prepared to participate in more complex initiativesin the future.

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 9

    - Build on existing services. Rather

    than require an entirely new infra-

    structure or organizational frame-

    work, these initiatives build on and

    extend existing product and service

    offerings. This has the benefit of

    capitalizing on existing investments.

    - Increased exposure. By leveraging

    the ubiquity of electronic networks,

    organizations can tap into a larger

    audience for their services.

    - Lower transaction costs. By leverag-

    ing the capabilities of computing

    and communications technologies,

    many organizations, businesses and

    city governments can dramatically

    lower their transaction costs by

    launching initiatives in this area.

    Many eGovernment initiatives focus

    on cost reduction.

    InfopimeBy aggregating publicly available data-bases from several government agencies,Infopime provides small businesses within

    Barcelona with a valuable marketing andresearch tool that helps them plan andbuild their business. In addition to statis-tical data, which can be viewed for all ofBarcelona or just a single neighborhood,Infopime provides a business directory ofall 170,000 business in Barcelona, discus-sion forums, import and export opportu-nities, monographs by industry specialistson current business issues, and more.Although much of this data is availablefrom different government agencies, mostsmall businesses and entrepreneurs lackthe resources and technical ability tointegrate the different databases anddevelop the sophisticated data miningtools that Infopime has. By providing thisvalue added service, small businesses havea unique and powerful tool that helpsthem more intelligently plan and launchnew ventures.

    Helsinki Arena 2000A consortium partnership betweenHelsinki Telephone Company (HPY) andthe City of Helsinki, Helsinki Arena 2000is an endeavor to build a three-dimen-sional VRML model of the entire city.When completed, this virtual city willbecome a city portal through which resi-dents and visitors will be able to accessevery cultural, commercial and publicservice offered in Helsinki. One of themost successful components of the proj-ect is a 3D interactive model of theLasipalatsi, a cultural arts center in theheart of Helsinki.

    Blacksburg Electronic VillageThe oldest Internet-based communitynetwork in the United States, Blacksburg

    Electronic Village's (BEV) goal is build avirtual complement to the physical com-munity, investigate the factors that com-prise a successful community networkand create a model that can help othertowns and communities to build elec-tronic community networks. To date, BEVhas provided residents with an electronictown square where local organizationscan post information, establish electronicmailing lists and advertise their services.With 85% of its 36,000 residents usingthe Internet daily, local organizationssuch as churches and volunteer groupsare fundamentally changing the ways inwhich they interact with residents.

    New York City AccessCity Access is an ambitious project inNew York City that is giving residentsaccess to essential city services throughkiosks located throughout the city.Services offered at kiosks include: job andhousing assistance and opportunities;food and public assistance programs;adult and child services; parking rulesand regulations; and senior citizen bene-fits and entitlements. The kiosks alsoallow residents to find out about andcheck the status of parking summonses,real estate taxes and building violations.Parking tickets and real estate taxes canalso be paid at kiosks using a credit cardor debit card.

    Case Studies:Standalone Applications

    In Helsinki, a sophisticated 3D modelof the city has been developed tofunction as the primary means of

    accessing geographically basedservices throughout the city.

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    10 Copyright 1999. Andersen Consulting. All Rights Reserved.

    The next level of initiatives involves the

    development and creation of Integrated

    Applications. These applications are the

    result of a combination of compatible

    capabilities from multiple organizations

    that have a shared vision or common

    interest in a given market or domain.

    By their very nature, Integrated

    Applications often require participating

    organizations to alter their internal

    processes and systems. Successful initia-

    tives overcome tensions caused by

    inter-organizational efforts through

    trust-building and structured collabora-

    tive processes, which are discussed later

    in this report.

    Common characteristics of these initia-

    tives include:

    - Formal data sharing agreements

    with other organizations

    - A strong dependence on and inte-

    gration of other organizations into

    products or services

    - Products or services are based on

    mutually exclusive organizational

    capabilities

    Examples of initiatives in this area are

    presented below. These initiatives rep-

    resent some of the types of efforts that

    focus on developing Integrated

    Applications that connect multiple

    organizations.

    Benefits

    Benefits in this area build on and

    extend those that are generated for

    Standalone Applications.

    User Benefits

    - Integration of products and services

    from multiple organizations. Overall

    quality of services is increased due

    to organizations combining comple-

    mentary expertise to offer richer

    service offerings.

    Organizational Benefits

    - Efficiencies of scale. Organizations

    participating in shared services such

    as procurement reap benefits

    through efficiencies of scale that

    reduce costs for al partners. A sec-

    ondary benefit is spreading the over-

    all risk associated with an applica-

    tion through the sharing of

    resources and access to greater user

    pull.

    - New data manipulation through

    aggregation. Businesses will have

    access to customer data previously

    unavailable. When data is combined

    from multiple sources, it becomes

    more valuable due to new abilities

    to compare data, cover a larger area,

    or coordinate organizational activi-

    ties.

    Integrated Applications

    Integrated applications can leverage scale and broader expertise

    to deliver greater benefit for their locations than possibleby any one organization.

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 11

    BarcelonaNetActivaBuilding off of resources and knowledgegained from BarcelonaActiva, a tradition-al business incubator that provides space,

    expertise, and consulting to start-upbusinesses, BarcelonaNetActiva is the firstvirtual business incubator in Europe.BarcelonaNetActiva provides start-upbusinesses many of the essential servicesonline that they would get traditionally.And their approach goes a step towardsseamless integration of information frommultiple service providers. This enablesBarcelonaActiva to serve many more busi-nesses than its physical infrastructuresupports. Services offered include: newsand statistics; access to online industryexperts and consultants; a virtual"Business School" that used CBT to teachbest practices, technology fundamentalsand management skills; as well as severalonline business forums, idea exchangesand billboards for posting ads.

    Health Forum/AikenThe Outcomes Tool Kit, developed byHealth Forum, provides community healthorganizations a systemic way to plan,

    organize, coordinate, and measure thedelivery of health related services withina community. The Tool Kit functions as anInternet-based, shared database thatdocuments the areas of involvement andactivities of all community health organi-zations. By incorporating benchmarkingand key quality of life indicators, commu-nities can measure the progress of eachorganization and assess how well organi-zations are working to solve a givenproblem. The Tool Kit also enables theorganizations to collaborate with eachother and share data with their peers,resulting in even better delivery ofhealth-related services.

    Toronto/NetvilleNetville is a pseudonym for a wired resi-dential development of about 100 homeslocated in suburban Toronto. The initia-

    tive was sponsored by a consortium ofcompanies that were brought together toprovide complementary technology andcontent expertise. The consortium had avision of a world where of variety ofadvanced high-bandwidth services couldbe delivered to consumers in wired com-munities. The housing developmentserved as an experimental prototype of afuturistic community hosting advancedservices such as fast Internet connectivity,online educational CD-ROMs, a music-on-demand jukebox, point-to-point videowithin the neighborhood (really a form ofvideo conferencing) and a communityhealthcare application. The consortiumhad an interest in understanding theimpact of new broadband online serviceson community residents, with an eyetowards identifying lucrative markets forthe future.

    Case Studies:Integrated Applications

    Barcelona has launched a series of smallbusiness development initiatives thataggregate information from manysources into vital resources that individ-ual small businesses couldnt afford ontheir own.

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    12 Copyright 1999. Andersen Consulting. All Rights Reserved.

    Meta-Applications are the most complex

    and ambitious initiatives organizations

    and cities can launch. These initiatives

    seek to dramatically restructure the

    ways in which an entire industry, sector,

    or city functions. As such, Meta-

    Applications require the involvement of

    many businesses and organizations

    throughout the city. The end result of

    these initiatives has a profound impact

    on the way in which processes take

    place, products and services get deliv-

    ered and organizations interact with one

    another.

    Common characteristics of Meta-

    Applications include:

    - Involvement by an entire industry or

    business sector

    - High levels of integration between

    participating organizations

    - Defined standards and processes that

    govern organization behavior

    Benefits

    As with the Integrated Applications,

    Meta-Applications incorporate all the

    benefits of the other initiatives as well

    as add several unique benefits. These

    benefits are as follows.

    User Benefits

    - Products and services are organizedaround user needs and intentions.

    Services are organized around entire

    lifestyle activity sets, so that users

    are aware of available services as

    they require them without having to

    independently identify appropriate

    resources.

    - Comprehensive access to multiple

    services at one time. By aggregating

    several related services, it is possibleto create a valuable bundle of offer-

    ings. Often, the applications being

    combined will come from different

    organizations, but it will appear as

    one single application. This intelli-

    gent bundling of products and serv-

    ices only gives the user the informa-

    tion and services they need from

    each organization in the services

    offering.

    - Streamlines interaction.As organi-

    zations coordinate how they handle

    data and user information, residents

    will be able to use the system as if it

    Meta-Applications

    Meta-Applications dramatically restructure how an entireindustry or service sector within a city functions.

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 13

    were operated by a single organiza-

    tion. This simplifies the manner in

    which users acquire services from

    organizations.

    Organizational Benefits

    - Streamlines business-to-business

    interactions. By providing stan-

    dards, architectures and defined

    processes for interactions, these ini-

    tiatives enable businesses and

    organizations to streamline interac-

    tions the have with one another.

    This results in greater speed, lower

    costs and more integrated products

    and services.

    - Enables organizations to focus on

    their core competencies. Having

    numerous organizations address the

    needs of a user segment allows

    organizations to focus on the areas

    in which they excel.

    - Creates competitive advantages for

    an entire industry, sector or city.

    Systemic inefficiencies, particularly

    that are imposed by government

    agencies with broad exposure, create

    a drag on all organizations that

    interact with them. Re-engineered

    processes allow all organizations to

    operate more efficiently, so that they

    can improve service levels and

    reduce costs.

    Smart Valley Smart PermitsSmart Permits, a new way to deliver con-struction permits and manage construc-tion projects, is the result of a four-year

    collaboration among public and privatepartners in Silicon Valley. The Smart Valleycoalition enlisted the involvement of allof the organizations that could potential-ly have been affected by changes in thepermitting process. There were represen-tatives from architecture, government,engineering and construction, as well asthe delivery of public services. Eventually,the group committed to the developmentof a custom software package that wouldallow the management of permits acrossthe various parties involved in the con-struction industry. The result is a processthat changes the way the entire industrydoes business. Early results from the ini-tial test cities (Los Gatos and Sunnyvale,California) have shown significant eco-nomic benefit from the application. Thetime required to issue constructionlicensing has been cut in half, from 10 to5 days in Los Gatos. Meanwhile, 95% ofpermits now get processed in one day inSunnyvale. Businesses benefit becausetheir work process is simpler and morestreamlined, saving time and money.Residents and businesses benefit becausetheir houses and facilities will be com-pleted faster.

    Next Generation CitiesNext Generation Cities is a San Francisco-based public-private partnership seekingto develop an Internet-based infrastruc-

    ture for enabling community-based elec-tronic networks to function. The goal ofthe initiative is the creation of a DigitalCommunity Network, which consists of aseries of electronic services that include aTrusted Public Databank, IntelligentBusiness Registries and privacy filters forconsumers. Together, these services func-tion as a Municipal Operating Systemthat both streamlines and stimulatesinteraction between governmental agen-cies, businesses and citizens. If it is suc-cessful, this initiative will create a set ofdata protocols, standards and processesfor combining currently incompatibleinformation. Initial applications areplanned for the commercial real estateindustry as well as services for small busi-ness in the South of Market area of SanFrancisco.

    Case Studies:Meta-Applications

    The san Francisco Bay Area has beenat the forefront of rethinking how

    electronic networks can be usedto restructure the ways in which

    government, businesses and individualsinteract with one another.

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    Initiatives with thetalent, resources

    and determinationto succeed often faildue to inattentionto a key issue.

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 15

    Creating a successful initiative is very

    difficult. It requires not only the talent,

    resources and determination to make it

    succeed, but also an awareness of and

    the ability to overcome issues that can

    have a detrimental effect on the out-

    come of the initiative. And depending

    on the level of sophistication of the ini-

    tiative, these issues, or key areas for

    concern, will vary.

    For example, in relatively simple initia-

    tives like electronic bulletin boards or

    many eCommerce applications, issues

    like how well the application fits intothe user's existing activities or whether

    or not training is provided will have a

    big influence on the application's suc-

    cess.

    As an initiative's application becomes

    more complex, perhaps involving the

    participation of other organizations, new

    areas of concern arise. In such a case,

    achieving and maintaining buy-in or

    ensuring that other organizations stay

    on board will be important to consider.

    At yet a higher level of complexity,

    where initiatives seek to address city-

    wide audiences, new areas of concern

    arise. These will have to do with under-

    standing the systemic relationships that

    exist between hundreds of organizations

    and being able to co-develop visionswith them that empower them and direct

    their efforts in productive ways.

    At the same time, all initiatives should

    also be aware of overarching areas of

    concern, or influencing factors, such as

    technological change and differences in

    personality and culture among users.

    These underlying forces can undermine

    even the most promising initiatives

    unless leaders plan accordingly.

    In this section, these key areas for con-

    cern are addressed. Recommendations

    for dealing with and overcoming these

    areas for concern are also presented.

    Key areas for concern

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    16 Copyright 1999. Andersen Consulting. All Rights Reserved.

    Standalone Applications

    FitCurrent thinking: Access to technology isthe biggest barrier to technology adop-tion. If you give people access to equip-ment, train them and provide them withapplications, they will use them. Finding:Access to technology does not make

    people want to do things that they werenot interested in before.Recommendation: Augmenting andextending existing activities provides aneasy entry point for bringing in newusers.

    Comprehensive ApproachesCurrent thinking: Getting an applicationup and running is the biggest task ini-tiatives face. Finding: Getting an applica-tion up and running is only half the bat-tle. Recommendation: Add in to applica-tion plan: training, best practices, tie-into other organizations, packaged solu-tions, ongoing support, etc.

    Key Areasfor Concern

    The Initiative Classification Framework:

    Key Areas for Concern

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 17

    Integrated Applications

    Buy-in & CommitmentCurrent thinking: People think thatcentralized control is the best way tomanage projects that involve the par-ticipation of many organizations.Finding: Many participating organiza-tions drop out of initiatives when they

    are required to commit their resourcesbecause they have not fully boughtinto the initiative's vision.Recommendation: Use leadership toguide, take the time up front to involvekey organizations in decision makingand use coalitions and neutral thirdparties to build trust.

    Maintaining Cross-organizationalApplicationsCurrent thinking: When aggregatingcontent from multiple organizations,guidelines and protocols need to beestablished to ensure the desired levelof quality and consistency. Finding: Theresults of many cross-organizationalinitiatives are diminished by lack of fol-low through by individual organiza-tions. Recommendation: Establishmechanisms to ensure accountabilityby participating organizations.

    Meta-Applications

    Actionable VisionsCurrent thinking: Organizations havegood intentions and given the properfunding they will do things that benefitthe city. This is especially so when itcomes to current efforts to promotetechnology use in cities. Finding:

    Without guidance or direction, theseorganizations will have limited impact onthe city. Recommendation: In order toachieve the desired impact, cities need toco-develop a tailored, actionable visionfor how technology can improve theircity with the participation of the organi-zations and people that will be responsi-ble for implementing it.

    Systemic RelationshipsCurrent thinking: People look at lots ofactivity as evidence of progress. Finding:People don't realize that if they appliedthe same money and people differently,they would achieve even greaterprogress. Recommendation: Conduct asystemic analysis of your city to identifysystemic relationships that can be takenadvantage of when planning, developingand running initiatives.

    Influencing Factors

    Technological ChangeCurrent thinking: Using cutting-edgetechnology in applications is the bestway to ensure that they will be useful forthe long term. Finding: Technology willcontinually change. Recommendation:Plan for change, go for quick wins and

    don't get tied to one technology.

    Personality & CultureCurrent thinking: All we need to do iswait for society to catch up with tech-nology in order to create mass applica-tions; it's only a matter of time. Finding:Cultural and personal attitudes runextremely deep, and late adopters areunlikely to ever turn into technologyenthusiasts. Recommendation: Assumethat late adopters will remain skepticalof technology, and employ communica-tion and training strategies to compen-sate for engrained attitudes.

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    18 Copyright 1999. Andersen Consulting. All Rights Reserved.

    Summary

    Current thinking:Access to technology is the biggest barrier to

    technology adoption. If you give people access to equipment,

    train them and provide them with applications, they will use

    them. Finding:Access to technology does not make people

    want to do things that they were not interested in before the

    introduction of technology. Recommendation:Augmenting and

    extending existing activities provides an easy entry point for

    bringing in new users.

    Findings

    Access to technology does not make people want to do things

    that they were not interested in before.

    1. Involvement is not an access issue.A three year pilot in

    Montgomery County, Virginia, equipped the families of

    every child in a fifth grade class with a computer, Internet

    connectivity and training to use computers as well as

    online educational content. One goal was to make it easier

    for parents to be involved with their children's education,

    and to communicate more often with teachers. Results to

    date indicate that parents who were already involved with

    their children's education used the technology, while the

    technology did not make the other parents participate

    more actively.

    2. Free access doesnt benefit non-users. Blacksburg, Virginia

    also placed public access computers in the local library,

    hoping to target people who didnt own computers.

    Surveys of people using the computers indicated that the

    vast majority of people using the library computers already

    had a computer at home and were using the computers as

    a supplement when they went to the library. It turned out

    that the target audience, people without computers at

    home, were not regular library users and were not going to

    start going to the library now that they provided computer

    access. A similar initiative in Aiken, South Carolina tried

    to place computers in a laundry center, figuring that the

    under-served already go there, but residents did not seem

    interested in learning about computers while they did

    laundry.

    3. Developers treat the population as homogeneous. This is

    due to two reasons: First, many developers are rightly con-

    cerned about equal access to technology. Secondly, appli-

    cations are often driven by available content, not by what

    individual users may want or need. In Sweden, visions of

    the Information Society reinforce the notion that everyone

    will be equal participants in an information rich age. In a

    section of Stockholm, one initiative offered applications

    for the community with a diverse set of content drawn

    from local sources, none of which would appeal to very

    many people. After a spike of initial interest based on

    curiosity, usage dropped off to almost nothing.

    Recommendations

    Often new technology succeeds because it meshes closely with

    activities that people already care about or must do.

    - Ground applications in the existing use context. Rather

    than propose entirely new ways of working, successful

    applications often enhance established processes and activ-

    ities by making them function more efficiently or effec-

    tively. In Manchester, England a technology training and

    enablement organization found it difficult to communicate

    the benefits of computerization to many small businesses

    involved in light manufacturing. It was not until they

    showed the small businesses a sales catalog and order

    entry application that they got interested. Seeing the tech-nology used in a way that helped them augment an activi-

    ty they cared about made the value apparent.

    This success extends to many applications. By grounding

    applications in the existing use context, successful applica-

    tions become tightly integrated into the services and activ-

    ities that are commonly accessed by users. This enables

    applications to be easily integrated into a user's lifestyle,

    Fit

    Without compelling applications that fit with users lifestyles

    and existing activities, users will not adopt technology.

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    activities or processes with minimal cost and effort. It also

    ensures that applications are developed in such a way that

    they are adding value to user activities.

    - Streamline existing processes and activities. This provides

    an entry point for adoption. Online banking has succeeded

    because it streamlines a process that people already do. In

    Sweden, over 35% of Internet users bank online. And

    many successful online applications make existing tasks

    more efficient or pleasant. In The Hague, over 50,000 peo-

    ple used an online apartment registration service because it

    saved them significant time going to government offices.

    Since most users are not technologically driven, they usu-

    ally find it unacceptable to change their processes or activ-

    ities to conform to a new technology. They expect technol-

    ogy to support their activity rather than direct it.

    - Target applications narrowly.When developers target nar-

    rower user population segments, it becomes easier to cus-

    tomize content that closely matches users needs, which in

    turn leads to more use. In Blacksburg, Virginia, a discus-

    sion group about education was unsuccessful. The topic

    was vague, and people did not know how to focus the dis-

    cussion. But in the same location, a discussion group

    among social science teachers in the region was very suc-

    cessful, since these people had a clearly identifiable focus,

    issues that needed to be discussed and a shared context for

    setting the discussion.

    The social-science listserv succeeds because it is targeted at

    a specific audience, and based on the right level of popula-

    tion granularity. An analysis of most user segments usual-

    ly shows that they are actually composed of several specif-

    ic user segments, with each having its own set of charac-

    teristics that can be supported better by tailored efforts.

    - Establish feedback loops. Feedback loops should be estab-

    lished to gain the desired level of input from developers

    and users throughout the development process. This

    ensures that the applications developed are relevant to user

    needs. Feedback needs to vary during different phases of

    the development process: it should be extensive during

    conceptualization (want as many ideas as possible); limited

    during implementation (don't want too many chefs); and

    increased somewhat during operations (to find errors, bugs,

    usability problems).

    The Hague, Netherlands, has leveragednearly universal access to teletext tooffer popular services such as electronicregistration and tracking of applicationsfor public apartments.

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    Summary

    Current thinking: Getting an application up and running is the

    biggest task initiatives face. Finding: Getting an application up

    and running is only half the battle. Recommendation:Add in to

    application plan: training, best practices, tie-into other organ-

    izations, packaged solutions, ongoing support, etc.

    Findings

    Getting an application up and running is often only the

    beginning of efforts. Application developers are often caught

    by surprise when they place an application out for public use.

    While application developers are reticent to take responsibility

    for things outside the scope of the application, in reality, suc-

    cess may depend upon it.

    1. Users need education to understand what the application

    can do for them. Even the best conceived applications

    need additional support to make then fly. Barcelona's

    Infopime is a potentially valuable application for small

    businesses. However, when the developers held promotion-

    al sessions throughout the city to explain the application,

    they encountered a user population that was mostly uned-

    ucated about the Internet and online applications. They

    found that their target audience needed a basic computer

    and Internet education before they could understand the

    value of Infopime.

    2. Training needs are often greater than developers expect.

    The Health Forum Outcomes Toolkit is an application for

    health agencies to jointly create community health goals

    and establish common reporting metrics. The developers

    planned for and held training sessions for all users, but

    were surprised to find that many users were new to com-

    puters. They found it difficult to complete effective train-

    ing in the allotted time and budget.

    3. Ongoing support is key for novice users. Many of the resi-

    dents of a wired residential community near Toronto were

    novice computer users when they moved onto the experi-

    mental neighborhood. The project coordinators were pre-

    pared to assist new users purchase a computer, set up their

    equipment and provide several training sessions on com-

    puter basics and how to use the pilot applications. But the

    team was unprepared for the high levels of ongoing tech-

    nical support that the residents required to keep their

    equipment running properly. And as residents began to use

    more applications, they continually encountered new prob-

    lems. The team had to set up a full-time help desk on the

    fly and was continually burdened by unexpected support

    costs.

    Recommendations

    Incorporate marketing, training and support into initial project

    budgets and plans. Because the majority of users are not

    innate believers in technology, developers need to help them

    understand how applications relate to and improve their daily

    activities. By focusing on providing applications, infrastruc-

    ture and training in a single area at one time, many of the

    barriers to success, such as the lack of support, can be elimi-

    nated. Taking a comprehensive approach enables leaders and

    developers to pull in a critical mass of organizations and resi-

    dents needed for most applications to succeed.

    Marketing

    - Document and promote best practices. Best practices help

    users see how others are using technology and how it is

    adding value. It gives them something concrete that they

    can relate to their situation. In addition, with references of

    others who have had success with an application, later

    adopters gain the necessary confidence they need to startusing the technology.

    - Promote a few select features. Rather than promote all of

    an application's features, choose a select few that apply

    most directly to the users being targeted. This enables

    them to discern what real benefit is coming from the

    application. Senior citizens, for example, react favorably

    to being trained explicitly to send and receive email, rather

    Comprehensive Approaches

    Deciding whether or not to use an application is based on morethan the virtues of the application alone; users also considerthe availability of training and support, they need to understandhow it fits into their existing activities and how well it integrates

    with their existing applications.

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    Summary

    Current thinking: People think that centralized control is the

    best way to manage projects that involve the participation of

    many organizations. Finding: Many participating organizations

    drop out of initiatives when they are required to commit their

    resources because they have not fully bought into the initia-

    tive's vision. Recommendation: Use leadership to guide, take the

    time up front to involve key organizations in decision making

    and use coalitions and neutral third parties to build trust.

    Findings

    Bringing together multiple organizations to develop common

    solutions is not easy. This process tends to bring out latent

    mistrust and tension between organizations that is often not

    apparent at first.

    1. Collaboration raises issues. The collaboration required to

    implement visions often raises issues of trust, turf, control

    and overlapping boundaries. Shared applications and

    processes may require organizations to change their inter-nal operations to accommodate new structures. Sometimes

    the very process of negotiating a new service structure will

    lead organizations that did not view each other as com-

    petitors to begin doing so. Complex healthcare coalitions

    routinely encounter this problem. And the difficulties don't

    stop once a project has been set up; many applications

    require that ongoing data management and ownership be

    distributed across several organizations.

    2. Existing circumstances can make things even harder. Long

    histories of mistrust or bad feelings exist in many loca-tions, especially between organizations that have overlap-

    ping service areas. Many localities have a few power play-

    ers that do not want to work with each other, or believe

    that they do not need to work with other organizations to

    succeed. In one location, the cable franchise felt that they

    had an edge over the telephone company in delivering

    advanced access services, and would not discuss any form

    of cooperative agreement for area-wide coverage. Such

    people and organizations have their own agendas and do

    not want to commit to a process that may reduce their

    powerful position, even when collaboration will benefit

    them in the long run.

    3. People fear committing to a process they don't under-

    stand. This is particularly true when unfamiliar technolo-

    gies are involved or when data is being entered into a

    "black box." Healthcare applications have been particularly

    difficult to get off the ground because of client concerns

    over privacy and security. Organizations are understand-

    ably afraid to release patient data out into the world. To

    compensate, cities like Vienna that have created a closed

    system with a limited number of partners have gained par-

    ticipation. When all of the organizations and people hav-

    ing access to the data, and reasons and methods of control

    are clearly defined, organizations are more willing to par-

    ticipate. On the other hand, open systems are very hard to

    pull off.

    4. Organizations lose enthusiasm for a project without a

    clear value proposition.A consortium in Toronto with

    dozens of members slowly fell apart over time as more and

    more members realized that the project would not reap

    them the benefits they had hoped for. Early participation

    in an initiative does not equal commitment. Often an

    organization will appear to be agreeing to the progress of

    an initiative, waiting to see if things develop in desirable

    ways. At some point they determine that there is not

    enough value in the initiative to warrant the commitment

    of resources to continue participation, and they drop out.

    5. Organizations are unwilling to buy-in to a process oragreement that they were not a part of during its cre-

    ation. The leaders of the wired community project near

    Toronto wanted to get the local government and business-

    es interested in developing content for the new communi-

    ty. But they waited until the project was nearly up and

    running before they enlisted their participation. By that

    Buy-in & Commitment

    Maintaining buy-in and commitment from many organizationsis best addressed by involving the organizations at every stage

    of the planning and development process.

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    time there was little time and the local leaders felt that the

    scale of the project was too small for them to participate.

    Earlier contact would have given the local leaders a chance

    to provide input that could have made made a better fit

    possible.

    Recommendations

    To ensure that organizations remain committed to initiatives,

    leaders need to establish processes and entities that are inclu-

    sive of organizations throughout the planning and develop-

    ment stages. Further, it requires leadership to play a facilita-

    tive role rather than a driving role.

    - Establish neutral third parties or form coalitions to bringorganizations together and achieve compromise solutions

    that all organizations can accept. Initiatives do not imple-

    ment themselves; they are put in place by people and

    organizations. Getting buy-in is fundamentally a bottom-

    up process that requires the active participation of all

    organizations, and coalitions can give structure to thatprocess. Coalitions can provide a neutral forum that helps

    overcome turf and boundary issues, enable shared owner-

    ship, establish a common ground for making decisions and

    define roles and structures to manage projects without

    control and power issues. The Smart Valley initiative in

    California received input from over 1000 people by using a

    coalition. Every city can have many coalitions, each

    focused on improving services for a particular user seg-

    ment or rethinking business-to-business workflows.

    Smart cities will use coalitions at each stage of the devel-opment process: creating visions, planning, building new

    structures and managing projects. Accordingly, the compo-

    sition of coalitions should change over time depending on

    the projects stage. A coalition might be quite large during

    the initial visioning stage, and then contract to the core

    leaders during an operational phase.

    - Use leadership to guide, not dictate. Leadership is clearly

    critical to the success of cross-organizational initiatives.

    Strong leadership does make a difference. The successful

    health coalition in Aiken, South Carolina is due in part to

    the thoughtful leadership by a small, but forward-thinking,

    non-profit organization that helped others understand the

    advantages of systems thinking. Leaders serve as champi-

    ons to help get other people enthused, and their power can

    help drive initiatives to completion or overcome obstacles.

    But leaders cannot and shouldnt try to control how an

    initiative develops. They should simply help direct its

    course and keep the right people engaged.

    Leaders that take on this role of being a facilitator of

    change need be especially sensitive to people issues.

    Leaders can be a critical part of the trust-building process

    and should employ a wide variety of techniques to keep

    developers and users at the table. They can use incentives

    to get people involved, bring in or create a neutral third

    party as needed, use tools that get diverse people working

    together around common interests, and allow others to

    take ownership, among other things.

    Stockholm has developed one of themost comprehensive fiber optic networks

    in the world, and competition amongInternet providers has kept access costs

    among the lowest in Europe.

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    Summary

    Current thinking:When aggregating content from multiple

    organizations, getting organizations to contribute data and

    setting up a database are the most critical tasks. Finding: The

    results of many cross-organizational initiatives are diminished

    by lack of follow through by individual organizations.

    Recommendation: Establish mechanisms to ensure accountabili-

    ty and consistency by participating organizations.

    Findings

    Despite the many benefits of aggregating and sharing data

    across multiple organizations, many organizations are not

    willing to commit the resources and make the changes

    required for the initiative to fulfill expectations.

    1. Initiatives require sustained, long-term commitments from

    participants. In Singapore, the National Computer Board

    established the Singapore ONE web site as part of its

    IT2000 Master Plan. With the goal of transforming

    Singapore into an information island, the NationalComputer Board enlisted the help of many organizations to

    provide content and services. To help maintain cohesion

    between these various services, common graphic standards

    were provided to these organizations. Over time, however,

    these organizations drifted away from the common look-

    and-feel and began to submit content based on individual

    preferences. For the organizations involved, the standards

    did not provide them with a long-term solution that they

    could live with.

    2. Initiatives affect the internal operations of participants. InAiken, South Carolina, an informal group was formed by

    local health organizations to address the issue of teen

    pregnancy. Realizing that they were all involved in one

    way or another with the issue, the organizations agreed

    that sharing data would be a good first step. But the met-

    rics they used to collect their data were incompatible with

    one another. In order to get the organizations to collect a

    compatible set of metrics, several organizations needed to

    alter how they tracked progress.

    3. Protocols for maintaining and managing the data are

    unclear or ad hoc. Most community web sites set up a

    database but do not account for how the data will be

    updated. Participating organizations often update their

    content irregularly, if at all. Unfortunately, a little poor

    content brings down the overall impression of the site, and

    end users often have little tolerance for poor quality.

    Recommendations

    Many of the problems of initiatives that aggregate or share

    data across many organizations is the informal approach they

    take with participating organizations. Initiatives and organiza-

    tions need to approach these situations with the same vigor

    and thoroughness that they give business-to-business relation-

    ships.

    - Clarify the value proposition for all members. When it

    comes to the final analysis, sometimes a potential partner

    may not have enough of a reason to participate in a sys-

    tem that requires ongoing maintenance and attention. But

    if there is real value for all partners, then they will commit

    resources. An emergency response system in Winston

    Salem, North Carolina gained support from all emergency

    service providers in the region because centralizing data

    allowed everyone to deliver superior, faster services.

    - Identify the impact on participating organizations.Organizations that are not prepared for participation in a

    shared data environment will often fall short in execution.

    One community web site in Chicago found that clearly

    outlining organizational responsibilities made things easier.

    All participating organizations were required to attend

    training, assign a specific person responsibility for submis-

    Maintaining Cross-organizational Applications

    Initiatives that involve the participation of many organizationscan generate great benefits, but organizations often do not com-

    mit the resources needed to support the process.

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    sion and updates, and agree to a schedule of updates. This

    helped alert the organizations to their expected commit-

    ment up front, minimizing the fallout later on.

    - Get resource commitments early in the process.

    Consistent progress is more likely when particular individ-

    uals, rather than organizations as a whole, are responsible

    for following through with a commitment. People will not

    make time for tasks unless they have final responsibility.

    - Plan ahead. Give organizations enough time to ensure that

    participating organizations are prepared to deliver quality

    content. One city government knew that that all of its city

    agencies would in the near future need to contribute data

    to a regional Geographic Information System. They also

    knew that this would entail process changes in most agen-

    cies to comply with new standards. To prepare, all agencies

    were asked to begin updating their processes to comply

    with future standards two years before any technological

    system was in place. This enabled them to make a smooth

    transition to the new system when it came online.

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    Summary

    Current thinking: Organizations have good intentions and given

    the proper funding they will do things that benefit the city.

    This is especially so when it comes to current efforts to pro-

    mote technology use in cities. Finding:Without guidance or

    direction, these organizations will have limited impact on the

    city. Recommendation: In order to achieve the desired impact,

    cities need to co-develop a tailored, actionable vision for how

    technology can improve their city with the participation of the

    organizations and people that will be responsible for imple-

    menting it.

    Details

    City leaders fundamentally believe that local organizations

    have good intentions and given the proper funding they will

    do things that benefit the city. This is especially so when it

    comes to current movements towards technology adoption in

    cities.

    In Europe, Asia and the Americas, governments at all levels

    are active in advocating and funding initiatives focused on

    introducing computing and communications technology into

    all aspects of society. These projects have ranged from wiring

    schools in the United States to installing extensive high-band-

    width networks in Singapore to launching dozens of smaller

    initiatives focusing on culture, small business and government

    throughout Europe. Unfortunately, most of these projects have

    met with mixed success. This is primarily due to three reasons:

    1. Initiatives use funding to support work they are already

    doing.At one small business assistance initiative that is

    entirely dependent on local government funding, the ini-

    tiative leader indicated that if a new political party were to

    be elected in the upcoming election, they would only re-

    message their project's activities to fit the agenda of the

    new party. Despite the change in agenda, the initiative

    would make few, if any, substantive changes to tie into the

    new local agenda.

    2. Initiatives are opportunistic.At a United Kingdom location,

    a non-profit organization partnered with a university to

    apply for a several million-dollar grant. Two years after

    receiving the grant, little benefit had been realized from

    the partnership. As it turned out, the partnership was

    formed solely for the purposes of securing the grant (part-

    nering was a requirement) and the services offered by the

    non-profit went largely unused by organizations.

    3. Initiative visions are unactionable.A multi-million dollar

    trial that wired an entire residential community of one

    hundred homes near Toronto established a grand vision for

    on-demand services and high-speed links to healthcare and

    educational resources. This vision was created by a core

    group of initiative leaders, and it garnered great excitement

    by residents and potential partners who were needed to

    implement the vision. When it came time for these partners

    to do actual development work, they dropped out of the

    consortium. As it turned out, most partners, as well as

    local educational and healthcare organizations, were

    unwilling to dedicate their limited resources to a risky ini-

    tiative that they had little input in shaping and were not

    fully committed to.

    Recommendations

    Without guidance or direction at the local level, organizations

    and initiatives are having limited impact on their city. In order

    to achieve the expected level of impact, cities need to co-

    develop clear and actionable visions that direct the efforts of

    people, organizations and initiatives towards activities that are

    aligned with local interests. This is best done through inclusiveprocesses that elicit the input and participation of all the

    essential people and organizations involved in carrying out the

    vision.

    - Create compelling, actionable visions for the city.A com-

    pelling vision of how technology can be used in your city

    has the power to generate excitement and galvanize gov-

    ernment, businesses, organizations and residents. People

    Actionable Visions

    Cities that develop local visions that are embracedand championed by local organizations will be able

    to direct organizational effort in more effective ways.

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    want to be a part of a compelling future, and a vision that

    specifically addresses how technology will benefit your

    city provides the focus and direction to make that future a

    reality.

    These visions however also need to be actionable. It is not

    enough to say that you are going to transform secondary

    education with computers and Internet connectivity.

    Visions need to go further, identifying tangible initiatives

    such as creating an educational resource network that

    allows secondary education to access underused University

    science equipment or creating an online education pro-

    gram with content from museums, zoos and cultural insti-

    tutions. Moreover, don't assume that there is only one

    monolithic vision for your city. Cities can and should have

    many complimentary visions that address every aspect of

    daily life.

    - Reach broadly to develop visions and implement initia-

    tives. Creating a citywide vision is fundamentally a bot-

    tom-up process that requires the participation of govern-

    ment, businesses, organizations and residents and the for-

    mation of coalitions to structure to the process. Coalitions

    of this type have been successfully used in locations such

    as Aiken, South Carolina and at the Next Generation Cities

    initiative. Smart cities will use these inclusive coalitions at

    every stage of the visioning process from developing the

    vision to the launching individual initiatives, changing the

    composition of the coalition depending on the stage. A

    coalition might be very large during the initial visioning

    stage, including input from hundreds of people, and then

    sub-divide into several smaller coalitions to tackle finer-

    grained issues within a specific service sector.

    - Modify visions over time so they adapt and respond to

    change. In order for visions to retain their relevance and

    applicability to your city, they need to be continually

    revised to reflect changes that are taking place. Visions

    that don't change over time run the risk of becoming irrel-

    evant to organizations. This will erode support for the

    vision and cause organizations to direct their efforts else-

    where.

    Antwerps Telepolis, a public/private part-nership corporation, developed a high-speed network throughout the region thatis helping to foster new business growth aswell as provide residents better access togovernment services and free email.

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    Summary

    Current thinking: People look at lots of activity as evidence of

    progress. Finding: People don't realize that if they applied the

    same money and people differently, they would achieve even

    greater progress. Recommendation: Conduct a systemic analysis

    of your city to identify systemic relationships that can be

    taken advantage of when planning, developing and running

    initiatives

    Details

    Maximizing the potential of initiatives in a city requires a

    holistic approach. Currently, there is a great deal of activity in

    many cities, but the natural synergies that exist between ini-

    tiatives are not being exploited. This is resulting in initiatives

    that duplicate efforts, solve only part of a problem or operate

    in isolation of each other.

    1. Initiatives duplicate efforts. Since funding often comes

    from many agencies and organizations, it is common for

    initiatives in the same location to duplicate efforts. At onesite, an organization was given a grant to conduct a tech-

    nology assessment survey of residents. Soon after the grant

    was awarded, another organization in the city announced

    the findings of a similar survey they conducted. Despite the

    fact that the two surveys were nearly identical, the second

    survey was conducted to comply with the funding guide-

    lines that called for slightly different metrics than the other

    survey used. The results of the two surveys were pre-

    dictably similar.

    2. Initiatives solve only a part of the problem. Too often, userenablement is happening without meaningful applications,

    and applications are being built without enablement. Many

    initiatives provide training and equipment without consid-

    ering exactly what end users are going to do with it. In

    rare instances, this is being inadvertently imposed on ini-

    tiatives by the funding organizations. In Manchester,

    England, limitations placed on funding prevented officials

    from offering training in certain areas that were in high

    need of their services. In most instances however, partial

    solutions are the result of an "if you build it, they will

    come" mentality.

    3. Initiatives are isolated. Many related initiatives in a single

    locality are operating in isolation of one another. In several

    locations visited, most government agencies have initia-

    tives underway to organize statistical data, building and

    road information, as well as resident data based on geogra-

    phy. Unfortunately, in most instances, each agency was

    defining its own standards and was unaware of similar ini-

    tiatives underway in other agencies. This is primarily

    because of a lack of understanding of the complex inter-

    relationships that exist between the organizations operat-

    ing within a city.

    Recommendations

    Without a clear picture of how initiatives relate to one anoth-

    er, initiatives are not able to leverage the capabilities and ben-

    efits being generated by other initiatives. This results in ineffi-

    cient and non-reinforcing efforts that, in most instances, limit

    the impact of each initiative. Only by understanding who and

    what is in your city can initiatives take full advantage of local

    resources.

    - Tool up. Cities are highly complex and inter-related enti-

    ties. Fortunately, tools exist that can help cut through the

    complexity and develop a clearer understanding of how all

    the pieces fit together. For example, system maps and

    process diagrams can illustrate what organizations exist in

    a given area, which should be involved in an initiative andwhat types of interactions they will have. At a healthcare

    initiative in the United States, a comprehensive systems

    diagram was developed to help initiative leaders under-

    stand how different organizations in their community were

    addressing the issue of teen pregnancy. This diagram

    helped them identify the complex interrelationships

    between different initiatives, the gaps that were being filled

    by unconventional (and unexpected) health organizations,

    Systemic Relationships

    By viewing their city as one large system of inter-related partsand accounting for it in their plans, cities can more effectively

    make use of their limited local resources.

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    overlapping areas of interest and potential areas for col-

    laboration.

    - Look past traditional sector boundaries. Include all parties

    that could potentially be affected by an outcome in the

    planning. This means looking beyond traditional sector

    definitions. At the Smart Permits initiative in California, a

    wide variety of organizations were involved in what

    appeared to be a simple online permitting initiative. This

    initiative eventually included government agencies, archi-

    tects, construction contractors, civil engineers, real estate

    developers and landowners. The result was a system that

    radically transformed the permitting process and benefited

    a much greater number of organizations than originally

    intended.

    - Attack foundation areas first. Since many resident-facing

    applications depend on business and government computer

    systems, it is important that initiatives be targeted in these

    areas first. This not only ensures that the essential building

    blocks for other applications are in place, but it also gives

    businesses and government the time they need to under-

    stand the full capabilities and potential the technology has

    to offer.

    - Focus on areas and user segments with the greatest pull.

    Areas and user segments that have the potential to pull in

    related areas and users should be considered a high priori-

    ty. For example, focusing on the publishing industry in

    some locations can pull in related industries such as the

    creative arts or printing. These areas and user segments

    can be found by identifying existing networks in a locality

    and targeting key players in the networks. These networks

    typically revolve around social groups such as ethnic com-

    munities, key players in an industry such as a hospital and

    major governmental agencies or non-profit organizations

    that touch many other organizations.

    - Focus on high frequency of use areas. Applications that

    deal with areas that are accessed frequently by many users

    have a high potential for success. Targeting these areas

    will benefit a large number of users, and with a high fre-

    quency of use the benefit will be multiplied many times

    over with successive use. Targeting low-use areas might

    result in a successful application, but its benefit on the

    locality will be substantially lower.

    - Focus on high-impact user segments.Within any locality,

    the majority of local products and services will be used

    and consumed by a relatively small percentage of resi-

    dents. For example, senior citizens typically access many

    local products and services such as healthcare organiza-

    tions, public transportation, cultural centers, recreation

    facilities and volunteer organizations. A college student,

    on the other hand, will usually access significantly fewer

    local products and services. Creating applications that

    address the needs of high-impact users will greatly benefit

    those who are most dependent on local products and serv-

    ices.

    - Establish standardized metrics.A clearly defined set of

    standard metrics can help ensure that initiatives are meas-

    uring and tracking data in ways that allow cross-compar-

    isons and information sharing happen. All organizations

    within a given sector should be encouraged to begin the

    process of standardization well before any technical inte-

    gration occurs. In the City of Aiken, South Carolina, all

    city agencies agreed to a set of standards for geographic

    information before the computer systems were in place to

    integrate it. This has enabled them to make significant

    progress while their technology infrastructure is planned

    and developed. Even relatively simple efforts, such as stan-

    dardizing the segmentation of the user population into age

    classifications, can lead to significant benefits for measur-

    ing and comparing progress.

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    30 Copyright 1999. Andersen Consulting. All Rights Reserved.

    Summary

    Current thinking: Using cutting-edge technology in applications

    is the best way to ensure that they will be useful for the long

    term. Finding: Technology will continually change.

    Recommendation: Plan for change, go for quick wins and don't

    get tied to one technology.

    Findings

    Application developers often want to employ cutting-edge

    technology in situations where more mature technologies may

    be more appropriate.

    1. Mixing cutting edge technology with unformed content is

    extremely difficult.An experiment to put museum content

    online was held back by the difference between the fast

    changing multimedia world and the methodical pace of

    museum content creation. As was their custom, the muse-

    um personnel were extremely diligent in deciding how to

    present their material. Meanwhile, the multimedia partner

    was repeatedly moving onto the most advanced interface

    technologies, resulting in a constant rework of very small

    amounts of content.

    2. Technology often moves faster than initiatives can. The

    consortium that backed the broadband residential initiative

    Netville near Toronto wanted to install the most advanced

    high-speed network possible. But the technology was so

    unstable and the area was moving so quickly, that one

    developer commented that the network was outdated and

    unsustainably expensive the minute it went into the

    ground. The pilot ran into problems with its applicationsas well. One of the features they developed was a custom

    music on demand service. Soon after the pilot was

    released, streamed music and MPEG hit the Internet, mak-

    ing the pilot application obsolete.

    3. Leading edge technologies are often ahead of the techno-

    logical preparedness of the target population. This some-

    times leaves the application underutilized. Potentially use-

    ful Internet applications in Barcelona are being underused

    due to the very low penetration of internet users in that

    city (9%).

    Recommendations

    Application developers need to acknowledge that communica-

    tion and computing technologies are not yet mature enough to

    be stable for a long period. Therefore, they should consider

    how important it is to employ cutting edge technologies. In

    addition, they should anticipate the impact of new standards

    as they emerge.

    - Plan for change. HPY, a Finnish telephone company, has a

    pilot that is designed to accommodate technological

    change. They have been experimenting with the creation

    of a three dimensional model of Helsinki as a navigation

    methods for local services and social spaces. They recog-

    nized that delivery platforms were not mature, and were

    likely to change significantly in the near future. To com-

    pensate for this, they created data models for the city that

    were platform and technology independent, so that

    whether VRML, or any other viewing platform wins out,

    they will not need to reconstruct the data models; they

    merely need to establish new access links.

    - Don't roll out the technology prematurely. The city of

    Aiken is planning to create a multi-faceted Geographic

    Information System (GIS) incorporating data from numer-ous agencies. Recognizing that many of the agencies will

    need to adjust their internal processes to participate in

    such a system, they began process changes two years

    before they plan to actually invest in the technology,

    allowing the technology to mature. This allows them to

    Technological Change

    Cutting-edge technologies can be a powerful attractor for users,but application developers that take a more pragmatic view

    of technology will achieve better results over the long-term.

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    Copyright 1999. Andersen Consulting. All Rights Reserved. 31

    make progress towards their goal without waiting for the

    technology to be in place.

    - Go for quick wins. Barcelona's Infopime incorporates a GIS

    database with demographic and business data from many

    city agencies. When they began, they sought to use

    already existing data so that they could get the system up

    and running immediately. They will add and refine fea-

    tures over time as more users have access to the system

    and they understand better what is valuable. This is allow-

    ing their users to get value out of the system now while

    they improve it further.

    - Sometimes low-tech is best. Sometimes the power of an

    application lies in the data and the capabilities provided by

    that data, not in the technology. The successful housing

    registration application in the Hague was delivered on

    teletext, a text-based TV protocol in Europe, not a high-

    end web site. They wanted to ensure that all residents

    could access the application, and chose an older, but more

    universally accessible medium to deliver the application.

    Similarly, the Next Generation Cities project in San

    Francisco is limiting its applications to those that will per-

    form well on least common denominator Internet access

    speeds, which is a dial up modem.

    Over 85% of the 36,000 residents ofBlacksburg, VA are able to access The

    Blacksburg Electronic Village from home.Recent research findings highlight how local

    organizations such as churches and volun-teer organizations are fundamentally

    changing the ways in which they interactwith residents as a result of the long-term

    use of the community network.

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    32 Copyright 1999. Andersen Consulting. All Rights Reserved.

    PSummary

    Current thinking:All we need to do is wait for society to catch

    up with technology in order to create mass applications; it's

    only a matter of time. Finding: Cultural and personal attitudes

    run extremely deep, and late adopters are unlikely to turn into

    technology enthusiasts. Recommendation:Assume that late

    adopters will remain skeptical of technology, and employ

    communication and training strategies to compensate for

    engrained attitudes.

    Findings

    Leaders believe that everyone in a community will adopt new

    technologies that offer value to them. In addition, developers

    depend on having a critical mass of users adopt their applica-

    tions. And developers are finding that some users do eagerly

    adopt new technologies, but others take months or years to

    adopt them, if they do so at all. Cultural and personal atti-

    tudes run extremely deep and late adopters are unlikely to

    turn into technology enthusiasts.

    1. Many people are slow to see the value in new technology.

    In one location, University teachers did not want to allow

    students to use email on campus computers. They were

    afraid that the students would use their limited computing

    resources for non-school activities. They did not under-

    stand how students rely on email to communicate among

    themselves, and they were reticent to view these activities

    as proper use of University resources.

    2. Hands-on personality types are not attracted to technolo-

    gy. In Aiken, South Carolina, a healthcare coalition wasattempting to adopt software to collectively track health

    statistics. Many of the participants were hands-on practi-

    tioners and didnt relate to technology well. Many were

    not even email users, much less comfortable with group-

    ware. Repeated prodding and even peer pressure tactics

    were required to finally get them online. Some members

    eventually dropped out to focus on more hands-on work.

    Recommendations

    Since late adopters are likely to remain skeptical of technolo-

    gy, employ research, communication and training strategies to

    understand and compensate for engrained attitudes.

    - Recognize each user type. Since each user type has differ-

    ent motivations, the development and promotion of appli-

    cations need to account for these differences. Initiatives

    should develop profiles for each user type. In developing

    these profiles, it is important to identify: specific charac-

    teristics of each user type; who users look to for technolo-

    gy guidance; and what factors they consider before adopt-

    ing technologies. Tools for gathering this information

    include attitudinal surveys, interviews of users and non-

    users, and direct observation of users in their place of

    work. This helps initiatives understand how best to tailor

    applications to users.

    - Use early adopters to inform your long-term strategies.

    ]Early adopters can be a powerful tool for understanding

    how later adopters will use a technology. Educators in

    several locations were aware of the value of letting early

    adopters lead the way. Because early adopters are the first

    to use the technology, they can be a source of insight into

    how it can be improved and tailored to the needs of the

    majority and provide success stories and best practices. By

    incorporating the information learned from early adopters

    into the approaches taken with the majority, developers

    can increase adoption rates significantly.

    - Help users see and understand the value of new technolo-gies. Document and promote best practices. Best practices

    help users see how others are using technology and how it

    is adding value. It gives them something concrete that they

    can relate to their situation. In addition, with references of

    others who have had success with an application, the

    majority gains the necessary confidence they need to adopt

    the technology.

    Personality & Culture

    Visions of widespread technology adoption are compellingbut the reality is that some people may never become

    enthusiastic about trying new technologies.

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    In addition, rather than promote all of an application's

    features, choose a select few that apply most directly to

    the users being targeted. This enables them to discern what

    real benefit is coming from the application.

    - Employ trusted parties to get people involved. People

    engage in behavior with people and organizations they

    know and trust before they turn to unfamiliar organiza-

    tions. At one location, local churches and cultural groups

    were brought in to host computer literacy training to great

    success.

    Copyright 1999. Andersen Consulting. All Rights Reserved. 33

    A framework developed by Geoffrey Moore called the TechnologyAdoption Life Cycle Framework identifies five types of technologyusers. According to Moore, every population of technology users canbe broken down into five types. These user types are not distributedevenly throughout the user population. The vast majority fall into theEarly and Late Majorities and are static. This means that all people fitinto one type and they do not change types over time. For moreinformation on the Technology Adoption Lifecycle, refer to Crossingthe Chasm by Geoffrey Morre..

    Innovators are always the first to adopt new technology. Often, thetechnologies are just out of the lab or still under development.Innovators are easy to spot. They usually have electronic devices

    attached to their hip and talk in a techno-speak that only theyunderstand.

    Early Adopters can see the benefits and potential of a technologybefore it is proven in the marketplace. Like Innovators, they under-stand the potential that technology holds and are willing to put upwith the bugs and glitches that often accompany new technologies.

    The Early Majority user is willing to adopt technologies, but wantsproof that it works before he or she commits. These users are funda-mentally pragmatic. Proof typically comes to them through examplesof how the technology is benefiting others.

    The Late Majority is cautious of new technologies and waits for a

    dominant standard to emerge. This group wants to be assured thatsolutions work as promised, that adequate technical support existsand that they are adopting the industry standard.

    Laggards do not see the need for technology and are often forcedinto adopting it. They are always the last group to adopt any technol-ogy even if waiting causes great inconvenience for them. SomeLaggards are vocal critics of technology and actively work againstattempts to introduce new technologies.

    The Technology AdoptionLife Cycle Framework

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