BUSINESS


The New Urban Century: Can BI Help Cities Adapt?

August 30, 2006

"The urge to urbanize is gaining the upper hand. For most people, the landscape they wake up to will henceforth be concrete." – The Economist1

This year, for the first time ever, more people will be living in cities and towns than in rural areas. And growth is expected to continue. The United Nations predicts that by 2030, two-thirds of the global population will be urban.

The burgeoning of urban populations places municipal governments front and center, as they must find ways to meet the growing demand for land use, housing, water, sanitation, and emergency and other services. Richard Rosan, President of the Urban Land Institute, says most cities face similar issues: managing growth, providing enough affordable housing and transportation options, and "in general, finding the best way to rebuild, restore and renew our urban areas."2

Urbanization Facts
  • The world's population is expected to double in 38 years.
  • In 1800, only 2 percent of the world's population was urbanized; by 2030, 60 percent will live in cities.
  • Almost 180,000 people are added to the urban population each day.
  • By 2015, it's expected that there will be 23 megacities with a population of over 10 million, with 19 of them in developing countries.
  • Tokyo is the world's largest city with a population of over 35 million.
  • By 2020, 8 more cities will reach megacity status.
Source: UN-HABITAT

To future-proof their environments, local governments will need new models and strategies, writes PriceWaterhouse Coopers (PWC) in a study on future cities. "Rapidly changing modern societies are creating a need for strategic development that offers constant innovation and a renewal of processes and peoples' attitudes."3

And from Patricia McCarney, Director of the Global Cities Program at the University of Toronto: "The power of good planning and effective management in city governments is critical in propelling cities towards sustainability." No one formula will work for all cities, she adds, but each can apply innovative approaches appropriate to its local circumstances.4

Future-proofing city services

According to PWC, a key focus for many cities is improving administrative processes and workflows to provide better services for citizens. And information technology plays a critical role in helping them manage change effectively.5

A survey of Cognos customers shows that many local governments have taken strategic steps in this area, with the help of business intelligence and planning tools. By addressing service delivery now, they'll be able to meet capacity requirements in the years ahead.

Program delivery: City of Ottawa

Ottawa is one of the fastest-growing communities in Canada. Since amalgamating its 12 municipalities to create the Greater Ottawa region in 2001, the City has continued to improve its operations to save time, money, and resources.

Cognos business intelligence allows city employees to automate processes and gain access to accurate data quickly. The technology also helps the city to better understand its programs and streamline efforts within and across departments. For example, the People Services department segments client needs and behaviors, which allows them to build more targeted and customized programs for the public.

"Are there enough recreational centers? Do we have employment and financial assistance offices in the right locations? If we can provide performance measures at the right level, we can provide a bigger picture of the city's direction and ensure we provide the right services in the right places as the city continues to grow," says Sonia Luberti, Policy Planning and Evaluation Officer, People Services, City of Ottawa.

Fiscal management: Dallas Area Rapid Transit

Designed to counter urban sprawl and an overburdened freeway system, Dallas Area Rapid Transit (DART) has nearly doubled its ridership since it started in 1996. It offers a number of transportation options, including light and commuter rail, bus, and vanpools.

DART uses Cognos planning to model complex transportation-related costs and make the best use of budget dollars. With this planning capability, the organization can anticipate and effectively manage staffing allocations, schedules, and costs each year.

"There is a lot more capability to accomplish things now," says Jennifer W. Pike, DART's Assistant Vice President of the Office of Management and Budget. "The ability to tie various pieces of data together was sadly lacking before. We are already amazed at how last-minute changes in the budget were able to flow so simply through the system."

Fire and emergency services: City of London

The London Fire and Emergency Planning Authority (LFEPA) runs the London Fire Brigade. The principal aim of the organization is to make London a safer city by minimizing the risks and social and economic costs of fire and other hazards.

LFEPA is using Cognos to improve response times and reduce time and resources spent on false alarms and malicious calls. Using BI, staff analyze incident data and can spot trends, such as if an alarm has gone off repeatedly at one site and been answered by successive watches.

Gaining timely access to disparate data such as fire certificates for buildings, chemical storage locations, and building design and escape features will also help firefighters do their jobs more effectively. "What the firefighters really like about it is that they can get right down to activity at an individual address," says Phil Freestone, Business Systems Analyst, LFEPA.

Value for taxpayers: City of Coquitlam

PriceWaterhouse Coopers points to the importance of performance management in helping municipal governments "get the most out of their assets and drive and support a culture of continuous improvement."

The City of Coquitlam uses the full complement of Cognos performance management solutions – planning, business intelligence, and scorecarding – to deliver better services to the community with the same resources, so there is less of a burden on taxpayers. The software allows staff to set performance improvement targets, measure them against corporate plan, and communicate and manage departmental and business line objectives.

"Through this type of planning and accountability, we are better able to provide service to our citizens, and enhance the efficiency of our organization," says Mayor Jon Kingsbury, City of Coquitlam.

Summary

The writing is on the wall: cities will need new strategies and planning models to effectively manage rapid urban growth. The City of Coquitlam and other customers understand the value of performance management, business intelligence, and planning in meeting the challenge. Better information and insight leads to greater performance and efficiency – allowing local governments to maximize operations and resources, and continue to meet the demand for public services in the coming years.


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Sources

1 John Grimond. Metro Man: Is homo sapiens wise to forsake the countryside? The World in 2006. The Economist

2 Richard M. Rosan. The Importance of High-Quality Urban Design in Creating Livable Communities. Urban Land Institute. March 9, 2005.

3 Cities of the Future – Global Competition, Local Leadership. PriceWaterhouse Coopers, 2005.

4 Patricia McCarney. Our Future: Sustainable Cities-Turning Ideas into Action. World Urban Forum III background document. June 2006.

5 Cities of the Future-Global Competition, Local Leadership. PriceWaterhouse Coopers, 2005.

6 ibid.

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