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The European Commission's Digital Cities Challenge

The European Commission's Digital Cities Challenge

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The European Commission's Digital Cities Challenge

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  1. The European Commission's Digital CitiesChallenge • Guidelines for implementation of Digital Transformation Trajectory Step 2: Strategy definition

  2. Guidelines for the implementation of step 2 of the Digital Transformation Trajectory: definition of a digital transformation strategy

  3. Step 2: StrategyDefinition After defining a vision and developing a set of ambitions, it is key to create a strategy to achieve these ambitions and realize economic growth Preparation 0 Digital vision& ambition 1 Strategy 2 Roadmap 3 Monitoring& implemen-tation 4 Field advisory services Ambition workshop SAT & KPIs Assess-ment visit Strategy workshops Roadmap workshop Online Monitoring conference call Academy Kick-off seminar Vision & Ambition seminar Strategy seminar Roadmap seminar Wave 2 Wave 1 Today The academy seminar is … … a promotion … … not one additional networking event. … a learning and working session … … not a training course. … a recognition by the peers … … not a conference.

  4. Step 2: StrategyDefinition Step 2 aims at defining the city's strategy for its digital transformation and industrial modernisation in order to achieve economic growth and competitiveness Overview of Strategy phase Way of working Objectives A • Data collection • Gather the necessary data: • Updated and consolidate digital vision and ambition statement, integrating academy seminar feedbacks • Analyse existing policies and strategies on digital transformation and ensure the digital vision is aligned with existing related policy strategies in the field of economic development and competitiveness • Develop a strategy for digital transformation and industrial modernisation based on • Vision and ambition definition • Existing policy strategies • Embed the strategy among all stakeholders of the network • Define KPIsfor the strategy ✓ B • Ideation and prioritization • Create the necessary building blocks for strategy deployment • Gather feedback on ambition statements from previous steps and their related Key Performance Indicators • Generate a list of possible operational objectives and action items, and link them to ambition statements • Prioritize all of operational objectives & identify possible sources of funding for the digital transformation strategy C Consolidation Consolidate the separate building blocks into one strategy Deliverables • Strategy definition

  5. Step 2: StrategyDefinition Key concepts and definitions • Strategy orientation: The idea is to identify the ‘niche’ your digital transformation strategy is going to fill given it’s focus and objectives. The strategic orientation will be defined by several factors including: the policy fields and objectives it addresses, as opposed to other existing strategies (i.e. digital for economic growth); the sectors is focuses on (i.e. one/two sectors vs. multiple sectors); the types of actions and measures it will prioritize (e.g. skills vs infrastructure); political and strategic priorities of city officials (e.g. focus on social/green spill overs). • Key Performance Indicators: Indicators to be used to monitor the progress and success of your digital transformation strategy. In the context of step 2, they refer to the indicators to measure progress towards the ambitions statements (i.e. strategy outcomes and results). • Operational objectives: An objective which reflects the means through which you will to achieve your ambition statements. They are called operational because they are of an actionable nature. It’s the ‘how’ behind the different vision statements you have adopted. All operational objectives should begin with the word ‘to’. Digital transformation strategy operational objectives can be linked to one or several ambition statements. At this stage, you are not expected to define operational objective KPIs.

  6. A Data collection Step 2: StrategyDefinition The vision and ambitions combined with potential existing city policies will serve as input for the strategy definition Strategic orientation Roles & responsibilities of city team Vision and ambition statements Strategic options Existing digital policies • Update and consolidate digital vision and ambition statement based on feedback received during academy seminar • Provide expert team with all available city policies and strategies on digital transformation (if available) • Organise and moderate workshops • Provide assistance in identifying potential sources of funding & defining strategy KPIs Common vision and ambition for the city’s digital transformation List of possible strategic directions, provided by the experts Consolidation of existing digital transformation strategy (if available) • Workshop • Workshop • One single group for workshop 2 (bringing together all participants from Workshop 1) • Possibility of creating up to three thematic (i.e. based on different ambition statements) focus groups for the first workshop if you have a broad number of stakeholders and distinct strategic priorities • OR • Keep it to a single group (max 15 people) • 1 • 2 • Strategic priorities • Consolidated • strategy • November 2018 • December to latest January 2019

  7. Step 2: StrategyDefinition • Whatis an Operational Objective (OO)? One operational objective can be related to one or more ambition statements For example, in Patras, one of the ambitions statements is ‘to adopt ICT solutions for Patras to become a cultural attraction pole and a tourism destination and origin’ • How can the city achieve this? • What types of measures will be able to address the issue of ‘lack of digital services and content available for citizens and companies’? • What are the means at the city’s disposal to reach this objective? • Who are the targets and what are the tools to reach them? • What are the key barriers and bottlenecks to achieving this goal? The Operational Objective related to this Mission statement is “To select and support ICT applications to promote thematic tourism in Patras” Limit you choice of OO to maximum 6 (i.e. 2 per ambition statement)! And draw inspiration from DCC cities and good practices! An operational objectives is not a concrete action or measure to be implemented (this will come later on).

  8. Step 2: StrategyDefinition • Whatis an Operational Objective (OO)? An objective which reflects the means through which you will to achieve your ambition statements They are called operational because they are of an actionable nature. It’s the ‘how’ behind the different vision statements you have adopted. All operational objectives should begin with the word ‘to’. Examples may include: • To enable the generation and use of open data for the development of innovations within the private sector • To develop digital infrastructure at the city level which lead to either enhanced productivity, reduced costs, or the development of new products or services within the private sector • To promote the creation of new innovative firms within the city offering digital-based innovations, or acting as suppliers of digital solutions to local businesses • To strengthen the skills capital of the city’s labour force in order to enable a higher rate of use and development of digital technologies within firms • To increase the use of digital solutions and technologies within the private sector in order to reduce their environmental footprint

  9. Step 2: StrategyDefinition • Example for Patras (draft strategy) General vision statement DONE – To be updated based on academy THE STRATEGY SHOULD INCLUDE A CLEAR EXPLANATION ON HOW IT BUILDS ON / CONTRIBUTES TO EXISTING ECONOMIC DEVELOPMENT AND DIGITAL STRATEGIES -> THERE SHOULD BE AN EXPLANATION IN THE STRATEGY DOCUMENT ON LINK TO EXISTING ACTIONS AT THE CITY LEVEL The overall ambition of the City of Patras is to create an open smart city digital infrastructure supported by a rich research and innovation ecosystem eager to keep up with the new international challenges of the digital society while keeping citizens' engagement at the heart of this effort. The city of Patras perceives smart cities/regions as an Open Laboratory Ecosystem positioned at the intersection of digital technology, disruptive innovation and urban/rural environments for citizens and entrepreneurs. Strategic orientation (step 1 vision and ambition) To adopt ICT solutions for Patras to become a cultural attraction pole and a tourism destination and origin To offer digital services and content to citizens and companies by adopting open data and open standards Ambition statements DONE – To be updated based on academy To strengthen the sustainable urban development of Patras through the implementation of IoT technology on a large scale To exploit and strengthen broadband infrastructures and new generation networks KPIs and targets for ambition statements TO Do step 2 KPIs : baseline and targets KPIs : baseline and targets KPIs : baseline and targets KPIs : baseline and targets Operational objectives and high level KPIs (step 2 strategy development) Operational objective 1 Operational objective 2 Operational objective 6 Operational objective 5 Operational objective 4 Operational objective 3 Operational objectives TO Do step 2

  10. Step 2: StrategyDefinition Whatis an Operational Objective (OO)? • Operational objectives are generally related to one or several policy levers. In the case of digital transformation, key policy levers you may tap into may include the following (not all will be relevant, based on your city’s competences): • Improving education and skills, whether it’s basic or secondary education, academic or practical • Improving access to capital for certain groups, including businesses • Improving infrastructure to enable the deployment of digital technologies, and enhance the fluidity of data sharing and generation • Improving the stock and dissemination of data with a value for economic activity • Improving innovative capacity within the city to ensure knowledge flows between knowledge generators and knowledge users, in light of developing practical solutions based on the use of digital technologies. This includes support of the creation of new innovative firms which either based their products on the use of digital solutions, or develop digital solutions themselves. • Enhancing market openness to create fertile ground for the development and uptake of innovations based on the use of digital technologies, as well as to ensure a level playing ground between incumbents and up and coming firms • Improve labour market regulation to make it easier to attract and retain talent in cities • Support the development of local clusters of related and supporting industries in the digital sector in order to promote dynamism and productivity gains

  11. Step 2: StrategyDefinition • Digital Transformation Strategy Document: Step 2 output Validated mission and vision statements with explanation and justification Key Performance Indicators for the ambitions Statements Targets for Key Performance Indicators related to Ambition Statements Prioritized operational objectives with a description of rationale and feasibility Synergies between the digital transformation strategy and other policy strategies Identified budget to support operational objectives

  12. B Ideation & prioritization Step 2: StrategyDefinition In separate strategic workshops we define the digital strategy for each of the focus groups based on identified and prioritized operational objectives Strategy formulation framework Digital vision and ambition What operational objectives to prioritize What operational objectives to pursue? 2 1 Assess your city’s current digital maturity ✓ Create a long list of potential operational objectives to achieve ambition statements 1.1 2.2 2.3 2.1 Identify possible source of funding Create a shortlist of potential operational objectives based on the results of the prioritization Prioritize the potential operational objectives based on feasibility and impact ✓ Formulate your city’s digital vision and ambition and define 4 ambition statements 1.2 To define a list of Key Performance Indicators linked to the 4 ambition statements ✓ Map ongoing strategic initiatives ✓

  13. Step 2: StrategyDefinition • The first strategy workshop (November) • Before the workshop • Update vision and ambition based on feedback and results from Academy Seminar (e.g. peer review) • Decide whether you are doing a single workshop or different workshops per mission statement with focus groups • Identify stakeholders to be invited per workshop(s) • Develop a preliminary list of potential KPIs for each of your ambition statements • Develop preliminary long-list (5/6 per ambition statement) of operational objectives for each of your ambition statements, using as input the results of the ideation sessions which took place during the Academy Seminar (remembers one operational objective can apply to several ambition statements) • During the focus groups / workshop • Present and validate the updated vision and ambition • Identify ambition statement KPIs • Discuss and prioritize operational objectives by ambition statements • After the focus groups / workshop • Develop the strategy log frame based on outcomes of the different workshops • Complete KPI list and suggest targets • Organize and set date for strategy consolidation workshop

  14. Step 2: StrategyDefinition • Defining Key Performance Indicators (KPIs) and targets for Ambition Statements 1 or 2 KPIs per ambition statement to define the ultimate goal in terms of economic growth & competitiveness of the city • Benefits in terms of e-democracy, improved public services to the population… are key, but they should not be the key focus of the Digital Transformation Strategy • KPIs should reflect the ambition of promoting economic development and competitiveness at the city level • We are looking for strategy outcome indicators, not strategy output indicators. Changes as reflected in these KPIs are not likely to take place before the next 3/4 years (i.e. in the short term, success of digital cities will not be judged on these indicators) Keep in mind the following principles when defining your KPIs: • The KPIs are attached to the ambition statements and must then measure end results / impacts in terms of economic growth and competitiveness and not realization of actions / operational objectives • KPIs and target values must be consistent with KPIs defined in other existing digital/economic development strategies at the city/regional level • Involve both users and suppliers of data in the construction of an indicator system to ensure its practicality SAT and DCC KPIs will not necessarily be a good starting point for the definition of your ambition statement KPIs -> they don’t always reflect economic growth and competitiveness Identify means of verification of KPIs & and time periods for measurement

  15. Step 2: Strategy Definition • Selecting Key Performance Indicators for the ambition statements: principles to keep in mind Strategy effects picked up? Given that they are linked to ambition statesments, we are looking to capture mid to long terms effects on economic growth and competitiveness of the city Sensitive Comparable Allow comparisons between different strategy components? Are they comparable to other KPIs and targets adopted by other digital / economic growth strategies Normative Do they allow judgements to be made? Are they clearly understandable without ambiguity? Meaningful

  16. B Ideation & formulation Step 2: StrategyDefinition Strategy workshop 1: details Preparation Agenda Workshop 1 Ideation & Prioritization • Update and consolidate digital vision and ambition statement based on feedback received during academy seminar • Provide expert team with all available city policies and strategies on digital transformation (if available) • Create focus groups (if necessary) 1h • Recap of the key aspects of the vision and focus group specific ambition 1h30 / 2h00 • Brainstorm session using post-its to generate a long-list of operational objectives to achieve these ambitions • Prioritization of the identified operational objectives using the prioritization matrix 1h • Participants • Send-out the results • Complete city team (Team leader, local expert, business reprsentatives etc.) • Previous and new external stakeholders interested in the ambition being discussed

  17. B Ideation & prioritization Step 2: StrategyDefinition Initiate a brainstorm session with your city to form a long list of potential operational objectives to achieve specific ambitions and formalize this in the operational objective City: City 1. Longlist of potential operational objectives Date: Date Link to ambition statements Instructions Potential impact Key SuccessFactors Description Develop a longlist of 10 – 15 potential operational objectives to achieve the specific ambition statements • Brainstorm in a post-it session to maximize input • Transfer brainstorm results into template • Description: description of the operational objectives • Relevance: relevance of the operational objective to achieve the focus group specific ambition • Key success factors: key success factors for completing this operational objective and reaching the desired effect Potentialoperational objective 1 ... ... ... ... Potentialoperational objective 2 ... ... ... ... Potentialoperational objective 3 ... ... ... ... Potentialoperational objective 4 ... ... ... ... Potentialoperational objective 5 ... ... ... ... Potentialoperational objective 6 ... ... ... ...

  18. Step 2: StrategyDefinition • The second strategy workshop (consolidation – December) • Before the workshop • Send out strategy log frame to workshop participants • During the workshop • Present the consolidated strategy log frame • Vision statement • Ambition statements and KPIs • Operational objectives • Links between operational objectives and ambition statements • Discuss potential sources of funding for each operational objective & and synergies with existing city strategies • Potentially discuss key priority actions to be taken under each operational objective (short term) – Focus of the step 3 of the approach • After the workshop • Prepare the Digital Transformation Strategy Document and submit before 11th of January (output of step 2 and prepare for the 4th Academy Seminar in January)

  19. B Ideation & formulation Step 2: StrategyDefinition Strategy workshop 2 (consolidation): details Preparation Agenda Workshop 2 Consolidation • Develop a the strategy log frame based on outcomes of the first workshop • Complete KPI list and suggest targets 1h • Presentation of the strategy log frame and validation 1h • Presentation of KPIs and suggested targets • Identification of potential sources of funding and synergies with other city strategies 1h30 • Send-out the results & prepare for the next academy seminar • Participants • The same as for the first strategy workshop or a selection of participants of the different focus groups

  20. B Ideation & prioritization Step 2: StrategyDefinition Position the detected operational objectives in the prioritization matrix in order to get a better overview of which ones should form the core focus of future next steps 2. Prioritization of potential operational objectives (one per ambition statement) – Prioritization matrix City: City Date: Date Most important operational objectives High Instructions Potential impact Prioritize the operational objectives on the longlist according to potential impact and feasibility • Potential impact: the extent to which this objective can contribute to the achievement specific ambition • Feasibility: the degree of practical achievability of the operational objective in the short term Operational objectives which end up in the top right corner, within the grey circle, should be considered the most important as they are the most achievable with the highest impact in achieving the specific ambition Feasibility Low Low High

  21. B Ideation & prioritization Step 2: StrategyDefinition The result of the filled-in prioritization matrix can be used to create a shortlist of the most important Operational Objectives to be followed-up in the short term 2. Prioritization of potential operational objectives – Prioritization matrix example Most important operational objectives High Potential impact OO 8 Feasibility OO 7 OO 6 OO 5 OO 4 OO 2 OO 3 OO 1 Low Low High

  22. Contacts • Carlos Hinojosa [carlos.hinojosa@technopolis-group.com] • Pierre Bastien [pierre.bastien@rolandberger.com]  • Morgane VeilletLavallée [morgane.veillet-lavallee@technopolis-group.com] • Jacek Walendowski - project leader [jacek.walendowski@technopolis-group.com]