| 4. In which ways is the initiative creative and innovative?
1. Comprehensive Planning for the Initiative
Anyang’s transition toward a smart creative city started in the late 1990s when the city decided to foster small knowledge-based ventures. In 2001, the city was chosen as a venture promotion zone by the central government, and became the third largest IT valley in Korea by 2009.
The city installed optical communication networks for the UIC by 2008, but did not know how to fully utilize it. Despite such evolution toward a smart creative city, Anyang did not have any comprehensive plan until 2011.
In 2011, the city made a proposal regarding the Smart Content Center to the Ministry of Culture, and won a grant from the Ministry. The city finally set up a comprehensive initiative with four main programs including eighteen major projects in 2012.
2. Smart Economy Program: Co-financing Vitalizes Incubation
To make Anyang’s economy fit for the smart age, the city decided to establish the Smart Content Center which required substantial amounts of financial resources. Through co-financing by the Ministry of Culture and the Prefectural Office, Anyang City selected qualified start-ups and ventures as the first residents of the Center.
The following is the strategy for this project: a prep entrepreneur begins his own business in the Creative Ground. Anyang city supports his idea and creativity through grants. The rent and utility charges for the office space is virtually zero. He can access various facilities such as a 3D Studio. He presents his business model to others during the Thursday Network Meetings. If his idea is plausible and brilliant, other developers join him to form a kind of company. In case the company is matured in the Ground, it graduates and is advanced to the Smart Content Center which provides greater support.
3. Smart Protection Program: Transition From Protection to Prevention
The UIC is the key point of smart protection. During the years 2008 to 2011, UIC integrated the intelligent traffic system, bus information system, and security CCTV system into one. In order to do so, 15 municipal departments and agencies had to co-operate with each other. Integrating the systems through the UIC had the effect of lowering operation costs and saving input of human resources while maximizing the use of facilities.
Since 2012, the UIC upgraded its services to include U-traffic control, U-security, U-disaster prevention, and U-communication, all provided at one headquarter. For example, the UIC expanded the horizons of crime prevention education by utilizing VOD including actual crime scenes collected by the center. It also educates youngsters to drive safely by showing scenes of actual traffic accidents. These preventative activities had the effect of decreasing crime and accident rates to a much lower level.
4. Public Service Program: Changing High Tech to Warm Tech
Success of this program is dependent on the possibility of developing new applications for the disadvantaged. Anyang city, however, does not worry about feasibility, for it has many creative ventures in the Smart Content Center. Ventures in the center are eager to supply applications for new smart public services.
| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
1. Mayor’s Role in the Implementation
The mayor is the key to implementation as well as policymaking of the initiative. He is responsible of persuading line administrators to sympathize with the transition of Anyang on the one hand. He has to bring outside resources to the city on the other hand.
2. Line Departments, Task Force Team, and Experts from Private Sector
Public servants created ideas for the initiative on the one hand. They have to implement what they proposed on the other hand.
The task force team, Policy Propulsion Group, coordinates the ideas and forms them into a roadmap for implementation. Experts are recruited from the private sector. The city recruited 24 specialists.
3. Citizen Participation Committee
Suggestions made by line departments are screened by the Citizen Participation Committee. About 30 citizens are chosen for the committee. They monitor and evaluate the implementation process. They are free to make comments on budget allocation as well.
3. City Assembly
In the beginning stage, Anyang City Assembly, under a multiparty system, was very skeptical about the feasibility of the initiative. As the policies resulted in successful achievements, they finally turned out to be supportive.
4. NGOs and Ordinary Citizens
Some NGOs such as YMCA and the Federation for Environmental Protection are eager to participate in certain programs of the initiative. They financed, built and currently operate “the Citizen Solar Power Plant” where operation is monitored by smart devices. Some NGOs made voluntary investments in the citizen fund for smart healing contents.
5. Help from Other Governments
The Central Government and Prefecture Office financially support Anyang’s initiative. National Electronics and Telecommunication Research provides technological support to startups and ventures.
| 6. How was the strategy implemented and what resources were mobilized?
1. Financial Resources Come From Many Sources
Establishment and operation of the Smart Content Center is costly. The city made an outstanding proposal to the Ministry of Culture, winning a grant of $6 million USD a year for a three year period. This grant may be extended according to the evaluation result. The Prefecture Office matches the grant by providing $2 million USD a year to the Center. Anyang City itself allocates $2 million USD a year from its own budget. The Center can spend a total of $10 million USD on incubation and development of new applications.
Anyang City utilizes resources in the private sector. For purposes of developing smart healing services, it created a joint fund in 2012 along with private companies, venture capitals and individuals. The Private sector made an investment of $2 million USD. The fund will grow to $10 million in the foreseeable future.
Some NGOs made contributions to the construction of a pilot project such as “Citizen Solar Plant.” By doing so, they are now able to participate in the management and operation processes. The medium of participation is mostly smart devices.
2. Technical Support: Help from Outside and In-House
(1) Support from Outside
National Electronics and Telecommunication Research Center, or ETRI, is a world renowned research institute in the smart tech area. ETRI stations a branch unit called Technovation in the Smart Content Center. The unit transfers leading edge techniques to the start-ups and ventures.
The companies resident in the Center are able to receive help from outside organizations. For example, Anyang arranges the cooperative networks between developers for smart healing and expert groups such as Hanyang University Hospital or Doctor's Association for Dementia.
(2) Support from Inside
Most active support, however, comes from inside in the form of self-help. Application developers have a network meeting every Thursday. They share information and skills when they form consortia for new business opportunities.
3. Human Resources: Experts and Skilled Workers
The city recruited 24 experts from the private sector by 2013. Smart business, however, requires skillful workers as well as experts. To provide such high skilled labor sustainably, the city formed a consortium with a local college and the central government. This consortium is to spend 7.7 million USD over the period of 2013 to 2015. Yonsung University and other higher education institutions supply 80 to 100 college graduates every year to the Center.
| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
1. UIC Lowers Crime Rates: Robbery by 55.3%, Kidnapping by 63.6%, Burglary by 32.6%
The UIC monitors streets with 2,362 surveillance cameras, 218 traffic CCTVs, 81 intelligent traffic lights, and 271 terminals in bus stops. It decreased crime rates of robbery by 55.3%, kidnapping by 63.6%, and burglary by 32.6% in the years 2009 and 2010. Fraud not monitorable decreased by only 4.2% in the same period.
Though issues regarding privacy intrusion exist, overall, Anyang citizens were satisfied with the enhanced security conditions.
2. A Start-up Beats Apple at Bidding for Oxford University Press
“I-portfolio” is a start-up residing in the Smart Content Center. In 2012, the company was chosen as a platform provider for Oxford University Press, beating the Goliath competitor Apple. It collects a license fee of $10 million USD per year.
Companies supported by the government have intangible assets such as credibility and reliance. Oxford University Press decided to sign a contract with “i-portfolio” not only because it offered excellent technology but also because the company was strongly supported by Anyang City.
3. “Net-Casting” System: Intelligent Surveilling System to Predict Crimes
The UIC integrated the Traffic CCTV system with the Security CCTV system. When the system detects a sign of crime occurrence, it starts to apply the Net-Casting system. As a fisher casts his net, the UIC initiates surveillance activities through CCTVs.
In case the scene under surveillance matches a crime pattern, all CCTVs nearby focus on the case. Real time video files are transmitted to police stations and patrol. In 2010, 103 criminals were arrested at the scene. The greatest benefit of the system is crime prevention as potential criminals become aware of it.
The S.O.S.-App for protecting home returning women at night time is another application of this net-casting system.
4. Start-Ups Growing at a Surprising Rate
Puble-Studio sold an App-book to Rovio Entertainment of Angry Birds. Bison-Contents is backed by angel investors. Mcookie recorded number one in the sticker booth of Apple Appstore and ranked 1st in its category in Google Play. Plum, another start-up, recorded 50,000 cases of paid downloads in 2012. The sales volume of Night Worker exceeded $100,000 in March of 2013.
Companies in the Center participated in 2013 Communic Asia, the largest Asian Pacific Fair held in Singapore. Ten companies signed an export contract worth $2 million USD.
| 8. What were the most successful outputs and why was the initiative effective?
Anyang City has a three-tier monitoring and evaluation system. First, bureaucrats monitor project operators, mostly grantees of the initiative. Second, bureaucrats themselves are the target of performance evaluation. Third, the Citizen Participation Committee monitors and evaluates the implementation of the initiative.
1. Monitoring and Evaluation of the Grantees by bureaucrats
Most projects of this initiative are carried out by a grant system. Anyang city provides subsidies to start-ups and ventures, while the UIC is directly operated on the budget of the city.
Departments and agencies of Anyang monitor the grantee’s performance according to a pre-planned schedule. They pay the balance after evaluation of the grantee’s performance. If the grantee has not met the requirements, departments and agencies are able to order the grantee to make up.
2. Monitoring and Evaluation of the Bureaucrats: PPG on Constant Alert
The Korean government has a well defined evaluation system for public servants and the units of organization. The Balanced Score Cards system is an example.
As for the initiative, however, Anyang City is equipped with an additional monitoring and evaluation system. It is the special task force team, Policy Propulsion Group, or PPG. PPG closely monitors implementation on a daily and weekly basis. It is called a guard post on constant alert.
In addition to detecting the problems in the implementation process, it also proposes alternatives when necessary. In case additional resources are needed, PPG suggests reallocation of city budgets or draws funds from outside sources such as other governments or private companies.
3. Monitoring and Evaluation by Citizen Participation Committee
PPGs action is also monitored and evaluated by the Citizen Participation Committee. About 30 committee members monitor the implementation of the initiative from the perspective of outsiders or ordinary citizens.
They do not apply any specialized techniques of evaluation, but they present holistic opinions regarding the initiative, which may include changes in the priority among projects. The committee holds meetings quarterly.
| 9. What were the main obstacles encountered and how were they overcome?
1. Political Obstacles: City Assembly Becomes Partner after Heated Debates
In the early stage of the initiative, there were many opposing opinions in the City Assembly, for Anyang did not have prior experience in implementing such an ambitious plan. Many assembly persons casted doubts.
Ordinary citizens, however, strongly wanted innovative changes. The City Assembly finally decided to back the city’s movement after many rounds of heated debate.
2. Financial Obstacles: Audacious Attempt Succeeded
The establishment of the Smart Content Center required substantial amounts of financial resources. Anyang made an audacious attempt to get funded.
The city presented the comprehensive plan to the Ministry of Culture. It was a rare case in Korea for the local government to request multi-year support from the central government. Most such attempts were rejected. Exceptionally Anyang was able to secure funds from the Ministry of Culture, for the ministry was looking for a new model for the smart age.
Once Anyang won the grant from the central government, the Prefecture Office and private companies joined. They are now co-founders of the Smart Content Center.
3. Bureaucratic Obstacles: Experts and Dreamers Supplied
Skepticism was widespread among public servants in the early stage of the initiative. They lacked knowledge and skills required in the smart age. They were in need not only of experts but also of dreamers.
The city organized the Policy Propulsion Group which recruited experts from the private sector. The PPG created an atmosphere of confidence that Anyang could successfully implement the initiative if bureaucracy followed the guidelines of the PPG.
4. Technological Obstacles
The UIC has to process huge amounts of information at a very high speed. Anyang installed optical cables solely for the use of UIC in 2008. And the penetration rate of smart devices reaches about 87 percent in Anyang.