2014 incheon asian game smart sustainable mega sport event

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco ConfidentialPresentation_ID 1

2014 Incheon

2014 Incheon Asian Games differentiation, infrastructure operation/for-profit service model development proposal

Cisco Services APACMarch, 2011


Executive Summary

Differentiated services offering

1

For-profit model development

2

Sustainable operation plan

3


• Ultra high definition & borderless video conversation • Multi-language video translator

Differentiated services offering

1

Executive Summary

http://www.flickr.com/photos/cisco_pics/5506697146/

http://flickr.com/gp/cisco_pics/18eQ4A


• Maximization of post-AG stadium usage• Utilization of all the available tangible/intangible property • leverage of non-sports area

For-profit model development

2

Executive Summary


Sustainable operation plan

3

integratedmanagementinfrastructure

automated day/night

surveillance

integrated video management/

operation structure

facility management

DB interface

• operation efficiency enhancement• operation cost saving

Executive Summary


Contents1. Spread effect of mega sports event

2. Local public sports facilities operation

3. Overseas cases

4. Stadium operation & for-profit model plan




3. Overseas cases



Spread effect of mega sports event

social /cultural

area positive spread effect negative spread effect

• increased interest in local events & heightened local participation

• strengthened local tradition & value

• commercially oriented event distorting original purpose

physical • construction of new facilities

• local infrastructure improvement

• environmental degradation

• congestion

political

• heightened international recognition

on local value

• enhanced political value by residents/

government

• labor exploitation of local residents

• politically directed event distorting original purpose

commercial• Increased tourism activities

• Increased local investment & commercial

activities

• possible criticism from outside due to lack of event preparedness

economic • consumption increase, job creation• inflation / speculative investment in real-estate

psychological • strengthened community spirit • defensive attitude towards local citizens


1984 LA Olympic Games

USD 2.3 billion

1996Atlanta Olympic Games

USD 5.1 billion

2000Sydney Olympic Games

USD 6.5 billion

1988Seoul Olympic Games

USD 2.6 billion

• 2002 Korea-Japan World Cup: 4 trillion won of value added

• Image enhancement for hosting nation/city, Nation’s international reputation improvement

• Contribution to national/local development

Spread effect of mega sports event




3. Overseas cases



Facility Seoul Busan Daegu Incheon Gyeonggi Jeju

Track and field stadium 3 3 3 3 30 12Soccer field 56 15 12 9 75 20Hockey field 1 1 1 1 2

Baseball field 6 2 3 2 8 2Cycle stadium 1 1 1 1 1

Tennis court 48 3 10 4 84 4Korean wrestling stadium 1 1 1 1 3 1

Temp play ground 1,669 454 218 340 1,759 140Gym 88 11 13 11 80 18

Ball game gym 14 5 3 6 48 13Martial arts gym 4 2 4 1 2 1

Physical training gym 70 4 6 4 30 4Swimming pool 76 2 11 6 40 2Roller skate rink 14 9 1 6 13 1Shooting field 1 1 1

Traditional archery field 8 2 2 7 31 2Archery field 1 1 1 1 3

Horse-riding filed 1 2 1 Golf course 20 1 1

Rowing/canoe facility 1 1 Yacht facility 1 1

Ice rink 4 1 1 6

Domestic public sports facility operation status

It is a general term for a sports facility that has been built, operated and maintained with the budget funded by the central government , local government or public agency to encourage the general public to take part in sports activities in a proactive & sound manner.

What is public sports facility ?


IndexConstruc

t cost2004

revenue2004

spendingDifference

Seoul 203,300 11,759 6,248 5,511

Busan 226,818 655 2,743 -2,088

Daegu 283,600 256 3,448 -3,192

Incheon 328,218 1,723 4,470 -2,747

Kwangju 158,788 220 1,794 -1,574

Daejeon 121,700 416 1,530 -1,114

Ulsan 151,420 1,806 2,923 -1,117

Suwon 252,277 3,879 5,311 -1,432

Jeonju 136,875 560 1,888 -1,328

Seogwipo 112,500 290 742 -452

Total 1,975,491 21,564 31,079 -9,533

Domestic public sports facility operation status

Revenue/expense of public sports facilities in Korea

Operation of Sangam & Suwon stadiums

(unit: million won)

Sangam SuwonItem

\203.3 billion \252.2 billionTotal budget

2001 Dec. 2001 MayStadium construction

completion

Retail store, movie theater, shopping

mall, sports sauna, wedding hall and

wedding reception, restaurant ,

hospital, pharmacy and stores, etc.

Sports center, drive-in theater, open

area restaurant, museum, wedding

hall, Suwon temporary Paldal gu

office, Suwon broadcasting station

etc.

Retail vendor

130 18Number of facilities

25 ~ 30 thousand 2 thousandNumber of daily average visitors

Lease \7.3 billionAdmission fee/venue rental fee \5.7 billion

Lease \1.4 billionAdmission fee/

venue rental fee \5.7 billion

2003 revenue

Operation cost \7 billion

Operation cost \4 billion

expense

\6 billion in the black \1.9billion in the redbalance accounts




3. Overseas cases



Cases of post-event stadium usage

Calgary Olympic Games

• Saddle Dome foundation was established and its management committee consisting of city council members supports amateur sports with profits generated from year-round lease of facilities for concert, rodeo, circus, shopping mall, convention center & etc.• The government sold the rights of operation and management to CODA , improving community sports facilities and making profits.• opening/closing ceremony stadium: the business ownership of the stadium was transferred to Calgary university and facilities were repaired and remodeled to a football stadium, operating in the black.• Naskiska sky resort: It is popular as it offers various programs including winter sports& camping programs

The policy regarding the use of facilities after the Olympic Games was announced by holding ‘the international forum on Olympic stadiums build & operation plan.’

Beijing Olympic Games

• The swimming stadium is popular as citizen sports facility with various swimming programs, expanding the customer base to high-income earners.• The fitness club and banquet hall are run and various services are offered.• Due to popularity of the culture and sports center, a complex town equipped with culture, leisure & business facilities was built in a massive green area,

Yokohama Stadium • budget planning for citizen facilities to improve health of citizens• Average usage: 100 days per year


VIDEO

FOOD

MERCHANDISE

Immersive HD video… Everywhere

Custom PremiumFan Services

Extend the Experience

WELCOME

IT-enabled additional services

VIP Room operation


• information on products & foods available at in-stadium shops & restaurants

• foods & products ordering thru IP phone

• service improvement for luxury suite users with delivery service

Display #1

Display #2


VIP Room operation

• Luxury Suite(NY Yankees Stadium) deploy<live game broadcasting> <bullpen screen> <other stadiums’ game broadcasting>

Channel switching & food ordering

w/ Cisco IP phone

• control functions including channel switching & volume

adjusting thru IP phone’s touch panel

(diverse contents offering for luxury suite users)


NBA Star Yao Ming

NBA Star Tony Parker

NBA Legend Magic Johnson


Fan meeting thru TP




3. Overseas cases



Phase 1. Before & During Aisan Game

Phase 2. After Aisan Game

Why differentiated & sustainable operation model ?

Optimal operation infrastructure implementation & differentiated service strategies development1designing & building platform & infrastructure which enable smart services

Transition strategies development 2developing strategies in consideration of post-AG operation as well as the AG period operation. building service & infrastructure implementationstrategies for athletes’ village and stadiums

Sustainable operation strategies development3Ensuring sustainability of services for stadiums and athletes’ village thru green and Community Connect services

Eventcompletion


Connected Stadium

Connected Residence

• sharing Cisco’s video-enabled infrastructure & services

Smart Connected Stadium

Smart Connected Data Center

Smart Connected Residence

• saving operation costs with green services & solutions

S + CC

• saving build & operation costs with Cisco’s integrated operation center infrastructure

Connected Data Center

Smart Connected model

• delivering differentiated & video-enabled services & solutions at anywhere, at anytime & with any devices

• efficiently developing services & optimizing operation costs with platform sharing

• ensuring sustainability with unified service provider & infrastructure operator

sustainable stadium operation model

S+CC services deployment into athletes’ village

• offering differentiated services during the AG period

• optimizing operation costs & maximizing profit thru post-AG services

• giving differentiated image to athletes with S+CC services offering during the AG period

• heightening brand image with consistent services offering


COMMUNICATION

Phone

Data/Email/Fax

Call Center

1

2

3

4 Mobile

ENTERTAINMENT

Ticketing

Digital Video

Point-of-Sale

1

2

3

4 Event Promotions

OPERATIONS

Parking

Video Surveillance

Energy Management

1

2

3

Access Management4

Operation cost saving with integrated management


New revenue-generating model development

Various sports marketing activities

Attracting retail vendors

• retail stores, movie theater, fitness center & etc.

Selling stadium property naming rights

• Stadium naming rights• station naming rights

Leasing stadium for events

• attracting games & events• cultural events(concert, opera & etc.)

Offering for-citizen services

• sports & entertainment services• other services for revenue generation


20 slot19 slot18 slot17 slot16 slot15 slot14 slot13 slot12 slot10 slot9 slot8 slot7 slot6 slot5 slot4 slot3 slot2 slot1 slot

5분

/cy

cle

1 cycle

1~12 Cycle(1 hour BeforeGame)

13~48 Cycle(3 hoursDuring Game)

48~60 Cycle(1 hourAfter

Game)

Advertisement sale unit: Slot(15 seconds)

Advertisement during games(5 hours)

New revenue generation model

Advertisement profit from Digital Signage

Advertisement cycle of DMS (5 minutes)

Sponsored Zone screen(52” HD)Advertisement screen(52” HD)

A

B

C

D


Public(common) service

resources pool

Network as a Platform

Incheon IDC Private IDC (A) Private IDC (B)

Dispersed Cloud data centers operation

CAPEX saving with public/private DCs

Service request

Service use

Service fee payment

Service request approval

Service management

service fee charging

• server• storag

e• netwo

rk

• software• application• center facility

IT resources

Service

AG games operation

headquarters

Development/test

resources pool

Backupresources

pool

IT operationmanager

(IDC)


standard 1.“Future-oriented(2014) Network architecture design”

standard 2.

standard 3.

Redundancy available for fault tolerance Stable connection with stadium backbone DR center establishment: N/W architecture design

for business continuity Service continuity thru control room multiplexing

Optimal IP infrastructure design

CAPEX / OPEX saving

Considerations for IP N/W design

IP N/W design criteria

IP N/W Development

direction

Req. #1 Tech. Trend

convergedIT services

Req. #2 Mega IT Trend

Req. #3 Design Factor

1. Wired & wireless broadband network

2. converged services

3. Green by IT, Green of IT

1. Large-volume Geo, Information

2. Smart Phone, TV

3. Mobile, FMC

4. Virtualization

Structural features

1. resident & service features

2. stability

3. optimized operation

Wired backbone N/W capacity(ready for 40G, 100G) Wireless N/W preparation IPv6-ready devices deployment (IPV4 address

exhaustion in Jun. 2011)

“IP Network Convergence, Virtualization”

“Redundancy, 24x7 service continuity & stability”

implications Quadruple Play Service (QPS) over IP converged network, covering voice, video, data &FMC

Shared infrastructure thru virtualization for multi-tenant support & maximization of resource usage


Differentiated high-tech athletes’ village services

Advanced security system

Virtual Concierge

Multi-language Home N/W

service

High-definition Video

call/conference




Virtual Concierge


call/conference


service

http://www.flickr.com/photos/cisco_pics/5506697146/




call/conference

Virtual Concierge


service


http://flickr.com/gp/cisco_pics/18eQ4A


Cisco’s consulting on operation/for-profit models

efficient sta-dium opera-

tion & for-profit model devel-

opment

IT Knowl-odge

Case Study

Sports / Entertain-

ment

Expertise

• Leveraging Cisco’s vast knowledge database • Leading IT standardization / Deploying future

technologies & solutions• Driving future IT trend

• Developing optimal operation models based on

local/overseas stadium operation cases

(Yankee Stadium, Dallas Stadium & etc.)• Developing for-profit portfolio models by utilizing

IT

and designing feasible architecture • Yankee Stadium, Dallas Stadium & etc.

• Stadium solution (Stadium Vision)• Various references • Experienced human resources

• Joint operation & service business model

development with partners

• Experienced consultants

• TFT setup with personnel from relevant agencies• Consulting team setup with personnel from Cisco & partners



Financially self-sustaining stadium operation

strategies

• Developing customer service portfolio by leveraging IT technologies • Deploying IT technologies for operation cost minimization • Strengthening marketing activities for increased stadium usage

Typical revenue generation models

• Stadium lease for games• Long-term stadium lease for professional

baseball/soccer games • Lease of in-stadium retail stores• Fence advertisement

Additional revenue generation model

• Outdoor media advertisement with LED, DMS

& digital devices• Facility upgrade including VIP room(Skybox)• Kid keeper service, kids play room operation & etc.• Stadium lease for events including concert, opera & etc.• Additional services offering to increase lease fees for

in-stadium retail stores



Offer a consulting service to develop a cost-saving model with efficient operation and management on stadiums and athletes’ village after a successful 2014 Asian Games hosting

Case study on

stadium/athletes’ village

operation

Draft model

development

based on local characteristics

Model

confirmationIT deployment

for model realization

Phase 1 review scope Phase 2 support scope

① Case study on stadium operation after local/international games/events

② Case study on for-profit models

③ Case study on operation budget sources

Execu

tion

p

hase

Main

activities

① Draft model development based on local characteristics and case study

② Final short-list development based on review of various for-profit models

① Final model confirmation based on operation/service models selected

① High -level architecture drawing for realization of confirmed model

② Design of main components

③ Detailed operation scenario development

④ Additional funding plan


Thank you.

2014 incheon asian game smart sustainable mega sport event

Sports

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