In this week’s Everything Korea my thoughts again turn to discussing why some Korean businesses do well outside Korea, while others struggle.
A caveat is tied to last week’s episode where although Korea entrepreneurs have and continue to launch some amazing new startup concepts—few ever gain the stellar funding and success achieved by similar startups the US in the past or now with concepts like Periscope, Meerkat or my favorite Super.me.
Frankly what works well in Korea may not work well outside Korea and with regard to the Startup Model even work within Korea. Same thing goes for global brands, what works well in each respective country or region needs some if not substantial localization—localizations a catch phrase that everyone agrees to but few truly embrace.
In particular, I see with Korea brands looking outside Korea to often the same missteps re-occurring. In my recent case study “A Global Approach: For Korea Management Teams” I address many of the challenges. See the link below for a copy of the study.
So what are some steps in my opinion for 1) Korean brands already having a global footprint, or 2) brands that wish to expand outside Korea, or 3) domestic Korea startups, all need to take?
I’ll talk more on this in the next episode, but for a first step–embrace and immerse in the local culture, market norms and success model.
What is a poor idea is for an overseas team modeling practices after the Korea operations. This I know can be difficult–most Korean teams dispatched are most familiar with the Korean model, receive limited support to transition, or are subjected to pressure from their peers and seniors to limit the embracing of local norms over the mother company’s. The later situation a real concern.
Again in the next episode we’ll drill deeper to the core causes of the disconnects.
Oh one more thing… Those struggling with some of the challenges I’ve mentioned, or have issues within your organization that need to be addressed….I have blocked out my availability to chat and discuss…. Just go tohttp://www.meetme.so/southerton
The Korea Society looks at Songdo and their collaboration with Cisco in the informative and insightful presentation. I am a long time supporter of Songdo IBD and Gale International, the master developer.
Cisco has partnered with Sondgo, a city of the future on the west coast of South Korea. Together they share a vision for smart communities. This video series highlights that vision.
Found this in FT.com. Nice comments by Stan Gale of Gale International, too.
Aerotropolis
By Greg Lindsay
Published: February 25 2011 17:03 | Last updated: February 25 2011 17:03
Ten years ago, Stan Gale was a builder of New Jersey business parks. But in 2001 his fate began to change when he received a phone call from South Korea. The South Korean government had found Gale’s company on the internet, and they made him an offer everyone else had refused. The brief: Gale International would borrow $35bn from Korea’s banks, partner with its biggest steel company and use the money to build from scratch a city the size of downtown Boston – only taller and denser – on a muddy, man-made island in the Yellow Sea. When Gale arrived to see the site, it was miles of open water. He signed anyway.
The proposed settlement, New Songdo, isn’t so much a Korean city as a western one, floating offshore. It was chartered as an “international business district” – a hub for companies working in China. To make US expatriates feel at home, its malls are modelled on those in Beverly Hills, and Jack Nicklaus designed the golf course. But its most salient feature is shrouded in perpetual haze, opposite a 12km bridge. On the far side is Incheon International Airport, which opened in 2001 on reclaimed land and instantly became one of the world’s busiest hubs.
“[The Koreans] tracked us down, wanted us to build a city in the ocean, and no one else was interested. What was going on here?” Gale said. “Their vision scared everyone else away. It wasn’t until I saw the airport that I understood where they wanted to go with this.” The answer: to China. The sales pitch to prospective tenants is simple: move here and you’re only a two-hour flight away from Shanghai or Beijing. You’re four hours away at most from cities you’ve never heard of, such as Changsha, which happens to be larger than Atlanta or Singapore. Nearly one billion people are a day trip away.
“China alone needs 500 cities the size of New Songdo,” Gale told me, and he hopes to break ground on the next one in Chongqing sometime this year. How many will be umbilically connected to the nearest airport? “All of them.”
To the jaundiced western eye, New Songdo and its clones might appear to be fantasies left over from the Bubble. But dismissing them as the product of Asia’s infatuation with all things mega misses the carefully calibrated machinery underneath. It’s a machine the rest of us ignore at our peril as we enter the next phase of globalisation – one marked by the shift from west to east and the trade routes up for grabs in between. The model for cities such as New Songdo even has a name, which Stan Gale pronounced with a flourish: “It’s an aerotropolis.”
It isn’t his word. The man who defined it is John Kasarda, a professor at the University of North Carolina who has made a name for himself with his radical vision of the future: rather than banish airports to the edge of town and then do our best to avoid them, we will build this century’s cities around them. Why? Because people once chose to live in cities for the wealth of connections they offered socially, financially and intellectually. But in the era of globalisation, we choose cities that are drawing closer together themselves, linked by fibre-optic cables and jet aircraft. Stan Gale is simply taking this idea to its conclusion, building a network of instant cities joined by their airports.
Many aerotropoli will evolve out of the cities we already call home – only, their highways and byways will lead us to terminals instead of downtown. For instant cities such as New Songdo, Kasarda has drafted a set of blueprints replete with high-speed trains and six-lane highways connecting prefab neighbourhoods and business districts. They range in size from a few thousand residents to a few million. Aerotropoli designed according to Kasarda’s principles are already under way across China, India, the Middle East and Africa, and on the fringes of cities as desperate as Detroit and as old as Amsterdam. In Kasarda’s opinion, any city has the potential to be one, provided it is willing to build, demolish and rebuild around its airports at its tenants’ behest. The World Trade Center at Amsterdam’s Schiphol Airport boasts some of the highest office rents in the Netherlands. Detroit is borrowing its blueprints.
New Songdo is being built on reclaimed land in South Korea’s Yellow Sea, as an air hub for companies working in China. ‘China needs 500 cities this size,’ says its chief builder
Perhaps the purest example is Dubai, a city feverishly assembled, populated by highly stratified expatriates, and composed of enclaves that have less to do with each other than with like-minded communities thousands of miles away.
The idea of the aerotropolis represents the logic of globalisation made concrete in the form of cities. Whether we consider it to be good or simply inevitable, the global village holds these truths to be self-evident: that customers on the far side of the world may matter more than those next door; that the pace of business, and of life, will always move faster and cover more ground; and that we must pledge our allegiance if we want our iPhones, Amazon orders, Kenyan green beans and Valentine’s day roses at our doors tomorrow morning. If the airport is the mechanism making all of these things possible, Kasarda reasons, then everything else – our factories, offices, homes, schools – will be built accordingly. The aerotropolis, he promises, will be a new kind of city, one native to our era of instant gratification.
I first met Kasarda in his office, surrounded by model planes he had received as gifts from one foreign delegation or another. The only other place I’ve ever seen him in is an airport. He has flown more than three million miles in the past quarter of a century – and he is up in the air two months a year, flying far enough to circle the globe half a dozen times. Twenty years ago, Kasarda looked at the ascending trend lines of global trade and surmised that future growth depended on faster air travel. To that end, he devised a theory in which first factories then entire cities would form around greenfield airports, in order to wring a few extra hours from the day.
“Despite all the talk of the service economy, of healthcare and software as our national industries, the western world’s is still a goods economy,” Kasarda said. “A large and growing proportion of these goods move internationally, as a consequence of trade and modern supply chains. All of this passes through a physical ‘internet’, the network of hubs and planes for trading and transporting goods – and people – almost as quickly as the internet itself. And it’s arguably more important – the web can’t move your box from Amazon.”
The aerotropolis, Kasarda says, is the “urban incarnation of this physical internet; the primacy of air transport makes airports and their hinterlands the places to see how it functions – and to observe the consequences”. They may turn out to be mini-Manhattans like New Songdo or SimCities in the mould of Dubai – effectively an airline with an emirate attached – but they are the first cities in which what’s on the ground is beside the point.
. . .
Humanity is officially an urban species – more than half of us live in cities. The percentage is even higher in the developed world, but Africa and Asia are catching up. The number of city dwellers is expected to almost double by 2050 to more than six billion – our current global population. The number of megacities (those with a population of 10 million or more) will have increased from two in 1950 to 27 by 2025, housing 450 million people between them. China might well need 500 new cities the size of New Songdo, and another 100 cities of one million residents or more.
We have always chosen to live in cities for the wealth of networks they create – the elaborate webs of kinship and commerce. That promise hasn’t changed since the agora and acropolis, but the size and scope of cities have. Cities grew by shrinking the distances within and between them, using technology to expand their grids and cover more ground.
John Kasarda likens the history of cities to a rising tide of breaking waves. Ocean harbours were swept away by river ports, which yielded to railway terminals, which were in turn exploded by highways and suburbia. Transportation is destiny. The fifth wave is now here.
Joel Garreau, the futurist and author of Edge City, declared, “Cities are always created around whatever the state-of-the-art transportation device is at the time.” When the state of the art is shoe leather and donkeys, the result is the hilly paths of Jerusalem. When it’s men on horseback and sailing ships, it’s the ports of Lisbon, Hong Kong, or Boston, and the canals of Venice and Amsterdam. The birth of the railway produced Kansas City, Omaha, and the stockyards of Chicago. And the mass production of the Model T led first to Los Angeles and later to Levittown, Long Island.
Today, the modern combination on the ground is the car and internet, yielding Garreau’s “edge cities”, which are everywhere and nowhere within America, and have since cropped up in Bangalore and beyond. Canary Wharf, Delhi’s Gurgaon and the suburbs of northern Virginia more closely resemble each other than their neighbours. Soaring above them all are jet aircraft – first put into service 60 years ago – collapsing the distance between Dallas and Dubai as effortlessly as the internet nodes connecting them.
But as transport and communication costs fall, and movement and accessibility become easier, cities have become less dense and contiguous and grown more dispersed, networked, fluid. In the internet age, this fluidity promised that those of us who make our living with computers could live anywhere. No one has preached this vision more fervently than the technologist George Gilder, whose utopia of the “telecosm” and infinite bandwidth has us scattering back into the countryside to live like gentlemen farmers, with Facebook serving as the village green.
But total dispersal hasn’t come to pass, and it won’t, no matter how much bandwidth we’re able to route through our iPhones. In fact, the same technologies that were supposed to disaggregate us have only made concentration more useful. We’re becoming more urban at precisely the moment our outlook is growing more global. We keep an eye on the street and a mobile phone to our ears, somehow managing to be in both places at once. The same thing is happening at a macro level, too. The Los Angeles hinterlands, for example, aren’t California’s Central Valley or the high Mojave Desert but the outlands of Seoul, Hong Kong and Mexico City, connected via mobile phones, social networks and satellite offices. The product of the jet age and the internet age is our current instant age, simultaneously favouring both aggregation and dispersal.
This is where John Kasarda comes in. With the aerotropolis, he attempts to answer the question of what the cities of this age should look like. What will their shape and purpose be when the state of the art at the time of their birth is ubiquitous WiFi and jumbo jets? Will they resemble Dubai, which is busy reinventing itself as the Middle East’s entrepôt, Africa’s aerial gateway and a luxury shopping mecca for middle class Chinese? Or will they look more like converging cities of the Pearl River Delta, where a single factory (Foxconn’s) could leverage Hong Kong’s airport to supply every Apple iPad or iPhone in the world?
Implicit in such thinking is a zero-sum world of exponential population increase and cut-throat competition for resources and profits. Kasarda’s vision evokes everything we find terrifying about globalisation – a civilisation cast in quick-drying cement, packed with worker drones. But even if you accept his logic, you have to ask: who are these cities for? The companies that profit from marginally leaner operations? The autocratic leaders who are jockeying to land them? Or the planners, architects and sages given carte blanche to raise islands from oceans and plant tarmac in desert?
Will we consciously choose to live in cities built in globalisation’s image – machines for living linked in great chains? Kasarda believes that we will, that we should, and that we’ll suffer the consequences if we don’t, because these debates have already been settled (one way or another) in places like China and Dubai, which have staked everything on the global triumphing over the local.
China is building an aerotropolis wherever it deems strategic: as outposts in oil-rich Angola and Sudan and in the copper belt of Zambia; in Pakistan, to complement the deep-water port at Gwadar, and most of all in western China, where more than 100 new airports are under construction. The goal is to put one within driving distance of 80 per cent of its population by 2020.
The UN World Tourism Organisation expects the annual number of Chinese tourists abroad to triple by 2020 to 115 million; already, more are leaving to see the world than foreigners are arriving to see China. Where are they heading? I found one clue in Dubai recently, where my hotel was overrun with families toting shopping bags. Tourism from China to the United Arab Emirates has soared since the emirates landed on China’s “approved destination” list in autumn 2009. The number of Chinese visiting Dubai soared 57 per cent in the first half of last year, totalling 81,900 in all.
They’re heading next to the high street near you. Despite a decade’s worth of high oil prices and terrorism fears, we have never flown as far or in greater numbers than we do right now. As recently as 1999, Ryanair had no website, and it was impossible to take a non-stop flight from New York to New Delhi or Beijing. The world may or may not have flattened since then, but there’s a lot less changing planes.
In the end, we won’t stop flying, for the simple reason that quitting now would run counter to our human impulse to roam. Will you be the one to tell 100 million Chinese tourists (and another 100 million Indians) that they will have to stay home?
This is an edited extract from ‘Aerotropolis: The Way We’ll Live Next’, by John Kasarda and Greg Lindsay, published by Penguin, £14.99
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Flight of fancy?
Someone smart came up with the title of John Kasarda and Greg Lindsay’s book. Aerotropolis – The Way We’ll Live Next is an astute blend of the intriguing, the beguiling and the faintly menacing, writes Pilita Clark. But is it true? Are we really heading for a world where we build our cities around our airports instead of the other way round? That depends on who “we” are. And how we define an aerotropolis.
On his website (www.aerotropolis.com), John Kasarda, a US academic who has been putting the economic case for the concept for years, uses a diagram to explain how such a city would look. It shows an airport surrounded by clusters of air transport-related businesses, convention centres, exhibition halls, hotels, malls and homes. These are fed by “aerolanes” or “aerotrains”, pumping in passengers and goods.
By this definition, Schiphol airport, Dallas-Fort Worth, Dubai and many others already share aerotropolistic traits. Even Heathrow has a few. But Heathrow is also a good example of the limits to this vision. It has beenbanned from building a third runway and it took longer to obtain planning permission for terminal five than it took Beijing airport to build its vast new terminal three. The idea that approval would ever be given to flatten swathes of its surrounding suburbs to make way for an aerotropolis is impossible to imagine. The same can be said for dozens of the world’s best-known airports. And yet the model has been embraced in India, China, the Philippines and South Korea.
So if the idea of an aerotropolis is not the way you want to live next, relax if you live in a crowded part of North America or Europe. And stay away from emerging rivals hoping that airport cities will help them become the developed world of tomorrow.
By Don Southerton, Songdo IBD CityTalk Editor This video does an awesome job showcasing Songdo IBD –a smart connected community. Cisco, too, has embraced Songdo IBD and its potential.
In this second video, Dr. Jorge Nelson hosts an informative vodcast about International School Songdo’s 21st century model for education– a key aspect being smart city technology.
By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger
Songdo IBD’s master plan recognized that world class education was vital. In turn, International School Songdo (ISS) was built to set a new standard for education–embracing true 21st century pedagogy and Classroom 2.0 mindset. Today that vision is reality, the school and its staff sharing this vision with educators globally. In fact, the school is in the fore front of virtual/ web based learning–strongly supported by Cisco and Cisco Webex technology.
This new video, hosted by ISS headmaster Dr. Jorge Nelson, shares ISS’s vision.
By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger
Songdo IBD and Cisco are a great fit. I support both. This Economic Timesarticle shares “Why” Cisco is investing heavy in the project.
Technoholik: Can Delhi ever be an Incheon? 23 Oct 2009, 0544 hrs IST, Abhimanyu Radhakrishnan, ET Bureau
When the folks at Cisco called up last month, inviting me to cover a conference on ‘Sustainable Cities of the Future’ in Incheon, South Korea, I was a bit confused. Firstly, why in the world was a company that mainly makes routers and switches hosting an urban issues conference mainly for Mayoral delegations from around the world?
Secondly, why did they think Technoholik would be interested? Well, it seems that Cisco sees itself as an “infrastructure” company and they want to expand the definition of that word – which brings roads, bridges, buildings and electricity to mind – to include IT as a fundamental component. I was still skeptical, but when they assured me that there would actually be live demos, it seemed like it could make interesting viewing for our television show on ET NOW.
Cisco had chosen Seoul’s twin city as the showcase since Incheon was rebuilding itself for the 2014 Asian Games (it incidentally pipped Delhi in the final round of voting). On arriving at Incheon airport, which serves as Seoul’s international airport as well, my mind began to race. How did the city that I had just arrived from, even think that it stood a chance?
The already modern city of Incheon wasn’t just upgrading – it was building an entire new district called Songdo , largely reclaimed from the sea, as part of a new Incheon Free Economic Zone (IFEZ) to take advantage of its imminent fame as Asian Games host.
The advantage of building from scratch of course, is that they can incorporate the kind of futuristic tech that folks like Cisco are hoping will be a part of every major city in the near future. We’re not talking about flying cars. But if your traffic lights and electric grid are on a network, while your automobile number plates have smart tags embedded, cities can save power by switching off street lights when no cars are on certain parts of the road. Plumbing and gas lines can be maintained better with sensors while energy consumption can be monitored and optimised .
Lets take buildings as another example. At the construction stage itself along with laying ducts for electricity and gas, builders of the future will lay network cables and sensors into the steel and concrete itself. One such developer in Songdo, GALE International , actually had a ‘wired’ building up and running, which was entirely IP-enabled .
The resident could control every light switch, door, security camera, window shade and appliance from a set of touchscreen panels in the house. This wasn’t just for convenience – the main draw was the ability to see how much energy the apartment was consuming (and more importantly , wasting) so that adjustments could be made by allowing natural light and heat using window shades, switching off parts of the central AC, and turning off unused power sources. This was being done both for individual dwellings and for common areas of the building.
The “media room” of course had a videoconferencing unit (Cisco’s high-end “TelePresence” system, what else!) built into the large-screen home theatre. The interesting thing was that one could access various services via the large LCD TV in a sort of “municipal app store” way. One could dial in and videochat with the local police department , the school, civic services, supermarkets or just browse the interactive options they offered.
Cisco in fact hopes to convince cities that such an approach could actually generate additional revenue apart from providing basic services more efficiently. You can see this futuristic building and some more examples of urban tech from Incheon on the Technoholik show this weekend! In fact my two days in Incheon seemed even more of a mirage of sorts, these past few weeks, as I scanned the papers and our lack of preparedness for the Commonwealth Games dominated the headlines. But a glimmer of hope came from one of those headlines when I read that Sam Pitroda had been appointed advisor of Cabinet Rank to the Prime Minister on, get this, Infrastructure, Innovation and Information! Our wired future hopefully, ain’t that far away!
Classroom 2.0 Virtual Q & A (ISS Director of Curriculum James Kelly)
By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger
Songdo IBD’s vision for the future includes intergrating people and technology. Recently International School Songdo educators benefitted from Cisco Webex technology. Conducted by Bridging Culture Worldwide CEO Don Southerton an interactive virtual classroom ( Classroom 2.0) workshop discussed Korean eduction and its strong ties to the workplace. Following a short lecture, Southerton and the group of veteran educators engaged in virtual Q & A.
By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger Songdo IBD continues to draw global attention. This recent Forbes magazine article points out the strong technology partnerships (CISCO, UT, and 3M) Gale International and the Songdo IBD project have attracted.
Very Smart Cities by Elizabeth Woyke, SONGDO, SOUTH KOREA – John B. Hynes III got the jitters when he first spied the mudflats of Songdo, South Korea, in June 2001. How would he transform the expanse of muck into a smart urban center with an integrated network of utility, transportation, real estate and recreation systems?
Eight years and 82 globe-crossing flights later, Hynes is far more assured about Songdo’s prospects. The man-made island, 40 miles southwest of Seoul, is now dotted with more than 100 buildings, including a 7,800-person apartment complex, a massive convention center and a Sheraton hotel.
Hynes’ employer, New York-based real estate developer Gale International, estimates the 1,500-acre city is 40% underway. Completion is slated for 2014. The cost: $35 billion, making it perhaps the world’s largest private real estate venture in history.
Songdo’s backers, which include Gale, Morgan Stanley and Korean steelmaker Posco, are betting the city can become a northeast Asia trade hub, linking nearby Shanghai and Tokyo. It will also be a model for a new Gale project, Meixi Lake, to be built in China’s Hunan Province starting later this year. Both cities will be “smart, sustainable and technologically ambitious,” says company Chairman Stanley C. Gale.
To conform to the U.S. Green Building Council’s energy-efficient LEED standards, Songdo buildings are incorporating special window glazing and ventilated double facades. Greywater and rain will be collected for irrigation and use in cooling towers. A network of underground pneumatic pipes will move solid waste, reducing the need for garbage trucks.
Songdo is also a petri dish for green transportation schemes. Water taxis already zip along the city’s seawater canals. Soon, a citywide bike rental service modeled on Paris’ Velibre system and a car-share system will be added. Buses powered by fuel-cells are expected within the next two to three years.
With its more than 40% green space, including a $220 million park, the city is designed to feel as airy as Vancouver. (Gale estimates Songdo will eventually house 65,000 residents and 300,000 workers.) Hynes is particularly proud of the park, which is dubbed Central Park after the New York City landmark. “Convincing the government and our partners that 100 acres of prime land should be reserved for a park was a tough sell,” he notes.
Meixi Lake will be helmed by the same architects–Kohn Pedersen Fox Associates and Arup–and follow a similar philosophy, but with a 400-acre lake instead of a park.
Data networks developed by Cisco are key to both projects. The company plans to deploy video networking technology and energy management software tools city-wide and meld municipal systems, such as education, health care, transportation and hospitality into a common network. Wim Elfrink, Cisco’s chief globalization officer, says Cisco has identified 20 services that could be linked, but will start with six or seven. The company declined to specify its investment in Songdo, but says it has committed $2 billion to South Korean projects over the next three to five years.
Residents will be able to chat with their children’s teachers, consult doctors and apply for city permits and licenses via flat screen monitors in their apartments. Buildings will be intelligent enough to guide cars to available parking spots and queue up elevators as people approach. Hotels will recognize regular guests and automatically adjust room system settings.
The projects leverage Cisco’s earlier work with schools, stadiums and utility grids. “All our expertise is coming together in Songdo,” says Elfrink. Like Gale, Cisco views Songdo as a model it can replicate around the world. It plans to build a global center for “intelligent urbanization” in Songdo and work on 10 similar projects in places like India and Saudi Arabia over the next two years. “It’s an adjacent business we expect a lot from,” says Elfrink.
United Technologies and 3M are also providing technology to Songdo and Meixi Lake. 3M is making digital signs and “stick-on film” to be used throughout both cities. UTC is providing energy-saving elevators and water-cooled air conditioning units designed to cut energy use by 20%.
Despite all the talent involved, building Songdo has hardly been a smooth path. As a city designed and constructed with private financing by a foreign company, Songdo has few precedents. Tying together people’s home, work and civic lives online has required new regulations. “This is an entirely new industry,” says Cisco’s Elfrink. “We have new questions to answer.”
Permit delays pushed the opening of Songdo’s flagship commercial building, the $500 million Northeast Asia Trade Tower, from December to late summer 2010. Gale says the building’s mixed-use nature–a combination of retail, commercial and residential space that is unusual in Korea–was the main reason for the hold-up and that all necessary permits have now been obtained.
Gale also tussled with the Korean government over a rule that the majority of students in Songdo’s International School be non-Korean–a challenge when most current Songdo residents are Korean nationals. Gale says the issue has been resolved and the school will open this September for grades kindergarten through six.
Gale is currently focusing on luring corporations to Songdo under the theory that people follow jobs. The project will be a success, says Hynes, when Songdo is full and the areas around it are “buzzing.”
Hynes isn’t expecting to see a return on Gale’s billions for two to three years. First he has to finish covering the mudflats.