sustainable mega sports events by IT technology

1. 2014
Incheon
2014 Incheon Asian Games differentiation, infrastructure
operation/for-profit service model development proposal
Cisco Services APAC
March, 2011
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2. Executive Summary
1
2
3
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3. Executive Summary
1
• Ultra high definition & borderless video conversation
• Multi-language video translator
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4. Executive Summary
2
• Maximization of post-AG stadium usage
•Utilization of all the available tangible/intangible property
• leverage of non-sports area
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5. Executive Summary
3
facility integrated video
integrated automated
management management/
management day/night
DB operation
infrastructure surveillance
interface structure
• operation efficiency enhancement
• operation cost saving
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6. Contents
1. Spread effect of mega sports event
2. Local public sports facilities operation
3. Overseas cases
4. Stadium operation & for-profit model plan
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7. Contents
1. Spread effect of mega sports event
2. Local public sports facilities operation
3. Overseas cases
4. Stadium operation & for-profit model plan
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8. Spread effect of mega sports event
area positive spread effect negative spread effect
social/cultural • increased interest in local events & • commercially oriented event distorting original
heightened local participation purpose
• strengthened local tradition & value
• construction of new facilities • environmental degradation
physical
• local infrastructure improvement • congestion
• heightened international recognition • labor exploitation of local residents
on local value
political • politically directed event distorting original purpose
• enhanced political value by residents/
government
• Increased tourism activities • possible criticism from outside due to lack of event
commercial preparedness
• Increased local investment & commercial
activities
• inflation/ speculative investment in real-estate
economic • consumption increase, job creation
psychological • strengthened community spirit • defensive attitude towards local citizens
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9. Spread effect of mega sports event
USD 6.5 billion
2000
Sydney Olympic Games
USD 5.1 billion
1996
Atlanta Olympic Games
USD 2.6 billion
1988
Seoul Olympic Games
USD 2.3 billion
1984
LA Olympic Games
• 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
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10. Contents
1. Spread effect of mega sports event
2. Local public sports facilities operation
3. Overseas cases
4. Stadium operation & for-profit model plan
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11. Domestic public sports facility operation status
It is a general term for a sports facility that has been built, operated and
What is public sports maintained with the budget funded by the central government , local government
facility ? or public agency to encourage the general public to take part in sports activities
in a proactive & sound manner.
Facility Seoul Busan Daegu Incheon Gyeonggi Jeju
Track and field stadium 3 3 3 3 30 12
Soccer field 56 15 12 9 75 20
Hockey field 1 1 1 1 2
Baseball field 6 2 3 2 8 2
Cycle stadium 1 1 1 1 1
Tennis court 48 3 10 4 84 4
Korean wrestling stadium 1 1 1 1 3 1
Temp play ground 1,669 454 218 340 1,759 140
Gym 88 11 13 11 80 18
Ball game gym 14 5 3 6 48 13
Martial arts gym 4 2 4 1 2 1
Physical training gym 70 4 6 4 30 4
Swimming pool 76 2 11 6 40 2
Roller skate rink 14 9 1 6 13 1
Shooting field 1 1 1
Traditional archery field 8 2 2 7 31 2
Archery 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
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12. Domestic public sports facility operation status
Revenue/expense of public sports facilities Operation of Sangam & Suwon
in Korea stadiums
(unit:millionwon)
Construc 2004 2004
Index Difference Sangam Item Suwon
t cost revenue spending
Seoul 203,300 11,759 6,248 5,511 Total budget
203.3 billion 252.2 billion
Busan 226,818 655 2,743 -2,088 Stadium construction
2001 Dec. 2001 May
completion
Daegu 283,600 256 3,448 -3,192 Retail store, movie theater, Sports center, drive-in theater, open
shopping mall, sports sauna, area restaurant, museum, wedding
Incheon 328,218 1,723 4,470 -2,747 Retail vendor
wedding hallandwedding hall, Suwon temporary Paldalgu
reception, restaurant , hospital, office,Suwon broadcastingstation etc.
Kwangju 158,788 220 1,794 -1,574
pharmacy and stores, etc.
130 Number of 18
Daejeon 121,700 416 1,530 -1,114 facilities
25 ~ 30 thousand Number of daily 2 thousand
Ulsan 151,420 1,806 2,923 -1,117
average visitors
Suwon 252,277 3,879 5,311 -1,432 Lease 7.3 billion Lease 1.4 billion
Admission fee/venue 2003 revenue Admission fee/venue
Jeonju 136,875 560 1,888 -1,328 rental fee 5.7 billion rental fee 5.7 billion
Operation cost expense Operation cost
Seogwipo 112,500 290 742 -452 7 billion 4 billion
6 billion in the black balance 1.9billion in the red
Total 1,975,491 21,564 31,079 -9,533 accounts
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13. Contents
1. Spread effect of mega sports event
2. Local public sports facilities operation
3. Overseas cases
4. Stadium operation & for-profit model plan
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14. Cases of post-event stadium usage
• Saddle Dome foundation was established and its management committee
Calgary Olympic Games
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
Beijing Olympic Games
by holding ‘the international forum on Olympic stadiums build & operation plan.’
•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
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15. IT-enabled additional services
VIP Room operation
WELCOME
VIDEO
FOOD
MERCHANDISE
Immersive HD video… Custom Premium Extend the Experience
Everywhere Fan Services
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16. IT-enabled additional services
VIP Room operation
• Luxury Suite(NY Yankees Stadium) deploy
Display #1 <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)
Display #2 • 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
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17. IT-enabled additional services
Fan meeting thru TP
NBA Star Tony Parker
NBA Star Yao Ming
NBA Legend Magic Johnson
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18. Contents
1. Spread effect of mega sports event
2. Local public sports facilities operation
3. Overseas cases
4. Stadium operation & for-profit model plan
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19. Why differentiated & sustainable operation model ?
Event
completion
Phase 1. Phase 2.
Before & During Aisan Game After Aisan Game
Optimal operation infrastructure implementation
1 & differentiated service strategies development
designing & building platform
3 Sustainable operation strategies development
Ensuring sustainability of services for
& infrastructure which enable smart services stadiums and athletes’ village thru green
and Community Connect services
2 Transition strategies development
developing strategies in consideration of
post-AG operation as well as the AG period operation.
building service & infrastructure implementation
strategies for athletes’ village and stadiums
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20. Smart Connected model
Smart Connected Stadium
• saving operation costs with green
sustainable stadium services & solutions
operation model
• delivering differentiated & video-enabled
services & solutions at anywhere, at
• offering differentiated services Connected anytime & with any devices
during the AG period Stadium
• optimizing operation costs & Smart Connected Data Center
maximizing profit thru post-AG Connected
services Data Center • sharing Cisco’s video-enabled
infrastructure & services
S + CC • efficiently developing services &
S+CC services optimizing operation costs with platform
deployment sharing
into athletes’ village Connected
Residence
• giving differentiated image to Smart Connected Residence
athletes with S+CC services • saving build & operation costs with
offering during the AG period Cisco’s integrated operation center
• heightening brand image with infrastructure
consistent services offering • ensuring sustainability with unified service
provider & infrastructure operator
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21. Operation cost saving with integrated management
COMMUNICATION ENTERTAINMENT OPERATIONS
1 Phone 1 Ticketing 1 Parking
2 Data/Email/Fax 2 Digital Video 2 Video Surveillance
3 Call Center 3 Point-of-Sale 3 Energy Management
4 Mobile 4 Event Promotions 4 Access Management
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22. New revenue-generating model development
Various sports marketing activities
Selling stadium property naming rights Attracting retail vendors
• Stadium naming rights • retail stores, movie theater, fitness center & etc.
• station naming rights
Leasing stadium for events Offering for-citizen services
• attracting games & events • sports & entertainment services
• cultural events(concert, opera & etc.) • other services for revenue generation
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23. New revenue generation model
Advertisement profit from Digital Signage
1 cycle
Advertisement
A C sale unit: Slot
(15 seconds)
1~12 Cycle
(1 hour
Before
Game)
B 1 slot
2 slot
3 slot
4 slot
5 slot
6 slot
7 slot
8 slot
5분/cycle
9 slot
10 slot
12 slot
13~48 Cycle
D 13 slot
14 slot
15 slot
16 slot
17 slot
(3 hours
During
Game)
18 slot
19 slot
20 slot
Advertisement cycle of DMS
Advertisement (5 minutes)
Sponsored Zone screen(52” HD) screen(52” HD)
48~60 Cycle
(1 hour
After
Game)
Advertisement during games
(5 hours)
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24. Dispersed Cloud data centers operation
CAPEX saving with public/private DCs
Development/
Public(common) test
service resources pool
resources pool
IT operation
AG games Backup manager
operation resources (IDC)
headquarters IT resources pool
•server •software
Service request •storage •application Service request approval
•network •centerfacility
Service use Service management
Service
Service fee payment service fee charging
Network as a Platform
IncheonIDC Private IDC (A) PrivateIDC (B)
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25. Optimal IP infrastructure design
CAPEX / OPEX saving
Considerations for IP IP N/W design
N/W design criteria
Req. #1 Tech. Trend
“Future-oriented(2014) Network
1. Wired & wireless broadband standard1.
IP N/W network architecture design”
Development  Wired backbone N/W capacity(ready for 40G, 100G)
2. converged services
direction  Wireless N/W preparation
 IPv6-ready devices deployment (IPV4 address
3. Green by IT, Green of IT
exhaustion in Jun. 2011)
Req. #2 Mega IT Trend
converged 1. Large-volume Geo, Information standard 2. “IP Network Convergence, Virtualization”
ITservices
2. Smart Phone, TV implications  Quadruple Play Service (QPS) over IP converged
network, covering voice, video, data &FMC
3. Mobile, FMC  Shared infrastructure thru virtualization for multi-tenant
support & maximization of resource usage
4. Virtualization
Req. #3 Design Factor
standard3. “Redundancy, 24x7 service continuity &
stability”
1. resident & service features
Structural  Redundancy available for fault tolerance
features  Stable connection with stadium backbone
2. stability  DR center establishment: N/W architecture design
for business continuity
3. optimized operation  Service continuity thru control room multiplexing
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26. Differentiated high-tech athletes’ village services
Advanced security Multi-language High-definition
Virtual
system Concierge Home N/W Video
service call/conference
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27. Differentiated high-tech athletes’ village services
Multi-language High-definition
Advanced security Virtual
Home N/W Video
system Concierge
service call/conference
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28. Differentiated high-tech athletes’ village services
Advanced security Multi-language High-definition
Virtual
system Concierge Home N/W Video
service call/conference
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29. Presentation_ID © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29

30. Cisco’s consulting on operation/for-profit models
• Developing optimal operation models based on
• Leveraging Cisco’s vast knowledge database
local/overseas stadium operation cases
• Leading IT standardization / Deploying future
(Yankee Stadium, Dallas Stadium & etc.)
technologies & solutions
•Developing for-profit portfolio models by utilizing IT
• Driving future IT trend
and designing feasible architecture
•Yankee Stadium, Dallas Stadium & etc.
• Joint operation &service business model development
withpartners
• Experienced consultants • Stadium solution (Stadium Vision)
• Various references
• Experienced human resources
• TFT setup with personnel from relevant agencies
• Consulting team setup with personnel from Cisco & partners
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31. Cisco’s consulting on operation/for-profit models
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 Additional revenue
generation models generation model
• Stadium lease for games • Outdoor media advertisement with LED, DMS
• Long-term stadium lease for professional & digital devices
baseball/soccer games • Facility upgrade including VIP room(Skybox)
• Lease of in-stadium retail stores • Kid keeper service, kids play room operation & etc.
• Fence advertisement • Stadium lease for events including concert, opera & etc.
• Additional services offering to increase lease fees for
in-stadium retail stores
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32. Cisco’s consulting on operation/for-profit models
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
Phase 1 review scope Phase 2 support scope
Execution
phase
Case study on Draft model Model IT deployment
stadium/athletes’village development confirmation for model realization
operation based on local characteristics
① Draft model ① Final model ① High -level architecture
activities
① Case studyonstadium development based confirmation based on drawing for realization of
Main
operationafterlocal/international on local operation/service confirmed model
games/events characteristics and models selected
case study ② Design of main
② Casestudy onfor-profit models components
③ Casestudy onoperation ② Final short-list
budgetsources development based ③ Detailed operation
on review of various scenario development
for-profit models
④ Additional funding plan
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33. Thank you.
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