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FOUR PLATFORMS FOR INTELLIGENT CITIES: LINKING VIRTUAL SPACES AND COLLABORATIVE INNOVATION* N. Komninos, I. Passas, P. Tarani, P. Tsarchopoulos URENIO Research Unit, Aristotle University of Thessaloniki, Greece www.urenio.org
Two fundamental components of intelligent cities are: • The system of innovation (local, regional, sectoral in the case of industrial districts), which drives the development of innovations inside the organisations composing the system (companies, R&D centres, intermediaries, incubators, etc.), and • The digital spaces, tools and applications for knowledge and innovation management, which facilitate communication, data storing and retrieval, knowledge transfer, cooperative product development, and product promotion.
Keywords: intelligent cities; virtual spaces; IT platforms; innovation; knowledge management.
Abstract The paper mainly looks at the digital dimension of intelligent cities. It starts from the concept of intelligent cities as territories that link human, collective and artificial intelligence, and describes four IT platforms that sustain the knowledge functions of these cities. The platforms facilitate operations in the fields of strategic intelligence, technology dissemination, new product development, and product promotion. These are fundamental innovation processes based on the skills of the population of the cities, the institutions involved in knowledge and innovation creation, and IT tools for communication and learning. The last section of the paper examines the way platforms and the associated concepts of integration may be used to design intelligent communities and cities.
In the making of intelligent cities two planning paradigms compete (cybercities vs. intelligent communities) that attach different weightings to the aforementioned components of intelligent cities. Cybercities consider that the main challenge lies in the level of digital networking, human-machine communication, sensors, intelligent agents, and other technologies for automation in the information collection, processing, and dissemination. Intelligent communities, on the contrary, understand intelligent cities as a combination of human innovativeness and machine intelligence, considering that the critical factors are at the level of cooperation for innovation and the ICT tools facilitating this cooperation. The challenges are related to innovation capabilities and skills for information intelligence, technology absorption, and innovation development, facilitated and enhanced by digital spaces and tools.
1. Intelligent cities Intelligent cities are at the crossroads of two major traditions in contemporary thinking about urban development and planning: on the one hand, we have the discussion on innovative environments (communities, clusters, districts, systems), which asserts that innovation is created within environments affluent in information, knowledge flows, human skills, and funding; and on the other hand, the digital representations of the city and the making of virtual community spaces and e-cities acting as facilitators of urban activities and functions.
Thus the concept of ‘intelligent city’ describes a territory: • with developed knowledge-intensive activities or clusters of such activities; • with embedded routines of social co-operation allowing knowledge and know-how to be acquired and adapted; • with a developed communication infrastructure, digital spaces, and online knowledge and innovation management tools; and • with a proven ability to innovate, manage and resolve problems that appear for the first time, since the capacity to innovate and to manage uncertainty are the critical factors for measuring intelligence [2].
The terms intelligent cities / smart cities are used to characterise territories where the local system of innovation is supported and enhanced by digital networks and online services [1]. Using information and communication technologies and electronic tools and services the system of innovation within a territory is enhanced in terms of networking, reach, and efficiency. The city gains in innovation capability, which is translated into competitiveness and wealth.
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2. Three levels of an intelligent city – three intelligent agents, case-based reasoning, game theory, fuzzy logic [6]. dimensions of intelligence At this level, machine intelligence predominates, which makes use of the public system and infrastructure for digital communication, public digital spaces, content, and online tools available to the population of the community.
Understanding intelligent cities as multilevel systems of innovation integrating knowledge-based activities, institutions for innovation, online communication, and knowledge management tools is a prerequisite for describing the structure of these cities.
The intelligence of the city lays in the integration of these three levels I, II, and III: in the potential of the city to integrate human skills, innovation institutions, and knowledge management tools. This is a key challenge in the design of intelligent cities: how to build bridges and link the aforementioned dimensions of intelligence: human, collective, artificial; because none of them alone can guarantee the creation of truly intelligent environments.
The simplest configuration of an intelligent city corresponds to a territory created by the superimposition of three levels or spaces (physical, institutional, and digital) in which innovation processes take place. From this perspective, the city is the environment, the container of innovation. Innovation is the content, which remains unpredictable and volatile. Level I: This is the basic level of people and knowledgeintensive activities of the city. At this level, innovation ability is based on human skills, direct communication and cooperation of people and organisations within the community (cluster). Here the space is physical, and intelligence in producing innovation is predominantly human. Main assets are human skills, human ingenuity, and creativity. This dimension is described by Florida as a ‘creative city’, gathering the values and desires of the ‘new creative class’ made by knowledge and talented people, scientists, artists, entrepreneurs, venture capitalists and other creative people, which have an enormous impact on determining how the workplace is organised, the prosperity potential of the companies, and whether cities thrive or wither [3].
3. Digital platforms and online tools Research work at URENIO over recent years has led to the development of a series of digital platforms and tools which offer solutions to the problem of integrating different forms of intelligence described above. Fig. 1: Intelligent City Platforms Source: http://www.urenio.org/platforms/index.html
Level II: The second level contains the institutional mechanisms and organisations that make innovation possible. Institutions regulating IPR, spin-off creation, technology transfer and licensing, joint product development, innovation financing are preconditions of innovation; as important as the human skills referred to in level I. Intelligence at this level is predominantly social and collective. It regulates how a collective effort to promote innovation is organised and how its benefits are distributed within the community. This dimension is dealt with in the literature about intellectual capital, social capital, and collective intelligence, which describes how relations of trust, reciprocity, shared norms and institutions provide a relational infrastructure for collective action that facilitates cooperation within and among groups [4], [5]. The concept behind the platforms is to create digital spaces adapted to fundamental processes of innovation and skills enhancement. Such processes are those of strategic intelligence, technology absorption, joint new product development, product promotion and marketing, and new company creation. For each of them a separate platform has been developed containing information management tools, AI applications for alert, search, classification of information, processing, and dissemination of information. The platforms correspond to level III of the aforementioned classification of
Level III: The digital tools and spaces for communication and innovation are included in this third level. Such tools offer an intelligent virtual environment with mainly webbased application in various fields (information management, e-learning, e-commerce, e-government, epromotion, e-tools, etc.) enhanced by AI technologies. AI and advanced information technologies on the web enable functions quasi-similar to human intelligence to be performed, such as comparing, selecting, informing, and learning. Several AI technologies may be used to this end:
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capabilities, but are designed characteristics of levels I and II.
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(experts, contractors, suppliers’ news, research centres). The watch services are designed and implemented on a per sector basis. Data and information feed a portal that can host and present watch information for numerous sectors.
the
4. Four platforms for intelligent cities
The second component focuses on the analysis of information and data. The main analysis tool on the SI Platform is benchmarking. Benchmarking of different fields of data such as industry sectors, commodities and markets, internal enterprise numerical data, communities and cities and regional performance can assist the enterprise and provide structured information which leads to better performance. The data analysed are transformed into structured reports and sent to recipients.
4.1 Strategic intelligence Strategic intelligence is the process of gathering and utilising information for business and development purposes. The term was first used by Gartner and popularised by analyst Howard Dresner. It describes the process of turning data into information and then into knowledge. The intelligence is claimed to be more useful to the user as it passes through each step. BI is the art of wading through tons of data overload, sieving through data and presenting information - both internal (from operational systems) and external (market intelligence) on which management can act or build strategies.
Fig. 2: SIP structure
Information is typically obtained about the activities in a company’s value chain. The goal of those activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin. Business intelligence (BI) is carried out to gain sustainable competitive advantage, and is a valuable core competence in many instances. Every business intelligence system has a specific goal, which is derived from an organisational goal or from the vision statement. The Strategic Intelligence Platform (SIP) developed by URENIO supports both the needs of individual companies, as well as needs of industry sectors and clusters. The Platform is structured according to usual strategic intelligence principles, including data collection, data analysis, and data dissemination modules. All the modules are based on a knowledge model that is monitored by a relational database, which forms the core of the Platform. The database is loaded with data and information semi-automatically. The agents are actually tools that support the operation of data collection and evaluation. It is proposed in future versions of the Platform the latest available agent technologies be utilised and the level of automation in the information collection module be increased.
These two core components are implemented via a set of tools, including a portal for market and technology watch, a data miner that consolidates different sources of information, a benchmarking application, and a tool to collect feedback from users regarding the importance and value of the information provided. The information and intelligence generated is disseminated via newsletters and confidential company reports. Potential users of the SI Platform are companies on the one hand, and on the other organisations managing and promoting industries, clusters, and business associations. Examples of potential users are chambers of industry and commerce, industry sectoral associations, cluster managing authorities, and the development authorities of cities and regions. More generally, users are those organisations that consider market and technology watch and the systematic follow-up of emerging trends in different industry sectors as an important component for their activity and competitiveness.
The knowledge processing model of the SIP has two core components. The first focuses on collecting, evaluating, and storing data. The data relate to market and technology watch issues, in the fields of: (1) innovation (R&D news, new product / technology announcement, patents, expos, regulation and standards, technical files), (2) market opportunities (market news, offers / calls for tender, market trends / futures, consumer preferences / societal trends, price watch), (3) funding opportunities (funding news, VCs – Business Angels, interest rate watch), (4) competition / competitors (sectoral studies and reports, main companies in the sector, competitor’s practices, contract announcement, financial performance of competitors, stock market watch), and (5) resources
Actually, the SIP is under implementation for the ICT cluster of Northern Greece.
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accomplish tasks such as new product development, spinoff company creation, IP management, management of quality, etc.
4.2 Exploitation of R&D / technology transfer The Platform for R&D exploitation and technology transfer (RETT) serves as a hub for connecting innovation and technology-demanding companies with organisations capable of delivering R&D solutions. It offers the necessary aggregation that facilitates the dissemination, marketing, and promotion of R&D services. Online tools are also used to provide guidance and support during different phases of technology exploitation, such as licensing, technology transfer, spin-off creation, etc.
Module 3 - Online collaboration: Collaboration between academia and businesses is achieved through the use of two online communication tools: a technology-matching tool and a discussion forum. Both create a digital space where entrepreneurs, SMEs, and public organisations can post their technology needs which are then automatically communicated to the closest technology provider in order to open dialogue and find a solution.
The creation of the RETT Platform keeps pace with a fundamental change occurring in how companies innovate and create value. Until the past few years, innovation occurred inside a company and was protected through patents, trademarks, and copyrights. However, as science and technology evolve at great speed and delve into ever more complex domains, innovation increasingly depends on dense networks of public and private participants and large pools of IP that routinely combine to create end products [7]. Technology transfer is primarily viewed as a collaborative activity occurring within networks of formal and informal relationships between universities and firms [8].
The platform has been developed in close co-operation with R&D providers. Its effectiveness depends to a large extent on the number of registered products and services. It facilitates the dissemination, marketing, and promotion of R&D results and technologies. It may be useful to universities and R&D centres in making known their research and technological achievements. It also enables the provision of online consulting services in the fields of technology transfer, intellectual property rights, licensing, laboratory testing and measurement. Technology intermediary organisations (incubators, relay centres, liaison offices, technology transfer centres, consultants, etc.) may use the Platform to provide training services, technology brokering, and technology provider and user matching services.
A number of noteworthy implementations of the above technology transfer model have recently appeared: • yet2.com: A marketplace for buying and selling licensable technologies, know-how, processes, and similar intellectual property (http://www.yet2.com). • Cordis Marketplace: An online service maintained by the European Commission, where users can find a selection of the latest and best technologies emerging from European R&D (http://cordis.europa.eu/marketplace). • Madri+d: A network of universities, public research centres and private non-profit organisations linked to the technological innovation of the Madrid region (http://www.madrimasd.org/). • MIT DSpace: An electronic system that captures, preserves, and communicates the intellectual output of MIT's faculty and researchers (http://dspace.mit.edu/).
Currently two universities in Greece are using this platform to better exploit their R&D results. The Research Committee of the Aristotle University of Thessaloniki operates the Digital Research Centre (http://www.vrc.gr), and the Liaison Office of the Democritus University of Thrace operates the Innovation Management Digital Space (http://innovation.duth.gr). Fig. 3: An application of the Platform
The RETT Platform consists of three modules, each of which contains a number of tools and applications: Module 1 - Online R&D database: The most important research outcomes, especially those that lead to the development of new products, new production processes and new services, are listed in this database. Technology providers, from universities and other R&D institutions, submit information about research products and services, while technology users, from both the private and public sector, can access this information over the web. Module 2 - Online innovation learning: Technology training and learning are based on roadmaps (guides) that clarify aspects of R&D exploitation and usage. They are complete self-training modules that help users to 4
or specifications or mandates required to which the results of the corresponding Level are compared so that a go / kill or hold decision can be made.
The evolution of the Platform is related to the development of new tools that may increase its intelligence, such as online recommendation systems, market estimation, value analysis tools, and communication tools that may connect the Platform with others providing similar or supplementary solutions.
Furthermore, each Level is split up into sections that include a definition of the problem that the Level is asked to tackle, a possible solution to the problem, and a presentation of the tools available for tackling the problem. Each tool is properly defined, the references, online resources, software sources and consultancy companies or organisations that can help in using the tool are given and case studies of where and how the tool has been used are presented in separate sections. All Assessments are designed to work interactively with a potential roadmap user. Also tools and templates developed are given for the same reason.
4.3 New product development New Product Development (NPD) is the process that enables enterprises and researchers to introduce their ideas and research results to the market. The need for product innovation has never been greater [9]. Currently most enterprises –regardless of their size-, acknowledge innovation and new product development as key conditions for survival and for satisfying the interests of their stakeholders.
The Platform can be used not only as a learning tool, but also as a complete guide to a NPD process. A new version that is currently being developed more fully reflects the characteristics of a tool, assisting with and solving problems with specific online methods and applications. The potential users of the Platform are a diverse set: incubators to assist start-ups and monitor the NPD process; innovation centres assisting innovators; universities and technology institutes to assist inventors transform their R&D results to products; training companies and organisations as a value added service to their clients; new entrepreneurs starting a new company and more directly, scientists wishing to develop a new product based on their research.
The NPD process is at the core of business innovation. There are at least three innovation business models: Integration, orchestration, licensing. Each model has advantages and disadvantages. In the first model, integration (or closed), the enterprises seek to control all the process of NPD and innovation. All the tasks included are implemented and run by the enterprise. In the orchestration model, the enterprise plays the role of a conductor. The NPD process involves tasks that are highly know-how and expertise intensive. In the orchestration business model, tasks are also implemented by enterprises outside the orchestrator. Open innovation is a form of orchestration model. In the third business model, the enterprise is placed outside the process of NPD and innovation. The company licences its ideas, R&D results or patents to external enterprises and they can commercialise and generate returns on the new product. It is an emerging model arising from the over-supply of ideas, R&D results and patents and the inadequacy of their producers to reap the rewards of their innovation [10].
Research fields regarding optimisation of the Platform though are broad. The introduction of models that compare and benchmark NPD projects can be considered an interesting evolution of the tool. The benchmarking approach can assist in identifying best practices and justifiable critical success factors. Figure 4: NPD Platform
The NPD Platform created by URENIO is designed both to support learning and to facilitate the process of NPD. It follows the concept of ‘orchestration’ in which many organisations and experts cooperate to develop a new product. The Platform brings together a set of tools that can assist companies and organisations to successfully develop new products or upgrade existing ones through a series of logical steps, starting from the process of idea generation and ending at the launch of the product onto a market. The Platform contains a series of activities called ‘Levels’ and control points, called ‘Assessments’. Each Level contains information and a well-defined series of activities concerned with the particular phase of the development. Each Assessment is a decision point where senior management can keep on or stop funding the process. In more detail, a Level contains information and tools that are needed to successfully complete the particular Level, and an Assessment contains the criteria 5
• Economic activity and commercial viability are increased. • The efficiency of governance is increased while simultaneously reducing operational costs. • Democracy is extended and enhanced. • Citizens’ feeling of satisfaction is improved. As a result of the above benefits the overall picture of the city is improved.
4.4. e-Promotion of localities, products, and services The fourth Platform relates to promoting products and services and covers those aspects of a digital city/community that are related to the promotion and delivery of products and services which citizens, companies and government authorities produce. Such products and services extend over various fields of urban life from e-government, e-education, e-promotion, to ebusiness. The Platform, however, is not a conventional Internet portal. It aims to become the City’s official portal: an Internet hub for the entire city, for all its population, companies, associations, societies, and organisations.
Over the last few years numerous cities all around the world have developed online platforms that sustain their digital identity and function. The virtual city, the emarketplace, and the e-shop components are typical ones. The URENIO’s Platform has been based on the detailed analysis of best practices from a number of pioneer cities.
The Platform involves a serious dematerialisation of the city’s processes and activities, especially those related to transactions and movement. This achievement may rapidly change the way that citizens have been to living and working. The transformation of a city into digital space provides enormous benefits for the city itself as well as to the surrounding region, making it a basic tool for sustainability and promoting the quality of life.
Potential users of the e-promotion platform fall into the following four categories: 1. Communities and cities wishing to promote their localities on the Internet. 2. Tourism organisations, for their marketing campaigns. 3. Local and regional authorities aiming to deliver their services online. 4. Local associations of producers wishing to market digitally their products.
At the current stage of development, the Platform rests on three modules: • The virtual city, which provides virtual tours of the city, presenting monuments, art crafts, and products with the use of digital maps and panoramic photographs. • The e-marketplace where companies and associations can provide information, present offers, carry out ecommerce, form business relationships, etc. • The e-Government shop, which provides the seamless aggregation of service provision in the public administration realm.
A further development of the Platform is proposed which takes two distinctive directions: • Provision of online services in other areas such as elearning, e-health, e-work, surveillance and security, environment, etc., and • Implementation of applications that increase its intelligence using interactive agents, collaboration tools, and tools that retrieve relevant information (images, video, etc) from other websites, etc.
The virtual city component acts as a main medium for the city’s promotion in tourism and cultural terms. By showing places of interest (monuments, sights, public buildings, transport infrastructures, education and health facilities, recreation areas, etc.) on the map and providing relevant cultural information it helps the city’s residents or visitors organise their visit or spare time according to their special interests.
Fig. 5: An application of the Platform in the Aegean islands
The e-marketplace enables companies and citizens to sell their products and services over the Internet to the largest audience. Transactions are completed online with the use of a credit card. The e-government shop is primarily operated by the city’s municipal authority. It allows users to report a wide range of problems and queries, to apply online for many municipal services, opportunities and certificates, and to pay for many council services online using a credit card. The e-government module also provides information regarding the activities of local government or municipal authorities. The Platform gives cities an advantage by providing many benefits: 6
II. The creation of a technology transfer centre that acts as a central hub of the network, both in terms of transferring know-how and technologies and supporting the operation of the local broadband network and online services. III. The creation of a digital environment for the supply of online services in the four domains of the platforms: strategic intelligence, technology transfer, product development, and product promotion. The digital space is based on local municipal broadband networks, which also offer free e-mail and Internet access to citizens and visitors of the settlements.
5. Digital cities and collaborative innovation Being an intelligent community, city or region is a matter of innovation, of creating a culture of sharing and using technology. Intelligent city platforms offer useful digital tools for enhancing innovation and technology management for the whole intelligent community, business, citizens, public organisations, and institutions. The distinctive characteristic of the platforms is that they create collaborative spaces in critical paths of innovation, be it strategic intelligence or new product development. The platforms may be used by the communities to: • Identify ongoing and emerging trends in technology and innovation in any sector of the community. Particularly for communities specialising in one sector of activity, such capabilities are extremely helpful in identifying market opportunities and reaching new markets. • Generate ideas and turn them into projects or products. The platforms offer specific tools for assisting enterprises, individuals and other organisations, generate ideas, and step-by-step turn them into products and services. • Network and circulate information, ideas and projects. • Search for and share best practice, and benchmark communities against selected others. There is no unique strategic model for innovation, but success and failure stories that communities may use and share are provided.
The above three components, which correspond to different forms of cooperation over the physical, institutional, and digital space, are combined together to create an intelligent entrepreneurial environment. Using the digital platforms and tools a significant upgrading of the local innovation capabilities is expected. Producers may improve their know-how and technologies, their methods of work and product promotion; products or services of the local productive system may gain a better presence into various virtual - digital markets; citizens may have better access to local governance services; the area (region) may improve its attraction potential for visitors, new businesses, and employment. In particular three loops of interaction can be seen as taking place: Skills and Platforms: In this interaction, platforms function as expert systems enhancing the capabilities of the population. Even complex problems and processes may take more simple forms using step-wise suites, online assistants, help manuals, case studies, and examples of good practice. In more advanced applications the platforms may integrate expert systems providing advice, alternative solutions, and automated solutions.
Overall the platforms and the online tools included offer digital spaces with different degrees of intelligence, which may support and reinforce capabilities in the other two levels of an intelligent community, namely, human skills and institutional regulation for collective action.
Institutions and Platforms: Using the platforms the operation of institutions is simplified and the provision of services is standardised. Users may place a demand for a service, and the online system initiates a process, through predefined steps, to provide it. This is typical in egovernment where citizens may apply for a certificate, state a fact, provide an opinion, and participate in decision making.
To illustrate the integration among these three levels of an intelligent community (skills, innovation institutions, digital platforms) we can refer to an ongoing design concerning the transformation of a network of settlements into intelligent communities. The network is composed of 10 small mountain settlements, which were selected with respect to their productive specialisation. All are active in sustainable tourism and the production of traditional local brand-name products using bio- and environmental friendly processes. They follow a clear development model based on sustainable development principles.
Skills and Institutions: In more complex procedures, for instance in technology transfer or business incubation, the platforms may sustain the required human skills to enable participation and decision making.
Three parallel actions are currently taking place to transform these settlements into a network of intelligent communities: I. The creation of a producer’s network (comprised of businesses or individuals) with certified capabilities and skills in their respective business sector. Needs in terms of technology know-how are identified and training courses transfer technologies that are vital for the competitiveness of the sector.
The use of the digital platforms is not sufficient, however, to achieve intelligent communities. There are other crucial issues for a community’s intelligence, such as human creativity, collaboration, citizen and public sector participation in the creation of an innovation culture. In all cases intelligent city platforms should be seen as digital assistants and a toolkit for strengthening and supporting human resources and institutional mechanisms.
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References [1] Komninos N. (2002), Intelligent Cities: Innovation, knowledge systems and digital spaces, London and New York, Spon Press. [2] Komninos, N. (2006) ‘Intelligent Cities’ in The Encyclopaedia of Digital Government, Ari-Veikko Anttiroiko and Matti Malkia (eds), London, Idea Group Publishers, pp.1100-1104. [3] Florida, R. (2002) The Rise of the Creative Class and how It's Transforming Work, Leisure, Community and Everyday Life, Basic Books. [4] Landabaso, M. (2005) ‘The regional economic development relevance of social capital’ in Social capital, innovation and regional development: The Ostuni Consensus, Unpublished document. [5] Gloor, P. (2006) Swarm Creativity. Competitive Advantage through Collaborative Innovation Networks, Oxford, Oxford University Press. [6] Limthanmaphon, B., Zhang, Z., and Zhang Y. (2004)’Intelligent web-based e-commerce system’ in Intelligent Virtual World: Technologies and Applications in Distributed Virtual Environment, T. Shih and P. Wang (eds), London, World Scientific. [7] Tapscott D., Williams A., (2006) Wikinomics: How Mass Collaboration Changes Everything, Portfolio Hardcover. [8] Komninos, N., Sefertzi, E., and Tsarchopoulos P. (2006) ‘Virtual Innovation Environment for the Exploitation of R&D’, Intelligent Environments 06, Institution of Engineering and Technology, Vol. 2, pp. 95104. [9] Cooper, R. G. (2000), ‘Doing it right with New Products’, Ivey Business Journal. [10] Andrew, J. P. and Sirkin, H. L. (2006) Payback. Reaping the Rewards of Innovation, Oxford, Harvard Business School Press.
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Komninos, N., Passas, I., Tarani, P., and Tsarchopoulos, P. (2007) ‘Four platforms for intelligent cities: Linking virtual spaces and collaborative innovation’, in Intelligent Environments 07, 3rd IET International Conference on Intelligent Environments, September 24 - 25, Ulm, Germany, pp. 486-94.
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