Cities of the future – a smarter cities march 2015 by Stanislav Bohaček

Cities of the future â&#x20AC;&#x201C; a smarter cities March 2015

1. The challenges of cities 2. City of the future - "Smart City" concept 3. Smart city examples – many different approaches

4. Hurdles and outlook

Cities of the future – a smarter cities_March_2015.pptx

1. The challenges of cities 2. City of the future - "Smart City" concept 3. Smart city examples – many different approaches

4. Hurdles and outlook

Cities of the future – a smarter cities_March_2015.pptx

Cities will have to manage two large, interrelated challenges Climate change: Cities key to winning the climate change battle Copyright ÂŠ 2014 by The Boston Consulting Group, Inc. All rights reserved.

Growth & Urbanization: More people living in cities % Urban population 100

GHG1 emissions repartition in 2011

2050: 6.3B

30%

2011: 3.6B

Urban population

50 40

Rural

20%

Possibly in city

30%

30 20

20%

60%

1950: 0.7B

In city

40%

10 0

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Productionbased estimate

Consumptionbased estimate

"... it's in the cities where the battle to slow global warming will be won"2 1. GHG: green house gases 2. Marcelo Ebard, Mayor Mexico City Source: UN Cities and Climate Change Report; World Bank Cities and Climate Change Report; World Urbanization Prospects: 2011 Revision Population Database; press research; BCG analysis Cities of the future â&#x20AC;&#x201C; a smarter cities_March_2015.pptx

Urbanization: Emerging market cities with massive growth ... Population growth in emerging markets mega cities 2010-2025 in % and absolute (in millions) 75% 73%

22% 18%

59% 53% 52% 51% 50% 50% 50% 48% 45% 43% 40% 40% 40% 37% 34% 33% MEA/Africa 31% Asia Americas

11 8 8

8 15 13

6 5 15

5 4 22

13 11

13 10

≈ Population of London (8.3M)!

15 9

7 15

9 28 13 4 14 3 12 5 16 19 7 27 11 4 15 10 3 13 14 4 19 Population 2010 (mio) 20 4 25 Growth 2010-2015 (mio) 20 4 23

9 10 9 12

20 4

~300M rural Chinese will become city dwellers by 2020 ≈ Population of USA Source: UN World Urbanization Prospects – Review 2011; BCG analysis Cities of the future – a smarter cities_March_2015.pptx

Lagos Kinshasa Bangalore Dhaka Shenzhen Beijing Chennai (Madras) Delhi Karachi Guangzhou Shanghai Wuhan Chongqing Tianjin Manila Mumbai Cairo Jakarta Calcutta Mexico City São Paulo

Shenzhen in 1990

Shenzhen today

Delhi Metro in 2002

Delhi metro today

... which changes them beyond recognition

Rithala Rohini West Pitam Pura

Rohini East Kohat Enclave

Keshav Puram Netaji Subhash Pratap Place Inder Lok Nagar Kanhiya Nagar Shastri Nagar

Tis Hazari

Pul Bangash

Length: 8.3 km

Cities of the future â&#x20AC;&#x201C; a smarter cities_March_2015.pptx

Length: 110 km

1. The challenges of cities

2. City of the future - "Smart City" concept 3. Smart city examples – many different approaches

4. Hurdles and outlook

Cities of the future – a smarter cities_March_2015.pptx

• Energy efficiency • Pollution • Resources

Broad definition: Economic viability

"Smart Cities" employ innovative concepts, technologies & services to achieve city objectives

• Investment • Jobs • Innovation

Citizen well-being • • • • Cities of the future – a smarter cities_March_2015.pptx

Public safety Education Healthcare Social care 8

What will this future look like?

Homes and buildings will operate as living organisms, monitoring performance and adapting to our needs in real time, saving us energy and money

Solar-Powered Public Transportation Cities will be connected by lightning-fast, solar-powered public transportation options that are clean and convenient. They may even be stilted above existing roadways

Solar Surfaces Solar panels will begin to appear in unlikely places. They will cover sidewalks, line the outside of buildings, and double as fully functional windows

Self-Driving Electric Cars All vehicles will get their energy from the electrical grid. There will be no exhaust pipes, no carbon dioxide emissions, no gas stations, and no car accidents

Smart Grids Consumers and power sources will communicate in real time through fiber optic smart grids that will reduce blackouts, maximize energy efficiency, and save money

Innovative Wind Turbines Cities will generate electricity from a host of new wind power innovations – turbines that float on the ocean, bladeless wind turbines, and turbines that hover in the atmosphere

Efficient Water Use

Energy Independent Homes

Buildings will be equipped with comprehensive water management systems, allowing them to collect rainwater, monitor water use, and efficiently recycle graywater

Homes will be adorned with solar panels, small-scale wind turbines and other sources of electrical generation, allowing them to operate independently from the grid, when necessary

Cities of the future – a smarter cities_March_2015.pptx

Living Buildings

New technologies and concepts enable smart cities Examples

High speed networks

Green tech

Mobile smart devices

Electrification

Location technologies & sensor proliferation

Automation

Advanced analytics

Green building design

Social networks

New mobility concepts

Cities of the future â&#x20AC;&#x201C; a smarter cities_March_2015.pptx

ICT - based

Non ICT (tech, urban planning, architecture)

Five major sectors with "smart applications" Technology examples

NonICT

Energy

Transport

Water & Waste

Social

Buildings

Smart meters & demand response

Intelligent transportation & smart parking

Smart water meters

E-government

Home, building & energy mgmt. systems

Electric vehicle infrastructure

Tolling & Congestion charging

Distribution network control, leak detection, GIS

Remote social infrastructure (health, education)

Home entertainment and communication

Distributed generation integration

Public transport system information sharing

Storm and flood management

Safety & Security

Smart consumer appliances and devices

Consumption visualization and behavior change

Car & public transport sharing

Consumption visualization and behavior change

Social city apps

P2P room sharing portals

Renewable- and Co-Generation

Low emission vehicles & new public transport

New water purification methods

Green hospitals

Energy efficient building design & refurbishment

Cities of the future â&#x20AC;&#x201C; a smarter cities_March_2015.pptx

ICT-based systems/apps/services

Examples

Smart city projects exist globally Select examples

Ontario Energy

Dubuque Comprehensive: infrastructure integration focus

London Traffic, congestion

Boulder Energy California Energy

Santander Parking

San Francisco Public transport

Stockholm Traffic, congestion

Paredes Comprehensive – IT focus

Austin Energy

Chicago Open Data

Houston Energy

Rio de Janeiro City command and control

Songdo Comprehensive, IT-focus

Tianjin Energy (eco-city) Amsterdam Broad focus

Toronto Water

Chengdu Social/public services Energy

Eco-Model Cities Various projects

Zhenjiang Traffic, congestion

Barcelona Broad focus

Guanghzou Knowledge city Masdar Comprehensive, energy-focus

Singapore Traffic, congestion Energy

Medina Knowledge city King Abdullah City Economic city Sao Paulo Water

Jazan Economic City Economic city Prince Abdulaziz City Economic city

Lavasa Basic infrastr. Ahmadabad/GIFT1 Financial hub with some smart tech.

1. Gujarat International Financial Tech City Source: Press Research; BCG analysis Cities of the future – a smarter cities_March_2015.pptx

Smart cities can be mapped along two key dimensions

2 Importance of ICT

• New cities & special economic zones • Large scale projects • Large urban planning & non-ICT component • Asia/Middle East

Amsterdam

Enablers 5

Songdo

City Solution Market Places

Masdar

–

Low

• Existing cities • Typically smaller pilots/projects • Higher ICT share • Europe/NA/LatAm

Chicago Open Data Rio Operations 3 Center 4

High +

Select examples

–

Greenfield

Type of city

Example detailed in next section

Brownfield'

ICT-related spending typically only small fraction of overall city infrastructure spend Cities of the future – a smarter cities_March_2015.pptx

1. The challenges of cities 2. City of the future - "Smart City" concept

3. Smart city examples – many different approaches 4. Hurdles and outlook

Cities of the future – a smarter cities_March_2015.pptx

Songdo – South Korea's new sustainable business hub

Project Overview

Key data

Key objectives

Major Partners1

Key facts Songdo • Largest private real estate development in history • Aims to create new and sustainable business hub

• Cost: • Size:

$40Bn 1´500 acres, 80´000 apartments, 75´000 residents • Timeframe: 2003-2020 • Environmental sustainability: Become a leading sustainable city worldwide • Economic viability: Develop a concentrated financial, economic and technology center • Citizen well being: Provide state of the art social, cultural and sports infrastructure

NY-based private real estate development and investment firm

South Korean Engineering and Construction firm

Key ICT Partner (small invest)

1. Exemplary, no exhaustive list Cities of the future – a smarter cities_March_2015.pptx

Amsterdam – 47 individual Smart City pilot projects

Project Overview

• Partnership between businesses, authorities, research institutions, and citizens • Provides a platform and testing-bed, focuses on openness re. infrastructure, knowledge, data

Key data

• Themes: Living, Working, Mobility, Public facilities, open data • Size: 47 Projects in 3 neighborhoods of Amsterdam

Key objectives

Key facts Amsterdam

• Environmental sustainability: Reduce ecological footprint of city • Economic viability: Provide entrepreneurs with possibility to test concepts on large scale • Citizen well being: Improve quality of living in Amsterdam

Major Partners1 1. Exemplary, no exhaustive list Cities of the future – a smarter cities_March_2015.pptx

Rio de Janeiro: smart operations center to cope w. challenges

Population in M

+246%

Regular severe landslides and floods due to geographical situation of city

6.096 1.764

Need for smarter command & control Host city of the 2014 FIFA world cup and the 2016 summer Olympic games

Prime sport events Cities of the future – a smarter cities_March_2015.pptx

1940

Population growth changes requirements for city infrastructure

2007

High # of crime & drug incidents ‒ especially in favelas

Crime & drugs 21

Population growth

Natural disasters

Chicago Open Data: Enable innovation of city services / apps

City of Chicago offers data platform

iFindit:

API1 for Software Developers • >200 datasets of all kinds, e.g. building permits, Food inspections, crime stats • Similar data from Chicago Transit Auth. • Apps contest to drive development

Mobile app that allows users to easily find community resource: • Food • Shelter • Medical Care

Chicago Transit Tracker: • Shows estimated arrivals for favorite or nearby bus or train • Uses device location data

Many similar approaches – SFO even with open data legislation and Chief Data Officer 1. Application Programming Interface Cities of the future – a smarter cities_March_2015.pptx

Smart City Enablers: City market place "CityMart" offers platform that connects cities and solution providers

• Connects cities and solution providers • Solution providers can provide showcases that can be searched online by cities • Supports city conferences and "solution challenges"

Today still too many solutions for the same problem Source: CityMart.com Cities of the future – a smarter cities_March_2015.pptx

What is the right approach to develop future cities? Emotional "top down" vs. "bottom-up" debate ongoing

"Bottom-up"

• Songdo, Rio Operation Center

• Chicago/San Francisco Open Data

Developers / Vendors

• IBM, Cisco, Siemens, ...

• Volunteer developers / startups

Development Process

• Vendor in-house development, sometimes in city partnerships

• Inclusive: citizens/officials and developers, "app contest"

• Centrally managed, "control room" • Typically proprietary, some open • Efficiency focused

• Distributed, SW smartphone "apps" • Open data, open interfaces • Social and local focus

• Citizen inclusion • Social focus • Pace of innovation

• Robustness and maturity of SW • Realizing mission critical SW • Few commercial successes

Examples

Characteristics

Challenges

"Top down"

Both approaches needed, serve different purposes Source: Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia by Anthony M. Townsend, BCG Cities of the future – a smarter cities_March_2015.pptx

1. The challenges of cities 2. "Smart City" overview 3. Smart city examples – many different approaches

4. Hurdles and outlook

Cities of the future – a smarter cities_March_2015.pptx

Making our cities "smarter" today still with several hurdles

What

• Value proof: Many applications without proven business case, yet ‒ or overall economic/social/environmental but no direct financial business case • Fiscal constraints: Difficult to finance large invests, ideally self-financing • Standards: Especially for IT, lack of city related standards • Legacy: Very heterogeneous starting points and legacy infrastructure • Scale: Especially for IT apps, need to better leverage solutions globally

How

• Resilience: Especially for IT, vulnerability to faults and cyber attacks • Privacy: Especially for IT, key concerns around data protection • Government role: Still experimenting with policies how to best support

Who

• Buying center & decision making: Complex, especially cross department

Cities of the future – a smarter cities_March_2015.pptx

Outlook

Urbanization and climate change make increased "smartness" mandatory â&#x20AC;&#x201C; especially in times of aging infrastructure and constrained fiscal budgets

Yet, given the challenges, smart city development will take time. Need to continue trying out, piloting, innovating top-down and bottom-up Critical to continue building up forums of city governments and the private sector to exchange experiences & value proofs, drive standards, and improve scale of solutions

Vast majority of city infrastructure spend will still be in "bricks" to support the immense city growth in emerging markets. However, "bits" will play an ever growing role

Cities of the future â&#x20AC;&#x201C; a smarter cities_March_2015.pptx

Do you have

Your questions

questions

Cities of the future – a smarter cities_March_2015.pptx