the evolution of smart cities and connected communities
TRANSCRIPT
The Evolution of Smart Cities and Connected Communities
The Authoritative Source for Consumer Technologies Market Research
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CTA Market Research Report January 2017
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Table of Contents
The Evolution of Smart Cities & Connected Communities
Methodology Defining & Understanding the Smart Cities Concept
Awareness of Smart Cities Quantifying the Evolving Smart Cities Movement Geographic Dispersion of Smart Cities Comparing Smart City Approaches – United States vs Asia
The Benefits of a Smart Implementation for Cities Transforming Cities’ Relationships With Their Residents
Needs & Challenges of Smart Cities Globally Challenges Implementing Smart Transportation & Mobility Systems
Further Advancing The Smart City Concept Planning & Implementing Connected Cities Successfully Most Widely Adopted Technology Implementations Across Smart Cities Industries Leaping Into The Smart City Space Where Opportunities Exist to Generate Further Value
Helping Smart Cities Become Ubiquitous
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Methodology The report described herein was designed and formulated by the Consumer Technology Association (CTA)™
in collaboration with United Parcel Service (UPS)®. During the fielding of this study, CTA employed the
services of Opinion Research Corporation (ORC) to conduct qualitative in-depth interviews with U.S. key
policymakers and influencers, as well as secondary (published) research from thought leaders, analysts and
other sources offering context, trends, key implementations and industry implications in both the U.S.
and Asia.
CTA is a member of the Marketing Research Association (MRA) and adheres to the MRA’s Code of
Marketing Research Standards.
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Defining & Understanding the Smart Cities Concept
4 Secondary:: Peterson, E., and Mendoza, A., et. Al. “Global Cities 2016.” (2016 May 1). AT Kearney. Retrieved from https://www.atkearney.com/research-studies/global-cities-index/current-research-detail “ICMA; New Study Explores Priorities and Barriers of Implementing Smart City Technologies in U.S. Cities and Counties,” Journal of Engineering, October 10, 2016. .
What Is A Smart City? • A general consensus definition of a "smart city" is that while a city
needs to have a data-based infrastructure system, to be truly "smart" it must also integrate numerous other city functions such as energy, buildings, mobility, government services, citizen involvement, healthcare, and/or infrastructure.
• Smart cities have been understood primarily through the lens of technology, based on developing high speed broadband deployment and its applications as well as measuring urban activities, weather patterns and the environment, generating extensive data and undertaking extensive evidence based data analytics, thereby creating cities that are more efficient and cost effective.
• Most urban areas have, in reality, a “smart blocks” or “smart corridors” implementation, not a fully realized “smart city” implementation at this time.
• The ultimate promise of smart cities is data being used as an improved input for better processes and decision making.
• Smart city efforts are to make cities work more efficiently or better.
• This includes all forms of infrastructure and data
analytics, but also a focus on: 1. knowledge creation 2. talent attraction & retention 3. digital inclusion 4. creating a collaborative innovation ecosystem 5. developing a focus on sustainability
(environmental, economic and social) 6. global marketing to attract investment and
talent 7. citizen participation in the community’s
planning and development.
“What we have in place is a smart district. I submit to you there's no such thing as a smart city on planet Earth right now because you don't have sufficient dispersion into any city population to where the data can be fully extrapolated.” – Innovation Officer – Kansas City
Awareness of Smart Cities The concept of the Smart City isn’t well known among laypeople, according to Frost & Sullivan, which tested several hypotheses in 2016 to ascertain the level of awareness within the United States.
Secondary : “US Smart Cities--Awareness and Assessment,” Frost & Sullivan, April 2016, Retrieved from http://www.reportlinker.com/p03817793summary/USSmartCitiesAwarenessandAssessment.html
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"Smart city" is not a well-recognized term across the United States Barely one-third (33%) of the general population in the U.S. that were surveyed said they were familiar with the term. The higher the level of education and/or income the respondent reported, the higher the likelihood that he or she would state that they had heard of the term "smart city." No individual with less education than a high school diploma said that he or she had ever heard of the term "smart city." The general population's view of a smart city, once defined, was more complex and sophisticated than what had been hypothesized.
• This bodes well for cities who want to provide a multifaceted approach to improving a city overall. • It also increases the opportunities and types of suppliers that can provide a "smart city" solution or component of
a solution.
Quantifying the Evolving Smart Cities Movement
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Secondary:: Peterson, E., and Mendoza, A., et. Al. “Global Cities 2016.” (2016 May 1). AT Kearney. Retrieved from https://www.atkearney.com/research-studies/global-cities-index/current-research-detail “ICMA; New Study Explores Priorities and Barriers of Implementing Smart City Technologies in U.S. Cities and Counties,” Journal of Engineering, October 10, 2016. Secondary:: http://www.its.dot.gov/pilots/pdf/ITSA2016_smartCities_Dopart.pdf Analysis by Technavio, Gartner and Navigant Research .
• The number of smart city projects globally has grown from 170 at the end of 2013 to more than 235 in 2016.
• The global smart communities / smart cities market was valued at $14.85 billion in 2015, and according to industry analysts it is expected it to reach $34.35 billion by 2020, growing at a compound annual growth rate of 18.26%.
• Industry analysts estimate that 1.6 billion connected devices will have been used by smart cities in 2016, an increase of 39 percent from 2015.
• With 70% of the world's population forecast to live in cities by 2050, the need for sustainable, livable world cities is essential for a prosperous future. Indeed, the rapid growth in urbanization and increasing demand for quality lifestyles are some of the factors supporting the development of the smart community concept. Governments worldwide are supporting urbanization to enable economic growth, but they need to amend the concept of urban planning
and functioning. Therefore, government agencies are teaming with private companies to develop smart cities, which enable the seamless management of energy, water, transport, health, and education.
The smart city/community concept promotes a specific vision of modern urban development, because it acknowledges the growing importance of information technology in economic competitiveness. The urbanization rate is putting pressure on urban infrastructure because migrating populations from rural areas are degrading basic amenities and creating a scarcity of non-renewable resources.
Geographic Dispersion of Smart Cities
• “Asia is the most rapidly urbanizing region globally, with China and India set to reach 65% and 37% urbanization in 2016, up from 56% and 33% in 2015 respectively, according to BMI Research.
• BMI Research believes rapid urbanization together with climate concerns will be the main drivers of the emergence of smart cities in Asia, as smart cities will help to optimize urban development in order to ease congestion and increase energy efficiency.
• Smart city development will require employment of new technologies including sensors, mobile technology, and big data analytics across infrastructure sectors including transport, energy, water supply, sewage plants and buildings. … The timely development of smart cities will hinge on the technological readiness of many existing cities.
• Developed ICT markets such as Singapore, Hong Kong, Japan, South Korea and Australia have a competitive advantage over some of their other Asia counterparts thanks to advanced, comprehensive network infrastructure that will form the basis of their smart city projects.
Secondary:: “Smart Cities To Disrupt Traditional Infrastructure Sector”. (2016, June 10). BMI Research. Retrieved from http://www.bmiresearch.com/news-and-views/smart-cities-to-disrupt-traditional-infrastructure-sector Thong, K. “The business of creating Asia's smart cities”. (2016, October 20). Future Ready Singapore. Retrieved from https://www.futurereadysingapore.com/2016/the-business-of-creating-asias-smart-cities.html
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Although smart cities are popping up all around the globe, Asia is a likely center of smart city innovation, due to urban needs, technological readiness, and governmental support of new initiatives.
Meanwhile, IHS predicts there will be at least 88 smart cities worldwide by 2025, and Asia-Pacific will account for 32 of them. IHS defines smart cities as cities that “have deployed – or are currently piloting – the integration of information, communications and technology solutions across three or more different functional areas of a city.” • Companies in Europe and the US have been actively identifying key business opportunities to support Asia’s next wave of smart city technologies,
especially in the areas of digital government services, efficient energy use and renewables, water and waste management, transportation, education and healthcare.
• Due to economic growth rates higher than global averages, many Asian and ASEAN cities present economic opportunities for companies in the US to support smart city initiatives in these cities.
Smart Cities Projects Across The United States
8 Secondary:: https://arc.applause.com/2016/02/10/applicants-smart-city-challenge/ .
• In December 2015, the United States Department of Transportation launched its Smart City Challenge—a public-private partnership between the U.S. DOT and investment vehicle Vulcan.
• Mid-sized cities across the nation were encouraged to submit proposals to the agency as to how they would integrate data-driven processes into their infrastructure with the successful applicant getting up to $40 million from the federal government and $10 million from Vulcan.
• 77 cities across the United States submitted proposals in early 2016 to compete in the Challenge.
• The U.S. cities bolded in the map above (Denver, San Francisco, Portland, Columbus, Pittsburgh, Austin, and Kansas City) were the seven finalists for the U.S. Department of Transportation’s Smart City Challenge.
Other Leading Smart Cities Projects Worldwide
9 Secondary:: http://www.enterpriseinnovation.net/article/top-smart-cities-world-today-676169304
Singapore
• The city state of Singapore aims to be the world’s first Smart Nation, leveraging on one of the highest mobile and broadband penetration rates in the world.
• The centerpiece is a Smart Nation Platform, which brings together data from a nationwide sensor network. Collected data will be fed into an open data platform, as well as a dynamic 3D “Virtual Singapore” model that will allow city planners to test-bed concepts, analyze traffic and pedestrian flows and run simulations.
Seoul
• South Korea’s capital is known for incorporating cutting-edge technology in every aspect of city life. OLEV (Online electric vehicle technology) was successfully developed and deployed – allowing electric public buses to be charged as they move across road surfaces.
• Smart work centers equipped with groupware and teleconferencing systems allow 30% of government employees to work closer to their homes.
London
• London is known for pioneering the use of open data to solve city challenges. The London DataStore (launched in 2010) is one of the first open data platforms in the world.
• Its 500 datasets have resulted in transport apps, interactive maps, population and demographic projections and urban planning projects.
Helsinki
• The capital of Finland pilots its smart city projects through its Smart Kalasatama district, a city innovation platform where new solutions can be developed and tested in a living urban environment.
• Helsinki is also very strong in the field of open data innovation - over 1200 data sets have been published on the Helsinki Region Infoshare platform.
Barcelona
• Barcelona was named European Capital of Innovation in 2014 by the EU and has more than 100 active smart city projects ranging from smart traffic lights, telecare services and electric cars to ubiquitous public Wi-Fi.
Copenhagen
• Copenhagen is a center for clean technology innovation and is committed to being carbon neutral by 2025.
ASIA EUROPE
Comparing Smart City Approaches – United States vs Asia • Asia appears to be further along, in terms of Smart City programs:
• China’s efforts have seen the country establish 285 smart city pilot projects.
• Singapore’s Smart Nation drive identifies five key domains: transport, home and environment, business productivity, health and enabled ageing and public sector services, which are being impacted through digital technology.
• Other Asian countries are increasingly benchmarking successful cities such as Singapore and planning or implementing "smart cities" of their own to address their urbanization challenges, and are reaching out beyond government to securing funding.
• India alone is planning 100 new smart cities and 500 cities are being overhauled under the rejuvenation and urban transformation program.
• Asian countries have realized that public sector funding is inadequate to effectively address the scale of urbanization and are increasingly focused on attracting private sector participation in order to fast track infrastructure and smart cities development.
• Donor and multilateral funding e.g. World Bank, ADB, AIIB, Silk Road Infrastructure Fund, BRICS Development Bank are also expected to be significant contributors.
• In view of the above, the World Bank has estimated US$8 trillion in infrastructure spending over the next decade in Asia.
• In developed countries such as the United States, the challenge is not so much what a city can offer its people, but instead how it can maintain legacy infrastructure systems, which cannot be abandoned due to cost, space and other considerations. In these cases, governments can focus smart city applications more on facilitating the optimal use of existing infrastructure resources and monitoring the operations of such legacy resources.
Secondary:: Chawla, C. “Building tomorrow’s cities”. (2016, September 9). Policyforum.net. Retrieved from http://www.policyforum.net/building-tomorrows-cities/ Shahzad, O. “Smart Cities: Solving Asia's Urbanization Challenges & Spurring Economic Growth”. (2015). The Singapore Summit. Retrieved from https://www.singaporesummit.sg/2015/globalasia/articles/smartcities.html Schenkel, S. “Financing India’s Smart Cities: The Case for Public-Private Partnerships”. (2015, May 12). cogitASIA. Retrieved from http://cogitasia.com/financing-indias-smart-cities-the-case-for-public-private-partnerships/ Deloach, D. & Berman, B. “Why Smart City Development Relies on Relationships”. (2016, September 21). Govtech.com. Retrieved from http://www.govtech.com/fs/infrastructure/Why-Smart-City-Development-Relies-on-Relationships.html
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The Demand For Smart Cities Is Being Driven By A Series Of Diverse Constraints, Challenges & Opportunities
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• As urban environments become more crowded, congested and dynamic, they are increasingly difficult to monitor and manage through manual mechanisms. To that end, mayors are beginning to become more proactive and productive using connected sensors as their eyes and ears.
• Urban areas are increasingly cutting down on waste. Access to real-time data provided by connected sensors and monitors can help municipalities to re-allocate under-used resources and incentivize citizens to cut waste.
• Smart city solutions can reduce the frustrations associated with urban living. If citizens have access to salient information, they are more likely to make better choices. Moreover, access to information could enable residents to find solutions to their own problems.
• People living cheek to cheek in cities are vulnerable to life threatening events, such as earthquakes, floods and storms, air and water pollution, and infectious diseases. Continuous access to relevant data can be used to create early warning systems and help city administrations intervene to reduce these risks.
• Smart city solutions can enable municipalities to both cut costs and raise new revenues. For example, connected sensors can enable waste disposal teams to optimize their garbage collection rounds, reducing the number of unnecessary trips. Similarly, connected cameras and sensors can be used to underpin road-charging systems that can raise new revenues to pay for public transport.
Secondary “Five Smart City Drivers,” RCR Wireless News, July 1, 2016, retrieved from http://www.rcrwireless.com/20160701/internet-of-things/smart-city-drivers-tag28
The Benefits of a Smart Implementation for Cities
Benefits to the City
• Reduces traffic and congestion. Advanced analytics and instrumentation can provide cities with the information they need to minimize congestion. Traffic lights can be synchronized and adjusted for optimal traffic flow.
• In-vehicle collision-avoidance systems can take action to prevent congestion-causing accidents. Incident detection and notification systems can analyze information from cameras and vehicles to detect traffic problems, alert drivers and suggest alternative routes.
Benefits to Citizens
• Reduces frustrations with inefficiencies in city services.
• Reduces wasted time sitting in traffic
Secondary: “Transportation.” Smart Cities Council. http://readinessguide.smartcitiescouncil.com/readiness-guide/transportation-0 Accessed 28 October 2016. Image: NEC.com, http://uk.nec.com/en_GB/en/images/smart_transportation.jpg
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Smart Cities require the use of sensors to provide more granular information about its hard assets, the environment, and the utilization of services. Recent research has shown that adding sensors can provide demonstrable benefits, particularly with transportation issues.
Benefits to Commerce • The city becomes more attractive to talent.
Professionals, like businesses, consider mobility when deciding where to locate.
• Smart implementations increase cities’ competitive advantage. The quality of cities’ transportation infrastructure is a major factor in business and industry investment decisions.
Benefits to the Climate • Reducing pollution from transportation.
Traffic management creates a more efficient road network and reduces travel time, reducing vehicle emissions.
Top 5 Important Benefits in Motivating Governments to Implement/Expand
Smart Cities % of responding communities rating benefit as
very important
1. Economic development (44%)
2. Capital and/or operational cost
savings (43%)
3. Resiliency for critical operations (43%)
4. Enhanced services for residents (38%)
5. Safety and security benefits (37%)**
**According to survey findings by the International City/County Management Association in partnership with the Smart Cities Council)
The Benefits of a Smart Implementation for Cities – Cont. • Pursue predictive analytics: The importance of using analytics to predict when elements of a
transportation infrastructure are close to failure can’t be overstated. Consider the value of predictive maintenance, for example, in relation to the integrity of critical infrastructure such as bridges and highways. Not only can predictive maintenance save money, it can also save lives.
• Enable dynamic, demand-based pricing: Smart cities have systems in place to use dynamic, demand-based pricing as a tool to influence customer behavior. As cities better understand people’s transportation behavior through instrumentation and analytics, they can influence that behavior by changing prices throughout the day to accomplish their transportation goals.
• Real-time traffic management: By integrating sensor data and real-time traffic data from vehicles, intelligent routing via GPS apps can help manage the flow of traffic, re-routing vehicles to less-congested areas.
• Accident reduction: Utilizing improved collision-detection and avoidance technologies, as well as hazardous alerts (due to inclement weather or other changes in the state of the roadway), reduces the number of accidents on highway and local roads.
Secondary: Report to the President: Technology and the Future of Cities. President’s Council of Advisors on Science and Technology. February 2016. https://www.whitehouse.gov/sites/whitehouse.gov/files/images/Blog/PCAST%20Cities%20Report%20_%20FINAL.pdf
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“In most cities transportation/congestion/mobility is the number one issue or concern of citizens. It's an enormous economic anchor. It prevents people from moving, it causes companies to move out. The city of Seattle lost Boeing because we're the third most congested city in the nation and Boeing couldn't get it's parts and people moved back and forth between it's different factories. So whether you're worried about the planet, the environment, whether you're worried about equity, people, and whether you're worried about the economy, all three of those triple bottom-line issues are enormously impacted by transportation.” – Smart Cities Council executive
“As fun as a smart city implementation is, the expense associated with it makes it a non-starter from a voting perspective. So what we have chosen to do is to tie it to transportation. Because every single citizen from our region, not just from our city, but from the whole region who sits in traffic on I-35, they are partaking in the transportation network.” – Innovation Officer, Kansas City
Transforming Cities’ Relationships With Their Residents Smart City planners claim that the benefits of smart cities will go beyond basic economic benefit, and directly impact their residents, making the city a more efficient, safe and livable place.
Secondary “ICMA; New Study Explores Priorities and Barriers of Implementing Smart City Technologies in U.S. Cities and Counties.” . Journal of Engineering, 10 October 2016. “People-centric smart cities: five ways technology can support better urban living,” Thecityfix.com, April 1, 2105, retrieved from http://thecityfix.com/blog/people-centric-smart-cities-5-ways-technology-expo-world-congress-montreal-dario-hidalgo/
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1. Helping planners understand mobility needs: New ways of acquiring and processing data, utilizing open-source mapping platforms, and generating powerful data visualizations are already empowering communities and helping planners improve transit performance, zoning, and street design. • In Copenhagen, an intelligent traffic management system
optimizes traffic flow and remedies road congestions, while a dynamic RFID-based road pricing system is used to nudge citizens towards green transportation.
• Barcelona’s smart city platform brings together data from the open-source Sentilo sensor network, the city’s information systems, as well as social networks and web 2.0.
2. Empowering communities to engage in the planning process: Technology can help inform citizens about planning in their communities and also facilitate citizen participation in policymaking.
• Funding for Vancouver’s transit system, for example, is currently
under review by referendum. Throughout the process, the city has used different online and social media platforms to inform residents about updates and obtain feedback.
3. Improving the travel experience: Providing people with real time information about departure times helps improve transit operations. Further, safe bike lanes and parking, integration with transit, tech support—like electronic assistance—and even technology-enabled bikesharing systems can help establish bicycles as an essential mode of transport in smart cities.
• Transit agencies—like STM in Montréal—are developing a much
closer relationship with their users, since data now comes in through a variety of sources thanks to new technologies. Utilizing social media and crowdsourcing can help transit agencies better respond to citizens’ mobility needs.
• The City of Hamburg, Germany has been installing sensors in parking spaces. The sensors feed constant updates to a control center that can then alert vehicle drivers to available parking in real time.
4. Integrating technology as a component of wider sustainable development objectives: Technology needs to be integrated into a greater framework for sustainable mobility and urban development in order to tackle persistent challenges beyond transport emissions.
Needs & Challenges of Smart Cities Globally • Smart cities development faces many barriers around the world including tight municipal budgets, sluggish technology
procurement guidelines for public agencies, privacy and cybersecurity concerns, and a pressing need for more IT staff at municipal agencies. Here are some key points highlighting different challenges around the world.
Secondary:: “The Smart Cities Report” (2016 October 10). Business Insider. Retrieved from http://www.businessinsider.com/the-smart-cities-report-driving-factors-of-development-top-use-cases-and-market-challenges-for-smart-cities-around-the-world-2016-10
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In the EU, environmental sustainability goals are driving cities to rapidly implement IoT technologies in an effort to reduce fossil fuel emissions.
Cities in Central and South America are using sensors and other smart cities solutions to reduce road congestion and make their infrastructure more reliable in the face of extreme weather events like hurricanes and tropical storms.
North American cities lag behind their EU counterparts in implementing smart cities solutions because of financial resource constraints and funding, but are also finding ways to use IoT technologies to do more with less.
Although smart city development in Africa is extremely nascent, new networking technologies like Low Power Wide Area Networks and the next-generation 5G networks will help provide the connectivity to get more smart cities projects off the ground on the continent.
Asian countries are set to become the market leaders in smart city adoption, but still face challenges in training the IT talent to help municipal authorities manage smart cities projects.
Challenges Implementing Smart Transportation & Mobility Systems • There is an emerging series of thought around mobility from the
point of view as an alternative to physical transport / movement – bringing services or solutions directly to the citizen virtually, freeing them from having to move or travel to the solution
• This goes beyond traditional vehicle transportation in encompass new imagined scenarios involving shopping, work, pleasure, city services, etc.
• Can these activities be provided in a virtual or novel way to residents to free them from having to navigate the city physically?
• There is also increasing thought being brought to bear on the issue of how to deal with a “dumb” transportation system that will be forced to increasingly handle “smart” innovations.
• This transition period is expected to last potentially decades, pushing for creative solutions for how smart transportation will have to interact safety and effectively within the dumb context for some time.
Secondary: “Audi brings automated parking to the Boston area,” M2 Presswire, November 18, 2015. Report to the President: Technology and the Future of Cities. President’s Council of Advisors on Science and Technology. February 2016, retrieved from https://www.whitehouse.gov/sites/whitehouse.gov/files/images/Blog/PCAST%20Cities%20Report%20_%20FINAL.pdf
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“The whole aspect of smart mobility is vital to not only the economy in that community but its brand and image. The opportunities to promote and differentiate a community. And get people to invest in it and to attract talent.” - Intelligent Community Forum (ICF) executive
Other “Smart” Implementation Challenges
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Secondary: “Obstacles to Smart Cities Implementation,” WorldSmartCity.org, Feb. 5, 2016, retrieved from http://www.worldsmartcity.org/forums/topic/obstacles-to-smart-cities-implementation/
“I think it's figuring out how to do a smart city implementation in a way that is cross cutting so that it creates the platform that any and every city department can eventually build on. So I think you need to take a platform approach. And then it needs to be done in a way that's interoperable.” – Smart Cities Council executive
Challenges Through Market Barriers • Integration of innovative technologies has often not been tested. Shared standards and interoperability of systems are lacking.
• Lack of smart implementation precedence means high risk for investment.
• New forms of collaboration, open innovation and co-creation need to be learned by smart implementation solutions providers.
Organizational Challenges • Most companies still think in products, not in holistic solutions.
• No single products but systems-solutions to existing problems and needs are what cities want.
• Virtually no company sees itself as systems-integrator of smart city technologies and services. Neither do city administrations, nor municipal service providers.
Leadership Challenges • Political leadership is often missing.
• Often no real partnership between cities and companies exist, since in some cases procurement regulations prevent close partnerships and in other cases the ways of thinking and acting are very different.
• Cities need support in creating sustainable value. But opposed to business understanding, value for cities is not confined to business value – it also refers to a sustainable development, a healthy environment, socially viable solutions and long-term stability of infrastructure and economy.
Concerns Associated With Smart Cities Implementations
Secondary: “Smart Cities: Weighing the Risks and Rewards of Connecting Communities.” Risk Management, December 1, 2015.
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There are legitimate concerns raised by opponents of smart cities that must be addressed by smart city planners.
Security Risks
• With all the interest and buzz surrounding smart city initiatives, cybersecurity is often overlooked in both development and deployment of smart parameters.
• Integrating digitally connected systems into city infrastructure creates new pathways for adversaries to exploit.
• In addition to the possibility of intentional breaches, the risk of human error should be a major concern, as public workers are typically inexperienced with the complex technology associated with a smart city.
• The amount of data collected and shared by the city also raises privacy concerns and calls into question the ethical use of information technology.
• In a smart environment, systems and networks are all interconnected so they can work together efficiently and in real time. However, every connection creates a new attack vector for a hacker to infiltrate and take control.
Internal Errors
• In addition to threats from outsiders, internal error is possible in a smart city, as complex technology is deployed throughout what are traditionally manual services.
• This kind of high-level technology may prove challenging to an untrained professional, making mistakes more likely.
• While an internal error historically would be limited and inconsequential, adding interconnectivity across an entire city could magnify even a minor mistake and threaten public safety across entire regions.
Management Challenges
• Finally, managing a smart city necessitates the integration of sensors, networks and data analytics. These assets collect vast amounts of data in real-time, but what exactly they are collecting, what the city is doing with that data, and whether it can be used against unsuspecting citizens are all questions left up to individual cities to answer.
• Where a smart city draws the line in terms of safety, privacy and ethics of information sharing is up for debate, but certainly should be of concern to the public.
Further Advancing The Smart City Concept
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Spread Awareness
• Opportunity exists for smart cities champions and partners to help spread awareness across all city departments and entities, not just within the core innovations or connected communities team
• A strong consensus on definition, mission and end-goals on the part of the city / region is mandatory and there is a real fear that vendors can come in and force their solutions on the audience, steering it off target
Keep The Focus on Outcomes for Residents / Citizens
• Partners and implementation teams must keep the focus on what the smart cities outcomes will be “for the citizens”
• Cities need to avoid piling on smart city services onto people with services already piled on
• Smart efforts can be integral to correcting policy imbalances of the past – better serving the underserved segments of the city
Secondary: “Why Smart Cities still aren’t working for us after 20 years. And how we can fix them.,” The Urban Technologist.com, February 1, 2016, retrieved from https://theurbantechnologist.com/2016/02/01/why-smart-cities-still-arent-working-for-us-after-20-years-and-how-we-can-fix-them/
The Smart Cities Concept Should Not Be Defined Simply As The Role Of Technology In City Systems
• The biggest issue relating to smart cities is that they are being discussed in terms of technology, rather than in terms of the citizens’ and residents’ needs, impacts, and willingness/ability to finance new development.
• Smart Cities have usually been defined in technology terms alone rather than by the role of policy in shaping the outcomes of investment. As such the idea has not won widespread interest and support from the highest level of political leadership. Further, they are usually discussed as projects between technology providers, engineers, local authorities and universities, while too often the ordinary people who vote for politicians, pay taxes, buy products, use public services and make businesses work are not even aware of the idea, let alone involved in or engaged in the outcome.
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Planning & Implementing Connected Cities Successfully
Jurisdictions Interoperability
Information Sharing
Shared Services
• Jurisdictional barriers / interoperability of systems are key issues. Coordinating regional partnerships and collaboration – approach as a region, not a city to help overcome judicial / governance issues and public perceptions of isolated benefits.
• City unit data / smart initiatives are often siloed. This needs to be cracked open and shared across departments (facilitate knowledge sharing and case studies).
• Cities often have a core “smart cities” championing group or team, but this must penetrate multiple city departments. Engage stakeholder groups to ensure “smart cities” efforts are not simply an “innovation team” effort.
• Inefficiency of overlapping implementations is a problem currently. For example, across different departments within a city, to the narrower example of having multiple sensor networks on one street light or location – DOT sensors, police sensors, city utilities, etc.
Piecing Together Success
Most Widely Adopted Technology Implementations Across Smart Cities
Secondary Report to the President: Technology and the Future of Cities. President’s Council of Advisors on Science and Technology. February 2016. https://www.whitehouse.gov/sites/whitehouse.gov/files/images/Blog/PCAST%20Cities%20Report%20_%20FINAL.pdf
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Urban Sector Technologies / Concepts Objectives
Transportation
• Multi-modal integration via information and communications
technologies (ICT) applications and models
• On-demand digitally enabled transportation
• Design for biking and walking
• Electrification of motorized transportation
• Autonomous vehicles
• Save time
• Comfort or productivity
• Low-cost mobility and universal access
• Reduced operating expenses to transportation providers
• Zero emissions, collisions, fatalities
• Noise reduction; Lifestyles
• Tailored solutions for the underserved, disabled, and elderly
Energy
• Distributed renewables
• Co-generation
• District heating and cooling; Low-cost energy storage
• Smart-grids, micro-grids
• Energy-efficient lighting; Advanced HVAC systems
• Energy efficiency
• Zero air pollution
• Low noise
• Synergistic resource management with water and transportation
• Increased resilience against climate change and natural disasters
Building &
Housing
• New construction technologies and designs
• Life-course design and optimization
• Sensing and actuation for real-time space management
• Adaptive space design
• Financing, codes, and standards conducive to innovation
• Affordable housing
• Healthy living and working environments
• Inexpensive innovation and entrepreneurial space
• Thermal comfort
• Increased resilience
The Report on Smart Cities to the President laid out several technologies that will be required, based on the type of objectives that have been prioritized by the city.
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• Cities need to be careful not to let specific technology options “wag the dog” and drive a solution that is not really a good fit for the local implementation context.
• Cities need help eliminating the overlap of deployments across various departments – city executives stressed time and again that there are too many redundant implementations of sensor networks across their cities.
“There are endless conferences and reports about Smart Cities, but very, very few of them tackle the issues of financing, investment and policy – they are more likely to describe the technology and engineering solutions behind schemes that appear to create new efficiencies and improvements in transport and energy systems, for example, but that in reality are unsustainable because they rely on one-off research and innovation grants.” - Director of Technology at one of the UK's largest engineering and infrastructure services companies.
Technologies As Tools To Advance The Smart City Concept • Cities can realize greater potential partner buy-in, as well as
longer term success, through implementing and leveraging data clearinghouses or data exchanges – where private or public entities can buy/sell datasets and post their own data collection (this can be a source of revenue for cities to help facilitate greater “smart” adoption)
• Part of the challenge is getting enough incentives in place to have the private sector adequately populate these data exchanges to drive localized innovations (for example a sports stadium sharing attendance and parking data with the city for traffic flows, but also local restaurants and other support services accessing this data)
• “Data as an asset” concept needs to be more fully perpetuated – especially across municipalities considering ways to fully leverage their smart city implementation.
Secondary Why Smart Cities Still Aren’t Working For Us After 20 Years. And How We Can Fix Them, February 1, 2016. https://theurbantechnologist.com/2016/02/01/why-smart-cities-still-arent-working-for-us-after-20-years-and-how-we-can-fix-them/
Industries Leaping Into The Smart City Space
• IoT represents a significant opportunity for any organization that can get a jump-start on competitors.
• The industry is estimated to be worth in the region of $1.7 trillion by 2019, with smart cities taking a sizable proposition of use cases.
• The major players are the telecommunications providers. The telcos, it seems, at a very high level are working to create the infrastructure to make these exciting tools generally available.
• AT&T in 2016 said that it will bring fiber services under the AT&T Fiber branding to 11 more metropolitan areas: Gainesville and Panama City, Florida; Columbus, Georgia; central Kentucky; Lafayette, Louisiana; Biloxi/Gulfport, Mississippi; northeast Mississippi; Wilmington, North Carolina; Knoxville, Tennessee; southwestern Tennessee and Corpus Christi, Texas.
• A big step towards the success of smart cities will revolve around the implementation of 5G.
Secondary: “Smart Cities Will Definitely Happen, Probably.” IT Business Edge. 10 October 2016, “Nokia weighs into the IoT measuring competition.” New Vision. 11 October 2016 “Why cities and automakers really need to talk to each other” 22 September 2016. Smart Cities Council. http://smartcitiescouncil.com/article/why-cities-and-automakers-really-need-talk-each-other)
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• Connected cars are poised to revolutionize urban mobility. • This transformation is driven by changing attitudes toward car
ownership, new and disruptive models of mobility, increased focus on the environmental impacts of driving and congestion.
• IDC forecasts that worldwide spending in 2017 on
connected vehicles will be $29.6 billion and government spending on intelligent transportation systems will be $16.5 billion.
• Smart Cities Council research has shown a need for automotive OEMs and city leaders to collaborate to proactively address the interaction of the connected car on today's city street.
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Where Opportunities Exist to Generate Further Value
“What we're trying to do with a lot of our data systems is use that as the alarm factor which says, hey, here's a neighborhood that there's several of these that could potentially be in trouble. And then we can look at what services do we have? Job retraining services, social services, additional police patrols. To keep a house or a neighborhood from going downhill. So you end up using that as a leading societal indicator. To connect various datasets to try to prevent other greater problems emerging.” – Innovation Officer, Kansas City
• Technology partners can help cities realize greater value from “smart” initiatives if they can be tied to other goals. For example, tying a smart transportation system into addressing issues of homelessness, housing access, affordability, etc.
• Cities and partners must also work together to create a transparent trust framework – not Big Brother, but value-added services derived from data collection.
• Cities and partners also need to open more and more datasets to the public at large. Many of the smart cities analytics can be taken to a higher level if more data from private companies is layered on to datasets generated by a city itself.
Helping Smart Cities Become Ubiquitous
Secondary: “Why Smart Cities still aren’t working for us after 20 years. And how we can fix them.,” The Urban Technologist.com, February 1, 2016, retrieved from https://theurbantechnologist.com/2016/02/01/why-smart-cities-still-arent-working-for-us-after-20-years-and-how-we-can-fix-them/
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Commitment
•A successful approach to a Smart City or community needs the commitment, leadership and active engagement of the most senior local government leaders.
•Successful implementations often have appointed a dedicated Executive officer reporting directly to the Chief Executive and with a clear mandate to create, communicate and drive a collaborative smart strategy and program.
Collaboration
•A collaborative, empowered regional stakeholder forum is needed to convene local resources.
•Most approaches to Smart Cities require coordinated activity by a variety of local organizations.
•That only comes about if those organizations decide to collaborate at the most senior level, mutually agree their objectives for doing so, and meet regularly to agree actions to achieve them.
Consistency
• In order to collaborate, regional stakeholders need to agree a clear, consistent, specific local vision for their future.
•Without that, they will lack a context in which to take decisions that reconcile their individual interests with shared regional objectives; and any bids for funding and investments they make, whether individually or jointly, will appear inconsistent and unconvincing.
Community
•The only people who really know what a smart city should look like are the citizens, taxpayers, voters, customers, business owners and employees who form its community.
•Their voice should lead to the visions and policies to create an environment in which they can flourish.
Smart Cities should be planned with the four tenets, referred to as the “four C’s”: Commitment, Collaboration, Consistency and Community
Helping Smart Cities Become Ubiquitous Additionally, smart cities should be developed using the following principles, which encourage transparency, efficiency, and fairness.
Secondary: “Why Smart Cities still aren’t working for us after 20 years. And how we can fix them.,” The Urban Technologist.com, February 1, 2016, retrieved from https://theurbantechnologist.com/2016/02/01/why-smart-cities-still-arent-working-for-us-after-20-years-and-how-we-can-fix-them/
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1. Include Smart City criteria in the procurement of services by local authorities to encourage competitive innovation from private sector providers. While local authority budgets are under pressure around the world, and have certainly suffered enormous cuts, local authorities nevertheless spend up to billions annually on goods, services and staff time. The majority of procurements that direct that spending still procure traditional goods and services through traditional criteria and contracts.
2. Encourage development opportunities to include “smart” infrastructure. Investors invest in infrastructure and property development because it creates returns for them. These investments are already made in the context of regulations – planning frameworks, building codes and energy performance criteria, for example. Those regulations can be adapted to demand that investments in property and physical infrastructure include investment in digital infrastructure in a way that contributes to local authority and community objectives.
3. Commit to entrepreneurial programs. There are many examples of new urban or public services being delivered by entrepreneurial organizations who develop new business and operating models enabled by technology, such as Uber and Airbnb. Many cities have local investment funds and support services for entrepreneurial businesses, where investments can be linked to local smart city objectives.
4. Enable and support Social Enterprise. The objectives of Smart Cities are analogous to the “triple bottom line” objectives of Social Enterprises – organizations whose finances are sustained by revenues from the products or services that they provide, but that commit themselves to social, environmental or economic outcomes, rather than to maximizing their financial returns to shareholders. A vast number of Smart City initiatives are carried out by these organizations when they innovate using technology. Cities that find a way to systematically enable social enterprises to succeed could unlock a reservoir of beneficial innovation.