Data & Digitalization: Cities of the future

The growth of data

The connected world

Why is it important Digital Connectivity UK govt estimates that 20 of economic value is delivered from 1 investment in digital infrastructure Data driven decision making MIT estimates that organisations that have a culture of data driven decision making are 5% more efficient Savings to healthcare budgets Healthcare services could save $0.5 trillion from the use of big data

Cloud computing is the backbone of future IT

Smart city sectors

What are the benefits of smart technology? Reduce costs of operation Extend operating life of existing infrastructure Optimise resource consumption Improve efficiency Long term financial savings Strengthen city s competiveness Create new economic activity Increase citizen s well-being Improve customer experience

What is smart technology? Application of digital technologies to address social, environmental and economic problems Combine physical and digital infrastructure Require system wide deployment to yield the most benefits Existing processes will need to change Collaboration between multiple actors in the value chain Reduce the whole life costs of systems

Smart parking solutions 23hrs parked 30% cars looking for parking space

Smart parking solutions Integration of off-street parking availability Control Centre Modular set-up of infrastructure based detection Interfaces to payment systems Communication with travelers and enforcement personnel Identification of vehicle-based information, e.g. parking licences and car size Parking Guidance Payment & Pricing Enforcement

Efficiency through connectivity In car Fully automated payment makes payment for parking easy and enables minute-based billing On street Enforcement in Berlin: 255 per space in 2006 (mainly labour costs, but also equipment and overhead costs)

Dynamic parking solution Time spent looking for parking - 43% - 8% traffic volume where parking availability increased double parking when parking availability is increased - 22% - 30% parking related vehicle miles traveled and associated greenhouse gases Public transport performance improves when reducing congestion and double parking Payment avoidance - 20%

Focus of data analytics is changing: From description of past to decision support

Intelligence is the future of infrastructure Build Own Operate (BOO), Build Operate Transfer (BOT), Build Operate Manage (BOM) and Open Business Model (OBM).

The future of infrastructure is about smart solutions

Digitalizing the city

Study topics DOCUMENT How the effective use of large volumes of historic, real time and forecast data can enable infrastructure planners, operators and municipal service providers. MODEL The tangible potential of smart technologies in the sectors of interest, showing the benefits of smart, integrated system in cities, and show a justification for the investment. DEMONSTRATE The business case for investment in these smart and identify the related city actions needed to enable these technologies.

Cities

Infrastructure for Smart Cities Public Transport Buildings ITS/Roads Energy Public Safety

Modelling Approach

Modelling Approach The business case for investing in smart technologies = resource and time efficiency savings

Modelling Approach Model each infrastructure choice Estimate the additional costs borne by the city from introducing new smart technologies Integrate the 3 infrastructure models Quantify the monetary value and economic benefits, which come with integrating the systems through the shared and improved infrastructure

What do we expect to answer? Is there a business case for smart cities? How does it vary between the selected cities and why? Are the returns quicker in different sectors? At which point in time the returns are expected to be materialized? What should cities do to improve and realize the business case? The benefits of data from the chosen technologies The benefits of data from the chosen technologies on other technology sectors (horizontal benefits) The ICT requirement in cities to enable the adoption of smart technologies (with an indicative cost to build into the techno economic model)

The business case for Smart Cities Calculating the Return on Investment The savings are made up of a number of efficiency/benefits including: Reduced travel delay time Reduction in primary energy use Reduction in back up requirements (oversupply issues) such as spinning reserve on the electricity grid. Reduction in maintenance costs Reduced likelihood of failure events Improved resilient response to catastrophic shock events Improvement in citizen healthcare, and reduction in healthcare costs. Benefits are quantified as outputs and then translated into financial terms to assess the cost vs. benefit

Output: Economic benefits of investing in smart technologies

The future of infrastructure Software as a service Computation as a utility Data as a resource

THANK YOU Julie Alexander Director, Urban Development Smart Cities Lead The Crystal 1 Siemens Brothers Way London Phone: +44 (207) 055 6468 Mobile: + 44 (0) 7808 823 058 E-mail: Julie.Alexander@yahoo.com @jacitytalks siemens.com