Steria : Smart cities will be enabled by smart IT

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Smart Cities will be enabled by Smart IT

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The Smart City Market, comprised of Smart Grids, Green Buildings (low energy consumption and high recycling of waste) and integrated low carbon transportation options is forecast to quadruple in size by 2020 to become a $2.1 trillion market1.

Within this paper, François Enaud, Steria CEO, will describe the landscape against which we share a collective responsibility to look beyond a ‘green IT’ agenda to one where ‘Smart IT’ will support a more sustainable and efficient environment.

01 | Steria - Smart Cities è www.steria.com

In 1900, around 14 percent of the world’s population lived in cities, by 1950 this had risen to

30 percent and today over half of us are city dwellers. Currently, there are more than 400 cities

with a population over a million, 19 of which have over 10 million inhabitants2. This remarkable

growth has created vast infrastructure investment needs. This is set to continue as we expect

that 70 percent of global populations will live in cities by 2050, that’s 6.3 billion people.

Emerging economies are set for the largest urban growth, both in terms of population and GDP. India and China will account for 40 percent of global urban population growth from 2005 to 20253. It took nearly 40 years (from 1971 to 2008) for India’s urban population to rise by nearly 230 million; it will take only half that time to add the next 250 million.

If we are to live sustainably as city dwellers we will have to change how our cities operate and imbue them with technologies that allow them to run increasingly efficiently, in short, we need ‘Smart Cities’.

There are six global drivers of change that are making Smart Cities an absolute necessity for the continued advancement of our civilisations.

1. Population growth

2. Globalisation

3. Urbanisation

4. Environmental sustainability

5. Regulation

6. Technology

“It took nearly 40 years for India’s urban population to rise by nearly 230 million; it will take only half that time to add the next 250 million.

“The issues of the future alternate between mobility, security, energy efficiency, climate protection and quality of life.

Steria - Smart Cities | 02 è www.steria.com

Populations, economies and urbanisation

Our global population is forecast to reach 9.3 billion people by 20504 and at the same time, the majority of countries have an increasingly ageing population. This is set to continue, as our life expectancy increases and we continue to have fewer children. As a consequence of technological development, the availability of capital and governments policies towards economic development, global economic activity is growing as rapidly as its population. The world economy grew threefold, to reach $62 trillion today, in just 20 years5. It is forecast to triple again by 20506, indeed it will have doubled to over $130 trillion in just 20 years’ time7 placing further demands on the efficiency of economic activity and consumption in cities.

Our larger city dwelling populations will demand more power, water, waste and transportation services8,the extent of which is staggering.

Environment, regulation and technology

The Intergovernmental Panel on Climate Change (IPCC) has finally convinced governments that global warming is a reality, and that its principle cause is man-made emissions of CO2. If left unchecked the build-up of CO2 will have a significant and negative impact on our lifestyles on Earth. In 2007, EU leaders endorsed an integrated approach to climate and energy policy and committed to transforming Europe into a highly energy-efficient, low carbon economy. They made a unilateral commitment to cut emissions by at least 20 percent of 1990 levels by 2020. The result is that governments have acted to dramatically and immediately reduce the CO2 emissions resulting from our various activities.

At the same time as all this other change, we have experienced multiple revolutions in technologies including in the fields of Information Communications Technology (ICT), renewable energies, ecological materials and electric vehicles. New technologies are allowing us to build cities that are more convenient for their inhabitants, more productive and more competitive, whilst reducing CO2 emissions and using energy and resources more efficiently. Embedded technology, along with our mobile devices, allows us to understand how each of us interacts with our environment and we have the systems know-how to increasingly make our urban environment respond to our needs.


$130The size of the world’s economy in 20 years time (Double today’s)

trillion

A smarter future

Lifestyles, health and demographics

Ensuring the health and wellness of its citizens is becoming increasingly important for cities to manage as their urban populations are ageing. A quarter of all Europeans will be over 60 by 20309. Harmful emissions from vehicles and industrial activity already causes alarm in cities – a survey of French citizens found that 81 percent are worried about air quality and 35 percent were concerned about indoor air quality10.Building healthy cities and buildings will become as critical as using clean energy sources and recycling waste. Telemetrics and remote monitoring of city inhabitants can give early warning of impeding health issues. Early intervention can save lives and reduce the cost of intervention later, even avoiding hospitalisation completely. Therefore health telemetrics will become an important strategy for cities keeping their citizens healthy.

Cars are being required to transform from gas guzzling sports and SUV’s (Sports Utility Vehicles) to Hybrid and electric vehicles (EV) powered by eco-friendly power plants. In more densely packed cities, car ownership has been on the wane for many years11. Add the need to change your vehicle’s powersource to comply with increasingly demanding environmental legislation, then ownership looks like a bad deal. People are increasingly wanting to use public transport where it is convenient and in other cases are showing their willingness to share cars and other transport sources on an as-needed basis. Cities will want to encourage this trend and provide the physical and technological infrastructure to enable it to operate effectively.


60+A quarter of all Europeans

will be over 60 by 2030

81%Amount of French citizens

concerned about air quality

Smart Cities

A Smart City is the integration of technology into a strategic approach to sustainability, citizen well-being, and economic development. The key industry and service sectors for Smart Cities include Smart Grids, Smart Transport, Smart Building and Smart Government. Increasingly, the availability and quality of knowledge communication and social infrastructure (‘intellectual and social capital’) are seen as key for a city’s competitiveness. Using technology to dematerialise the way we work across public and private sectors could deliver a reduction of 500 million tonnes of CO2 in 202012 and will therefore be a policy goal that many cities and governments will want to pursue. Technologies that will enhance the intelligence and connectedness of the city include; smart meters, sensor networks, fibre optic and wireless communication networks, software to provide data analytics for city services, and myriad other hardware and software components13

to measure, streamline and share resources within the city.

Smart Grids

Smart Grids will enable better anticipation of energy consumption, reduction of energy peaks and the better integration of renewable energies within the network. Improved monitoring and management of electricity grids, first with smart meters and then by integrating more advanced ICT into the energy network, could globally reduce 2.03 Giga tonnes of CO2, worth $124.6 billion14. 74 percent of citizens, in a recent UK study, say they feel that better access to energy information will change their energy and water consumption levels15.


500Reduction in CO2 that could be achieved

by using technology in 2020

million tonnes

Smarter Cities


Smart Transport

Smart Transportation solutions connect passengers and transport systems and resources in real time to allow efficient, convenient and low carbon movement within and in and out of the city. Maintenance and servicing is facilitated by on-board sensors to ensure optimum utilisation. Public transport is facilitated around the city with multi-mode solutions mixing the use of private transport and parking facilities on the outskirts of cities with metros and buses connecting travellers with the heart of the city.

Delivering the benefits of Smart Transport relies heavily on massively integrated systems, information and services. These combine to optimise the flow of transport and reduce wasted time and energy and the generation of unnecessary CO2 at peak travelling times.

Traveller information is at the heart of any Smart Transport capability. Mobile phone applications alert passengers to the fastest route to their destination and the systems can predict the likely usage of the various transport systems as a consequence of the information provided. All this ensures the maximum utilisation of transport infrastructure with the minimum congestion and as a consequence, happier and more productive citizens and lower CO2 emissions.

Smart Buildings

Smart Buildings use smart meters, sensors and monitoring devices to connect heating, air conditioning, lighting, security systems, and other appliances and systems in homes and businesses, enabling users and service providers to better track, control and reduce use and generation of electricity and the demands for other services. The use of natural resources (light, shadows, rain), is streamlined within the building, taking weather conditions into account and, ultimately, energy use is anticipated.

Smart Governance

Requires the integration of planning, policy and information across all of the departments and services provided by the city and all its stakeholders. Information flows will be managed through ICT automation and citizen engagement facilitated through ICT online systems, available 24/7.

74%

6x

Amount of UK citizens that feel that better access to energy

information would change their energy and water consumption

The demand for water to increase in the next 50 years

The critical role of Information Communications Technology

Information and communication technologies will be at the forefront of the effort to improve the efficiency and effectiveness of urban systems and services, both in developed and emerging economies. A May 2011 report from Pike Research forecasts that investment in Smart City technology infrastructure will total $108 billion during the years from 2010 to 202016. By the end of that period, annual spending will reach nearly $16 billion.

ICT solutions will enable consumers and businesses to see their energy use and emissions in real time and will provide them with the means for optimising their systems and processes to make them more efficient. As we are looking for efficiency savings equal to 15 percent of global emissions, the breadth of solutions must span transport, motor systems, logistics, buildings and electricity grids, across all key economies. At the same time, we will be looking to ICT to make our lives greener by being more ‘virtual’, through online shopping, tele-working, videoconferencing, tele-presence and engaging in virtual worlds for all manner of commercial and social activities.

Simplification and standardisation

A Smart City will require considerable systems integration and, before that can happen effectively, a large scale systems rationalisation effort will be required. Simplification and standardisation (where possible) will be key enablers of the integrated Smart City. Retro-fitting existing cities will be a considerable task, but one that is vital if nations are to meet their carbon emission reduction targets. Bouygues Immobilier are undertaking such a project in 2011, implementing a Smart Grid in Issy near Paris. This project illustrates the partnering approach required to deliver the breadth of services needed by the city and it’s inhabitants. Partners in the venture include, Steria, Microsoft, EDF, Schneider Electric, Alstom, ETDE and Bouygues Telecom.

For Steria the project is a proof of concept opportunity to integrate domain knowledge in utilities, digitalisation business processes, measurement and governance of buildings, use of energy and transport services for customers and the integration of many forms of information. The outcome will be capabilities to integrate more intelligence into utilities grids and to execute governance of all of the facilities involved.

With the luxury of building a city from scratch, Masdar City, in Abu Dhabi were able to design a city to be carbon free and smart from the outset – an ‘instant-city’ if you will, with a Smart Grid at its heart, many instant-cities will be needed across the world in the coming decades.


Developing the Smart City

There are six components to successfully develop Smart Cities:

1 Integrated view of city governance

2 Rationalise complex IT environments

3 City-wide systems integration

4 Engage cloud and outsourced services

5 Outsource and cloud service management

6 Network of solutions

$108Investment in Smart City

technology from 2010 to 2020

billion

Smarter technologies

Getting help

With the advent of ‘Cloud’ computing and services, cities have available a myriad set of online capabilities and resources that will interact with their physical infrastructure to meet the needs of their departments, including; transport, healthcare, education, water, energy and waste. This, along with the management of their physical services, creates a complex management task that will be a critical success factor for cities to master as they move towards realising a Smart City and low carbon vision. For cities to maximise their green credentials and create the most cost effective, eco-friendly, competitive environment, they will need to call on expert providers to meet their systems and service needs in all of their areas of responsibility.

Call to action

Rapidly growing global populations are ageing and urbanising fast. At the same time, their economic activity is increasing, as is their need for homes and infrastructure to support them and also their consumption of food and consumer goods. As a consequence, their resource utilisation, including buildings, infrastructure, energy, water, transport and consumer goods of all sorts and the need for waste management and recycling are major policy issues for governments and cities to address. 60 years ago there were only three billion people on earth and under one billion lived in towns and cities. Today 3.5 billion people live in cities and in just four decades there will be 6.3 billion people relying on environmentally sustainable, clean and efficient cities to live and work in. Sustainable, Smart Cities will go a long way to meet these needs.

Twenty years ago few of us could perceive a world where laptops could weigh less than a kilo, where Satellite access in cars might replace the roadmap, or where a Smartphone or Tablet would even exist. Now that we have an inkling of how fast the future will be upon us, we need to face it head on. Waiting until the challenges are upon us will be too late. We have a collective responsibility to do more – not just plan more – today. It will be a false economy to prevaricate.


“136 new cities are expected to enter the top 600, all of them from the developing world and overwhelmingly – 100 new cities from China

Smart IT

Projects already deployed and proven by Steria include urban transport optimisation for intelligent traffic management; real-time traffic and public transport displays, both to display panels and on mobile phones, to improve the passenger experience and, by extension, help reduce reliance on private passenger vehicles in cities; use of GPRS and 3G networks to position target population groups and support people with special needs, for example senior citizens suffering from Alzheimers, enabling automatic geo-localisation of these populations and facilitating web/SMS/mobile checks. Whilst these are all constituent elements of the Smart City vision, we can already do more.

A ‘Smart and Green’ head office

Demonstrating a commitment to helping to develop a low carbon economy through the increased use of Smart Buildings Steria has developed its own!

Consolidating several offices into one new smart 24,000m2 building has increased staff integration and produced an energy positive building, that by some 30 percent already exceeds the French Grenelle 2 environmental building energy consumption standard, due to come into force in 2020. This new ‘Green’ building has 4,200m2 of solar panels, which when combined with its efficient, combined heat and power source will provide all of the 1,250 occupants energy needs. The building itself is oriented in such a way as to maximise the benefit of sunlight for lighting and takes advantage of the nearby forest for fresh air.

The ‘Smart and Green’ head office, just outside Paris, in Meudon, is utilising Steria’s own management systems and has been designed and developed in partnership with Bouygues Immobilier. Shutters and ventilators avoid the need for any air conditioning and staff are encouraged to walk up to two floors rather than use the elevators.

In the future Steria’s own weather experts will implement systems that will anticipate weather conditions and integrate this information with the buildings occupants’ energy and environmental needs to use the most renewable energy sources and limit waste.

So we don’t have to wait – the technology already exists to make it work.

09 | Steria - Smart Cities

Steria

è www.steria.com

Steria – partnering in building Smart Cities

1 Industry and business know how and experience

2 Aggregating offerings

3 Managing large and complex programmes with many players

4 Enabling full governance of ‘Smart Cities’

5 Delivering ‘Smart Cities’ as a Service

Know-how and experience

With the alliance of business expertise in e-government, Smart Transport, eco-driving, energy management, utilities billing, green-building, e-payment and technological skills on mobility, virtualisation, cloud computing, dematerialisation and ergonomy, Steria is positioned to bring intelligence to everyday processes and extend the scope of the city to all members of the community, linking economic and social issues.

Currently involved in providing eco-districts solutions, and already integrating smart solutions through proof of concepts to engage in major innovative projects, Steria wants to work with its clients to push the concept of Smart Cities further, using consulting expertise and change management capabilities to lead projects from concept and technology to reality. Smart Cities are not only about the future; IT has a fundamental role in realising this vision today.

For more thoughts about the future read ‘The Future’ report at www.steria.com/futuresreport

Find more about our capabilities at www.steria.com


References 1 Source: Smart 2020 Report: http://smart2020.org/_assets/files/02_Smart2020Report.pdf

2 Source: AFP, March 2011: http://www.google.com/hostednews/afp/article/ALeqM5jxaLy5_RK1uObXxQSV68K8AFxffg?docId=CNG.c35e2f78df8589a1f99188c72ecb2a30.611

3 Source: McKinsey Quarterly: https://www.mckinseyquarterly.com/Economic_Studies/Country_Reports/Comparing_urbanisation_in_China_and_India_2641

4 Source: United Nations: http://www.ippf.org/en/News/Intl+news/UN+Predicts+9.3+Billion+Population+by+2050.htm

5 Source: World Bank Development Indicators: http://www.google.com/publicdata?ds=wb-wdi&met_y=ny_gdp_mktp_cd&tdim=true&dl en&hl=en&q=world+gdp

http://data.worldbank.org/data-catalog/world-development-indicators?cid=GPD_WDI

6 Source: The World in 2050 – HSBC: http://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=ej73gSSJVj&n=282364.PDF

7 Source: The Super-Cycle report – Standard Chartered Bank: http://www.standardchartered.com/media-centre/press-releases/2010/documents/20101115/The_Super-cycle_Report.pdf

8 Source: Cohen & Steers Global Infrastructure Fund 2009: http://www.cohenandsteers.com/downloads/14/fundguide.pdf

9 Source: Population Reference Bureau: http://www.prb.org/Publications/Datasheets/2006/EuropesPopulationAgingWillAccelerateSaysDataSheet.aspx

10 Source: IFOP Survey – June 2009

11 Source: Wikipedia: http://en.wikipedia.org/wiki/List_of_U.S._cities_with_most_households_without_a_car

12 Source: Smart 2020 report: http://smart2020.org/_assets/files/01_Smart2020ReportSummary.pdf

13 Source: Pike Research: http://www.pikeresearch.com/newsroom/global-investment-in-smart-city-technology-infrastructure-to-total-108-billion-by-2020

14 Source: Smart 2020 Report: http://smart2020.org/_assets/files/02_Smart2020Report.pdf

15 Source: The Climate Group SMART 2020 report: http://smart2020.org/_assets/files/02_Smart2020Report.pdf

16 Source: Pike Research: http://www.pikeresearch.com/newsroom/global-investment-in-smart-city-technology-infrastructure-to-total-108-billion-by-2020

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About Steria www.steria.com

Steria delivers IT enabled business services which help organisations in the public and private sectors operate more efficiently and profitably. By combining an in depth understanding of our clients’ businesses with expertise in IT and business process outsourcing, we take on our clients’ challenges and develop innovative solutions to address them. Through our highly collaborative consulting style, we work with our clients to transform their business, enabling them to focus on what they do best. Our 20,000 people, working across 16 countries, support the systems, services and processes that make today’s world turn, touching the lives of millions around the globe each day.

Founded in 1969, Steria has offices in Europe, India, North Africa and SE Asia and a 2010 revenue of €1.69 billion. 20 percent of Steria’s capital is owned by its employees. Headquartered in Paris, Steria is listed on the Euronext Paris market.

© Steria GISL_Smart001 September 2011

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