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Steria : 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 …

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 market.

In this opinion paper François Enaud describes 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.

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  • 1. Smart Cities will beenabled by Smart IT ring Powered by Shaè
  • 2. 01 | Steria - Smart Cities è www.steria.comThe Smart City Market, comprised of Smart Grids, GreenBuildings (low energy consumption and high recycling of waste)and integrated low carbon transportation options is forecast toquadruple in size by 2020 to become a $2.1 trillion market1.Within this paper, François Enaud, Steria CEO, will describe thelandscape against which we share a collective responsibility to lookbeyond a ‘green IT’ agenda to one where ‘Smart IT’ will support amore sustainable and efficient environment.
  • 3. è Steria - Smart Cities | 02 “In 1900, around 14 percent of the world’s population lived in cities, by 1950 this had risen to30 percent and today over half of us are city dwellers. Currently, there are more than 400 citieswith a population over a million, 19 of which have over 10 million inhabitants2. This remarkablegrowth has created vast infrastructure investment needs. This is set to continue as we expect It took nearly 40 years forthat 70 percent of global populations will live in cities by 2050, that’s 6.3 billion people. India’s urban population to rise by nearly 230 million; itEmerging economies are set for the largest urban growth, both in terms of population and GDP. India and will take only half that timeChina will account for 40 percent of global urban population growth from 2005 to 20253. It took nearly to add the next 250 million.40 years (from 1971 to 2008) for India’s urban population to rise by nearly 230 million; it will take only halfthat 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 themwith 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 continuedadvancement of our civilisations. “1. Population growth2. Globalisation3. Urbanisation The issues of the future4. Environmental sustainability alternate between mobility, security, energy efficiency,5. Regulation climate protection6. Technology and quality of life.
  • 4. 03 | Steria - Smart Cities è www.steria.comA smarter futurePopulations, economies and urbanisationOur global population is forecast to reach 9.3 billion people by 20504 and at the same time, the majority of $130countries have an increasingly ageing population. This is set to continue, as our life expectancy increasesand we continue to have fewer children. As a consequence of technological development, the availabilityof capital and governments policies towards economic development, global economic activity is growing asrapidly 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’ time7placing further demands on the efficiency of economic activity and consumption in cities. trillionOur larger city dwelling populations will demand more power, water, waste and transportation services8, The size of the world’s economythe extent of which is staggering. in 20 years time (Double today’s)Environment, regulation and technologyThe Intergovernmental Panel on Climate Change (IPCC) has finally convinced governments that globalwarming is a reality, and that its principle cause is man-made emissions of CO2. If left unchecked thebuild-up of CO2 will have a significant and negative impact on our lifestyles on Earth. In 2007, EU leadersendorsed an integrated approach to climate and energy policy and committed to transforming Europe intoa highly energy-efficient, low carbon economy. They made a unilateral commitment to cut emissions byat least 20 percent of 1990 levels by 2020. The result is that governments have acted to dramatically andimmediately reduce the CO2 emissions resulting from our various activities.At the same time as all this other change, we have experienced multiple revolutions in technologiesincluding in the fields of Information Communications Technology (ICT), renewable energies, ecologicalmaterials and electric vehicles. New technologies are allowing us to build cities that are more convenientfor their inhabitants, more productive and more competitive, whilst reducing CO2 emissions and usingenergy and resources more efficiently. Embedded technology, along with our mobile devices, allows usto understand how each of us interacts with our environment and we have the systems know-how toincreasingly make our urban environment respond to our needs.
  • 5. è Steria - Smart Cities | 04Lifestyles, health and demographicsEnsuring the health and wellness of its citizens is becoming increasingly important for cities to manage as 60+their urban populations are ageing. A quarter of all Europeans will be over 60 by 20309. Harmful emissionsfrom vehicles and industrial activity already causes alarm in cities – a survey of French citizens found that81 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 recyclingwaste. Telemetrics and remote monitoring of city inhabitants can give early warning of impedinghealth issues. Early intervention can save lives and reduce the cost of intervention later, even avoiding A quarter of all Europeanshospitalisation completely. Therefore health telemetrics will become an important strategy for cities will be over 60 by 2030keeping their citizens healthy.Cars are being required to transform from gas guzzling sports and SUV’s (Sports Utility Vehicles) toHybrid 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 abad deal. People are increasingly wanting to use public transport where it is convenient and in other 81%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 toenable it to operate effectively. Amount of French citizens concerned about air quality
  • 6. 05 | Steria - Smart Cities è www.steria.comSmarter CitiesSmart CitiesA Smart City is the integration of technology into a strategic approach to sustainability, citizen well-being, 500and economic development. The key industry and service sectors for Smart Cities include Smart Grids, SmartTransport, Smart Building and Smart Government. Increasingly, the availability and quality of knowledgecommunication and social infrastructure (‘intellectual and social capital’) are seen as key for a city’scompetitiveness. Using technology to dematerialise the way we work across public and private sectors coulddeliver a reduction of 500 million tonnes of CO2 in 202012 and will therefore be a policy goal that many citiesand governments will want to pursue. Technologies that will enhance the intelligence and connectedness million tonnesof 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 Reduction in CO2 that could be achievedto measure, streamline and share resources within the city. by using technology in 2020Smart GridsSmart Grids will enable better anticipation of energy consumption, reduction of energy peaks and thebetter integration of renewable energies within the network. Improved monitoring and managementof electricity grids, first with smart meters and then by integrating more advanced ICT into the energynetwork, could globally reduce 2.03 Giga tonnes of CO2, worth $124.6 billion14. 74 percent of citizens, in arecent UK study, say they feel that better access to energy information will change their energy and waterconsumption levels15.
  • 7. è Steria - Smart Cities | 06Smart TransportSmart Transportation solutions connect passengers and transport systems and resources in real time to allow 74%efficient, convenient and low carbon movement within and in and out of the city. Maintenance and servicingis facilitated by on-board sensors to ensure optimum utilisation. Public transport is facilitated around the citywith multi-mode solutions mixing the use of private transport and parking facilities on the outskirts of citieswith metros and buses connecting travellers with the heart of the city.Delivering the benefits of Smart Transport relies heavily on massively integrated systems, information andservices. These combine to optimise the flow of transport and reduce wasted time and energy and the Amount of UK citizens that feel that better access to energygeneration of unnecessary CO2 at peak travelling times. information would change their energy and water consumptionTraveller information is at the heart of any Smart Transport capability. Mobile phone applications alertpassengers to the fastest route to their destination and the systems can predict the likely usage of thevarious transport systems as a consequence of the information provided. All this ensures the maximumutilisation of transport infrastructure with the minimum congestion and as a consequence, happier and moreproductive citizens and lower CO2 emissions.Smart Buildings 6xSmart 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 andservice providers to better track, control and reduce use and generation of electricity and the demands forother services. The use of natural resources (light, shadows, rain), is streamlined within the building, takingweather conditions into account and, ultimately, energy use is anticipated. The demand for water to increase in the next 50 yearsSmart GovernanceRequires the integration of planning, policy and information across all of the departments and servicesprovided by the city and all its stakeholders. Information flows will be managed through ICT automation andcitizen engagement facilitated through ICT online systems, available 24/7.
  • 8. 07 | Steria - Smart Cities è www.steria.comSmarter technologiesThe critical role of Information Communications TechnologyInformation and communication technologies will be at the forefront of the effort to improve the Developing the Smart Cityefficiency and effectiveness of urban systems and services, both in developed and emerging economies. There are six components toA May 2011 report from Pike Research forecasts that investment in Smart City technology infrastructure successfully develop Smart Cities:will total $108 billion during the years from 2010 to 202016. By the end of that period, annual spending will reach nearly $16 billion. 1 Integrated view ofICT solutions will enable consumers and businesses to see their energy use and emissions in real time and city governancewill provide them with the means for optimising their systems and processes to make them more efficient. 2 Rationalise complexAs we are looking for efficiency savings equal to 15 percent of global emissions, the breadth of solutions IT environmentsmust span transport, motor systems, logistics, buildings and electricity grids, across all key economies. At 3 City-wide systems integrationthe same time, we will be looking to ICT to make our lives greener by being more ‘virtual’, through onlineshopping, tele-working, videoconferencing, tele-presence and engaging in virtual worlds for all manner of 4 Engage cloud and outsourced servicescommercial and social activities. 5 Outsource and cloudSimplification and standardisation service management 6 Network of solutionsA Smart City will require considerable systems integration and, before that can happen effectively, a largescale 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 Immobilierare undertaking such a project in 2011, implementing a Smart Grid in Issy near Paris. This projectillustrates the partnering approach required to deliver the breadth of services needed by the city and it’s $108inhabitants. Partners in the venture include, Steria, Microsoft, EDF, Schneider Electric, Alstom, ETDE andBouygues 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 transportservices for customers and the integration of many forms of information. The outcome will be capabilities billionto integrate more intelligence into utilities grids and to execute governance of all of the facilities involved. Investment in Smart CityWith the luxury of building a city from scratch, Masdar City, in Abu Dhabi were able to design a city to be technology from 2010 to 2020carbon free and smart from the outset – an ‘instant-city’ if you will, with a Smart Grid at its heart, manyinstant-cities will be needed across the world in the coming decades.
  • 9. è Steria - Smart Cities | 08Getting help “With the advent of ‘Cloud’ computing and services, cities have available a myriad set of online capabilitiesand 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 oftheir physical services, creates a complex management task that will be a critical success factor for cities tomaster as they move towards realising a Smart City and low carbon vision. For cities to maximise their green 136 new cities are expectedcredentials and create the most cost effective, eco-friendly, competitive environment, they will need to call to enter the top 600, all ofon expert providers to meet their systems and service needs in all of their areas of responsibility. them from the developing world and overwhelmingly –Call to action 100 new cities from ChinaRapidly growing global populations are ageing and urbanising fast. At the same time, their economic activityis increasing, as is their need for homes and infrastructure to support them and also their consumption offood 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 recyclingare major policy issues for governments and cities to address. 60 years ago there were only three billionpeople on earth and under one billion lived in towns and cities. Today 3.5 billion people live in cities and injust four decades there will be 6.3 billion people relying on environmentally sustainable, clean and efficientcities 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, whereSatellite access in cars might replace the roadmap, or where a Smartphone or Tablet would even exist. Nowthat we have an inkling of how fast the future will be upon us, we need to face it head on. Waiting until thechallenges 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.
  • 10. 09 | Steria - Smart Cities è www.steria.comSteriaSmart ITProjects already deployed and proven by Steria include urban transport optimisation for intelligent traffic Steria – partnering in buildingmanagement; real-time traffic and public transport displays, both to display panels and on mobile phones, Smart Citiesto improve the passenger experience and, by extension, help reduce reliance on private passenger vehiclesin cities; use of GPRS and 3G networks to position target population groups and support people with special 1 ndustry and business Ineeds, for example senior citizens suffering from Alzheimers, enabling automatic geo-localisation of these know how and experiencepopulations and facilitating web/SMS/mobile checks. Whilst these are all constituent elements of the Smart 2 Aggregating offeringsCity vision, we can already do more. 3 anaging large and M complex programmesA ‘Smart and Green’ head office with many playersDemonstrating a commitment to helping to develop a low carbon economy through the increased use of 4 Enabling full governanceSmart Buildings Steria has developed its own! of ‘Smart Cities’Consolidating several offices into one new smart 24,000m2 building has increased staff integration and 5 Delivering ‘Smart Cities’produced an energy positive building, that by some 30 percent already exceeds the French Grenelle 2 as a Serviceenvironmental 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 powersource will provide all of the 1,250 occupants energy needs. The building itself is oriented in such a way asto 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 managementsystems and has been designed and developed in partnership with Bouygues Immobilier. Shutters andventilators avoid the need for any air conditioning and staff are encouraged to walk up to two floors ratherthan use the elevators.In the future Steria’s own weather experts will implement systems that will anticipate weather conditionsand integrate this information with the buildings occupants’ energy and environmental needs to use themost renewable energy sources and limit waste.So we don’t have to wait – the technology already exists to make it work.
  • 11. è Steria - Smart Cities | 10Know-how and experienceWith 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, cloudcomputing, dematerialisation and ergonomy, Steria is positioned to bring intelligence to everyday processesand 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 Follow our thoughts onof concepts to engage in major innovative projects, Steria wants to work with its clients to push the concept twitter @SteriaInnovateof Smart Cities further, using consulting expertise and change management capabilities to lead projects fromconcept and technology to reality. Smart Cities are not only about the future; IT has a fundamental role inrealising this vision today.For more thoughts about the future read ‘The Future’ report more about our capabilities at www.steria.comReferences1 Source: Smart 2020 Report: Source: AFP, March 2011: Source: McKinsey Quarterly: Source: United Nations: Source: World Bank Development Indicators: ttp:// enhl=enq=world+gdp h Source: The World in 2050 – HSBC: Source: The Super-Cycle report – Standard Chartered Bank: Source: Cohen Steers Global Infrastructure Fund 2009: Source: Population Reference Bureau: Source: IFOP Survey – June 200911 Source: Wikipedia: Source: Smart 2020 report: Source: Pike Research: Source: Smart 2020 Report: Source: The Climate Group SMART 2020 report: Source: Pike Research:
  • 12. About Steria www.steria.comSteria delivers IT enabled business services which help organisations in thepublic and private sectors operate more efficiently and profitably. By combiningan in depth understanding of our clients’ businesses with expertise in IT andbusiness process outsourcing, we take on our clients’ challenges and developinnovative solutions to address them. Through our highly collaborativeconsulting style, we work with our clients to transform their business, enablingthem to focus on what they do best. Our 20,000 people, working across 16countries, support the systems, services and processes that make today’s worldturn, touching the lives of millions around the globe each day.Founded in 1969, Steria has offices in Europe, India, North Africa andSE Asia and a 2010 revenue of €1.69 billion. 20 percent of Steria’s capitalis owned by its employees. Headquartered in Paris, Steria is listed on theEuronext Paris market.43-45 Quai du President RooseveltF-92782 Issy-Les-Moulineaux cedex, FranceTel: +33 1 34 88 60 00 Fax: +33 1 34 88 69 69For further information about our services visit © Steria GISL_Smart001 September 2011