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Smart Water nella Città del Futuro - Giorgio Fiorentini: Water: the most valuable «Common» Asset for sustainable and smart development

Intervento di Giorgio Fiorentini al convegno "Smart Water nella Città del Futuro" - Milano, 22/10/2015

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Smart Water nella Città del Futuro - Giorgio Fiorentini: Water: the most valuable «Common» Asset for sustainable and smart development

  1. 1. SMART CITIES, SMART WATER Water: the most valuable «Common» Asset for sustainable and smart development 1 October 2015 Giorgio Fiorentini Associate Professor, Bocconi University President, ATO Città di Milano giorgio.fiorentini@sdabocconi.it Smart Water in the city of the future 22 ottobre 2015, Palazzo Turati Milano
  2. 2. Main Summary 2 From a Smart City... • Definition • Relevance …to Smart Water • Relevance • Main Characteristics • Value Creation Implementation • Pillars & Principles • Examples & Cases • Governance • Stakeholders’ map • Planning Synergies between the two concepts
  3. 3. 3 The definition of a smart city «is a city which performs well in six particular areas built on the “smart” combination of the financial and business autonomy of its citizens» 1. Giffinger et al, (2007: 11) Smart Mobility Smart Economy Smart Environment Smart People Smart Living Smart Governance Smart City
  4. 4. 4 Why we should have Smart Cities: 50% of the world’s population lives in cities … … rising to 70%in 2050
  5. 5. 5 Smart Cities: Characteristics Sustainability Inclusive Governance Efficiency and Cost Saving Social Value Resources rather than Commodities
  6. 6. 6 The Value of Smart Water “Smart Water means leveraging the value of the resource by considering not only its effective price (i.e., cost coverage for distribution,cost recovery), but also the impact that the resource has on the development of a city, citizen participation , and the overall welfare of a community: its Social Value”.
  7. 7. 7 Territorial • When deciding about Water the region’s characteristics must be fully taken into consideration Social • Management must aim at creating value for the Community, in a sustainable and inclusive way Economic • Efficiency, cost- saving, long-term Sustainability must be followed and enforced by management Ecological • Water is connected with other Natural resources: this implies an integrated management across all of them Smart Water: four management pillars
  8. 8. 8 Smart management: Main Principles Agriculture • Minimize waste in the production chain Manufacturing • Improve Corporate Social Responsibility (CSR) • Minimize waste in the production chain • Water recycling Domestic • Leverage price to adjust demand • Sustainable nutrition • Reduction of domestic consumption
  9. 9. Smart management: Cases Increase Social Value Milano: Water houses distribute water for free => -30 millions bottles (yearly) => 1100 tons of plastic saved => environmental and economic gains Waste Reduction Aci Bonaccorsi, Catania: Impose the use of tap water for school canteens. Savings to build water houses for the whole population => better allocation to increase social welfare Edutainment Capannori, Lucca: Streams and Rivers transformed into educational experiences for children and tourists. Provide high-quality public water and teach best practices => Educate to reduce consumption
  10. 10. 10 Rights • Perceive the impact that the public resource can have on their welfare • Be actively involved in the decision-making process • Be made fully aware of the costs and the strategic plans related to the governance of the resource Responsibilities • Behave in such a way as to value the resource at its best • Properly reduce and limit usage, avoiding waste • Learn to appreciate the value of this public good for the community Active Governance: Involvement of Citizens Controllership Education Social Companies Usage Awareness Transparency and accountability – open data Direct Involvement Smart Water
  11. 11. 11 Smart City Smart Water Citizens Companies Municipalities Social Interest Groups Social Companies Controlling Institutions National GovernmentNeighboring regions Managing company Social enterprise«ex lege», non profit utility S.r.l./S.p.A. without distributing earnings Public utility company S.r.l./S.p.A. with limited earnings’ distribution and pay-out ratio Social companies have the same stakeholders Governance Design
  12. 12. 12 Investment-Side • Crucial for a strategic development plan of the resource in order to foster innovation and proactively cope with management issues • Significantly reduces current maintenance costs Cost-Side • Reactive approach: attempting to solve existing issues without strategically planning future development • Avoids huge resources being spent or reserved for the future and is less impactful on imbalances Enhanced decision-making with collaboration and predictive insights to plan impactful investments Investment Maintainance High economic resources needed Higher price, higher quality, strategic plan implemented May negatively affects political consensus Increasing costs over time Lower quality, not perceived as bad management Low price, may increase/stabilize political consensus Long-term planning
  13. 13. 13 Stakeholders Objectives Planning Governance Characteristics Mobility Infrastructures Environment Social Value Controllership Long-term Investments Public Safety Synergies between Smart Cities and Smart Water
  14. 14. 14 Stakeholders Objectives Planning Governance Characteristics Mobility Infrastructures Environment Social Value Controllership Long-term Investments Public Safety Email address: giorgio.fiorentini@sdabocconi.it
  15. 15. 15 References Barilla Center For Food & Nutrition (2009). Water Management. Fiorentini, G. e F. Calò (2013). Impresa sociale & Innovazione sociale. Milano: Franco Angeli. Giupponi, C. et al. (2006). Sustainable Management of Water Resources. Edward Elgar Publishing Limited, UK. Schouten, M. e K. Schwartz (2006). Water as a political good: implications for investments. Springer Science. Staddon, C. (2010). Managing Europe’s Water Resources. Farnham, England Ashgate Publishing Limited. Osservatorio Smart City ANCI (2015). Vademecum per la città intelligente. Edizioni Forum PA. http://www.smartcities.at/assets/Publikationen/Weitere-Publikationen-zum-Thema/mappingsmartcities.pdf https://www-01.ibm.com/marketing/iwm/iwm/web/signup.do?source=ind-enurture_short_form&S_PKG=ov23752

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Intervento di Giorgio Fiorentini al convegno "Smart Water nella Città del Futuro" - Milano, 22/10/2015

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