1. On the Road to
Smart Cities
21st September 2015
Opportunities and
Challenges

2. Reminder…
On the Road to Smart Cities – Opportunities and Challenges2
Rank French city Population
Twin-city in
China
Population Factor
1 Paris 2,181,371 Beijing 21,516,000 10x
2 Marseille 839,043 Shanghai 24,256,800 29x
3 Lyon 472,305 Guangzhou 11,264,800 24x
4 Toulouse 437,715 Chongqing 17,830,100 41x
5 Nice 347,060 Hangzhou 7,081,700 20x
6 Nantes 282,853 Qingdao 4,587,183 16x
7 Strasbourg 272,975 Nanjing 7,347,900 27x
8 Montpellier 251,634 Chengdu 7,415,590 29x
9 Bordeaux 232,260 Wuhan 10,220,000 44x
11 Rennes 209,613 Jinan 4,335,989 21x
TOTAL 5,526,829 115,856,062 21x
Chinese cities are more than out 20 times larger in population than French cities
Source: Wikipedia

3. As the development process is under way…
On the Road to Smart Cities – Opportunities and Challenges3
….China’s urbanisation rate will increase from 56% in 2015 to 69% by 2030
• Nearly 1 billion people will be living in cities at that time, compared to about 780 million today.
• In other words, Chinese cities will have to absorb 220 million people within 15 years
Source: United Nations - Department of Economic and Social Affairs -World Urbanization Prospects: The 2014 Revision
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Proportions of urban vs. rural populations
Urban Rural
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
inthousands
Total population - China
Urban Rural

4. Urbanisation will put important strain on existing cities
On the Road to Smart Cities – Opportunities and Challenges4
Transport and traffic
management
Healthcare
Government
services
Water and waste
Energy
Education

5. Smart Cities as one element in the solution mix
On the Road to Smart Cities – Opportunities and Challenges5
According to Gartner, a smart city is:
“An urbanized area where multiple sectors cooperate to achieve
sustainable outcomes through the analysis of contextual real-time
information shared among sector-specific information and operational
technology systems.”
Improved quality and
performance of urban
services
Reduced costs and
resource consumption
Enhanced and more
effective engagement
with citizens

6. Case 1: Chongqing (and others) - Bus tracking app
On the Road to Smart Cities – Opportunities and Challenges6
• Chelaile (Chinese for “The bus is coming”)
• Smart travel assistant / planner
• Provides real-time information about:
‒ When (in how many minutes) the next bus is
coming
‒ Its current location
‒ Distance (in km) to the exit stop
‒ Predicted arrival time at destination
• Reminds users about imminent arrival
(through vibration)
• Optimises and recommends travel routes
• Delivers location-based information

7. Case 2: Ningxia (Medical University Hospital) – Smart grid
On the Road to Smart Cities – Opportunities and Challenges7
• Centralised power management platform that:
‒ Automatically records all the parameters in the
system
‒ Connects with all the different monitoring units
‒ Produces power usage reports in real-time
‒ Analyses trends, cyclicality and seasonality to
forecast power usage, predicting and preventing
power outages
• Outcomes:
‒ Enhanced monitoring, analysis, control, and thus
overall management of the hospital’s power
supply
‒ Increased reliability and safety of the power
system
‒ Improved energy efficiency

8. Case 3: Guangzhou Leighton Apartments – Connected Home
On the Road to Smart Cities – Opportunities and Challenges8
• High-end fashion smart business apartment
• All the rooms are equipped with smart home
system supervising and managing:
‒ Access (doors and windows)
‒ Lights
‒ Air-conditioning
‒ Electric appliances
‒ Water and gas supply
• Remote monitoring and control via Internet,
mobile and Wireless (30 meters reach)
• Energy-saving functions and algorithms

9. …Due to three main factors:
9
China as a “promised land” for smart cities…
On the Road to Smart Cities – Opportunities and Challenges
Necessity
• Solution of problems related to urbanization (overcrowding, scarcity of
resources, pollution, traffic congestion)
• Revitalisation of specific regions (e.g., Northeast China)
• Transition to sustainable and green development (away from
manufacturing towards services)
• Economic reform for enhanced competitiveness
• Fiscal spending to be funneled towards more profitable projects
• National initiatives such as Internet+, Industry 4.0, etc.
• Commitment from the Ministry of Housing and Urban-Rural Development
• Planning of start-up smart cities (e.g. Meixi Lake district, Guangming,
Tianjin Eco-City, etc.).
• Superior digital and mobile affinity of Chinese Millennials / Generation Y
(90后, post-90s)
• Leapfrogging of certain technologies in remote areas (telephone, cars)
• Existing of local champions with both technological and commercial
power (Huawei, ChinaSoft, Tencent, Alibaba, Baidu, etc.
Policy
Technology

10. Challenges
On the Road to Smart Cities – Opportunities and Challenges10
• Variety of regulations and local compliance
requirements
• Unrealistic expectations
• Disparity of objectives between central and
local government (due to different
incentives)
• Unclear (siloed) ownership of smart city
initiatives → Variety of stakeholders
• Smart cities perceived as vanity projects
• Excessive vendor promises
• Individual requirements (need for location
and customisation)
• Immaturity of ecosystems
• Thorough planning and road mapping
• Focus on financial viability
• Clear understanding of requirements
• Definition of realistic expectations
• Adaptation of offers to the local
environment
• Design localized solutions
• Ensure “integratability” of solution with
existing technologies
• Prioritise specific verticals (healthcare,
transportation, utilities, etc.)
• Co-operation with domestic players to
become part of the ecosystem
Common difficulties Risk mitigating steps