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Action COST “People friendly
cities in a data rich world”	

WG 2 “Knowledge platform”	

	


New urban environments: 	

an enterpreneurial perspective	

Francesco Rizzi 	

f.rizzi@sssup.it	

	

Madrid, 2013-12-16
Predominantly
urban 50 - 74%

division). (Figure drawn by the World Business Council for Sustainable Development
in WBCSD, 2012, based on data from the UN Population Division UN, 2010)

Urban 0 - 49%

Big cities: a valuable business environment	

RUSSIA
103.6
UK 73%

SWEDEN
7.6

ERLANDS
13.3
81%

54
90%

POLAND
23.9
62%

GERMANY
62
75%

ROMANIA
11.6
54

NEW YORK
21.8 ITALY
39.6
68%

ROCCO
19.4
60%

TUNISIA

ALGERIA
22.0
LAGOS
10.0

NIGERIA
HANA
11.3
68.6
49%VENEZUELA
26
50%
94%
CAMEROON
9.5

BRAZIL
162.6
85%

BUENOS
AIRES
13.5

pag. 2!

GERMANY
62
75%

KENYA
7.6
TANZANIA
9.9
25%

RIO DE
JANEIRO
S AFRICA 12.2

28.6
60% PAULO
SÃO

MOZAMBIQUE

CZECH
REPUBLIC
7.4

GHANA
11.3
49%

IRAN
48.4
68%

39.6
68%

10.0

ROMANIA
11.6
54

AFGHANISTAN
7.8

CAIRO
PAKISTAN
15.9
TUNISIA
59.3
36% EGYPT

NIGERIA
68.6
50%

NEW DELHI
21.1 CAMEROON
9.5
MUMBAI
21.3

BEIJING
12.7

SYRIA
10.2
51%

33.1
43%

INDIA
329.3
29%

SUDAN
16.3
43%
CONGO, DR OF
20.2
33%
ANGOLA
9.3

S AFRICA
28.6
60%

ETHIOPIA
13
16%
KENYA
7.6

TANZANIA
9.9
25%

MOZAMBIQUE

SHANGHAI
17.3

KAZAKHSTAN
8.6

TEHERAN
12.1

N KOREA
14.1
62%

UZBEKISTAN
10.1
37%
AFGHANISTAN
7.8

PAKISTAN
59.3 VIETNAM
36% 23.3

IRAQ
20.3
67%

SAUDI ARABIA
20.9
81%

BEIJING
12.7

GUANDONG
7.3

CHINA
TURKEY 559.2
IRAN
51.1
48.4
68%
42%
68%

ISTANBUL
11.7

10.1
37%

ALGERIA
22.0
KARACHI
LAGOS
14.8

MOSCOW
13.4

UKRAINE
30.9
68%

TEHERAN ITALY
UZBEKISTAN
12.1

IRAQ
20.3
67%
MOROCCO
19.4
60%
SAUDI ARABIA

ETHIOPIA IVORY
COAST
13
8.6
16%

POLAND
23.9
62%

KAZAKHSTAN
8.6

20.9
81%

SUDAN
16.3
43%

ANGOLA
9.3

FRANCE
ISTANBUL46.9
11.7
77%

SYRIA
10.2
51%

EGYPT
33.1
43%

CONGO, DR OF
20.2
33%

BELGIUM
10.2
97%

TURKEY
SPAIN
51.1
33.6
68%
77%

CAIRO
15.9

20.4

ARGENTINA
35.6
90%

NETHERLANDS
13.3
81%

UKRAINE
30.9
LONDON
68%
12

CZECH
REPUBLIC
7.4

RUSSIA
103.6
73%

MOSCOW
SWEDEN
13.4 7.6

MYANMAR
KARACHI
14.8 16.5

BANGLADESH
38.2
26%
DHAKA
NEW DELHI13.8
21.1
KOLKATA
15.5

32%

SEOUL
23.2

OSAKA
16.6

INDIA
329.3
INDONESIA
29%

MALAYSIA
18.1
69%

114.1
50%

N KOREA
14.1
62%

VIETNAM
23.3
27%
MYANMAR

DHAKA
13.8
KOLKATA
15.5

AUSTRALIA
18.3
89%

16.5
32%

OSAKA
16.6

PHILIPPINES
55
64%

THAILAND
21.5
33%
MALAYSIA
18.1
69%

JAPAN
84.7
66%

S KOREA
39.0
81%
SEOUL
23.2

TOKYO
33.4

PHILIPPINES MANILA
55 BANGLADESH
15.4
38.2
64%
26%

THAILAND
21.5
33%

JAKARTA
14.9

GUANDONG
7.3

CHINA
JAPAN
S KOREA 559.2
39.0
84.7
81%
42% 66%

27%

MUMBAI
21.3

SHANGHAI
17.3

TOKYO
33.4
MANILA
15.4

INDONESIA
114.1
50%

JAKARTA
14.9

AUSTRALIA
18.3
89%

Number of people that live in cities and percentage of inhabitants in big cities (2010). Source: WWF, 2012 !
Public debt (%GDP)	


Source: Wikipedia on data from Eurostat (2012) and US.CIA (2013) 	


pag. 3!

The problem
The challenge	


How to do 	

better things	

Without 	

increasing costs?	

pag. 4!
The opportunity	


City = platform	

For an efficient
use of
resources	

pag. 5!
The value of data	


pag. 6!
pag. 7!
Smart meters: lessons learnt	


pag. 8!
DK
22.0%

to note that although the foundation of the smart grid is built must d
RO 0.6%
on a lateral integration of these basic ingredients, true smart pursue
SI
grid 3.1%
capabilities will be built on vertical integration of the on the
AT
6.1%
upper-layer applications. As an example, a critical capability
As
SK 0.7%
such as demand response may not be feasible without tight develo
BE
4.2%
integration of smart meters and home area networks. learnt	

 i
parts
Smart meters: lessons
DE
As such, one may argue that given the size and the value issues
11.1%
of utility assets, the emergence of the smart grid will be more withou
Figure 2. Distribution of projects between EU15 and EU12 Countries likely to follow an evolutionary trajectory than to involve a ing sys
Existing Grid

Intelligent Grid

Electromechanical

Digital

One-Way Communication

Two-Way Communication

Centralized Generation

Distributed Generation

Hierarchical

Network

Few Sensors

Sensors Throughout

Blind

Self-Monitoring

Manual Restoration

Self-Healing

Failures and Blackouts

Adaptive and Islanding

Manual Check/Test

Remote Check/Test

Limited Control

Pervasive Control

Few Customer Choices

Many Customer Choices

figure 1. The smart grid compared with the existing grid.
20

IEEE power & energy magazine

Figure 3 - Geographical distribution of investments and project categories

pag. 9!
EU12 Member States: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland,

Who can do that?	


Source: EC-JRC USA-DOE	


figure
Successes and failures	


pag. 10!
Successes and failures	


pag. 11!
The theoretical perspective	


pag. 12!
Isomorphism threats & the opportunities for smart communities	

Last 20 years of inventions in the field of
RESs	

	


Bold: Belgium, Denmark, France, Germany,
Greece, Italy, Netherland, Spain, Sweden,
Switzerland, United Kingdom	

	


Italic: World regions with the exclusion of
Europe, North America, West Asia	


pag. 13!
Crowdsourcing: the alternative way	

Pervasiveness of the information platform	


pag. 14!

Nature of the solution	

Nuber of evaluators	


Motivations of potential solvers	


Pervasiveness of know-how in the crowd	


Reliability of the crowd as problem solver	


Effective distance of knowledge	


Tacitness and complexity of the solution 	


Focal agent’s need for distant search	

 Evaluability of the solutions	


Modularizability of the problem	


Ease of delineation and transmission	


Characteristics of the problem	


Afuah, A., & Tucci, C. L. (2012). Crowdsourcing as a
solution to distant search. Academy of Management
Review, 37(3), 355-375.!
Crowdsourcing and urban sustainability governance	


pag. 15!
Crowdsourcing and urban sustainability governance	


pag. 16!
Francesco Rizzi	

Istituto di Management	

Scuola Superiore Sant’Anna	

f.rizzi@sssup.it 	


pag. 17!

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Big cities: a valuable business environment for an entrepreneurial perspective

  • 1. Action COST “People friendly cities in a data rich world” WG 2 “Knowledge platform” New urban environments: an enterpreneurial perspective Francesco Rizzi f.rizzi@sssup.it Madrid, 2013-12-16
  • 2. Predominantly urban 50 - 74% division). (Figure drawn by the World Business Council for Sustainable Development in WBCSD, 2012, based on data from the UN Population Division UN, 2010) Urban 0 - 49% Big cities: a valuable business environment RUSSIA 103.6 UK 73% SWEDEN 7.6 ERLANDS 13.3 81% 54 90% POLAND 23.9 62% GERMANY 62 75% ROMANIA 11.6 54 NEW YORK 21.8 ITALY 39.6 68% ROCCO 19.4 60% TUNISIA ALGERIA 22.0 LAGOS 10.0 NIGERIA HANA 11.3 68.6 49%VENEZUELA 26 50% 94% CAMEROON 9.5 BRAZIL 162.6 85% BUENOS AIRES 13.5 pag. 2! GERMANY 62 75% KENYA 7.6 TANZANIA 9.9 25% RIO DE JANEIRO S AFRICA 12.2 28.6 60% PAULO SÃO MOZAMBIQUE CZECH REPUBLIC 7.4 GHANA 11.3 49% IRAN 48.4 68% 39.6 68% 10.0 ROMANIA 11.6 54 AFGHANISTAN 7.8 CAIRO PAKISTAN 15.9 TUNISIA 59.3 36% EGYPT NIGERIA 68.6 50% NEW DELHI 21.1 CAMEROON 9.5 MUMBAI 21.3 BEIJING 12.7 SYRIA 10.2 51% 33.1 43% INDIA 329.3 29% SUDAN 16.3 43% CONGO, DR OF 20.2 33% ANGOLA 9.3 S AFRICA 28.6 60% ETHIOPIA 13 16% KENYA 7.6 TANZANIA 9.9 25% MOZAMBIQUE SHANGHAI 17.3 KAZAKHSTAN 8.6 TEHERAN 12.1 N KOREA 14.1 62% UZBEKISTAN 10.1 37% AFGHANISTAN 7.8 PAKISTAN 59.3 VIETNAM 36% 23.3 IRAQ 20.3 67% SAUDI ARABIA 20.9 81% BEIJING 12.7 GUANDONG 7.3 CHINA TURKEY 559.2 IRAN 51.1 48.4 68% 42% 68% ISTANBUL 11.7 10.1 37% ALGERIA 22.0 KARACHI LAGOS 14.8 MOSCOW 13.4 UKRAINE 30.9 68% TEHERAN ITALY UZBEKISTAN 12.1 IRAQ 20.3 67% MOROCCO 19.4 60% SAUDI ARABIA ETHIOPIA IVORY COAST 13 8.6 16% POLAND 23.9 62% KAZAKHSTAN 8.6 20.9 81% SUDAN 16.3 43% ANGOLA 9.3 FRANCE ISTANBUL46.9 11.7 77% SYRIA 10.2 51% EGYPT 33.1 43% CONGO, DR OF 20.2 33% BELGIUM 10.2 97% TURKEY SPAIN 51.1 33.6 68% 77% CAIRO 15.9 20.4 ARGENTINA 35.6 90% NETHERLANDS 13.3 81% UKRAINE 30.9 LONDON 68% 12 CZECH REPUBLIC 7.4 RUSSIA 103.6 73% MOSCOW SWEDEN 13.4 7.6 MYANMAR KARACHI 14.8 16.5 BANGLADESH 38.2 26% DHAKA NEW DELHI13.8 21.1 KOLKATA 15.5 32% SEOUL 23.2 OSAKA 16.6 INDIA 329.3 INDONESIA 29% MALAYSIA 18.1 69% 114.1 50% N KOREA 14.1 62% VIETNAM 23.3 27% MYANMAR DHAKA 13.8 KOLKATA 15.5 AUSTRALIA 18.3 89% 16.5 32% OSAKA 16.6 PHILIPPINES 55 64% THAILAND 21.5 33% MALAYSIA 18.1 69% JAPAN 84.7 66% S KOREA 39.0 81% SEOUL 23.2 TOKYO 33.4 PHILIPPINES MANILA 55 BANGLADESH 15.4 38.2 64% 26% THAILAND 21.5 33% JAKARTA 14.9 GUANDONG 7.3 CHINA JAPAN S KOREA 559.2 39.0 84.7 81% 42% 66% 27% MUMBAI 21.3 SHANGHAI 17.3 TOKYO 33.4 MANILA 15.4 INDONESIA 114.1 50% JAKARTA 14.9 AUSTRALIA 18.3 89% Number of people that live in cities and percentage of inhabitants in big cities (2010). Source: WWF, 2012 !
  • 3. Public debt (%GDP) Source: Wikipedia on data from Eurostat (2012) and US.CIA (2013) pag. 3! The problem
  • 4. The challenge How to do better things Without increasing costs? pag. 4!
  • 5. The opportunity City = platform For an efficient use of resources pag. 5!
  • 6. The value of data pag. 6!
  • 8. Smart meters: lessons learnt pag. 8!
  • 9. DK 22.0% to note that although the foundation of the smart grid is built must d RO 0.6% on a lateral integration of these basic ingredients, true smart pursue SI grid 3.1% capabilities will be built on vertical integration of the on the AT 6.1% upper-layer applications. As an example, a critical capability As SK 0.7% such as demand response may not be feasible without tight develo BE 4.2% integration of smart meters and home area networks. learnt i parts Smart meters: lessons DE As such, one may argue that given the size and the value issues 11.1% of utility assets, the emergence of the smart grid will be more withou Figure 2. Distribution of projects between EU15 and EU12 Countries likely to follow an evolutionary trajectory than to involve a ing sys Existing Grid Intelligent Grid Electromechanical Digital One-Way Communication Two-Way Communication Centralized Generation Distributed Generation Hierarchical Network Few Sensors Sensors Throughout Blind Self-Monitoring Manual Restoration Self-Healing Failures and Blackouts Adaptive and Islanding Manual Check/Test Remote Check/Test Limited Control Pervasive Control Few Customer Choices Many Customer Choices figure 1. The smart grid compared with the existing grid. 20 IEEE power & energy magazine Figure 3 - Geographical distribution of investments and project categories pag. 9! EU12 Member States: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Who can do that? Source: EC-JRC USA-DOE figure
  • 13. Isomorphism threats & the opportunities for smart communities Last 20 years of inventions in the field of RESs Bold: Belgium, Denmark, France, Germany, Greece, Italy, Netherland, Spain, Sweden, Switzerland, United Kingdom Italic: World regions with the exclusion of Europe, North America, West Asia pag. 13!
  • 14. Crowdsourcing: the alternative way Pervasiveness of the information platform pag. 14! Nature of the solution Nuber of evaluators Motivations of potential solvers Pervasiveness of know-how in the crowd Reliability of the crowd as problem solver Effective distance of knowledge Tacitness and complexity of the solution Focal agent’s need for distant search Evaluability of the solutions Modularizability of the problem Ease of delineation and transmission Characteristics of the problem Afuah, A., & Tucci, C. L. (2012). Crowdsourcing as a solution to distant search. Academy of Management Review, 37(3), 355-375.!
  • 15. Crowdsourcing and urban sustainability governance pag. 15!
  • 16. Crowdsourcing and urban sustainability governance pag. 16!
  • 17. Francesco Rizzi Istituto di Management Scuola Superiore Sant’Anna f.rizzi@sssup.it pag. 17!