Building and Managing Intelligent Cities in India

How new strategies, technologies, open platforms and effective governance can help create cities that are sustainable and attractive to ongoing development

1

Executive Overview 5

Context: Cities in India 7

Enablers of an Intelligent City 11

Conclusion: Practical considerations 17 in creating an Intelligent City

About Accenture 23

Key Contacts 23

Contents

2

3

A city capable of becoming environmentally sustainable and attractive to both citizens and businesses requires a new kind of intelligent infrastructure—an innovative, open platform based on smart technologies that can help forward-looking cities more predictably integrate a complex suite of services cost-effectively, at pace and at scale.

Building and Managing Intelligent Cities in India

4

5

Executive Overview

6

The world is witnessing an unprecedented wave of urbanization – India is no exceptionAs the world’s population increasingly migrates to major urban centers, cities are under pressure to enhance their performance on three major areas of concern – economy, social conditions and environment. The influence these cities have on the planet—their technologies, businesses, forms of government, resource consumption, the quality of life they enable and much more—is rising to greater and unprecedented levels.

According to United Nations forecasts, the proportion of the human population residing in cities is expected to grow to nearly 60 percent by 2030 and to almost 70 percent by 2050. India alone is expected to witness a rise in urban population from 377 million in 2011 to 600 million in 2031. Given this rapid urbanization wave, India is expected to have around 68 cities with population of more than 1 million by 2030.

Becoming “Intelligent” is the only way for cities to respond to the new challengesGiven our increasingly “resource-strained” economy and the pressures of rampant urbanization, there is a growing need to embrace innovative approaches to city management. We have actually entered an era of “competitive responsibility” in the way cities should be planned and managed. Only “Intelligent Cities” will thrive in this competitive era and this will require the cities to simultaneously meet two goals:

(i) Reducing the negative impact of people and businesses on the environment while running government and services in a sustainable manner; and

(ii) Creating an attractive economic and social environment for the citizens.

Intelligent Cities do not evolve on their own – it requires proactive systematic planningTraditionally, some cities have often evolved and come into being on an ad hoc basis – i.e. based on the needs of the moment. This typically entailed developing city’s legacy technology environment, which is usually the result of proprietary, closed infrastructures and technology systems. Over time these systems take on lives of their own and become difficult to integrate with other systems, leading to a siloed and fragmented approach to maintaining operations.

One of the most important enablers for an Intelligent City is an open, interoperable and scalable platform that provides intelligent infrastructure functionality as a service and allows for optimal resource management. Evolving such a platform requires three core elements – Technology-based infrastructure, well-planned strategy, and efficient management and governance.

Every city is unique with its specific characteristics in terms of geography, demographics, economic context, culture, political system and legacy infrastructure. Yet each Intelligent City has common capabilities and delivers some set of common services. These include:

• Office and residential buildings

• Natural resource management

• Transportation

• Health and safety

• Waste management

• Education and culture

• Public administration and services

One important characteristic that distinguishes an Intelligent City is the manner in which it delivers services using advanced technologies - an integration of a number of innovations including machine-to-machine communication enabled by telematics, sensors and RFID technologies; smart grid technologies to enable better energy production and delivery; intelligent software and services; and high-speed communications technologies that serve as a core network for all related city, citizen and business services.

Taking intelligent action is critical for the evolution of intelligent citiesMany cities have already announced their plans and programs to address their economic, environmental, social and governance challenges and to enhance their competitiveness and attractiveness. Taking intelligent and proactive actions would be critical for the successful execution of these plans. These actions should most importantly:

• Encourage and develop new forms of leadership and governance structures

• Align and engage all stakeholders

• Assemble the capabilities to drive an open, intelligent infrastructure

• Extend city managers’ capabilities in program management and delivery

• Create financial models that are up to the challenges and opportunities ahead.

7

Context Cities in India

The dominance of the “city” is a fairly recent development in human history. Human populations until quite recently lived primarily in rural environments.

8

The dominance of the “city” is a fairly recent development in human history. Human populations until quite recently lived primarily in rural environments. In 1800, only 3 percent of the world’s population lived in urban areas; a century later, that number had grown only to 14 percent. Inexorably, population distribution since then has shifted toward cities. In 2008, the world witnessed a significant milestone – for the first time, the global population became evenly split between rural and urban areas.1

Today, urbanization of the world’s population appears to be an unstoppable phenomenon. According to United Nations forecasts, the proportion of the human population residing in cities is expected to grow to nearly 60 percent by 2030 and to almost 70 percent by 2050. Already, just in Asia, 40 million people are added to city populations each year.2

Given India’s growing economy and a rapidly booming young population, the country is no exception to this unprecedented wave of urbanization. Urban population in India is projected to increase from 377 million in 2011 to 600 million in 2031.3 By 2030, India will have 68 cities with population of more than 1 million, 13 cities with more than 4 million and 6 megacities with 10 million or more.4 A demographic shift of this magnitude entails a series of challenges and opportunities for the Indian cities. Most importantly, the cities are expected to witness a significant pressure on the availability of resources. Some of the large Indian cities are already struggling to meet the demands of its citizens. As such, any incremental demand will only lead to a gridlock significantly jeopardizing the system. The biggest challenges of this rapid urbanization are directly tied to the heightened scarcity of vital urban resources such as housing, energy, water, transportation and healthcare.

Figure 1. Increasing need for efficient usage of resources

Between 2004 and 2010, India’s CO2 emission increased by 47% and has significantly affected the quality of life.5 World Health Organization has identified 13 Indian cities to be listed in the World’s top 50 polluted cities and it includes both Delhi and Mumbai.6

In 2011, only around 71% of urban population had access to water connections and the duration of water supply ranged from one to six hours per day. The average annual per capita availability of water has reduced from 1,816 cubic meters in 2001 to 1,545 cubic meters in 2011. India also has the highest volume of annual groundwater overdraft of any nation in the world.7

Traffic in the six major Indian cities is growing at a rate four times faster than the population. In 20 years, the average journey speed range in major cities is expected to drastically reduce from 17 - 26 km per hour to 6 - 8 km per hour.8

Currently, India has an acute urban housing shortage of 18.8 million and in order to accommodate another 250 million people over the next 20 years, cities will be struggling to identify and deploy affordable and accessible solutions.

India is the fourth largest energy consumer in the world. However, it suffers from a major shortage of generation capacity, which has led to significant blackouts in the last few years. Around 72% of the energy production is from non-renewable sources which has increasingly impacted climate change.

9

What is an Intelligent City?Given the increasingly “resource-strained” economy, there is a growing pressure to embrace innovative approaches to city management. The absence of a proactive city management strategy in this context can lead to a drop in the quality of life, adversely impact natural resources and eventually alienate investors which can decelerate the economic growth. Moreover, because of the mobility of the global populations, the world is now an open playing field. Hence, cities will increasingly compete for citizens and businesses not just within their nations but across the world as they seek to become and remain globally attractive. This competition takes at least four forms:

Competition for businessCreating an appealing environment for businesses and entrepreneurs that help to generate economic wealth.

Competition for public and private expendituresCompeting for funding and investments that can create jobs and stimulate growth.

Competition for residentsAttracting a diversity of citizens, including the well-educated, entrepreneurial and affluent residents who can stimulate innovation and new sources of growth.

Competition for visitorsCompeting for visitors, both tourists and business travelers.

In other words, we have entered an era of “competitive responsibility” in the way cities should be planned and managed. Cities that will thrive in this era are what we call “Intelligent Cities”, i.e. cities that are capable of achieving and maintaining two important goals simultaneously: (i) reducing the negative impact of people and businesses on the environment, and running government and services in a sustainable manner; and (ii) creating an attractive economic and social environment for growth in which citizens, companies and government live, work and interact. The two goals are closely interconnected, since it is in part the ability of a city to be environmentally safe that creates a large portion of the city’s attractiveness.

Figure 2. Multiple characteristics go into making a city attractive to citizens and businesses

Urban planning

Political governance

Infrastructures

Social Politics

Culture and education

Housing

Accessibility

Demographics

Geography/climate

Employment

Sustainable Development

Capital

10

11

Enablers of an Intelligent City

There are three primary enablers that lay the foundation for the evolution of an Intelligent City. These include technology-based infrastructure, strategy and efficient planning, management and governance.

12

Technology-based infrastructureThe technological foundation of an Intelligent City is an intelligent infrastructure, i.e. the ability to embed intelligence in city operations, thereby making the drive toward attractive services and living environments more standardized and industrialized.

The intelligent infrastructure includes both analog and digital components. This implies that in addition to the physical infrastructure (i.e. roads, buildings, rail, power, utility grids etc.), there is a need for an information and communications technology infrastructure, which serves as the basis for monitoring and optimization capabilities and for the interaction between citizens and service providers. This technology platform provides essential communications, education and entertainment to citizens—a kind of window to the world - equally important, it is also the foundation of the various intelligent features whereby technology takes the place of human intervention in key areas of monitoring and management. Communication technologies integrated with sensors ultimately enable a kind of “sense and respond” capability of a city, and maximize the synergies of the various parts of a city’s life.

An innovative example of intelligent, sense-and-respond technology is the use of sensors to reduce traffic congestion (and generate additional revenues) through congestion pricing. For example, in Stockholm and London, zones have been created where an additional fee is collected from vehicles entering a congested city center. This toll is charged automatically using electronic toll collection or automatic number plate recognition, since stopping the users at conventional toll booths would cause long queues and delays. Singapore has gone one step further and launched a program for dynamic road pricing to adjust incentives in real time.9

Another innovative example of intelligent, sense-and-respond technology is the use of audio sensors attached to rooftops and telephone poles that can detect when a gun is fired and pinpoint the location, enabling police to respond without the need for citizen intervention. Chicago, along with 30 other US cities, currently uses such audio solutions.10

In India, City of Lavasa is amongst the first cities to leverage a 3-D enabled Geographic Information System (GIS) and the Global Positioning System (GPS) to efficiently locate the location of different structures. This helps their Operations and Maintenance teams develop robust maintenance plans for the city.

StrategyIntelligence drives the growth and planning of intelligent cities at a strategic level. An Intelligent City does not evolve “naturally” but only with careful planning. City planners must take a 360-degree view of all relevant social, economic, cultural and resource-related components of the city. Development in any one area is closely coordinated with each of the others, with special attention to potential unintended consequences. For example, the congestion toll example might be effective at reducing the number of cars entering a city, but might also put an unfair burden on people at lower income levels.

Management and governanceIntelligence also needs to be embedded into the management and governance of cities. Intelligent cities manage the disparate elements of city government and services more effectively—in a more integrated fashion, overcoming the silos and lack of communication that often interfere with the value delivered by city services. They put in place an integrated governance structure covering multiple city departments such as energy, water, waste, building, transportation and culture to drive the sustainability agenda in a coordinated way. Within the governance aspect of the common Intelligent City platform are several other important supporting components that act as enablers or catalysts of an Intelligent City:

Regulatory and policy frameworksThe diverse and growing challenges that modern cities are facing require transformational change. This requires strategies and approaches different from those that cities have typically leveraged. New policy approaches are critical as many of the specific technologies needed to address cities’ environmental and social challenges already exist, yet implementation is slowed because policies have not kept

up with the potential of leading-edge technology-based solutions. For instance, the sensor technology that can enable congestion-related tolls on vehicles is available today; but what is a city’s policy toward this capability? Might it discriminate against lower-income citizens? What are the consequences to city life (and to a politician’s electability) of such technologies? City governments must have in place the right mechanisms to support innovation and experimentation, not simply react to crises, especially as different stakeholders need to come together to collaborate toward common goals.

Financial incentivesBecause an Intelligent City is concerned not only with theory but also with actual behavior change among leaders and citizens, incentive frameworks are especially critical. Creating proper incentives, including taxes and subsidies, involves defining new concepts that are economically viable and that effectively align the goals of city leaders and private partners.

For instance, GIFT has rolled out various incentive schemes11 to attract potential partners. Some of these include:

• At the development and operations stages, business units are exempt from various taxes such as customs duty, excise duty, sales tax, service tax, purchase tax, stamp duty, registration fee etc.

• At the profit stage, business units are exempt from income tax for the first five years (with only Minimum Alternative Tax @18.5% to be paid on book profit).

Partner ecosystem managementThe intelligence that is the goal of a 21st century city requires new forms of partnerships among the private and public sectors, overcoming the different mindsets and agendas that have often prevented effective collaboration. Cities must play a leadership role in ushering in this new era of collaboration by encouraging things such as task forces where industrial and academic leaders can share innovative ideas, and working groups where citizens can share best practices with city representatives or companies.

13

One of the most important contributing factors to the fragmented nature of many current approaches to becoming an Intelligent City is a city’s legacy technology environment, which is usually the result of proprietary, closed infrastructures and technology systems. Information systems and physical infrastructures often come into being on an ad hoc basis—based on the needs of the moment. Over time, these systems take on lives of their own; those within one city department become costly to maintain and integrate with other related departments. The negative impact of this fragmentation can be felt in excess costs, diminished services and an infrastructure that is not agile enough to adapt to the needs of the future.

One of the most important enablers for an Intelligent City is an open, interoperable and scalable platform that provides intelligent infrastructure functionality as a service and allows for optimal resource management. This open, intelligent infrastructure has several critically important characteristics for the future of cities around the world.

An open, intelligent infrastructure makes possible the delivery of city services in a way that helps ensure sustainable development of the city and also drives the competitiveness of the city, thereby making it more attractive for the citizens and businesses. These dimensions of sustainability and competitiveness require intelligence in the way a city is planned and managed, including a strong and consistent vision, effective coordination and flawless execution. The following sections describe the seven key Intelligent City service domains (see figure) and provides illustration of how some of the pioneering global cities are executing on these services.

Figure 3. Intelligent City open platform can integrate and make interoperable the critical components of an intelligent city

Public administration

and services

Office and residential buildings

Waste management

Transportation

Health and safety

Education and culture

Natural resource management

Intelligent city service domains

Accenture intelligent city open platform

Education and culture

Waste management

Health and safety

Intelligent infrastructure

Planning and strategy

Management and governance

TransportationNatural resource management

Office and residential buildings

Public administration and services

Open, interoperable platform with intelligent

infrastructure functionality

Effective integration and scalability of Intelligent City capabilities

14

Office and Residential BuildingsOne of the most important contributing factors to the fragmented nature of many current approaches to becoming an Intelligent City is a city’s legacy technology environment, which is usually the result of proprietary, closed infrastructures and technology systems. Information systems and physical infrastructures often come into being on an ad hoc basis—based on the needs of the moment. Over time, these systems take on lives of their own; those within one city department become costly to maintain and integrate with other related departments. The negative impact of this fragmentation can be felt in excess costs, diminished services and an infrastructure that is not agile enough to adapt to the needs of the future.

One of the most important enablers for an Intelligent City is an open, interoperable and scalable platform that provides intelligent infrastructure functionality as a service and allows for optimal resource management. This open, intelligent infrastructure has several critically important characteristics for the future of cities around the world.

An open, intelligent infrastructure makes possible the delivery of city services in a way that helps ensure sustainable development of the city and also drives the competitiveness of the city, thereby making it more attractive for the citizens and businesses. These dimensions of sustainability and competitiveness require intelligence in the way a city is planned and managed, including a strong and consistent vision, effective coordination and flawless execution. The following sections describe the seven key Intelligent City service domains (see figure) and provides illustration of how some of the pioneering global cities are executing on these services.

Physical living and working spaces are one of the most obvious material components of a city, with a variety of impacts on the environment and on living conditions. An Intelligent City will increasingly be focused on using sustainable building technologies to create a living and working environment that utilizes fewer resources and generates less waste. Cities will also need to adapt or retrofit existing structures to be more resource efficient.

To reduce the negative environmental impacts of construction and building management, some of the global cities are using building retrofits and certifications that can reduce the usage of energy and water. They are also using smart metering and smart building technologies to help optimize consumption. For instance, Paris aims to retrofit 20 percent of its municipal buildings, and projects a 12 percent reduction in greenhouse gas emissions by 2020. Similarly, London launched the Buildings Energy Efficiency Program to retrofit public sector buildings, targeting reductions of 440,000 tons of CO2 per year by 2025.12 Residential buildings can also be retrofitted to reduce their negative environmental impact. For example, Chicago aims to retrofit 400,000 residential homes or units by 2020.13

Natural resource managementThis service domain refers to integrating various kinds of sustainable technologies within the city to reduce the environmental footprint, increase the efficiency in resource supply and demand, and in general to create a healthier living and working environment for citizens. The scope of this domain covers energy, water, food, air and water quality, and the preservation of natural habitats and biodiversity. Following are some illustrations from global cities.

• Centralized electricity generation relying primarily on fossil fuels loses approximately 60 to 70 percent of its primary energy in production, transmission, and distribution. Cities like Sydney, London and Chicago have committed to increasing distributed energy systems capabilities. For example, the City of Sydney plans to implement a network of distributed generators to become independent of coal-fired, centralized energy generation by 2030.14

• In terms of water resources, the primary concerns of a city are related to availability and quality. By using alternative sources such as storm water and better water treatment, cities can address this challenge. For example, Singapore’s Marina Barrage converted a seawater bay into a new downtown freshwater reservoir providing a water supply, flood control and new recreation opportunities. It is also a leader in recycling treated wastewater. Its NEWater brand of recycled water now meets up to 30 percent of Singapore’s water needs.15

• In cities where an infrastructure to deliver safe-to-drink water is already in place, the primary focus has switched to reducing leakages and removing inefficiencies. Tokyo, for example, has one of the most efficient water systems in the world; its capabilities have successfully reduced its leakage rate from 20 percent in 1956 to 3.6 percent in 2006.16

TransportationThis service domain refers to how citizens move physically within the city, or use transportation to reach other areas. Intelligent transportation initiatives involve the application of new strategies and technologies to help offset the emissions generated by transport systems (especially older ones), reduce traffic congestion and to support the development of a more intelligent infrastructure that uses energy more efficiently. The recent launch of India’s first private rapid metro in Gurgaon is an illustration of an important initiative toward intelligent transport. Built with an investment of around Rs. 1,100 crores, the project is India’s first fully-privately financed metro system and has been launched in the public-private partnership mode. The project is expected to reduce traffic in the Cyber City hub by around 30 percent.17

15

Health and SafetyThe focus of health and safety is on ensuring long-term prosperity to a city’s inhabitants while safeguarding the natural environment, providing clean air, water and other conditions critical to the ongoing health of the population. An intelligent healthcare system is built on scalable storage systems and an open communications platform. With this type of IT foundation, patient records are electronically stored and shared wherever they are needed. This data not only is used for disease diagnosis but also facilitates future research.

Innovative information and communications technologies are transforming the ability of cities to provide remote health care to citizens. In Taiwan, for example, a Tele-health Pilot Project was launched to explore the benefits of providing telecare services, particularly to members of Taiwan’s increasingly aging population. The Tele-health Pilot Project relies on the digital transmission of medical data collected from patients in community health centers, private homes and nursing homes. One of the benefits of the telecare program is that it makes health resources available close to patients’ homes, which is particularly important to less mobile elderly patients.18

Waste ManagementCities increasingly need to apply innovations so that they can more effectively manage and control the waste and pollution generated by individuals, businesses and other city services. The waste management service domain covers diverse activities including waste collection and disposal, recycling and conversion of waste into alternative energy sources.

The envisioned solid waste collection and segregation system at Gujarat International Finance Tec-City (GIFT) is an example of leveraging technology to strengthen the waste management capabilities. The system would have the capability to collect waste through various waste disposal chutes. The waste will then be accessed through a computer controlled access and sucked through underground pipes at a speed of 90 km per hour. Finally, the waste would be treated through plasma gasification.19

Figure 4. Envisioned Automated Waste Collection System (AWS) at GIFT

11

2

3

2

Education and cultureThe focus of health and safety is on ensuring long-term prosperity to a city’s inhabitants while safeguarding the natural environment, providing clean air, water and other conditions critical to the ongoing health of the population. An intelligent healthcare system is built on scalable storage systems and an open communications platform. With this type of IT foundation, patient records are electronically stored and shared wherever they are needed. This data not only is used for disease diagnosis but also facilitates future research.

This aspect of an Intelligent City refers to the public education system (and integration of private systems and universities into city life), especially as enabled by new technologies. Also included are a city’s cultural and recreational amenities such as music, theater, sports and other leisure activities, and tourism. Another equally important aspect of education in the context of an Intelligent City is the need to engage citizens through education in how behavior change can improve a city’s overall sustainability and environmental health. Helping citizens understand and then take consistent action through changed behaviors is a long process. For this, it is imperative that citizens should be closely involved while the strategy and vision of the city is defined.

Several global cities are leading the way in how they educate and engage their citizens in sustainability goals. For instance, Melbourne in Australia established frameworks and models by which the federal, state and local governments cooperatively work with the local community to address sustainability challenges. This work was nominated for the 2010 Lee Kuan Yew World City Prize - a biennial international award to recognize individuals and organizations that have made outstanding contributions to the creation of vibrant, livable and sustainable urban communities around the world.20

Public administration and servicesThis service domain of an Intelligent City includes the mechanism for governance, administration and the provision of services. Particular concerns here involve such things as information technologies that improve citizen communications and that provide the analytics capabilities that can more readily match citizen needs with the most effective responses and resources.

16

Global Example Amsterdam Smart City

• Five major themes - Living, Working, Mobility, Public Facilities, and Open Data

• 44 innovative projects focused on energy transition and open connectivity. Each project is currently in different stages

• ASC uses a collective approach to bring partners together and set up local projects. The most effective initiatives are then implemented on a larger scale

• All the knowledge and experience gained from these projects are shared on the ASC platform to accelerate energy and climate programs.

Amsterdam aims to become one of the world’s most sustainable cities by 2040. In order to achieve this, the City has partnered with businesses, authorities, research institutions and the people of Amsterdam to create the Amsterdam Smart City (ASC). This platform initiated in 2009 by the Amsterdam Economic Board, the City of Amsterdam, Liander and KPN has now grown to have more than 70 partners.

Background

Vision

Key Takeaways

The goal of the project is to develop and implement sustainable and cost-effective programs that will help Amsterdam reduce its carbon footprint while exceeding the carbon reduction targets put forward by the European Union’s 2020 emissions and energy reduction targets.

Living

Working

Open data

Public facilities

Mobility

17

Conclusion Practical considerations in creating an Intelligent City

The distinctive aspects of an Intelligent City are the dual characteristics of being (i) sustainable and (ii) attractive. Hence, the environmental dimension of Intelligent Cities is more than just a moral obligation. Sustainability is important not only for its positive social consequences, but also because it is a key factor in creating a livable environment, one which is conducive to the health and prosperity of a city and its citizens and businesses.

18

Creating an Intelligent City entails implementing a series of interlinked capabilities. Every city is unique and hence there is no one “correct” way to go about developing the suite of capabilities. As such, the most pragmatic approach is to start by assessing the city’s unique geographic, economic and political situation and then moving on to assess various scenarios based on costs, impacts and trade-offs. Based on all these considerations, the planners should then begin to plan the technology, strategy, process, training, governance and management aspects of the development program.

We believe the following are especially important factors to be considered while plotting a course toward becoming an Intelligent City.

Encourage and develop new forms of leadership and governance structuresInnovative governance structures are vital for the evolution of Intelligent Cities in India. A governance structure which involves all the stakeholders demonstrates an ability to consider and minimize potential shortcomings, enhance responsibilities and ensure its ongoing operations. City and business leaders should work collaboratively to develop such governance structures and be proactive in embracing and championing the Intelligent City concept.

Align and engage all stakeholders To successfully implement the Intelligent City vision, city leaders should work to align the interests and goals of each sector of the community.

City departmentsThe service domains of an Intelligent City cut across many city departments. To maximize efficiencies and accelerate implementation, traditional silos of city departments need to be broken down and the management should be spread across various departments. The primary department responsible for managing the City should report to the city’s leader and serve as a coordinator and mediator to settle potential disputes with respect to priorities and responsibilities.

Private-sector partnersA partnership between the public and private sector is critical for implementing the vision of the City. As employers of city residents, supporters of city cultural institutions and sources of innovation, the private sector will play a major role in helping the Public sector move towards achieving the goals.

CitizensCitizen engagement is another key component of any Intelligent City program. Technologies can support the behavioral changes needed, but not the emotional component. Hence, initiatives aimed at educating citizens to increase their acceptance and encourage different behaviors, should be proactively considered.

Assemble the capabilities to drive an open, intelligent infrastructure Through conversations with technology vendors and integrators, city Chief Information Officers should begin exploring the technologies and concepts at the heart of open, intelligent infrastructures. Conferences and targeted conversations with cities and companies involved in implementing aspects of an Intelligent City can help to lay a foundation of knowledge and experience that makes it easier to advance specific Intelligent City initiatives. Cities should then consider a pilot project with a limited scope and controlled risks in a specific service domain such as transportation or energy management. One of the benefits of the open platform is that solutions scale more readily, so experience in a limited domain can actually accelerate the benefits achievable as cities move down the road toward more complex implementations.

Extend managers’ capabilities in program management and deliveryAn Intelligent City program should tap into highly competent program managers because the complexity of the overall initiative requires the management of numerous disparate elements, as well as the ability to keep city workers and citizens engaged in the initiative. The process of diligently establishing goals and time lines and tracking and reporting performance metrics helps in aligning various stakeholders and provides a mechanism to quantify success.

Create financial models that are up to the challenges and opportunities aheadStandard models for financing infrastructure investments are usually inadequate for creating an Intelligent, necessitating the need for new models and approaches. In most cases, public-private partnerships will need to be pursued to fund the required infrastructure investments and revitalize a city. Cities can be the catalyst for bringing together the public and private sectors based on new business and operating models, as well as better partnership models. Such an approach requires moving away from isolated initiatives executed by individual players in the city to a coordinated effort among all public and private-sector players. Strong coordination can align interests and balance risk-sharing among all parties.

Economic growth coupled with rapid urbanization underlines an immense need for cities to step up and operate intelligently to support this growth. If cities have to take focused, cost-effective actions to embed intelligence in all their services, they should work to put in place the right kind of foundation—an open, intelligent architecture capable of delivering smart services now, and then scaling as the city’s needs grow.

19

Intelligent City ServicesAccenture has been successfully associated with Intelligent City Projects across the world.

Baerum, Norway“Champion the Smart CityModel by enhancing a sustainable project”

Green field

Brown field

Amsterdam“City initiatives to meet an ambitious carbon reduction goal”

Malmo“A global model for sustainable urban development”

City in Southeast China“A showcase for best practicesustainability technologies”

Bhutan Education City“Sustainability Strategy for Infrastructure”

Kuala Lumpur“A new international financial district in the heart of the city”

Fujisawa“A model project of an environmentally-minded city in action”

Yokohama“CO2 emissions reductionthrough smart energy systems and behaviour”

Songdo“Compact, smart and green man-made island”

MMRDA“Feasibility Study for SmartCity Components”

City in Mexico“A creative digital citydriving Mexico’s audiovisualcreative services industry”

Copenhagen“Redevelopment of industrial harbour land for clean living”

Ontario“Multi-modal fare cardsystem for the region’s public transit”

London“Building Energy Efficiency Programme”

Madrid“Urban Community of Madrid - Energy Efficiency and Waste Management”

Nord Pas de Calais“Third Industrial Revolution Strategy”

City in the Middle East“Renewable energy and intellectual property creation”

Masdar City“A city based on high technology and clean energy research”

Kerala Knowledge City“Pre-feasibility study for a knowledge and smart city”

20

To bring pioneering thought capital to its clients, Accenture also actively engaged industry and academia to build Pont of Views (PoVs) that help shape the industry trends and best practices. Some recent examples of Accenture’s PoVs and articles that featured in external media.

Information Marketplaces: The New Economics of CitiesThe report helps address major city problems such as traffic congestion and energy wastage by applying ICT to their built environments in the form of smart technologies. This report collaboratively explores the ‘softer’ infrastructure required to harness their full value.

Smart Mobile Cities: Opportunities for Mobile OperatorsDeveloped in partnership with Cisco and Global System for Mobile Communications Association (GSMA), this report highlights the key opportunities for mobile operators in the emerging smart city value chain.

Accelerating Successful Smart Grid PilotsFor the report, over 60 industry and policy / regulatory stakeholders were engaged to identify the factors that determine the success, or otherwise, of smart grid pilots. The global analysis identified a number of issues across the pilot life cycles that are preventing pilots from reaching their full potential.

“Smart Cities”, Fortune India, June 2013Article published in Fortune India featuring common focus themes for existing Smart cities. Key theme - the rise of urban green cities around the globe have begun to implement projects that involve the three Rs: Reduce, Reuse, and Recycle.

“The multiplexed metropolis”, The Economist, Sep 2013 Key theme - Clever cities will not necessarily be better ones. Rather than becoming paragons of democracy, they could turn into electronic platforms in which everybody is constantly watched. They could be paralyzed by hackers. They might even put at risk the serendipity that makes cities such creative places, argues Richard Sennett, a sociologist at the LSE, making them “stupefying” instead.”

“Power and politics in Smart Cities”, Guardian, March 2011In this article, Simon Giles, Accenture’s global lead for Smart Technology Strategy, argued that the ICT sector has not lived up to the expectations of the media, city governments and other organisations with respect to its role in intelligent urbanisation.

21

1. Population Reference Bureau, “Human Population: Urbanization,” www.prb.org.

2. “UN: Half of World Population to live in cities soon,” March 1, 2008, www.komononews.com.

3. http://www.slideshare.net/PlanComIndia/urbanisation-in-india-12th-plan-2012-2017

4. http://www.ricssbe.org/RICSINDIA/media/rics/PublicationandResources/White-Paper-Smart-Cities-Research.pdf?ext=.pdf

5. http://www.eia.gov/countries/cab.cfm?fips=IN

6. http://www.who.int/phe/health_topics/outdoorair/databases/en/

7. http://pib.nic.in/newsite/erelease.aspx?relid=82676

8. http://www.slideshare.net/PlanComIndia/urbanisation-in-india-12th-plan-2012-2017

9. http://app.mot.gov.sg/page_land.aspx?p=/Land_Transport/Managing_Road_Use/Electronic_Road_Pricing.aspx&AspxAutoDetectCookieSupport=1

10. “Sensors Make Cities Smarter,” www.governing.com. April 1, 2010

11. http://giftgujarat.in/about-sez/tax-benifits.aspx

12. “Introduction to the Building Energy Efficiency Programme.” Roger Simpson-Jones, London Development Agency, www.london.gov.uk

13. “Chicago Region Retrofit Ramp-Up (CR3) Program,” Chicago Metro Agency for Planning, www.cmap.illinois.gov/retrofits.

14. Sydney 2030 City Vision, http://www.cityofsydney.nsw.gov.au/2030/thedirections/Energy.asp.

15. “Water for All: Conserve, Value, Enjoy – Meeting our water needs for the next 50 years,” PUB publication, 28 June 2010, http://www.news.gov.sg/public/sgpc/en/media_releases/agencies/pub/press_release/P-20100628-2.html.

16. SlimCity –Sustainable Buildings, WEF, 2009, http://www.driversofchange.com/slimcity/downloads/sustainable_buildings_low_res.pdf.

17. http://indiatoday.intoday.in/story/indias-first-private-rapid-metro-starts-operation-from-gurgaon-today/1/324762.html

18. “Healthcare Close to Home,” Taipei Economic and Cultural Office in New York, www.taiwanembassy.org.

19. http://giftgujarat.in/documents/GIFT_Corporate_Presentation_New.pdf (Page 43)

20. http://www.leekuanyewworldcityprize.com.sg/forum.htm.

References

22

Key ContactsBruno BerthonGlobal Managing Director Strategy & Sustainability Services

Peter LacyAsia Pacific Managing Director Strategy & Sustainability Services

Vishvesh PrabhakarManaging Director India Sustainability Services

Simon GilesSenior Principal Global Intelligent Cities Lead, Strategy & Sustainability Services

Serge YounesDirector India Sustainability Services

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with approximately 319,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

Copyright © 2015 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 15-0550