PhysiologicalBasic needs: air, food, water, shelter, heat, sex, sleep, etc

SafetyProtection, safety, law and order, limits, stability, etc

Belonging and loveFamily, affection, relationships, group, etc

Esteem Results, status, responsibility, reputation

Awareness Knowledge (individual and of the world), sustainability

AestheticAttractiveness, equilibrium, etc

Self-actualization Personal growth

and fulfillment

Strategic objectives in the 1800s and 1900s

New strategic needs to be fulfilled

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

Research concept

A smarter country is the condition for winning competitive challenges: the world is undergoing profound and rapid change, urban systems will become – more than they are today – cornerstones of progress and growth

Rapid, pressing, global trends change world structures, impacting our daily lives and causing new needs to emerge - Development of more integrated and inclusive

urban models. - Strategic management of natural resources. - New models of mobility. - Better quality of life. - Active valorization of senior citizens.

Smart cities, as the modern-day version of Renaissance-style ideal cities, are a promising response to these needs

Smart cities also represent an opportunity for Italy: a chance to place the valorization of urban areas once again at the center of the country’s agenda. Even more so in this period when opportunities are scarce.

The issue of smart cities is very much in fashion today, but over the last decade it has had a number of meanings…

Innovation is a key factor in responding to new needs and more rapidly overcoming challenges, but technologies alone will not be enough to solve problems

Definition of smart cityLack of a single or globally-recognized definition as a context for experiences currently underway

The smart city is an urban model that minimizes efforts around “low-level” needs and (efficiently) satisfies “higher-level” needs to guarantee a high quality of life and personal and social growth of individuals and business, while optimizing resources and areas for sustainability.

Winning the challenges requires a “smarter” country, but a lot of smart cities do not necessarily make the country smart

- Metric of benefit for citizens, not the city’s physical/non-physical resources

- Award for good results under all aspects; penalization for excellence in single areas

- Identification of relevant means of action to improve performance in order to develop policy guidelines.

Becoming a “smarter” country

requires 3 GDP percentage

points each year up to 2030,

but – thanks to enhanced

efficiency, available time and

productivity from innovative

technologies – a “smarter”

country is worth up to 10

GDP points a year

Strategic visionProliferation of fragmented and scattered initiatives without any overall plan and therefore incapable of generating complex, broad-based change that could benefit the entire country

Communication within the CountryLittle information about smart issues which today are the domain of a limited few and risk being perceived as “elitist”

Monitoring Italy’s evolutionary processNo common reference framework for evaluating and improving the performance of local areas that embark on smart processes

Cities are at the center of change: it is in them that challenges and threats are condensed. Their sustainability is at risk. Urban systems must be re-thought.

…and a single, commonly-shared definition still does not exist that

expresses the profound significance of this new model of living

Mobility ICT Environmental Sustainability(energy, construction, land, water)

Quality of life

Smart Society education, health care, participatory governance)

Government

EU SET Plan ■

EU Smart Cities and Communities Initiatives ■ ■ ■

Digital agenda for Italy ■ ■ ■ ■ ■

Miur Calls For Bids ■ ■ ■ ■

Academia

Vienna Polytechnic ■ ■ ■ ■ ■

MIT SENSEable Lab ■ ■ ■ ■

Caragliu et al. (2009) ■ ■ ■ ■ ■

Harvard ■ ■ ■ ■ ■

Business

ABB ■ ■ ■ ■

Alcatel ■ ■ ■ ■

IBM ■ ■ ■ ■

Siemens ■ ■ ■

Cisco ■ ■ ■ ■ ■

Accenture ■ ■ ■

Early 2000 Mid 2000 2010

Now it is clear that…

Focus on "hardware"(ICT technology infrastructure)

Focus on "software" (social and human

capital, participation)

"hardware" &

"software"

Smart city as digital city

Smart city aswith higher quality

of life

Smart city associally inclusive city

Action must be taken on a number of essential elements which, if not properly addressed, risk thwarting the potential of the smart concept for Italy

2013 2030

Smart country Investment = +€ 515 bln

Per

form

ance

sm

art Step-by-step process is possible,

opting for intermediary trajectories

Top 20 smart cities Investment = +€ 93 bln

Top 10 smart cities Investment = +€ 75 bln

Status quo Investment = € 319 bln

Forecast decline in absence of investment

City Smartness indicator

1 Milan ✔ 50.8

2 Rome ✔ 49.7

3 Venice ✔ 42.5

4 Bolzano ! 36.0

5 Bologna ! 34.3

6 Genoa ! 34.2

7 Trieste ✘ 33.1

8 Turin ✘ 33.0

9 Palermo ✘ 32.7

10 Naples ✘ 31.4

11 Verona ✘ 31.1

12 Florence ✘ 28.2

13 Bari ✘ 22.6

Proposal Content

1. Overall strategy for Italy Define a vision for Italy and a strategy for attaining it, while reaffirming the guiding role of the national government

2. Smartness governance Prepare a national governance plan for smart-related issues which provides guidelines for action and coordinates cross-group interests

3. Italian Smart City Innovation Partnerships Launch the Italian version of the European partnership model for smart city innovation

4. “Smartest Cities” award based on a common model

Create an award for the first 5 cities that attain the maximum level of “smartness”, measured in terms of actual benefits for their citizens

5. Fine-tuning existing initiatives Formally commit to concluding/definitively closing a number of initiatives launched but never completed directly/indirectly connected to the smart city concept

6. Short-term quick win Promote (already) available, low-cost smart solutions that can produce significant short-term progress

7. 10% increase in 5 years of the “really free” time of Italians

Set a challenging goal to overcome the “elitist” perception of smart-related issues, influence expectations and create consensus

Source: TEH-Ambrosetti based on Energy Lab Foundation data, 2012

How With what impact

7 proposals for a “smarter” country Investment and returns for a “smarter” country

Legend:

✘ : highly problematic

! : moderately problematic

✔: no problem areas within the factors examined

CoLoR kEy: ANALySIS CHALLENGES RESULTS

Source: prepared by CERTeT-Bocconi for The European House-Ambrosetti. 2012

DREAMCOUNTRY CITY PRESENT

Country

City system1

City system2

Smart city 1

Smart city 2

Smart city 3

Smart city 4

Shared goalsStrategic choicesRemoving obstacles

Fine-tuning goal (characteristics, roles, location, etc.)

Hierarchy coordinationBuilding synergies

Have you ever heard the term smart city?

8%

No 78%

14%

Source: CRA poll for The European House-Ambrosetti, 2012.

yes

Don’t recall

© ABB and The European House-Ambrosetti - 2012

Precondition Create competitive advantages

Remove inhibiting factors

Reduce gaps

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

7 proposals to make the country “smarter”

Country Summary of Vision

China Become the no. 1 economy in the world by 2030, building a modern, harmonious, creative and high-income society

France Regain a leading position in all sectors, including economic, cultural, political and defense

Great BritainBe an entrepreneurial, ambitious, open and tolerant country, a world leader in terms of innovation, education and

creativity by 2020

IrelandBe a dynamic country, participatory society and economy concerned with social justice, where economic development

is concerned about the environment and is competitive on a global level

TurkeyBecome the no. 1 regional power for Central Asia and North Africa and be among the top 10 economies in the world

by 2023

United StatesThe “American Dream”: through hard work, courage and determination, anyone can attain a better standard

of living and economic prosperity

Sweden Be pioneers in the transition to a sustainable society

(Source: The European House-Ambrosetti)

1. Overall strategy for Italy

Proposal: Define a vision for the country as a whole (political, economic and social project for Italy) and a strategy for attaining it, while reaffirming the guiding role of the national government

- Goals - Provide the country with a shared identity that prepares Italy for the future and promotes

initiative - Confirm the role of the national government as the central coordinating body and

promoter of the general context - Mobilize and motivate the country towards a common vision that provides a “high-level”

goal on which to base potential sacrifices- Why: a vision accepted and internalized by the vast majority of the population and which

forms the basis of an overall strategy, is the essential prerequisite for optimizing the resources and forces made available, as well as urban policy choices. For Italy (as in all of Europe), these elements are not clear.

2. Smartness governance

Proposal: Prepare a national governance plan for smart-related issues which provides guidelines for action and coordinates cross-group interests

- Goals - Rationalize those working with smart-related issues

through providing focus and defining roles and functions - Define and implement shared rules and priorities,

providing stakeholders with a definite context - Bring together the varied special interests of national

and local government and business- Why: there is currently a plurality of players of various

kinds and without any apparent coordination involved in smart-related issues, each of which with its own vision and initiatives. A process intended to extend throughout the country must be coordinated centrally and must have a unified conception of “smartness”.

3. Italian smart city innovation partnership

Proposal: Launch the Italian version of the European partnership model for smart city innovation.

- Goals - Encourage development of win-win strategic

partnerships between business, local government and financial institutions

- Concentrate available resources in a limited number of high-potential projects (that will act as drivers for replicating the experience)

- Why: an external impetus is needed to bring together business, local government and financial bodies, and to develop the urban systems of tomorrow which, especially faced by economic crisis, spending cuts and the Italian government’s austerity measures, further risk inhibiting stakeholder cooperation while also rendering financial institutions less willing to provide support.

4. “Smartest city” award based on a shared model

Proposal: Create an award for the first 5 cities that attain the maximum level of “smartness”, measured in terms of actual benefits for their citizens

- Goals - Create competition among local areas to exploit and

promote inherent excellence to trigger emulative processes.

- offer a distinctive “plus” to the Italian system and increase the country’s awareness of “smartness”.

- Why: to contribute to increasing activism of local areas and the spread of solutions. The unique aspects of this proposal include:

- Awarding smartness as a whole, not individual aspects. - Evaluating the level of smartness through a metric that

expresses use/benefit levels for citizens rather than levels of urban system (physical/non-physical) resources.

STAKEHOLDERS

LAWS and REGULATIONS

Privacy

MIUR bid contracts

Zoning regulations

Digital Agenda

National broadband plan

National logistics plan

E-Goverment plan

Action Plan for energy efficiency

National plan for citiesBuilding

and urban planning

Energy efficiency

Mobility

Digital public admin.

…

…

INSTRUMENTS

SMART

MINISTRIESMIURMISEMIT

Environment - InteriorLocal Affairs

Governmental Affairs

REGIONAL/LOCAL BODIES

Conference of Autonomous

Regions and Provinces Regions

Municipalities

OTHER CENTRAL BODIES

ANCI Legambiente Adiconsum

LARGE COMPANIESw/non-integrated projects

(Italian mail, Telecom, ENEL, ENI, FS, ecc.)

SMEw/isolated individual

projects

BUSINESS ASSOCIATIONS

ConfindustriaConfcommercio UnioncamereFederutility

RESEARCHENEA

Universities

(Source: The European House-Ambrosetti)

(Source: The European House-Ambrosetti)

2001 - First electronic ID comes into use, entire country by 2005

2005 - “ Starting in 2006, paper documentation will be eliminated” – Production by “Innovazione e Progetti”, cost of €30 ea. (shareholders: Poligrafico dello Stato, Poste Italiane, Finmeccanica)

2006 - New government, new cost: €20 ea. – Closing of “Innovazione e Progetti”; responsibility transferred to Poligrafico dello Stato; Finmeccanica takes Poligrafico to court and wins. Process forced to stop.

2009 - “By the end of 2011, all municipalities must adopt the electronic ID”

2012 - “The electronic ID is still part of the government’s program”

6. Short-term quick win

Proposal: Promote (already) available and low-cost smart solutions that can produce significant short-term progress

- Goals - Rapidly produce tangible results - Send a clear message to the public about the benefits

that can be obtained, through tangible demonstrations of what is possible (actions speak louder than words).

- Why: Investing exclusively in long-term change is not very farsighted; to overcome public scepticism and create consensus for the “macro” project, short-term results are also needed.

(Source: ISTAT, “Cambiamenti nei tempi di vita e attività del tempo libero”, 2011)

Proposal: Set a challenging goal to overcome the “elitist” perception of smart-related issues, influence expectations and create consensus

- Goals - Provide citizens with concrete and tangible evidence of

the potential benefits the smart concept could have for their lives

- Show the seriousness of governmental commitmen- Why: today, quality of life is the basic driver and free time

a key factor, and therefore a potentially effective metric for serious and ambitious government commitment (a sort of Europe 2020 goal focused around a factor of direct relevance to the well-being of citizens).

7. 10% increase in 5 years of the “really free” time of italians

Proposal: Formally commit to concluding or definitively closing a number of initiatives launched but never completed that were directly and/or indirectly connected to the smart city concept

- Goals - Rationalize processes currently underway to eliminate

wasting public resources and regain credibility - Insure that all initiatives – often stalled for lack of

coordination and/or communication among institutional players – are moving in the same direction.

- Why: concluding major smart initiatives before initiating new ones or, alternately, deciding to definitely abandon others, represents a responsible act for the country as a whole.

5. Fine-tuning existing initiatives

www.abb.it

www.ambrosetti.eu

DREAMCOUNTRY CITY PRESENT

45 23.9 15.4 9.1 6.6

Physiological(sleeping, eating, personal grooming)

Work Free time

Household chores

Travel

Break-down of the 24 hours of an average weekday for members of the population over the age of 15 (in %)

Strategic visions of selected countries in the world

The epic of the electronic ID

Smartness-related stakeholders and initiatives in Italy

Free time today

11 years, €60 million, only 4 million electronic IDs in use (200 cities out of 8,000)

© ABB and The European House-Ambrosetti - 2012