ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
DELIVERABLE D6.3 – Report on economic and business impacts
Project Acronym: ESPRESSO Grant Agreement number: 691720 Project Title: systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Revision: Martin Fabisch, Sven Dubner
Authors: Giancarlo Senatore, Giovanna Galasso, David Brunelleschi, Giorgio Farina
Project co-funded by the the Horizon 2020 Framework Programme of the European Union
Dissemination Level P Public X C Confidential, only for members of the consortium and the Commission Services
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 1 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 1.!Revision history and statement of originality
1.1.!Revision history
Rev Date Author Organization Description
0.1 4/08/2017 Giorgio Farina - David PwC Initial literature analysis Brunelleschi – Francesco Mureddu - Giovanna Galasso – Giancarlo Senatore 0.2 29/09/2017 Giorgio Farina - David PwC Inclusion of survey results Brunelleschi – Francesco and drafting of chapter 4 Mureddu - Giovanna on the economic impact Galasso – Giancarlo analysis and inclusion of Senatore relevant case studies 0.3 27/10/2017 Giorgio Farina - David PwC Drafting of chapters 5,6 Brunelleschi – Francesco Mureddu - Giovanna Galasso – Giancarlo Senatore 0.4 30/11/2017 Giorgio Farina - David PwC Drafting of chapter 7 on Brunelleschi – Francesco conclusions and integration Mureddu - Giovanna of further case studies Galasso – Giancarlo Senatore 0.5 12/12/2017 Giorgio Farina - David PwC, Technische Document revision and Brunelleschi – Francesco Universität inclusion of additional Mureddu - Giovanna Kaiserslautern, information Galasso – Giancarlo Fraunhofer Senatore – Martin Fabisch – Sven Dubner 1.0 20/12/2017 Barth De Lathouwer, Irene OGC, TRILOGIS Quality Check Facchin
1.2.!Statement of originality This deliverable contains original unpublished work except where clearly indicated otherwise. Acknowledgement of previously published material and of the work of others has been made through appropriate citation, quotation or both.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 2 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 2.!List of references
Num Full Reference ber
Accenture Strategy (2017) Smart Cities, How 5G Can Help Municipalities Become Vibrant Smart Cities. Available at [1] https://www.accenture.com/t20170222T202102__w__/us-en/_acnmedia/PDF- 43/Accenture-5G-Municipalities-Become-Smart-Cities.pdf
[2] Alfino, S., (2014). “The role of standards in enabling future cities”, BSI.
Arup (2014) Delivering the Smart City, Governing Cities in the Digital Age. Available [3] at https://www.ucl.ac.uk/steapp/docs/delivering-the-smart-city
Batty et al (2012) Smart cities of the future. The European Physical Journal Special [4] Topics. Available at http://www.complexcity.info/files/2013/08/BATTY-EPJST- 2012.pdf
BI Intelligence (2015) The Internet of Things is poised to create hundreds of billions of dollars in economic value for cities worldwide. Available at [5] http://www.businessinsider.com/internet-of-things-to-create-hundreds-of-billions- in-economic-value-for-cities-2015-7?IR=T BIS., (2013). “Smart Cities: Background paper”, Department for Business [6] Innovation & Skills.! Blind, K. & Jungmittag, A. & Mangelsdorf, A. (2011) The Economic benefits of Standardisation. DIN. Available at [7] https://www.din.de/blob/89552/68849fab0eeeaafb56c5a3ffee9959c5/economic- benefits-of-standardization-en-data.pdf
BSA, The Software Alliance (2015) What’s the Big Deal With Data. Available at [8] http://data.bsa.org/wp-content/uploads/2015/12/bsadatastudy_en.pdf
BT (2016) the role of ICT in reducing carbon emissions in the EU. Available at [9] https://www.btplc.com/Purposefulbusiness/Ourapproach/Ourpolicies/ICT_Carbon_R eduction_EU.pdf
Cisco (2014) IoE-Driven Smart Street Lighting Project Allows Oslo to Reduce Costs, Save Energy, Provide Better Service. Available at [10] https://www.cisco.com/c/dam/m/en_us/ioe/public_sector/pdfs/jurisdictions/Oslo_Ju risdiction_Profile_051214REV.pdf
City of Bremen Cuts Energy Consumption and Consolidates Building Management with Wonderware Solution (2009). Available at [11] https://smartcitiescouncil.com/resources/city-bremen-cuts-energy-consumption- and-consolidates-building-management-wonderware-solution
City of Helsinki Helsinki 3D+ A New Generation of City Models. Available at [12] https://www.hel.fi/hel2/tietokeskus/data/dokumentit/HelLovesDev/Helsingin_3D- malli_Hel_Dev_09022017.pdf
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 3 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! CITYKeys (2016) Deliverable 1.4 Smart city KPIs and related methodology – final. [13] Available at http://nws.eurocities.eu/MediaShell/media/D1.4- CITYkeys_D14_Smart_City_KPIs_Final_20160201.pdf
Echelon (2014) Oslo street lighting system slashes energy use with lonworks network. Available at [14] https://www.echelon.com/assets/bltd6560c36a2c5f39f/Lighting-City-of-Oslo-Street- lighting-case-study.pdf
European Commission (2003) Cohesion policy – dialogue with regional and local [15] authorities. Available at http://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=LEGISSUM:g24228&from=EN
European Commission (2006) MEPSIR - Measuring European Public-Sector Information Resources - Final report of study on exploitation of public sector information – benchmarking of EU framework conditions - Executive summary and [16] Final report Part 1 and Part 2. Available at https://ec.europa.eu/digital-single- market/en/news/mepsir-measuring-european-public-sector-information-resources- final-report-study-exploitation-0
European Commission (2015) Creating Value through Open Data. European Data Portal. Available at [17] https://www.europeandataportal.eu/sites/default/files/edp_creating_value_through _open_data_0.pdf
Eurosion (2004) Living with coastal erosion in Europe: Sediment and Space for [18] Sustainability. Available at http://www.eurosion.org/reports-online/part1.pdf
Eurostat. Methodological section. Available at [19] http://ec.europa.eu/eurostat/web/maritime-policy-indicators/methodology
Hammarby Sjostad Ekonomisk Forening. Available at [20] http://www.hammarbysjostad.se/energy/?lang=en
Higgins, S. (2017) City Model of the Future: Helsinki 3D+. Available at [21] https://www.spar3d.com/sponsored/sponsored-software/city-model-future-helsinki- 3d/
IHS Economics & HIS Technology (2017) The 5G economy: How 5G technology will [22] contribute to the global economy. Available at https://cdn.ihs.com/www/pdf/IHS- Technology-5G-Economic-Impact-Study.pdf
IPS Group (2017) L.A expands smart-parking coverage area to 3 new communities. [23] Available at http://www.ipsgroupinc.com/l-a-expands-smart-parking-coverage- area-to-3-new-communities/
Lea, R. (2017). Smart Cities: an overview of the Technology Trends Driving Smart [24] Cities. IEEE
Lebeck, S. (2014), The 'smart city' movement: From experimentation to [25] standardization | GreenBiz
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 4 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Li, B., Xing, X., Xuan, H., & Wang, X. (2017). Zhengdong New District Smart [26] Government Application System Construction and Its Development Strategy Research. In MATEC Web of Conferences.
McGarr, T., & Digby-Rogers, T., (2017), Overview of BSI and Standardization (Smart [27] Cities & Big Data), Poster presentation.
Santander Smart City Plan Director de Innovaciòn. Available at [28] http://santander.es/sites/default/files/plan_director_innovacion_0.pdf
SAS (2016) The Value of Big Data and the Internet of Things to the UK Economy. [29] Available at https://www.sas.com/content/dam/SAS/en_gb/doc/analystreport/cebr- value-of-big-data.pdf
SCC, (2017), Smart Cities Guidance Note, Smart City Standards. Smart Cities Council, [30] Austarlia and New Zealand.
Simon Joss, Matthew Cook & Youri Dayot (2017) Smart Cities: Towards a New [31] Citizenship Regime? A Discourse Analysis of the British Smart City Standard, Journal of Urban Technology.
SmartEnCity, Tartu – From Hrustsovkas to Smartkovskas. Available at [32] http://smartencity.eu/about/lighthouse-cities/tartu-estonia/
Washburn, D., & Sindhu, U., (2010). Helping CIOs Understand “Smart City” [33] Initiatives. Making Leaders Successful Every Day. FORRESTER.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 5 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 3.!Table of Acronyms
Acronym Description
CEBR Centre for Economics & Business Research
EU European Union
GDP Gross Domestic Product
ICT Information and Communication Technologies
IoT Internet of Things
NGO Non-governmental organization
PSI Public Sector Information
SME Small and Medium Sized Enterprises
VOCT Value of Commuting Time
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 6 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 4.!Executive Abstract
This report is the outcome of Task 6.3, which primary aim is to provide an overview and assessment of the main business and economic impacts generated by standard-based Smart Cities solutions across Europe. In order to do so this document is articulated into four main sections which address the current state of the art in the domain of Cities technologies, an economic impact analysis of Smart Cities solutions in Europe and around the world, considering in particular the economic impacts of 3D City Models, the projection of the results from the previously mentioned analysis and a concluding section wrapping up the main outcomes that emerged. Smart Cities solutions and technologies are currently playing an increasingly crucial role at global level in relation to the key development changes that modern cities need to tackle in order to be competitive and enhance the quality of life of their citizens. It is widely recognised that thanks to the implementation of new standard based technologies and solutions in the Smart Cities domain local policy makers can increase their city’s economic competitiveness, reduce infrastructures maintenance costs and improve citizens’ satisfaction and value received from services. Several examples of economic benefits achieved by Smart Cities solutions, especially standard-based ones, have been included in this report. As a point of departure, a cost- benefit analysis of the use cases implemented by ESPRESSO pilot cities of Rotterdam and Tartu has been performed. The cost-benefit analysis provides an overview of the main costs sustained by the solutions as well as the main economic benefits achieved to date. The above-mentioned analysis has been also complemented with a wide selection of case studies of relevant Smart Cities solutions implemented at European and global level. The case studies enable the reader to get a glimpse of other solutions implemented in different context which achieved significant economic benefits. Finally, the results from the cost-benefit analysis have been also projected at EU-wide level in order to assess the potential general impacts resulting from the adoption of similar solutions. As it emerged from the analysis of the ESPRESSO use cases, standard-based solutions in particular in relation to 3D City Models appear to be of crucial importance for the implementation of an effective and comprehensive Smart Cities strategy. 3D City Models based on standards make available a massive quantity of data and information to be re-used by multiple actors for the creation of products and services therefore fostering the creation of a competitive business environment at local city level. The importance of Smart Cities standard-based solutions has been also highlighted in a stakeholders’ survey conducted among selected key European actors. Approximately 91% of survey respondents agreed that standard-based solutions have a higher impact if compare to context-related ones. According to survey respondents’ standard-bases solutions contribute also to the achievement of significant economic impacts especially in relation to the reduction of energy consumption, increasing business opportunities, reducing public expenditure and boosting the creation of start-ups.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 7 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 5.!Table of Content
! 1.!Revision!history!and!statement!of!originality!...... !2! 1.1.!Revision!history!...... !2! 1.2.!Statement!of!originality!...... !2! 2.!List!of!references!...... !3! 3.!Table!of!Acronyms!...... !6! 4.!Executive!Abstract!...... !7! 5.!Table!of!Content!...... !8! 6.!List!of!Figures!...... !9! 7.!List!of!Tables!...... !10! 8.!Introduction!...... !11! 9.!Economic!impacts!of!Smart!Cities!solutions:!state!of!play!and!current!trends!...... !12! 10.!Economic!impact!analysis!...... !22! 10.1.!Our!general!approach!...... !22! 10.2.!Stakeholders!consultation!and!interviews!with!cities!that!provided!letter!of!support!...... !25! 10.3.!Exploring!inOdepth!our!pilot!cities!and!presenting!examples!of!relevant!case!studies!from!Europe!and! around!the!world!...... !29! !Tartu!...... !29! !Rotterdam!...... !34! 11.!Projecting!economic!impacts!at!EU!wide!level!...... !41! 12.!Economic!Benefits!of!3D!City!Models!...... !43! 13.!Concluding!remarks!...... !46! Annex!I!O!Stakeholders!Survey!...... !48! Annex!II!O!Interview!template!used!for!data!collection!on!3D!City!Platform!in!both!Tartu!and!Rotterdam!...!55! Annex!III!O!CostOBenefit!data!collection!template!for!the!Rotterdam!pilot!...... !56! Annex!IV!O!CostOBenefit!data!collection!template!for!the!Tartu!pilot!...... !58! Annex!V!O!Interview!template!used!for!data!collection!from!cities!that!provided!a!support!letter!to! ESPRESSO!...... !61! !
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 8 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 6.!List of Figures
Figure!1:!Smart!City!Technology!Revenues!(Source:!Navigant!Research)!...... !13! Figure!2:!Key!need!for!standards!(Source:!Our!elaboration!based!on!BIS!–!2013)!...... !15! Figure!4:!Increasing!level!of!abstraction!of!standardization!activities!(Source:!Lea,!2017)!...... !17! Figure!4:!Use!of!Standards!(Source:!Spring!Singapore)!...... !19! Figure!6:!Cost!savings!due!to!standardised!solutions!2017O2025!(Source:!Machina!research)!...... !21! Figure!6:!Overview!of!respondents!by!sector!(Source:!Our!elaboration)!...... !25! Figure!7:!Overview!of!respondents!by!geographical!scope!(Source:!Our!elaboration)!...... !26! Figure!8:!Impact!of!standardObased!solutions!compared!to!context!related!ones!(Source:!Our!elaboration)!26! Figure!9:!Most!important!areas!and!related!standards!in!relation!to!Smart!Cities!initiatives!(Source:!Our! elaboration)!...... !27! Figure!10:!Use!of!standards!in!the!context!of!Smart!Cities!initiatives!(Source:!Our!elaboration)!...... !27! Figure!11:!Most!important!domain!for!the!use!of!standards!in!smart!cities!(Source:!Our!elaboration)!...... !28! Figure!12:!Least!important!domain!for!the!use!of!standards!in!smart!cities!(Source:!Our!elaboration)!...... !28! Figure!13:!Economic!impacts!of!standards!(Source:!Our!elaboration)!...... !29! Figure!14:!BreakOeven!analysis!(Source:!Our!elaboration)!...... !33! Figure!15:!BreakOeven!analysis!(Source:!Our!elaboration)!...... !37! Figure!16:!Berlin!3D!Download!Portal!Source:!http://www.opengeospatial.org/blog/2196!...... !44!
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 9 of 61 ! ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 7.! List of Tables
Table!1:!Examples!of!standards!in!the!smart!city!domain!relevant!for!Economic!and!Business!impacts!...... !20! Table!2:!Costs!overview!...... !22! Table!3:!Monetized!benefits!overview!...... !23! Table!4:!Qualitative!benefits!overview!...... !24! Table!5:!Costs!sustained!...... !31! Table!6:!Costs!sustained!...... !32! Table!7:!Benefits!achieved!...... !33! Table!8:!Costs!sustained!...... !35! Table!9:!Costs!sustained!...... !36! Table!10:!Benefits!achieved!...... !37! Table!11:!Costs!sustained!...... !39! Table!12:!Benefits!achieved!...... !39!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 10 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 8.!Introduction
This report seeks to provide an assessment of economic and business impacts generated by the adoption of standard-based Smart Cities solutions across Europe. The analysis is mostly based on data collected thanks to the support provided by use cases representatives directly involved in the projects. Additional support materials collected from available documents in the literature have been used in order to draft the use cases included across the document. Also, a stakeholders’ survey has been launched between May and June 2017 in order to collect key insights on the use of standards in Smart Cities solutions and on potential economic impacts generated. In particular, the analysis and the most relevant findings are presented according to the following structure: Chapter 3: Economic impacts of Smart Cities solutions: state of play and current trends The aim of this chapter is to present an overview of the current state of play concerning Smart Cities solutions especially concerning their general economic impacts at European and global level. Furthermore, this chapter presents also an overview of the most important standards used in the Smart Cities domain and their main economic impacts. Chapter 4: Economic impact analysis This chapter focuses on presenting the main outcomes from the analysis of the use cases. An initial methodology section has been included in order to introduce the qualitative and quantitative approach followed. The results from a stakeholders’ consultation on the use, knowledge and impacts of smart city standards are then presented. The chapter ends with the outcomes from the cost-benefit analysis that provide a base for the projections at EU level included in chapter 5. Chapter 5: Projecting economic impacts at EU wide level The aim of this chapter is to project the results from the cost-benefit analysis at EU wide level and to show potential impacts of the standard based solutions implemented in the use cases across Europe. Chapter 6: Economic Benefits of 3D City Models This chapter discusses the economic impacts of 3D City Models, providing examples of 3D City Models deployed in other municipalities. Chapter 7: Concluding remarks This final chapter will try to summarise the main outcomes emerging from the previous analysis and to draw some relevant conclusion. !
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 11 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 9.!Economic impacts of Smart Cities solutions: state of play and current trends
The Smart Cities concept is becoming central among policy makers, industry players and public society in Europe and around the world. Modern cities are required to adopt new and smart infrastructures, business models and strategies in order to enhance the quality of life of citizens and improve their economic and business competitiveness. Different definitions have been developed to describe the main features and characteristics of Smart Cities. According to Batty et al (2012) a Smart Cities is a city where ICT plays the role of connecting infrastructures and enhancing interactions among citizens, government and business groups. Another definition is the one provided by Washburn and Sindhu (2009) stating that “the use of ICT makes the critical infrastructure components and services of a city which include city administration, education, healthcare, public safety, real estate, transportation, and utilities – more intelligent, interconnected, and efficient”. The key role of ICT is also stressed by the European Parliament that defines Smart Cities initiatives as multi- stakeholder municipally based partnerships aimed at addressing problems of common interest with the aid of ICTs, which underpin ‘Smart’ classification.
As mentioned above ICT is one of the core pillars of a Smart Cities. The adoption of Big Data, IoT, mobile and communication technologies, just to name a few, has contributed to boost economic and social development in major cities around the world. Thanks to the adoption of these new technologies, it has been possible to act on some of the most crucial issues facing some western economies from high youth unemployment to poor growth level. Especially in Europe, ICT based solutions are expected to generate € 1.3 trillion economic benefits including €643 billion in cost savings and €678 in new revenues. Moreover, ICT could help businesses transition from a linear to a circular model, therefore reducing waste and creating new value streams1.
The adoption of 5G wireless technology is expected to generate €10 trillion in terms of global economic output by 20352. It could also have a strong impact on towns and cities in the US creating up to 3 million jobs and enhance GDP by €420 billion compared to an initial investment in infrastructure of approximately €231 billion. The possibility to use similar technologies would also contribute to creating a more competitive and skilled workforce triggering a virtuous cycle that could increase employment and earning power among citizens.3
Similarly, it has been estimated that IoT deployments could generate $421 billion in terms of economic values for cities across the world by 2019. The investments in these types of technologies could also create relevant opportunities for hardware and software suppliers therefore benefitting the whole local and national economy in terms of higher productivity, employment and potentially salaries. Overall, it has been estimated that
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 BT, the role of ICT in reducing carbon emissions in the EU 2 https://cdn.ihs.com/www/pdf/IHS-Technology-5G-Economic-Impact-Study.pdf 3 https://www.accenture.com/t20170222T202102__w__/us-en/_acnmedia/PDF-43/Accenture-5G-Municipalities-Become-Smart- Cities.pdf D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 12 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! cities’ investments in IoT technologies will grow of approximately $97 billion across the world by 20194. IoT applied to cities worldwide could also provide savings in the transport field amounting to more than $800 billion per year. Similarly, the public health sector in cities could also benefit from the use of IoT in terms of almost $700 billion per year. Big data are also expected to generate a $ 15 trillion impact on global GDP by 20305. Relevant economic benefits for central and local authorities have been also forecasted. As reported by a CEBR report, these benefits are estimated to be around £ 8.561 million in the UK alone. The combination of IoT and big data is also expected to generate a growth of £322 billion in the UK alone between 2015 and 20206. As shown in figure 1 the global market for smart city technologies is increasing rapidly. In the coming years, the largest share of revenues is estimated to be located in the Asia Pacific region followed by Europe and North America.
Figure 1: Smart City Technology Revenues (Source: Navigant Research)
As an example, South Korea has been investing $2billion in open data, which are expected to generate 150,000 jobs and economic benefits of approximately $22 billion. Similar effects have been also forecasted in relation to the Indian “100 Smart Cities’ programme” that is expected to impact the economy via a 10-15% rise in employment7. The market size of open data in the EU was estimated to be around € 55.3 billion in 2016 with an expected growth rate of 36.9% by 2020. If indirect market size is also taken into account the overall estimate would increase to € 265-286 billion by 2020. Cost savings in the EU thanks to the use of open data are forecasted to be around € 1.7 billion by 20208. Public sector information (PSI) also plays a key role, especially in relation to open data and on potential economic impacts on the smart city market. It is estimated that the direct PSI reuse market in the EU accounted for € 28 billion in 2008 and € 32 billion in 20109. More specifically, the total direct and indirect economic impact
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4 BI Intelligence (2015) 5 http://data.bsa.org/ 6 https://www.sas.com/content/dam/SAS/en_gb/doc/analystreport/cebr-value-of-big-data.pdf 7 Delivering the smart city: governing cities in the digital age (Arup, 2014) 8 https://www.europeandataportal.eu/sites/default/files/edp_creating_value_through_open_data_0.pdf 9 MEPSIR (Measuring European Public Sector Information Resources) (2006), “Final report of study on exploitation of public sector information – benchmarking of EU framework conditions”, Executive summary and Final report Part 1 and Part 2. D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 13 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! of PSI reuse has been estimated around € 140 billion per year thanks to a 5% increase in accessibility and efficiency.
An example of it (BIS, 2014) is the UK Government Construction Strategy10 aimed at seeking to increase productivity of the construction industry and the performances of the buildings by developing more integrated approaches to the management of data in all the phases of a project, including its operational use. Thanks to this ability to join data on the performance of individual assets with other key functional information, from other sources, the Government can deliver completely new strategic insights for the benefit of business, social enterprise, local authorities and consumers alike in a wide range of applications, including: Transport usage (e.g. Oyster Cards); Patient records (anonymised/pseudonymised); Financial Performance; Environmental Performance; Social Measures; Market Futures; Energy Generation and Distribution; Food distribution. Smart technologies in smart cities also help in increasing servitizations to guarantee a sustainable development. Thanks to collaborative intelligence and service-oriented characteristics citizens can access to seamless services (Li, et al, 2017). This is not only beneficial in terms of efficiency gains but also it helps increasing the economic growth of the city business activities. For example, a recent survey conducted by Mastercard (NYU, 2017) in the district of Brooklyn (NY) showed how smart mobility services integrating multimodal means of transport have created a bump of 0.2 to 0.5% improvement in food retail volume around the sharing stations in the years following the introduction of the service. The service-oriented approach to smart city solutions introduced in more recent debates has led to calls for less technology-oriented and more citizen-centric solutions (Joss, Cook & Dayton, 2017). In this context the key emerging problems met by the cities (Alfino, 2014) in implementing smart cities initiatives are: •! To set the objectives/priorities and measure progress. •! To create a shared understanding to deliver the vision. •! To capture and share information between infrastructure and services •! To understand and manage risks in moving towards smart city services. These key issues show how it is still not easy to transform the potential benefits of smart technologies into economic advantages for the cities and their citizenry. All the above issues call for more detailed standard programmes that starting from the digital technologies already available help in rolling-out Smart Cities initiatives generating economic benefits for citizens and organisations. BIS Department in UK (2013) identified five key dimensions in which standards could help cities to leveraging the economic and business potential of smart technologies. These are (see Figure 2): •! standards related to good practices in the provision of digital services, including sharing of open data, protection of privacy and inclusiveness of services. •! Standards for evaluating smart city performance, building on the current ISO programme to provide a means of evaluating the effectiveness of smart city products and services.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 10 See: www.bimtaskgroup.org D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 14 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! •! Standards around procurement of smart city services, building on the initial economic assessment and funding model. •! Practical approaches to collaboration between partners in the delivery of smart city programmes. •! Specific standards relating to interoperability of systems, including a framework description of smart city systems building.
! Figure 2: Key need for standards (Source: Our elaboration based on BIS – 2013)
Over five key need for standards, only one addresses purely technological issue such as interoperability. Even though interoperability is not just related to the interconnection and intercommunication among technological solutions but also to the capability to help systems to interact with each-others. Indeed, all the above needs are related to seamless integration of data, infrastructure, solutions and system as well as open innovation. As recognized by Alfino (2014): “standards can help to provide right conditions for open innovation and seamless integration”, that on turn “spawn new products, services and new business models, … improving productivity increase and hence improved quality of life”. To this end, all the main standardization bodies such as BSI, ISO and ITO recognized that there are three levels of standards that need to be considered in order to exploit the full potential that standards can offer (SCC, 2017). •! Strategic-level standards - provide guidance to government leadership on the process of developing a clear and effective overall smart cities strategy, identifying priorities, and developing a practical implementation roadmap and an effective approach to monitoring and evaluating progress.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 15 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! •! Process-level standards - cover good practice in procuring and managing cross-organisational and cross-sectorial smart cities projects, including guidance on putting together appropriate financing packages. •! Technical-level standards - cover the practical requirements for products and services to ensure that they achieve the results needed. Joss, Cook & Dayot (2017) provide an overview of the implications of using strategic and process level standards to obtain economic and business impacts in smart cities environment. These are: •! Improve long-term maintenance and repair of city infrastructure. Indeed, the use of international standards reduce lock-in situation in procurement process of spare parts that can be bought anywhere in the world at more competitive advantage. •! Facilitate the development of tailor made-solutions for a given city following a common framework that allow to transfer best practices and to conduct evidence based benchmark with more mature example of smart cities. •! Increase productivity and security with standards to work. Indeed, if international standard are used systems, process and services can be better monitored and managed through sensors and actuators (IoT). They also facilitate their integration. •! Gain significant economy of scale and facilitate scale-up. When international standards are applied it is easier to attract investors and service providers and to implement cost-effective development plan. •! Make cost-effective decisions. More informed cities can lead to transformative decision-making; the adoption of strategic technology and innovations; cost- effective solutions for infrastructure investments; and, smarter, healthier futures for citizens. •! Promote long-term sustainability. The standards establish requirements for a management system for sustainable development in community, including cities, establishing a holistic approach with a view to ensuring consistency with the sustainable development policy of communities. The intended outcomes of a management system for sustainable development in communities include managing sustainability and fostering smartness and resilience in communities. •! Improve the transferability of cost-effective solutions. Standards can provide a common conceptual model of the city as a system of system. This would provide a common framework to support collaboration and information sharing among stakeholders and city representatives. •! Attract investors and increase the value of the provided services. Standards can help to develop more service-oriented architectures and facilitates their interplay. This could facilitate the development of private-public business initiatives and the economic growth of the business activities around the public services in place. In summary standards play a crucial role in the success and efficiency solution deployment by providing decision makers and stakeholders with a lower-cost platform for ongoing innovation and expanding market growth and citizens opportunities D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 16 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! (Lebeck, 2014). Indeed, standards are critical to the evolution of smart cities since they help to smooth the adoption of new technologies and provide a trusted framework for city authorities and practitioners. All of the technological areas outlined in the previous paragraphs (e.g. 5G, IoT, Open data; etc.) are already subject to intense standardization activities with significant ongoing activity in both international organizations such as ISO, ETSI, and the ITU as well as in national bodies (Lea, 2017). However, the more recent standardization initiatives have started looking also at process and strategic standardization tiers (see Figure 4) in order to develop a more holistic smart city model.
Figure 3: Increasing level of abstraction of standardization activities (Source: Lea, 2017)
Even if we are only at the beginning of the standardization process for what concern process and strategic tiers to shape a very powerful smart city standardization framework, evidence of economic benefits in using standards in a smart city environment are already clear in several specific domains (Washburn & Sindhu, 2010), such as: •! Real estate: Reduce operating costs, increase the value, and improve occupancy rates. The well-established US Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) certification encourages the use of Smart Computing technologies such as building management systems to automate heating and cooling and sensors to power down lights when not in use.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 17 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Studies find that LEED-certified buildings decrease operating costs by 8% to 9%, increase building value by 7.5%, improve return on investment by 6.6%, increase the occupancy ratio by 3.5%, and increase the rent ratio by 3%. And compared with other buildings, LEED-certified facilities stand out with 26% less energy consumption, 13% lower maintenance costs, 27% higher occupant satisfaction, and 33% less greenhouse gas emissions. •! Healthcare: Increase the availability and provide more rapid, accurate diagnosis. A smart healthcare system is built on scalable storage systems and a 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. The communication platform enables quick response to emergency services. Videoconferencing technologies facilitate remote medical center services to patients’ homes, for those who can’t travel to hospitals. For example, a public healthcare service provider in Spain, Servicio Extremeño de Salud, centralized the patient information system and made it available to all the hospitals and local healthcare centers and offices in the region. It was able to connect almost 13,000 professionals, with the scheduling system managing 9 million outpatient visits per year. •! Transportation: Reduce traffic congestion while encouraging the use of public transportation. A possible solution that raises funds for new public transportation while encouraging the use of existing public transportation is congestion pricing, which is enabled through Smart Computing technologies. Congestion pricing uses price to signal when drivers should consider taking mass transit, reschedule their trip, or pay a higher fee for driving. This system uses an electronically collected toll system to charge drivers more to use the most congested roads at the most congested times. A successful example of this is London, England, which in 2003 began charging a premium to drive into the city’s congested business district. After introducing congestion pricing, London found a 30% average drop in congestion, 37% average increase in traffic speed, 12% drop in particulate matter and nitrogen oxides, and a 20% decrease in fossil fuel consumption and CO2 emissions. Some of the above-mentioned areas are also depicted in the figure below. Indeed, standards can play a key role within the smart city economy since they help solving importan process, organizational and technical problems that could arise. More specifically, as highlighted in the literature standards help reducing the costs of producing goods and services, opening new markets and increasing efficiency in production processes (Swan, 2000).
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 18 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
! Figure 4: Use of Standards (Source: Spring Singapore)
Especially concerning ICT, standards ensure interoperability and help promoting open ICT ecosystems therefore boosting the introduction of new technologies. Interoperability is of crucial importance since it enables users to match different equipment and services along with ensuring economies of scale for suppliers. Standards in the ICT domain support also safety and reliability and are frequently used by regulators to back user and business interests. Specific areas of adoption of standards include eHealth, cloud computing, internet of things just to name a few. Some examples of standards in the smart cities domain have been included in the table below. Further information and examples on Smart Cities standards can be also found looking at ESPRESSO D2.1 The scope of Smart City standardization.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 19 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Table 1: Examples of standards in the smart city domain relevant for Economic and Business impacts
Standard name Description
Supporting local authorities in understanding the needs of BS 8904 citizens and businesses.
Focusing on energy management. It includes: energy ISO/TC 242 efficiency, energy performance, energy use and measurement of energy usage, etc.
Focusing on intelligent transport systems. More specifically, it includes: standardization of information, ISO/TC 204 communication and control systems for both rural and urban surface transportation, traffic management, etc.
Focusing on setting up general technical rules for the ISO/TC 257 definition of energy savings in renovation projects, industry and regions.
Focusing on balancing economic and environmental impacts in the field of building and civil engineering. ISO/TC 59 Service life planning and open source data transfer are applied.
PD 8101 Guidance on the city planning and development process
Smart City concept model – guidance for establishing a ISO/IEC model data interoperability
Event management standards around achieving ISO 20121 sustainable events
Smart cities Guide to establishing a decision-making PAS 183 framework for sharing data and information services
Principles and requirements for the definition, ISO/TS 37151 and 37152 identification, optimization and harmonization of community infrastructure performance metric
The adoption of standards produces significant tangible economic benefits. Overall it has been estimated that standards contribute to a GDP growth rate of 0,9% in Germany, 0,8% in France and 0,3% in the UK11. According to an analysis from Cebr (2015) standards contributed to an annual productivity growth of 37,4% in the UK that equals
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 11 The Economic benefits of Standardisation (Blind,Jungmittag & Mangelsdorf, 2011). D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 20 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! to €9,2 billion in monetary terms. Significant impacts on revenues have been registered in the UK food and drink manufacturing sector (€11,5 billion per year) along with the ICT sector (€2,3 billion per year). According to a report from Machina Research (2016) city authorities and their partners could potentially waste approximately €286 billion by 2025 if non-standardized IoT solutions are adopted. Therefore, the cost for implementing Smart Cities solutions could reach €0,9 trillion by 2025. By using standardized solutions the overall costs would amount to €656 billion, -30% of the non- standardized total (as shown in figure 5). The above-mentioned savings would be generated by increased interoperability and systems integration along with a reduction of vendor lock-in. More specifically, thanks to standardized solutions it will be possible to reduce installation costs as well as development costs resulting in increased revenues and substantial savings in terms of: applications, data monetization, platform & middleware, project work.
!
Figure 5: Cost savings due to standardised solutions 2017-2025 (Source: Machina research)
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 21 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 10.!Economic impact analysis
10.1.!Our general approach The analysis of the economic impact of the use of standards in Smart Cities has been carried out by mean of a stakeholder consultation and qualitative interviews with relevant cities, a deep analysis of the pilots by mean of a cost-benefit and qualitative analysis, and finally a comparison of the two pilots with similar cases in Europe. The stakeholder consultation has been launched between May and June 2017 in order to collect opinions and information on Smart Cities standards from key players and experts in the field. The involved stakeholders have been sampled mostly based on their levels of involvement in Smart Cities projects. The questionnaire included a total of 23 questions with the aim of collecting information on both demographic and technical aspects. Through a mix of close and open-ended questions, stakeholders involved have been asked to provide information about the type of institution/organisation they work for along with its geographical scope, department/unit just to name a few. Similarly, they have been surveyed about their knowledge of Smart Cities standards and the potential impacts of standards from an economic, societal and legal/administrative point of view. Some additional qualitative inputs have been also collected via interviews with several European cities that provided a letter of support to the ESPRESSO project (Glasgow, Saarbrucken, Zaragoza, Herceg Novi, Lasi City, Bratislava, Kavala). The cities cover a wide geographical scope spanning from northern to southern Europe. For further details on the interview template presented to the cities please refer to Annex V. Regarding the cost-benefit analysis, different templates were sent to use cases’ representatives in both Rotterdam and Tartu in order to collect relevant information (for further details please refer to the Annexes of this report). The main categories of costs and benefits considered are depicted in the following table. Table 2: Costs overview
Costs
SET-UP/INVESTMENTS COSTS: referring to the initial set-up costs sustained for developing and implementing the solution. The main macro-typologies of costs that can be included in this category span from the planning and development of the solution to the acquisition and implementation of related equipment. Examples of costs that can be included within these categories depending on the type of solution are: hardware/software application, IT training, partners’ research and engagement costs etc.
OPERATIONAL COSTS: referring to the costs sustained for running the solution. The main macro-typologies of costs that can be included in this category are: costs for running the solution, costs for monitoring and evaluating the solution, and dissemination costs (e.g cost for promoting uptake or publicize the service). Examples
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 22 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! of costs that can be included within these categories depending on the type of solution are: network infrastructure costs, personnel costs etc.
MAINTENANCE COSTS: referring to the costs sustained for maintaining the systems as fully operative, including depending on the type of solution: hardware and software maintenance, hardware and software upgrades etc.
OTHER INVESTMENT COSTS: including additional investment costs for scaling, upgrading or improving the service.
A similar framework was also drawn up in regard to the economic or monetized benefits that form the other half of the Cost-Benefit Analysis.
Table 3: Monetized benefits overview
Monetized Benefits
TIME SAVINGS: referring to the benefits generated by reduced time in work routines and processes as a result from the adoption of the Smart Cities solution based on standards.
INFORMATION BENEFITS: referring to the benefits generated by enhanced information sharing and data resulting from the adoption of the Smart Cities solution based on standards.
RISK BENEFIT: referring to the benefits generated by enhanced security of data of the Smart Cities solution based on standards
FUTURE COST AVOIDANCE: referring to the benefits generated by a reduced need for future capacity expansion, future operating costs, lower cost for future projects.
In the analysis, the study team also explored qualitative benefits stemming from the general definition depicted in the table below. A set of indicators based on the EU project CITYkeys, and in particular the Deliverable 1.4 Smart city KPIs and related methodology12 have been also used in order to collect additional qualitative benefits.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 12 http://nws.eurocities.eu/MediaShell/media/D1.4-CITYkeys_D14_Smart_City_KPIs_Final_20160201.pdf D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 23 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Table 4: Qualitative benefits overview
Qualitative Benefits Description
Improved The extent to which the solution has increased interoperability (from interoperability between community infrastructures. CITYKeys)
Stimulating an The extent to which the solution is part of or stimulates an innovative innovative environment. environment (from CITYKeys)
Cultural heritage (from The extent to which the solution has helped preserving the CITYKeys) cultural heritage in the city (i.e. historical buildings).
Solution(s) to The extent to which the solution offers a solution to development issues problems which are common to European cities (i.e. traffic (from CITYKeys) management, congestion, etc.).
There are a series of caveats regarding the implementation of the cost-benefit analysis. First of all, the data collected are provisional and partial at best, given that many use cases are still at embryonal stage. Furthermore, at the beginning the research team wanted to carry out a comparison between the situation ex-ante (before the implementation of the use case), and ex-post (after the implementation of the use case). However, due to the initial stage of some of the use cases it would have not been possible to conduct an ex-post analysis before the end of the ESPRESSO project. Therefore, the study team decided to carry out a cost-benefit analysis that could provide an initial overview of the costs sustained and benefits achieved by the use cases thanks also to the adoption of relevant standards. In this regard, it was not possible to obtain a direct assessment of the benefits and costs of the use of standards, which are in any case considered as enablers that allow the systems to function and to have impacts. In fact, the benefits of standards are mainly intangibles and are mostly related to better system interoperability and data exchange and usability. Further caveats are the following: •! From a methodological standpoint, in order to project the cost benefit analysis carried out for each case at European level some more advanced methodologies (i.e. system dynamics) would have been required. However, the implementation of such methodologies would have gone beyond the scope of the tasks 6.2 and 6.3 in terms of time and resource consumption; •! In the analysis only “first degree” effects are considered, i.e. the immediate effects of the adoption of the use case. Second degree effects are not considered. For instance, when taking into account the monetary savings due to a Smart Cities solution, a second-degree effect would be the impact on the overall economy of this very same savings;
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 24 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! •! Finally, many benefits from the use cases are non-monetized, or in any case non- measurable from a monetary point of view. In this regards the research team avoided arbitrarily assigning a monetary value to such benefits, but discussed those benefits in a qualitative fashion. Moreover, the study team performed a comparison between the Espresso pilots and similar cases at European and global level in order to provide an evaluation of the effectiveness and the impact of the pilots, as well as of their strengths, short comings and criticalities. Finally, the study team has projected the results of the cost-benefit analysis at EU28 level, whenever possible and by case fashion. The cases for the extrapolation and projections have been chosen based on the level of maturity and the data availability. Clearly, there can be more innovative cases, that anyway exist for a short time and thereby do not have the data required for the analysis. Moreover, the chosen cases represent typical initiatives applicable to different contexts and countries. Unfortunately, the study team was not able to project the costs and benefits of the 3D City Model because they are still at an initial stage, therefore there is still no data available. In this respect, the study team provided a discussion arguing what the benefits will be at local and European level.
10.2.!Stakeholders consultation and interviews with cities that provided letter of support According to the results from the survey, a wide range of stakeholders belonging mostly to private sector companies and public local body took part to the online consultation, followed by NGO/Association, universities and private research centers.
Figure 6: Overview of respondents by sector (Source: Our elaboration)
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 25 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! The majority of institutions/organization involved had an international scope, followed by a regional scope, EU-level scope and national scope.
Figure 7: Overview of respondents by geographical scope (Source: Our elaboration)
Survey respondents confirmed the importance of standards in Smart Cities solutions. According to the wide majority of stakeholders involved, Smart Cities initiatives based on standards have a higher impact than specific, context related initiatives (approximately 91% of respondents).
Figure 8: Impact of standard-based solutions compared to context related ones (Source: Our elaboration)
As shown in the figure below, standards belonging to the domains: Data visualizations, Data Management, Communications & Networks are those considered as the most prominent in relation to smart cities, followed by standards in the Integration & Orchestration domain.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 26 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
Figure 9: Most important areas and related standards in relation to Smart Cities initiatives (Source: Our elaboration)
According to open comments included in the survey, most of the respondents considered urban planning and energy management as the most common use of standards in relation to Smart Cities initiatives, followed by sensor and monitoring purposes and data management, communication and sharing purposes. Few respondents reported also privacy and security as another domain for the use of standards in the context of Smart Cities solutions.
Figure 10: Use of standards in the context of Smart Cities initiatives (Source: Our elaboration)
The importance of standards in relation to smart grids and urban platforms can also explain the identification of Governance, participation and planning as the most important domain for the use of standards in related Smart Cities initiatives followed by
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 27 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! energy management and buildings. Education and healthcare are regarded the least important by the majority of respondents.
Figure 11: Most important domain for the use of standards in smart cities (Source: Our elaboration)
Figure 12: Least important domain for the use of standards in smart cities (Source: Our elaboration)
The forementioned results can also help explaining the responses in relation to the economic impact of standards. As shown in the figure below, reducing energy consumption costs has been selected as the area with the highest economic impacts resulting from the use of standards (sum of very high + above average). Other areas included were: reducing public expenditure, increasing business opportunities and boosting the creation of new startups.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 28 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
Figure 13: Economic impacts of standards (Source: Our elaboration)
The above-mentioned results appear to be also aligned with the interviews conducted with representatives from the cities that provided support letters to ESPRESSO. For example, as it emerged from the interview conducted with the Greek city of Kevala, standards for geospatial and for structure exchange of dynamic traffic data have been integrated in the city new intelligent transport system solution. The solution aims at improving urban mobility by providing information to citizens on traffic condition and parking spaces along with facilitating the use of public transport. By doing so the system has also the potential to generate substantial savings especially in relation to the reduction of energy costs and enhanced efficiency at city level thanks to smooth traffic conditions.
10.3.!Exploring in-depth our pilot cities and presenting examples of relevant case studies from Europe and around the world The following section presents an overview of the main outcomes emerging from the analysis of the use cases of both the pilot cities of Tartu and Rotterdam. An in-depth cost-benefit analysis has been conducted based on the approach highlighted in section 4.1.
!Tartu Tartu is the second largest city in Estonia, located in the southern region of the country and accounting for a population of 100.000 inhabitants. It is an important cultural and economic center in the region. Despite its small size the city hosts a vibrant community. Tartu has been one of the pioneers at global level concerning the implementation of electronic public services along with public Wi-Fi (implemented across the city in 2000),
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 29 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! digital signature (implemented in 2007) and electric taxi services (implemented in 2012) just to name a few13. As part of the “SmartEnCity” EU-funded Lighthouse project the municipality of Tartu decided to launch an ambitious urban renovation plan. The main idea behind the project has been to turn the traditional soviet-area building blocks called “hrustsovkas” into smart buildings (“smartovkas”) along with implementing some additional innovative solutions in the domains of public transport, street lighting and monitoring. The goal behind the project is to improve the current quality of the building blocks in the area involved along with creating an environmentally conscious community. The pilot area covered by the project includes 2.100 residents across a surface of 39.000 square meters, 23 buildings and 900 dwellings. The overall project is supposed to last for 5 years, at an estimated overall cost of € 40.000.000. The cost-benefit analysis to be carried out in this section will focus on two specific actions part of the Lighthouse project used as ESPRESSO use cases: the “energy efficient building refurbishment action” and the “3D City Model”. Before analysing the above-mentioned actions, a brief description of a similar use case from Stockholm is presented in the box on the previous page. The Hammarby Sjöstad project is one of the most famous and innovative projects in the domain of sustainable districts and provides some valid and useful information to be used for benchmarking purposes with the solutions to be adopted as part of the overall Tartu’s lighthouse project.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 13 http://smartencity.eu/about/lighthouse-cities/tartu-estonia/
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 30 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 3D City Model Background: The 3D City Model is included in the wider open Urban Management ICT platform to be developed as part of the SmartEnCity Lighthouse project. The platform will lead to better decisions and will support service providers in making better investments along with providing consumers with more accessible and user-friendly information. In order to do so the platform will be supported by Smart Metering technologies that will collect data on heating and cooling, electricity along with hot and cold water. Collected data will be used for better regulating and fine tuning energy consumptions inside buildings along with providing information to direct users about their consumption levels. Similarly, external parties such as SMEs or start-ups will be also given access to open data in order to build added-value services. Objectives: As part of the ESPRESSO project information collected and stored in the Urban Management ICT platform related to energy consumption but also related to the positioning of smart street lighting, bus stops in the area, EV charging points, just to name a few, will be displayed via a 3D City Model. The aim of the model is to collect all data currently existing in different formats and translate them into a common 3D city information model based on standards.
Costs
Based on available data, the overall costs spent for setting up the Tartu 3D model account for € 40.000 - € 60.000. These costs refer mostly to staff costs related to the efforts made by partners in the ESPRESSO consortium. Table 5: Costs sustained
Calculation method/description Total
Start-up costs Staff costs allocated for the development of the Tartu 3D € 40.000 - model. € 60.000
Economic benefits
The model is currently in its initial phases and no tangible economic benefits have been recorded so far. However, it is estimated that once the model will be available across the entire city it will be possible for citizens to calculate the energy cost sustained and therefore optimize energy consumption and costs. Similarly, private energy companies will be able to easily calculate energy consumption across the city without additional resources needed from their side.
Discussion
Tartu 3D City Model is currently in its initial phases therefore it has not been possible to perform any detailed analysis on the economic outcomes achieved. However, as reported by Tartu officials the model will soon include the possibility to monitor energy performances achieved by solar panels deployed on buildings along with performing solar irradiation analysis. Furthermore, once the model will be fully operative and
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 31 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! running for several years it would be also possible to download open data to be re- used by citizens along with public and private institutions for the creation of new and better products and services. A further discussion about the benefits of 3D City Models is provided in chapter 6.
Energy Efficient Building Refurbishment Action Background: Approximately 1.600 multi-apartment “hrustsovkas” buildings are located in the City of Tartu. The majority of them has been built during the 1950s in response to housing shortage and growing population. Since their life cycle is estimated to be around 30-40 years a large portion of Tartu’s building stock has now outlived its time. A reduction in terms of quality and safety is thus becoming evident. Similar buildings are also located in other Eastern European countries from Czech Republic to Hungary, therefore increasing the replication potential of any type of solutions that aims at increasing energy efficiency in “hrustsovkas”. Objectives: The objective of the building refurbishment is to reduce energy consumption in “hrustsovkas” buildings by 66% from 270 kWh per m2 to 90 kWh per m2. In order to do so standard refurbishment practices will be combined with different innovative approaches (i.e. energy efficient windows, ICT solutions for energy management, new and more efficient heating system). The building retrofitting will also increase the overall quality and safety inside the buildings therefore enhancing life standards for those living in the “hrustsovkas”. The aim of this use case will be also to integrate information and data concerning energy consumption and solar potential analysis information into the 3D City Information Model.
Costs
Refurbishment activities have been funded using a mix of Commission funding, national support scheme and loans. Overall, based on data currently available, 39.000 square meters will be retrofitted across 20 buildings by private construction companies. Individual tender procedures will be deployed with each construction company. Based on current price estimated the retrofitting will cost €400-500 per square meter. The overall costs for the retrofitting will therefore amount to €16-20 million. These costs can be categorized as start-up costs and will include among the others: labour, materials and transport costs. The table below provides an overview of the costs sustained by the project. Table 6: Costs sustained
Calculation method/description Total
39.000 square meters to be retrofitted x € 400/500 of € 16-€ 20 Start-up costs retrofitting costs per square meters. million
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 32 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Economic benefits
Based on available data the savings generated by the retrofitting activity will amount to € 465.869 every year. Table 7: Benefits achieved
Type of Calculation method/description Quantification benefit
Savings Data still to be provided by use case representative € 465.869 generated by retrofitting activities
Discussion
The main goals of the retrofitting project is to sharply reduce energy consumption levels thus improving the overall energy performance in the involved buildings. As previously mentioned the project will also ensure the achievement of solid yearly economic savings. However, keeping the current costs and benefits configuration it is estimated that the solution will take approximately 34-42 years to pay back. It seems thereby that the major focus of the project will be mostly on achieving intangible social benefits rather than more tangible economic ones. However, this is just a pilot project. In fact, in case of a massive refurbishment of a larger portion of the city, the start-costs would fall steeply due to returns to scale, thus rendering the project more economically viable.
Figure 14: Break-even analysis (Source: Our elaboration)
The Bremen building management project included in the box below provides a valid example of the economic benefits that could be potentially achieved by a solution in the built environment Smart Cities domain.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 33 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
!Rotterdam Rotterdam is one of the main urban centers in the Netherlands and a major economic hub in the region and in Europe due to its large cargo port and active business environment. Overall, the city accounts for low unemployment rate and a significant number of enterprises and businesses across a wide range of sectors. Rotterdam is also home to one of the most dynamic smart cities in Europe. Being a port city, exposed to climate changes and rising water levels, Rotterdam had to constantly foster its resilience by introducing several innovations in the Smart Cities field. One of the most recent projects to be soon developed in Rotterdam is the H2020 funded “Hearth of the South” project which aims at demonstrating the possibility to share energy generated by renewable sources across different buildings (from concert halls to swimming pools) in the selected project area. Geospatial information plays a crucial role in Rotterdam’s Smart Cities development. The city boasts a major geospatial department serving internal and external customers. The focus of the ESPRESSO use cases analysed will therefore be on the city 3D Digital Model and on its usage in relation to two Smart Cities projects in the domain of smart parking and groundwater levels measurement.
3D City Model Background: In order to further improve the city management, the municipality of Rotterdam is currently developing a 3D City Model which will support city officials in their decisions. The first topics to be included in the platform will be related to the above mentioned smart parking and groundwater levels measurement. They will be then followed by virtual shopping, digital neighborhood communities and social events. The model is based on an open software and on open interoperability standards related to 3D City Modelling.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 34 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Objectives: The aim of the model is to open different kind of information about the city for both internal municipal and external stakeholders use. By opening up data it will be also possible to boost the development of specific applications that could produce significant benefits on the wide community. Switching from the current 2D model to the future 3D model is foresee in a time period of 5 years.
Costs
The overall costs sustained for the development of the 3D City Model can be considered as start-up costs. The table below provides and overview of the overall amount of costs sustained by the City of Rotterdam. Table 8: Costs sustained
Calculation method/description Total
€ 650.000 Start-up costs The costs include: (of these •! Deployment of staff; €200.000 •! Acquisition of a new 3D buildings model; were •! Setting up the 3D technology for the open related to infrastructure; acquiring •! Developing other 3D layers including underground the infrastructure and trees. textured 3D model for the entire city – 320 square km, 800.000 buildings)
Economic benefits
The model is currently in its initial phases therefore no tangible economic benefits have been recorded so far. The main benefits will be mostly related to improving urban planning and help private companies/universities/research centers to develop their own models thanks to the use of the city’s open interoperability standards.
Discussion
3D city models are currently gaining a strong momentum worldwide. An open standard approach was chosen by Rotterdam in order to avoid being dependent on other software. As already specified one of the biggest advantages for the 3D city model will be its openness and accessibility also to private businesses. As an example, architects or urban developers could access it and use it as a base to start their urban development projects. Also in this case, a discussion about the benefits of 3D City Models is provided in chapter 6. D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 35 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Groundwater levels measurement Background: Underground water levels is one of the major issues currently facing the city of Rotterdam. Since houses in the city are built on wooden poles it is of crucial importance to keep them wet in order to avoid that they rot and affect the stability and safety of buildings. Furthermore, groundwater levels deeply affect the overall water management and sewage systems along with underground constructions. In order to control underground water levels approximately 2000 wells are located around the city and measured manually at regular intervals. Objectives: In order to improve groundwater levels measurements the city plans to deploy sensors across the city’s wells in order to record all the information needed without the deployment of the city’s dedicated officials. The sensors will enable to implement adjustments and changes reducing the risk of mistakes or miscalculations. They will also enable the city to better plan and reduce maintenance costs. 3 sensors have been currently deployed across Rotterdam, however, the city plans to install more in the near future. The sensors will ensure precise and flexible measurements providing the city with a wide range of data to be also included in the 3D City Model.
Costs
The overall costs for the deployment of the groundwater sensors, currently deployed around the city amounts to € 1.500. Table 9: Costs sustained
Calculation method/description Total
Start-up costs € 500 x 3 (number of sensors currently deployed) € 1.500
Economic benefits
Based on 2013 data the overall budget that used to be allocated by the city of Rotterdam for measuring groundwater levels amounted to € 250.000. The budget covered the labor costs (full-time salary) and equipment (€ 1.500) for three city officials carrying out the measurements in addition to one senior role coordinating the work. In the last year, in order to reduce the overall budget allocated to the activity the city of Rotterdam decided to outsource the manual measurements to a third-party company. Only one city official with the role of part-time coordinating and supervising the work is now deployed. Thanks to this cost-efficiency measure the overall budget allocated to groundwater level measurement now accounts to € 120.000 per year. It is estimated that once the sensors will be deployed across at the overall city or at least across most of the neighborhood it will be then possible to cut the above- mentioned costs, or at least reduce them significantly.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 36 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Table 10: Benefits achieved
Type of Calculation method/description Quantification benefit
Decrease in The aim of this benefit is to determine the overall € 120.000 the cost of costs sustained by the city of Rotterdam to groundwater measure groundwater levels prior to sensors level deployment. measurement The benefit was calculated by taking into consideration the overall number of city official deployed in the activity, their monthly salary and the overall costs for their equipment.
Discussion
Based on the data provided by the City of Rotterdam there are approximately 2000 wells located in the city and measured at regular intervals. As reported also by city officials the costs for deploying sensors across the entire city would be too high. It is estimated that keeping the current cost (€1.000.000 for deploying the sensors across the 2000 city wells) and benefit configuration (€120.000 saving every year) it would take approximately 8 years for the solution to pay back.
Figure 15: Break-even analysis (Source: Our elaboration)
Therefore, the strategy adopted by the local municipality would be to initially place the sensors on defined hot-spots, in order to avoid the full and costly deployment across the entire city. Since manual labor would be still in place a reduction of costs is not foreseen in the short-term. An interesting projection of such benefits at European level is provided further below in the document. The case study presented below provides an overview of an integrated ICT based infrastructure implemented in the city of Oslo in order to optimise street-lighting efficiency and achieve significant cost savings.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 37 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union !
Smart Parking Background: One of the main problems affecting major EU cities like Rotterdam is the lack of available parking spaces. While available parking spaces in garages are well indicated all across the city thanks to electronic billboards, there is a lack of information on public parking spaces located in the city streets. Objectives: The objective of the solution is to deploy sensors across the city in order to inform Rotterdam citizens about the availability of parking spaces reducing the time spent for searching and avoiding congestion. A first test has been done on a small scale. Further implementations of the project are foreseen in the near future.
Costs
Based on the latest data and information provided by Rotterdam Municipality there is an open tender currently going on in order to purchase the sensors to be deployed in a target area. No precise price assessments can be performed at the moment since sensors costs are highly dependent on the purchased number. However, it can be estimated that the cost for one sensor amount to approximately €300. The area affected by the project will include 59 street parking spots on which the sensors will be deployed. !
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 38 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Table 11: Costs sustained
Calculation method/description Total
Start-up costs € 300 x 59 (potential number of sensors to be deployed € 17.700 in test area based on parking spots available)
Economic benefits
One sensor provides 20 MB of data per month. All the data generated by the network of sensors can be re-used for creating new companies and jobs. However, it is not possible to estimate a direct value of those data. On the other hand, it is possible to estimate the monetary waste due to looking for parking on the street. According to Carrara et al. (2015), the total number of parking spaces in the 28 EU countries accounts for 440 million, approximately two spaces for every passenger car. Each car travels for an average of one hour per day, and every day 20 minutes are lost looking for a parking spot. Therefore, the average motorist wastes a total of 2.549 hours of their life driving through the streets before finding a space to park. In 2014, average hourly labour costs were estimated at € 24,6 in the EU28. The value of commuting time (VOCT) is estimated as the trade-off between wage and commuting time, based on the effects wage and commuting time have on the probability of changing jobs. The estimated VOCT is found to be relatively large, in fact about 1.8 times the net wage rate. The average value of commuting time would be € 44,28 per hour on average in Europe. Assuming that a quarter of the hour wasted looking for parking might be employed in commuting, and that a driver uses the car for an average of 50 years, the average annual cost of looking for parking is about € 564 per driver. Considering the number of free on street parking slots in Rotterdam, and the number of parking lots endowed with sensors in the project, the savings in terms of cost of looking for parking would amount to € 20.849 per year.
Table 12: Benefits achieved
I.e. of Calculation method/description Quantification benefits
Savings resulted from Savings generated by considering the average annual reduced cost of looking for parking per driver, the number of € 20.849 costs of free parking slots in Rotterdam and the parking lots looking for to be equipped with sensors in the project. parking spaces
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 39 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Discussion
The project is still in its initial phases therefore the benefits estimation has been made according to relevant literature materials and experts’ input. There is currently no clear information available on when the project will be rolled-out across the city. However, our estimations show considerable savings in terms of cost of looking for parking for drivers. An interesting projection of such benefits at European level is provided in the next section. Furthermore, as reported in the case study box below there are already a wide number of cities in Europe and in the world adopting similar solutions and achieving substantial economic benefits.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 40 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 11.!Projecting economic impacts at EU wide level
In this section, the project of the economic impacts at EU wide level of the case studies are presented. As aforementioned in the methodology, all the projections have been carried out building on the single cases, which benefits and impact are clearly due to use of standards. Energy Efficient Building Refurbishment Action in Tartu For the case of Energy Efficient Building Refurbishment Action in Tartu we implemented a projection of the costs sustained in the city of Tartu by hypothesizing the adoption of the same project by cities of similar size at European level, considering thereby the number of cities with a population between 50.000 and 150.000. The computation for cities of analogue dimension decreases the bias in terms of structural differences. Taking into account all these considerations we see that the total costs for implementing and running the system so far costs € 16 - € 20 million, while the monetary benefits are € 465.869. Taking into account the number of cities of similar size in Europe (891 according to Eurostat data), the expenditure in adopting the systems would be approximately € 14,3 to € 17,8 billion, and the benefits would be about € 41,5 million (per year). Concerning this specific case, the main caveats regard: •! The limited size of the refurbishment, i.e. 39.000 square meters across 20 buildings. •! Additionally, even though the cities considered are of similar size, structural differences due to the administrative systems may still occur. Different level of prices, the different relative prices, and the different currencies in Europe have not been taken into consideration. Groundwater levels measurement in Rotterdam According to some research over the past 50 years, the population living in European coastal municipalities has more than doubled to reach 70 million inhabitants in 2001 and the total value of economic assets located within 500 meters from the coastline has multiplied to an estimated 500-1.000 billion euros in 200014. Given the predictions for climate change, the erosion and flood risk to urban, tourism and industrial facilities, agricultural lands, recreational areas and natural habitats increases over time. Now, considering that 12% of the 91.25215 European municipalities are located on the coasts16, amounting to about 10.950 units, and assuming that all the municipalities will be endowed with sensors to measure groundwater level, the benefits of this system amount to over € 131,4 million (per year). Concerning this specific case, the main caveats regard: •! The limited size of the intervention, different technological levels among European countries/regions/cities.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 14 See for instance http://www.eurosion.org/reports-online/part1.pdf
15 http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=LEGISSUM:g24228&from=EN
16 http://ec.europa.eu/eurostat/web/maritime-policy-indicators/methodology D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 41 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! •! Structural and geomorphological differences at city level, different level of prices, the different relative prices, and the different currencies. Smart Parking Solution in Rotterdam As for the cost of implementing the system, the number of free on street parking spaces amounts to 130 million17, which makes roughly 0.25 parking slots per person in Europe, and thereby considering the population it makes 4.292.500 parking slots in the Netherlands and 155.913 parking slots in Rotterdam. Therefore, the cost of setting the system in all the free street parking spaces amounts to €39 billion in Europe, €1.288 billion in the Netherlands, and €46.774 million in Rotterdam. Considering the projection of the benefits, the number of passenger cars in the Netherlands in 2015 was 8.336.414, and the total number of cars in the European Union was 252.043.348. Assuming that each car is driven by a single driver, and considering the population of Rotterdam, we estimate 302.797 drivers in the city. Therefore, the average annual cost of looking for parking is €170,8 million at city level, €4,701 billion at country level, and €142,2 billion at EU 28 level. Concerning this specific case, the main caveats regard: •! The limited size of the intervention, different technological levels among European countries/regions/cities. •! Structural and geomorphological differences at city level, different level of prices, the different relative prices, and the different currencies
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 17 QPark Annual Report 2013, downloadable at http://annualreport2013.q-park.com/strategy/car-parking-market D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 42 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 12.!Economic Benefits of 3D City Models
Concerning the 3D City Model, in both Tartu and Rotterdam the implementation of the system is at an embryonic stage, therefore it is impossible to provide concrete and precise estimations. However, it is possible to discuss what are the impacts and the implications of the implementation of a 3D City Model. More specifically, the model can be used to perform the following activities: urban planning, disaster management, and tourism. Another important factor relates to the domain of open data. Urban Planning 3D city models can help planners, urban developers, and government officials to understand the realistic and vivid view of the existing buildings, trees, roads, terrain, infrastructures and neighboring environment. Possible applications in urban planning include analysis of traffic flow, pedestrian patterns, zoning, land-use urban design, site location analysis, new town planning, urban growth management, and regulation of urban sprawl. The economic benefits are clearly due to savings for the public administration, with respect to more traditional methodologies of planning, savings for the citizens in terms of lower transportation costs and lower waste in commuting times, as well as lower costs for businesses using the system in performing their activity (e.g. architects). Disaster Management Virtual 3D city models provide important and useful information for different aspects of disaster management, as they allow to memorize the shape and configuration of a city. Immediate access to reference data allows to quickly assess the extent of the damage and to guide helpers. Moreover, 3D city models could help people and the public administrations to rebuild and reconstruct the urban environments damaged by disasters. The savings in reconstruction times and costs are clear. Tourism 3D city models integrated with Google Earth are useful in city marketing and tourism promotion. For instance, places that are not very well known, especially to foreign tourists, could use online 3D city models as the virtual advertisement. In fact, reality- based 3D city models, combined with vegetation in 3D can be optimized for the performance via Internet. It is pretty obvious that such possibilities present a boost for businesses and professionals engaged in the tourism industry. Re-use of Open Data and Public-Sector Information The increase in the availability of open data is also of crucial importance. Clearly Open Data have a huge economic value, especially for what concerns the re-use by businesses to create new products and processes. The market size of Open Data is expected to increase by 36.9% from €55.3 billion in 2016 to 2020 to a value of €75.7 billion in 2020. The forecasted number of direct Open Data jobs is expected to rise from 75,000 in 2016 to nearly 100,000 jobs by 2020. Thanks to the positive economic effect on innovation and the development of numerous tools to increase efficiency, not only the private sector, but also the public sector is
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 43 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! expected to experience an increased level of cost savings through the re-use of Open Data to a total of €1.7 billion in the EU28+ by 202018.
As an example, the Berlin 3D Portal provides CityGML data for 550,000 buildings19. The Berlin 3D Download Portal provides 2nd Level of Detail (LoD2) data that can be used without restriction. Additional detail can be added, for example, and the enhanced data can be re-used and resold.
Figure 16: Berlin 3D Download Portal Source: http://www.opengeospatial.org/blog/2196
A further interesting case is the Helsinki 3D City Model. Helsinki can boost a long tradition of developing 3D city models since 1980s. The Helsinki 3D+ project was launched by Helsinki municipality in 2015 for a total cost of €1 million. The aim of the project is to produce two models in order to enhance the city’s services as well as internal processes along with promoting Smart Cities development, provide access to open data for citizens and companies for research and development purposes. The models are based on a wide range of open, international standards including CityGML, IFC, INfraGML. The database behind the 3D Models enables advanced city analysis and can be enhanced and enriched with new information and data without limits. From a technical point of view the models are highly realistic. Aerial photographs using computerised calculations have been deployed in order to populate the 3D City Models. Helsinki is the first city in the Nordics to use these models and is among the pioneers at global level. They are estimated to generate several benefits spanning from better infrastructure planning, solar potential estimation, visibility analysis just to name a few. Significant tangible economic benefits can be also achieved thanks to the use of 3D Data technologies. Overall, it is estimated that 3D Data could generate €10,9 billion in annual benefits.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 18 European!Data!Portal,!2015,!Creating!Value!through!Open!Data!!! 19 http://www.opengeospatial.org/blog/2196 D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 44 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! A further application of the 3D City modelling paradigm could be the implementation of a circular economy20 at city level, in order to create a “circular HUB” within the confines of the city. More specifically, in a circular economy paradigm the 3D City Models could help in implementing a tool that defines the perfect matchmaking for used materials and products, by visualizing the city in real time, in implementing a design tool to study how to position solar panels, shadow studies, traffic control in a neighbourhood, and finally in keeping track of warehousing and storing by visualization of materials and resources.
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 20 Defined by the Ellen MacArthur Foundation as “one that is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.” In the of 3D city models, a circular city could be described as an industrial and economic system where re-use of products and materials add value to every link in the system. By doing so, it can contribute to a reduction in emission, as well as to savings in terms of resources and more efficient logistics.” For further information please refer to www.ellenmacarthurfoundation.org D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 45 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! 13.!Concluding remarks
As highlighted in this report Smart Cities solutions and technologies enabled by standards are currently becoming central for improving the lives of EU citizens and for generating sizeable monetized impacts on the whole economic and business communities across the continent. Furthermore, standards-enabled Smart Cities solutions play a vital role in supporting EU policy makers in achieving and potentially going beyond the targets set in the framework of the EU 2020 Strategy. Standard- based Smart Cities solutions also allow to actively involve public/private stakeholders in the implementation of specific systems and to foster the creation of a competitive business environment at local city level. The analysis depicted in this report has been carried out by mean of a stakeholder consultation and qualitative interviews with support cities, a deep analysis of the pilots by mean of a cost-benefit and qualitative analysis, and finally a comparison of the two pilots with similar cases in Europe. The analysis and projections of the economic benefits for the ESPRESSO use cases support the above-mentioned conclusions. Both use cases along with the other European Smart Cities solutions presented in the report demonstrate the current competitive edge gained by EU cities concerning the development and implementation of Smart Cities solutions and technologies capable of generating substantial economic benefits. As emerged from the breakeven analysis the economic benefits in terms of cost savings generated by the use cases are mostly long-term due to high initial start- up costs. However, as also assessed by the projections at EU level of these solutions, large-scale deployment would bring huge savings and would also surely ignite returns to scale thereby decreasing the initial start-up costs. Worth pointing out is also the crucial role played by 3D City Models in assuring the full achievement of the benefits of the Smart Cities solutions. Concerning the 3D City Models implemented in Tartu and Rotterdam it was not possible to provide concrete and precise economic estimations in this report due to the initial stage of deployment of both models. However, from the analysis of the use cases it clearly emerged the role played by the 3D City Models adopted in fully supporting city officials and potentially also citizens in a wide range of activities that could generate more indirect type of benefits. As an example, both the Rotterdam and Tartu 3D City Model will contribute to improving urban planning and it will enable private businesses, universities and research centers to develop their own model along with providing access to open data that could support the creation of new start-ups. Some potential suggestions for future applications to be included in Rotterdam and Tartu 3D City Models could be related to the areas of disaster management and tourism. 3D city models can provide useful information in relation to different areas of disaster management, as they allow to memorize the shape and configuration of a city. Thanks to an immediate access to reference data it will be possible to quickly assess the extent of a certain damage. Moreover, 3D city models could support public officials to rebuild and reconstruct the urban environments damaged by disasters with relevant savings in terms of reconstruction times and costs. This could prove extremely relevant for a coastal city like Rotterdam which is likely to be affected by the consequences of climate changes in the near future.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 46 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Similarly, Tartu could benefit of 3D city models integrated with Google Earth for the city marketing and tourism promotion. Smaller and less known places, especially to foreign tourists, could make use online of 3D city models as a virtual advertisement tool. Such option could support businesses and professionals working in the tourism industry. This report highlighted also the important role played by standards, in particular related to the availability of open data and public sector information, for enabling the correct functioning of the 3D City Models and the overall implementation of Smart Cities solutions from both use cases. As previously pointed out, it has not been possible to compute any tangible economic benefit resulting from the use of standards due to the initial stage of implementation concerning both Rotterdam and Tartu 3D City Models. However, it clearly emerged from the analysis the key role played by standards in opening up the market to multiple actors. As an example, the open interoperability standards included in the Rotterdam 3D City model will enable urban developers from private businesses or universities and research centers to access and use it as a base to start the development of their own urban development platforms. Similarly, the use of standards in order to assure replicability of the solutions could contribute pushing European Smart Cities solutions at the forefront of the global panorama. Considering specifically the role of open data, both larger and smaller communities in Europe could greatly benefit from the re-use of Open Data in order to create new products and services thereby increasing employment levels and boosting economic competitiveness. Furthermore, open data could help improving the overall efficiency in the local administrations, thereby leading to better use of resources and lower waste. As final remark, the central role of standards in Smart Cities solutions emerged also from the results of the stakeholder consultation carried out in the framework of the activities conducted for drafting the present report. The almost totality of respondents confirmed the higher impact of standard-based Smart Cities solutions compared to solutions that are not based on standards. As stated in the open comment section of the survey, open-standards are perceived as fundamental for Smart Cities in order to ensure interoperability and scalability by connecting the different technological components of the solutions. Furthermore, in line with the results from the cost benefit analysis, several respondents pointed out to the possibility to reduce energy consumption costs as well as the creation of new business opportunities as the biggest economic impacts generated by the use of standards.
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 47 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Annex I - Stakeholders Survey
H2020 ESPRESSO – Help shaping the role of standards in smart city initiatives
The ESPRESSO project (Espresso – systEmic standardisation apPRoach to Empower Smart citieS and cOmmunities) focuses on the development of a conceptual smart city information framework based on open standards. This framework will consist of a smart city platform (the “smart city enterprise application”) and a number of data provision and processing services to integrate relevant data, workflows, and processes. The project is building this framework by identifying relevant open standards, technologies, and information models that are currently in use or in development in various sectors. The following questionnaire will help the ESPRESSO team to gather insights on the importance of the use of standards in modern smart city initiatives and on their impacts from a legal, social and economic point of view. The results will be used alongside with other assessment tools (i.e. cost-benefit analysis of selected case studies from ESPRESSO pilot cities of Rotterdam and Tartu) for drafting a series of documents dedicated to report on legal and administrative impacts, societal impacts as well as economic impacts.
The survey is structured into four main sections: •! Background questions •! General questions •! Economic/Social impact questions •! Legal impact questions ! !
* Required questions to be filled in
! Background Questions
The following section presents some background questions for collecting relevant demographic information.
Name and Surname
Institution/organisation
Type of institution/organisation (private company, public local body, public national body, public
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 48 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! international body, NGO, association, university, private research centre, public research centre)
Geographical scope of the institution/organisation (international / EU / regional / national)
Role/position
Department/unit
Country where your institution/organisation is based*
!
! General Questions
The following section presents some general questions concerning the importance and role of standards21 in smart cities22.
! Please select which of the following areas and related Yes/No/ Don’t standards you are aware of * know
A) Communications & Networks (ITU G.651, ITU-T G.652 – fiber optics, IEEE P2413 – IoT, ISO/IEC 29182 – sensor network, ISO/IEC 30101:2014 – smart grids) B) Data Management (ISO/IEC 11179-2:2005 or ISO/IEC 11179-6:2005 – metadata registries)
C) Data visualisation (OGC – 12-019 - City Geography Markup Language, OGC – 14-005 - Indoor Geography Markup Language)
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 21 A!standard!is!a!technical!document!designed!to!be!used!as!a!rule,!guideline!or!definition.!It!is!a!consensus!built,!repeatable!way!of!doing!something.!!Standards!are! created!by!bringing!together!all!interested!parties!such!as!manufacturers,!consumers!and!regulators!of!a!particular!material,!product,!process!or!service.!All!parties!benefit! from!standardization!through!increased!product!safety!and!quality!as!well!as!lower!transaction!costs!and!prices!(CENB2017,! https://www.cen.eu/work/endev/whatisen/pages/default.aspx). 22 smart!city!is!the!name!given!to!a!settlement!area!in!which!systemically!(ecologically,!socially!and!economically)!sustainable!products,!services,!technologies,!processes! and!infrastructures!are!used!(ESPRESSO!D2.1!–!The!Scope!of!Smart!City!Standardization,!available!at!http://espresso-project.eu/). D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 49 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! D) Integration & Orchestration (ISO/IEC 17788:2014 – Cloud Computing, ISO/IEC TR 30102:2012 - Distributed Application Platforms and Services (DAPS))
According to you, how would you rate on a scale from 1/5 1 to 5 (where 1 is not important and 5 is very important) the areas and related standards, previously selected, based on their importance in smart city initiatives23 *
A) Communications & Networks (ITU G.651, ITU-T G.652 – fiber optics, IEEE P2413 – IoT, ISO/IEC 29182 – sensor network, ISO/IEC 30101:2014 – smart grids)
B) Data Management (ISO/IEC 11179-2:2005 or ISO/IEC 11179-6:2005 – metadata registries)
C) Data visualisation (OGC – 12-019 - City Geography Markup Language, OGC – 14-005 - Indoor Geography Markup Language)
D) Integration & Orchestration (ISO/IEC 17788:2014 – Cloud Computing, ISO/IEC TR 30102:2012 - Distributed Application Platforms and Services (DAPS))
Looking at the previously selected key areas, please Text indicate here some specific use in the context of a smart city initiative you might be aware of.
A) Communications & Networks (ITU G.651, ITU-T G.652 – fiber optics, IEEE P2413 – IoT, ISO/IEC 29182 – sensor network, ISO/IEC 30101:2014 – smart grids)
B) Data Management (ISO/IEC 11179-2:2005 or ISO/IEC 11179-6:2005 – metadata registries)
C) Data visualisation (OGC – 12-019 - City Geography Markup Language, OGC – 14-005 - Indoor Geography Markup Language)
D) Integration & Orchestration (ISO/IEC 17788:2014 – Cloud Computing, ISO/IEC TR 30102:2012 - Distributed Application Platforms and Services (DAPS))
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 23 smart!cities!initiatives!help!addressing!problems!of!common!interest!with!the!aid!of!ICTs!(ESPRESSO!D2.1!–!The!Scope!of!smart!city!Standardization,!available!at! http://espresso-project.eu/). D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 50 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Are you perhaps aware of any other domain and Text related standard not stated in the previous question *
According to you, how would you rank the following Text domains [1] (from 1 to 9) based on the importance of standards in related smart cities initiatives24*
A) Education
B) Energy Management
C) Environment
D) Transport/Mobility
E) Healthcare
F) Governance, Participation and Planning
G) Security/Safe City
H) Buildings
I) Infrastructure, wastewater, water and sanitation systems
Based on the results from the previous question, Text please provide an explanation for choosing the domain ranked as number 1. Include also some practical examples of standards implementation in smart cities initiatives related to that specific domain *
A) Education
B) Energy Management
C) Environment
D) Transport/Mobility
E) Healthcare
F) Governance, Participation and Planning
G) Security/Safe City
H) Buildings
I) Infrastructure, wastewater, water and sanitation systems
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 24 According to the list provided in ESPRESSO’s deliverable D2.3 – The Scope of smart cities use cases D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 51 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Do you think that smart city initiatives based on Yes/No/ Don’t standards (being more interoperable, scalable, know transferable) would have a higher impact than specific, context related initiatives? *
Please state why you answered yes to the previous Text question
!
Economic/Social impact Questions
The following section is set to collect relevant information concerning the economic and social impacts of standards in the context of a smart city initiative.
According to you, on a scale from 1 to 5 (where 1 is very 1/5 low and 5 is very high) how would you rate the impact that the use of standards in the context of a smart city initiative could have on the following areas? * Economic impact: Reducing energy consumption costs Reducing public expenditure Increasing business opportunities Boosting the creation of startups Social impact: Improving building energy efficiency Decreasing pollution emissions Boost recycling and renewable resources Improving housing conditions Improve urban planning/mobility Improve healthcare delivery Improve independence of people with disabilities and senior citizens Increase participation and policy acceptance !
! !
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 52 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Legal impact Questions
The aim of the following section is to assess the extent to which EU cities and organizations are aware and ready for adopting the GDPR (2016/679) 25.
The GDPR will enter into force in May 2018. How much 1= nothing, do you know about it? * 2=few incomplete information,
3=basic information, 4=enough information, 5=full and comprehensive information
Based on your knowledge about GDPR, do you think Yes/No/ Don’t your organization will have to comply with it? * know
Does your organization conduct systematic monitoring Yes/No/Don’t (including employee data) or process large amounts of know personal data26? *
Has your organisation already identified / is planning to Yes/No/Don’t identify a Data Protection Officer27 or a similar figure? know *
In the case of a data breach, the organization has to Yes/No/Don’t notify a data protection supervisory authority28 within know 72 hours. Do you think your organization has in place all the needed procedures to detect and report a data breach? *
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 25 The EU General Data Protection Regulation (entering into force in 2018) is one of the main regulatory conditions that will affect the provision and activities of future smart cities services. All the organizations dealing with personal data will have to comply with it. 26 The GDPR defines personal data as "any information relating to an identified or identifiable natural person, that is everyone who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to his physical, physiological, mental, economic, cultural or social identity.!
27 The GDPR defines a Data Protection Officer as the person responsible for facilitating compliance with GDPR through the implementation of accountability tools (such as facilitating or carrying out data protection impact assessments and audits), and who acts as intermediary between relevant stakeholders (e.g. supervisory authorities, data subjects, and business units within an organisation).
28 The GDPR defines a data protection supervisory authority as an independent authority, appointed by each member state, in charge of monitoring the data protection, give advice to the government and in case of data violation, start legal procedures. The GDPR defines a personal data breach” as “a breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to, personal data transmitted, stored or otherwise processed.
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 53 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Is your organization designing data protection and Yes/No/Don’t privacy requirements29 into the development of know processes and systems? *
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 29 An underlying concept of the GDPR is Privacy by design, which requires that data processing products and services are designed and built keeping legal requirements in mind from the beginning D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 54 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! Annex II - Interview template used for data collection on 3D City Platform in both Tartu and Rotterdam
General Objectives of the initiative •! General Activities performed •! Geographical scope •! Roadmap for the implementation Description of the initiative •! Management •! Stakeholders involvement •! Funding •! Inputs (personnel, machinery, cost) o! Standards: !! Standard adopted !! Reason for adoption !! Function of the standard (description of the process) !! Alternative without standards? !! Alternative standards? •! Outputs (services provided, structures built) •! Knowledge of similar initiatives? Discuss on similitudes and differences Bottlenecks and drivers •! What are the bottlenecks of the initiative? •! What are the success factors of the initiative? •! Do you have any tangible benefits that have been achieved that you could present us? Lessons learnt and recommendations •! What are the lessons learnt from the initiative? •! What are your views on scalability and transferability? •! Do you have any recommendation for the implementation? Conclusions •! Is there anything else you would like to convey? !!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 55 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! ! !
Annex III - Cost-Benefit data collection template for the Rotterdam pilot
H2020*ESPRESSO*–*WP6*–*Cost/Benefit*Analysis*for*the*assessment*of*social*and*economic*impacts of*the*actions*proposed
Costs:*
I.-Please-fill-this-part-in-relation-to-the*start'up*costs-sustained-for-the-Ground*Water*Level*'*Parking*Spaces*solutions-and-for-the-CityGML*based*3D*model Here-below-an-overview-with-the-categorization-of-the-different-costs:
System*planning*and*development:* costs-sustained-for-developing/planning-the-necessary-infrastructures-for-the-implementation-of-the-solutions-and-model-(-i.e.- hardware-and-sotware-application,-IT-training,-retaining-and-support,-etc.-) System*aquisition*and*implementation: costs-sustained-for-aquiring-the-necessary-tools-and-infrastructure-for-the-implementation-of-the-solutions-and-model-(-i.e.-system- interoperability-with-other-systems,-cost-of-outsourcing-the-technology-solution,-etc.-)
Start'up*Costs Tot
system&planning&and&development system&aquisition&and&implementation
Ground-Water-Level-solution 0
Parking-Spaces-solution 0
CityGML-based-3D-Model 0 0
Comments:*Please-fill-free-to-add-in-this- section-any-additional-information-you-deem-as-important--
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 56 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! ! !
!
II.*Please'fill'this'part'in'relation'to'the*operational,*maintenance*and*other*investement*costs'sustined'for'the'Ground*Water*Level*?*Parking*Spaces*solutions* and'for'the'CityGML*based*3D*model.'Here'below'an'overview'with'the'categorization'of'the'different'costs:
Operational*costs Costs*for*running*the*system: costs'sustained'for'the'daily'solutions'and'model'operations'('i.e.'infrastructure'costs,'personnel'costs'etc.')
Maintenance*costs System*maintenance*costs:* costs'sustained'for'maintaning'the'solutions'and'model'('i.e.''Hardware'and'sotware'maintenance,'etc.')
Other*investment*costs additional'investment'costs'sustained'for'scaling,'upgrading'or'improving'the'solutions'and'model
Operational*Costs Maintenance*Costs Other*Investment*Costs Tot Additional'investment'costs'for' Costs'for'running'the'system System'Maintenance scaling,'upgrading'or'improving'the' service
Ground'Water'Level'solution 0
Parking'Spaces'solution 0
CityGML'based'3D'Model 0 0
Comments:*Please'fill'free'to'add'in'this' section'any'additional'information'you'deem'as'important''
! !
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 57 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! ! !
!
Annex IV - Cost-Benefit data collection template for the Tartu pilot
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 58 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! !
H2020*ESPRESSO*–*WP6*–*Cost/Benefit*Analysis*for*the*assessment*of*social*and*economic*impacts of*the*actions*proposed
Costs:*
I.-Please-fill-this-part-in-relation-to-the*start'up*costs-sustained-for-the-Energy*'*City*Information*Modelling*solutions* Here-below-an-overview-with-the-categorization-of-the-different-costs:
System*planning*and*development:* costs-sustained-for-developing/planning-the-necessary-infrastructures-for-the-implementation-of-the-solutions(-i.e.-hardware-and-sotware -application,-IT-training,-retaining-and-support,-etc.-) System*aquisition*and*implementation: costs-sustained-for-aquiring-the-necessary-tools-and-infrastructure-for-the-implementation-of-the-solutions-(-i.e.-system- interoperability-with-other-systems,-cost-of-outsourcing-the-technology-solution,-etc.-)
Start'up*Costs Tot
system&planning&and&development system&aquisition&and&implementation
Energy 0
City-Information-Modelling 0 0
Comments:*Please-fill-free-to-add-in-this- section-any-additional-information-you-deem-as-important--
! !
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 59 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! !
II.*Please'fill'this'part'in'relation'to'the*operational,*maintenance*and*other*investement*costs'sustined'for'the'Energy'A'City'Information'Modelling'solutions' Here'below'an'overview'with'the'categorization'of'the'different'costs:
Operational*costs Costs*for*running*the*system: costs'sustained'for'the'daily'solutions'operations'('i.e.'infrastructure'costs,'personnel'costs'etc.')
Maintenance*costs System*maintenance*costs:* costs'sustained'for'maintaning'the'solutions'('i.e.''Hardware'and'sotware'maintenance,'etc.')
Other*investment*costs additional'investment'costs'sustained'for'scaling,'upgrading'or'improving'the'solutions'
Operational*Costs Maintenance*Costs Other*Investment*Costs Tot Additional'investment'costs'for' Costs'for'running'the'system System'Maintenance scaling,'upgrading'or'improving'the' service
Energy 0
City'Information'Modelling 0 0
Comments:*Please'fill'free'to'add'in'this' section'any'additional'information'you'deem'as'important''
! !
!
!
!
!
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 60 of 61 ! ESPRESSO systEmic Standardisation apPRoach to Empower Smart citieS and cOmmunities
Co-funded by GA 691720 the Horizon 2020 Framework Programme of the European Union ! ! Annex V - Interview template used for data collection from cities that provided a support letter to ESPRESSO
1.! What changes, in terms of the Smart Cities concept, do you see for your city/metropolitan area in the coming years (5-10)?
2.! 2 Are you familiar with the European Digital Agenda? What steps have you taken to align with it and what would be your key urban infrastructure which will change in the next years, respective to the DA?
3.! 3 Do you currently have a Smart City strategy? If not, what impact do you think there would be on a planning / local development policy document?
4.! What "Smart Cities" solutions do you use or implement at local initiative level? For these, can you please tell us about:
o! Experience and Impact o! Typology of technology (sensors, protocols) o! The way data is stored o! Security and confidentiality o! Applications 5.! Do you use standards in public procurement?
6.! What would be the ESPRESSO results’ applicability for your city?
D6.3 - Report on business impacts File: D6.3 Report on business impacts.docx Page: 61 of 61 !