Shaping Cities with Evidence-Based Decisions
Citizen Driven Smart Systems (CDSS)
Authors: Public and Social Policies Management (PSPM) Group, YES
BANK Ltd
Tushar Pandey- Senior President & Country Head
Shashwati Ghosh- Vice President, Swati Sharma- Associate
Abstract
Smart cities – why they are important?
Cities are centers of modern economy. Cities not only propel economic growth but offer
avenues for innovation and development of human capital. With currently over 377
million staying in cities, the number would reach a staggering 600 million by 2030. If not
managed well, the existing cities would soon become unlivable and the country would
not be able to wield its growth potential. India’s vision of developing 100 smart cities
will be instrumental in proactively resolving issues and optimizing resource usage.
Smart cities would employ IT infrastructure to coordinate and integrate diverse silo
information, which will significantly improve urban efficiency.
What constitutes smart? Setting priorities
Smart cities encompass various factors and there are many yardsticks for measuring
how ‘smart’ they are. Giffingers (2007) measures on six axes based on theories of
regional competitiveness, transport and ICT economics, natural resources, human and
social capital, quality of life, and participation of citizens in the governance of cities.
Long term vision for thematic development of urban areas is the key to driving
sustainable growth. For instance one aspect could be development of human resource.
Study by Berry indicates that the most rapid urban growth rates have been achieved in
cities where a high share of educated labour force is available.1 Setting priorities for
smart cities in India is essential to balance development and ensure optimum
resources utilization.
This paper focuses on the contours of developing globally competitive smart cities in
India through facilitating innovative Citizen Driven Smart Systems (CDSS).
.
1
Berry, C. R.; Glaeser, E.L. (2005). "The divergence of human capital levels across cities".
2
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
1. Introduction
377 million of India’s population lives in cities. The number would reach a
staggering 590 million by 20302. Planners and decision-makers are faced with
several challenges – developing economic centers, attracting investment and
providing employment opportunities, educating the young, keeping citizens safe
and healthy and enabling smooth flow of goods and people while conserving the
environment and resources (Fig. 1). Cities are country’s economic engines and
account for about 70% of the GDP. Developing better strategies for creation of
new cities is, therefore, a national imperative. If executed well, India’s vision of
developing 100 smart cities can trigger tremendous economic growth.
Figure 1 Model of Balanced Economic Growth
Source: IBM
2
McKinsey, India’s Urban Awakening
3
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
This paper draws strategies for developing a framework for smart cities in
India through analysis of international case studies. Keeping in view the
growing population and the need to develop avenues of employment, India
must focus on development of human capital and business, and pro-active
smart city planning measures aimed at Citizen Driven Smart Systems
(CDSS) to foster socio-economic growth.
1.1 Shaping city with evidence based decision:
Smart cities do not have a single, acceptable definition. The concept
encompasses many dimensions including smart urban systems for transport,
energy, healthcare and education, water and waste, aimed at improving
economic prospects, environment and quality of life.
Employing information technology as core infrastructure to collaborate among
disparate agencies and solve urban issues will ensure holistic development (Fig.
2). Smart Cities will provide the necessary growth stimulus to the real estate and
housing sector. Slew of measures announced including outlay of INR 7,060 crore
for setting up smart cities, channelizing INR 4,000 crore for affordable housing
via National Housing Bank, tax incentives on home loans and improvement in
transport logistics which will serve as precursor to realize the vision of ‘100 smart
cities’ and ‘Housing for All by 2022’.
It is important to ensure smart city systems are compatible with
established framework. Smart cities can play an important role in strengthening
business capability to match global standards.
4
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
>E-ticketing
Logistics
>DFC
Future
Logistics
Planned
Existing
Figure 2 Planning for Smart City Framework in India
Logistics
>Bullet Train
Business/
Governance
Business/
Governance
Business/
Governance
> Unique Identification
(UID)
> Standard Framework
E-governance
>Urban Labs
> E-governance, State
Wide Area Network
(SWAN, Rural Kiosks
> Jan Dhan Yojna
> Participatory
Budgeting/ Planning
Education
> Massive Open
Online Courses
(MOOC ), Manipal
University, Symbiosis
Center
>e-business, Eemployment,tourism
Education
> Digital Literacy
> Digital India Project smart phone for
everyone by 2019
Healthcare
Healthcare
>Pilot - E-healthcare
> National e-health
records in sync with
UID
(Cisco E-healthcare;
Karnataka, Ashoka Ehealthcare; Punjab,
IEEE E-healthcare;
Ahemdabad)
Urban Services
> Urban Transport
Mass Rapid Transport,
metro systems etc. in
Tier I cities
> Water and Drainage
Roof top rain water
harvesting norms,
recyling
>Community Portal
Education
>Standard Framework
for E-courses
> Awareness - smart
city system and
participatory
framework
Healthcare
> Health care at
home
Urban Services
>Multi-modal Hubs,
Intelligent transport
systems
> Water
Water system
upgrades,
consumption
monitoring,
wastewater treatment,
environmental safety
systems, and flood
management;
5
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
Future
Zero Garbage
Initiative, Katraj, Pune
Planned
Existing
> Solid Waste
>Waste management:
Waste collection
modelling and
consistent supply to
energy generation.
> Power
> Power
GRIHA norms for green
buildings
Smart grids or energy
networks: Demand
Resource Management
(DRM), electronic
vehicle support,
energy efficiency
program, and
renewable energy
integration;
> Service Benchmarks,
E-billing
Disaster
Management
System
India Disaster Resource
Network
Climate Change
Adoption
Disaster
Management
System
Emergency Response /
Warning Activities
emergency-related
communications
infrastructure.
Community Based
Disaster Preparedness
Source: Yes Bank Analysis
Applications focused on Citizen Engagement can help connect public to the
government. This in turn will help in better understanding and assessment of
needs and priorities for suitable action.
6
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
2. Smart Cities in India
2.1
Smart City Framework: Starting Point
1. Strength
 Robust IT sector: IT is a high impact sector in India, and digital
enterprises are expected to contribute USD 225 billion by 2020. Share of
IT services is 64% of the total revenues generated by the sector. Armed
with a strong ICT sector, India can march into developing services for
Smart Cities.
 Major Development initiatives: DFC can serve as a growth enabler for
smart cities. Efficiently integrating land-use and transportation planning
can trigger sustainable and competitive development.
2. Opportunity
 Competitiveness of Urban Local Bodies (ULBs): Establishing index
can help to improve local governance, respond to local needs and
facilitate regional and global comparison of cities based on policy
effectiveness, provide platform for civil society and private sector
engagement, monitor capacity building and improve performance of the
ULBs.
 Opportunities for local ICT sectors and entrepreneurship: E-services
and digital literacy programs can address inequalities and digital
democracy. Building open information platform can initiate new lines of
7
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
thinking and innovation, and develop effective applications for providing
urban services.
 Introducing participatory city planning: Participatory Budgeting (PB)
through ICT platform will develop the communities’ potential to address
inefficiency and exclusion and ensure fiscal discipline at levels.
3. Weaknesses
 Top down Decision Making Process: Policy formulation essentially is a
top
down
process,
lacking
attention
to
needs
of
citizens
and
implementation strategies.
 Digital Divide: Even though India is emerging as an IT superpower,
digital illiteracy, lack of infrastructure and poor internet connectivity can
defeat smart city initiatives.
 Lacking orientation on entrepreneurship: There is an urgent need to
scale up E-skill development and entrepreneurship programs to drive the
economy.
Figure 3 Percentage of Formally Skilled Workforce
Source: IDFC
8
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
4. Threats
 Weak policy and funding instruments: Funding constraints need to be
effectively addressed through policy instruments that facilitate private
sector and foreign investment. Real Estate Investment Trust (REITs) and
Infrastructure Investment Trust can play an important role in developing
real estate sector and hence smart cities in India. FDI will serve as an
important investment channel.
Policy structure pertaining to land acquisition, approval process and
taxation stymies development and definitely needs more rounding up.
 Low level of investment in R&D and innovation: India’s investment in
R&D is less than 1% of the GDP, as compared to China where R&D
expenditure will increase to 2.2% of the GDP by 2015. Technological
innovation is essential to drive smart city systems, to minimize expenditure
on service provision and improve efficiency.
 Vulnerable business models: Business risk should be offset through
suitable PPP framework which can benefit from private sector
mechanisms and experience. Focus on community centric systems and
social inclusion can ensure adoptability and success of smart city
systems.
There are many interpretations of smart cities. Analyzing the country’s need and
developing business models that incorporate smarter solution to optimize
operations and provide tangible benefits should be prioritized.
9
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
2. 2 Global Development Trends: Innovation ecosystem
1. Stockholm
Strategies
 Citizen centric approach focused on creating e-government services - created
over 50 digital services, which has cut management costs.
 Stokab, a city-owned company, funded a large fibre-optic broadband network.
The company is responsible for managing the use of that infrastructure, and
leasing connections to the network.
 First city in the world to roll out 4G
 Governance assessment through integrated management system, providing
flexibility and freedom to act, without needing to take all the decisions up to
the political level.
 ICT and smart grid – driving the goal to turn Royal Seaport carbon neutral by
2030.
What India can adopt?
Stockholm City operates through structured dialogue with citizens and private
companies. Citizens are asked what services they would like the city to provide,
and private companies are also given space to interact with the council.
2. Helsinki, Finland - Smart City cluster
Strategies
 Development of digital urban services that make travelling and living in the
city easier.
 Services are used with mobile devices and they are an integral part of their
urban environment.
10
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
What India can adopt?
 Innovation Communities test and develop user-driven innovation
processes, methods and tools. Innovation Communities bring together
companies, public sector organizations, research institutions and citizens.
Together all these actors create an ecosystem where the best practices
are being shared.
3. Oulu, Finland Adapt policy instruments to create business
Strategies
 Fifth largest R&D spending in the world
 Public-Private-People-Partnership.
 Strategic partnership of the Oulu Triple Helix development Alliance, called the
Oulu Innovation Alliance (OIA), consisting of the City of Oulu, the University of
Oulu, the Oulu University of Applied Sciences, the VTT Technical Research
Centre of Finland and Technopolis.
 Mandating Green Buildings and Establishment of Eco-City Concepts
 Future Service Society Program to enhance digital inclusion.
 Citizens portal for access to municipal and e-services
What India can adopt?
 Living Labs - The PATIO test user community program adapted to foster
user-driven open innovation. The program encourages the inclusion of
citizens of all ages in the user-driven open innovation of new services and
in the co-creation of services with businesses and developers.
a. OULULabs infrastructure provides a free wi-fi network panOULU,
which covers large parts of the city
11
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represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
b. Online
test
user
forum
PATIO
provides
companies
and
organizations an opportunity to easily collect users’ feedback on
their products, services or ideas.
2.3 Setting Priorities
 Knowledge City
Technological Innovation: It is important to link smart city program
with academia and industry to metamorphosize technological innovation
and support stakeholders to adopt new practices.
Building Human Resource Capital: Skilling India’s demographic
dividend is important to wield its development potential. With over 672
million people out of 1.1 billion in the working age group of 15 to 59 years,
delivering skills remains a challenge. The Government targets to train 500
million people by 2022. Key employment generating sectors which would
require skilled and certified workforce would include Automotive, IT, Retail
and Healthcare.
Online learning platform can be an important vehicle to deploy courses
aimed at enhancing skill sets and increasing employability. National
Digital Literacy Mission and e-learning services can transform the
education environment in India. With IT as the backbone; the proposed
smart cities can facilitate the move.
12
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
 Manufacturing Hubs
Urbanization and economic development go hand in glove, that
encourages the workers to shift away from the primary sector to more
lucrative sectors such as manufacturing and services. Policies aimed at
improving growth of non-farm activity and reduce dependence on
overburdened agriculture sector are imperative to turn smart cities into
growth centers. This would require a two pronged approach – fostering
skill development initiatives and competitive business environment.
Figure 4 Employment Shares and Labor Productivity
Source: Economic Survey, 2012-13
13
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
3. Success of Smart Cities
Urbanization is integral to development. Good governance, progressive
economic
policies
and
private
sector
investment,
innovation,
business
establishments and entrepreneurship essentially drive economic growth.
3.1 Bringing together all Actors
Forging links between citizens, business and government through a smart
network will not only enhance the nation’s image but also improve business
and investments.
3.1.1 Government:
Planners are faced with the difficult task of meeting aspirations of the
growing population. Smart city vision and strategies should reflect the
needs and circumstances of the communities and economic activities.
3.1.1.1
Standards for Smart Cities
Evolving framework and standards for implementing smart city strategy
can help in better co-ordination between various stakeholders,
accelerating the implementation and ensure management of time and
resources. Benefits of such a program include:
o Increased transparency, sharing the information and building
useful applications
o Allow for better decisions and improved performance
o Stimulate innovation.
o Foster greater collaboration.
14
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
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Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
o Promote predictive analytics.
o Conserve financial resources.
o Become more effective, efficient, and equitable.
Some examples of standards developed for guiding growth of Smart Cities:
1. The British Standards
The British Standards Institution (BSI) is developing standards for
Smart Cities in the United Kingdom. This involves the following
initiatives:
o PAS 180 Smart city terminology which provides industryagreed understanding of smart city terms and definitions to
be used in the UK.
o PAS 181 Smart city framework provides an insight into
good practices and framework for city leaders to develop,
agree and deliver smart city strategies
o PAS 182 Smart city data concept model provides a
framework for interoperability of systems and data-sharing
between agencies.
o PD 8101 Smart city planning guidelines and PD 8100
Smart city overview provide standards to support the
widespread adoption of
common approaches to the
implementation of smart city products and services.
These types of initiatives need support and involvement not only
from the government sector, but also from the wider Smart City
community.
2. The Smarter City Assessment Tool has been developed by IBM
Global
15
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Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
The tool measures cities’ performance against indicators that
allows
for
comparison,
identification
of
challenges
and
benchmarking of cities (Fig. 4).
Figure 5 Smart City Assessment Tool
Source: IBM
3. ISO standards for Smart Cities
ISO has recently released standards - ISO 37120:2014, that
provides data indicators to measure city performance. The
standards provide a tool to evaluated governance and service
delivery, international benchmarking, transparency and funding
mechanism.
3.1.1.2
Conducive Business environment
Regulatory environment plays an important role in creating an
ecosystem conducive for business. World Bank's Doing Business 2014
data ranks India 134 out of 185 countries analyzed. Government
16
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Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
policies must aim at reviving investments in higher productivity sectors
such as manufacturing and services to unlock more avenues of
employment.
Smart cities can create a business climate conducive to increasing
private sector participation in business and industry in India (Fig. 2).
This would lead to a multiplier effect spurring economic growth.
Figure 6 Smart Cities facilitating Business
Source: YES BANK Analysis
17
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
3.1.2 Fostering user Driven Innovation
A smart city strategy should involve all actors, organizations, communities,
R&D, NGOs, clusters, and authorities. The partnership strategy should
aim at achieving a common vision, flagship projects, collaboration and
synergy.
Figure 7 Citizen Engagement for Smart Cities
Source: Yes Bank Analysis
CDSS can ensure social inclusion. The Indian IT sector has made a
mark in the world and has the potential to improve relationship between
citizens, business and governments. Proactive governance, leveraging IT
will improve efficiency, bring in transparency and remove distortion in
service delivery. Stakeholder engagement is indispensible to bring in
efficacy in innovation process.
18
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
Deploying
systems
such
as
Supervisory
control
and
data
acquisition (SCADA) , demand response etc., to provide real time data for
delivering and managing programs and services such as energy and
smart grid integrating renewable energy, mobility, water, social programs,
public safety, can ensure sustainable development of Indian cities.
Citizens can play a more active role in shaping and managing their own
neighbourhoods and therefore the city. Linking smart system to urban
communities by providing relevant information and effective feedback loop
would help in continuously evolving the system and its processes
3.1.3 Private Sector
It is essential to work closely with the private sector to collaborate and
educate them on stakeholder roles and, evolve policies and business
models necessary for implementing Smart City solutions.
o Opening of public data - With open access to public data, new and
more versatile services are created by individuals and companies.
o Resource Mapping – Systematic resource mapping is essential to
meet the needs of the people in the most effective manner. The study
can help identify alternative trajectories to meet the growing demands
of the country and help direct private sector investment to achieve the
desired development goals.
o Policies - To evolve in a continuously dynamic environment, we need
to facilitate private sector participation. This will not only help in
augmenting infrastructure, but encourage innovation and better
management. Suitable policies encouraging private sector investment
19
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889
can
unlock
employment
opportunities
and
usher
economic
development.
Conclusion
Smart Cities: Building a Progressive Nation
Framing policies with clear goals and measurable outcomes by adopting suitable
standards is critical to ensure success of the Smart City initiative. It is equally essential
that citizens are empowered through the development of Smart Cities and in the
process itself are able to contribute to urban development through participatory
governance models. Citizen Driven Smart Systems will pave the way forward for
smart and efficient cities in India.
Smart cities can help bridge the housing and infrastructure gap and catalyze equitable
growth. Quality skill development and research acumen are the most important factors
for leveraging the demographic dividend. Providing an enabling environment conducive
to youth entrepreneurship by evolving new mechanisms to improve access to markets,
services and information and easing out processes for setting up business will help new
economic centers to flourish. Smart Cities are expected to deliver the dreams of modern
and young India and proactive planning would definitely chart the way ahead.
20
The views expressed by the authors are their own and do not necessarily represent the views of the organization they proudly
represent
Contact email: Tushar.pandey@yesbank.in/ shashwati.ghosh@yesbank.in/swati.sharma4@yesbank.in
Phone no: 011-66569020/ 9871598889