Developing Smart Cities In India: Business Opportunity And Operational Activities

Overview of smart cities around the world

This report highlights the aspects related to the development and building of a smart city and the business opportunity in developing the smart cities in India. Automation is the biggest factor for developing a better future for the local communities and allowing them a better and comfortable lives. The information technology has become the integral part of the lives and widen the scope of accomplishment of the daily operational activities. There is not any sector left behind that is untouchable of the information technology for strengthening the ways and efficiency of work delivery. Smart cities can be defined as the automated management of the entire city’s operational activities and delivering them in much efficient and effective way. The city being operated using the technologies such as high speed network, sensors, IoT, Artificial intelligence, easy and efficient management of the daily operational activities.

These technologies will allow the local community to be more automated, better and smart decision-making using artificial intelligence, innovative and advanced transport and traffic concept and linkage between the social and technological innovations. The goal of the smart city should focus on proposing smart energy production and consumption, smart mobility including cars and heavy load vehicles, smooth connectivity of the population with the technology.

This report will be emphasizing on the development of the smart cities in India and how it could be achieved in an efficient and effective way. This report emphasizes on the smart cities around the world and how they are operating the daily operational activities in an efficient and effective way. The history of the smart city is also explained in this paper in manner to discuss the evolution of the idea behind smart cities. Followed by this, the need of the smart cities and the technologies required to build the smart city has been also discussed in this paper.

There are many countries around the world who has been transforming the cities into smart cities including Amsterdam, Barcelona, Columbus, Dublin, Madrid, Manchester, New York City, South Korea and many more. The smart parking systems, smart energy consumption systems, smart technologies and appliances allowing the individuals to accomplish the daily operations in automated way. Amsterdam has already established the smart car parking system, smart energy meters, smart street lighting system, and many more along with the on-going more than 170 projects. Similarly the other countries have also adopted the similar concepts for adopting smart cities as the transformation on the existing cities behaviours. The major contributing technologies for the present scenarios include IoT and sensors and these are contributing in the efficient and effective management of these daily operational activities. I want like what kind of role a smart city can play in any countries economy and how many countries are determined to build smart cities in their country. Most of the companies are at the verge of proposing the projects those could change the face of the cities through allowing the processing of real-time collected data and information in manner to allow technology to execute the real time collected data and information.

History

The cities are being developed and enhanced in manner to adopt the automation and the fulfilment of the basic needs and requirements of the present communities. Many researchers are still struggling in proposing an artificial intelligence robots to take over the world for the accomplishment of necessary operational activities. Artificial intelligence and machine intelligence will be the next approach for the smart cities that would probably took over these technologies and deliver the necessary daily operational activities.

The well-known proverb “necessity is the mother of all inventions” is true in all the aspects. Being smart is always the necessity of the economy and hence, automating the cities was the target the needed to be implemented in efficient and effective manner.  The very first theoretical and conceptual model of the smart city can be seen in 1997 literature written by Greaham and Aurigiri in which they have claimed that the cities will be automated through advanced and automated technology in 20^th century. In 1994, Amsterdam was the first city where smart city concept was implemented. However, the very first digital smart city implementation can be recorded in Amsterdam in 1994. The effort of an activist was an effective project who aims at enabling the dialogue between the politicians and the community. The automation was adopted by the citizens and it became the success story of the 20^th century era. Application of the World Wide Web (WWW) came in practice that allowed the community to be connected with the cities and exchange the information related to the sharing of forms and information of the political government, transportation, employment opportunities and many more.

Since then the technologies have been continuously evolving and as a result new and innovative technologies were developed that can allow driverless cars, smart transportation system, drone facilities, and many uncountable benefits.  The conceptual model of smart city consist of the information exchange using the Information and communication technology, planning and governance of the technologies being deployed all over the city, smart services, and many other smart applications as demonstrated in the following figure:

Figure 1: smart city conceptual design

(Source: Anthopoulos, 2017)

Figure 2: Timeline of the smart city evolution

(Source: Anthopoulos, 2017)

The above timeline demonstrates the attempts being driven since from 1994 and still is in progress for most of the countries. The same concept of automation is being utilized that emphasizes on the information exchange between the devices and action taking based on the algorithms. However, the present world has evolved much more as the IoT, Sensors, and high speed Wireless connectivity has contributed in the development of much efficient and effective technologies those could change the face of the world. The proposal for the smart city for India has been proposed now and most of the cities are going to be transformed through this attempt.

Why we need smart cities

The present data proposed by the UNESCO states that the rural areas are either being transformed into urban or the population of the rural areas are shifting to urban areas. The quantitative data shows by 2050, about 70% of the world population will migrate to the urban and cities and most of the cities will have the population of about 10 million individuals. On the other hand considering the population of India and China, more than 200 cities will have approximately 10 million inhabitants. The present figure also states that the 75% of the energies are being consumed by the urban population and so the increase in the population in future will be the concerning factor for the government in manner to manage the needs and requirements of such increased population. Smart city does not focus only on automation however, it also focuses on the development and establishment of the systems those can be energy saving, cost effective and sustainable in nature. Smart city plan also include limiting the energy consumption or using the renewable sources of energy for the delivery of the necessary operational activities.

The smart city proposal for India will be helpful in restricting the water consumption by 15%, 25% saving on the transport requirements and dependencies, 17% reduction in the co2 those are being released in the environment, 10% decrement in the energy consumption. These planning and expectations are enough for deploying the smart cities. Following is the list of benefits those could be adhered through the implementation of the smart city:

The public services are being managed by the persons and the establishment of the smart city will allow the reducing of the public sending those are spending on the management and provision of the public services.

It will increase the quality and efficiency of the services through managing and utilizing the services in far better and effective way. The present scenario results into many wastes those could have been used for the better application if it was utilized efficiently.

Enhances the course of the decision-making and thus proposing the best course of decision-making that can be utilized for the better results and outputs. It will facilitate the needs and requirements of the future world and thus propose the smart application and services in manner to meet them in future.

Promoting the innovation is another beneficial source of value for the smart city as many personals can come up with their innovative approaches and innovations those could be utilized for enhancing the comforts and effortless delivery of the daily operational activities. This could possibly lead to the development of new business strategies those could meet the needs and requirements of the users in manner to support the decision-making and better decisions.

Real time data collection and processing those could be utilized for considering the best course of the action for the entire population. For making the system fast, it is very necessary to process the real time data collected for further processing and meeting the objectives of the smart cities.

Some of the following sectors those will be benefitted through the development of the smart city:

1. a) Better and efficient city development and planning
2. b) E-government services delivered to citizens, faster, and at a lower operating expense
3. c) Development of the local economy
4. d) Improved services and productivity

1. a) Waste to the fuel and energy will be managed efficiently
2. b) Waste water can be utilized in efficient and wastes can be reduced
3. c) Reduction and recycling of waste those could be re-utilized for the beneficial purpose

1. a) Green buildings
2. b) Smart meters
3. c) Renewable sources of energy

Technology is a crucial part in every aspect of business. Introduction of smart cities require numerous technologies to be utilized such as implementing smart censors in street lights and other public places, installing Wi-Fi at public places for people to use and many more. Usually smart city development consists of three elements. First being the reuse of existing systems like broadband networks of mobile, second being re-imagination of present infrastructure in order to derive extra value. Third is transforming various single-purpose devices into ones that can be used for multipurpose. This helps in maximizing efficiency. Some technologies that are utilized for converting a city into smart city are as follows

The continuous increases in development have resulted in more traffic, more social inequality and pollution. This has resulted in making an approach to introduce new technologies and the usage of ICT and innovative methodologies for the purpose of urban planning. This tends to assure sustainability and future feasibility in the areas that are urban. A robust network for communication and a connectivity of reliable IT is very important for implementing smart cities. Development of smart city depends on the way urban planning is carried out; it also depends on numerous local conditions. ICT plays a very important role in the urbanization and how to convert a city into intelligent and smart. Some important factors that are essential to consider are development of the broadband networks, using smart agents and smart devices, development of urban spaces, developing various web based e-services and applications and opening up of government data. All the mentioned factors would help the approach of implementing smart city to be successful.

Implementation of smart cities requires IoT as its important part. IoT helps in enhancing their services, reducing their costs and bring about improvement in interaction as well as communication among people. IoT helps in various aspects. It helps in creating a more efficient supply of water; IoT has the ability of transform the approach of citizens to use water. Smart meters are very helpful for this purpose, they can perform leak detection as well as data integrity; prevent the loss of revenue because of inefficiency. It would also help in boosting productivity by decreasing the time invested in entering as well as analyzing data. some more ways in which IOT can help in the introduction of smart city are innovative solution for the congestion faced in traffic, reliability in public transport, building that are energy efficient, improving public safety and many more.

Sensors are considered as the building blocks of smart cities. This is because they extract data about the important statistics. This also ensures that the city carries out smooth functioning. The demand of censors has been increases because the cities have become smarter. This has resulted in lowering prices and some more significant changes to the market. Sensors help in monitoring the pollution levels and many more matrices that are environment related.

Artificial plays as a vital role in implementing smart cities. One of its major uses is drive time. AI provides adaptive signal control. Driving in the traffic of city is a matter of time, the amount of time people spend in traffic is much more than the time actually needed to reach to the destination. Smart cars by the usage of AI help in reducing the traffic faced by people on roads. Good traffic flow helps in driving agreeable but it includes tangible impact in an economical way.

Block chain can help in implementing the smart cities. Some ways by which block chain can help the cities are a registry of the local business. A registration system of local business on block chain can improve the life cycle of an organization from the vey starting to the end. It provides a 360 degree view of various parties involved in the business. A virtual storefront for the business. Block chain can help the smart cities in creating integrated results for a local commerce. Virtual storefronts for various retailers, restaurants, service providers as well as lodging options, they can use block chain as a secured and distributed method. It helps in transaction among the peers. Block chain helps in trade logistics as well as financial management, reliable registry for various service jobs, money transfers and payments, smart contracts, notary services, proof-of-provenance and supply chain communications.

Machines are responsible for doing various jobs that humans are not able to do. It helps people in doing complex jobs and makes their life easy. The machine to machine connection is very important for implementing smart city plan. This helps in sharing data among the different machines. It provides data mash up platforms, downstream data flow, upstream data flow and many more. Machine to machine connection provides wired solution, they are dedicated cabling between the sensors, wireless capillary solution and wireless solutions for cellular networks.

Connection between the machines to people is very important. The people handling the machines should know the ways to do so. They should be provided sufficient training regarding the matter. The data handling and securing data in the machines should be known by people using them.

Data management in order to maintain the connection between people is very important in implementing smart city. Various organizations need to stay in continuous contact with people. This is done by the characteristic of data management which helps them to stay in contact with common public.

India has taken a new and innovative initiative of Smart City Mission in order to boost economic growth as well as helping people live a good quality of life. The future strategy that would be followed by India for implementing Smart city are Pan-city initiative, in this initiative at least one of the Smart Solution is implemented city-wide. India has planned to develop the areas one by one and step by step. They would implement the three models for area based development. It would carry out retrofitting, redevelopment and Greenfield. Some core elements of infrastructure are adequate supply of water and electricity. Sanitation, this includes management of solid waste and many more features.

India has planned to make a total of 100 smart cities. These cities have been divided among the UTs and states based on their equitable criteria. This planning gives them equal weight age to the urban population of state as well as the statutory towns in state. Based on this strategy every state will have a definite number of smart cities. This distribution is applied for the distribution of funds as well. India has planned to build smart cities in some of the busy places like Delhi, Kolkata, Pune, Hyderabad, Chennai and many more. It has planned to carry out the process by implementing the steps one by one. They would continuously keep a record regarding the changes in the cities people living there, their lifestyles. Changes would be carried out accordingly.

The expected outcome after implementation of smart city approaches to cities is that the lifestyle of people in the smart cities would be improved. They would enjoy efficient transport and communication. People would have to spend less time in traffic, there would be less number of accidents, and people would be benefited by many more services provided by the smart city plan. Any mishap would be recorded by the cameras present in the public areas and many more. People would not lag behind from the usage of certain services like Wi-Fi. Urban areas have been expected to house a definite percent of India’s population and they are expected to contribute about 75 percent of GDP by the year 2030. The vision of creating 100 smart cities, most of the people expect the increase in share by 10-12 percent by 2022. As a result, the developers will get the opportunity of offering new projects in the new smart cities. This would boost the social, economic and regional infrastructure. One smart city in India is Bhubaneswar.

With the increase in global modernization and the rise of IOT and artificial intelligence gave rise to the global market of the smart city. In 2015 the market evaluation of the smart city was USD 563.36 billion and from then the market is growing at a speedy rate. There were several factors that were responsible for the market growth. The factors that influences the smart city market is dependent on the market of several other market such as smart car, smart energy consumption and markets of IOT and artificial intelligence is also an important factor for the smart city market.

The application of smart energy in 2016 increased significantly as compare to energy consumption in 2015 and it was accounted at 18% value share. It helped to deploy smart city and smart grid in larger number. In addition to that, some favourable government policies around the world saw a significant rise in the global smart city market with current evaluation of around USD 600 billion in 2018. The market for smart security and smart building has also rise significantly over the years. The current market growth is higher than 23% with respect to 2017 and 20 % over 2016. All this factors have proved to be effective for the current market growth of Smart city.  

As per the current market and global market evaluation the top position is claimed by the North America with US in the leading position. The market is going to be expanded with the CGR being evaluated at the 14.5%. Due to the increase in CGR, it is expected that the smart city market in North America will be evaluated at US$ 750 Bn.

The next top position is claimed by the Asia specific region with the top player being china. The CGR being 22.6%, the market is expected to grow even faster than the U.S. market. The market evaluation is likely to be US$ 133 Bn.

The next position is likely to be obtain by the western European market with the market leader being the U.K., this trend will be followed by the Germany and France. The CGAR is being expected to be 21%.

Japan is expected to feature in the list as well with a CGAR of over 20%. Other countries in this list with 18% CGAR are Brazil and Mexico with Mexico being the market leader with the major market share.

With the rise in global market in the smart city segment, India is not far too behind in the development. The Indian government has already made an investment of $7.3 billion for smart city mission. The projects aims to bring smart solutions for improvement of the infrastructure and the quality of service offered. The projects is currently employed in the major cities which will be further implemented in the rural areas as well. However the project is currently in the development phase and will take several years before the project is successfully implemented as per the plan. The projects contains the following agendas in the initial plan:

• Smart buildings
• Smart infrastructure
• Smart security
• Smart healthcare
• Smart and connected home
• Smart buildings
• Smart transport

Overall the quality of the life and service will be enhanced with this smart city project once it is completed. In order to bring more speed in the project, several policies have been launched by the government to promote the development. The projects are to be compete with the global projects in order to enter into the global market of the smart city that is growing rapidly. However the projects development is likely to be affected as the market growth is likely to be shifted due to international as well as national policies and this might challenge the development of the projects.

Since, the smart city will be an innovative approach towards the development that can change the way of living for many targeted stakeholders. Smart cities and entrepreneurship has been the stressing topic for the researchers in manner to identify and analyse the factors those could allow the entrepreneurs to propose their innovative ideas and cover the targeted consumers in far better and efficient way. The ecosystem of the smart city will be challenging and dynamic and thus, the entrepreneurs will have to emphasize much on identifying the opportunities within these sectors in manner to implement innovation and develop a great business strategy. ICT has been already widely implemented in a network around the world and so, the innovation can be a bit harder for the entrepreneurs however, speed has been always the challenging factor and whatever, be the speed high speed will automatically cover the market and replace slower speed network. For example, the 2G was replaced by 3G, 3G was replaced by 4G, 4G is being replaced by 5G, previous internet connections are being transformed into fibre optics, those will be replaced by the Li-FI technology in future, and many more. These are the sectors in which an entrepreneur can look opportunities and develop the innovation that can change the face of the world and a great benefit for the business opportunities. These could be the widest scope for the entrepreneurs where they can explore the technologies and make a good opportunity for the development of the business and better market strategies.

IoT is one of the trending technology that has introduced many automated and advanced devices those could allow the enhancement in the betterment of the individuals who are living in the present scenario. Present application of IoT can be seen in the field of entertainment and security as many devices are allowing the researchers and the IT specialists to take care of such application. Present leading companies those are developing the IoT includes Amazon, Apple, and many others who are becoming the leading selling companies in this field. The entrepreneurs can use this platform for exploring the opportunities through developing a product that can meet the present and future scenarios. Integrating IoT with any other advanced technology can be a boon for the new smart cities that will be allowing the individuals to avail the best and innovative services.

Sensors have applications more than expectations however, going beyond the practiced idea is the innovation and thus, it needs to be adhered for building a strong platform in this opportunity. Many researchers have claimed that this technology will be the most applicable technology in future as it will allow building new technologies those could advance the functioning and operations of the new devices. It has application from cars, cars’ garage, parking system, automatic street light system, and many more and it is also being expected that the wide application will cover the every sector of the world in manner to automate and allow systems to be real time data processing.

Artificial intelligence is not being utilized in the robots and industry automation rather it has many applications in the automated car, business operations, decision-making, business data collection and many more. The present research delivered by amazon, Microsoft, Intel, and many others are trying to incorporate the artificial intelligence within the existing operational activities and the technologies in manner to assure the efficiencies and the effectiveness of the innovation being deployed in the real world. The entrepreneurs can utilize this technology for the proper and precise functioning of the business operations in manner to manage the operational activities in an efficient and effective manner.

Data management is the most crucial function for an organization or enterprise for the deployment of an efficient and effective output that can meet the needs and requirements of the present world without altering the products and services being delivered to them.

The following case studies are being selected for highlighting the aspects related to the development and deployment of the smart cities in real world application. The following case studies will demonstrate the current trends and ongoing implementation of the practices within the smart cities and developing the strategies those could allow the government in developing the betterment and effective strategies.

The South Korea made a great achievement in building and transforming Songdo into a smart city and that can be stated as the more than the expectations that can be imagined by an individual. The total cost for building the entire city was $40 billion that comprised of the Incheon free economic zone. The Songdo city is certified to 106 LEED that covers 22 million square feet under twenty-two projects. The city has been created and designed to be Ubiquitous city that can be defined as the establishment of the computers within the buidings and streets.

This city in Abu Dhabi has already developed and engaged in many projects that emphasizes on the adoption of renewable source of energy as the integral part of the lives, smart buildings build with sensors and computer, smart grids, water consumption management in advanced and automated manner, environmental engineering, energy planning and policies and electronics those are allowing local community to avail the best services within the city. The established city allows the 51% less energy consumption and hence, saving lots of energy and releasing least waste. Other than this benefit, the established city uses 54% less portable water as compared to that of the traditional buildings. The incubator buildings are the biggest achievement that allowing the city to be clean and pollution free.

The scenario of Rio De Janeiro can be compared to the populated cities in India and example can be taken on however, such vast population can be managed through advanced locality management bodies and inviting them to play major roles in the development of the smart cities. Rio De Janeiro is one of the most populated city of Brazil that was successfully able to manage the population through the application of IT stronghold and how these could be managed inn an efficient and effective manner.

This was the first city in which the concept of the smart city was deployed for the first time in manner to manage and deploy the necessary smart implementation for the management of the operational activities. It includes in total more than 170 projects those have been collaboratively developed by the local residents, businesses, and governments in manner to manage the automation in an effective and efficient way through interconnecting the entire city and its daily operations using wireless technology. Many applications have been developed that are contributing in the development of smart city through deploying the smart applications for the management of the daily operational activities. Similar app like mobypark and others collect the real time data and process them for enhancing the ways of decision-making in manner to make it precise and accurate and deliver the necessary outputs. This initiative also include smart traffic monitoring, energy saving street light systems, information broadcasts and receiving with high speed.

This is one of the Spain’s pioneering city that has successfully adopted smarter or intelligent Madrid platform in manner to integrate the services for the management of the operational activities in manner to meet the needs and demands of the local community. The smart city development also includes the management of the infrastructure using the computerized and sustainable technologies those could be utilized for recycling of the garbage collected. NSA, IBM, and other IT companies are contributing in the development of the technologies those can boost this implementation through the application of the Big data analytics experience and capabilities. “Madrid is considered to have taken a bottom-up approach to smart cities, whereby social issues are first identified and individual technologies or networks are then identified to address these issues.” It also supports the entrepreneurs and the start-ups those could contribute in the development of the Madrid smart city approaches.

Conclusion

India is one of the developing countries with large population. The growth in technology allowed many cities of India to avail the best services. Considering the perspective of the business, it can be stated that it can be a best target for implementing the smart cities in manner to manage the economic condition and make good profit due to large population. The smart cities can be helpful in meeting the demands and requirements of the users and allowing them to avail the automated and much precise services in less effort and short time. The above report explained the overview, history, and the evolution of the smart city. Chandigarh and Bangalore are some of the cities those have adopted the smart city concepts to some extent however, the target can be increased through covering large number of cities those could cover more cities and allow them for using the advanced services. The deployment of the efficient and effective smart city concept will allow the individuals to accomplish the automated, best and enhanced services in manner to meet their increased demands. The needs and benefits of the smart city has also been expressed in this report that can be related to the increased population of India and how it could be managed in an efficient and effective manner. Most of the regions in India are covered with rural areas those are not capable of availing the latest technologies and the services being utilized by the cities. On the other hand, energy is another considerable fact for India that needs to be fulfilled and it can be done through saving electricity being consumed by the urban population. Development of smart city will allow India to save almost 40% of the energy being consumed in city as expressed in the above report and hence, the saved energy can be transferred to the rural areas. This proposal will not allow in reducing the energy consumption but it will also allow the India to be more advanced and automated country.

The various technologies have been explained in the above report that can be utilized for developing the smart cities those could alternatively allow in the betterment and enhanced services for the local community. It can be recommended to incorporate the IoT and the Artificial Intelligence should be incorporated within each other in manner to allow the cities to react on the real time data collected for better decision-making and enhancement of the livings. These technologies will allow individuals to be more precise and effective for the management of the daily operational activities and assure that the India saves energy and water consumption. Indian model being proposed can be effective and efficient strategies for deploying the suggested information for establishing the smart cities that can meet the needs and requirements of the users. After analysing the market, it can be stated that there is great scope of the market in developing the smart cities through deploying the entrepreneurship in manner to implement and execute new and innovative ideas for the establishment of the new technologies for the development of the smart cities.

This report also explained how entrepreneurship can be implemented for the development of the cities that can be smarter in a way and manage the daily operational activities in an automated and much efficient way.

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