Smart Cities

ISBN: 978-1-78769-614-3, eISBN: 978-1-78769-613-6

Publication date: 14 June 2019


Gassmann, O., Böhm, J. and Palmié, M. (2019), "Prelims", Smart Cities, Emerald Publishing Limited, Leeds, pp. i-xx.



Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited

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Further praise for Smart Cities:

Smart cities require suitable technologies, sustainable business models, and proper administration processes. This book conveys concrete ways of how cities can become smart cities.

– Oliver Deuschle, SMIGHT at EnBW, Germany

This book succinctly expresses why only one smart city can persist in face of location competition.

– Yvonne Beutler, Vice President of City Council, Switzerland

Digitalization opens up myriad development possibilities in cities. This book expertly delineates various “best practices” as well as core elements of a systematic and strategic approach.

– Prof. Thomas Schildhauer, Humboldt Institute for Internet and Society, Germany

Municipal utilities not only construct and operate essential digital infrastructure, but also new services for a smart city – from waste disposal “on demand” to electromobility. This book can especially assist small public utility companies in their efforts to develop and realize a strategy for their smart city.

Katherina Reiche, Verband kommunaler Unternehmen e.V., Germany

The realization of smart city projects presupposes a uniform understanding of their relevant dimensions. This book and its smart city management model offer the ideal foundation for this crucial unification.

– Orlando Gehrig, Swisspower Innovation, Switzerland

Title Page


Introducing Digital Innovation to Cities





University of St. Gallen, Switzerland

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2019

Copyright © 2019 Emerald Publishing Limited

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-78769-614-3 (Print)

ISBN: 978-1-78769-613-6 (Online)

ISBN: 978-1-78769-615-0 (Epub)

List of Figures

Chapter 1
Figure 1.1. The Worldwide Urban and Rural Population from 1950 to 2050. 5
Figure 1.2 Typical Development of Urbanization in a Western and a Non-Western Nation. 8
Figure 1.3. The Most Urgent Challenges for Cities with Respect to Smart City Topics. 10
Figure 1.4. Challenges Addressed by Smart City Projects. 11
Figure 1.5. Urbanization Worldwide. 12
Figure 1.6. Regions of Population Decline. 14
Figure 1.7. Citizens Fear the City’s Impact on Their Health. 17
Figure 1.8. Smog Values in London. 18
Figure 1.9. Percentage of Individuals Exposed to Exceedingly Loud Night Noise, According to the Threshold Values Set by the World Health Organization. 19
Figure 1.10. Worldwide Tourism Growth, 1996–2017. 20
Figure 1.11. The Frequently Double-digit Growth Rate of Tourism Places Stress on Infrastructure. 21
Figure 1.12. Over-tourism in European Cities. 21
Chapter 2
Figure 2.1. The Digital Shadow of a City. 30
Figure 2.2. The Warka Water Tower 33
Figure 2.3. Development of the Tasks of Buildings in the Future Energy System of Switzerland; the Tasks Are in Parentheses. 35
Figure 2.4. The Holistic Concept of a Decentralized Energy System of the Urban Area of Suurstoffi, Zug Estates AG, 2018. 36
Figure 2.5. Overview of the Solution Space of Decentralized Energy Systems, Based on the Core Development Drivers: Technological Innovation, Business Model Innovation, Integration, and Digitalization. 37
Figure 2.6. Energy Hub in NEST at the Swiss Federal Laboratories for Materials Science and Technology. 38
Figure 2.7. Smart Crosswalk. 42
Figure 2.8. Challenges of Smart City Transformations, According to a Study Conducted by BI Intelligence. 52
Figure 2.9. The Main Smart City Challenges Faced by Mayors of US Cities. 53
Figure 2.10. The Smart City Management Model. 62
Chapter 3
Figure 3.1. Objectives of the Smart City Framework Strategy at a Glance. 70
Figure 3.2. Smarter Together Project Area in Simmering, Vienna. 82
Figure 3.3. The SIMmobil Mobile Information Stand. 83
Figure 3.4. Seestadt Aspern. 86
Figure 3.5. Logo of Perspektive München, Munich’s Strategic Urban Development Concept. 91
Figure 3.6. Interaction of the Eight Central Objectives of City Planning in Munich. 93
Figure 3.7. Overview of the Smart City Projects of Munich. 94
Figure 3.8. Organizational Structure of Munich’s Smart City Initiatives. 94
Figure 3.9. Munich’s Smarter Together Project in the Freiham and Neuaubing Districts. 107
Figure 3.10. Smarter Together Project Area in Lyon. 115
Figure 3.11. The Navly Electric and Autonomous Shuttle Service. 119
Figure 3.12. Master Plan of Songdo City. 127
Figure 3.13. Five-step Action Plan as Proposed by the SCWG. 135
Figure 3.14. Quayside and Toronto’s Eastern Waterfront. 139
Figure 3.15. Sidewalk Toronto’s Sustainability Vision. 141
Figure 3.16. Flexible and Mixed Uses. 142
Chapter 4
Figure 4.1. Communication by the Public Communications Department of St Gallen Regarding Smart City Projects in St Gallen (2017). 157
Figure 4.2. Visual Representation of the Remishueb Project. 160
Figure 4.3. First Step of the Transformation to a Smart City According to the Smart City Management Model: Initiate Transformation. 163
Figure 4.4. Public Value Scorecard for Project Selection. 171
Figure 4.5. Sample RACI Matrix. 175
Figure 4.6. Responsibility Matrix for the St Gallen Smart City Initiative. 176
Figure 4.7. Organizational Model for the St Gallen Smart City. 176
Figure 4.8. Step 2 of the Smart City Transformation According to the Smart City Management Model: Determine Location. 179
Figure 4.9. Smart City Maturity Model. 181
Figure 4.10. Stakeholders in the Development of a Smart City. 184
Figure 4.11. Point-of-view Analysis for St Gallen. 186
Figure 4.12. A Map of the Stakeholder Network in St Gallen. 188
Figure 4.13. Visualization of a Benchmarking Exercise. 191
Figure 4.14. Definition of the Desired State. 196
Figure 4.15. Step 3 of the Smart City Transformation According to the Smart City Management Model: Develop Concepts and Synchronize Partners. 197
Figure 4.16. New Services Made Possible by the New 5G Standard. 212
Figure 4.17. The Magic Triangle of a Business Model. 217
Figure 4.18. Sample of a Smart City Probability-of-impact Matrix. 227
Figure 4.19. A Portion of St Gallen’s Impact Tree. 229
Figure 4.20. Step 4 of the Smart City Transformation According to the Smart City Management Model: Mobilizing Resources. 239
Figure 4.21. Conflicting Objectives in the Project Organization. 246
Figure 4.22. Examples of Goals that Typically Call for Private Versus Public Financing. 249
Figure 4.23. Financial Cycles in a Smart City Transformation. 251
Figure 4.24. The “Valley of Death” in Smart City Transformation Projects. 252
Figure 4.25. Step 5 of the Smart City Transformation According to the Smart City Management Model: Realizing Projects. 256
Figure 4.26. Step 6 of the Smart City Transformation According to the Smart City Management Model: Operation and Institutionalization. 260
Figure 4.27. Existing Smart Cities and How They Use Synergies. 268
Chapter 6
Figure 6.1. Stakeholder Map. 292
Figure 6.2. Worksheet for the Conception of a Smart City Initiative. 293
Figure 6.3. Example of a Completed Worksheet. 294
Figure 6.4. Risk Probability and Impact Matrix. 295
Figure 6.5. Effect Tree. 300
Figure 6.6. Scaling Questionnaire, Part 1. 301
Figure 6.7. Scaling Questionnaire, Part 2. 302
Figure 6.8. Scaling Questionnaire, Part 3. 303

List of Tables

Chapter 1
Table 1.1. TomTom Traffic Index for Smaller and Mega Cities (2018). 15
Chapter 2
Table 2.1. Comparing Traditional City Management and Paramecium Politics. 45
Chapter 3
Table 3.1. Qualitative Smart City Objectives in Munich. 100
Chapter 4
Table 4.1. Checklist for the Project Team. 165
Table 4.2. Checklist for a Visioning Workshop. 167
Table 4.3. Examples of “Smartness” in European Cities’ Smart City Visions. 170
Table 4.4. St Gallen’s Initial Self-assessment. 182
Table 4.5. Examples of Smart City Implementation Initiatives in Each Service Area. 192
Table 4.6. Ideas for Smart City Development in St Gallen. 193
Table 4.7. Typical Life Cycles of Smart City Infrastructure. 204
Table 4.8. Possible Sources of Financing for Smart City Projects. 205
Table 4.9. Overview of Risk Categories in Smart City Transformation Projects. 225
Table 4.10. Checklist for an Initial Risk Assessment. 227
Table 4.11. Examples of Project Objectives and Possible Performance-based Indicators. 230
Table 4.12. Example of a Benefit Value Analysis Using a Likert Scale and Weighting. 233
Table 4.13. Synchronization Mechanisms for Smart City Initiatives. 237
Table 4.14. Comparison between Technology-oriented and Citizen-oriented Smart City Planning. 241
Table 4.15. A Comparison between Traditional and Smart City Procurement Management. 255
Table 4.16. Reasons for the Failure of Smart City Projects. 257
Table 4.17. Differences between Innovation Mode and Replication Mode. 261
Table 4.18. Key Decisions in the Scaling Up Process. 262
Chapter 6
Table 6.1. Questionnaire to Assess Your City Using the Smart City Maturity Model. 284
Table 6.2. Risk Assessment Checklist. 296
Table 6.3. Possible Synergy Patterns for different Types of Cities, Based on Centralization of Asset Management and Access to Funding. 304


The concept of the “smart city” promises to solve many of the urgent issues that accompany progressive urbanization – overwhelming traffic congestion, strains on energy and water systems, delinquency, inadequate housing, and the lack of social inclusion – through digitalization. Smart cities are therefore highly relevant for political decision makers in municipalities, administrative agencies, and nonprofit and civic organizations. Moreover, smart or “ecosystem” cities offer great potential for countless corporations in the fields of information technology, real estate, telecommunications, energy supply, auto-mobility, sensor systems, and data analytics. Accordingly, it is not surprising that numerous highly innovative companies, including IBM, Cisco, Telekom, Siemens, Toshiba, and Google, along with public utilities around the world, are actively investing in smart city development. Additionally, many startups are concurrently entering the Internet of Things (IoT) and energy fields, placing competitive pressure on established firms.

The social and political demands of the energy revolution, combined with the auspicious possibilities of an interconnected yet decentralized world within the framework of IoT, are accelerating the transformation of urban centers toward becoming smart cities. Despite the exploitation of existing potentials by “lighthouse” (i.e., pilot) cities, such as Barcelona, Munich, Lyon, and Vienna, most municipalities have pursued smart city opportunities only to a limited extent thus far. As a result, the discrepancies between leading smart cities and less ambitious cities are widening. The need for action is frequently discerned, yet the most appropriate path of action often remains unclear.

Various important questions about smart city development are still unanswered. What are the core elements of smart cities? What steps should be followed in building them? Where does the greatest potential lie? What is the ideal starting point? What procedures have other cities applied? What can be learned from pioneers in the field? Are the successes of the greenfield approaches applied by Asian smart cities transferable to other parts of the world? What methods and tools can be usefully implemented? What business models have participating firms used? How can diverse stakeholders be effectively integrated?

This book answers these questions in the form of solution paths, accompanied by design concepts and success factors. It covers the following main topics:

  • the future of cities;

  • an overview of smart cities;

  • smart city management model;

  • smart city lighthouses;

  • guidelines for smart city transformation; and

  • tools for making your city a smart city.

Cities today face tremendous challenges concerning livability, mobility, energy, and communication. These challenges are forcing them to reconsider their former self-conception, their functionality, and their service offerings. However, cities that focus actively on their objectives and on the requisite digital transformation can imagine and realize entirely new living spaces. To help them achieve this goal, they should learn from the experiences of pioneers in the field, which we call lighthouse cities. Urban centers can orient their strategies around the solutions and experiences of these role model cities, so as to design and execute their own situation-specific, customized transformation. These smart city management models serve as reference frames that provide basic fundamentals, offer recommendations for action, and contribute to the synchronization of the transformation process. The models are especially valuable as orientation tools introducing all stakeholders in a city or region to the smart city concept.

This book is based on ongoing research undertaken by the Institute of Technology Management (ITEM) and the Center for Energy Innovation, Governance, and Investment at the University of St. Gallen. Worthy of particular mention are the European Union project “Smarter Together,” the national energy research program comprising eight Swiss Competence Centers for Energy Research (SCCERs), and numerous projects of the ITEM with partners from the spheres of politics, administration, and the economy.

The target audience for this book includes all stakeholders involved in a smart city transformation:

  • Mayors, council members, administrators, and managers who must understand the impact of a smart city transformation and wish to be informed about promising paths of action.

  • Decision makers in corporate settings (e.g., executives, innovation and R&D leaders, project directors, product managers, and startup entrepreneurs) who are involved in the realization of smart cities.

  • Citizens who want to have a better understanding of future conceptions of their living environment.

A book is always a collaborative learning process. 1 We thank our partners in Smarter Together, which we were able to assist in the development of business models for the lighthouse projects and that in return gave us great insights in the process of developing a smart city. The concrete implementation example in the city of St. Gallen was developed in close collaboration with the municipal utility of St. Gallen (sgsw). We are particularly grateful to Marco Huwiler and Céline Hähni as well as the mayor of St. Gallen, Thomas Scheitlin who gave great insights and wrote the case study on St. Gallen. Very special thanks further go to Karin Klöti, Adrian Joas, and Laura Caviezel for their detailed research on the case studies, Simon Kuster for the elaboration of smart city business models, and Matthias Sulzer, Andrea Perl, and Kilian Schmück for their assistance with the sections on smart energy, smart mobility, and smart government. Lastly, we especially thank Pete Baker, Katy Mathers, and the entire Emerald team for making this book possible.

The urban challenges of the future require more intelligent concepts at all levels. The tools, processes, checklists, tips, and general experiences that have arisen from our research and practice-related work and are presented in this book can facilitate the development of such key concepts by decision makers. They provide a solid foundation for a diverse range of smart city transformation projects.

We hope that these concepts will spread, and we wish all individuals responsible for the realization of smart city elements much success in the development of sustainable environmental, social, and economic solutions.



For a full and detailed description of all the contributions, see the acknowledgements.