Smart Cities

Present situation worldwide and in Switzerland

Technological change and digitalisation are posing major challenges for cities. This applies in particular to the provision of resources (e.g. water, electricity, light) and infrastructure services (e.g. mobility, waste disposal), as well as to the direct interaction of citizens with their municipal authorities. All these areas can be transformed by digital technologies. Key technologies such as big data analytics or the Internet of Things (IoT) are available and can be harnessed to optimise urban traffic. Cost-effective, wireless communication technologies, e.g. long range wide area networks (LoRaWAN), the easy usability of sensors with long battery life as well as cloud-based data management and analytics software make it possible to create a citywide smart environment. Throughout the world, several municipalities and cities have availed themselves of these technologies to implement different aspects of the smart city concept. Lighting management often constitutes a first step, followed by parking guidance and information systems and traffic management. In the meantime, smart sensors are being integrated in the utility grid to enable intelligent network management. The advent of artificial intelligence allows for many new applications, while also giving rise to new risks such as “profiling” of individual buildings or citizens.

Even though relevant technologies are to a large extent available, creating a smart city remains a major challenge due to the system’s complexity and the sheer range of possible applications. Typically, pilot projects are carried out to establish a scheme’s feasibility and benefits. Yet considerable issues remain to be solved as regards data security and data protection before public acceptance can be ensured.

Implications for Switzerland

There is a strong interest in smart cities in Switzerland. St. Gallen initiated pilot projects in 2015. Basel has developed a strategy and takes a broad approach with a combination of demonstration and research projects. Other cities such as Geneva or Zurich are either developing a strategy or launching pilot projects that often tie in with international research projects. Examples include a lighting project in Winterthur, a living lab to investigate social aspects in Bellinzona, or smart parking guidance and information systems and mobility in Geneva. It is interesting to note that municipal utilities are often major drivers of smart city technologies. They view them as opportunities to lower costs and to develop service-based business models. There are also interest groups such as Smart City Hub Switzerland or CityZen, and the Swiss Federal Office of Energy (SFOE) runs a research programme on energy management in “Buildings and Cities”.

The main technological drivers for the rollout of smart city solutions are the coverage rates of IoT network technologies and communication networks such as 5G. The economic potential of smart cities is enormous and is further enhanced by their possible convergence with smart home and smart building technologies. Key obstacles include costs and (political) decision-making processes, the complexity of integrating all aspects within a functioning system, and finally the search for persuasive benefits to promote acceptance by all concerned. In this highly complex environment, a central decision for cities will be their choice of technology partner: should they favour established partners who often operate on an international scale or should they choose local partners? While local partners offer greater flexibility, they might struggle to ensure operational continuity. There are many ways for Swiss startups and SMEs to provide technological support and innovative service models. The challenge they face is to gain the city’s trust and to then establish a going and lasting concern in order to ensure the necessary continuity. The challenge faced by the city will be to create a digital identity and to push ahead with smart city initiatives for the benefit of its inhabitants. In the next five to ten years, we will likely witness strong growth in the rollout of smart city and service innovations.