lighthouses cities market introduction deliverable 6.2
TRANSCRIPT
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LighthousesCitiesMarketIntroductionDeliverable6.2.
Preparedby:AlbertTapia,CarlosCarrasco,MiquelRodríguezPlanas&JoanEnricRicart,GrowSmarterWP6Team.
Contributors:GonzaloCabezasRuecas,CityofBarcelona;JuliaEgenolf,CityofCologne;MikaHakosalo,CityofStockholm.
Date:15December2017
Version:8
Email:[email protected]
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Contents
Summary..........................................................................................................................3
1. Introduction.............................................................................................................4
2. Methodology............................................................................................................6
3. BusinessModels.......................................................................................................8
WorkPackage2.LowEnergyDistricts.......................................................................11
Solution1:Lowenergydistricts.............................................................................13
Stockholm.Energyefficientrefurbishmentprojectinresidentialbuildings.............45
Solution2:Smartbuildinglogistics........................................................................57
Solution3:Smartenergy-savingtenants...............................................................63
Solution4:Smartlocalelectricitymanagement....................................................87
WorkPackage3.Integratedinfrastructures............................................................104
Solution5.SmartStreetLightning........................................................................106
Solution6.WasteHeatRecovery.........................................................................122
Solution7.SmartWasteCollection......................................................................130
Solution8.BigDataManagement........................................................................134
WorkPackage4.SustainableMobilitySolutions.....................................................148
Solution9.Sustainabledelivery...........................................................................149
Solution10.Smarttrafficmanagement...............................................................159
Solution11.Alternativefueldrivenvehiclesfordecarbonizingandbetterairquality..............................................................................................................................172
Solution12.Smartmobilitysolutions..................................................................191
4. AboutGrowSmarter.............................................................................................206
5. GrowSmarterprojectpartners.............................................................................206
Annex1.BusinessModelsandScalability....................................................................207
Whatisabusinessmodel?.......................................................................................207
DataandInformationforBusinessModelEvaluation.............................................208
EvaluationandAssessmentofBusinessModels......................................................209
Public-PrivatePartnerships......................................................................................211
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Summary
This document describes the business models (BM henceforth) related to all themeasures implemented in the lighthouse cities participating in the projectGrowSmarter.Intotal,53BMhavebeendescribed,distributedalong3workpackagesand12solutions.GrowSmarterleitmotiv,“Transformingcitiesforasmart,sustainableEurope”,obligesus to observe the BM from different points of view. The first one, is its ownsustainability,ifitisfeasiblefromafinancialpointofview.Althoughthefinancialdatahasnotbeenanalyzedyet(itwillbeinDeliverable6.3),wecanalreadyobservesomeconclusionsonthatpoint:especiallyonmeasuresfromWP2thefinancialsustainabilitywillbedeterminedby the financialdata,but for the restofmeasures,what ismoreimportantthantheeconomicdatais,inthecaseofmeasuresfromWP3,whatwillbetheBMfromthePublicSectorthatarehiringorusingthemeasures,and,forWP4,thecapacitytoevolvetheBMconsideringthepermanentchangesinthemobilityindustry.Otheraspectsobservedaretheirvaluecreation,theircapacitytocreateorimprovenewjobs,therelationwithdatamanagement,wheredocitizensstandregardingtheseBM,andfinally,theroleofCities’authoritiesregardingthem.
Ongeneralterms,wecanconsiderthattheBMshowninthefollowingpagesarewellfocusedoncreatinganaddedvaluerelatedtotheimprovementofacommunitymoreenvironmentallysustainable, thankstoenergy improvements,andthankstoabetterimprovement of public policies due to the knowledge obtained through a correctmanagementofdata.Themeasures implementedhave a positive impact into the jobmarket, as they areallowingthecapacityofworkerstoimprovetheirskills,reinforcingthemamongotherworkers.Thanks to Data Management, the potential success of BM is related to Citizens’decisions, and Local Public Sector appears as a prescriber and “incentivator” of theimplementationofthemeasuresratherthantobetheactortodevelopthemwiththeirownresources.
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1. IntroductionThisreportaimstoprovidespecificknowledgeaboutthebusinessmodelsrelatedtothemeasures being implemented in the GrowSmarter project, together with thepresentationofthesocio-economicandpoliticalcontextoftheLighthouseCities.Inaddition,itaimstoprovideinformationnotjustfortechnicalstakeholdersbutalsotothegeneralpublicandtheEuropeancitizenshipabouttheGrowSmarterprojectscopeandthepotentialscalabilityofsolutions.Byreadingthisreportonecanunderstandthemeasuresunderimplementation,theirbusinessmodels and their potential scalability from the business point of view. TheconclusionspresentedcanbebeneficialforrealimplementationofSmartCitysolutionsbehindthetypicalpilotprojects.TheSmartSolutionsbeingimplementedduringtheGrowSmarterprojectaredistributedamongthreethematicareas:
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However,northeSmartSolutionsorthemeasuresarebeingimplementedinisolationnorinclosedareas.Infact,theSmartSolutionsareintegratedsolutionswithmanycross-connectionstoeachotherasseeninthenextfigure:
Theoverallgoalsof theSmartSolutionsareto improvethequalityof lifeandat thesame time reduce negative environmental impacts. This will be measured usingindicatorssuchasreducedlocalpollutions,reducedgreenhousegasemissions,energysavingsandlocalenergyresourceutilization,aswellasjobcreation.TheSmartSolutionswillalsobevaluedfortheirpotentialtobescaleduplocallyandreplicatedinothercities.Forthepurposeofthisdocument,theBusinessModelshavebeenpresentedbygroupsofmeasures included inone solutionanddifferentiatedbetween themby IndustrialPartners and the kind of Business Model implemented (see Annex 1 for moreinformation).
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2. MethodologyTodefinetheBMbehindeachmeasurewewillusetheCANVASmethodology.TheBMCANVASisastrategicprocessthatbymeansofusingatemplateallowstodocumentexisting BM. It is a visual chartwith elements describing a firm's or product's valueproposition, infrastructure, customers, and finances. It assists firms in aligning theiractivitiesbyillustratingpotentialtrade-offs.
Since the beginning of the GrowSmarter project, IESE Business School has attendedseveralTechnicalmeetingsduringtheyears2015,2016and2017,inallthreelighthousecities,tounderstandthemeasuresandthebusinessmodelbehindthem.InthesetechnicalmeetingsIESEBusinessSchoolhasworktogetherwiththeIndustrialpartnerstoexplainthemandshowthemhowtofulfilltheirCanvasDocument.Thishasespecially done during the General Assembly organized in Cork, in May-June 2017,whereIESEorganizedaWorkshoptodiscusswithallthepartnersabouthowtofilloutaBMCanvasdocument.IESEpresentedafirstdraftofCanvasdocumentsformostofthemeasures,startingfromthis firstdraft, theexplanations givenduring theWorkshopandbyemail& through
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conferencecallsinthefollowingdays,theIndustrialPartnersshouldsendtoIESEtheCanvasdocumentsfortheirmeasures.Inthenextsections,arelationofalltheBusinessModelsrelatedtothemeasureswillbe presented. All the businessmodelwill be presented under the umbrella of theirWorkingPackage (WP2LowEnergyDistricts;WP3 Integrated Infrastructures;WP4SustainableUrbanMobility) and classified by solutions. The Businessmodelswill bedifferentiatedbetweenthemdependingonwhoistheIndustrialPartnersandthekindof business model that it’s implemented (B2B, B2C or PPP. See annex 1 for moreinformation).Moreover,someoftheBusinessmodelsthatwillbepresentedinnextsectionscouldincludemorethanonemeasure,as,thebusinessmodelscannotbeunderstoodwithouttheaggregationofdifferentmeasuresdevelopedby the industrialPartners. In thosecases,attheendoftheWorkingPackagesection,acommentregardingthissubjectwillbeincluded.
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3. BusinessModelsThis document describes the business models (BM henceforth) related to all themeasures implemented in the lighthouse cities participating in the projectGrowSmarter.Intotal,53BMhavebeendescribed,distributedalong3workpackagesand 12 solutions. For more statistical details about how the BM are related to thesolutionsandlighthousecites,seethetablebelow.
GrowSmarterleitmotiv,“Transformingcitiesforasmart,sustainableEurope”,obligesustoobserveaBMfromdifferentpointsofview.Thefirstone,isitsownsustainability,ifitisfeasiblefromafinancialpointofview.Althoughthefinancialdatahasnotbeenanalyzedyet(itwillbeinDeliverable6.3),wecanalreadyobservesomeconclusionsonthatpoint.Otheraspectsobservedare,theroleofCities’authoritiesregardingtheseBM,thecapacityofBMstocreateorimprovenewjobs,theirvaluecreation,therelationwithdatamanagement,andfinally,wheredocitizensstandregardingtheseBM.CreationofValueAclearcommoncharacteristicofallBMisthekindofvaluetheycreate.Allofthem,onadirectoranindirectmanner,arecreatingamoresustainablesociety,astheyincreaseenergy savings, reduce pollution and congestion, or improve public managementthroughinsightsfrommanagingcorrectlythedatacollected,thusallowingtoimplementmoreefficientpolicies.JobimpactTrying todetermine the impactonnumberof jobs created from theseBM isnotanobviousthink,anditcanbeaffectedfromdifferentcircumstancesnotallofthemrelatedtothemeasures.Therefore,inthisreportwedon’thaveenoughinformationtomakeconclusions about the impact on new jobs creation, but this subject will be deeply
Barcelona Cologne Stockholm TOTALSolution1 4 1 5 10Solution2 1 1Solution3 2 1 3 6Solution4 2 1 1 4WP2 8 3 10 21Solution5 2 2 2 6Solution6 1 1 2Solution7 1 1Solution8 3 2 1 6WP3 6 4 5 15Solution9 1 1 2Solution10 1 3 4Solution11 3 1 2 6Solution12 1 2 2 5WP4 6 3 8 17TOTAL 20 10 23 53
BusinessModelsrelatedtoSolutions&Cities
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studiedinDeliverable6.3.RegardingtheimpactofBMonimprovingtheskillsofworker,it can be said that this is a common property along all the BM. All the measurespresentedinGrowSmarterareimplementinginnovativetechnologiesthatthelearningsonhowtodevelop,install,maintainormanagethemrepresentclearlyanimprovementoftheskillsofthemanpowerusingthem.Thiswidespreadcharacteristicgivesastrongmessage to the European labormarket: in a Globalizedworld, where the chains ofproductionofanyproductcanbesettledinanyregionoftheworld,theimplementationof smart solutions is improving European industry and workers, giving them acompetitiveadvantageinfrontofotherworldwidecompetitors.DatamanagementDataisapermanentelementtodeterminetheimprovementofanexistingBM.WithSmartSolutions,thedatacollectedissohugethatthemanagementofBigDataallowsto customize BM for almost any customer. This reality, already observed in currentmaturemarkets,isacommontrendforGrowSmarter’smeasuresthathasanimplicationoncitizens’positionregardingtheBM.Citizens’positionIfwetakealookonwheredocitizensstandregardingtheBM,theinterestingthingisthatcitizenscanbeactivecustomersthankstothemeasuresproposed,andespeciallythankstotheuseofthedatarelatedtothesemeasures.Beinganactivecustomerisanoption,butisachangeofpointofviewontherelationbetweenbuyerandseller,wherewemovetoabidirectionalrelation,wherecustomershavethepowertodecidewhatkindofconsumptiontheywantandhowdoesthisaffecttotheenvironment.ThatputscitizensinthecenteroftheBusinessModel.FinancialsustainabilityOfcourse,thisnewkindofrelationshipbetweencitizensandcompaniesimpliesnewkinds of BM, and therefore a first question has to be ask regarding them. Are theyfinancially sustainable?Although theeconomicdatahasn’t beenanalyzed, on a firstoutlook we can differentiate the financial sustainability of BM basically fromWorkPackages.In Work Package 2, related to Energy Solutions in Buildings, the BM seem quitesustainablefromafinancialpointofview.Thekeyelementswillbewhowillbecollectingthemonetarizationoftheenergysavingsandifthetimeofthecontractwillbeenoughto recover the investment costs related to the implementation of the measures.Therefore, in thisWorkingPackage, theeconomicdatawillbecrucial toconfirmthefinancialsustainabilityoftheBM.InWork Package 3, related to integrated infrastructures, the BM stand because thePublic Sector is the main customer. Therefore, different models of Public-PrivatePartnershipscanbeusedtoimplementtheBM.Ofcourse,theeconomicdatawillbecrucial,buttheinterestingthingisthepositionofthePublicSectorinthoseBM.BesidethefactthatthePublicSectoristhemainbuyeroftheservicesrelatedtothemeasures,thedatarelatedtothemcanbeconsideredasagoodofpublicinterest,andtherefore,
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thePublicSectorwillbewhodefinestheoutcomestobereach,andwilldeterminetheeconomicresultsoftheindustrialpartner.InthiscaseaninterestingdimensiontobeconsideredwillbetheBMofthePublicSectorrelatedtothosemeasures(thatwillbeworkedonDeliverable6.4)besidestheBMoftheIndustrialPartner.InWorkPackage4,relatedtomobilitysolutions,thekeyelementistheevolutionofthebusinessmodels.Theyseemfinanciallysustainable,andeconomicdatawillbe,again,crucialtoconfirmit.Thepointisthatthesectorofmobilityislivingadeeprevolution,withnewsolutionseverywhere,asonthemicro-freightdistributionmarket,withstart-upsfromtheCollaborativeEconomysuchasDeliverooorGlovo,orontheevolutionofthe auto industry and its impact in the ACES factors (Autonomy, Connectivity,ElectrificationandSharedmobility)determiningthefutureofmobility.ThispermanentevolutionimpliesthatmostoftheBMimplementedinGrowSmartermightbeovercomeinthefollowingyearswithnewsolutionswithnewBM.Thatdoesn’tmeanthattheBMproposed are not interesting or sustainable, on the contrary, they are useful, tounderstandinwhichdirectionaretrendsmoving,soitisawayfortheIndustrialPartnerstoanticipateintoanotherBM.ThepositionofthePublicSectorLast,butnotleast,thepositionofthePublicsectorwillbedeterminingonthesuccessoftheBM.Insomecases,asseeninWP3,thePublicSectorwillbethemaincontractor,andthishappensinsomespecificmeasures.ButwhenwetalkaboutthePublicSectorwehavetoconsiderthedifferentlevelsoftheadministration.OntheNationallevel,andon theEuropean level, thePublic sectorwill be crucial to review the legislationandharmonizeittoguaranteethereplicationandescalationofthesuccessfulBM.Onthelocallevel,thePublicSectorwillbecrucialfortheimplementationofthemeasures,butnotspeciallybyhiringthem,butbyprescribingthem,askingtocompaniesworkingonproducts that generate positive externalities, to enhance them by implementingmeasuressuchastheGrowSmarterones.Ongeneralterms,wecanconsiderthattheBMshowninthefollowingpagesarewellfocusedoncreatinganaddedvaluerelatedtotheimprovementofacommunitymoreenvironmentallysustainable, thankstoenergy improvements,andthankstoabetterimprovement of public policies due to the knowledge obtained through a correctmanagementofdata.Themeasuresimplementedhaveapositiveimpactintothejobmarket,astheyareallowingthecapacityofworkerstoimprovetheirskills,reinforcingthemamongotherworkers.ThankstoDataManagement,thepotentialsuccessofBMis related to Citizens’ decisions, and Local Public Sector appears as a prescriber and“incentivator”oftheimplementationofthemeasures.Finally,thefinancialsustainabilityoftheBMwillbedeterminedbythefinancialdata,speciallyonmeasuresfromWP2,butfortherestofmeasures,whatismoreimportantthantheeconomicdatais,inthecaseofmeasuresfromWP3,whatwillbetheBMfromthePublicSectorthatarehiringorusingthemeasures,and,forWP4,thecapacitytoevolvetheBMconsideringthepermanentchangesinthemobilityindustry.
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Onthemethodologicallevel,alessonlearnedisthatthereisn’tasingularwaytoanalyzetheBMofSmartsolutions.TakingintoaccountthattheCanvasModelisacorrectwaytodefineBusinessModels,as it isaworldwiderecognizedmethodology,thepoint isthatiftheSmartSolutionsinvolvebigdatamanagementcollectedfrompublicspacesorthankstopublicassets,theassessmentoftheBMrelatedtothemeasurewillalsoneedtoconsiderthepointofviewofthemunicipalauthority.AndinsomemarketsinsidetheSmartsolutionscloud,thepermanentcapacityofinnovationandevolutionimpliesthattheassessmentwillhaveto take intoaccount thecapacityofadaptionof theBMtothesepermanentchanges.
WorkPackage2.LowEnergyDistricts
TheWorkPackage2includesfourgroupsofsmartsolutionstryingtoaddressthecurrentproblematicsregardingenergy,constructionandurbaninfrastructure.ThefirstsmartsolutionoftheWorkPackage2isnamedLowEnergyDistrictsandconsiststoimplement,indifferentresidentialandtertiarybuildings,someactiveandpassiveenergyefficiencymeasuresinordertoreduceenergyconsumptionandincreasethecomfortabilitylevelsfortenants,owners,managersandusers.ThesecondsolutionisnamedSmartBuildingLogistics,andisgoingtobeimplementedonlyforthecityofStockholm.Thesolutiontries to increase the productivity of the construction activities by offering a moreefficient method to deliver construction materials on site; while at the same time,increasing the quality of life and reducing the noise and pollution. The third smartsolution is named Smart Energy-Saving Tenants, andwith the sameobjective as thepreviousones,toincreasethequalityoflife,thesolutionconsistsinprovidethetoolstomanage and control energy consumptions in a smart and efficient way. Finally, thefourth smart solution of this Work Package is named Smart Local ElectricityManagement, and it consists to deploy renewable and sustainable self-consumptionenergysources,inordertomitigatetheenergydeficitofbuildingsandfomentasmartuseofenergy.Thisshouldhelptoreduceenergyconsumptions,contaminantemissionsandimprovetheoverallqualityoflifeofaneighborhood.ConsideringalltheprojectswithinWorkPackage2,itcanbeconcludedthatthemajorityofinvestmentscanbecategorizedasveryimportantintermsoftheamountofmoneyrequiredtodeliverthesolution,butatthesametime,thereturnoninvestment,donotseem to compensate theopportunity costs. For this reason, ensuring key resources,somethingobviousbutobligatory inanycase,andensuringastable legal frameworkthus reinforcing the need for Public-Private Partnerships, can be one of the mainconclusionsfortheWorkPackage2.Inaddition,Public-PrivatePartnershipscanbetheformulatoencouragetheparticipationofdifferententitiesandinstitutions,fromboth,publicandprivatesectors,inaproject.Sharingrisksandcapitalizingbenefits,intermsof profitability and return of the investments for the private sector, and positiveexternalitiesfromthepointofviewofthepublicinstitutions.Forexample,inthecityof
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Barcelona,arefurbishmentprojectofresidentialbuildings,isbeingpossiblethankstoapartnershipofthischaracteristics,assumingthemunicipalauthority,partofthefundingneededtodeploythesolution.Forthesmartsolution1,Public-Privatepartnershipscanbethesolutionwhenitcomestocompensatetheinitialinvestment,sincetheexpectedreturns on investment can be lower in more temperate climatologies of southernEuropethanthoseofthenorthernregionsofthecontinent,becausethelowerdemandofheat.
On the other hand, citieswithmoderate temperatures, can represent an importantmarket for this solutions to be implemented, where said solutions can be thoughprioritizingthermalcomfortasamethodtogetmorequalityoflifethananintegratedactuationforsavinglargeamountsofenergy(andimprovingthequalityoflifeaswell).
Publicfundingshouldserveasanacceleratorforimplementingthemeasures,butwecannotobserveastructuraldependencesfromthissourceofmoney;withoutdenyingthecurrentimportanceofpublicadministrations.Thisimportance,asmentioned,canbetranslated indefiningtheregulationand legal framework forbuildingretrofitting,energyefficiencymeasuresandotherrelatedpolicies.Theimportanceofpublicfundingcoulddependonthepricingmethodsandhowtheindustrialpartnersachievetocapturevalue in those business models involving energy efficiency measures. The revenuestreamsofamodel,usuallydetermineifaprojectisfinanciallyattractiveforaprivatecompany,however,thereisadifference,insomecases,betweenwhoisinvestingandwhoisgettingthemostimportantrevenues(intheformofafeeorsavings).Iftherearediscrepanciesbetweenwhoisinvestingandwhoiscapturingvalue,theparticipationofthepublicsectorcouldbehighlyrecommendable.
Acrucialcharacteristicofthesemeasuresisthehighlaborcreationcapacity,atleast,during the implementation of the measures involving construction and installationstages.Intermsofemployment,itcanbeconcludedthatintheshorttermtheamountofjobsgeneratedthankstotheprojectsanalyzedinthisdocument,aresignificant,notonlyduringtheconstructionlaborsbutalsoduringtheideationofthesolutionandtheresearch anddevelopment tasks for creating the technology appliedwithin thehighaddedvaluesolutionsoftheGrowSmarterproject.
That being said, afterwards the implementation of these measures, in a growingeconomiccontextandhavingdemonstratedthebenefitsoftheGrowSmartersolutions,the proliferation of projects implementing smart solutions similar to those of thebusinessmodelstreatedforthelighthousecities,couldensuretomaintainorincreasethecreationofemploymentwithlowaddedvalue(construction)andalsohighaddedvalue(researchanddevelopmentofnewtechnologies). Inaddition,those lowaddedvalue jobs can become a low-medium or even high added ones, since it could benecessary a certain degree of technical (or management and other) skills andspecialization when working in the practical implementation (construction andinstallation)ofthesesolutions.Hypothesisthatstillneedtobecontrastedandthatwillbesubjecttoanalysisforthedeliverable6.3.
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The paper of the public authority can be important when it comes to fund theimplementation of themeasures and defining the regulation relatedwith it. But itsimportanceisalsoexplainedbyitsroleasmediatororchannelbetweenusers(residents,managersandvisitors)andtheprivatepartnersimplementingthemeasures.Somethingimportant to point out because as a key activity, in building adequate customerrelationshipsforensuringagreatuserengagementandacceptance,publicauthoritiescanhavealottodo.
At the end of the day, the final beneficiaries of the works carried out during theimplementationofthemeasures,anditsconsequencesunderstoodasitsraisond'être,arethecitizens,eitherresidents(customers,owners,visitors…)andtheneighborhoodandcommunityasawhole(forbetterqualityofliveandcomfortability,lowerenergycosts,creationof jobs-lessunemployment-andotherlessevidentconsequencesbutpositiveexternalitieslikealesspollutedenvironment).
The implementation of these smart solutions, for some projects such as therefurbishment of an industrial site and a library, or those of tertiary and residentialbuildings,arebeingdonecombining, for the sameproject,different solutionsof theWorkPackage2,andtheSmartSolution6oftheWorkPackage3.AnexampleistheincorporationofaHomeEnergyManagementSystemsinaresidentialbuildingsubjectofrefurbishmenttasks involvingenergyefficiencymeasures;or itsconnectionwithaDistrictHeatingSystem.
Insummary,thesmartsolutionsrelatedwithLowEnergyDistricts’WorkPackage,couldlay the foundations for a new way to devise new buildings as well as futurerefurbishment and retrofitting projects in order to achieve a more sustainable andenergeticallyefficientenvironment.
Solution 1: Low energy districts
Thetechnologytobuildnewnearzero-energyhouseshasdevelopedstronglybutmostof Europe’s buildings are already built and are due for refurbishment. The buildingschosenbyGrowSmarterrepresentcommonbuildingtypesforEurope.Aspecialfocushasbeengiventothebuildingsfromthe1950-1970ies,beingthebuildingsthattodaycountformorethanonethirdofEurope’sbuildingstockandaccommodatemorethan200millionEuropeans.Growsmarter covers different climate conditions and different starting points andneeds, and will demonstrate economically sound solutions to reduce energyconsumption,increasetheuseofrenewableenergyandimprovedlivingconditionsinallareas,provingthereplicabilityofthesolutionsalloverEurope.Twotypesofbusinessmodels will be compared: public private partnership and Energy performancecontracting,bothtobefurtherdevelopedwithintheprojectasawayofovercomingthemarketobstaclesthesemodelsfacetoday.
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Residential and industrial buildings will be refurbished using both traditional andinnovative solutions, like extremely energy efficient windows, ventilation and highperformance sewage heat recovery, energy-certified water taps, air tightness andtechnical insulation.GrowSmarterwill renovate 100.000m2of residential living andtertiary spaces anddecrease theenergy consumption in the selectedbuildings from150-200kWh/m2toinmostcaseslessthan50kWh/m2.Thestandardsafterrenovationwillbeaffordableforcurrenttenantsthusenablethemtomovebacktotherenovatedapartments.Dependingonthekindofrefurbishment,currenttenantswillbeabletostayorwillbeofferedasubstituteapartmentforashorttime,allthetimehavingaccessto their apartment. In addition, Home Energy Management Systems and basicrefurbishmentwillbeofferedtoalltenantsintheBarcelonademositeataspecialrate,increasingthenumberofbuildingsrenovatedandtheenergysaved.Foreachlighthousecityitisnecessarytoincludesomecontextfocusingtheattentiononhowenvironmentalfactorcanaffectthebusinessmodelsandifthemethodologiestodeliver similar valuepropositions can change in this sense. Forexample it canbearguedthatinthecityofBarcelona, it ismoreimportanttoachievethermalcomfortthansavingsbut,intheotherhand,inthecityofStockholm,theprioritycanbemorefocusedinachievingsavings(optimizingthedistributionofheat);bothcitieswithsimilarvaluepropositionsandobjectives(improvingthequalityoflifeandtheenvironment).Otheraspectsshouldbepointedoutforeachcity,forinstance,inStockholmtheheatingisincludedintherentandthereforethebusinessmodelmustbedifferentinthissense.ConclusionsregardingtheBusinessModelsrelatedtosolution1
With the smart solution 1, the Grow Smarter project is focused in modernize andactualizeprivateandpublicbuildingswithdifferentpurposes (residential, tertiary) inorder to become more energy efficient. The potential of this measures to beimplementedinmanyotherbuildings,apartfromtheonestreatedwithinthisproject,isimmensesinceabigproportionofthebuildingsbuildinEurope,dateof1950-1970.Someofthemeasuresrequirethepartnershipbetweenpublicandprivatesector,whileother are completely fund by public or private institutions. As happens with thoseprojects basing its revenues on an ESCO contract, if this contract is longer than theoperationperiodawardedtotheenergycompany,someinefficienciescanappear.Thisinefficienciescanbedefinedbythelackofincentivesintermsofprofitabilitylowerthanopportunity costs for energy companies willing to refurbish buildings. Since theseprojectsarecapitalintensive,intermsoffinancialresourcesbutalsointechnology.Theoperationperiodshouldtakeintoaccount,ifpossibletheESCocontract,andviceversa,if this isnotthecase,an importantbarrierfortheenergycompanyto implementanESCoservicecouldappear,sincetheeconomicsavings(andprofits)normallyemergeattheendofsaidcontracts.Tomaintaintheproject’sfinancialattractiveness,fromtheenergycompanypointofview,whenthisisnothappening,theimplicationofthePublic
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Administrationcanbecrucial.Forthisreason,hasbeenconsideredasakeypartner,eventhoughitslevelofpresencecanbeirrelevantforsomeparticularcases.Inconclusion,wecanestimatecertaindependencywithpublicresourcesformeasuresincorporated within the smart solution 1 but not a structural one, as noted whenintroducing theWork Package 2. This relative dependency (not only considering thefundingaspectsbutalsoregulation)canchangewhenanalyzingthefinalresultsforeachproject. Finally, the costs of implementing these technologies could decrease in thefuture,requiringalowerfixedcostsofimplementation(entrycosts).Ifthishappens,theimplication of public administrations could be less important, erasing an importantdegreeofdependencybetweenPublicandPrivatesectors,sincethemarginalandtheoverallcostsofsaidtechnologiescouldbereducedinthemedium/longterm.
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Barcelona.Refurbishmentofprivatetertiarybuildings
Measures:1.0;1.1.9;1.1.10.1;1.1.10.2;1.1.11
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
1.Equipmentmanufacturers2.Engineering
firms3.Construction/installationfirms
4.PublicAdministrations
(PPP)
1.Energyauditingtoevaluateexisting
buildingsystemsandidentifypotentialimprovements.
2.Proposalofenergyconservation
measures,contractnegotiationandagreement.
3.Implementation.4.Exploitationandenergymanagement5.EnergySavingsMeasurement&Verification(M&V)
FortheCity/Community:reduceenergyconsumption
andincreaserenewablesproduction(if
renewableproductionisincluded).
AccomplishmentoftheEU/CityPolicies.Forbuildingowners:Decreaseinenergycosts,maintenancecostsandequipmentbreakdown(incaseof
replacingoldequipment),increaseinpropertyvalue,receiveturnkey
solutionwithenergymanagementandin
somecasesguaranteedenergysavings.Betterimage(SCR)forbuilding
customers.Avoidup-frontinvestmentby
thebuildingmanagers.
ForbuildingUsers/Costumers:insomecasesincreased
comfort.
Commercialphase:dedicatedpersonalassistance.A
commercialmanagerisassignedtothecustomerinthecommercialphase.
Construction/exploitationphase:Dedicatedpersonalassistance-interlocutorchangesatcontractsignatureandstartofworks,toa
construction/exploitationspecialist/EnergyManager,
usingBEMS.
Commercialbuilding
owners(hotels,sportscenters,
publicbuildings,etc.)Commercialbuilding
managersifdifferenttoowners(e.g.
publiclyownedsportscenters).
KeyResources Channels
1.Customer’sbuilding/installationstoberefurbished.2.Technologyandconstruction3.Platformforcustomermonitoringandanalysis4.Financialresourcesforinvestment5.Commercial,engineering&managementcapacity.
1.Directsalestonewcustomers2.Tendersforpublic
administrationorprivateentities.
3.Salesthroughequipmentmanufacturers/distributors/installers.GNFhassomeagreementswithmanufacturers/distributors
sothattheyrefertheircustomerstoGNFincasetheyareinterestedinobtainingtheequipmentthroughasanEnergy
Service.4.Salestoexistingcustomers,
e.g.electricity/gasretailcustomers,existingESCo
customers.CostStructure RevenueStreams
Investmentcosts(equipmentandconstruction),engineering,management
andcommercialcosts,maintenancecostsandenergycosts(ifincludedin
service).
Payment by the customer for Energy Services as agreed by contract.Generally, a fixed and/or variable fee for equipment, energy supply andmaintenance (if included), and/or a payment related to savings – seereference(1).TypicaloptionsincludepaymentsperkWhdelivered(EnergySupply Contract – ESC), or payment related to performance or savings(EnergyPerformanceContract–EPC).
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IndustrialPartner:GasNaturalFenosaShort Description: A series of individual projects implementing active and passiveenergyefficiencymeasures indifferent tertiarybuildings includingasportcenter,aneducationcenterandahotel.Themaingoalofthissolutionistoreducethecombinedenergyconsumptionoftherefurbishedbuildings,reduceenergycostsandimprovethesustainabilityofthebuildingsintermsofenvironmentandfutureconstructioncriteria.Escola Sert, in Barcelona, is the educational building subject to be refurbished byinstallingphotovoltaicpanelsandabuildingenergymanagementsystemtomonitorandcontroltheenergyefficiencyandtheusage levelsofenergy.Thesportscenter istheCEM Claror Cartagena, with similar measures being implemented during therefurbishmentworks,andfinally,thehotelH10(Catedral),alsoabuildingwithtertiaryactivitiesandwithsimilarbusinessmodelstothoseoftheprevioustwobuildings.Themeasuresimplemented,differfrombuildingtobuildingeventhoughweconsideredtodrawasinglebusinessmodelforallthreetertiarybuildingssincealltheprojectssharetruncal characteristics when it comes to value propositions and implementationprocedures.Thetechnicaldetailsofeachindividualmeasure,aredescribedonthetechnicalreportsoftheGrowSmarterproject.Onthisdocument,wewillrelateeachtypeofmeasurewith itsplaceof implementation, toguide the reader,withoutdelving into technicaldefinitionsthatarenotsubjectofthisdocument.Thatbeingpointedout,andstartingwiththepassiveenergyefficiencymeasures,inallbuildingsincorporated,anexternalthermal insulation composite system is going to be installed. Other measurecomprehends thechangeofwindowsat thehoteland theeducationcenter.At saidsportcenter,therearetwomeasures,oneabouttheinsulationofthepoolandotheraboutthermalzoningbetweenspaceswithdifferentdesigntemperatures.Anactivemeasureimplementedinthethreerefurbishmentprojects,istheinstallationofabuildingenergymanagementsystem.However,thereareindependentmeasuresforeachproject;forinstance,thehotelisreplacingitsexistingboilersforothersmoreefficient.Otherexamplesarethereplacementoftheexistingchillerforahighefficiencyheatpumpjointlywiththeimplementationofanaerothermalheatpumpsatthehotelandthesportcenter;thereplacementofthelightningsystemofthesportcenterandtheeducationcenter,andfinally,theoptimizationofthewaterdistributionloopandtheinstallationofdehumidifierwithheatrecoveryinthesportcenter’sswimmingpool.FortherefurbishmentprojectoftheEscolaSert,remarkthatithasbeendecidedtoinstallphotovoltaicpanelsintegratedintothebuilding’sfacade.CustomerSegments
Themeasures in these threedifferentbuildings, canbe replicated inotherbuildingssharing,somefundamentalcharacteristics.Sincethisconditioncanbesatisfiedbymanyotherbuildings,thepotentialcustomerscansupposeamassmarket.However,there
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areotherconditionstobesatisfied,startingbytheownershipormanagingauthoritiesofthebuildings,whichhavetohavethewillingnesstorefurbishthebuildingthefacilityinproperty.Thebuildingitself,hastoaccomplishsomerequirements,mainlytechnicaland demonstrate the possibility to increase its energy efficiency and environmentalsustainability.Thatbeingsaid,neighborcommunitiescanbeaperfecttarget,forenergycompanies,toaddressthiskindofservicesandrefurbishmentprojects.Otherimportantsegment are the public administrations, institutions with high environmentalconsciousnessowningpublicbuildingsandfacilitieswheremanyofthemeasurescanbeimplemented.ValuePropositions
Therearemanyvaluepropositionsthatemergefromthethreerefurbishmentprojectsanddefineitsbusinessmodel.Themainvaluepropositionisthereductionoftheenergyconsumptionand theenvironmental impact.Thanks to the implementationofactiveand passive energy efficiency measures, it is expected to reduce the energyconsumptionssignificantlyforallthreebuildings.Alsothankstothisreductionoftheconsumptionlevels,thecontaminantemissionsshouldbereducedaswell.Othervaluepropositions should be considered afterwards since its level of importance is moresubjective than the firstonebut importantnonetheless. For instance, improving thequality of life of the users and people utilizing the buildings in general. Theimplementationofisolationmaterials,betterlightningsystemsorabettercontrolofthethermal aspects of the building, should be traduced in a noticeable increase of thecomfortabilitylevel.This,inturn,couldimplyanincreaseofusers,whichisthesameassayingahigheroccupancylevelsforthehotel,ahighernumberofstudentsinthecaseof the Escola Sert, andan increaseof users in the caseof the sport center. For thisreason, this value proposition is linked with the value proposition of increase theprofitabilityof thebuildings fromthepointofviewof itsexploitation,managingandownership.Promotingsustainableeconomicdevelopment, isothervaluepropositioncloselylinkedwiththepreviousones.Increasetheattractivenessoftheservicesofferedin thebuildingby implementing smartenergyefficiencymeasures,notonlyhelps toboosttheeconomicprofitabilityofthebusinessesmanagingthebuildings,butalsotoincreasethemarketvalueofthebuildingandthemarketvisibilityhelpingtoreplicatesimilarbusinessmodelsbasedinefficientandsustainablebuildings.Channels
The channels used are direct, between thebuyer and the seller this is between theenergy companyand theownershipormanagingauthorityof thebuilding. To reachawareness,theenergycompanyconsiderstoaddressitsawarenesscampaignsfocusedin participate in public and private tenders, informing about what the company isofferingandthebenefitsofimplementingitssolutions.Otherchannelistheonethatcomprehends the sales made through equipment manufacturers, distributors orinstallers. In this regard, the energy company of Barcelona’s refurbishment projectsregarding these tertiary buildings, Gas Natural Fenosa, has some agreements with
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manufacturersanddistributors,sothattheycanrefertheircustomerstothecompanyincasetheyareinterestedinobtainingtheequipmentasanenergyservice.Finallyotherchannelistheonewherethesalesareaddressedtoexistingcustomers,withexistingESComodelsorelectricityandgasretailcustomerswithmoremainstreamcontracts.CustomerRelationships
The energy company distinguish between two main types of relationship, the oneoccurring during the commercial phase and other during the construction,implementationandexploitationphase.Duringthefirstone,acommercialmanagerisassignedtothecustomer,withdedicatedpersonalassistance. Intheseprojects,withsimilarbusinessmodelsbutwithdifferentcharacteristicsintermsoftypeofthebuildingandwithsomediscrepanciesregardingthemeasuresimplemented,seemsnecessarytoassignadedicatedcustomerassistanceforeachbuilding.Thesamehappensduringtheconstructionandposteriorexploitationphases.However thepersonneldedicated toassist the customer might change according to said phase and the needs of thecustomer.Forexample,inthecaseofthehotelH10,therelationbetweenGasNaturalFenosaincorporatesanenergyexpert,adaptingtheprojecttoconsiderenergyaspectsintherefurbishmentstage.Inthismodel,thefinalcustomer(inthiscasetheownershipsof thebuildings)havea single interlocutor,GasNatural Fenosa,whichmanagesandcoordinatesalltheagentsneededtoexecutethewholeprojects.RevenueStreams
TheprojectsaregoingtobebasedinanESComodel,thus,theinitialinvestmentisgoingtobeassumedbythecompanysellingthe implementationofthemeasuresforeachbuilding.InthecaseofBarcelona,thiscompanyisGasNaturalFenosa,whohasachieveddifferentcontractsforeachbuilding.Inthecaseofthesportcenter,duetheownershipofthebuilding,amunicipalinstitutionproperty,andtheprivateexploitationofit,thecontractconditionscandifferfromtheothertwobuildings.Ashasbeenpointedout,theinitialinvestmentisassumedbytheenergycompany,whichinturn,inexchange,receivesaperiodicfee.Thesavingareguaranteedbydefinitionbytherefurbishmentprojectinvolvingtheimplementationofactiveandpassiveenergyefficiencymeasures,and ideally, the saving achieved should be enough to compensate the investmentrequired to develop the implementation of the Grow Smarter solution and the feechargedbytheenergycompany.Themoredilatedintimeisdividedthisfee(somethingtoconsider intheagreementbetweenthe industrialandthecustomer), thebroaderscope for the refurbishment and implementation project, something that coulddeterminethefinancialsustainabilityoftheproject.KeyResources
The main resources for these three separate projects to become a reality can beclassifiedbetweenphysic,financial,intellectualandhumanones.Startingwiththefirst
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ones,thebuildingsorinstallationstoberefurbishedarethemainphysicalresource.Theequipmenttobeinstalledandconstructionmaterialsarealsoakeyresourcetobetakenintoaccount.Thefinancialresources,mainlyprovidedbytheESCocompanyinthecaseofBarcelonabutalsoinothercasewhenthepublicsectorcouldhaveapredominantrole in its regard; the intellectual resources, basically considering the technologies(hardwareandsoftware)andthelicensesandpatentstobeused,eitherpropertyoftheenergycompanyorfromathirdpartyone;andfinallythehumanresources,involvingcommercialandmanagingteams,engineersanypeoplerequiredtoworkintheproject.KeyActivities
Beforeimplementingthesolutionsandstartingtherefurbishmentplan,therearekeyactivitiesthathavetobepointedout.First,thetechnicalreports,analyzingthetechnicalviabilityoftheprojectanddecidingwhichmeasurescanbeandshouldbeimplementedoneachbuilding.Thenitisimportant,fromthepointofviewoftheESCocompany,toconvincetheownershiptoinvestinactionswithhigherpaybackthantheonestheyuseto accept for investing. To show them the cost of opportunity of not investing in arefurbishmentprojectlikethisone.Withotherwords,describingthepotentialbenefitsofintegratingpassiveandactiveenergyefficientmeasuresintotheirbuildings.KeyPartnerships
Thekeypartnersofthebusinessmodelarethedifferentagentsinvolvedintheprojects.Themain partners are the ESCo Company (the energy company participating is GasnaturalFenosa)andthecustomers,representedinthiscase,bythedifferentbusinessmanagingorowningthebuildings.Sincesomemeasuresareveryspecificforeachtypeofcustomer,inthecaseofthehotel,therearesomeproceduresthatcouldbereplicatedinotherhotels,forthesereason,whenimplementingthesemeasures,ownersandhotelindustrybrands,have tobeconsideredalwaysasakeypartner.The same for thosemeasures involving the refurbishment of a swimming pool, considering the sportfacilitiesasakeypartner.Otherpartners,besidesthecompanyprovidingtheservicesand theone requiring it, are thedifferent subcontractedcompaniesor collaboratingcompanies and people involved in the projects. Those are the technic specialists,engineers, architects,manufacturersanddistributorsofproducts for thegeneration,distribution, management and control of the thermal and electric energy and theimplementationofthesmartsolutions.CostStructure
Therearecoststhatappearduringtheconstructionandinstallationstages.Sincethesearethemostcapital-intensivestagesoftheproject,theimportanceoftheexpendituresgeneratedduringtheseperiods,intermsofabsolutefigures,canrepresentamajorpartofthetotalcoststructureofeachproject.Thecostsgeneratedbycommercialactivities,havealsotobeincluded.Thesamehappenswhenitcomestothemaintenanceofthe
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service.Fromthepointofviewoftheclient,theenergycosts(ifincludedinservice)arealsopartof thecoststructure,which in turncompensate theenergyprovider for itsservices.Therearecoststhatcouldappearbeforeorduringtheimplementationofthesolutions,thesecostscanbemoredifficulttodetermine,forexampledecisioncostsortransactioncosts, if theownershipof thebuildingor someprovidersgenerate someinefficienciesintermsoflackofunderstandingoraprobleminthesupplychain.
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Barcelona.Refurbishmentofprivateresidentialbuildings
IndustrialPartner:GasNaturalFenosa.Measures:1.0;1.1.10.1;1.1.10.2
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
1.Architects2.Engineers
3.Constructors4.Installer
5.Departments
ofthecompanyitself6.Communitysocialworkers7.Presidentoftheneighborcommunity8.Neighborcommunity
itself9.Investor10.Public
administration(urban
landscapedepartment
andresponsiblefor
subsidies)11.Public
administration,inthecaseofpublicprivatepartnership
(PPP)
1.Managingtheworksfromthebeginningoftheproject.2.Exhaustiveanddetailed
calculationofcosts.3.Choosingtheteamandcoordinatingthe
activities:architecture,engineering,constructor,installer,securitymanager,qualitymanager.4.Contracts
withstrictconditionsonquality,timingsandpenalties.5.
Participatoryprocesswiththecommunity.6.Constructionandcommissioning.7.Construction
andcommissioning
Fortheneighbors’communities:guaranteeofqualityofworks,bettercomfortandqualityoflifeathome,
guaranteeofenergysavings,guaranteeofenergyefficiency,onlyoneinterlocutorforeveryproblem,
increasingofthepropertyvalue.Forinvestors:reductionofinitial
investment(onlybuyingthebuilding),fractionatingoftheinvestmentin
refurbishment,guaranteeofqualityofworks,guaranteeofenergyefficiency,
onlyoneinterlocutorforeveryproblem,lesspainforthemanagementofneighbor’scommunity,increasingof
thepropertyvalue.Forpublicadministration:fractionatingofthe
investmentinrefurbishment,guaranteeofqualityofworks,
guaranteeofenergyefficiency,onlyoneinterlocutorforeveryproblem,lesspainforthemanagementof
neighbor’scommunity,increasingofthepropertyvalue.
OnebyOneMarketing&PublicityPublic
relations
Neighbors’communities
(BTC)or
Investors(BTB)or
Publicadministration(BTB-PPP)
KeyResources Channels(1)Fundstoinvest(2)Communitymanager
(3)Administrationmanagerforbureaucracymanagement(4)Technology,coordination
andmanagementcapability(5)Humanresources
(6)Monitoringplatformforcustomermonitoring,analysis
andloyalty.
DirectsalesAdvertisingcampaigndoortodoorAdvertisingcampaignviawebsite
AdvertisingcampaignviaTV,radio,letterbox,mailboxHomeEnergyManagementSystem:serviceofenergy
advisorforcustomerloyalty
Publicprocurement(incasethepublicadministrationwantstomakeapublicprocurementbeforetoexecuterefurbishmentworksinabuilding)
CostStructure RevenueStreamsFixedcosts(Negotiationofcontracts,project
development,legalizationprocess,construction,commissioning,salaries,technological
infrastructure,participatoryprocesswiththecommunity,monitoringandanalysis,
maintenance)
1.Energysupply,ifincludedincontract2.Paymentsbythecustomer(includeenergysupply,investment,
maintenance,interestsreturnoninvestment,andenergysavings,forafixedperiod).See(1)forreference).
3.Advertisingonthescaffold(ifpossible)Variablecosts(marketing,incidentalsanddelays,changeoflackofhumanresources,energycostif
supplied)
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Solutionconsisting in implementingpassiveandactiveenergyefficiencymeasures infour residential buildings in the city of Barcelona with the purpose of reducing theenergy costs and increase the environmental sustainability of the buildings. Thisbusiness model is applicable for a series of individual projects sharing some of themeasuresenglobedwithinthesmartsolution1oftheGrowSmarterproject.Admittingthe inconsistency of joining all the projects in a same business model, since themeasures implemented are not the same in many cases, we can identify points incommonforallthebuildings,achievingacommondenominatorwhenitcomestovaluepropositions,revenuestreamsandcustomersegments.CustomerSegments
Thetypeofmeasuresconsideredwiththissmartsolutionincludetheimplementationofpassiveenergyefficiencymeasuressuchastheinsulationofthefacade,changeofwindowsandremoveofthecoldbridgebetweenwindowsandfacade,installationofblindsandalso,theimplementationofactivemeasures,suchasthechangeofboilers,theconnectionwiththedistrictheatingsystem,theinstallationofefficientwatertapsoraHomeEnergyManagementsystem.Thesemeasures,orsomeofthem,cannotonlybeimplementedinaresidentialbuilding,butalsoinothertypeofbuildingsorfacilitieswith similar refurbishment necessities and energy policies. In summary the smartsolution1byGasNaturalcanbe implementedviabusiness tocustomer,business tobusiness or via public private partnership models (including residential and tertiarybuildings).However,asawhole,themaincustomersegmentfortheindustrialpartner(ESCo)incaseofreplicatethemodel(Public-Privatepartnership),aretheresidenttypeofbuildings.Valuepropositions
The implementation of passive energy efficiency measures aims to increase thecomfortability levels of the buildings by implementing insulation solutions. Weunderstand as a passive measure those involving facade insulation, roof insulation,replacingthewindowsandremovingthecoldbridgebetweenwindowsandthefacadeitselfandinstallationofblinds.Ontheotherhand,theimplementationofactiveenergyefficiency measures aims to reduce the consumption of energy thus reducing thecontaminant emissions by using more efficient systems and, if it is the case, usingrenewableenergy. Foractiveenergymeasures, theseprojects could incorporate thechangeofboilers,theconnectionwithadistrictheatingsystem,installationofefficientwatertapsandtheimplementationofahomeenergymanagementsystem(HEMS);allprovidedbyasingleindustrialpartner,inthecaseofBarcelona,GasNaturalFenosa.Forthem,asanenergyprovider,theimplementationofactiveandpassiveenergyefficiencysolutionshassupposedthepossibilitytotestanESComodelinthecityofBarcelonaandforresidentialbuildings.
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KeyResources
Thekeyresourcesoftheprojectsaredividedwithinfoursubgroupsofresources.Thephysic assets and resources include the buildingswhere the differentmeasures aregoing to be implemented. The equipment and materials needed to implement thesolutionsandotherphysicalassetsmandatorywhenitcomestorefurbishabuilding.The financial resources can also be categorized as key ones. This is because it isnecessarytocountonaninvestor(publicadministrations,energycompanies,orbankinginstitutions) to fund other key resources and, at the end, to make plausible theimplementation of the smart solutions. Said other key resources involve all humancapitalrequiredduringthedifferentstagesoftheimplementation,thisisthepreviousworks (technical reports or solving legal issues), construction and installation of themeasuresandfinally,monitor,maintenanceandverificationtasks.KeyPartners
The key partners of these projects are basically the public administrations and itsdepartments involved with each project. This definition includes the department inchargeofassigningthepublicfunds(publicsubsidies,incasetheprojectswerefundedinpartbythemunicipalityorinapublicprivatepartnershipconsideringotheraspectsbesides the funding) and the urban landscape department. Other partners are thecompanies, inmanycasessubcontracted,offeringconstructingservices,deliveringofmaterials,architects,engineers,installers,andminorinvestors.Fromtheperspectiveofthefinalbeneficiariesofthesmartsolutions,theneighborhoodsandtheresidentsofthebuildings,itisimportanttoconsiderthoseagentsrepresentedbythepresidentofthe neighbor community or the neighbor assembly. Returning with the publicadministrations,theseinstitutionsalsoserveasakeypartnerwhenitcomestostablishachannelbetweentheESCocompanyandtheresidents.KeyActivities
Key activities include the managing of the project since the beginning of it. Theelaborationoftechnicalstudiestodeterminetheviabilityoftherefurbishmentprojectfrom the technical point of view and also to elaborate an exhaustive and detailedcalculationofcostsstudy.Choosingtheteamandcoordinatingtheactivitiesinthefieldsof architecture, engineering, construction, installation, security and quality. Alsoimportant to draw a contract where timings, quality conditions and penalties aredetermined,foreliminatinganyuncertaintyandinefficiency ifanyproblememerges.Other key activities include the monitoring, managing and control of the energyconsumptions. In addition, from the point of view of the residents, is important tostablish participation processes with the communities where public administrationscouldparticipateaswell.CustomerRelationships
Customerrelationshipsaremainlyfocusedtosatisfytheresidentswhenanyproblemappearsbasicallyoccasionedbyalackofinformation(asymmetriesbetweenresidentsand energy providers), or for some other problem (as has been detailed later in its
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correspondingsection,thepublicadministrationscanbeafundamentalparttomakepossible a relationship between residents and ESCo companies). Relationships withcustomerscanbereachedalsousingaonebyonemethodologyorviaothertypeofpractices,suchasviacorporatewebsitesandpublicrelationshippersonnel.Revenuestreams
Besides the external funding of the project (flux of revenues coming from supra-governmentalEuropeaninstitutions),theinvestmentsarethoughttobecompensatedvia theenergybills (dependingonconsumptionandenergyprices) if included in thecontract,andotherpaymentsbythecustomers(tenantsorresidents).CostStructure
Thecostoftheinvestmentissharedbytheindustrialpartner,GasNaturalactingasanenergyprovidercompany,andpublicinstitutions(grantsfromthecouncilandEuropeanfunds). The fixed costs, since these are intensive capital projects, represents animportant part of the cost structure. Fixed costs, basically in equipment and inconstructionworks are themost important. Also, in this category, negotiation costs(decisionmakingcosts(eitherwiththecommunity/publicadministrationsorwiththeprovidersandtransactioncosts),managingandlegalconsultancycostsormaintenancecosts,representpartofthecoststructure.Forvariablecosts,tohighlighttheimportanceofthemarketingstrategyandthoseunexpectedcostsappearingduetoincidentsanddelaysoccasionedbyprovidersorlackofhumanresourcesinacertainmoment.Channel
ThemodelisbeingtestedinthecityofBarcelonafordifferentresidentialbuildings.Inthis regard, the industrial partner has achieved an agreement with the municipalauthorities of Barcelona, serving as a channel between Gas Natural Fenosa andneighbors and residents of the buildings. The channel provided via Ajuntament deBarcelona,servesasaveryefficienttoolforengagingtheresidentialbuildingownerswiththeprojectandatthesametime,thisPublic-Privatepartnershiphascreated, inparallel, a Task Force to improve the engagement process incorporating experts inrefurbishmentandinengagementproceduresandmethodsforencouragingresidentialownerstoparticipateintoPublic-Privaterefurbishmentprojects.Forreachingawareness,inthecaseofthemainindustrialpartnerinBarcelona,ithasspecifiedthatitsmaindirectchannelsarebasicallytheadvertisementcampaigns.(Door-to-door, via corporatewebsite or internet advertisements, campaigns via TV, radio,letterboxormailbox,andwhenitcomestothehomeenergymanagementsystem,aserviceofenergyadvisorforcustomerloyaltyhasbeenthoughifitisthecase.Finally,incasethepublicadministrationwantstomakeapublicprocurementbeforeexecutingtherefurbishmentworks,thepublicprocurementbecomesagreatchanneltoestablishacontractualagreementwithapublicinstitution.
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Barcelona.Refurbishmentofpublictertiarybuildings
KeyPartners KeyActivities ValuePropositions CustomerRelationships Customer
Segments
(1)Publicadministration
(BIMSA)(2)Business
privateinvestor(CISCO)
(3)Privatecompanies:constructioncompany,engineeringcompany,monitoringsystemprovider(4)Facilitymanagers
(5)BarcelonaEnergyAgency
(forthemonitoringofthebuilding)
IREC
Buildingworkscombinedwiththedevelopmentof
BuildingEnergyManagementSystemtooptimizeenergyand
waterconsumptionwhilereducingtheenergycostforcompaniesdoing
activitiesrelatedtoR&D.
(1)Todemonstratethepossibilitytobuildnetzero
energybuildings(NZEB)throughapublic–privatepartnershipbyretrofittinga
historicindustrialbuilding.
(2)TocreateaTechnologyHubinthedistrictbasedonlow-energysite(innovativeecosystem)
(1)Communicationswitharchitects
specializedonbuildingrefurbishment,
urbanismprofessionalstorenewindustrialareasofthecity
(2)CommunicationswithdifferentPublicadministrationbodies(3)GrowSmarter
impact.Demonstrationsite
(4)Workshopstoexplainbuilding
characteristicsonceoperative
(1)Publicadministration:a.Organizationswithinpublicadministration(BarcelonaInstituteofTechnology
foundationfortheHabitat(BITHABITAT))b.Districts(DistrictofPoblenou)
(2)Privatesector:a.Technologicalmultinationalcompanies(CISCO)
b.Start-upsandothercompanies
(3)Citizens
KeyResources Channels(1)Financialresources
fromBarcelonaMunicipality(annual
budget)(2)Technological
software:SmartEnergyManagementSystem
(3)Constructionmaterialsandequipment
(4)Personnelfrompublicadministrationtomanage
project(BIMSA)(5)SENTILOpublic
databasetoguaranteeanopenbuildingoperation's
follow-up(6)LEEDcertification
(1)thebuildingitselfwillbeusedasa
showroomforfuturedevelopments
(2)Screensinthebuildingfor
energy/comfortdatamonitoringdisplay(3)press,media
CostStructure RevenueStreamsCapex:(i)Hardware/softwarerelatedcosts:procurementofmaterialsand
equipment(ii)Engineeringcompany
(iii)StafffrompublicadministrationOpex:(i)Maintenanceandrepositioncosts
(ii)Monitoringandmaintenancestaff(iii)Energysupply
(1)IndirectbenefitssuchasfreerentalspaceforaperiodoftimefortheactorsinthePPPinexchangefortheinvestment
provided.(2)Energycostssavingsthankstoenergyefficiencymeasures.(3)Rentalsfromstart-upsandothercompaniesrentingoffices
intheretrofittedbuilding.
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Measures:1.0;1.1;1.1.6;1.1.9;1.1.10.1;1.1.10.2IndustrialPartners:IREC,CISCO&BarcelonaCityCouncilRehabilitation and integral refurbishment projects of two buildings following energyefficiencycriteriatoreduceenvironmentalimpact.TherenovationofCal’Alierseekstosatisfy the necessity for a Public-Private relation to establish a center or a hub fordeveloping, ideating, creating and fomenting the apparition of new startups or newideasrelatedwiththeSmartCitiescontext.Theotherrefurbishmentprojecttakesplacesinamunicipality-ownedprevioustextilefactoryanditwillbealibrary,alsowithanearlyzeronetenergybuildingNZEBcriterion.BothprojectsuseaPublic–PrivatePartnershipframeworkandtheyshouldbeareferencefor industrialandpublic-ownedbuilding’srefurbishmentsinthecity.CustomerSegments
Inthecaseoftheindustrialsite,thenecessityofthistypeofcollaboration(Public-Privatepartnerships),describesbothcustomersofthisproject.Fromthepublicside,thepublicinstitution is the municipality of Barcelona, and from the private side, CISCO atechnologyconglomeratespecializedintelecommunicationsinfrastructure. Inamoregeneralsense,thistypeofprojectcouldbeattractivefor:
Publicadministrations:a) TransformationofanoldindustrialsiteownedbytheCityCouncilintoacenter
ofinnovationandexcellenceonsmartcitiesusingprivatefinancialresources.b) Districttransformation,fromanoldindustrialdistricttoaninnovativeone.Privatesector:a) Corporate buildings: expected reduction on final energy consumption levels
comparedtoanaverage(withsimilarcharacteristics)corporatebuilding.b) Technological andmultinational companies: Availability of office space in an
innovativeenvironment.Thatbeingsaid,consideringtheactivitiesthatarebeingcarriedoutintothisbuilding,Cal’Alier;anothertypeofcustomersegmentscouldbeinterestedwiththisprojectbyweighingtheimportanceofeachpossiblevaluepropositionsinadifferentmanner.Forthisreason,nearlyeverytypeofbuildingcouldbesubjecttoasimilaraction.Buildings’owners,managersandneighborhoodcommunitiesarepotentialcustomers.Sincethesampleof buildings is gigantic,we could bedealingwith amassmarket in termsofcustomer segments. The samecouldbeargued for the refurbishmentprojectof thelibrary,implementingimportantmeasuresthatcouldbeofinterestforotherbuildings,includingresidentialones.Inthecaseofthelibrary,thesetypesofmeasurescanbeaddressedtoanycommercial,residentialortertiarybuildingownerandmanagerwhoaimstoincreasetheefficiencylevelsofabuildingamongotherkindofvaluepropositionsthatcouldattractthesetypesofcustomers.Thatbeingsaid,notethatthelibraryprojectisspecificallydesignedforahistoricalbuilding,beingpublicinstitutionssuchasthedistrictorthelibrarynetworkofthecity,theclients.
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Valuepropositions
There are two projects sharing similar value propositionswhen it comes to achieveenergeticandmonetary savingsand increase theenvironmental sustainabilityof thebuildings and also boosting the Public-Private partnerships in the field of energyefficiencyandrefurbishmentprojects.However, inparticular forCa l’Alier, since thisprojectisfundedthankstoaPublic-Privatepartnership,themainvaluepropositionisthe recovery by theMunicipality of an abandoned space and a historic building toestablishaninnovationcenterinthedistrictandfosterentrepreneurshipinthecity(byrenting out offices space in the building to start-ups). That being pointed out, asecondaryvaluepropositionistoestablishahubforthepromotionofactivitiesrelatedtoentrepreneurshipandSmartCities.Othervaluepropositionistoincreasetheindoorcomfortabilityofthebuildingfortheusers.Thebuildingwhereitwillbelocated,Cal’Alier,pretendstobeademonstrationofnearlyzeroemissionsbuilding,(nZEB).Tomeetthisproposal,aseriesofmeasuresrelatedwithincreasing the energy efficiency levels are included in the project, for instance, theconnection with Districlima. The consecution of a NZEB building could serve as anexampleforotherpotentiallyrefurbishablebuildings,publicorprivate.Inthissense,Cal’Alierhastobeconsideredasapilotproject.The library project is also based in a Public-Private partnership, where publicadministration acts as a funding partner and also as a client, in this regard, similarnecessitiesaregoingtobefulfilledbysimilarvaluepropositionsasCal’Alier,themostimportantoneistodemonstratethepossibilitytobuildahigh-performancebuildingforpublictertiaryusesbyretrofittingahistoricindustrialbuildingthusimplementingsomemeasures (activeandpassiveenergyefficiencyones) toachieve lowerconsumptionsandbetterenvironmentalsustainabilityiswhatthisprojectisallabout.Thetypologyofthebuildings(NZEB),shouldbetranslatedinadecreaseinenergycosts,maintenancecostsandequipmentbreakdown.Also,itshouldimplyanincreaseinpropertyvalueandtomeetwithenvironmentalregulations.Besidestheactualbuildings,wecanidentifyaninherentvaluepropositionthataffectstheir surroundings. Since these measures should improve the environmentalsustainabilityofabuilding,thenearerurbanareawhereitislocated,receivespositiveexternalities,benefitingthepeoplelivinginthesamearea.So,thereisaninherentvaluecapturebythecitywheretherefurbishmentprojectistakingplace.KeyActivities
InthecaseofCal’Alier,theprojectconsistsinabundleofkeyactivitiesthatcomprehendthe implementation ofmanymeasures. The list ofmeasures for this precise projectincludeactiveenergyefficiencyandpassiveenergyefficiencyrelatedmeasures,amongothertypeofactionssuchustherefurbishmentworksofCal’AlierfortheSmartlocalthermaldistrict.Cal’Alierisanoldindustrialbuildingthatwillbere-builtintoanearlynetzeroenergybuildingthankstobeingconnectedtotheexistingdistrictheatingand
29
coolingnetworkcalledDistriclima.Theworksrelatedwiththismeasurearekeyactivitiesin that sense, for example, the technical study or the construction process. Whenspecifying the key activities for the library’s refurbishment project, the inherentactivitiesofthistypeofprojectcouldbedivided intotwomaingroups.Thefirstonecould be defined by those activities generated thanks to the ideation and auditingprocesseswhere themeasuresmight be implemented and also those activities thathappenduringtheconstructionprocessandinstallationofthemeasures.Asmentionedin other business models, a key transversal activity when we try to renovate andremodeldifferentaspectsofabuildingisthetechnicalreport;thetechnicalevaluationplan.Thiswillnecessarilyresultinaproposalslistofenergyconservationmeasures,asubsequentcontractnegotiationandanagreement(ifitisachieved).Thenextactivitiesaretheparticularonesofthisbusinessmodel,theonesthatarebeingconsideredtoimplementintolibraryLesCorts(BIMSA):façadeandgroundfloorinsulation;glazing:implementationofanefficientradiantfloorsystem;installationofanefficientlightingsystem and, regarding the active energy efficientmeasures, the installation of a PVsystemandaLEDandnaturallightningexploitation.(Theenergymanagementsystemisalsoincludedinthatcategory).Thesecondgroupofactivitiesarethosekeyactivitiesrelatedwiththeimplementationof a Building Energy Management System (BEMS). The following are the ones thatshould be considered into this group: For instance, defining the bestmechanism/process to choose the BEMS system that fits perfectly considering thebuilding’scharacteristics,andchoosingthebestproviderregardingthepreviousprocessthustheequipmentandinstallation.Normally,atenderingprocessshouldtakeplace,choosingbetweendifferentoptions.However,insomecasesthisprocesshasonlyoneoption.InthecaseofBibliotecaLesCorts,apublicbuilding,thechosenorganizationtomanagetheBEMSsystemisthemunicipality’sownenergeticagency.Finally,theactivitiesofmonitoring,managingandcontrollingenergyconsumptions;thesupervisionofthesystem,todetectanysecurityorhealthissuesthatshouldbesolved,and supervising the engineering / technical aspects of the installed system as well(maintenanceactivities).KeyPartners
ThetwomainpartnersinvolvedintherefurbishmentofCal’AlierfromthepointofviewofownershipandexploitationofthebuildingareAjuntamentdeBarcelonaandCISCOrespectively (the Barcelona Institute of Technology (BIT) will have its headquarterslocatedinCal’Alier.InthecaseofthelibraryLesCorts,alsoaPPP,thekeypartnersarethe public administration funding the investment through BIMSA, a municipalinstrumentformanaginginvestmentsinmunicipalinfrastructures,andtheownerofthebuilding,alsothemunicipalitythroughDistricteLesCorts.That being said, the implementation of all the measures incorporated within theseprojects,impliestheparticipationofthird-partyagentsandsubcontractedcompanies.
30
Those are constructing and installing companies but technology providers. For themonitoring and control part, the company in charge to do this job has yet to bedeterminedbutisexpectedthatthemaintenancepersonnelwillbeincharge,learninghowtocontrolandmonitorthedatacollected.TheBarcelonaEnergyAgencywillreceivethedatacollectedaswellbutwithouthavingtocontrolthedata itself.Thesoftwareneededtocontrolandmonitorthedata,isprovidedbyaprivatecompany.KeyResources
Thebuildingsitselfarethemainresource,butbesidesthiskeyelement,forCal’Alieraprojectthisbig,hastocountwithstrongfinancialresources.Inthisrespect,thefinancialresourcescomefromthemunicipalityofBarcelona,assumingaround70percentofthetotalcostbeingCISCOtheprivatecompanypayingtheremainingcostsofconstructionandhabilitationofthebuildingtooperateproperly.Thefinancialresourcesareequallyimportantforthecaseofthelibrary,alsocountingonpublicadministrationstofundingit.
Otherresourcesthatshouldbepointedoutarethetechnologicalresources,forinstancethe software needed to implement the BEMS measure. Having a Smart EnergyManagementSystemallowsoptimizingconsumptionandforecastingthefuturebuildingenergyconsumption.ICT(InformationandCommunicationsTechnology)managementhelpssavingenergyandreducingcarbonemissionsbyshowcasingthedevelopmentandreplicationofsmartcities’solutionsforlowenergydistricts.
Consideringonlytheconstruction,theequipmentandmaterialsarecrucial.Thesamehappenswhenweconsidertheefficientlightingsystem,anefficientlightbulbsandLEDsaremandatory.Finally,highlight the importanceofhavingadequatepersonnel, fromthepublicadministrationtothesubcontractedcompanies inchargeoftheexecutionphaseoftheproject.Attheend,aLEEDcertificationshouldbeachieved,provingallthemeasurescarriedout.
CustomerRelationships
(1) Architects specialized on industrial refurbishment areas and professionalsspecializedinurbanism,workingjointlywiththecustomer,andadaptingeachstageoftheprojectandtheprocedurestothecustomer.Sincethemeasuresareappliedinadifferentmannerforeachbuilding(takingintoaccountthedifferentfactors including orientation, geography, and the city context), the industrialpartner implementing the measure, has to consider a dedicated customerrelationshipforeachcustomer.
(2) Relationshipswithpublicadministrations.(3) ConsideringtheGrowSmarterproject,anditsimpact,asachanneltopublicize
theproject.(4) Throughworkshopstodescribethebuildings’characteristicsonceoperative.
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Channels
Themainchannelsarethefacilitiesitselfwhichincorporatesalltheavailabletechnologytopromotetheconceptofnetzeroenergybuildings(NZEB).Toreachthat,thebuildingsusesadvancedinfrastructuresrelatedtoInformationandCommunicationTechnologies(ICT)andadvancedcontroloffacilities.BothbuildingscanbecomeashowroomaboutthepotentialofnewtechnologiesandICTonenergyconsumptionandthereforcarbonemissionsreduction.Thebuildingsitselfwillbeusedasshowroomsforfuturedevelopments.Screensinsidebothbuildings,displayingenergymonitoringdatawithinformationalpurposesaregoingtobeinstalled.Pressandmediaarealsoconsideredwhenlistingthechannelsused.Inthecaseofthe library, thechanneltowardspublicorganizations isbasedon internalmeetingsamongpublicbodiesofthecity.Andtowardstheusersofthelibrary,internettoolssuchase-mailsarethemainchannelwhenitcomestoinformthem.Theprojectsshowpracticallythepotentialofusingparticulartechnologiesinabuildingrefurbishment to achieve energy consumption reduction. That becomes the bestmarketingstrategytoshowthebenefitsofinstallingthosesolutionsandsellingthemtonew customers. These are benchmark projects in the field of public and privatecooperationthatcanbereplicatedinotherareasofthecityofBarcelonaandothercitiesaroundtheworld.Inthisregard,agoodcommunicationstrategycanbeusefultoreachthosecitieswillingtoregenerateadistrictorthosecompanieswillingtousethemostadvancedtechnologiestoreduceenergyconsumption.RevenueStreams
WhileCa l’Alierdonotgeneratedirectrevenuestreamsas itwillbedevotedtohostcompanies’ R + D activities, the PPP framework used for the refurbishment of thebuildinganditscomprehendedtechnologies,generateimportantbenefitsforboththepublicandtheprivatesector.Forthefirstactor,intheformofpositiveexternalities,forthecitizens(thebenefitsofhavingasmarthubandapubliclibrary)andforthecityitselfintermsofusingtheseprojectsasashowroomforfutureonesandthereductionofpollutiongeneratedbythebuildings,asdescribedbefore.Fromthepointofviewoftheprivatefirms,inthecaseofCal’Alier,therewillbepositivebenefits,reducingenergycostssopotentiallyincreasingtheprofits.Arevenuestreamforthemisthefreerentalobtained by the private stakeholder in the PPP in exchange of participating in theinvestment.ForthepublicstakeholderofthePPP,therewillberevenuesfromrentingoutofficeswithinthebuildingtostart-ups.CostsStructure
All the costs generated throughout the project of Ca l’Alier have to be considered.Mainly,themostimportantcostsarethefinancialones,thecostsofaninvestmenttorefurbishan industrialbuilding, itsconstruction(procurementofmaterials…)andthe
32
equipment required tooperate thesite, including thesoftwareneeded tobecomeabuildingenergeticallymanagedandcontrolled.Itisnecessarytoreckononanimportantfinancialmuscletocompletethisorasimilarproject.Othercosts,arguablysecondaryones,are those relatedwith themanagingandcontrolof thebuilding, including thepersonnelandhumancapital,thecommercialcosts,themaintenanceandenergycosts(ifincluded).Also,thepaymentforthedistrictheatingandcooling(DHC)network.Thecostsstructureofthelibraryissimilartootherrefurbishmentprojectsincludedinthisdocument.Thereareinherentcostswhichappearsincetheideationoftheprojectandthetechnicalstudyofthebuildingwheresomemeasuresmaybeapplied.Thistypeofcosts,typicallyfixedones,alsoincludethecostsfornegotiatingthecontracts.Otherfixedcostswhenexecutingtheprojectaretheonesderivedfromtheconstructionandinstallationprocess.Thecostsoftheequipment,salaries,legalizationprocessand,sincethis is a public building with many kind of externalities and a local forum for theneighborhood,thecoststhatinevitablycouldappearduringtheparticipatoryprocesswiththecommunity.
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Barcelona.EfficientandSmartClimateShellandEquipmentRefurbishment
project(publicresidentialbuilding)
IndustrialPartners:IREC&BarcelonaCityCouncilMeasures:1.0;1.1.10.1Shortdescription:Themunicipalityimplementssimultaneouslytherequiredstructuralrenovation of a municipality-owned social housing building (Big Blue, Passeig SantaColoma),andtheenergyretrofittingofsuchbuilding(renovatesabuilding,viapassiveenergyefficiencymeasures)toachieveanincreaseofboththesecurityandtheoverallenergyefficiencyofthebuilding.Thisleadstoan,increaseoftheindoorcomfortandgeneratingmonetarysavingsfortheresidents(Socialhousing).
KeyPartners KeyActivitiesValue
PropositionsCustomer
RelationshipsCustomerSegments
(1)TheHousingAgencyofBarcelona(2)Tenantsassociation(3)Privatecompanies:constructioncompany,engineeringcompany,monitoring
systemprovider
(1)Façaderetrofittingworksandblindsreplacement
(2)Energyconsumptionandindoortemperature
monitoringof5dwellings
Retrofitthebuildingexternalinsulationand
replacetheblindstoprotectindoor
spacesfromweather
conditionsandincreasesecurityandcomfortwhilereducing
energyconsumptionandCO2emissionsin
thecity
(1)meetingsbetweenowner(Housing
AgencyofBarcelona)andrepresentativepersonsfromthetenantsassociation(2)meetingswithall
theinterestedneighbors
(1)Publicsector:
Otherpublichousing
administrationbodies
(2)Privatesector:
Tenantsofsocialhousing
KeyResources Channels
(1)PersonnelfromHousingAgencyofBarcelona
(2)SENTILOpublicdatabaseforbuildingoperation's
follow-up(3)FinancialresourcesfromBarcelonaMunicipality
(annualbudget)
(1)Thebuildingitselfwillbeusedasa
showroomforfuturedevelopments.Dissemination
activities(2)Phonecalls,e-mail,concertedinterviews,signs/postersonthe
buildingCostStructure RevenueStreams
(1)Hardwarerelatedcosts:materialsanddevicesfortheinsulationandthemonitoring
equipment(2)Personnelrelatedcost:installationofthe
materialsandmonitoringsystemsandpersonnelforcommunicationwithresidents
(1)Rentalspaidbythetenants(2)Theretrofittingworksshouldleadtoareductioninthehouseholds'electricityandnaturalgasconsumption(thisisnotarevenuefortheBarcelonaMunicipalitybutforthe
tenants)(3)Non-monetaryrevenue:increasethermalcomfortand
reducenoiseforthetenants
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CustomerSegments
Due to the nature of the project, the measures applied on this building could beimplementedinotherbuildingswiththesametypeofrefurbishmentneeds.Theprojectcould be attractive to some building’s owners andmanagerswilling to increase theefficiencylevelsoftheirbuildingsintermsofsustainabilityandenergyconsumption.ValuePropositions
Themainvaluepropositionconsistsinincreasingtheindoorcomfortofthetenantsinthebuildingwhilereducingtheenergycostsforthem.Thisisdonethroughincreasingthelevelsofefficiencybyimplementingsomepassiveenergyefficiencymeasures(i.e.thermalinsulationofthefaçadeandreplacementofblinds).Thisvaluepropositionhasanimportancethatcouldexplainthereasonofaninvestmentlikethat,sincethetypeofresidentsinthebuildingcomefromalow-incomestratumofthecity.
Othervaluepropositionsthatshouldbementioned,andappearaspositiveexternalities,are the increasing of property’s value and the benefits in terms of less pollutiongeneratedbythebuildingfavoringtheneighborhoodandthecommunitieslivinginthesurroundings.KeyActivities
Comparedwithotherprojectsincorporatedinthisdocument,BigBlue’s(PasseigSantaColoma)isolationofthefacadeandtheblindsreplacement,representsaminorprojectintermsofnumberofmeasuresimplementedbutabiggeroneintermsofnumberofdwellings affected, over 200. All of these measures are considered passive energyefficiency measures. The monitoring of the energy consumption and indoortemperaturein5dwellingsisalsoakeyactivitytobeabletofollow-uptheimpactoftheenergyretrofittingmeasure.Todrawarightpathforthesemeasurestobeimplemented,akeyactivityofaprojectlikethat,isthetechnicalevaluation.Ifthattechnicalevaluationplancertifiesandagreesthatsuchmeasuresarethecorrectones,andthatcanbeimplemented,apublicbiddingprocess,hastobeconsideredasaKeyactivity.Ifthereisanagreementbetweentheparts involved in the project, the construction / installing phase and maintenanceactivitiesaretheonesthatwillfollow.KeyPartners
The Barcelona city council through its Social Housing Institute is the publicadministration in charge of funding the project. Besides the contracting party, thecompanies contracted to execute the project, are also key partners, these are theconstructorcompanyinchargeofinstallingthethermalinsulationofthefaçadeandthecompanyreplacingtheblinds.Themonitoringequipmentinstallerisalsoakeypartner.
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Obviously,mentiononeofthemostimportantparticipantsinthisproject,whichistheneighbor’scommunity,thepeoplewhoresideinthebuilding.
CustomerRelationships
PatronatMunicipal de l’Habitatge (Social Housing Institute) and the municipality ofBarcelona schedules meetings with the tenants association and all the interestedneighbors of the building and also has a “business-client relationship” with thecompaniesinvolvedintheimplementationofthemeasures.KeyResources
Financial Resources (via public institutions); Intellectual Resources: patents andtechnologies used to implement the measures; human resources: form the peopleworking in the construction to the peoplemanaging or investigating the technologyneeded to be implemented in the project. Also, important to take into account thephysicalassetssuchasthebuilding,theconstructionmaterials,theequipment,andthelogisticsinfrastructure,instancethestoragespaceofsaidmaterial.
Channels
Thechannelsusedtogainmorecustomersforaprojectwiththesecharacteristics,willdependonthecompanywillingtoselltheservicesregardingtheimplementationofthemeasures.Typically,foracompanyspecializedinthoseactivities,awaytointeractwiththecustomers,isdirectlysellingtonewcustomers.Othermethodologyarethepublictendersincaseofpublicadministrations/publicproperties,orprivateonesincaseofprivateentities.Salesthroughequipmentmanufacturers/distributorssothattheyrefertheircustomerstotheindustrialcompanyincasetheyareinterestedintheinstallationoftheisolatingmaterialsontothefaçadeorreplacingtheblinds.
RevenueStreams
Thepartsadmitted that financially,as it is thought, thisprojecthasnosustainabilityfromthepointofviewofthe investor,northeconstructioncompany.However, it issustained by the positive social externalities justifying the public investment that isbeingmadebytheadministrations.Inthisregard,theprojectcouldreachsustainability,alsofortheinstitutioninvestinginthosemeasures,byincreasingtherentalpricesforliving in the building. As has been highlighted, the tenants will capture the savingsachieved thanks to the facade renewal and blinds replacement, assuming, the citycouncil, all thecostsof it. The tenantswill continuepaying the sameamount to thebuilding owner, but capturing the value created, seeing how the energy costs are
36
reducedthankstotheinvestmentmadebyothers(MunicipalityofBarcelonainthecaseoftheBigBlueproject).
Additionally,thereexistanotherbusinessmodelsofPublic-Privatepartnershipthatcanincentivize energy refurbishment in the residential sector in which the EnergyServiceCompany(ESCO)guaranteestheenergysavingsandassumesthemaintenancecosts.InthiscasetheownersofthebuildingpaytheinvestmentinmonthlyinstallmentsduringtheESCOcontract.
CostStructure
Themaincostsarethosederivedfromtheinstallationandconstructingprocess.Notethatthe installationcosts,also includethecostsoftheequipment. Inthissense,theinvestment costs are very important.Other costs, suchasmaintaining themeasuresimplementedarenoteworthy.AspecificcostforthismeasureisthepersonnelcostoftheSocialHousingInstituteforthecommunicationwithresidents(criticalfactorforthiskindofmeasure).
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Cologne.Climateshellrefurbishment(LowEnergyDistricts)
Measure:1.1IndustrialPartners:DewogShortdescription:Buildingrefurbishmentprojectconsistingoftheimplementationofenergyefficiencymeasureswiththeaimofreducingenergycostsandtheharmfulimpactontheenvironment.By refurbishing the building (thermal insulation measures), and installing new andconnecteddevicesincludingaself-regulatingdecentralizedenergymanagementsystem(tomonitor the electricity and heat production), itwill be possible tomake amoreefficientenergyusereducinggreenhouseemissionsandtheconsumptionofprimaryenergy.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships
CustomerSegments
Industrialpartners:DewogTechnicalpartner:RheinEnergie
Technologyproviders(DEWOG),virtualpowerplant
(RheinEnergie),privatesectorandbuildingowners;publicauthoritiestoincentivize
collaboration.Cologne:DEWOG,providingthebuildingsandRheinEnergieprovidingthe
technology
decentralizedmanagement
system(installedineachbuilding)tomonitortheelectricityandheatproductionthroughthe
sensorsavailableinthebuilding
isolationofthebuilding,to
reduceenergyconsumption
Owners’communitiesorcompanies.Thecommunicationbetweenindustrypartnersandthetenantsstartedin
ordertoprovidethepossibilityofco-creationwiththe
tenants.
(1)Privatesector:
a.Housingbuildings
b.Corporatebuildings
c.Mallsandstores
(2)Publicadministration:a.Internaluse:Publicbuildings(CityCouncilsbuildings,
publiclibraries,hospitals,etc.)b.Externaluse:publichousing
KeyResources Channels
Constructionmaterials;financialresources,human
resources,technology
realestatecompanies,architectsandconstructioncompanies
CostStructure RevenueStreams- Hardwarerelatedcosts:façade,roofand
ceilinginsulationproducts,tripleglazedwindows,highefficiencycirculationpumps,liftswithenergyrecovery,LEDlamps,buildingdevices(PLC),and
photovoltaicpanels
Modernizetheinfrastructureimpliesareductioninenergycosts,generatingsavings.Theenergyproviderchargesaperiodicfeeforimplementingthemeasure,
plusthecostofenergy.- Softwarerelatedcosts:self-regulatingdecentralizedenergymanagementsystemforeach
building
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Customersegments
• Privatesector:a. Housingbuildingsb. Corporatebuildingsc. Mallsandstores
• Publicadministration:a. Internal use: Public buildings (City Councils buildings, public libraries,
hospitals,etc.)b. Externaluse:publichousing
Anykindofbuildingfulfillingthetechnicalrequirementsforbeingsubjectofthistypeofrefurbishmentprojects
Valuepropositions
Thevaluepropositionoftheprojectistoimprovetheisolationofthebuilding,makeamoreefficientuseofenergy,andinstalldevicestoreduceenergyconsumptionthatwilllead toa reduction in theenergy consumptionpotentially reducingenergybills. Themonitoring of the electricity and heat production will additionally add value to theserviceprovidedbytheenergycompany.Additionalvaluecanbeobtainedatsociallevelwiththereductionofgreenhousegasemissions.Channels
Thesolutionisofferedbyrealestatecompanies(innewdevelopments)orarchitectsand construction companies (in brownfield projects) as an added value to finalcustomers (either households or companies) to reduce their energy bills, improveservice,increasewellbeingoradoptanenvironmentallyfriendlyapproachintheenergyuse.Customerrelationship
Businessmodelshouldbeorientedattargetingrealestatecompanies,constructionorarchitectstooffersolutionstotheircostumers(finalusers)suchasowners’communitiesorcompanies.Thetenantscanrequesttheownerstoapplymeasurestomakeamoreefficientuseoftheenergy,leadingtoareductionintheenergyuse.Revenuestreams
Thesolutionshouldleadtoareductioninenergycostsforfinalusers.Thesavingsforcustomersderivedfromthereductionintheenergyconsumptionshouldpay-offfortheadditionalcostthefinalcustomersshouldfacetomodernizetheinfrastructure.Theup-front payment can be however burdensome for some households that without thesupportoftheadministrationwillnotbeabletofaceit.Publicadministrationsshouldencouragefinalcustomerstoimplementthesemeasuresthroughsubventionstoreachtheclimateobjectivesthatshouldbefulfilledbefore2025.
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Keyresources
Thekeyelementsoftheprojectcanbeseparatedintwoareas:(1) Improvementsinbuildinginsulationwillreducetheenergywastebykeepingthe
energywithinthebuildings(2) Modernize the energetic infrastructures by using LED lights and photovoltaic
panelsanduseadecentralizedmanagementsystemtomakethemostefficientuseoftheenergy.
Thefirstoneproposestoovercomethisproblemtheimprovementintheinsulationofthe building (facade, basement ceiling and roof) and installation of triple glazedwindows.Thesecondkeyresourceistheusethemostadvancetechnologytoefficientlyuse the energy (LED lighting ormodern –heat pumps) and a system tomonitor theelectricityandheatproductionthatwillbeconnectedtothe“virtualpowerplant”oftheutility.Keyactivities
Thekeyactivitiesarerelatedtothedecentralizedmanagementsystem(installedineachbuilding)tomonitortheelectricityandheatproductionthroughthesensorsavailableinthe building. For this reason, the previous implementation to a centralized heatingsysteminthebuildings,isakeyactivity,becauseisessentialtoenablethemeasurementofheatproductionforeachbuilding.Thedataisobtainedwiththeprogrammablelogiccontroller (PLC) installed in the building, which collects data using sensors with thepurposeofusingenergyaccordingtotherequirements.Keypartnerships
Theprojectrequiresthecollaborationofdifferentstakeholders:technologyproviders(RheinEnergie) and the buildings (DEWOG); also public authorities to incentivizecollaborationbetweenprivate sector. In this regard, Public-Private partnerships areconvenient.Coststructure
Hardware related costs: façade, roof and ceiling insulation products, triple glazedwindows,highefficiencycirculationpumps;liftswithenergyrecoverytechnology,LEDlamps,heatpumps;PLCdevicesandphotovoltaicpanels.External costs (Software related costs -RheinEnergy-): self-regulating decentralizedenergymanagementsystemforeachbuilding.Implementation(subcontractedcompanies)andpersonnelcosts(salaries).
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Stockholm.ASmartVentilationControl
Measure:1.1.6Mainindustrialpartner:L&TThismeasureconsistsinimplementingaventilationcontrolsystemwithefficientheatrecoveryforachieveamorestableenvironmentintermsofcomfortability.
CustomerSegments
Thepotentialcustomerscouldbetheresidentswithsomedifficultiesinkeepingtheheatinside their residence. For customerswith some insulatingdeficiencies andneed forrefurbishingthebuildingortheapartment.Thismeasurecanbeincludedinsomemajorrefurbishmentprojects,whichinvolvetheimplementationofothermeasures,includingasmartventilationcontrol.Butweconsidertodescribeitseparatelybecauseitcanbeimplementedapartfromothermeasuresonplaceswiththisveryspecificneeds.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships CustomerSegments
Companiesthatarespecializedininstallingmeters
1.Detectionofseparategarageventilation
systems2.InvestigateneedforcomplementarycontrolsuchasPPM,moisture,presenceonexisting
system.3.Installationofnew
optionalcontrolsystemaddedtotheexisting
one.
Fortheowner:Lessenergy
usedforheatingofgarage
(kitchen…otherroomscanbe
studied)
Fortenants:Morestableclimate
Forusall:LessCO2footprint
OnebyOneMarketing&PublicityPublic
Procurement
1.Everyexistinggaragewitha
separateventilationsystem
2.Ownedbyallkindofpropertyowner
KeyResources Channels1.Humanresourcesfor
installation.2.Softwareand
hardwareforadaptivecontrol
B2BB2C
CostStructure RevenueStreamsFixedCosts:
1.Installationcostcoveredbyhouseowner.
2.SupervisionnormallyNOTneeded.Variablecost:
1.Installationcost2.Marketingandcommunicationto
personsmakingdecision
Costreductioninenergyusedgoesdirectlytopropertyowner.
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Keyactivities
Technicalstudiesfordeterminingtheweakpointsintermsofheatlossandfromwheretheheatshouldbeextracted,andtherefore,howtoimplementthemeasure.Otherkeyactivitiesincludetheagreementwiththedifferentpartnersandtheresidents.ValueProposition
For theowner:Lessenergyused forheatingofgarage (kitchen…other roomscanbestudied).Fortenants:Morestableclimate.Forusall:LessCO2footprint.KeyResources
FinancialResourcesHumanresourcesPhysical/intellectualresources:equipmentandtechnology(licensesandpatents).KeyPartners
Theenergyproviderforofferingthissolutiontoitscustomers.Thetechnologyprovider,forsellingthistechnologytotheenergyprovider(incaseitisnotthesamecompany),the residents, the company in charge of installing the measure and/or technicallyanalyzingthebuilding.CustomerRelationship
Directly to the customer, providing specialized attention, the same as the valuepropositiondelivered.Channels
It can be addressed from business to Business companies. For instance, a companyofferingasmartventilationcontroltoenergycompaniesfortheirrespectivecustomers.Orontheotherhand,frombusinesstofinalcustomers,forexampleanenergycompanyoffering the implementation of energy efficiencymeasures, including this one, to abuilding.Finally,thetechnologyproviderofferingitdirectlytoacustomer.RevenueStreams
Costreductioninusedenergygoesdirectlytopropertyowner.Coststructure
FixedCosts: 1.Installationcostcoveredbyhouseowner.2.SupervisionnormallyNOTneeded.
Variablecost:1.Installationcost2. Marketing and communication to people involved in the making-
decisionprocessofimplementingthemeasure.
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Stockholm.AnEnergyQualityAssurance
Industrialpartners:L&TMeasures:1.1.7Short description: By appointing and Energy Coordinator to follow the buildingconstructionorrefurbishment,energysavingscanbeachievedbyavoidingerrorsanddelaysresultofstaffchanges.Errorsduringplanningandconstructioncanresultin10-20%extraenergyconsumption.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
EnergyCoordinator,theProjectManager(Constructioncompany)
Detailedplanabouttheexpectedenergysavingsandkeyareastotackletheenergywasting;acommonworkingschedulewiththe
projectmanagerandtheenergycoordinator
ToofferanadvisoryservicetothesiteProject
Managertoensurethattherighttechniquesareusedduringthebuildingprocess
constructioncompaniesandengineeringcompanies Privatesector:
a.Constructioncompanies
b.Engineeringcompanies
KeyResources Channelsaprofessionalandexperiencedfirminenergyconsumptions ProjectManager
&theHubgrade-EnergySaving
CentrecommunicationplanbetweenthefirmandtheProjectManager
CostStructure RevenueStreams
Personnelrelatedcosts:EnergyCoordinatorsalary
doesnotdirectlygeneraterevenuestreams,butitshouldallowforareductionaround10–20%oftheenergyconsumption
costsduringtheconstructionperiod Customersegments
Privatesector:• Constructioncompanies• Engineeringcompanies
Energysavingsthatreduceconstructioncostsandincreasecompanies’competitivenessoralternativelyincreasefirms’margins.Valuepropositions
ThevaluepropositionofthesolutionisofferinganadvisoryservicetothesiteProjectManagertoensurethattherighttechniquesareusedduringthebuildingprocessfromitsplanningtoitsimplementationphasefocusingonenergysavings.
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Channels
TheEnergyCoordinatorshouldworkcloselywiththeProjectManageralongthebuildingprocess to implement the energy savingmeasures alongside theHubgrade - EnergySavingCentreensuringthatthecalculatedenergyusematchesactualconsumption.Customerrelationship
Thesolutionshouldtargetconstructioncompaniesandengineeringcompaniesthatcancapturethevaluederivedfromenergysavingsduringtheconstructionprocess.Revenuestreams
Thesolutionproposeddoesnotdirectlygeneraterevenuestreamsbutitshouldallowfor a reduction around 10 – 20 % of the energy consumption costs during theconstructionperiodthatcanbecapturedbytheconstructingfirm.Keyresources
Thekeyissueisappointingasenergyadvisoraprofessionalandexperiencedfirmthatbringstotheprojectinnovativeideastominimizetheenergyconsumptions.Itisalsorequired a good communication plan with the Project Manager to successfullycoordinate themeasures to reduceenergy consumptionwhile not interfering in theconstructionprocesspath.Keyactivities
Theinitialstageshouldincludeadetailedplanabouttheexpectedenergysavingsduringthe process and the key areas to tackle the problemof energywasting. The EnergyCoordinatorshouldalsoensurethatinstalledproductsareindividuallytestedinordertoensurethattheyareoperatingefficiently.ProjectManagerandEnergyCoordinatorshouldhaveafluentcommunicationwithahighdegreeofinformationsharinganddesignacommonworkingschedule.Keypartnerships
The task of the Energy Coordinator consists on working together with the ProjectManagertoreducethewasteofenergythatshouldfinallyresultincostsavingsfortheconstruction company. A good design of the incentives structure should result in asuccessfulcooperation.Coststructure
Personnel related costs: Energy Coordinator salary that includes planning andmonitoring.
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PRICING:EnergyCoordinatorfeedshouldhaveafixedpayandvariablepayaccordingtotheenergysavingsachievedintheproject.
45
Stockholm.Energyefficientrefurbishmentprojectinresidentialbuildings
Measure:1.1(1.1.3;1.1.4;1.1.5)IndustrialPartner:SkanskaProjectconsistinginimplementingaseriesofenergyefficiencymeasuresandahomeenergymanagementsystemtoincreasetheoverallconsumptionlevelsofthebuildings
(VallaTorg)andcapturesavingsforthepeoplelivinginit.
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
Constructioncompanies;technologyproviders,
energysuppliers,managingandmonitoringcompanies,
residents,publicadministrations
(Dependingonthemeasure).Ina
nutshell:previousmeasures,
constructionworks,coordination,
measurementandmonitor;getting
approvalsfromthetenantsanddwelling
owners.
Forthepeoplelivinginthebuilding:
lowerenergycosts,morecomfortabilityFortheowner:high
propertyvalueForthe
environment:lowercontaminantemissions.Forthecity:
implementationofmeasures,whichbenefitsthe
neighborhood,andcouldserveasamodelforfuture
projects.Fortheindustrial
partners:promotingtheirvalue
propositionsandmakingthemfinancially
sustainableinthelongterm(iftheywerenotalready)
Insomecases,usingcorporatewebpages,
staffexclusivelydedicatedtothe
client.Forinstance:involvingacustomerrepresentativetothe
residents.//B2BandB2C
Nospecialcustomersegments,but
alwaystopeople(owners/managers/
municipalities/companies)willing
toimplementenergyefficiencymeasures,andimprovethe
sustainabilitylevelsofabuilding.Alsodifferentactorswithsocialandenvironmentalawareness.
KeyResources ChannelsFinancialResources:importantfixedcosts
becausetheequipmentrequiredandtheconstruction
works;HumanResources:important
amountofjobscreatedduringtheimplementation.Physicalresources:
materialandequipment.Intellectual
resources:highaddedvalueinsomemeasureswith
importantamountoftechnologyfactor.
Dependingonthemeasureandtheindustrialpartner
(somemeasuresaredeliveredthroughtheimplementationof
differenttechnologies,othersbyofferingfacetofaceservices…).In
somecases,corporatewebpagesserveasachannel
duringtheimplementation
stagesorinanafter-salesituation.
CostStructure RevenueStreams
Priortheimplementation:technicalstudiesandsalariesDuringtheimplementation:constructioncostsandimplementation(equipment+technology+salaries)
Aftertheimplementation:maintenancecostsandmonitoringservices
Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthe
pointofviewofthebuilding’susers(residents…)therearenoincrementalcostsbecauseoftheproject.Onthecontrary,the
userscapturethesavings.
46
Industrialpartner: Skanska (theproject is linkedwith the constructionconsolidationcentre(solution2)andwiththeHubgrade(L&T)andtheActivehouse(Fortum)(solution3).CustomerSegments
ThemeasuresimplementedinVallaTorgBuildingscanbeappliedinotherbuildingsnotnecessarily of the residential type. However, there are some specific measures,particularlythehomeenergymanagementsystem,whichfitsinabetterinbuildingofthe residential type (condominiums) since the building is strictly divided in differentunits or habitable departments where common areas are reduced to only theindispensableones.Thatbeingsaid,similarsystemscanbeapplied,maybenotfocusinginasinglehabitableunitbutmorewiththebuildingasawhole.ThebuildingenergymanagementssystemsorBEMSarethesetypeofsolutions.The selling companiesoffering these services canbeeitherenergy companies, to itscustomers,orconstructioncompanies,technologicalcompaniesofferingitssolutionstoenergycompaniesorotherindustriesthatcoulddemandthistypeofmeasures.Valueproposition
Forthepeoplelivinginthebuilding:lowerenergycosts,morecomfortability.Fortheowner:highpropertyvalueFortheenvironment:lowercontaminantemissions.Forthecity:implementationofmeasures,whichbenefitstheneighborhood,andcouldserveasamodelforfutureprojects.For the industrial partners: promoting their value propositions and making themfinancially sustainable in the long term (if they were not already). The measure 2(described in the following section) should help to increase their efficiency whenimplementingthemeasures.KeyActivities
One of themost important key activities of a project of this typology, as has beenhighlightedinotherbusinessmodels,isthemandatorytechnicalanalysisforensuringwhatarethemostoptimalmeasurestoimplementandwhatisthebestwayfordoingit.Forinstance,somepreviousunrecognizedheatlosseshaveproventocomefromaninefficienthotwatercirculation.Theimplementationitself,theconstructionworks,andtheinstallationproceduresarealso an obvious key activity. The same applies when it comes to ensure the funds,necessarytopermittoacquiretheequipmentfortheprojectandpayingsalaries.
47
KeyPartners
Keypartnersaretheconstructioncompanies,theenergycompanies,thesubcontractedcompanies,technologyproviders,engineers,andthedifferentparticipantsofthecity;neighborsandtheresidents.KeyResources
FinancialResourcesHuman Resources: during all the phases of implementation (study, installation,measurements).Physicalandintellectualresources:equipmentandtechnologyCustomerRelationships
Insomecases,usingcorporatewebpages,staffexclusivelydedicatedtotheclient.Forinstance:involvingacustomerrepresentativetotheresidents.Channels
Dependingon themeasureand the industrialpartner (somemeasuresaredeliveredthroughtheimplementationofdifferenttechnologies,othersbyofferingfacetofaceservices…). In some cases, corporate webpages serve as a channel during theimplementationstagesorinanafter-salesituation.RevenueStreams
Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthepointofviewofthebuilding’susers(residents…)there are no incremental costs because of the project. On the contrary, the userscapturethesavings.CostStructure
Priortheimplementation:technicalstudiesandsalaries.During the implementation: construction costs and implementation (equipment +technology+salaries).Aftertheimplementation:maintenancecostsandmonitoringservices.
48
Stockholm. Slakthusarea refurbishment plan including air tightness tests.
(Tertiary-cityownedbuildings)
Measures:1.1(1.1.5,1.1.8)Projectdefinedbytheimplementationofactiveandpassiveenergyefficiencymeasures,an energy saving center and other sub-measures with the purpose of reducing theconsumptionsandcostsandatthesametimelowerthecontaminantemissionsfromthebuilding.ThisprojectwillservetodescribetheStockholm’sGrowSmartermeasureregardingtheAirtightnessmeasurementtests.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships CustomerSegments
BuildingcompanyArchitects
Energyconsultant
Puttingseparatefloor,separateapartmentsorthewholehouseundercontrolledoverpressureinordertodetectanyunwantedleakageinwall,aroundwindows
etc.
Forthebuildingcompany:To
achievetheoreticalvaluesforenergy
consumption
Fortheowner:Lessenergyusedforheatingof
building.
Fortenants:Lowerenergycost,more
stableindoorclimate
Forusall:LessCO2footprint
OnebyOneMarketing&Publicity
1.Everyexistingbuildingusingitsown
centralheatingsystem
2.Ownedbyallkindofpropertyowner
KeyResources Channels
1.Equipmenttothoroughlysealselected
space.2.Equipmenttoachieve
overpressure.3.Thermographiccameratovisualizetemperature
drop,e.g.aroundwindows
B2BB2C
CostStructure RevenueStreams
FixedCosts:1.Technicalequipment
Variablecost:1.Installationcostdependingonselected
area.2.Salaries&Laborcost
3.Marketingandcommunication
1.Moreefficientinspectionafterfinishingbuildingprocess
2.Fulfillmentoftheoreticalvalues
3.Costreductionin€(kWhandkW)goesdirecttopropertyowner.
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CustomerSegments
Thepotentialcustomersarethedifferentownershipswillingtoimplementthistypeofmeasurestoitsbuildingsordwellings.ThesolutionregardingtheimplementationofPV,isthoughtforrefurbishmentprojectsofentirebuildings,sopotentialcustomersshouldrepresentabuildingorawholecommunity.Inparticular,forStockholm,thesolutionisgoingtobeimplementedinpublicownedbuildings,firsttwohistoriconesandlater,duetobudgetrestrictions,toothertwobuildingsmeetingthetechnicalrequirementsforbeing refurbished. The type of ownership or purpose of the building should notdeterminewhether a building represents a potential customer or not, however, theimplementationofthissolutioninthislighthousecity,isdesignedunderaPublic-Privatepartnershipframework.KeyActivities
Tomakepreviousstudiesofthearea.(ThiswasprovedtobeimportanttodeterminethattherewasenoughwasteheatfromthenearbySportsarenaandaDataCentertoheatupthetwobuildingsinvolvedinthisproject.Otherpreviousstudiesarerequiredtodeterminethebestenergyefficiencymeasuresforreachingtheenergytargetsofthebuildings,consideringthatthefirstonestoberefurbishedweretwohistoricbuildingswith cultural historic value. For the actual refurbishment projects (Slakthus 8 andKylhuset)thosepreviousstudieshavetobedonetoo.Analyzingeachbuildingaspartofitssurroundingsareimportant.Themethodologythatwillbeusedforimplementingthesolutionconsistsininstallingexhaustairheatpumpsforrecoveringtheheatintheventilationexhaustair.Fordoingthat, somemechanical exhaust air ventilation and a central heating system for thebuildingtousetherecoveredenergyforheatingpurposes,includingthedomestichotwater.Otherimplementationsarealsoconsideredforthefinaltwooptionsconsideredtorefurbish, for this reason,otherkeyactivitieshavetobementioned,ensuring thesupply chain, determining the construction and implementationmethods and otheractivitiesrelatedwithinstallingactiveandpassiveenergyefficiencymeasures.ValuePropositions
Toachievecertainlevelsofenergyefficiencywhilerespectingthehistoricvalueofthebuildings when the measure was first contemplated for two 1910’s buildings.Afterwards,toprovideasolutiontotheimplementationofanadaptivecontrolsystemforheatingandventilationpurposes,heatrecoveryintheventilationsystem,utilizetheexcessofheatfromthekitchentoheathotwater(sub-measuresrelatedwiththeairtightnesscontrol),andothermeasuressuchasinstallationofPVwithbatterystorageandLEDlightingsystems.
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KeyPartners
Fortum, construction companies, energy companies, Real EstateAdministration, ThecityofStockholm,subcontractedcompaniesandproviders.KeyResources
Financialresources:forfundingtheProjectHumanResources: thenecessaryworking force for installing thesolution,engineers,managersandotherhumancapitalinvolveddirectlyorindirectly.Materialresources/equipment:implementingtheneededinfrastructure.Channels
Abouttheairtightnessmeasure,toachieveanawarenesslevelaboutwhatthismeasureisallabout,itisnecessarytostablishdifferenttypeofchannels,intermsofmarketingwithpotentialcustomers.Afundamentalpartoftheimplementation,istheevaluation,fordeterminingtheeffectsandifitiseconomicallysustainableaccordingtothesavingsachieved.Takingthisintoaccount,theimplementationitselfneedstobeeasytoinstall,formakingtheproject,moreattractiveandreduceitsopportunitycosts.Asmentionedabove,theprojectwillneedpreviousinstallations.ForotherimportantmeasuresimplementedinSlakthusarea,wereferthelectortootherBusinessmodelsoftheWorkPackage2,specificallytheBrfÅrstakrönetbuildingandtheenergysavingcenterprojectandmeasure.CustomerRelationships
Theimplementationoftheairtightnessmeasurealongwiththeothermeasures, isaproject,specificallydesignedforthebuildingswearetreatinghere.Forimplementingthesamemeasureintootherbuildings,theprojectshouldbeadjustedtothoseotherbuildings since the characteristics and circumstances change more or less on eachbuilding.Inthisregard,thecustomerrelationshiphastobeadjustedaccordingtotheindividual ownership of each building, with dedicated personal answering andcollaboratingwiththecustomer.StreamRevenues
Therevenuescomefromthesavingsgeneratedthankstotheimplementationofthesemeasures.Therefurbishmentmeasures,inaggregatedterms,haveapay-backtimesofaround 10 years, so at the end of this estimated period, the investment should becompensated;entirelyjustifyingtheinvestmentfromthefinancialpointofview.
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CostStructure
FixedCosts:1.Technicalequipment,costsofdevelopingthetechnology
Variablecost:1.Installationcostdependingonselectedarea.2.Salaries&Laborcost3.Marketingandcommunication
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Stockholm.BrfÅrstakrönetresidentialbuildings
Measures:1.1Mainindustrialpartner:L&TFMABImplementationofenergyefficiencymeasuresforoptimizeenergyconsumptionsandlowerthecontaminantemissionsofaprivatecondominium.
ThisprojectincludestheimplementationofdifferenttypeofmeasuresincludedintheWork Package 2 of the GrowSmarter Project. These measures, relate energy
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
Constructioncompanies;technologyproviders,energy
suppliers,managingandmonitoringcompanies,residents,public
administrations
(Dependingonthemeasure).Inanutshell:previousmeasures,constructionworks,
coordination,measurementand
monitor
Forthepeoplelivinginthebuilding:
lowerenergycosts,morecomfortabilityFortheowner:high
propertyvalueForthe
environment:lowercontaminantemissions.Forthecity:
implementationofmeasures,whichbenefitsthe
neighborhood,andcouldserveasamodelforfuture
projects.Fortheindustrial
partners:promotingtheirvalue
propositionsandmakingthemfinancially
sustainableinthelongterm(iftheywerenotalready)
Insomecases,usingcorporatewebpages,
staffexclusivelydedicatedtothe
client.Forinstance:involvingacustomerrepresentativetothe
residents.//B2BandB2C
Nospecialcustomersegments,but
alwaystopeople(owners/managers/
municipalities/companies)willing
toimplementenergyefficiencymeasures,andimprovethe
sustainabilitylevelsofabuilding.Also
differentactorswithsocialand
environmentalawareness.
KeyResources Channels
FinancialResources:importantfixedcostsbecausetheequipment
requiredandtheconstructionworks;HumanResources:importantamountofjobscreatedduringthe
implementation.Physicalresources:
materialandequipment.Intellectualresources:highaddedvalueinsomemeasureswithimportantamountoftechnologyfactor.
Dependingonthemeasureandtheindustrialpartner
(somemeasuresaredeliveredthroughtheimplementationof
differenttechnologies,othersbyofferingfacetofaceservices…).In
somecases,corporatewebpagesserveasachannelduringtheimplementation
stagesorinanafter-salesituation.
CostStructure RevenueStreams
Priortheimplementation:technicalstudiesandsalariesDuringtheimplementation:constructioncostsandimplementation(equipment+technology+salaries)
Aftertheimplementation:maintenancecostsandmonitoringservices.
Therearerevenuesforsomeindustrialpartnersduringtheimplementationphaseanddependingofthemeasure.Fromthe
pointofviewofthebuilding’susers(residents…)therearenoincrementalcostsbecauseoftheproject.Onthecontrary,the
userscapturethesavings.
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optimizationandbuildings through the implementationofactiveandpassiveenergyefficiencymeasures,efficientlightingsystems,aVirtualPowerPlant(EnergyHub)andaSmartHomeSystem.Keyactivities
Thekeyactivitiesconsiderallabsolutelynecessaryactivities,fortheprojecttobedone.Thisdefinitionalsoincludestheactivitiespriortotheproject,withoutwhichitwouldnotbepossible to implementall themeasures into thebuildingsweare studying intheselines.Thatbeing said,because thisprojecthas to satisfydifferent customer segmentsandmanynecessitieswithmanyvaluepropositions, the listof keyactivities is very long.Next,wewilllistallthekeyactivities,groupingthemaccordingtothemeasuresthatthisprojectincorporates.Startingwiththeactiveandpassiveenergymeasures,themostimportantactivitiesaretheimplementationofsensorsinsidethebuildinginanumberofapartmentsandalsooutsidethebuildingforweatherforecasting.The key activities involvedwithin the solution 3 can be divided between the ActiveHouseproject (Fortum) and the Energy saving center (adaptive temperature controlsystem by L&T). Starting with the first sub-measure, the key activities consider theimplementation of different type of devices, including water and electricitymeters,sensors,tabletsanddimmers.Continuing with the second sub-measure, for the implementation of the adaptivetemperaturecontrolsystem,it isrequiredtostudyindetailthecharacteristicsofthebuilding. Because this sub-measure is also implemented in other projects, themethodologyofimplementationcouldvarysubstantiallydependingonthestructureofeachbuilding.Inthissense,itisimportanttoanalyzetechnicallythestructuralelementsofthecondominium.TheenergysavingcenterusestheHubgradesolution,whichisatechnologicalinnovationprovidedbyoneoftheGrowSmarter’spartnersinStockholm,L&T.ThekeyactivitiesinvolvingthemeasureoftheVirtualPowerPlant(balancingdemandwithsupply), theactivities regarding the technicalevaluationandstudieshave tobedoneinordertoimplementthismeasure.Sincethismeasureisheavilyrelatedwiththeimplementationofothermeasure,theimplementationofPVonthebuilding,thekeyactivities about saidmeasure, are also key activities of themeasure4.1. TheVirtualPowerPlanttriestoadjustandoptimizetheenergygenerationofthesePVinstallations.Basically,itconsistsinimplementingtheEnergyHubsystem.OtherkeyactivityincludedintheprojectisthemeasureaboutEnergyQualityassuranceoftheGrowSmarterproject(L&T),whichinturnfulfillsthecoordinationnecessitiesofeveryproject, includingBRFÅrstakrönet,andservesasavalueproposition for some
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industrial partners. In the case of Stockholm projects, the industrial partner whichprovidestheenergycoordinatorservices,isL&T(werefertomeasure“EnergyQualityAssurance”).Asamatteroffact,themeasure“energysavingcenter”isstrictlyrelatedwith thismeasure,bothmeasure’svaluepropositionsconsist inmanageandcontroldifferentaspectsoftheproject.Customersegments
Thepotentialcustomersthatcouldfitinaprojectlikethisone,withalargeamountofmeasures are all those buildings (more precisely, the ownership and the peoplemanagingthefacilities),aimingto improvethe levelsofefficiency intermsofenergyconsumption,environment,financialresourcesandalsotobeafutureproofbuildingfromthepointofviewofregulations.Potentialrefurbishablebuildingsshouldmatchthetechnical requirements for having implemented the solutions that this projectrepresents.KeyResources
TheimportanceofthematerialequipmentrequiredforimplementingandinstallingtheVPPviatheEnergyHub,iscrucial.Fordoingit,isnecessaryaPowerModule,a3x5A(3.5kW) three phase, scalable bi-directional power inverter. The amount oftechnologicalresourcesisveryhigh,notonlyintermsofhardware,butalsointermsofsoftware.AsystemcalledACEisnecessarytoequalizethecurrent.Ashasbeenmentioned, the implementationof thevirtualpowerplant, followothermeasure,theinstallationofphotovoltaicpanels.Forthisreason,weconsiderthesePVsystemsanditsbatteries,askeyresources,withoutwhichitwouldnotbepossibletoimplementtheVirtualPowerPlantForactiveandpassiveenergymeasures,theequipmentandthewholeinrestructurethathastobeimplementedinthebuildingisakeyresource,inadditionofthepersonnelrequiredforthesemeasurestobeimplementedwithoutwhich,itwouldnotbepossibletomoveforwardwiththeproject.Forthemeasure“ActiveHouse”anditssub-measures,thekeyresourcesarethesamedescribedinthebusinessmodelreferringthenamed“ActiveHouse”and“energysavingcenter”.Valuepropositions
The implementation of active and passivemeasures aims to satisfy the necessity ofhavingamoresustainablebuilding,intermsofenergyconsumptionsandenvironmentalsustainability.Thiswillbenefittheresidentsofthecondominium(byreducingenergycosts and optimizing the consumptions) and also the entire community (city andneighbors), since the pollution generated by the building itself, should represent anoticeably smaller amount than that of a building without that kind of measuresimplemented.Somevaluepropositionsthatemergewiththistypeofprojects,thesame
55
happensintheothertwolighthousecities,arethepotentialincreaseoftheproperty’svalue.TheValuepropositionforhavinganenergysavingcenteristosaveenergyandreducethecostgeneratedforusingit.Byreducingthetotalamountofenergy,theenergycostsshould be reduced too. The theoretical value proposition is to manage in a muchefficientmanner,theenergeticconsumptionsandL&T’ssolutionsaimstoachievethisgoal. According to previous data, this is a reality, since the systemhas beenprovensatisfactorily in the past. The energy saving center could be analyzed in a separateBusiness Model, to describe in a more precise way, independently, this valuepropositions and the overall sustainability and methods used to implement thisparticularmeasure.With the Virtual Power Plant and the EnergyHub system, there are different valuepropositions,benefitingthepeoplelivinginthecondominium:
• Possibilitytoreducethemainfusegettingalowerfixfeeinseveralapplications• Reduceddistributionlosses• Simpleinstallation• Transparenttoexistingloads• Preventsovercurrentsfromallloadsintheinstallation.
Themostimportantistoprogramhowtousethestoredenergy(intothebatteries)toadjusttheutilizationofthisstoredenergywhenitismorebeneficialfortheresidents.Thiswilldependontheweatherconditions(thefunctionalityofthePVwilldependonthat),andalsothepriceofenergy(dependingontheaggregateddemandatacertainpoint).KeyPartnerships
The following are the key partnerships of the project: construction companies;technologyproviders,energysuppliers,managingandmonitoringcompanies,residents,andpublicadministrations.TheGrowSmarterproject,englobedunderthehorizon2020objectives,triestodeterminewhetherornotsomeoftheprojectscanbeindependentlysustainable from the public founding and the public subsidizes and other type ofdependences.Takingthisintoaccount,therefurbishmentprojectofthecondominium,canbefinanciallysustainableaslongas,inadditiontothebenefitsoftheproject,thecostsarebornebythedirectbeneficiaries.Thatisresidentsandowners.CustomerRelationships
Consideringthetypologyoftheproject,withintensiveconstructionworks,andaprojectspecifically designed for the condominium, the relationships between the industrialpartnersandthecustomer,arerecommendedtobebasedinadedicatedanddesignedto be adjusted to the customer’s necessities. This implies the existence of assistingpersonnelforattendingthecustomer.Consideringtherearemanysub-measuresbeing
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implementedinthecondominium,isimportanttorecommendamanagingauthority,coordinatingtheproject(solution1“energyqualityassurance”),andalsoinchargeofstablishingtherelationshipswiththecustomer.RevenueStreams
For the type of project like that, there are different revenue streams that can beconsidered.Dependingonthefundingsources,theimplementationofthemeasurescanbesubsidizedbythepublicadministration,supposingnoadditionalcostfortheownersofthecondominiumandthepeoplelivinginit.Incasetherearenotpublicfundingorifthereisone,donotsupposeadirectsubsidizefortheresidentsandtheownershipofthe building, the costs might be rebounded entirely by the ownership and directbeneficiariesoftheproject.Inthisregard,thecostoftheinvestmentcouldbecoveredby an increase of the rental prices, and a periodic fee to the energy company. Therevenuestreams,willalsodependonthetypeofmeasure,analyzedseparatelyfromtherestoftheproject,becauseeachmeasure,attheend,representsanindividualbusinessmodelfromthepointofviewoftheindustrialpartners.CostStructure
The cost structure of this model, focuses more in providing to the building withnumerous value propositions with high value in terms of utility for the customers(returns,savings,technology),andnotdrivingitscostsstrategyinreducingthecosts.Thiscanbeexplainedbythehighinvestmentcosts,neededforaffordingtheexpensiveequipment,technologyandtheconnectionwiththeenergysavingcenter,requiredforimplementationoftheproject.Channels
Howisthoughttoprovidethevalueproposition?Toanswerthisquestionisnecessaryto refer to the technical reportof theGrowSmarterprojectwhere specifies that thesystemgeneratesamorestableindoortemperatureandbenefitbetterfrominternalheatsourcesandheatingfromthesun.Thewayinwhichthevirtualpowerplantisgoingtowork,consistsinoptimizingthesupplyaccordingtotheenergydemand.Thevaluepropositions are going to be delivered through by specific technical teams andconstruction works carried out by subcontracted companies (construction, andengineeringfirms).Themeasuresconsistinginofferingverifyingtheconsumptionsandmonitoringsaidconsumptionbehaviorsandrelatedservices,aregoingtobeprovided,physicallyandvirtually,sinceitisnotnecessarytomonitorthedataandconsumptionfiguresbeingpresent,onsite,inthebuilding.
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Solution 2: Smart building logistics
Europe’s cities are growing and thematerials used in construction of buildings andinfrastructureaccountsforupto30-40%ofthegoodsmovedinamoderncity.Reducingunnecessary freight by consolidation will lead to improved quality of life throughreductions innoise,emissionsandtraffichazard.Thiswillalso leadtoareductionofconstructioncosts.Typically,aconsignmentismovedfourtimesbeforeitisputinplaceataconstructionsite.Anestimated25%ofconstructionlabortimeisusedforlookingforthematerialormovingmaterialbeingintheway.BuildingonpreviousexperienceCarrierwillestablishabuildinglogisticscenterwillinÅrsta,tohandlegoodsarrivingtotheconstructionsite.Constructionmaterialdeliveriesare directed to the center, where they are stored in a secure, weather-protectedenvironment,awaitingdeliverytothesitejust-in-time,usingrenewablyfueledtrucks.Hybrid-electricandethanol(ED95)truckswillbeused.Fullyloadedtruckswillreceiveafittingslot-timeinadvanceandgodirectlytotheconstructionssite.Suitablegoodswillbedelivered to thecenterby rail– savingevenmoreenergyandclimateemissions.When the Årsta area is developingwithmore construction sites, the center will bescaled-uptoservealsothese.SomespecificcontextofStockholmisneeded,mainlyabouttheplacewherecurrentlogisticcenterislocated(ifitisconvenientandwhataretheconditionsimposedbythepublicmunicipalitywhenchoosingalocation.ConclusionsregardingtheBusinessModelsrelatedtosolution2
ThissolutionisonlybeingcontemplatedforthelighthousecityofStockholm,however,itcanbereplicatedinotherplacessincethevaluepropositionscouldsatisfynecessitiesfrom all over the world regarding the optimization of the supplying chain forconstructionsites.Ithastobepointedoutthattheroleofthepublicadministrations,publicinstitutionsandregionalandmunicipalauthorities,inamoregeneraldefinition,is strategic since those institutions are the first ones to be interested in reduce thepollution and congestion rates inside cities.What is really important to note is thatpublicadministrationstendtoidentifypositiveexternalitiesandthissolutiongeneratesmanyofthem.Notonlythereductionofthosetaxesbutalsothegenerationofnewjobsthroughtheoptimizationofthesupplychain,thegainsinefficiencyforthosecompaniesinvolved in building tasks and therefore the gain in productivity throughout all theindustry.Publicadministrationscanhelp tomakepossible thesekindofsolutionsbyoffering areaswhere the logistic centers could be settled and after determining thelocalization,apublicprocurementformanagingthelogisticsactivitiescouldbeoptimalas is being done in Stockholm. The financial sustainability depends on reducing themarginalcostsforoperating.Forthisreason,themorethelogisticscenterisused,themore sustainable it is in these terms. The variable costs should not increaseproportionally,sinceonlydependonincreasingthenumberoftrucksneededatcertainpoint.However,thefixedcosts(thecenteritself–buildingandmanagingit-,mostpartofthesalaries)canonlybejustified,fromthefinancialpointofview,byincreasingtheoperability of the logistics center. In summary, is amodel based in a cost structure
58
focused in being compensate by taking advantage of economies of scale. As beinghighlighted,themoredeliveries,theloweritcosts,inaverage,tomakethenextdelivery.
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Stockholm. Construction Consolidation Centre: An IntegratedMulti-modal
transportforconstructionmaterials/logisticscenterinÅrsta
Measure:2.1IndustrialPartner:CarrierTransportandInfo24The Construction Consolidation Centre (CCC) is a logistical set-up to improve theconditionsforconstructionprojectssuchasnewdevelopmentsorrefurbishments.
ByplanningthematerialflowandsteeringinbounddeliveriestotheCCC,itispossibleto increase the efficiency of the building process. Possible savings aremeasured inreducedtime,aswellasdamagetomaterialduringdeliveriesandhandling,andwaste.Thiscancontributetoamajorreductionintheenvironmentalimpactofaconstructionproject.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships
CustomerSegments
1.Logisticscompanies(&
similar)2.Cityauthority
(innon-commercialprojects)
3.ConstructionCompanies4.Thirdpartycompanies
Delivermaterialtoconstructionsiteviaalogisticcenterinorder
togetassembleddeliveries
FortheCity:Lesstrafficjam.Lesspollution,lessnoise.
ForConstructionsite:Fewerdeliveries,better
coordination,lessdamagedgods,morevalueaddingactivities
OnebyOneMarketing&Publicity
PublicProcurementConstructionsites(andthecompanies
managingandexecuting
constructionprojects)
KeyResources Channels
Trucks,forkliftsStorageterminalHumanResources
LocationSoftware&Hardware
Trucks
CostStructure RevenueStreams
FixedCosts:Trucksandforklifts
Salaries&LaborcostsLocation(nowfree)
StorageHardware&Software
1.Feechargetoconstructionsite2.Feechargetosubcontractoronconstructionsite
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Customersegments
Sincethereisthenecessitytoofferaplatformtoplanandinasimplerandmoreefficientway the transportation of the project’s materials to the construction sites, theconstruction and transportation companies could represent the most importantcustomersegmentandthemoredirecttypeofthecustomer,understandingthatthefinalcustomercouldbeeithera third-partycompany,aprivatecustomerorapublicadministration.Valuepropositions
Thevalueproposition tries to satisfy the transportationneedsof the customersandoptimizethenumberofmaterialdeliveriestoconstruction/refurbishmentsites.Thisisthemostimportantvalueproposition,reducethetotalnumberofdeliveriesandalso,bydependingonlyformonesourcefortheconstructionmaterial,optimizetruckloadshelpingtomeetthegoaloflessdeliveries.Inconsequence,avaluepropositionappearsin a form of a positive externality which is to reduce the contaminant emissionsgeneratedby,forinstance,trucktripsorforhavingseparateproviderswithcontaminantfacilities.Channels
Wecouldconsiderdifferentchannelsaccordingtothedifferentphasesoftheproject.At first, when a certain project is under ideation stages and planning works, themanagingcompaniesoftheprojecthastoreceiveawarenessthatthere isasolutionwhichcouldhelptooptimizeitsoperationsbyrelyingtoaconstructionlogisticscenter.Inthissense,acommunicationstrategy,viapublicfairs,constructionandtransportationfairs,advertisements,throughpartnerchannels,orothertypeofchannels,theserviceshouldbeknownamongtheconstructionsector.When a construction company uses the logistics center, when a truck leaves thefacilities,itwouldbeconvenientfortheclienttotrackinrealtimewherethetruckis.Interms of the delivery service, when a company needs construction material orequipment,contactsdirectlytotheconsolidatedcenter,andthisonemanagestosendthe material or equipment in an efficiency way that it can reduce the number ofdeliveries.Customerrelationships
Probablyadedicatedpersonalassistanceforeachclient,wouldnotbenecessary,sincemany companies can use the center, however, for the biggest projects, it could beconvenienttodedicatefull-timestafftoparticularcustomersorparticularprojects.Thatbeingsaid,customerrelationshipswhen itcomestotrackingthedeliveries,couldbebasedonautomatedservicesthrough,forinstance,amobileapplication.
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Revenuestreams
For the customer, using the logistic facilities, the revenues come from the savingsgenerated by the reduction in time of the transportation activity. Thanks to this,consequently,thewaitingtimes,canbereducedifnoteliminated.Othersavingscomefromthereductioninenergycostsandtimeofworkerswaiting,energyconsumptionand stolenmaterial in the construction site, because the fact of nothaving to stockmaterials intheconstructionsites,and leaving it inthehandsofthe logisticscenter,erasesthepotentiallossesduetotheftordeteriorationofthematerial.Followingwepresentsomefiguresregardingthesavingsgenerated.Revenuestothelogisticscenterarethoughttocomefromconstructioncompaniesandothercustomersusingthissolutionbypayingafeeforuse.
• Itisestimatedareductionofnumberofdeliveriesby40-60%• Itwillreduceenvironmentalimpactduetoareductionofdeliveriesandtheuse
ofBiofuelsorelectricvehiclesforthetransportationofthematerials.• Itwillimprovetheefficiencyofthebuildingprocess.
Therearetwokindsofincomes:
The savings guaranteed by the efficient distribution of the materials can bepayedtotheConstructionConsolidationCenter.
AhighdemandoftransportofmaterialstoconstructionsitescanallowtotheCCCtobuythematerialsatalargescaleandhaveunitarycostofthematerialscheaperthankstothescaleseconomies.PartofthesesavingsintheunitarycostcanbeanotherincomefortheCCC.
Keyresources
Theassetsrequiredinthissolutionare:1. LandtosettletheConstructionConsolidationCenter(CCC)(logisticscenterfrom
constructionmaterialetal.)2. Electric or biofuels vehicles to transport the material from the CCC to the
Constructionsite,ortrucks.3. Basicsoftwaretomanagethedemandsanddeliveriesofmaterialsandoptimize
operations.Keyactivities
Achieveagreementswithcustomers.IftheCCCplanstouseonlyenvironmentalfriendlytransportationvehicles,inturn,akeyactivityofhaving support fromthe localauthorities,notallowing the transitofnon-biofuelsorelectricvehiclesinsidethecity,canhelptodevelopthemeasureinaneasierwayfromthelegalandcompetencypointofview.
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Keypartnerships
(1) Constructioncompanies(2) Transportcompanies(3) PublicAdministration
Coststructure
Thecoststructureincludes:• Material,passivemeasures• Equipment,activemeasures• Vehicles• Construction• Maintenance
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Solution 3: Smart energy-saving tenants
Tenants’behaviorinfluencestheenergyconsumptioninbuildingsupto10%throughe.g.theiruseofelectricitygadgets,hotwateroropeningwindowsincoldconditions.Behaviorcanfurthermorehelptoevenoutpeakloads.Thewaytoinfluencetenantsisrelativelycheapandthebusinesscaseishencegood.Inmanycountries,theenergycostisnotincludedintherentsothereisastrongincentiveforthetenantsthemselvestoreduce their energy bill, thus making the business case to provide accurate energyinformationstronger.Asresidentialbuildingsgrowmoreenergyefficient,theroleofthetenantswillbeevengreaterregardingenergysavings,astheymayaffectabiggershareofthetotalenergyuse.Bydeployingsensorsinbuildings,itispossibletobringinformationonreal-timeenergyusetothetenantswhointurncanmonitortheenergyconsumptionandfindwaystoreduceit.HomeEnergyManagementSystemswillbeinstalledinallthreeLightHousecities, visualizing and manage energy consumption. New solutions will be used toautomatically steerhouseholdappliances,minimizingenergyconsumptionandavoidwastingenergy.Tofurthermotivatethetenants,dynamicpricingwillbetested,raisingthepriceofelectricityatpeaktimesandloweringitwhenthedemandislower.GrowSmarterwillalsointroducemeasurementoftheamountofwasteeachhouseholdthrowsaway.Bybillingaccordingtothewastesortingrate,itispossibletoencourageincreasedrateofrecyclingandhencesaveenergy.ConclusionsregardingtheBusinessModelsrelatedtosolution3
Themainpurposeofthissmartsolutionistoprovideonreal-timeinformationaboutenergyusage,intermsofenergyconsumptionandtenants’consumptionbehavior(howconsumption levels are distributed during a period. Knowing this information theconsumershouldconditionitsconsumptionbehavioraccordingly,reducingitifpossibleandthereforeincreasingtheefficiencylevelsintermsofenergyconsumption.Itcanbeconcludedthatsmartsolution3,oftheGrowSmarterproject,complementsprevioussmart solutions of theWork Package 3, regarding the implementation of active andpassiveenergyefficiencymeasures.Weunderstandthattheimplementationofhomeenergy management systems serve for analyze the benefits of those previousimplementations.Ashappensinothertopics,theinterpretationoftheresultsarenearlyasimportantthanobtainingthem,thissolutionbringstothecustomers,anopportunitytoreadthedataobtainedandinterpretitactinginconsequence.Anenergysavingcenter,tobeingoperatedoesnotrequireanimportantfinancialeffortcomparedtoothersolutionsincorporatedinthisdocument.However,sinceitfunctionsasacomplementarysolutionforothertypeofactuations,itcanbeincorporatedwithinbusiness models with bigger costs structures. Regarding the inherent costs of thesolution,itshighaddedvalue,demands,asakeyresource,ofhighqualifiedpersonnel,notonlytodeveloptheenergymanagementsystemsandplatformsbutalso,ifneeded,toanalyzethecollecteddataformakingdecisionsforfutureactions.
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Barcelona.HomeEnergyManagementSystem
IndustrialPartner:GasNaturalFenosa.Measure:3.1.3
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
1.Departments
ofthecompanyitself:marketing,
residential,IT,innovation,
administration,legalandsecurity
2.Fabricant3.Installer4.Externalconsultancy,especiallyforIoTmarketandinnovation,
telecommunication,bigdata5.Customer
itself
1.ChoiceofthefabricantoftheHEMSequipment
2.Definitionofcontractandconditionsforthe
developmentofnewfunctionalities,fortheuseandpropertyofthedata,fortheimagerightsandlogo3.Developmentofan
engagingvisualizationoftheinformation
5.Advancedtechnologicalandtelecommunication
development6.Dataanalysisand
processing7.Trackthebehavioralchangesandinformthecustomeraboutthem.
8.Communicationorientedtocustomerengagement
Empoweringsensationforthecustomerasregardenergyconsumption:
• theycanvisualizetheirbehavioralpatterns,
• theycancontrolandscheduletheuseofsomeequipment,
• theyareinformedabouttheirinefficientbehavior
• theyreceivepersonalizedadviceandcandecidetochangetheirbehaviorinordertoreduceenergyexpenses
• theycanacttohaveabetterthermalcomfortathome
The customer feels cared for by whogivestheserviceandacquires/maintainconfidence,solvingthetendency/desireto change continuously for betterservices.
OnebyOneMarketing&Publicity
Residentialcustomerswitha
minimumtechnologicalbackground(mainlyowners)
KeyResources Channels1.Fundstoinvest2.Humanresourcesformarketing,visualization,IT,dataanalysisandprocessing3.Dialoguewiththebusinessorientationofresidentialdepartmentofthecompany4.Monitoringplatformforbigdatastorageandanalysis
- Directsalestoexistingcustomer(offeringoftheadditionalservice)
- Advertisingcampaigndoortodoor- AdvertisingcampaignviaTV,radio,letterbox,
mailbox- Advertisingcampaignviawebsite
CostStructure RevenueStreams- ConsultancyonIoTmarketand
innovation,telecommunication,bigdata
- Purchaseofequipment- Redesignofequipment,ifnecessary- Visualizationdevelopment- ITdevelopment- Dataanalysisandprocessing- Legalaspects- Installationandcustomercare- Maintenanceofthemonitoring
platform
1. Monthlypaymentbythecustomer,includedinthecontractofenergysupply
2. Sellingofotherservices:dataoftheclientallowstoidentifypersonalizedservices,withahigherpossibilitytoconcludethesale;furthermore,customer’sloyaltyisanaddedhelp.
3. Sellingofotherproducts:dataoftheclientallowstoidentifypersonalizedproducts,withahigherpossibilitytoconcludethesale;furthermore,customer’sloyaltyisanaddedhelp.
4.Growthofcustomers,duetothegoodfeedbackoftheloyalcustomers
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This solutionaims to install ahomeenergymanagement system in some residentialbuildingsconsideredinrefurbishmentprojectsofresidentialbuildings,specificallylistedinsmartsolution1amongotherresidentialbuildingsregardingsolutionsaboutSmartEnergyandSelf-sufficientblocks.CustomerSegments
Home Energy Management Systems are addressed to be installed in residences toprovideamanagingsystemtocontroltheirenergyconsumptionsandpatterns.Forthisreason,sincethemeasureisaddressedtoparticularusersandtheirresidences,itisnotaddressed toamassmarketand isnotdesigned tobe installed in tertiarypurposedbuildingsoranyotherfacilities.ValuePropositions
Themostimportantvaluepropositionofthissolutionistoimprovethequalityoflifeoftheresidentslivinginthebuildings.Thisimprovementinthequalityoflifeshouldbeensured by remotely controlling the monitored systems of the dwellings thus theresidents could have the possibility to adapt the dwelling’s conditions, (in terms ofinternal temperature) to their own comfort standards. Empower the consumer in asense of giving him a tool to control its consumptions more precisely. With theimplementation of aHomeEnergyManagement System, now the user can visualizetheirbehavioralpatterns,controlandscheduletheuseofsomeequipment,beinformedabouttheirinefficientbehavior,receivepersonalizedadviceanddecidewhetherornotchangeitinordertoreduceenergyexpenses.Since this is a management system of the energy, this implies that any change inconsumptions can be detected. In this regard, if an excess of energy consumptionappears,automatically,canbeneutralizedbyoptimizingit.Ifthemeasureisproventobe financially sustainable, it could serve as a useful tool for promoting sustainableeconomic development and raising awareness among other residential buildingownerships.CustomerRelationships
Individualizedcare toattentionandcare toeachcustomer, since theproduct is soldindividuallyforeachcustomer(onebyonerelationship).Channels
It is important to reach awareness among the main customer segment (residentialbuildings)inordertopromotethemeasureinagreaterscale.Thechannelsusedbytheenergy company are based in advertise the measure via TV, radio, letter box andmailbox;andviacorporatewebsiteandothersitesontheinternet.Anownanddirect
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channelof theenergy company, is thedoor todoor channel,offering the service toexistingcustomersasanadditionalone.RevenueStreams
Themost importantrevenuestreamisbased inamonthlypaymentbythecustomer(includedinthecontractofenergysupply).Otherrevenuescouldcomefromusingthedataobtainedbythemeasurementsystem(HEMS)byhelpingtoofferotherproductsadjustedtoaspecificcustomer(basedonthedata).Oranonymousdatausedtodesignproductsorservicesforothermarketsorcustomers(regulationabouttheusageofdatacoulddeterminethepotentialofthissourceofrevenues).Thankstothescalabilityofthemeasure,anditseasyreplicabilityitisexpectedagrowthofcustomersduetothegoodfeedbackoftheloyalcustomers.KeyActivities
Key activities for this solution are the ones absolutelymandatory for delivering theserviceofaHEMSsystemtocustomersinasatisfactoryway.FortheHEMSsystemtowork properly, the activity of collecting and provision dwelling’s energy data isfundamental in this solution. Other important activities are the ones involving theinstallationofthesolution,achievingagreementswitheachindividualneighbors,informabout thesolution,collaboratingwithother industrialpartnersorpublic institutions,stablishingcontractsforsharinganonymousdataiftheregulationallowsit,orbuildingbig data bases for improving the solution and designing other smart solutions, andpreviouslyoftheimplementationofthesystem,toensuretheresourcestodevelopthetechnologyneededbytheHEMSsystem(hardwareandsoftware).OtherkeyactivitiesarelistedintheCanvasmodelofthesolution.KeyResources
As with other business models, key resources can be divided in different categoryaccordingto its typology. Ifweconsiderthefinancial resources, thesearenotof thesameimportanceoftheintellectualorhumanresources,however,inpreviousstages,beforeimplementingtheHEMS,itisrequiredtoinvestinresearchanddevelopmentofthetechnologyrequiredfortheHEMStobecomeareality.Intermsoftechnology,itisnecessarya software to storage thedataandvisualize consumptions. Important keyresourcesare those includedwithin thehumancapitalcategory, forexamplehumanteamsinstallingandmonitoringthedata,whichisimportantformthepointofviewofthe ESCo Company. Also people from the marketing division of the company,visualization, IT and data analysts, and finally other internal specialists. In terms oftechnology
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KeyPartners
ThekeypartnersaretheresidentsofthedwellingswheretheHEMSsystemsaregoingto be implemented and the energy company selling the service; in particular, thedifferent departments of the ESCo company such as marketing, residential, IT,innovation,administrationlegalandsecuritydepartments.Otherkeypartnerscanbethe public administrations (as it is the case of Barcelona), themanufacturers of theequipment, installers,externaladvisorsandconsulters (especially for IoTmarketandinnovation,telecommunicationsandbigdata).CostsStructure
TheinstallationofaHEMSsystemdoesnotrequireahugeamountoffinancialresourcesanddoesnotrequirespecificpre-conditionsbeforeimplementingit.Inthisregardthemaincostsforimplementingthemeasuresatisfactorilyinmanyplacesdependonthemarketingcampaignsandthelevelofawarenessamongpotentialcustomersregardingenergyefficiencysystemsandresidentialproperties.Thecostsstructurecanbelistedasfollows; the costs of developing the technology, consultancy on IoT market, aboutinnovation,telecommunicationsandbigdata;costsofpurchasingtheequipmentand/orredesigning it if necessary; costs from visualization development, data analysis andprocessingcosts,expendituresfromlegalpartners,andmaintenanceofthemonitoringplatform.
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Barcelona.VirtualEnergyAdvisor
IndustrialpartnersinBarcelona:IREC,BarcelonaMunicipality(PPP)Measure:3.1.3The Virtual Energy Advisor aims to reduce household electricity consumption by aminimumof10%byinfluencingconsumers’behaviorshowingelectricityconsumptiondataobtainedfromsmartmetersandgivingtipstoreduceit.
KeyPartners KeyActivities ValuePropositions CustomerRelationships Customer
Segments
(1)BarcelonaEnergyAgency
(promoterofthebusiness)(2)Softwaredeveloper(platform,mobileapp)(2)Hardwaremanufacturer
(smartmeters)
(3)ElectricityDSO
(1)Developmentofthesoftwareto
provideinformationonefficiencyin
electricityconsumptionintheresidentialsectortoencouragebehavioral
changesamongcitizens
(2)Installationofsmartmeter(3)Platformupgrading
Tooffermoreinformationontheelectricityconsumptionpatternstothecitizensand
giveadviceonstrategiestosaveelectricity
inthehousehold(aim:10%electricitysavingsonaverage)
(1)Informationonenergyconsumptionandadvicesaboutenergyefficiency
throughthewebplatformandmobileapp
(2)Informationexchangewithothermembersthrough
theCommunityforum(3)Communicationswiththeplatformoperator
(4)CommunicationswithPublicadministrations.
Workshopsineverydistrict(5)Informationcampaigns
onthemedia Privatesector:citizensofBarcelonaKeyResources Channels
(1)PersonnelfromBarcelonaEnergyAgencyandIREC(2)FinancialresourcesofBarcelona
Municipality(annualbudget)
(3)Smartmeter(optional)
(4)Smartphone,tabletorPCfrom
user'ssidetoaccesstheplatform
(1)Saleschannels:media,press,Municipalityhomepage,e-mail
(2)Servicechannels:Webplatform,MobileApp,calls,
CostStructure RevenueStreams(1)Softwarerelatedcosts:
developmentoftheplatform(2)Hardwarerelatedcosts:smart
meters(3)Maintenancecosts:smartmetermaintenance,platformmaintenance
(1)Non-monetaryrevenue:DataonElectricityconsumptionbytheresidentialsectorofthecityasarevenueforthepublic
administration(2)Theuseoftheplatformshouldleadtoareductioninthe
householdelectricityconsumption(thisisnotarevenuefortheBarcelonaMunicipalitybutforthecustomer/citizen)
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Customersegments
Thismeasurecanbeimplementedinmanyplacessinceitonlyconsistsinauser-friendlyvirtualenergyadvisor.However,sinceitusesthedatacollectedbysmartmeters,thismeasure has to be addressed to those customers with this type of infrastructureinstalledinthebuilding.Thecustomershavingsmartmetersthus,thedataneededtoimplementavirtualenergyadvisorfordisplayinginastraightforwardway,arethemostimportantpotentialones.Ingeneral,themeasurecouldbeattractiveforanycustomerwith inquietudes regarding a better environment and a sustainability. Themeasurecouldbelinkedwithothermeasures,wadingthesampleofpotentialcustomers,takingintoaccountaprojectinvolvingdifferentmeasuresoftheGrowSmarterproject.Inthismanner,thismeasurecanbelinkedwiththeplatform“ResourceAdvisor”;measure4.2Energyproviderscanbepotentialcustomers,ifthisisthecase,themodelwouldchangefrom a business to customer to a business to business approach,where the energyproviderbecomesthecompanyfinallysellingtheproducttothefinalcustomer(tenantsandresidentsingeneral).AshappenswiththecaseofIRECatBarcelona,themeasureisreallyattractiveforthemunicipalauthorities,fundingtheprojectforhelping,notonlytobearealitybutalsotobringthissolutiontothefinalcustomers,sincethepositiveexternalitiesareattractivefromthegovernanceandsocial/economicpointofview.Forthisreason,thiscasecouldbeconsideredaPublic-Privatepartnership.Valuepropositions
Thevaluepropositionoftheplatformisofferingmoreinformationabouttheinefficiencyencouragingbehavioralchangeamongsttenants.Theinformationisobtainedusinganintelligent back-end based on algorithms that use data from smartmeters and it ispresentedusinguser-friendlyfront-endwhichcanbeviewedfromanumberofdevices.Theexpectedimpactonuserbehaviorismainlyrelatedtothefollowingtopics:activereductionof electricity consumptionduring thenight, purchaseof deviceswithhighenergyefficiencylabel,useofLEDlightbulbswiththeaimfor10%electricitysavingsonaverage.Channels
(1)Saleschannels:media,press,Municipalityhomepage,e-mail.(2)Servicechannels:Webplatform,MobileApp,calls,e-mail.Customerrelationship
Theinformationisprovidedtotenantsinreal-timethroughaWi-Ficonnectiononweborvia themobileappavailable fordownloadonsmartphonedevices, tabletsorPCs.Emphasisisputonthedirectinteractionbetweentheuserandtheplatformtofollow-
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upandcomparethelevelofefficiencyofthecurrentenergyconsumptionswithpreviousyearones.The platform allows to contact exchange expertise with other members of thecommunity,discussenergy-relatedtopicsandworktowardsachievingenergyefficiencygoalsinordertobecomeasenergy-efficientastheothertenantswithasimilarprofile.CommunicationsbetweenthePublicadministrationandcitizensthroughworkshopsineverydistrict.Revenuestreams
Revenues for the citizens: This platform aims to reduce household electricityconsumptionbyaminimumof10%onayearlybasisbychangingconsumer’sbehavior,thus electricity cost reduction is expected for the users. Another revenue is theexternalitiescreatedforthecity,i.e.cityenergyandemissionsreductionduetolowerelectricity consumption in the residential sector. A non-monetary revenue is thecollectionofelectricityconsumptiondatabytheMunicipality,whichmayhelp inthepromotionofnewenergypolicies.Keyresources
PersonnelfromBarcelonaEnergyAgencytopromoteandmanagethedeploymentofthetool.FinancialresourcesofBarcelonaMunicipality(annualbudget).Wi-ficonnectionatthedwellings.ItishighlyrecommendedtohaveasmartmeterinordertotakefulladvantageofTheVirtualEnergyAdvisorbyreceivingreal-time information.However, tenantsmaystilluse the tool with monthly data from their utility bills. Additionally, users need asmartphone,tablet,orPCtoaccessthedataandtheanalysisgeneratedbytheplatform.Keyactivities
Akeyactivityisthedevelopmentofanintelligentback-endbasedonalgorithmsthatusedatafromsmartmetersthatallowsinformingcustomeraboutenergyconsumptioninefficienciesandencouragingbehavioralchangeamongsttenants.InstallationofsmartmeterandPlatformdevelopmentandupgrading.Keypartnerships
The platform hosts a community of users who exchange expertise, discuss energy-relatedtopicsandworktowardsachievingenergyefficiencygoalsinordertobecomeasenergy-efficientastheothertenantswithasimilarprofile.Itisimportanttogatherabignumberofusersinordertoreceiveasmanyinputsaspossible.
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The key partners, besides users are also the Energy Agency as a promoter of themeasure,thesubcontractedcompanythathasdevelopedthealgorithm(platform),themanufacturingcompanyofthesmartmetersandtheinstallers.Coststructure
-Softwarerelatedcosts:developmentoftheplatformrequiresateamofprogrammersandenergyexpertstoanalyzethemostadequateindicators.-Hardwarerelatedcosts:smartmeters.-Maintenancecosts:smartmetermaintenance,platformmaintenance.
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Cologne.HomeEnergyManagementSystem
Measure:3.1IndustrialPartners:RheinEnergieShort description: Implementation of aHome EnergyManagement systemwith thepurpose of monitoring and visualizing the consumption behavior of differentdepartments,optimizesaidconsumptionsandachievelowerenergycosts.AnumberofapartmentsinColognewillreceiveSmartHomeequipmentwhichenablesthemtosaveelectricityandwarmwaterrequiredbyradiators.Viasmartphone,tabletor PC, consumers will be able to track their energy consumption of the chosenconnecteddevices,allowingthemtoremotelyturnoffallelectricalappliancesandlightsat any time. Furthermore, the data acquired could be available to both the publicadministration,theprivatesector.Duetodataprotection,datafromthesmarthomesystemswillonlybeavailablefortenantsandresidents,inCologne’sproject.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships
CustomerSegments
1.Cologne’scitycouncil
2PrivatePartnersinCologne:AGTInternational&RheinEnergie
2.Companiesthatmightwanttocreatenew
businessesthatdependonthedatagenerated3.Thirdpartytechnicalcompanies
Installingsmart-plugs,acquiringandmanaging
datafromhouseholdenergyconsumption.
1.Reducetheenergy
consumptioncosts,Becomemoreenergyefficient
2.Newbusinessopportunitiesandbusinessmodels(data)3.Reducegreenhouse
emissionsatthecitylevel
4.Understandmoreindepthhousehold
consumptionpatternsby
havingaccesstodata
1.Advertisement2.
Recommendationsfromutilitiescompanies
3.RecommendationsofCityCouncil,orothergovernment
authorities•Privatesector
•Utilities•Public
administration•Households
KeyResources Channels
1.Infrastructure(Smartplugs,Internet,Energy
Infrastructure)2.Technology/apps3.ITknowledge
4.Humanresources(Technical/Customer/GeneralOperationsstaff,R&D)
1.SmartHomeappandwebsite2.Website
CostStructure RevenueStreams1.Hardwarerelatedcosts:smartplugs
2.Softwarerelatedcosts:maintenanceofapp,technologicalinfrastructurerelatedproducts,
andmaintenanceofdata.3.Personnelrelatedcosts:customersupport,
maintenanceandR&D
Energycompanieswillbeabletobetterunderstandhouseholds’consumptionpatterns.Indeed,publicand
privatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.
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Customersegments
Iftheregulationallowsit(intermsofdataprotection),thepublicadministrationandtheprivatesectorswouldbepotentialcustomers.However,itisnotthecaseforCologne:
• Publicadministration(notapplicableforthiscase:a. ThedataonenergyconsumptionwillbegiventotheCityofCologne’s
Open Data-Platform, and thus allow public administration to forecastenergy consumption and understand better household consumptionpatterns.
• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata
Inarealscenario:
Households,themaincustomersegmentarethecitizenswhowanttooptimizetheirutilities’consumption.
Valuepropositions
Forhouseholds:1. Reducetheirenergyconsumptioncosts2. Becomemoreenergyefficient3. Givethematooltounderstandtheirenergyconsumptionpatternsandbeable
toturnonandofftheirhomelightsandappliances.Forprivatesector(regulationdonopermitthisinCologne’scase,butshouldbeincludedinagenericBusinessmodelwhenitcomestoimplementsimilarsolutionsindifferentregulationenvironments):
1. Accesstodatathatcouldgiveaccesstonewbusinessopportunitiesandbusinessmodels.
Forpublicadministrationandcityatlarge:1. Reducegreenhouseemissionsatthecitylevel(independentlyofthelaws,thisis
apositiveexternality.2. Understandmoreindepthhouseholdconsumptionpatternsbyhavingaccessto
data(regulationdonopermitthisinCologne’scaseduetodataprotectionlaws)Channels
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1. SmartHomeappandwebsite2. Website
Customerrelationship
Theplatformallowsfordifferentwaysofcommunicatingwithcustomers–theyprovidedirectlyacustomerserviceplatform,bothviainternetandcall-centers,aswellasallowfordirectcontactwiththecompanyviasocialnetworks.Revenuestreams
No usage fee is charged for the use of the app for customers. However, energycompanieswillbeable tobetterunderstandhouseholds’consumptionpatterns,andthuswill allow for amore efficient supply of energy in urban areas, reducing costs.Indeed,duetomoreinformeddecisions,publicandprivatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.Keyresources
1. Infrastructure:a. Smartplugs(i.e.SmartMeter)b. Internetc. EnergyInfrastructure
2. Technology/apps(SmartHomeapp)3. ITknowledge4. Humanresources:
a. Technicalsupportstaffb. Customerservicestaffc. Generaloperationsstaff
Keyactivities
Installing smart-plugs, acquiring and managing data from household energyconsumption,andtechnologicalsupport incaseofproblemsbothinSmartHomeappandphysicalinstallation/repairingofsmartmeters.TransferringandmanagingthecitydatafromtheSmartHomeapptotheCityofCologne’sOpenDataPlatform.Keypartnerships
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Energy provider: Partnering with the software company that is providing the smarthomeappforRheinenergie.Also important the (relation) partnership with residents/tenants/owners where thissolutionisgoingtobeimplemented.
Coststructure
1. Hardwarerelatedcosts:smartplugs2. Softwarerelatedcosts:maintenanceofapp,technologicalinfrastructurerelated
products,andmaintenanceofdata.3. Personnelrelatedcosts:customersupport,maintenanceandR&D
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Stockholm.TheActiveHouseprojectinStockholm
Measure:3.1.1MainndustrialPartner:FortumImplementationofactivehousingmeasurestoimprovetheefficiencylevelsintermsinenergyandachieveadecreaseinenergycostsinÅrsta,Stockholm.Also,thesolutiononanadaptivecontrolsystemhasbeenimplementedinVallaTorg.
KeyActivities
Thisprojectrequiresapreviousstageofstudyingtheareaanddetermininghowthismeasureshouldbeimplementedoneachbuilding.Thisphaseisdefinedbyatechnicalreportsignaling,asitsnameindicates,anytechnicaldetailthathastobementionedin
KeyPartners KeyActivities ValuePropositions
CustomerRelationships
CustomerSegments
Tingcore(Fortum):product
developmentandtechnical
deliverypartnerBravida:Technical
commissioningandon-sitesupportPropertyowner:
includingthesubcontractors
Development,sales,
installation,commissioning,supportand
maintenanceofActiveHousesolution
Fortenants:increase
awareness,reducingenergy
consumption,convenience
andsimplifyingthelife
Forpropertyowner:increase
marketingandsalesvalue,
fulfillenvironmentalrequirementsForsociety:positive
environmentaleffects
B2B:Throughlargeproperty
ownersB2C:directsalesto
villa/apartmentowners Construction
companies,property
owners/developersand
villa/apartmentowners
KeyResources Channels
Technicalcomponents
HumanresourcesSoftware
B2B2C
CostStructure RevenueStreams
HardwareandsoftwarecostsSalaries
Supportandmaintenancecost
Platformpriceplusmonthlyservicefee(notvalidforGrowSmarterproject)
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aprojectlikethis.Itisimportanttohighlightthatthebuildingswherethesemeasuresaregoingtobeinstalled,differfromonetoanother.Therearebuildingsformdifferentyears,therearedifferenttypesofbuildings,thusdifferenttypeofmaterialsaswell.Thisrequireapreviousmeasurementtofindouthowthebuildingsarereactingtochangesintemperature.Regardingtheimplementationphase,inourcase,Fortumimplementsitssolutionin54apartments inÅrsta. The implementationofActiveHousingmeasures suchas installwater and electricitymeters, sensorize the buildings and deployment of tablets anddimmers, are key activities that take part during that stage of the project, theconstructionphase.Itiscrucialtoincludetheconnectionbetweenthedatacollectinginfrastructure(sensors…)withtheenergysavingcenter,whereallthemeasuringactivitywilltakepart,andinfact,isongoing.Finally,otherkeyactivitieslikemaintenanceorthemanagingpart,arealsoimportant.CustomerSegments
This typeofactivehousingmeasures, canattractanyhouseholdorbuildingowner/manager,wantingtoachieveamajordegree inenergyefficiency,by implementingabuildingenergymanagementsystemtomeasureandconditiontheenergyconsumptionbehaviorofabuilding.Constructioncompaniesorurbandevelopersareanimportantpotentialsegmentofcustomers.ValuePropositions
Therearedifferentvaluepropositionsregardingthisproject.SomeofthemcouldbemoreaddressedtothetenantsofthebuildingswhereaBEMSsystemisbeingdeployed.Thisaction,couldhelptoensureanincreaseoftheawarenesslevelsintermsofenergyconsumptionanenvironmental sustainabilityof the residents.At thesametime, thevaluepropositionofreducingtheenergyconsumptionsismorerealistic.Otherapproachtoconsiderasavalueproposition, isthesimplificationandconvenienceproposal.Toeasier theprocedures formonitor theconsumption levels, simplifying the lifeof thetenants.Othervaluepropositionsaremoreaddressedtosatisfysomenecessitiesoftheownersof theproperties in termsof increasingthemarketingandsalesvalue,andfulfill theenvironmentalregulationsandlocalrequirementsinthisregard.In a more collective approach, mention the positive externalities that occur whenmeasureslikethisone,arebeingimplemented.Thevaluepropositionofreducingtheoverallpollution,couldbeachievedthanksofmeasureslikethat.
KeyPartners
Fortum, as themain industrial partner (Energy Company); Skanska, in charge of theconstruction plan; Tingcore as product developer and technical delivery partner(TingcoremergedwithFortuminJune2017);andBravidia,asatechnicalcommissioner
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andon-sitesupportresponsible.Alsonotetheimportanceofthepropertyownerofthebuilding.Andfinally,thesubcontractedcompanieswhichparticipateinanypartoftheimplementationandmeasuringprocess.CustomerRelationships
The customer relationships are being established differentiating between thoseinvolving Fortum and a large property owners / urban developers / constructioncompanies;andthroughdirectsalestoownersofabuilding.Channels
Thechannelsusedtoreachnewcustomers(finalusersandindustrialclients)representthemostefficientwaytobeconnectedwithsaidcustomers.Inaprojectlikethat,thosechannelsaredirectones.SinceFortumisawell-knowncompany intheScandinaviancountries,alsoamongotherindustriesrelatedwithFortum’smarket,thechannelsused,favor business-to-business relationships. Fortum sells thismeasures to other relatedindustries, for instance, construction companies. Afterwards, a business-to-costumertypeof relationshiphas tooccur,because, the finaluserswill be the tenantsor theresidentsofthebuildings.Inthiscontext,thechannelscanbedefinedasaB2BfollowedbyaB2Csituations.Attheend,therearemoreasymmetricinformationbetweentheconstructioncompany(convincedviacapturingvalue)andthefinaluser(convincedviamarketing),theresidents.KeyResources
To implement a BEMS in a neighborhood, starting in Årsta, requires some financialresources, considered key for such a project. Part of this funds, comes from theGrowSmarterproject,otherformtheindustrialpartners.Thetechnicalcomponents(sensors,electricitymeters…)havetobeconsideredcrucial,akeyresourceforthisproject.Thesameappliesforthesoftwareneededtomanageallthedata,detectingtrends,andtakeconclusionsforimprovingtheconsumptions.RevenueStreams
Theindustrialpartnerchargesapriceforthesoftwareplatform.Inaddition,amonthlyusagefeeisrequiredtoutilizethesystem.So,therevenuesstructureisdividedintwoparts,afixedamountfortheplatformandavariableamountforthetimeutilizingit.(ThisrevenuestreamsarenotvalidfortheGrowSmarterproject,sinceitisasubsidizedproject).
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CostStructure
Themaincostsarethosegeneratedduringtheimplementationphasesandthecostsoriginatedduring themaintenanceof the technical componentsandalso theenergymanagementsystem.Duringtheimplementation,alltheequipmentandtheinstallationneeded supposes a relevant expenditure in terms ofmonetary costs, but should beconsideredasan investment (withamortizationcosts).Asmentioned, therearealsocoststhatappearforsupportingandmaintainingthesystem.Insummary,aprojectlikethisrequireaconsiderable investment, intheformoffixedcostssince it isacapital-intensive project. However, the variable costs are also important, depending on thenumberofflatsanddepartmentsfinallyincorporatedinthesampleoftheproject.
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Stockholm.LowEnergyDistrictsSolution
Industrypartners:Fortum&Info24Measure:3.1.1Shortdescription:Provide a ‘state of the art’ graphical user interface that gives households real-timeinformation on electricity, hot water and apartment heating consumption patterns.Moreover,customerscantrackhowmuchmoneytheyarespendingandCO2theyareemitting with their energy consumption, potentially having an effect in theirconsumptionpatternsandallowingthemtochangetheirbehavior.Amongotherthings,thisprojectwillalsogivethetenantstheabilitytoremotelycontrolthelights,chargingofelectricandhybridvehicles,andcontrolofradiatorthermostatsinthehouse.Itwillalsogivetenantstheopportunitytomonitortheusefulnessoflocallyproducedrenewableenergysuchassolarenergy inthehouse,as theapp integratessuchsourcesofenergyintheenergyinformationtrackerofthehouse.
Customersegments
1. Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures
2. Tenants/citizenswhowanttospendlessinenergyandbecomemoreenergy-friendly
3. Privatesector/withtheinformationacquiredfromtheproject,businessescangetmoreindepthknowledgeofconsumptionpatternsfromhouseholds.
Valuepropositions
Households:1. Trackingofenergyconsumptioninthehouse,givingtenantsinformationabout
howcostlyitisforthemtoconsumeenergyataspecificmomentintime,aswell
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams(1)Fixedcosts:a.Serversandphysical
infrastructure;b.Platformmaintenanceanddatamanagement;c.Salaries
(2)Variablecosts:a.Salesandmarketing,b.Researchanddevelopmentcosts
Tochargesomecostforthesmartmetersandsensorsandtheirinstallationandmaintenance.Tochargemoreflexibletariffstructures.
1.Localauthorities/citymanagersandadministrators
2.Utilities’companies3.Thirdpartytechnical
companies
Installingsmart-plugs,acquiringand
managingdatafromhouseholdenergyconsumption
Households:Trackingofenergyconsumptioninthehouse,tocontrolremotelythelightsandthermostats
inthehouse,allowindividualstoseeand
managewhentochargethevehicle
Citycouncil:Propellingabehaviouralchangefrom
households’energyconsumption
Privatesector:Accesstonewbusiness
opportunitiesandbusinessmodels
1.Advertisementonwebpages2.Recommendationsfrom
util itiescompaniesinterestedinofferingbetterservicesto
theirusers1.Tenants/citizens2.Privatesector
3.Publicadministration/municipalities1.Physicalassets(Smart
Meters,Internet,EnergyServicesandApps)2.Humanresources
(technicalknowledgeandexpertise)
1.Energyconsumptiontrackingapp
2.Websiteoffirm(Fortum)
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as how much greenhouse gasses the household would emit by consumingenergy.
2. Theappalsoallowsindividualstocontrolremotelythelightsandthermostatsinthehouse,makingiteasierforthemtocuttheirconsumptioniftheyconsideredtodoso.
3. In terms of electric vehicle charging, which is becoming more and moreimportanteveryday,theappwillallowindividualstoseeandmanagewhentochargethevehicle.Inthisway,householdswillbeabletochargetheirvehicleswhenenergy isthecheapest,havinganeffect intheenergybill thattheywillhavetopay.
Citycouncil:
1. Propelling a behavioural change from households’ energy consumption willcontributetothecity’sdevelopmentinenergyefficiency.
Privatesector:1. Betterunderstandingofhouseholds’consumptionpatternscangiveaccessto
newbusinessopportunitiesandbusinessmodels,aswellasallowtoreducetherisks associatedwith operational and strategic business decisions.Moreover,more information canpropelmore efficient energy supply systems, and thusreducingthecostsandincreasingprofitsofutilitycompanies.
Channels
1. Energyconsumptiontrackingapp2. Corporatewebsite(Fortum)
Customerrelationship
The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams
Smartmeters and the integration andoptimizationof the infrastructureof differentutilities offers several opportunities to create new revenue streams. First, they cancharge some cost for the smart meters and sensors and their installation andmaintenance.Itcaneitherbeaone-timesaleorthrougharenting/leasingschemethatwill allowcustomers touse the smartmeters (whichwill in turnallowcustomers toreducetheirenergyconsumptionandcost).Second,thenewintegratedinfrastructureandmore accurate information on energy consumptionwill allowutilities to chargemoreflexibletariffstructures.Inthissense,thebenefitsintermsofenergyefficiencyand climate changemitigation thanks to abetter integrationof energydemandand
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energygenerationcanbring importantefficiencies tomunicipalities, tenantsandthesocietyasawhole.Moreover,asmentionedpreviously,energycompanieswillbeabletobetterunderstandhouseholds’consumptionpatterns,andthuswillallowforamoreefficientsupplyofenergyinurbanareas,reducingcosts.Indeed,duetomoreinformeddecisions,publicandprivatedecision-makerscanreducetherisksassociatedwiththeiroperationalorstrategicdecisions.
Keyresources
1. Physicalassets,includingtechnologicalinfrastructureandsoftwarea. SmartMeters(electrical,gas,water,heating,cooling)b. Internetc. EnergyServicesandApps
2. Humanresources(technicalknowledgeandexpertise):a. Technicalsupportstaffb. Customerservicestaffc. Generaloperationsstaffd. R&D,data-analysisandtechnologyresearchteam
Keyactivities
Installing smart-plugs, acquiring and managing data from household energyconsumption,andtechnologicalsupport incaseofproblemsbothinSmartHomeappandphysicalinstallation/repairingofsmartmeters.Keypartnerships
1. Localauthorities/citymanagersandadministrators2. Utilities’companies3. Thirdpartytechnicalcompanies
Coststructure
(1) Fixedcosts:a. Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenanceb. Softwarerelatedcosts:platformmaintenanceanddatamanagementc. Personnelrelatedcosts:salaries
(2) Variablecosts:a. Salesandmarketingb. Researchanddevelopmentcosts
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Stockholm.Hubgrade-EnergySavingCentre
Industrialpartners:L&TMeasure:3.1.1TheHubgradesoftwarecomplementstheEnergyQualityAssurancemeasure.Shortdescription:Hubgradecombinesanumberofenergy-savingmeasures:
• AdaptiveTemperaturecontrolsystem• WatersavingEquipment• AdaptiveCurrentEqualization
The prime objective of these measures is to reduce energy costs and integraterenewable energy systems efficiently in the energy consumption and production ofhouseholds. The project is based on three main ideas for reducing energy: putting
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
1.Localauthorities/citymanagers
andadministrators2.Utilities’companies
3.Thirdpartytechnicalcompanies
AdaptiveTemperaturecontrol
system,watersavingEquipment,AdaptiveCurrent
Equalization
•Households:Energysaving,EnablesbetterusageofPVsolar
investment,Reducesstressonabuilding’selectricalsystem,Incentivizesamorecost-efficientuseof
energy•Utilities:Reducesstressonelectricaldistributionsystems,repairtheenergyindustryfornewbusinessmodels,
Encourageasmootherenergyconsumption
pattern•Publicsector:
Encouragesamoreenergy-efficient
economy,Reducesnegativeenvironmental
impact
Customerscancontacttheprovider,L&T,throughtheir
website.
Privatesector:1.Propertyowners
2.Buildingmanagingcompanies
3.Residentialcompounds
KeyResources Channels
Hardware(Building’scontrolsystems,sensors,districtHeatingNetwork,ACE,Photovoltaicpanels,energy
storageSoftware
(EnergyHubcloudplatform)
Solutionprovider’swebsite:L&T
CostStructure RevenueStreams
(1)Hardwarerelatedcosts(2)Softwarerelatedcosts(3)Personnelrelatedcosts
Themostefficientoutgoingtemperaturetotheheatingsystemgeneratingenergysavings,watersaving.
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forwardtherighttechnique,changeconsumptionbehaviorforthebetterandensuretherightmaintenanceoverthelong-term.Customersegments
Privatesector:1. Propertyowners2. Buildingmanagingcompanies3. Residentialcompounds
Valuepropositions
• Households(1) Energysavingpotentialisincreasedfrom5%to35%(2) EnablesbetterusageofPVsolarinvestment(3) Reducesstressonabuilding’selectricalsystemwithincreasedEVcharging(4) Incentivizesamorecost-efficientuseofenergy,consumingmoreenergywhen
energytariffsarelower,andorganizingenergyconsumptioninbetweenseasonsoftheyear
• Utilities(1) Reduces stress on electrical distribution systems through local production –
storage–loadcontrol(2) Prepare theenergy industry fornewbusinessmodelsandsmartgrid support
functions(3) Encourage a smoother energy consumption pattern at the macro-level by
makingcustomersconsumemoreinhourswhereenergyismoreabundantanddemandislower
• Publicsector(1) Encouragesamoreenergy-efficienteconomy(2) Reducesnegativeenvironmentalimpact
Channels
L&T’scorporatewebsitewhichistheproviderofthesolution.Customerrelationship
Customerscancontacttheprovider,L&T,throughtheirwebsite.Incasetheyhaveanytechnicalproblemoraquestionabouttheservice,theycancontactthecustomerserviceofL&T.
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Intermsofmaintenanceandinstallationofequipment,workersfromthecompanywillgototherespectivehousesandinstallations,creatingaface-to-facerelationshipwithcustomers.Revenuestreams
• TheAdaptiveTemperaturecontrolsystemcanavoidunnecessary increases inwatertemperatureduetosuddenchangesofoutdoortemperatures.Thesystemcontinuouslyprovidesthemostefficientoutgoingtemperaturetotheheatingsystem generating energy savings (from 5% to 15%), reducing moreoverenvironmentalimpact.Thesystemismanagedandcontrolledthroughacloudmakingiteasytofollowtheenergysavingresults.
• WatersavingEquipment.Upto60%watersavingsonindividualtaps.Targetto
save20-30%ofoverallwaterconsumptionThosesavingsshouldcompensatefortheinitialinvestmentandmaintenancecostpaidtothemanagingcompany,L&T.Keyresources
Hardware:• Building’scontrolsystemsconnectedtotheHubgradesoftware.• Indoortemperaturesensors• DistrictHeatingNetworktocollectdata• Watersensorsandelectricalsensorsthroughautomaticmeterreadings• ACE(AdaptiveCurrentEqualization-partoftheEnergyHub-)functionisachieve
amoreefficientuseofthethreephasesupply.• Photovoltaicpanels• Energystorage,thatcanbechargedfromthegridatnightatlowercostiflowPV
productionisexpectedinordertomanagepowercapacitypeaks
Software:• EnergyHub cloud platform that analyses the collected data. The system
combines the building’s load profile with electricity prices and the weatherforecasttocreateabasisforefficientsystemcontrol.
• Moreover, the smartmeter and automatic energy analysis work with a self-learning algorithm that ensures that the most optimal use of harvested PVenergyforenergystorageisputinplace.
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Keyactivities
• AdaptiveTemperaturecontrolsystem:Anormalcontrollingsystemusesoutdoortemperaturetoadjusttheoutgoingwatertemperaturetotheheatingsystem.This system constantly monitors the indoor temperature to influence theexisting controlling system for heating. Building’s own inertia (as using abuildings basic construction, possible insulation and activities inside, to keepindoor temperature at wished level without unnecessary raise of watertemperature)canbeusedinviewofincludingsolarradiation,variousactivitiesinthepropertyetc.
• WatersavingEquipmentinstalledonstandardtaps:kitchen,sink,andshower.
• Adaptive Current Equalization. EnergyHub is an electrical Hub controllingphotovoltaicsolarharvest,energystorageandelectricalconsumptionanalysisinonesystem.TheEnergyHubconsistsofmodular,distributedpowerelectronicsmanaging energy flow between PV production, energy storage and localconsumption/grid export. The smart meter and automatic energy analysisensureoptimalusageoftheharvestedPVenergywithenergystorageandself-learningalgorithms.TheEnergyHubsystemoperatesasaPVsystemduringdaytime, storingexcessPV inenergystorage foruseduring thenightandwintermonths.
Keypartnerships
1. Localauthorities/citymanagersandadministrators2. Utilities’companies3. Thirdpartytechnicalcompanies
Coststructure
d. Hardwarerelatedcosts:i. Sensors,technicalequipment,cables,etc.
e. Softwarerelatedcosts:i. Allthenecessaryequipmenttoensurethatthesoftwareworks
properlyandtherearenobugsinthesystemthatmightnotallowcustomerstoeffectivelymakeuseoftheservice
f. Personnelrelatedcosts:i. Technicalpersonnel:ii. Customerservicepersonneliii. R&Dpersonnel
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Solution 4: Smart local electricity management
Europeisincreasingitsuseofrenewableelectricitybutelectricityproductionfromsunandwindisintermittentandcauseslocaldeficitsandsurplusthatsometimescannotbebalancedassomeregionalandnationalgridsarenotcapableoffastdistributionatlongdistances,orthereisalackoffastactingbalancingpower.Hencedemandandsupplymayneedtobebalancedlocallyandcombinedwithstorage.Thinkstoconsiderbyeachlighthousecityandshouldbedescribedinthisdocument: - Regulation related with self-consumption sources of electricity and if it ispossibletoconnectthissourcestothegrid(takingadvantageofenergysurpluses). - If therearesignificant interruptions in theproductionofenergyusing thesesourcesofenergy,howcanaffecttheviabilityofthesolution.(ForexampleindeficitofsunhoursinthewinterofStockholm. ConclusionsregardingtheBusinessModelsrelatedtosolution4
Thissolutiongainsitsimportancewhenensuringthemaximizationofprofitsgeneratedbytherefurbishmentprojectsofthesmartsolution1,andtheimplementationofenergymanagementsystemsofthesmartsolution3.Theeffectivenessofthesmartsolution4willdependoneachrefurbishmentproject,ortheenvironmentandconditionsofthebuilding where the solution is going to be implemented. For those buildings withextremeclimatology(lowerminimumtemperaturelevelslikeStockholm)whereasmartlocalelectricitymanagement system is installed, thebenefitsofmanaging inamoreefficientway, theoptimization in consumptions, could representamajorproportionthancitieswhereweatherconditionsarenotthatextreme(forexampleBarcelona).Therearedifferentregulationsdependingonthecountry,affectingtheviabilityoftheprojectinsomecases.Insomecountries,feedingthegreedwiththeexcessofelectricitygeneratedbyself-consumptioninstallations,typicallyphotovoltaicsolarpanels,isnotallowed yet. In said countries, regulation takes into account these other sources ofenergy, andmaking possible the apparition of new smart solutions like smart localelectricity management systems. With a more favorable regulation, these type ofsolutionsdonotrequireofpublicfunding,sincethesavingsgeneratedshouldbeenoughtocompensatetheinvestmentinarelativelyshortperiodoftime.Forthisreason,withfavorableregulations,publicfundingorinterventionmightnotbeneeded.Something deserved to be noted here is that the proliferation of self-consumptionenergypowerplantsrequireothertechnologiestoappearinordertomanagethistypeofenergysources.Someoftheproposalsofthisdocument,serveasasolutiononthisregard, for instance, a software developed by Schneider Electric, implemented inBarcelona;orL&T,implementingothersolutionforthecaseofStockholm.RheinEnergieisalso implementingsimilarproposals in thecityofCologne.Finally, considering theimportance of having a better environment by reducing the pollution, sustainableproductionofenergywillbecomeatrend,inevitably,inamediumorlongtermbeingabletosolvetheenergeticdeficitofthecities.Ifthesehypotheticaltrenddemonstrates
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to be constant in time, the generation of high added value jobs (research anddevelopmentofnewerandmoreefficienttechnologies)andconstructionmightalsobenoticeable.
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Barcelona.Smartenergyandself-sufficientblock
Measure:4.2.1IndustrialPartner:GasNaturalFenosa
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
-Manufacturers-Engineers-Constructors-Installers-Departmentsofthecompanyitself-Communitysocialworkers-Presidentoftheneighborcommunity-Theneighborcommunity-Investors-Publicadministration(urbanlandscapedepartmentandresponsibleforsubsidies).-Publicadministration,inthecaseofpublicprivatepartnership(PPP).
Publicadministrationsshouldpromotetheuseofrenewableenergyandself-generationofittofeedthegrid.Otherkeyactivitiesarethetechnic
reportsbeforeimplementingthe
measures,organizationofmeetingswithalltheparts,construction,monitoringandmaintenance.
Optimizationoftheenergyconsumptionlevelsofthebuildings,increasetheirefficiencyandthevalueofthe
property.Also,toreachaself-sufficiencyratiosatacitylevel.Summarizing,toimprovethequalityof
lifeofthecitizens.
Relationshipbetweenenergyprovider(actingas
asingleinterlocutorwithalltheparts)
Importantalsotherelationshipswithpublicinstitutions
Neighborcommunitie
s(BTC)or
Contractors(BTB)or
Publicadministration(PPP)
KeyResources Channels
Fundstoinvest;Communitymanager;
Administrationmanagerforbureaucracy
management;otherhumanresources
Technology;Monitoringplatformfor
customers
-Withneighborcommunities:
Variousadvertising
campaigns(TV,socialmedia,websiteamong
others).-Withcompanies:
Directsales.-Withpublic
administration:Directsales.
CostStructure RevenueStreamsFixedcosts(Negotiationofcontracts,project
development,legalizationprocess,construction,commissioning,salaries,
technologicalinfrastructure,participatoryprocesswiththecommunity,monitoringand
analysis,maintenance).Variablecosts(marketing,incidentsanddelays,energycost
ifsupplied,lackofhumanresources)
Savingcomingfromtheoptimizationonconsumptions.Andfromtheenergycompanypointofview,revenuescomingfromthemaintenanceservicesandalsoforofferingthe
servicebasedonfuturesavings.
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CustomerSegments
In Barcelona, the solution is being implemented in both, tertiary and residentialbuildings. Some sub-measures differentiate between the uses of each building, forinstance,onresidentialbuildings,photovoltaicpowerplantswithenergystoragewillbeinstalledinordertosupplycommunityresidentialconsumption.However,finally,thisparticularsub-measureisbeingimplementedvirtuallysincethepresentconditions,intermsofproductionofelectricityforself-consumptionandintermsoffeedingthegreedwithsaidenergy,donotpermit todeliver thesolution inamorepracticalway.Thatbeingsaid,thissolutionisaddressedtoanyblockwithenergy-efficiencynecessitiesandownedormanagedby peoplewilling to achieve better sustainable levels and lowerconsumptions if possible. The role of public administrations has to be considered,helping to implement the solutiononprivate buildings or implementing it onpublicownedbuildings.ValuePropositions.
For the residentsand theneighbor communities, thevaluepropositionof improvingtheirqualityof life.Furthermore, therelativeeasy replicabilityof thesolution,couldextent this value proposition to other resident or tertiary blocks. Other valuepropositiontohighlightistoincreasetheenergyindependenceofthesecommunitiesby implementing renewable sources of it. These should also help to improve thesustainabilitylevelsofthebuildingsandalso,electricityutilitybillsareloweredduetotheself-consumptionofelectricity,theenergyarbitrageandtheminimizationofpeaks.Fromthepointofviewofthecontractor/investor,itcanbepredictedanincreaseofthebuilding’senergyefficiency labels,henceamajorpropertyvalue. Fromthe technicalpoint of view, a value proposition consisting in delivering an integrated solution ofrenewablegenerationincludingequipment,installationandmaintenanceprocurement,easingothervaluepropositionstobecomeareality.Finallyforpublicadministrations,tohelpthemtoreachtheirself-sufficiencyratiosatcitylevel.CustomerRelationships
Relationships with neighbor communities: neighbors meetings and via the BuildingAdministration.Forcontractor:Onebyone,specializedattentionaccordingtoeachimplementationofthemeasure,thesameforpublicadministrations.Channels
The in which the solution going to be delivered, note that the production andconsumptionsystemsinstalledinthebuildingswillbemanaged“virtually”inordertoanalyze possible scenarios for electric grid at island level, particularly in cases ofcomplementaryconsumptionprofiles.
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To reach awareness among potential customers, different channels are beingcontemplated by the industrial partner. For the neighbor communities, advertisingcampaigns(TV,socialmedia,websiteamongothers),aretheoptiontostablishachannelwiththesepotentialcustomers.Forother industriesorcompanies (contractors),alsopotentialcustomersof theservice,directandownchannelsaretheprimarychanneloption according to the energy company. The same happens with publicadministrations.RevenueStreams
Therevenuestreams,fromthepointofviewoftheenergysupplier,arebasedonthoseexternalresources(comingfromtheGrowSmarterprojectandEuropeaninstitutions,public administrations) and those revenues coming from the contractual agreementbetweentheparts,theenergycompanyandtheenergydemander.Abrokeragefeeonthesavingsduetobuilding’senergyoptimization,iscontemplated.Inaddition,revenuesmayalsocomefromthecontractofmaintenancebetweenparts.Fromthepointofviewof the final customer, some revenues shouldappear (justifying the smart solution interms of sustainability and positive externalities) supposing in someway, a revenuestream if renewable sourcesofenergyare installed. Those saving shouldbepresentduringaccordinglytothelifetimeofsaidinstallation.KeyActivities
A participatory process within the neighbor community (and tertiary building’sownership) to involve all parts into the decision-making process. This participatoryprocess has to include private investors (energy companies) and also publicadministrationswhenitisnecessary.Otherkeyactivitiesarethedesignandinstallationworks,todefinethesizeoftheprojectandtheimplementationmethodology,alwaysconsideringtheconsumptiondata;andthe tendering processes regarding the equipment providers and the installationcompany.Theworksupervision,takingintoaccounthealthandsafetyissuesandalsothedetailedengineeringactivities,arefundamentalones,mandatorytobeincludedinhere.Atthesamecategoryofimportanceweshouldincludetheactivitiesrelatedwiththeplanning,commissioning,managing,maintenanceandcontroloftheconsumptionlevels.KeyResources
Previousresources(beforeimplementingthesolution)aretheexistenceofblockswithminimalrequirementforphotovoltaicinstallationintermsofsurfaceavailability,goodorientationtowardsthesuncycleorhighelectricconsumptionforcommonzones,andalso the existence of urban islands, more specifically, sets of annexed blocks with
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complementaryconsumptionprofiles(fortheapplicationofthe“smart-grid”solutionandbecausethesupply-demandreason.Thatbeingsaid, thekeyresources,asothercases,canbedividedbetweenfinancial,physical,humanandintellectual.Startingwiththefirstone,thepaperoftheindustrialpartnersandpublicadministrationsarecrucialwhenitcomestoensurethesetypeofresources,evenmoreimportantsincetheimplementationofsomeofthesub-measuresrequire to fund the purchase of expensive assets and technological equipment forinstance.Nottomentiontheimportanceofthewholeinvestment,countingsalariesandotheraspectsof thecost structure.Physical resources, arealreadybeenmentioned,givingimportancetotheequipmentrequired.Finallyhumanandintellectualresources,not only to install the equipment but also to research and investigate the solutionsduringpreviousstages.Inthisregard,someexamplesaretheadministrationmanagerfor bureaucracy management, and the technic works for reporting the adequateproceduresforimplementingthesolution.Referringtointellectualresources,wehaveto mention the licenses utilized and technologies developed, very important whenapplyingamonitoringplatformforcustomers,topermitthemtoanalyzetheirbehaviorsandtoachievetheirloyaltyinasenseofaseller-customerrelationship.Keypartners
Thepartnersinvolvedwiththeimplementationofthesolutionarenumeroussincethereare many buildings subject of said implementation. Each of the ownerships are afundamental part for this solution to be executed. For this reason, owners of thedwellings,andtheoverallpropertiesoftheresidentialbuildings,havetobe includedwhenlistingthekeypartners.Thesamecanbeappliedontheownershipofthetertiarybuildings, key partners as well. The promoter of the solution, the energy companydeliveringtheservice,istheotherhalfofthestoryregardingfundamentalpartners.Inbetween,alsoconsideredkeypartners,arethoseotherpartiesinvolvedinsomewaywith the implementation, manufacturing of the technologies, developing them,installingormanaging.Withthisregard,manufacturersandthird-partycompanies(forexample providers or transporters) are also included in the list. Finally, do notunderestimatetheroleofpublicadministrationsandpubliccompanies,developinganimportantpaper,notonlytofund(ifitisthecase)butalsotoensureachannelbetweentheprivateindustriesandfinalcustomers,sometimesbeingpartofthem.Costsstructure
Fixed costs (Negotiation of contracts, project development, legalization process,construction, commissioning, salaries, technological infrastructure, participatoryprocesswiththecommunity,monitoringandanalysis,maintenance).Variablecosts(marketing,incidentalsanddelays,changeoflackofhumanresources,energycost,ifsupplied).
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Barcelona.AManagementandControlSoftware:Avisualisationplatformto
assesstheimpactofenergyretrofittingmeasures
Measure:4.2.1IndustrialPartner:SchneiderElectricThis project comprehends only one measure, consisting in a software for datavisualizationforaBEMsystemtominimizeconsumptionsoffossilfuelsandelectricity.
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
Publicandprivateactors.Mainlyprivateactorswillingtoimplementthemeasureintheirbuildingsor
willingtoreselltheproducttoafinalcustomer.Schneidersellsasoftwarethat
othercompaniescould
incorporateintheirprojects.(Refurbishmentofbuildings/
newinstallations)
Monitortheenergy
consumptiontooptimizeenergymanagement.
Datavisualization.ThesoftwareisstrictlyrelatedtotheBEMsystem.
(1)Trackingenergyconsumptioninbuildingsandcalculationof
carbonandenergysavingscomparedto
baseline.(2)Validationandverificationof
energyandcarbonemissionsdueto
buildings’performance.
(3)Clearcommunicationsandcomparisonof
resultsacrossvariousEnergy
EfficiencyProjects.(4)Theprevious
resumedinreducingtheconsumptionsandincreaseenergy
efficiency
PublicsectorPrivatesector:•BuildingrefurbishmentandConstructioncompanies•Architects/engineering/energycompanies
(1)Privatesector:offices,malls,shops(2)Publicsector,
hospitals,schools,
ministries,CityHall…
KeyResources Channels•Communicationmodule•Counters•Sensors•EMS•Internetconnectedserver•Internetconnecteddevicestovisualizeservicefunctionalities
Specializedcontractors,ITspecialized
company.ItismainlyaB2Bmodel.FinaluserswithaBEMsystemcouldrequirethesoftwareaswell(B2C)
CostStructure RevenueStreams
Investmentcosts:Developmentthesoftwareandlicenses.
ThisSoftwareincreasesthecostoftheEnergyManagementSystemEMS
platform.
TheEMSissoldtofinalcustomerswhoareexpectedtorecoverthecostofthesolutionbystopping
unnecessaryenergyconsumptionidentifiedduringthemonitoringprocess.ThesystemREQUIRESasoftware
thecustomerpaysforthelicenses.
CustomerSegments
This product aims to satisfy the necessities of those customers needing a softwarecapable to visualize the data collected through a BEM system. In this regard, anycustomer of a BEM system, needs this software to be implemented within their
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installation. For this reason, privatemanufacturers of energymanagement systems,energyprovidersor related industries, couldbepotential customersof thisproduct.PublicadministrationshavealsotheirownbuildingswithBEMsystemsimplemented,beingpotentialcustomersaswell.ValueProposition
To bring a tool via software for optimizing operations of the buildingmanagementsystems.Thisisadatavisualizationsoftware.MakeasoftwareforGNFandIRECinthecaseofBarcelona,butinotherplacesaswellforevaluateandfollowtheprojectsandmeasuresrelatedwithconsumptions.Themainobjectiveofthesolutionistoreduceconsumptions(uptoalmost10%)byoptimizingenergymanagementand,atthesametime, and to evaluate the energy savings obtained thanks to these refurbishmentactions.Othervaluepropositionrecallsinthenewopportunitiesthatcanbegeneratedthanksofit,newopportunitiesinoptimizationandconsumptions.KeyActivities
Developing the software, keep improving it tomaintain competitiveness in front ofother similar software. In addition, the activities involved with the customerrelationship, in order to keep a satisfactory relation with the customer, sometimesindispensableforimprovingtheapplicationitself.Finally,thesellingprocessoftheapp.iscrucialtoextenditseffectivenessandmarketshare,givingitamainstreamuseandreducing its marginal costs. The more installations, the more sustainable is theimplementationofthemeasure.KeyResources
Financialresourcestocoverthedevelopmentandresearchcostsnecessaryforhavingarobustsoftware.Andforthedevolvingphases,humanresourceswithengineeringandinformatics/developerspecializations.Otherhumancapitalisalsorequired,intermsofmanaging people, administration and marketing. Finally, also considered as a keyresource,isthephysicalassets.Theonesrequiredtomonitorenergyconsumptionare:
• Communicationmodule• Counters• Sensors• EMS(EnergyManagementSystem)• Internetconnectedserver• Internet connected devices (PC, tablet or cell phone) to visualize service
functionalities
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KeyPartnerships
Theindustrialtechnologicalcompanydeveloperofthesoftware,andtheindustriesthatrequire to implement it. For instance, in the case of Barcelona, Schneider. Alsoimportanttoconsiderthefinalbeneficiariesforhavingthevisualizationtoolbesidestheenergycompanies(finalusersunderstoodasresidents).Publicandprivateactorsshouldcooperatetoincreasetheawarenessaboutimportanceofreducingtheenergyfootprint.Whilethepublicadministrationshouldtrytoreduceenergyconsumptionfosteringanefficientuseofenergythroughbuildingrefurbishmenttoachieveenvironmentalsafestandards,privatefirmsarewillingtoreducetheirenergycosttoincreasetheircompetitiveness.Coststructure
Sincethesemeasuresmustalwaysbecompaniedbyothermeasures,basically,aBEMSoraHEMS, the costsof implementing thisproduct shouldbeaddedwhenaprojectconsiderstoimplementsaidrelatedmeasures.Fromthepointofviewofthecompanyinchargetodevelopandselltheproduct,themaincostswillbethoseoriginatedforcreating the software: investment costs (developing it, paying licenses if theywere,salaries andminor related costs). Themeasure could be implemented separately orafterwardswhenothermeasuresarealreadybeenimplemented.Ifthisisthecase,areconsideredindividuallyforthismeasure,beingthemostimportantones,thecostsofdeveloping theappand selling it. Sinceothermeasures (hardware relatedones) arepreviouslyrequired,thecostsofsaidmeasuresarealsoimportanttobehighlightedinthis lines: Hardware related costs: communication module, counters, sensors andinternetconnectedserver.RevenueStreams
Revenues that come from selling the software. The product can be sold through asubscription feeor,morenormally,withasinglepaymentwithoutanytime limit forusingthesoftware.The Energy Management System is sold to advanced users (companies) who areexpected to recover the cost of the solution by stopping unnecessary energyconsumptionidentifiedduringthemonitoringprocess.Thesystemcanleadtoanalmost10%reductionintheenergyconsumptionofthebuilding.Thosesavingsshouldpay-offforthecostofBEMSservices.
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CustomerRelationships
Adviceandconstantcustomerservicebeforeandafterpurchasingthesoftware(incasethereisanyprobleminapost-purchaseimplementationphase.Channels
Channels based in a Business to Business Environment. The Building EnergyManagement System (including communication module, counters, sensors and theEnergy Management System) is installed by specialized contractors duringrefurbishmentofthebuildingandmonitorizedbyITspecializedcompany.Thesystemwill allow comparing energy consumptions of fossil fuels before and after therefurbishmentofatertiarybuilding.
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Cologne.ResidentialEstateManagement
City:CologneMeasure:4.1IndustrialPartners:RheinEnergieShort description: The solution consists of a virtual power plant (intelligentmanagementsystem)whichconnects localphotovoltaicproduction,heatpumpsandbatteries. The system optimizes energy and heat consumption by interconnectinginternal(photovoltaic,heatpumps,batterystorage)andexternal(districtheat)energyproducers.Additionally theproject includesalsothe integrationwithinthesystemofachargingstationforelectricvehicles(carsandpedalvehicles).Theprojectleadstoapartlyself-sufficientenergysupplythatresultinlesspressureonenergygrids,lowercarbonemissions,andfinallybetterairquality.
KeyPartners KeyActivities ValuePropositions
CustomerRelationships
CustomerSegments
(Cologne'smainindustrialpartners:
RheinEnergie);alsoconsiderequipmentand
softwareproviders,public
grid
Thegatheringofinformation
thoughmetersinstallation
Tooptimizetheenergyproduction
andconsumptioninordertoreducetheneedforexternal
energyfromthegrid
firmsofferingtheserviceshouldcontactand
approachfirmsofferingservicesto
finalclients
(1)Privatesector:a.RealEstatedevelopers
b.Constructioncompanies
c.Architectsandengineering
companiesofferingturnkeyprojects.
d.Dwellingscommunityowners(2)Publicsector
KeyResources Channels(1)Virtualpower
plant(2)ExternalandInternalenergy
producers(3)Smartmetersto
gatherinfo.(4)Batteriesforenergystorage
contractors,architectsorengineeringcompanies
CostStructure RevenueStreams
1.Hardwarerelatedcosts:meters2.Softwarerelatedcosts:intelligent
managementsystem3.Personnelcosts:monitoringofserviceandmaintenanceofthe
equipment
(1)Revenuesfromsellingtheservicetodwellings(2)Increaseintheenergyself-supplyreducingtheneed
forexternalenergy(3)Revenuescomingfromthefedintothepublicgridoftheexcesscurrentthatisremuneratedthroughthe
GermanrenewableenergyactEEG(4)Lesspressureonenergygridsforutilities
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Customersegments• Privatesector:
a. RealEstatedevelopers(theycanaddvaluetotheirdevelopments)b. Constructioncompaniesc. Architectsandengineeringcompaniesofferingturnkeyprojects.d. Dwellingscommunityowners
• Publicsector:Reducescarbonemissionsandimprovesairquality
Inbothcasestenantscanbenefitfromanincreaseinself-sufficientenergysupplyandreductioninenergyconsumptionandthereforeintheenergybill.Valuepropositions
Thevaluepropositionoftheserviceisofferingoptimizingenergyandheatconsumptionby interconnecting internal (photovoltaic, heatpumps,battery storage) andexternal(districtheat)energyproducers.Thesystemmeasurewhatenergy is currentlybeingusedwithineachapartmentandcanpredict futureenergyconsumption. Ituses thisinformationtooptimizetheenergyproductionandconsumptioninordertoreducetheneedforexternalenergyfromthegrid.TheexcesscurrentcanbesavedinstorageorfedintothepublicgridbeingremuneratedthroughtheGermanrenewableenergyactEEG.Channels
Intelligentmanagementsystem(orvirtualpowerplants),smartmeters,batteriesandinternalenergyproducersshouldbeinstalledindwellingsorbuildingsbycontractorsunder requirements of themain contractor, architect or engineering company. Thecontrol andmonitoring of the system should bedoneby theprovider of the virtualpowerplant.Alternativelyaprivatefirmcanofferturnkeyprojecttofinalcustomerandprovidethemtherequiredequipmenttooffertheservice.Customerrelationship
Thebusinessmodelconsistsonofferingaservicetofinalcustomersratherthansellingtheequipmentitself,asthemainaddedvalueisfoundontheintelligentmanagementsystem.Forthatreasonfirmsofferingtheserviceshouldcontactandapproachfirmsofferingservicestofinalclientsinwhomtheycanincludeenergeticservicestoaddvaluetotheirdevelopmentsorrefurbishmentsprojects.
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Revenuestreams
Therevenuesintheprojectareobtainedfrom:(1) Revenuesfromsellingtheservicetodwellings(2) Increase intheenergyself-supplyreducingtheneedforexternalenergyfrom
thegridandconsequentlyreducingenergycostforhouseholds(3) Revenuescomingfromthefedintothepublicgridoftheexcesscurrentthatis
remuneratedthroughtheGermanrenewableenergyactEEG(4) Lesspressureonenergygridsforutilities,reducingmaintenancecostsforthe
companiesKeyresources
Theassetsrequiredtomakethesolutionworkarethefollowing:(1) Virtualpowerplanttooptimizeenergyandheatconsumption(2) Externalenergyproducers:photovoltaic,heatpumps,batterystorage(3) Internalenergyproducers:districtheat(4) Smartmeterstogatherinformationinthebuilding(5) Batteriesforenergystorage
Keyactivities
Thegatheringofinformationthoughmetersinstallationinthebuildingtomeasurewhatenergy iscurrentlybeingusedwithineachapartment topredictandoptimize futureenergyconsumptionreducingtheneedforexternalenergyfromthegrid.Keypartnerships
Thefirmofferingtheserviceshouldcooperatewithequipmentandsoftwareprovidersforaproperfunctioningoftheservice.Itisalsonecessarytohaveagoodconnectionwiththepublicgridtofeeditwiththeexcessofelectricenergy.Anotherkeyissueistoprovideuserswithdetailedinformationaboutthebenefitsandcostreductionobtainedresultingfromtheservice.Coststructure
- Hardwarerelatedcosts:meters,- Softwarerelatedcosts:intelligentmanagementsystem- Personnelcosts:monitoringofserviceandmaintenanceoftheequipment
Revenuestreams
Thecompanychargesthecustomersfortheprovisionofservicethatincludestheleasingofallrequiredequipment,maintenanceandmonitoringenergymanagementsystem.
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Stockholm.EnergyHubbyL&T(ElectricalHub)
Measure:4.1IndustrialPartner:L&TTheprojectconsistsissimilartothoseoftheothertwolighthousecities,installinganenergymanagementsystemtomaximizetheinvestmentinsolarpowerinstallationsinpreviousdescribedbuildingsinthecityofStockholm
KeyPartners KeyActivities ValuePropositions CustomerRelationships
CustomerSegments
Publicandprivateactors.Mainlyprivateactorswillingtoimplementthemeasureintheirbuildingsor
willingtoreselltheproducttoafinalcustomer.Schneidersellsasoftwarethat
othercompaniescould
incorporateintheirprojects.(Refurbishmentofbuildings/
newinstallations)
Monitortheenergy
consumptiontooptimizeenergymanagement.
Datavisualization.ThesoftwareisstrictlyrelatedtotheBEMsystem.
(1)Trackingenergyconsumptioninbuildingsand
calculationofcarbonandenergysavings
comparedtobaseline.
(2)Validationandverificationofenergyandcarbonemissions
duetobuildings’performance.(3)Clear
communicationsandcomparisonofresultsacrossvariousEnergyEfficiencyProjects.(4)Theprevious
resumedinreducingtheconsumptionsandincreaseenergy
efficiencybyvisualizingtheresults
PublicsectorPrivatesector:•BuildingrefurbishmentandConstructioncompanies•Architects/engineering/energycompanies
(1)Privatesector:
offices,malls,shops
(2)Publicsector,
hospitals,schools,ministries,CityHall…
KeyResources Channels•Communicationmodule•Counters•Sensors•EMS•Internetconnectedserver•Internetconnecteddevicestovisualizeservicefunctionalities
Specializedcontractors,ITspecialized
company.ItismainlyaB2B
model)
CostStructure RevenueStreams
Investmentcosts:Developmentthesoftwareandlicenses.
ThisSoftwareincreasesthecostoftheEnergyManagementSystemEMS
platform.
TheEMSissoldtofinalcustomerswhoareexpectedtorecoverthecostofthesolutionbystopping
unnecessaryenergyconsumptionidentifiedduringthemonitoringprocess.ThesystemREQUIRESasoftware
thecustomerpaysforthelicenses.
Customersegments
Anybuildingwithenergyefficiencymeasuresandthenecessaryinfrastructurerequiredtomonitorand implementasoftware likethis. In this regard, itdoesnotmatter thetypologyofthebuilding,whetheritispublicorprivate.
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Valueproposition
Themainvalueproposition is toprovideandbuilda software capableofdisplaying,through different manners, the information about an energy management systeminstalled in a building and crucial to maximize the profits or saving generated byinstallingsolarphotovoltaicpanelsequippedwithbatteries (ElectricalHub)andothersolutions.Thesoftwareisrequiredtomaximizetheflowbetweensolarpanels,energystoragesystemsandthegrid. Insummary,thevaluepropositionistoofferatoolforanalyse, simulate and control a local electricity management system, for shavingconsumption peeks, optimize consumptions and implement an adaptive currentequalizationChannels
Themain tool to promote this solution consists in using the data collected and theresultsobtainedforthefirstbuildingswherethesolutions isbeing implemented(BrfÅrstakrönet)toextrapolatethemtoothersimilarbuildings,allowingthistodefinesomepreviousconclusionsabout thebenefitsof implementingenergyefficiencymeasuresandhowtooptimizetheconsumptionsandthegenerationofelectricity(photovoltaicpanels)foreachtypeofbuilding.KeyActivities
Developing the software, keep improving it tomaintain competitiveness in front ofother similar softwares. In addition, the activities involved with the customerrelationship, in order to keep a satisfactory relation with the customer, sometimesindispensableforimprovingtheapplicationitself.Finally,thesellingprocessoftheapp.iscrucialtoextenditseffectivenessandmarketshare,givingitamainstreamuseandreducing its marginal costs. The more installations, the more sustainable is theimplementationofthemeasure.KeyResources
Financialresourcestocoverthedevelopmentandresearchcostsnecessaryforhavingarobustsoftware.Andforthedevolvingphases,humanresourceswithengineeringandinformatics/developerspecializations.Otherhumancapitalisalsorequired,intermsofmanaging people, administration and marketing. Finally, also considered as a keyresource,isthephysicalassets.Theonesrequiredtomonitorenergyconsumptionare:
• Communicationmodule• Counters• Sensors• EMS(EnergyManagementSystem)• Internetconnectedserver• Internet connected devices (PC, tablet or cell phone) to visualize service
functionalities
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KeyPartnerships
Theindustrialtechnologicalcompanydeveloperofthesoftware,andtheindustriesthatrequiretoimplementit.InthecaseofStockholmthedeveloperoftheEnergyHubisthestart-upcompanyFerroAmpandthecompanyresponsibleofinstallingthesoftwareisL&Tbeingthemain industrialpartnersince is theone implementingthesolution forotherprojectswhereitisinvolved.Inaddition,isthecompanypromotingandboostingtheimplementationofthesolutioninthecityofStockholm.Finallynotetheimportanceofthefinalbeneficiariesforhavingthevisualizationtoolbesidestheenergycompanies(finalusersunderstoodasresidentsormanagersoftertiarybuildings).Coststructure
Sincethesemeasuresmustalwaysbecompaniedbyothermeasures,forexampleanenergymanagementsystem,thecostsofimplementingthissolutionshouldbeaddedtothosewhenaprojectconsiderstoimplementsaidrelatedmeasures,anditiswhathappensinthecaseofStockholmandL&T.Fromthepointofviewofthecompanyincharge to develop and sell the product, themain costs will be those originated forcreating the software: investment costs (developing it, paying licenses if theywere,salaries and minor related costs). However, the measure could be implementedseparatelyorafterwardsothermeasures.Ifthisisthecase,thecostsstructurehastobeconsideredindividuallyforthismeasure,beingthemostimportant,asmentioned,thecostsofdevelopingtheappandsellingit.Sinceothermeasures(hardwarerelatedones)arepreviouslyrequired,thecostsofsaidmeasuresarealsoimportanttobehighlightedintheselines(communicationmodule,counters,sensorsandinternetconnectedserver).RevenueStreams
Revenues that come from selling the software. The product can be sold through asubscription feeor,morenormally,withasinglepaymentwithoutanytime limit forusingthesoftware.Ifthedeveloperofthesoftwareisadifferentcompanythantheoneinstallingandimplementingit,thecompanydevelopingthesolutioncouldsellitentirelyto the installing company (to construction or energy companies), trespassing theintellectualpropertyandlicenses.The Energy Management System is sold to advanced users (companies) who areexpected to recover the cost of the solution by stopping unnecessary energyconsumptionidentifiedduringthemonitoringprocess.Fromthepointofviewofthecustomers,inStockholm,theideaisthatthecostoftheHubgradesolutionisgoingtobefullycompensatedbytheenergyandpowersavingsachieved.
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CustomerRelationships
Advice and constant customer service before and after purchasing/installing thesoftware (in case there is any problem in a post-purchase or implementation andmonitoringphase).
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WorkPackage3.Integratedinfrastructures
ThemainconclusionsfromWorkPackage3–IntegratedInfrastructuresdependontwomain groups of solutions. The first one involves interventions with physicalinfrastructureandthesecondonewithdatainfrastructures.Solutionswithphysicalinfrastructureinterventions(Solutions5to7)havethefollowingpotentialitiesandchallengesahead:
(1) Huge potential for energy, economic savings and creation of new markets. Withpotentials ranging between 20 to 50% of energy savings, new lighting systems canreducepublicexpenditurewhileofferingbetterservices.Inaddition,thesesolutionscanbe implemented using public-private-partnerships that reduce risks and initialinvestmentforthepublicsector.Regardingheatrecoveryanddistrictthepotentialforenergy saving is also veryhigh (around0.5 TWhannually in the caseof Stockholm).Furthermore,thebusinessmodeloflettingthedistrictheatingoperatorbuyexcessheatthroughaplug-andplayheatpumpsolution,andthensellittothecustomersneedingheatisacompletelynewbusinessmodelthatcouldopenupthedistrictheatingsystemstoanopenmarketofheatexchange.
(2) Hardinfrastructure,hardchallengesahead.Themajorityofthesolutionsrequirebiginterventionsinpublicspace,whichrisestwomainchallenges.Thefirstoneisdealingwithpublicsectorrequirementsregardingpermitsoraestheticalnorms.Thesecondonedealswithpotentiallyhighinitialinvestmentcosts,especiallywhenthesolutionhastobeescalatedatthecitylevelafterthedemonstrationphase.Thissecondchallengecanbemitigatedbyfollowingapublic-privatepartnershipschemawheretheriskandinitialinvestments are transferred to the private sector in exchange of the exploitation ordurationofthecontract.
(3) Highpotentialforbetterqualityoflife.Fromthesocialpointofview,allthesolutioncan foster better quality of life in European cities. Ranging from better and moreefficientlighting,toretrofittingofDistrictHeatingsystemsandlesswastetrucksinthestreet, all the solutions contribute to lessnoiseand lesspollution (both inemission,noiseandluminesceterms).
(4) Mediumpotentialforjobcreation.Sinceallthemeasuresinthisgroupneedtodealwith physical infrastructure, they will create jobs during implementation phases.However,theywillalsocreatemorespecializedjobstomainandsolveproblemswiththedeployedinfrastructure.
Regardingthesecondgroupofinterventions(Solutions8),thisareourmainconclusions:(1) Dataisoneofthemaindisruptionsinourtimes.Theavailabilityofdata,theavailability
ofnewmethodologies and the computational capacity available todayoffers ahugeamount of opportunities both for cities and companies or citizens. Thanks to theubiquityofsensorsanddataproducedbypublicworkflows,citieshavehugeamountofdata that can be extremely useful for them –in terms of internal use- but also for
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companiesandcitizens–bothineconomictermsandinfosteringtransparencyofpublicadministrations-.
(2) Big Data and Bad Data. We have concerns with data quality or ineffective datagovernanceasanobstacle.Whilehavingplentyofdataisgoodnews,insomecasesthequalityandaccuracyofthedatacanleadtobaddecisionsifitisnottakenintoaccount.Inasimilarway,ifcompaniesorcitizensaccesspublicdatathroughOpenDatawebsitesthatisnotgoodenough,theywillprobablynotdoanythingwithit.
(3) Dataisnotthebiggestobstacle.Whiletechnologyordatacanseemthemainbarrierorobstacletotheeffectiveimplementationofthesemeasures,therealityisthatgettingitdoneisnotthemainchallenge.Theadoptionbarriersthatorganizationsintheprivateandpublicsectorarefacing–inotherwords,thehumanfactor-isthebiggestobstacleforthefullpotentialdeploymentofthesemeasures.Thelackofunderstandingonhowto use this data, the bureaucratic workflow or the organization culture need to beadaptedtothenewdataparadigm.
(4) Lowpotentialfor(direct)jobcreation.Dataandsoftwarerelatedindustriesarenotjob-intensive.Inthatsense,thepotentialforunemploymentreductionthroughthemassiveimplementationofthesemeasuresisdubious,atleastdirectly.Wesaysobecausethequalityofjobsinthedataindustrytendtobehigherthaninothersectors,whichmeansthatthewholeeconomycanbebenefitedbycreatingjobsinrelatedindustriesorotherservicesthatwillleverageonmoreskilledandbetterpayedworkforce.
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Solution 5. Smart Street Lightning
Street lighting keeps urban centers safe, but traditional lampposts consume hugeamountsofenergy.CombiningenergyefficientLEDbulbswithmotionsensorswillallowlamppoststodimwhennobodyisaroundandbrightenupaspeopleapproach.What’smore, by using lampposts as communications hubs and EV charging points, thelighthousecitieswillgetmorefortheirmoney.Publicspaceisoneofthemainresourcesavailabletocitizensincitiesallovertheworld.Public space is key for people and goods transportation, socialization or recreation.However,citiesareconstrainedbytheirphysicaldimensionandthuspublicspaceisascarce resourcewith competing uses. At the same time, lighting is one of themainservicesprovidedbycities.Lightingallowsustoenjoyandusepublicspaceona24hbasisandprovidessecurityduringdarkhours.Asa counterpart,providing lighting toanentire cityhasbig implications in termsofenergyandspaceconsumption.Themeasuresincludedinthissmartsolutiondealwithboth problems: saving public space and reduce energy consumption. Since thisproblematic is transversal to all cities, a proper implementation of these kind ofsolutionscoulddelivergoodresultsbothintermsofenergyconsumptionreductionandpublicspacesaving.InBarcelona,municipalservicesaimtocreateanimageofthecityatnightthatstrikesabalancebetweenfunctionandstyle.Inordertomovetowardsamoresustainableandefficient city, they are incorporating new lighting technology, such as LED, but alsomanagementelementssuchasregulation,thepossibilityofremotecontrol,andnewtechnologicalsolutionsingeneral.Thecurrentlightingcriteriaareaimedatcaringforpedestrians, integrating sustainable mobility, reconsidering the urban greeninfrastructureandenhancingclassicoriconographicarchitecturalvalues.Barcelonahasmorethan146,000pointsoflight,includingstreetandartisticlighting;anunbalanceddistributionwhichisthefruitofurbanrenovationsandisolatedmaintenance,leadingtoawidevarietyofcriteria,modelsandresults.ProjectswithsmartstreetlightingareongoinginseveralpartsoftheCityofStockholm.ThegoalistohalvethecostofelectricityforlightingusingLEDtechnologyandmotionsensorswhichallowlightat fullstrengthwhensomeoneapproaches.TheTrafficandWaste Management Administration have also initiated tests to control the lightingwhereeachlampiswirelesslyconnectedviaaso-calledmeshnetwork.ConclusionsregardingtheBusinessModelsrelatedtosolution5.
Themajorityofmeasures implementedunder theSolution5–SmartStreetLightingumbrellarelyonpublicspaceinterventions.Thismeansthattheindustrialpartnersneedacloserelationshipwiththepublicsector(theultimateownerofpublicspace).Thisfactpresentsatwo-sidedsituation.Inthefirstplace,todelivertheirvaluepropositions,thisbusinessmodelsneedtointeractwithpublicsectorauthoritiesandbeadaptedtolocalregulationsregardingpublicspaceanddesign.
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Byprovidingintegratedsolutionscitiescansavespacebyleveragingonhardwareandlamppost designed to provide multiple services in one single location, avoiding thespread-outofdifferentpublicspaceinterventionsforeachpurpose.Atthesametime,theintroductionofnewlightingtechnologies–LEDs,sensors,etc.-canderiveinenergysavingsbyabettermanagingofthesystem.Thisbenefitsareprovidedbylow-energylightingprovision,remotecontroloftheinfrastructureforinteractionandincidencestrackandadaptivelightingtospecificconditions.Intermsofscalabilityandreplicationthefactthat industrialpartnersneedtohaveaclose relationship with the public sector will trigger the implementation process asnegotiationswith the City Councils need to be carried out city by city to adapt theproducttolocalspecificities.Ontheotherside,thepositivecommentisthatoncethisinitialbarrierissolved,thesolutioncanbeimplementedinamassivewaybychangingthelightingsystemsinbigareasorevenentirecities.Another important take-away from these measures is that they can be deliveredthrough public-private partnerships. Thanks to the energy savings produced by thetechnology implemented in these measures, private partners can internalizeinvestmentscostsandrecoverit(plusprofits)viaenergysavings.Regardingjobcreation,thistypesofmeasureshavethepotentialtocreatemanyjobs–especially during the implementation phase and the public space intervention-. Inaddition, the lighting system also requires human intervention formaintenance andcontrol.
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StockholmSmartLEDstreetlighting
Measurerelated:5.1Industrialpartners:CityofStockholm,TrafficAdministrationMeasuresincluded:5.1.1;5.1.2and5.1.3SummaryofBusinessModel: SensorcontrolledLEDlightingforpedestrianandbicyclepaths(SensorcontrolledLEDlightingforpedestrianandbicyclepathstoenablethelightstoprovidebaselightingtosatisfythefeelingofsecurityatalltimesandincreasetheleveloflightingwhensomeoneapproaches).Self-controlledLEDstreetlighting(Self-controlledLEDstreetlightingwithpre-set lightingschemesbasedon levelsof traffichas thepotential tosavingenergycompared to regular LED light). Remote controlled LED street lighting (RemotecontrolledLEDStreetlightingwhichcanbecontrolledfromadistance).
Customersegments
TheSmartLEDstreetlightingmaincustomersegmentisthepublicsector(CityCouncilorthespecificdepartmentinchargeofthecitylightingsystem).Valuepropositions
Thevaluepropositionofthismeasureistosaveenergybymanagingbetterthelightingsystemofthecity.ThankstothesensorsdeployedandLEDtechnology,citymanagerscanoptimizethelightingpowerbasedonexternalconditionslikeclimateorpedestrianspassing-by.
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Channels
Thesystemdeployedhasacontrolsystemsoftwaretomanagethepowerandsituationofeachlightingpole.Customerrelationship
The customer relationship is based on email connections and telephone calls formaintenanceandproblemsolving.Revenuestreams
Thismeasurecanbemonetizedbothbydirectpurchaseoftechnologyorbypayingafeeforsystemdeploymentandmaintenance.Keyresources
• Physicalassets(sensorsandlightingpole)• Humanresources(formanagingthecontrolsystem)• DigitalIOTplatform(forinteractingwithdeployedinfrastructure)
Keyactivities
• Installingandmaintaininglightinginfrastructure• Managingthelightingcontrolsystem
Keypartnerships
• EnergyProviders• PublicSector• Hardwareproviders
Coststructure
• Hardwaremaintenance• Deploymentcosts
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BarcelonaSmartMultifunctionalTower
Measurerelated:5.2IndustrialPartners:CellnexSummaryofBusinessModelSolution to save energy & rationalize the use of public space by the integration oflighting,environmentalsensorsandcommunicationsdevicesinasinglelightingpole.
Customersegments
• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures
• ConnectedServices:privatecompaniesthatwanttooptimizetheiroperationsand hardware deployment by leveraging on existing infrastructure andconnectivityservicesintegratedintotheSmartMultifunctionalTower.
Valuepropositions
ThevaluepropositionoftheSmartMultifunctionalToweristooptimizepublicspacebyintegrating different services (mainly lighting, sensoring and connectivity) into onesinglepole.
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Channels
ThemaincommunicationchannelwillbeanAPIinterface(measure8.5integratedintomeasure8.1)toremotelycontrolthelightingpoleandtheirconnecteddevices.Customerrelationship
The customer relationship will be through email and the usual channels forinfrastructureproviders.Revenuestreams
TheSmartMultifunctionalTowerhastwomainrevenuestreams:publiccontractandconnectivityasaservice.Thefirstone,istheusualpubliccontractforinfrastructureandhardwareprovisiontothepublicsector.Inaddition,oncethepolehasbeendeployed,theindustrialpartnercanleverageonanotherrevenuestream:connectivityasaservice.Thankstotheconnectivitypossibilitiesofthelightingpole,itcanbeusebythirdpartiesto connect their devices (mainly sensors) without deploying new connectivityinfrastructure.
Keyresources
PhysicalassetslikeLPWAandWi-Ficonnectivitydevicesorthelightingpole.
Keyactivities
-Lightingprovision-Transferringandmanagingdataobtainedbyenvironmentalsensors-ConnectivityprovisionKeypartnerships
-Localauthorities/citymanagersandadministrators-ThirdpartytechnicalcompanieswithconnectionneedsCoststructure
(1)Fixedcosts:-Hardwarerelatedcosts:lightingpoleandconnectivitydevices(2)Variablecosts:-Physicalmaintenanceofthepole
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CologneCombinedelectricalchargingandstreetlightingpoles+Wifi-to-grid
connection
Measurerelated:5.2Industrypartners:RheinEnergieSummaryofBusinessModelSolution to save energy & rationalize the use of public space by the integration oflighting,electricalchargingandcommunicationsdevicesinasinglelightingpole.
Customersegments
• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures
• Privateusers:electricalvehicleusers• ConnectedServices:privatecompaniesthatwanttooptimizetheiroperations
and hardware deployment by leveraging on existing infrastructure andconnectivityservicesintegratedintotheSmartMultifunctionalTower.
Valuepropositions
Thevaluepropositionof thecombinedelectrical chargingandstreet lightingpoles+Wifi-to-grid connection is to optimize public space by integrating different services(mainlylighting,electricalchargingandconnectivity)intoonesinglepole.
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Channels
ThemaincommunicationchannelwillbeanAPIinterfaceforlightingandWi-Fiservicesandadirectprovisionforelectricalchargingservices.Customerrelationship
The customer relationship will be through email and the usual channels forinfrastructureprovidersandserviceproviders(electricalcharging).Revenuestreams
Thecombinedelectricalchargingandstreetlightingpoles+Wifi-to-gridconnectionhastwomainrevenuestreams:publiccontractandserviceprovision(payperuse).Thefirstone,istheusualpubliccontractforinfrastructureandhardwareprovisiontothepublicsector.Inaddition,oncethepolehasbeendeployed,theindustrialpartnercanleverageonanotherrevenuestream:payperuse.Thankstothecapabilityforprovidingelectricalcharging, thepole canbemonetizedbyuserpaymentsevery time theycharge theirelectricalvehicles.Keyresources
Physicalassetslikethelightingpole,connectivitytoWi-Finetworkandconnectivitytotheelectricalgrid.Keyactivities
-Lightingprovision-Electricalchargingstation-ConnectivityprovisionKeypartnerships
-Localauthorities/citymanagersandadministrators-Energyprovidersforelectricalcharging-ThirdpartytechnicalcompanieswithconnectionneedsCoststructure
(1)Fixedcosts:-Hardwarerelatedcosts:lightingpole,energygridconnectionandconnectivitydevices(2)Variablecosts:-Physicalmaintenanceofthepole
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StockholmSmartConnectedCityEnvironment
Measuresrelated:5.2Industrialpartners:CityofStockholm,IBMShortDescription: TheSmartConnectedStreetEnvironmentisaprocessthatinvolvesthefollowingsteps:
• Defineusersand theirneeds fordata collectionandadaptive steering inCityenvironments
• Analysetheexistenceofopticalfibreandelectricity
• ProcuresensorsandInternetofThings(IOT)platformtobeabletobothcollectdata,butalsoforapplicationsandadaptivesteeringofstreetenvironments
• InstallandconnectthesensorstoanIOTplatform
• Analysedataanddevelopapplications/solutionsintheplatform
• Test and evaluate applications in the connected street environment to getinstantfeedbackontheirperformance
Inthiscontext:
• 10 sensors for collecting vehicle flow data is implemented inSlakthus/Globenarea.Thesesensorsareconnectedtotheexistingopticalfibernetworkinstreets.
• 45sensorsforcollectingpedestrianandbicycleflowdataisimplementedintheSlakthus/Globenarea.Thesesensorsareconnectedtoexistingopticalfiberincityownedbuildings.
• Real-timedatafromthesensorsareintegratedintoIBM’sIOTWatsonplatform.• Otherdatasourcessuchasweatherdatacanbeintegratedinthesameplatform• Thecityfunctionsaddressedisfirstlimitedtotransportrelatedissues,suchas
traffic analytics, predictions, pedestrian, bicyclist street lights steering,maintenanceofstreets,trafficlightsteering
TheopticalfibernetworkcompanyStokabisfirstlocatingpossiblepointsforsensors,basedonexistingfibernetwork(instreetorbuilding).Theneedanduseofsensordataisdefinedby theTrafficAdministration,whichprocures the sensors. Stokaband theTrafficAdministrationprepareforinstallations.The procured company install the sensors and make sure that data transfer andintegrationissuccessfulintotheIBMIOTWatsonplatform.Realtimedataisusedtoanalysetransportemissionsinarea.Active measures and steering of for instance street lights, traffic lights, streetmaintenance, parking is performedbased on the real-timedata to reduce transportemissionsandincreasepeopleflowinthearea.
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Customersegments
• CityAdministrations• Publicadministrations• Cities/communities• Realestateowners• Serviceprovidersforwhomaccurateinformationaboutpeopleflowisessential
forthebusiness
Valuepropositions
• Forthecity/community:ThesensordataaswellasIOTplatformcanbeusedformany functions,will increase insightof trafficandpeople flow,giveexactbaselinesfortransportemissions,giveagoodbaseforproblemanalysisaswellas for testing and evaluation methods to reduce transport emissions trafficcongestion
• For realestateowners:will give informationaboutpeople flow inandoutofbuildings,butalsoifcertainstreetsorareasaremorefavouredthanothers,giveagoodbaseforfindingsolutionstoincreaseattractivenessandpeopleflowinandoutofbuildings
• Forserviceproviders:Givesinformationaboutpeopleflow,andhowdifferentfactors are affecting it (such as weather, street maintenance, well-litenvironments)butalsohowreachablethelocationis,howeasyitistoaccessbydifferentmodesoftransport,thisinformationwillhelptheserviceproviderinmakingsurethatresourcesandopeninghoursaswellasservicequalityiskeptonanoptimallevel.
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Channels
Themaincommunicationchannelwillbeawebsite.Customerrelationship
Thecustomerrelationshipwillbethroughcityinterestgroups,marketingandevents,andworkshops.Revenuestreams
The Smart Connected City Environment will have no revenue streams as the datacollectedbythecitywillbeopendatafreetousebyprivateactors.Keyresources
• Physicalassets(opticalfibernetwork,wirelessnetwork,electricity,sensors)• Humanresources• DigitalIOTPlatform• Technologycapability
Keyactivities
• Selectandimplementsensorsfortrafficandpeopleflowdatacollection• IntegrateandsecuredatatransfertoIOTplatform• Analysetrafficandpeopleflows,• Select,testandevaluatemethodstoreducetransportemissions• Steerstreetlights,trafficlightsandmaintenancetosecuregoodandsecureflow
oftraffic/people.Keypartnerships
• Stokab• Cityauthority(user)• Technologyproviders(sensors,platforms)• Municipalgovernment(policydecisiontotrafficplanning)
Coststructure
• Fixed costs (depreciation of fixed assets, salaries, technological infrastructureandrunning(overhead-)costs,maintenance)
• Variablecosts(marketing,energy,etc.)
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BarcelonaSmartmeterinformationanalysisandactuators
Measurerelated:5.3Industrypartners:EndesaSummaryofBusinessModel:Thecreationofa“DataHub”,namedMultiserviceConcentrator(MSC),whichwillserveasadatanodecollectingandmanagingcitydata.Thedatawillbeusedtointegrateandoptimiseseveralutilities,toobtainincreasedefficiencyininfrastructures,andtocreatenewsmartgridservices.
Customersegments
• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures
• Tenants/citizenswhowanttooptimisetheirutilities’consumption• Private sector / third parties that want to develop new business model
developmentusingthedatacollected
Valuepropositions
ThevaluepropositionoftheDataHubisthreefold:• tocontributetothecity’sdevelopmentinenergyefficiency• toprovidegreaterawarenessofenergyconsumptionandenablingtenantsto
managetheirownconsumption• the development of new added value energy services and apps using the
informationcollected
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Fixedcosts:Hardwarerelatedcosts(serversandphysicalinfrastructuremaintenance),Softwarerelatedcosts(platformmaintenanceanddatamanagement),
Personnelrelatedcosts(salaries)(2)Variablecosts:Salesandmarketing
Tochargesomecostforthesmartmetersandsensorsandtheirinstallationandmaintenance.Tochargemoreflexibletariffstructures.Thedata
collectedcanbeexpandedintootherapplicationsandservices
1.Localauthorities/citymanagersandadministrators
2.Utilities’companies3.Thirdpartytechnical
companies
CollectingandupdatingdatatotheplatformandtransferringandmanagingthecitydatafromtheMSCtotheplatformandfromtheplatformtotheSmartcityAppsandServices
(1)tocontributetothecity’sdevelopmentinenergyefficiency
(2)toprovidegreaterawarenessofenergyconsumptionandenablingtenantstomanagetheirown
consumption(3)thedevelopmentofnewaddedvalueenergyservicesandappsusing
theinformationcollected
Thenewenergyservicesandappsofferthe
opportunitytohaveamoredirectconsumer-orientedbusinessmodel
andredefinetheutility/customerrelationship
(1)Publicadministration/municipalities
(2)Tenants/citizens(3)Privatesector/third
parties(1)Physicalassets(includingtechnologicalinfrastructure
andsoftware)(2)Humanresources
(technicalknowledgeandexpertise)
CityPlatformGrowSmarter
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Channels
The main communication channel will be the City Platform, called GrowSmarterPlatform,whichwillprovidedirectaccesstotheenergydata.TheMSC,installedatthesecondary substation, collects data from the different field components and thentransfersittotheGrowSmarterPlatformthroughacentralsystem(EndesaPlatform).Themaincommunicationtechnologiesare:Radiofrequency(RF)andPLC(PowerLineCommunication).Customerrelationship
The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams
Smartmeters and the integration andoptimizationof the infrastructureof differentutilities offers several opportunities to create new revenue streams. First, they cancharge some cost for the smart meters and sensors and their installation andmaintenance.Itcaneitherbeaone-timesaleorthrougharenting/leasingschemethatwill allowcustomers touse the smartmeters (whichwill in turnallowcustomers toreducetheirenergyconsumptionandcost).Second,thenewintegratedinfrastructureandmore accurate information on energy consumptionwill allowutilities to chargemoreflexibletariffstructures.Inthissense,thebenefitsintermsofenergyefficiencyand climate changemitigation thanks to abetter integrationof energydemandandenergygenerationcanbring importantefficiencies tomunicipalities, tenantsandthesocietyasawhole.Lastly,thedatacollectedbytheDataHubcanbeexpandedintootherapplicationsandservices,whichwillallowutilitycompaniestohaveadditionalrevenuestreams.Keyresources
(1)Physicalassets,includingtechnologicalinfrastructureandsoftware:a.SmartMeters(electrical,gas,water,heating,cooling)b.Urbanandenvironmentalsensorsandactuatorsc.DataHub,composedofanMSCinstalledatthesecondarysubstationd.Platforme.EnergyServicesandApps(2)Humanresources(technicalknowledgeandexpertise)Keyactivities
-Collectingandupdatingdatatotheplatform-TransferringandmanagingthecitydatafromtheMSCtotheplatformandfromtheplatformtotheSmartCityAppsandServices
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Keypartnerships
-Localauthorities/citymanagersandadministrators-Utilities’companiesandthirdpartytechnicalcompaniesCoststructure
(1)Fixedcosts:-Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenance-Softwarerelatedcosts:platformmaintenanceanddatamanagement-Personnelrelatedcosts:salaries(2)Variablecosts:-Salesandmarketing
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CologneSmartMetersandActuator
Measuresrelated:5.3Industrypartners:AGT,RheinEnergieSummaryofBusinessModel:Many of resident houses or flats will be equippedwith SmartMeters or evenwithSmartPlugsmeasuringthepowerandheat/coolingconsumption.Thiswillinformthetenantsabouttheirconsumptionsandfostertheirawarenessforenergyconsumptionreduction.
Customersegments
• Publicadministration/municipalitiesthatwanttoimprovetheefficiencyoftheirinfrastructures
• Tenants/citizenswhowanttooptimisetheirenergyconsumption• Private sector / third parties that want to develop new business models
developmentusingthedatacollectedValuepropositions
ThevaluepropositionoftheSmartMetersandActuatoristwofold:• tocontributetothecity’sdevelopmentinenergyefficiency• toprovidegreaterawarenessofenergyconsumptionandenablingtenantsto
managetheirownconsumption
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Channels
Themaincommunicationchannelwillbeemailandtelephone.Directlytotheserviceprovidersortotheutilitycompany(dependingonthebusinessmodelspecification).Customerrelationship
The new energy services and apps offer the opportunity to have a more directconsumer-orientedbusinessmodelandredefinetheutility/customerrelationshipwithacloserrelationshipbetweenutilitycompaniesandtheircustomers.Revenuestreams
Thenewinformationonenergyconsumptionwillallowutilitiestochargemoreflexibletariff structures. In this sense, thebenefits in termsofenergyefficiencyandclimatechange mitigation thanks to a better integration of energy demand and energygenerationcanbringimportantefficienciestomunicipalities,tenantsandthesocietyasawhole.Lastly,thedatacollectedisexpectedtoreducetenants’energyconsumptionbygivingawarenessoftheirconsumptionpatternsandcomparisonswithothers.Keyresources
(1)Dataprovidedbyhardwaredeployedathomes(2)Humanresources(technicalknowledgeandexpertise)
Keyactivities
-Collectingandupdatingdatatotheplatform-Transferringtheinformationtotenantsand/orutilitycompanies
Keypartnerships
-Localauthorities/citymanagersandadministrators-Utilities’companiesandthirdpartytechnicalcompanies-Privateusers:tenantsand/orcitizens
Coststructure
(1)Fixedcosts:-Hardwarerelatedcosts:serversandphysicalinfrastructuremaintenance-Softwarerelatedcosts:platformmaintenanceanddatamanagement-Personnelrelatedcosts:salaries(2)Variablecosts:-Salesandmarketing
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Solution 6. Waste Heat Recovery
Citiesconsumeovertwo-thirdsoftheworld'senergyforfeedingtheireconomic,socialand human activity. Moreover, especially in cold weather locations, energyconsumptionspikesduring fallandwinterperiods.At thesametime,severalhumanactivitiesproduceexcessheatwhileoperating.However,thisheatexcessisrarelyusedbecause the distribution grids are too small or because the heat provider has amonopoly.OpenDistrictHeatingisaconceptforenergyre-usetoadistrictheatingnetworkoradistrictcoolingnetwork.TheOpenDistrictHeatingconceptmakesitpossibletorecoverwasteheat(forexamplefromDatacentersandSupermarkets)thatotherwisewouldbelostviacoolingtowerstotheatmosphere.Inthissolution,wasteheatisbeingrecoveredfromarangeofdifferentsourcesanddeliveredtothedistrictheatingsystemtoprovideheattowarmupbuildings.InthecaseofStockholm,theDistrictHeatingsystemsuppliescentrally-heatedwatertoproperties.Hotwateristransportedinasystemofwell-insulated,high-pressurepipes.Thewaterisbetween65and120degrees,dependingonthetimeofyearandweather,andissuppliedtosubstationsineachproperty.Theseunitsarefittedwithheatpumpsthatusethehotwatertoheatbuildings’radiatorsandhotwatersupply.Districtheatingcurrently supplies half of Sweden’s total heating requirement and it continues toexpand.Fortumsuppliessome90percentofgreaterStockholm’sheatingneedswithdistrictheating.AsforBarcelona,theDistrictHeatingsystemiscalledDistriclima.AndoperatesintheForumand22@districts.DistriclimahasoneproductionplantintheForumarea-thatusessteamcomingfromaurbanwastetoenergyplantandrefrigeratestheequipmentswithseawater-andasecondproductionplantinthe22@district.Itprovidesheattomorethan90buildings,savingmorethan17,500annualtonsofCO2andthisabout60%byreducingtheconsumptionoffossilenergies.Nowadaysover870,000m2ofroofareheatedwithcontractedpowerover55MWto80MWforheatandcold.ConclusionsregardingtheBusinessModelsrelatedtosolution6.
Cities have plenty of heat excess sources, from supermarkets to data centers orindustrialactivity.Infact,manyoftheseactivitiespaytogetridoftheextraheat.Thistraditionalmodelcanbechallengedandimprovedbyusingtheextraheattoretrofittheexisting District Heating system. The business model of letting the district heatingoperatorbuyexcessheatthroughaplug-andplayheatpumpsolution,andthensellittothecustomersneedingheatisacompletelynewbusinessmodelthatcouldopenupthe district heating systems to an openmarket of heat exchange. Thiswill allow totransformcoolingcostsintorevenuestreamsfromheatrecovery.Thebusinesscasewillimprovefurtherinthenearfuturewhenfreezersarerenewed,usingCO2-technology,whichdeliverswasteheatat80°C.Thisheatcanbefeddirectlyintotheoutwardstream.This system can help achieving environmental goals by leveraging on existing heatexcessandrecoveringittofeedtheheatingsystem.
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Regarding the scalability and replicability of the solution, we should mention somechallengesahead.Whileitistruethatthemajorityofcitiesaroundtheworldhavethenecessity of providing heat for housing and water supply, the solution faces twochallenges.Firstofall,thereisthepossibilitythatnewandfuturelow-energybuildingswillbecompletelyindependentfromheatgrids.Byinvestinginmoreisolatedstructuresandhyperlocalenergyproduction(e.g.solarpanels),buildingscouldgenerateenoughheatforthemselves.Ontheotherside,ifthepreviousstatementisnotapossibility–forexample,duetoextremeweatherconditions-thereisanotherchallengetobesolved:theexistenceof aDistrictHeating system.This fact implies that the replicabilitywilldepend on the existence –or not- of a District Heating to leverage on heat excessproducednearenoughtobeeconomicallyviabletoinjectintothesystem.Finally,intermsofjobcreation,Solution6-Wasteheatrecoverycanbebeneficial.Sincetheimplementationofthesolutionrequiresphysicalinfrastructure,workplaceswillbecreated during the implementation face. Besides, the system will need specificmaintenancethatwillderiveinmorejobcreation.
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StockholmOpendistrictheatingusingwasteheat
Measuresrelated:6.1.1and6.1.2Industrialpartners:FortumShortDescription: Wasteheatwillberecoveredfromdatacenters(Installationofheatrecoveryequipmentin order to recover heat from the cooling process of a datacenter to the districtheating/coolingsystem)andfridgesandfreezersinsupermarkets(Installationofheatrecoveryequipmentinordertorecoverheatfromthecoolingprocessofasupermarkettothedistrictheating/coolingsystem).
Customersegments
• Datacenters• Supermarkets• Switchgearsubstations• Otherbusinessetc.
Valuepropositions
• FortheCity/Community:Heatingforthecitizensisprovidedfromrecoveredheat
• ForCustomers(heatsuppliers):o ImprovedOPEXforcoolingandgainrevenueforexcessheato Improvedcooling standardand redundancy (often thecase sinceheat
pumpinvestmentisanaddontoexistingcoolingpark)o Environmentalprofilingandcontributiontoamoresustainablecity
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Channels
• Directsales• Website• ExistingDistrictheating/coolingcustomers• Datacentercoolingequipmentsuppliers(resellerofOpenDistrictHeating)• Datacenternetworks
Customerrelationship
• OnebyOne• Marketing&Publicity
Revenuestreams
• Districtheatingsale• Avoidedotherheatproductioninourownplants• MonthlyconnectionfeetotheDistrictHeatingnetwork(duetoourpipeinvestments)• Marketing,torecoverheatinbigscalestrengthentheprofileoftheCompany
Keyresources
• PhysicalassetsinformofDictrictHeatingnetwork• Human resources in form internal knowledge where and how to connect a
productionunittoD.H.network• Costefficientprocesstoconstructofpipes• Transparentandsaleablebusinessmodelandpricestructuretothemarket
Keyactivities
• Installationofproductionunitatthesupplier(oftenheatpumps)• Buildingpipestoconnectproductionunittothedistrictheatingnetwork• Startoperation• Deliverheat(Supplier)• Paymenttothesupplierfordeliveredheat(FortumVärme)
Keypartnerships
• Frameagreements/partnersforconstructingpipes• Permitsandusufructagreementstowardsthecityandfacilityowners• Datacentercoolingequipmentsuppliers(resellerofOpenDistrictHeating)• Districtheatingandcoolingcustomers
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Coststructure
• Depreciationofpipeinvestment• Paymentfordeliveredheat• Administrationcosts
BarcelonaSmartlocalthermaldistricts
Measuresrelated:6.3Industrialpartners:Irec,BarcelonaCityCouncilShortdescription:Re-designationofanindustrialbuilding(CalAlier)intoaninnovationcenterwithanearlyzeronetenergybuilding(NZEB)criterion.Thisfacilitywilluse:
• On-siteelectricitygeneration.Photovoltaicpower(85kWp)• Connectiontothedistrictheatingandcooling(DHC)networkthatrecoversheat
fromurbansolidwastetreatmentplant• Installation of an energy management system that is capable of optimizing
consumptionaswellasforecastingthebuildingload
The project uses a Public – Private Partnership framework industrial buildingrefurbishment in the city and it should be a reference for industrial buildingrefurbishmentinthecity.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
•Hardwarerelatedcosts•Personnel:Installationandsupervision
Thereductioninenergyconsumptionshouldleadtoreductionsintheenergybillthatshouldcompensatefortheinvestmentpayments
(1)Buildingowners(2)Facilitymanagers(3)Citymanagingthedistrictheatingsystem(4)Electricityretailers
(5)Constructioncompany(6)Architectsand
engineers
thecompletionofthewholeprojectandaperfect
coordinationofthewholesysteminthefacility
toachieveanearlyzeronetenergybuilding(NZEB)byusing
photovoltaicpanels,connectiontoDistrictHeatingandCoolingnetwork,andenergymanagementsystem.
(1)Privatesector:•Realestatecompanies•Constructioncompanies
•Architectsandengineeringcompanies
(2)Publicadministration
•Privatebuildings(1)Factories
(2)Officebuildings(3)Shoppingmalls
(4)Schools•Publicbuildings(1)Ministries(2)Hospitals(3)Schools
•Photovoltaicgenerator•Energymeter
•Distributionnetworkforheating&cooling
•ConnectionstotheprimarycircuitoftheDistriclimanetwork
•DHCnetwork•Electricchil lermachinescooled
byseawater•Buffertankofcoldwater
manufacturers’distributors,contractorsandarchitects
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Customersegments
Besidesrefurbishedindustrialbuildingsthissolutioncanalsobeimplementedat:
• Privatebuildings• Factories• Officebuildings• Shoppingmalls• Schools
• Publicbuildings
• Ministries• Hospitals• Schools
UsingthissolutioninstallationofcoolingtowersisavoidedasubsequentlyeliminatingtheriskofLegionnaires'disease.Valuepropositions
Thissolutionaimistoachieveanearlyzeronetenergybuilding(NZEB)byusingphotovoltaicpanels,connectiontoDistrictHeatingandCoolingnetwork(thatrecoversheatfromurbansolidwastetreatmentplant),andenergymanagementsystem.Channels
Theprocurementofthematerialsandequipmentisdonethroughthemanufacturers’distributorsinthecountryandinstalledbycontractorsworkingundersupervisionofthemaincontractorandarchitect.Customerrelationship
• Privatesector:• Realestateandconstructioncompanies• Architectsandengineeringcompanies
• PublicadministrationThesefirmscanpromotetheinstallationofthissolutionalsoamongfinalusersasitwillreduce energy consumption and therefore energy associated costs. It is howevernecessarythatfacilitieshavesomerequirementssuchasbeinginadistrictwithDHCandclosetotheenoughtotheseaforwatercooling.
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Revenuestreams
Thereductioninenergyconsumptionshouldleadtoreductionsintheenergybillthatshouldcompensatefortheinvestmentpaymentsforequipment,engineeringservices,construction,andworks.Keyresources
• Photovoltaicgenerator installedon the rooftop, tryingmaximizearchitecturalintegrationwithminimallossofsystemperformance
• Energymeterwillbeinstalledattheentranceofthephotovoltaicsysteminordertodeductanyenergygeneratedwhichcouldbeconsumedbytheconventionalgrid.
• Distributionnetworkforheating&coolingwillbeinstalledbeneaththestreetadjacenttothebuilding
• ConnectionstotheprimarycircuitoftheDistriclimanetwork• TheDHCnetworkwillsatisfytheheatingandcoolingdemandsofthebuilding
(coolingcapacityof31MWandaheatingcapacityof20MW).Districlimausesmainlythesteamproducedfromtheincinerationofmunicipalwaste(MSW)inthenearbytreatmentplantTERSA.
• Electricchillermachinescooledbyseawater• Buffertankofcoldwaterof5,000m3whichstorescoldovernightanddisperses
it throughout the day. Hotwater is supplied at temperatures over 90ºC andreturnsat60ºC,whilecoldwaterissuppliedatatemperaturebetween4and5°Candreturnsatabout14°C.
Keyactivities
Toachievethedesiredearlyzeronetenergybuilding(NZEB)isnecessarythecompletionofthewholeprojectandaperfectcoordinationofthewholesysteminthefacility.Keypartnerships1
Thesolutionneedsthecollaborationof:• Buildingowners• Facilitymanagers• Citymanagingthedistrictheatingsystem• Electricityretailers• Constructioncompany• Architectsandengineers
1 So far the owner of the business is not yet defined so it is not clear which company or agent will lead the business investing trying to capture the value.
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Coststructure
• Hardwarerelatedcosts• Personnel:Installationandsupervision
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Solution 7. Smart Waste Collection
Wastehandlinginresidentialareasanddenseinnercitiesisagrowingchallengetoallcities.Mostcitiesstillcollectwasteusingtruckspickingupbinsorbagsincloseproximityto residential buildings, causingnoise andemissions. Sorting and recycling areoftendifficult.Usingdifferent coloredbags fordifferent fractions, thrown in the samebinmakes sorting easy and reducesneed for storingwaste at home. Thebags are thensortedautomatically.Thisreducesthenumberofbins,thedrivingandalsoimprovesthesorting.Thesystemcaneasilybedevelopedtoincludeallkindsofwaste,thusreducingtheneedforspecialbinsforpaper,metal,plasticandimprovethesortingascitizensdonotneedtogotodifferentcollectingbins.Inaddition,aSmartWasteCollectionsystemcandramatically reducethenumberoftrucksforwastecollection.Differentfractionsofwasteareputinbagswithdifferentcolorsinthesamecollectionbin.Itisthentransportedtoasortingfacilitywherethedifferent fractions are separated. Since the automatedwaste collection systemusesvacuumtotransportthebagsthroughundergroundpipes,thereisnoneedforfurtherusage of trucks. Obviously, it has environmental implications (reduction of pollutingvehicles),butalsoforlifequality(lessnoiseinthestreet,especiallyatnight).Asforthecontext,atthestartofthe20thcentury,eachpersoninSwedenthrewaway25-30kgofwasteperyear;todaythatfigurehasrisento500kg.InStockholm,theareaof wastemanagement is regulated and guided by laws, plans and strategies at EU,national, regional and local levels. This wastemanagement legislationmay have animpact on the waste management plan. This may have great significance for thefulfilment and follow-up of the set objectives, particularly if the distribution ofresponsibilityforwastechanges.ConclusionsregardingtheBusinessModelsrelatedtosolution7.
One of the most interesting features and benefits of this solution is the ability topersonalize the information and nudging more sustainable behaviors by puttingincentives on citizens.Using smart keys togetherwith color sensors and scales, it ispossibletoregisterdowntoindividualhouseholdstheamountandtypeofwastethrownat any givenmoment. This offers the opportunity to present statistics for individualhouseholds, buildings or clusters of buildings, visualized in the Active house /HomeEnergyManagementSystems/SmarthomesysteminSmartSolution2. Itcanalsobeusedasabasisforpayment.Regardingthescalabilityandreplicabilityofthesolution,automatedwastecollectingsystems aremore easily installed in new built residential areas as the costs can beincludedinoverallinfrastructurecosts.AutomatedWasteCollectionsystemsareinitiallymoreexpensivethantraditionalwastehandlingsystemsbutoffersignificantadvantageswheninplace.Thetrafficforcollectingwastecanbereducedwith90%andspacecanbeclearedinneighborhoodsasthereisnolongeraneedforstoringgarbageinmanydifferent places in the area. All waste is transported underground in pipelines to a
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collectingstationlocatedintheresidentialareawitheasyaccesstocollectionvehicles.Inaddition,theneedsamaturemarketintermsofrecyclingindustry.Theydependonthecityhavingarecyclingplanttosendtheseparatedgarbagebags.Finally, in termsof jobcreation,Solution7 -SmartWasteCollection is job intensive,especiallyduringimplementationworksfordeployingthenecessaryinfrastructure.StockholmAutomatedwastecollection,monitoringandreuse
Industrialpartners:EnvacMeasuresrelated:7.1;7.2and7.3.Shortdescription:Residentsseparatetheirwasteintoseparatecolour-codedbags.Whentheresidentputshis/herwasteintotheEnvacwasteinlet,theuseris identifiedalongsidethetype(bycolourofbag)andweightofwastebeingdeposited.Thedifferentwastestreamsarethentransportedusingsuctionthroughanundergroundpipenetworktoacollectionstationlocatedoutsidethecentralcityarea.The systemwill be able to identify the amount and type of waste thrown away byindividualusers.This informationcouldbeused toprovide feedback to theuser, forinstance,onindividualrecyclingpatterns.
Customersegments
• Publicadministration:CityCouncils
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
•Hardwarerelatedcosts:wasteinlets,colour-codedbags,etc.
•Softwarerelatedcost:softwareprogrammers•Personnel:wastecollectors
Theonlypotentialsourceofrevenuescanbebiogassellingtobeusedtofuelpublictransportation.
(1)CityCouncil(2)Residents(3)Company
Toseparatecorrectlytheirwasteintoseparatecolour-
codedbags.
•Improvesqualityoflifelimitingtheuseofinnerand/orouter
surfacesforwastebinsandcontainers.
•Reducesenvironmentalimpact.•Promotessustainableeconomicdevelopment.Thesystemwillprovidedatatousersinordertoimproveenvironmental
behavior
(1)Publiclocaladministrations
Publicadministration:CityCouncils
•Wasteinlet,undergroundwastetransportation,opticalsortingtechnologies,smart
metering,identificationsensors,separatecolour-codedbags
•Softwaremanagement,analytictoprovidefeedbacktoend-users
publicprocurementlong-termCompanywithalong-
termcontract
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Valuepropositions
Thesolution:• Improvesqualityoflifelimitingtheuseofinnerand/oroutersurfacesforwaste
binsandcontainers.• Reducesenvironmentalimpact.Wastecollectiontrafficwillbereducedby90%
with an accompanying reduction in CO2 emissions, noise and pollution.UndergroundwastetransportationreducesemissionsofCO,HC(hydrocarbons),NOx,particlesandSO2comparedtotheconventionalbincollectionusingrearloadinglorry.Processing collected foodwaste as biogaswill greatly reduceGHG emissionsfromthewaste.
• Promotessustainableeconomicdevelopment.Thesystemwillprovidedatatousersinordertoimproveenvironmentalbehavior
Moreoverany foodwastecollectedwillbeprocessedasbiogas.Thatbesidesgreatlyreducing GHG emissions from the waste it will in turn be used to fuel publictransportation.Channels
Theprocurementoftheserviceshouldbedonethroughapublicprocurementlong-termcontractwithonecompanytoprovide:
• Engineering• Construction• Equipmentinstallation• Managementofthesystem• Wastemanagement• Biogasproductionwithprocessedfoodwaste.
That will require collaboration between equipment manufacturer, engineeringcompanies,architects,constructioncompanies,energycompanies,etc.Customerrelationship
• PubliclocaladministrationsRevenuestreams
Theonlypotentialsourceof revenuescanbebiogassellingtobeusedto fuelpublictransportation.Keyresources
Therequiredresourcesare:
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• Hardware: waste inlet, underground waste transportation, optical sortingtechnologies,smartmetering,identificationsensors,separatecolor-codedbags
• Software:softwaremanagement,analytictoprovidefeedbacktoend-usersontheirwastesegregationhabits
Keyactivities
Foraproperfunctioningofthesystemiskeythatresidentsseparatecorrectlytheirwasteintoseparatecolor-codedbags.
Keypartnerships
Thesolutionneedsthecollaborationof:• CityCouncil, the client thathas toofferwaste collectionmanagement to the
residentsofthecity• Residents,whoshouldseparatewasteindifferentcoloredbags• Company, in chargeof carryingout theworks providing a service to theCity
Council
Coststructure
• Hardwarerelatedcosts:wasteinlets,color-codedbags,etc.• Softwarerelatedcost:softwareprogrammers• Personnel:wastecollectors,
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Solution 8. Big Data Management
Building an open data integration platform for all types of city related data (fromsensors,mobiledevices,andothercitydata)offersauniqueopportunitytointerrelateconceptsandextractknowledgethatisnotalwaysapparentwithoutcrossingverticaldomainfrontiers.Beingabletoopenlyaccessthisraworaggregateddataisinvaluableasitcreatesnewbusinessopportunities;itoptimizestheoperationalcostandresourceallocation for companies thatmake use of it, and fosters the appearance of betterservicesforallcitystakeholders.Trafficandcommunicationofpeople,goods,andvalues iscrucial for thecityand itsgrowth.Management,planning,andcontrolofphysicalinfrastructureandbuildingsarecriticalforcitizensinparticularandtheeconomyingeneral,andarepartofwhatwillmakeacitysmartandattractiveforliving,working,andinvesting.Abetterandmorecarefulmanagementoftheeffectsofcityactivitiesontheenvironmentandclimateisoneofthemostimportantdimensionsforthesustainabilityandresilienceofourcities.These are just a few examples of complex processes that can be more deeplyunderstood, analyzed, and optimized based on integrated and openly availableinformation.Recently,Stockholm’sCityCouncilformallyadoptedastrategyforthecitytobecomethesmartestandmostconnectedcityintheworld.Thestrategyinvolvesauniquefocuson sustainability. The goal is for Stockholm to become economically, ecologically,democraticallyandsociallysustainablethroughinnovativedigitalservices,transparencyand connectivity. The strategy's main focus is to fully take advantage of theopportunitiesthatariseswithdevelopmentinareassuchastheInternetofThingsandbigdataanalysis,aswellastotaketheCity'sworkwithopendatatothenextlevel.ThecityofColognehasprovidedopendatasince2012andwasabletogatherextensiveexperienceinthetechnicalprovisionofpublicdatabasesduringthistime.Inordertomeet future and growing requirements, the city of Cologne decided in 2016 toimplement theexperienceacquired so far in twoupdate cycles. The cityof Colognebelieves data is a source ofmassive potential value for cities to enable sustainablegrowthandtackleenvironmentalandeconomicchallenges.Bytechnologicallyenablingthecitywehopetotapintothispotentialvaluetocreateafully-integrated,strategically-designedsmartcity.In2017,Barcelonalaunchedthe“Barcelona,DigitalCity”plan.Theaimbehindtheplanis to develop an open and accessible public city-data infrastructure which allowsenterprisestonetwork,whereprivacyandself-determinationofdataareprotectedandacademia, industry and citizenship involved,making Barcelona inclusive, ethical andtechnicallysustainable.ItiscurrentlypossibletomeasureandobtainquantitativedataonmanyaspectsofBarcelonainordertocomplementexistingviewsonthecity,usingaquantitativeapproach.TheobjectiveistopromoteaninternalculturalchangeintheCityCouncilandtostartusingtechnology formanaging large (andsmall)volumesofdatatoinformdecision-makingbythemunicipalorganizationalstructure.Thistypeofdatashouldhelpthecitycounciltofacechallengessuchasaccesstohousing,mobility,pollutionandcity-residentparticipationinmunicipalpoliticallife,withfirst-hand,up-to-dateknowledgeofthecity.
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ConclusionsregardingtheBusinessModelsrelatedtosolution8.
WhilethepowerofBigData,OpenDataandDatascienceiswidelyacknowledgedacrossindustries–includingthepublicsector-itisalsotruethatmanyorganizationsarefacingseveralchallengestoderiverealvaluefromdata.ThebenefitsarisingfromBigDataishugelydependentnotjustonhowtheoutputsofdataanalysisareusedbutalsoiftheoutputsareusedatall.The fact thatanorganizationhasaBigDataplatform,dashboards,analytics teamorspecificsoftwareisuselessifdecisionsaretakenthesamewaythereweretakenbeforetheexplosionofdata.Inthatsense,thebusinessmodelsinthissolutionwillproducebenefitsonlyifhumanschangetheirdecisionmakingculture.Therefore,technologyoroperations is not themain problem from the businessmodel point of view but thehumanfactoris.
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BarcelonaBigConsolidatedOpenDataPlatform
Measuresrelated:8.1.;8.2.;8.3and8.4.Industrialpartners:BarcelonaSupercomputingCenter,CellnexShortdescription:Fastandeasyoverviewofthecurrentsituationinyourcityconcerningtraffic,energyandenvironment.Dataandinformationcanbeusedforcityplanning,trafficandenergymanagement,andenvironmentalmonitoring.Datacanalsobeprovidedonopendataplatformsofcities.Allurbandatacanbeincludedindependentlyofthemanufacturerofthedataprovider.ItalsoincludesanAPI(ApplicationProgrammingInterface)forsmartlighting systems implemented by measure 5.2 able to communicate the lightingmanagement system with other applications (e.g. traffic management, weathersystems)andsoftwareplatformsinordertoexchangedatabetweensystems).Measures8.2and8.3aretechnicallytiedtogether,giventhattranslatingaqueryfromSPARQL to the correct API calls requires knowing the correctmapping between theUrbanModeland theconcretedataschema.Conceptuallynevertheless, theSPARQLquerygeneratedbytheexplorationandquerytoolcouldbetranslatedtoanyotherdatarepository (ormultiple repositories), not only to a REST API as in this case throughmeasure8.4.EvidentlythepartoftheSemanticAccessLayerthataccessestheactualdatawouldneedtobemodifieddependingonthestoragetypeandaccessmodes.Thismeansthat,while8.1,8.2,8.3and8.4arepresentedtogether,8.4canbeimplementedallalonethesameway8.1-to-8.3can.TheintendedusersofthesolutionimplementedbyMeasures8.2and8.3arespecialistsin themodeleddomains, in this casemobility, energy, and integrated infrastructureexperts.Theuserprofilesisintendedtobespecialistsanddecisionmakersmostlyfromthe public administration, but also from large enterprises whose business spans, orreliesoninputfrom,morethanoneverticaldomain.Anurbanplannerortheelectricitycompany would need to understand about mobility, traffic, energy, and urbanstructures,tomakethebestdecisionintermsof,forinstance,wheretoplaceelectricchargingstations.
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Customersegments
• Publicadministration:
a. Internaluse(CityCouncilsowningtheplatform)b. Externaluse(otherCityCouncils)
• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata
Valuepropositions
ThevaluepropositionoftheBigConsolidatedOpenDataPlatformistoofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-making.Offeringintegrated data access and semantic query for heterogeneous data sets. Offering ageneralsemanticmodeltowhichdatafromothercitiescouldbemoreeasilymappedtoforintegrationpurposes.Channels
Themainchannelisawebsitethatservesasacentralizedvisualizationtoolfordifferentdatasets. Web-based tool can be freely accessed. Semantic model available fordownloadanduse.
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Customerrelationship
Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone.Revenuestreams
TheplatformcanbelicensedbothtoCityCouncilsandurbanmanagementcompanies.Keyresources
The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Servertohostthemodelandtheexplorationandquerytools.Theimplementationusesopensourcesoftware.Keyactivities
Internal process for validating and assessing the accuracy and quality of datasets.Secondly,aspecificprocess foruploadingandupdatingexistingdata in theplatformrepository.Thirdly,potentialinteractionwiththecustomertoderivespecificinsights.Developmentoftheontology.Developmentofthesemanticaccesstodataintegratedin8.4viaaWeb-basedexplorationandquerytool.Developmentofanefficientsemi-automaticmappingtoolthatrecommendsdatatomodelmappings.Keypartnerships
Theplatformcanbehostedinsidetheorganizationserversoroutsourcedtothird-partycloud hosting providers. In addition, the platform needs a strong commitment ofinternalmanagersfromtheCityCouncilthatshouldprovidetheirsiloedinformationforvisualizationandanalysispurposes.Coststructure
- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-
updatingprocesses.
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CologneUrbanCockpit
Measuresrelated:8.1,8.2and8.3Industrial partners: [ui!] - The Urban Institute, AGT, Ampido, Cambio, Dewog, KVB,RheinEnergieShortdescription:Fastandeasyoverviewofthecurrentsituationinyourcityconcerningtraffic,energy,environment and what is the impact of smart measures concerning the 20/20/20climate protection objectives. The Web-Application gathers its data from theUrbanPULSE data backend but could also be combined with other urban big databackends. Data and information can be used for city planning, traffic and energymanagement, and environmental monitoring and for optimization by exploitinghistorical data and to detect unusual situations. All urban data can be includedindependentlyofthemanufacturerofthedataprovider.TheTrafficpartprovidesrealtime information about current traffic flow in the city. It gathers its data from theUrbanPULSEdatabackendandtrafficsensorsinstalledaroundthecitywhichcapturethecurrenttrafficflow.
Customersegments
• Publicadministration:a. Internaluse(CityCouncilsowningtheplatform)b. Externaluse(otherCityCouncils)
• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdata
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
RevenueStreams
Publicsector
Privatesector
Internalprocessforvalidating/assessing
datasets.Specificprocessforuploadingandupdatingdata.
Potentialinteractionwiththecustomer.
Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone
TheplatformcanbelicensedbothtoCityCouncilsandurbanmanagementcompanies
websitethatservesasacentralizedvisualizationtoolfordifferentdatasets.
toofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-making
CostStructure
HardwareSoftwarePersonnel
-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.
-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.
technologyprovidersanddataproviders,publicauthoritiestoincentivize
collaboration,privatere-usersofdata.
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c. NewbusinessmodelsusingnewavailabledataValuepropositions
ThevaluepropositionoftheUrbanCOCKPITistoofferafastandeasyoverviewofthecurrentsituationofthecitytoimprovedecision-makingandtomonitortheimpactofsmartcitymeasuresontheclimateprotectionobjectives.Channels
Themainchannelisawebsitethatservesasacentralizedvisualizationtoolfordifferentdatasets.Customerrelationship
Theindustrypartnercoverstherelationshipwiththeusualchannels:mainlyemailandtelephone.Revenuestreams
The web-application can be licensed both to City Councils and urban managementcompanies. It is used only in combination with an urban big data backend like theUrbanPULSE.Keyresources
Theassetsrequiredtomaketheweb-applicationworkcanbeseparatedinthreeareas:(virtual)hardware,softwareandpersonnel.Keyactivities
Internal process for validating and assessing the accuracy and quality of datasets.Secondly,aspecificprocess foruploadingandupdatingexistingdata in theplatformrepository.Thirdly,potentialinteractionwiththecustomertoderivespecificinsights.Keypartnerships
The web-application could be hosted inside the organization servers or can beoutsourced to third-party cloud hosting providers. Usually it is hosted on a cloudsolution. Inaddition, theplatformneedsa strong commitmentof internalmanagersfromtheCityCouncilthatshouldprovidetheirsiloedinformationforvisualizationandanalysispurposes.Coststructure
- (Virtual)Hardware related costs: servers andphysical infrastructure for valuepropositiondelivery.
- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.
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- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.
StockholmBigConsolidatedOpenDataPlatform
Measuresrelated:8.1Industrialpartners:IBMShortdescription:Byconsolidating,aggregatingandusingexistingmobilephonedata theplatformwillgenerate a new base for innovation to support a new generation of management,controlandpolicies.
Customersegments
• Publicadministration:a. Internaluse(CityCouncilsowningtheplatformb. Externaluse(otherCityCouncils)
• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
RevenueStreams
Publicsector
Privatesector
Internalprocessforvalidating/assessing
datasets.Specificprocessforuploadingandupdatingdata.
Potentialinteractionwiththecustomer.
Contactformwithdifferentoptionsforcommunicating:
fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsite
ortheavailabledata.E-mail
SocialNetworks
Bydefinition,OpenDataplatformsarefreeforusage.However,onecantakeintoaccounttheincreasedefficiencyinserviceandvalue
propositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.publicandprivatedecision-makerscanreducerisksassociatedwiththeiroperationalorstrategicdecisionsandthusincreasingprofits
bybettertargetingandreducedcosts.
Openwebsitethatservesasacentralizedrepositoryfor
alldatasets.
Offeringmoreinformationaboutthecityinreusabledataformats.The
datasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).
CostStructure
HardwareSoftwarePersonnel
-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.
-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.
Technologyprovidersanddataproviders,publicauthoritiestoincentivize
collaboration,privatere-usersofdata.
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Valuepropositions
Thevaluepropositionoftheplatformisofferingmoreinformationaboutthecityandhowpeoplemovearoundit.Channels
Themain channel is anopenwebsite that serves as a centralized repository for thedatasets.ThedatasetscanbedownloadedinseveralformatsorservedthroughAPIstoconnectdirectlytoapplications.
Customerrelationship
Mainly through email and periodic meetings for improvements and innovationdevelopment.Revenuestreams
Bluemixisavailableforpurchasethroughthefollowingoptions:•Pay-as-you-go–Noupfrontpayment–Nolong-termcommitment–Payonlyforwhatyouuse–Usagechargesthatarebilledmonthlyinarrears•Platformusagesubscription–Discountedchargesascomparedtopay-as-you-goterm–Savingsthatarebasedonlevelofusageandlengthofcommitment•Platformsupportplans–Alluserstoreceiveaccesstoforumsupport–OptionalpurchaseforaccesstoIBMtechnicalstaff–Ticketingsystemwithdefinedresponsivenesslevels–Supportchargesthatarebasedonplatformusagecharges–Minimummonthlyfeeapplies–Supportaccessthatisavailableinselectedtimezonesandlanguages•Keyprerequisites:-BluemixrequiresanInternetconnectionandbrowser.
The developers are shielded from the underlying infrastructure. Bluemix can beaccessed and used as a Public PaaS, a Private PaaS or installed on premise by thecustomer.
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Keyresources
The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Thefirstonedealswiththephysicalneedsoftheplatformlikeserversforstorageanddatadelivery.WeshouldtakeintoaccountthatthephysicalinfrastructurecanbeinternallyassumedbytheCityCouncil(usingtheirprivateserversandstoragecapacity)orbythirdpartycloudsolutions.Thesecondkeyresourceissoftware.Inthiscasethisisthemorevisibleresourceofthemeasureandoneofthecriticaldeterminantsofsuccess.Keyactivities
Asmentionedbefore,severalkeyactivitiesarerelatedtodatamanagementprocesses.Firstofall,aninternalprocessforvalidatingandassessingtheaccuracyandqualityofdatasets.Secondly,aspecificprocessforuploadingandupdatingexistingdata intheplatformrepository.Keypartnerships
As described in key resources, the platform can be hosted inside the organizationserversoroutsourcedtothird-partycloudhostingproviders.Asawayofnurturingtheplatformwithusageinformationandpromotethereutilizationoftheavailabledata,theCityCouncilshouldpromotesomekindofpartnershipwithdatausers. Inthatsense,havingaclosecontactwiththemtoassesstheirneedsandsuccessesisvitalforkeepprovidingthevaluepropositionsandincreasetheirengagementwiththeplatform.Coststructure
- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-
updatingprocesses.
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CologneBigConsolidatedOpenDataPlatform
Measuresrelated:8.4Industrialpartners:[ui!]:UrbanPULSEShortdescription:By consolidating, aggregating and using existing and new sensor data frominfrastructure, trafficanduserswillgenerateanewbase for innovationtosupportanewgenerationofmanagement,controlandpolicies.
Customersegments
• Publicadministration:a. Internaluse(CityCouncilsowningtheplatformb. Externaluse(otherCityCouncils)
• Privatesector:a. Enhancingstrategybyanalyzingmoreandbetterdatab. Improvingoperationalanalysisbyusingmoreandbetterdatac. Newbusinessmodelsusingnewavailabledata
Valuepropositions
Thevaluepropositionof theplatform isofferingmore informationabout the city inreusabledataformats.Thedatasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
RevenueStreams
Publicsector
Privatesector
Internalprocessforvalidating/assessing
datasets.Specificprocessforuploadingandupdatingdata.
Potentialinteractionwiththecustomer.
Contactformwithdifferentoptionsforcommunicating:
fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsite
ortheavailabledata.E-mail
SocialNetworks
Bydefinition,OpenDataplatformsarefreeforusage.However,onecantakeintoaccounttheincreasedefficiencyinserviceandvalue
propositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.publicandprivatedecision-makerscanreducerisksassociatedwiththeiroperationalorstrategicdecisionsandthusincreasingprofits
bybettertargetingandreducedcosts.
Openwebsitethatservesasacentralizedrepositoryfor
alldatasets.
Offeringmoreinformationaboutthecityinreusabledataformats.The
datasetsareofferedforfreeandcanbereutilizedbybothcustomersegments(publicandprivate).
CostStructure
HardwareSoftwarePersonnel
-Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
-Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.
-Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-updatingprocesses.
Technologyprovidersanddataproviders,publicauthoritiestoincentivize
collaboration,privatere-usersofdata.
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Channels
Themain channel is an openwebsite that serves as a centralized repository for alldatasets.ThedatasetscanbedownloadedinseveralformatsorservedthroughAPIstoconnectdirectlytoapplications.Inaddition,theCityCouncilwillevangelizeabouttheuseof theplatformthroughcommunicationactivities (generalmediaandspecializedmedia),directlyto incumbents(reachingthroughemail)andorganizingpublicevents(forexample,hackatons).Customerrelationship
Theplatformhasacontactformwithdifferentoptionsforcommunicating:fromaskingfornewdatasetstoreporterrorsandproblemswiththewebsiteortheavailabledata.Inaddition,itoffersseveralwaystocommunicatewiththeCityCouncil:emailorsocialnetworks,mainly.Allthecommunications(withoutsourcerestrictions)arecentralizedtothedesignatedunitthatdealswiththeplatformandthendistributedtothepersoninchargeofthespecifictopic(forexample,theunit/departmentmanagerincaseofnewdatasets).Revenuestreams
By definition, Open Data platforms are free for usage. However, one can take intoaccounttheincreasedefficiencyinserviceandvaluepropositiondeliveryasasourceofrevenuethroughsavingsintimeandmoney.Thankstomoreinformeddecisions,publicand private decision-makers can reduce risks associated with their operational orstrategic decisions and thus increasing profits by better targeting (better andmoretailoredoutcomes)andreducedcosts (bothcostrelatedtodataacquisitionandcostrelatedtofailedimplementations).Keyresources
The assets required to make the platform work can be separated in three areas:hardware,softwareandpersonnel.Thefirstonedealswiththephysicalneedsoftheplatformlikeserversforstorageanddatadelivery.WeshouldtakeintoaccountthatthephysicalinfrastructurecanbeinternallyassumedbytheCityCouncil(usingtheirprivateserversandstoragecapacity)orbythirdpartycloudsolutions.Thesecondkeyresourceissoftware.Inthiscasethisisthemorevisibleresourceofthemeasureandoneofthecriticaldeterminantsofsuccess.Atthesametime,softwareresourcescanbesplit intwo main sub-resources: the user interface and the datasets. User interface is animportantfactorofsuccesssinceitcanhelporobstructthefindingandreusabilityofdata. Providing a good user experience is mandatory to properly deliver the valueproposition of offering information in reusable data formats: the availability ofmetadataassociatedwitheachdataset,theorganizationofdatasetsintherepositoryorasearchboxaresomeexamplesofspecificissuestotakeintoaccountwhendealingwith the user interface. In addition, datasets are the key resource of the platform
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because without them the platform cannot deliver its value proposition. It is alsoimportanttomentionthefactthatthesuccessoftheplatformisnotonlydeterminedbytheabsolutenumberofdatasetsavailablebutalsobyitsquality.Inthatsense,qualitycan be assessed frommultiple perspectives: from themethodological point of view(aggregation level, granularity of the data, accuracy of the data and so on) to theavailabilitypointofview(isthedatasetupdatedregularly?Isitinareusableformat?).Finally, another key resource is the personnel dedicated to themanagement of theplatform.At least onepersonhas tobedesignatedas responsible formanaging theplatformintermsofuploadingnewdatasetsandrespondingtoinquiriesfromusers.Keyactivities
Asmentionedbefore,severalkeyactivitiesarerelatedtodatamanagementprocesses.Firstofall,aninternalprocessforvalidatingandassessingtheaccuracyandqualityofdatasets.Secondly,aspecificprocessforuploadingandupdatingexistingdata intheplatformrepository.Keypartnerships
As described in key resources, the platform can be hosted inside the organizationserversoroutsourcedtothird-partycloudhostingproviders.Inaddition,theplatformneeds a strong commitment of internalmanagers from the City Council that shouldprovidetheirsiloedinformationforopensharingpurposes.Sinceseveralchallengesandbarriersareexpectedtoappear,havingpoliticalcommitmentasakeypartnershipcanhelpoutpacethispotentialproblems.Asawayofnurturingtheplatformwithusageinformationandpromotethereutilizationoftheavailabledata,theCityCouncilshouldpromotesomekindofpartnershipwithdatausers.Inthatsense,havingaclosecontactwith them to assess their needs and successes is vital for keep providing the valuepropositionsandincreasetheirengagementwiththeplatform.Coststructure
- Hardwarerelatedcosts:serversandphysicalinfrastructureforvaluepropositiondelivery.
- Softwarerelatedcosts:platformmaintenanceanddatasetmanagement.- Personnelrelatedcosts:interactionwithinternalandexternalusersanddataset-
updatingprocesses.
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PRICING:
PricingBluemixBluemixisavailableforpurchasethroughthefollowingoptions:•Pay-as-you-go–Noupfrontpayment–Nolong-termcommitment–Payonlyforwhatyouuse–Usagechargesthatarebilledmonthlyinarrears•Platformusagesubscription–Discountedchargesascomparedtopay-as-you-goterm–Savingsthatarebasedonlevelofusageandlengthofcommitment•Platformsupportplans–Alluserstoreceiveaccesstoforumsupport–OptionalpurchaseforaccesstoIBMtechnicalstaff–Ticketingsystemwithdefinedresponsivenesslevels–Supportchargesthatarebasedonplatformusagecharges–Minimummonthlyfeeapplies–Supportaccessthatisavailableinselectedtimezonesandlanguages•Keyprerequisites:-BluemixrequiresanInternetconnectionandbrowser.
The developers are shielded from the underlying infrastructure. Bluemix can beaccessed and used as a Public PaaS, a Private PaaS or installed on premise by thecustomer.PricingUrbanPULSE
UrbanPULSEisavailableforpurchasethroughthefollowingoptions:• Monthly/yearlypaymentfortheplatform• Paymentforadaptionsandextensions
The developers are shielded from the underlying infrastructure.UrbanPULSE can beaccessedandusedasaPublicPaaSorasaPrivatePaaS.
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WorkPackage4.SustainableMobilitySolutions
Regarding the Business models related to Work Package 4, these are the mainconclusions:ThePublicAuthorityisnotcrucialfortheimplementationofthemeasures.Exceptforthecaseoftrafficmanagementmeasures,fortherestofmeasures,thepublicauthorityis not a key partner, meaning that without the municipality, the measure can beimplemented. But, as said, in the case of Traffic managementmeasures, without astrongpartnershipwith thepublicauthority, thebusinessmodels canbehard tobeimplemented,asthepublicauthoritywillbetheoneauthorizingtheuseoftrafficdata.For therestof themeasures,ofcourse, thepublicauthority is important,because ithelpsthesettlementofsomeofthemeasures,butassaid,oncethisisdone,theactivityrunswithouthavingthepublicauthorityasafrequentpartner.
Dataasamainvectoraddingvalue.Fromdifferentpointsofview,dataiscrucialinthevalue proposition of the different BusinessModels. In some cases, data is themaindriver to the value proposition of the measure, as it is the case of all the trafficmanagementmeasuresandthesharingvehiclesmeasures.Inothercases,datacanbeimportant to improve the value proposition of themeasures, as in the transport ofFreightmeasuresandinthechargingvehiclesmeasures.Inthosetwocases,datafuelsofinformationtheoperationandwithagoodmanagementofthisinformation,itcancreate knowledge, improve theoperation, and therefore, itmight createevenmoreaddedvaluetotheIndustrialPartner.Facilitators as a key activity. In all the mobility measures, the key activity can beunderstood as to be a facilitator between different agents. Comparing with themeasuresrelatedtothebuildings(WorkPackage2),wheretheactivityistoactinthestructureofthebuildingsortoadvicethetenantstoactdifferently, inthemeasuresrelatedtomobility,allofthemcanbeseenashelpingorimprovingotheractivitiesthatarealreadydonebyothers.Citizens as clear beneficiaries. In all the mobility measures, citizens appear asbeneficiariesofthemeasures.Sometimesnotasthedirectcustomer(likeinmeasures9.2inBarcelonaorinthetrafficmanagementmeasures,wheretheybenefitfromthemthankstoanimprovementofthemobility,andtherefore,itisdeducedthatitreducesthepollution),butbasically,theyappearasthelastbeneficiariesofthemeasures.Lowcapacityofcreationofnewjobs.FortheTrafficmeasures,theChargingvehiclesmeasuresandthesharingpoolmeasures,thereseemstobealowcapacityofcreationofemployment,astheyaremeasureswithalowintensityofmanpower.TheexceptionisthetransportofFreightmeasures,wherethereisaneedoftransporterstodothework. This conclusion will be proved in the Deliverable 6.3, where the number ofcreationofemploymentwillbeseen.
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Solution 9. Sustainable delivery
Onlineshoppingisincreasingrapidlywhichthreatenstoincreasethetotalamountoffreightmovements,leadingtoincreasedemissionsandofmobilitycongestion.Besidethisobservation,inBarcelona,therestrictionsofdrivingintodifferentareasofthecityandatspecifichoursimpliesareductionofthequalityofthedeliveryservicesfor private costumers. This restriction also represents that the delivery services areconcentrated in specific hours in themorning or the afternoon, increasing acousticpollutionandmobilitycongestionwhenithappens,annoyingneighbors.Therefore,thissolutioncanbeaninterestingalternativetoimprovethequalityoftheserviceandtoreducethenumberofvehiclesdeliveringfreightconcentratingtheiractivityinspecifichours.Ontheotherhand,inStockholm,therealitythatretailerscannotconfirmthetimesofthedeliveries,andtherefore,implyingtheneedforthecitizenstoeitherbeathomehalfadaytomeetwithanunpredictabledeliverytimeortraveltoacertaindeliveryagenttocollectpurchases.Thisresultsonadecreaseofthequalityofthisservice.Therefore,the solution proposed, where carriers bring in a delivery room the different goodspurchasedonlinebytheneighbors.ConclusionsregardingtheBusinessModelsrelatedtosolution9.
ThePublicsectorisaprescribertoimpulsethebusinessmodels(BMhenceforth),inthesensethattheCityCouncilcanstimulatedthecreationoftheseBMbygivingsomedirector indirect subsidies (or reduction of taxes) to the Industrial Partner (in the case ofBarcelona,theCityCouncilisofferingthespaceoftheUrbanConsolidationCenterforfree). Theprescription can alsobe indirect, byprohibiting thedistribution service insomehoursandinsomespecificplacesofthecity,arguinganimprovementofqualityoftheair,acousticsandmobility.ThecapacityofsuccessoftheseBMisrelatedtothelevelsofprivateconsumptionofcitizens, and related to the improvement of trade sector. The pedestrianization ofcommercialstreetscanimprovethesekindsofBM,asithasbeenproventhatthiskindoflocalpolicyimprovesprivateconsumption(seeXXX).Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,asthereisaneedofmanpower regarding the lastmiledistributionwithe-bikesore-tricycles,although itdoesn’tseemveryintensiveinmanpower.Butnonewskillscanbeobservedrelatedtothesejobpositions.
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TheresultsofthemanagementofthedatacollectedfromtheseBM,canincreasetheimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEVforlastmiledistributionservices.Finally,theBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas11,relatedtotheimplementationofbatteriesforEV,specifically,e-bikesore-tricycles(seemeasure11.3,inBarcelona).
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BarcelonaMicro-distributionoffreight
Measurerelated:9.2IndustrypartnersinBarcelona:i2Cat,CENITThirdpartners:VanapedalSummaryofBusinessModelTheCompanyVanapedalcreatedanUrbanConsolidationCenter(UCC),i.e.,alastmiledistributionserviceusingelectrictricycles(measure9.2).withspecificchargingpoints(measure11.3).
The lastmiledistributionservice isusedasahub forcarriers thatcannotaccess thecenterofthecityinspecifichoursduetorestrainstofuelvehicles,therefore,givingthechancetoconsumerstoreceivetheirgoodsinawidertimeslotthanwiththetraditionalcarriers,besidethefactthattheuseofe-tricyclesdiminishesCO2emissions.
KeyPartners KeyActivities ValuePropositionsCustomer
RelationshipsCustomerSegments
(1)carriers/Transportation
companies(2)Citycouncil/Local
governments
(1)Receptionandconsolidationofgoodsintothe
consolidationcenter(2)Operatingthemicrodistribution
center(3)Deliverytotheirfinaldestinationusingtricycles
(4)TheWorkshop
(1)Customers/citizens:increasedtimeframetoperformdeliveriesandextendeddelivery
coverage(2)Traditionalcarriers:theyavoidenteringthe
limitedaccessandpedestrianizedareasofthecitycenterandcostssavings.Thesensorsinthetricyclescanhelpoptimizingdelivery
routes,andtomakeitmorecompetitiveforthelast-mileoperator.(4)Community:reducedenvironmentalandnoise
impact(5)CityCouncil:to
monitorthenoiseandpollutionlevelsinthat
area
(1)Customersupport(2)Personalassistance
(1)Users/customers(2)Carriers/Transportation
(3)CityCouncils/Municipalities
KeyResources Channels
(1)Physicalassets(UCCconstructionandmaintenance,Electric
tricycles)(2)Humanresources
(Deliverystaff,operationsstaffattheconsolidationcenter)
(3)Technology(4)PublicFinancing
(1)Withusers/customers:
WebsiteandMobilephoneapps(2)WithCity
Councils:WLANcommunications(3)Withcarriers:
Salesforceandwebsales
CostStructure RevenueStreams
(1)Fixedcosts(Runningcosts,Salaries,Tricycles)
(2)Variablecosts(Costsofoperatingthemicrodistributioncenter)
(1)Feechargedfromcarriers(2)Deliveryfeechargedfromcustomer
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The installation of an urban consolidation center (UCC) for the last-mile delivery ofgoodsinacentrallylocatedareaofBarcelona.,reducingcongestioninpedestrianizedand/orhighlypopulatedareas,diminishingemissions,andloweringdeliverytimesandcostsforconventionalcarriers.Additionally,theelectrictricycleswillbeequippedwithsensorsKeyactivities
The UCC principal activity is operating a micro distribution center where the UCCreceptionsthepackagesbroughtbythecarriersanddeliverittotheirfinaldestinationusingelectricaltricycles.Thisactivityworksasfollows:atthebeginningoftheday,theprincipal provider of courier, mail or parcel service arrives at the facilities of thecompany,whereitleavesthefreightthatshouldbedeliveredduringthatworkingday.Atthismoment,theprotagonistcompanyofthismeasure,throughtheuseofelectric-motorizedtricycles,deliversthefreighttothefinalcustomer,eitheraparticularoracompany.Thedeliverymanwearsthesamecorporateclothingoftheclientcompany,andthetricycleispaintedandthemedwiththesamecorporatecolorsandsymbolsofsaidbigger transportationcompany.Currently thisvalueproposition isalreadybeingimplemented,workingforDHLexpressandDHLterrestre.TheUCCisalsoareparationcenterfortransportationtricyclesfromothercompanies.TheworkshopfacilitiesarealreadyofferingtherepairserviceforothercompaniessuchasMRW,however,themobile-workshopvehiclesdonotexistyeteventhoughbeingdesigned.Finally,theUCCisalsoastorage&deliverablecenterforsmallcompaniesnearby.Anexampleofthisactivityisaclientcompanyspecializedinsellingmattressesthatwerevacuum-packedtoreducethestoragespacerequiredforanormalsizedmattress.Saidcompany requested to have stored a copy of each model which the companymanufactured,andinacasethatacustomerofthisthird-partycompany,wouldhaveneededtheproduct,couldhaveitquicklyandcomfortably.Keyresources
PhysicalAssets:UrbanConsolidationCenter(UCC)constructionandmaintenanceinawarehouse. Also,we should include the electric tricycles (currentlyworkingwith 15units).Human capital: Delivery staff and operations staff at the consolidation centre (eightpeopledelivering,andtwoattheconsolidationcentre,oneattheworkshopandoneintheadministrationdepartment.Atpeakdemandtimes,inChristmas,thetotalamountofworkforcereachestwentypersons.Technology:PDA,electricengines(functioningwithbatteries),chargingpointsforthebatteriesandsensorsprovidingenvironmentalinformationsuchasCO2concentration,temperature,etc.Financialresources:privatefinancing,andpublicfinancing.
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Keypartnerships
Normally the key partnerswill be carriers / transportation companies (such asDHL,MRW,FedExandTNT).FinalcustomerscouldbeconsideredalsoasKeypartners,asVanapedal isthinkingtostartitsowndeliveryservicesbesidethelastmileservicetheyoffertocarriers.ButinthiscaseanotherKeypartneristheCitycouncil,asithasfacilitatedtheuseofaspaceasawarehouseforthecompany.Thiswarehousehasbeengivenforalimittime(notspecified)forfree.CustomerSegments
Thiscompany(Vanapedal)aimstosatisfyanykindofcustomerwhoneedsalast-miletransportationservice.Inthissense,inthelongterm,itaddresseditsservicestoamassmarketwithoutdistinguishingbetweentypologiesofcustomersnorindustrialclients.However, on its first stages of operability, the customer segments can be listed asfollows:Users/Customers:Wholiveinurbancenterswheretheconditionsforthedistributionwithtraditionaltransportationvehiclesarenotthemostconvenient.Carriers/Transportation: Transportation companies for which is difficult to deliverefficiently in the last-mile of city centers. Other subcontracted transportationcompaniesworkingforbiglogisticschainsandrequirereparationservices.CitiCouncilsandMunicipalities(citizensincluded):Municipalitiesthatwillmakeuseoftheenvironmentalinformationtrackedbythesensorsembeddedintothetricycles.ValuePropositions
Thefirstvaluepropositionconsistsinintegratingthebusinessactivitiesintothelogisticschainofalargetransportcompany,offeringthelastmiledeliveryserviceoffreight.Thelevelofintegrationiscompletesincetheimageandtechnologicalmethodsarethesameasthemainoperator,asseeninthe“Keyactivities”section.Thesecondvaluepropositioncanbedefinedasanextensionofthefirstone,addingvaluebyalsoofferingthecollectionofmerchandisetotheparticularuserorathird-partycompany.Inorder,forthisproposal,tobecarriedout,thedeliverymanmusthaveaPDAownedbythebiggertransportationcompany.Themodelisbasedonnothavingstoragecosts,allpackagesreturnedornotsent (duetosomekindof incident in thelogistics of operations), are collected, at the end of the day, by the partnertransportationcompany.CurrentlythisvaluepropositionisbeingcarriedoutforFedEx.
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The third value proposition can be described as a storage and delivery service forcompaniesthatneedtodelivertheproducttothebuyerinarapidway.Theproposalisbasedonrentingstoragespaceandtransportingthefreightwhenisneeded.A forth proposal (not already implemented) is to offer an independent service oftransportation,notdependingofanyothertransportoperator. Itconsistsofa“FromPointtoPoint”modelinthesamecityorurbandistrict,inourcase,atCiutatVellainBarcelona.Thismodeliscurrentlyhasnotbeenimplementedyet,beingunderideationphases.The added value proposed for the companies requesting the courier service, is togenerate savings in the delivery process through increasing efficiency thanks to themoreflexibilityinthedeliveryservice.Thisflexibilityisachievedthankstoaseriesof15tricyclevehiclesthatcanoperateinpedestrianzones.Complementarily, there is a fifth value proposition that consists in offering amaintenanceserviceforvehiclesofthesametypeasthoseusedbythecompanyforthelast-mile distribution of freight, the motorized tricycles. This service, besides takingadvantageoftheworkshopusedatthecompany’sheadquarterstoself-repairtheirownvehicles,alsocontemplatesa travellingworkshopservice. In thismanner,companiescan save themselves the fixed costs generated by the maintenance of the fleet oftricycles.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelof pollution generated by the distribution process, more precisely in substitutingpolluting vehicles for other more environmentally sustainable. Furthermore, thecompany is opting for the transportation service between libraries of the city. Thecompanywantstoparticipateinthepublictendertoexploitthiskindofservice.For the City Council, the environmental information provided by the sensors in thetricycles(suchasCO2concentration,temperature,humidity,noiselevel,etc.)hasthepotentialtobeusedbymunicipalitiessoastomonitorthenoiseandpollutionlevelsinthatareaofthecityandtakeactioninordertoimproveit.Lastly,thesensorsinthetricyclesprovidereal-timetrackinginformationonthetricycles’journey,whichcanhelpoptimizingdeliveryroutes,toimprovetheservice,andtomakeitmorecompetitiveforthelast-mileoperator.Channels
Withthebiglogisticcompaniesviae-mail,PDAandWhatsApp.Withthefinalcustomer:telephone,ApporSMS.
With City Councils: WLAN communications: the sensor in the tricycles will supportmobile (GPRS/UMTS) and WLAN communications to transmit the monitored
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informationtoaSmartCityplatform,whereitwillbeprocessedandmadeavailableforthecityservices.CustomerRelationships
Althoughtherelationshipwiththefinalcustomerisassumedbythecarriercompanies,Vanapedalhasadirectcontactbasicallyrelatedtodeliveringthepackages.The main relationship of Vanapedal is with the Carrier companies, where thecommunicationisdirectandfrequent,andbasicallyrelatedtothepackagesdeliveredornot(becausethefinalcustomerwasn’tattheplaceofdelivery.Intheselastcases,thecommunicationwiththecarriercompaniesistodecidewhenitwillbedeliberatedagain.RevenueStreams
Feechargedfromcarriers.Thefeepaidtothelast-mileoperatorforitsservicesshouldbe competitive for carriers since it needs to provide a cheaper alternative thandelivering the items themselves. The revenues of the last-mile operator need to besufficienttocoverthecostsofoperating.Thereisasecondtypeofrevenues,thosethatcanbegeneratedbyworkingdirectlywithafinalcustomer,withoutdependingofabigmajortransportationcompany.Athirdtypeofrevenueisthatgeneratedbytheworkshopservice,therevenuescomesfromotherlast-miletransportationcompaniesthatrequireafacilityequippedwiththetools to repair their own tricycles. A big revenue stream that should be taken intoaccountisthepubliccontribution,currentlysubsidizingthebillofthelight,therentandpartofthesalaries.Coststructure
Buildingorrentingthespaceoftheconsolidationcentreandrunningcosts(assumedbytheCityHall).Salariesofemployees(deliverystaffandstaffattheUCC).Tricycles:amortization.Costsofoperatingthemicrodistributioncentre.Taxes:(municipaltaxesandIBI(incaseofrentingtheUCC).Utilitiescost(includedintheoperatingcosts):communications,heating,electricity.TheChargingdevicesdonotconsumeahighintensityofelectricpower.
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Stockholm.Deliveryroomforsustainabledeliveries
Measuresrelated:9.1Industrypartners:Carrier,StockholmshemThirdpartners:Qlocx,Move-By-BikeShortdescription:A delivery room will be installed in communal area within a residential building,providing24haccessibility to all tenants, andallowing the consolidationof all homedeliveriesforoneareaandtheuseofelectricpoweredcargobicyclesforthe“lastmile”ofthedelivery.Thefixeddeliveryroomallowsawiderrangeofparcels,asthefullspaceofaroomcanbeusedforstorage.
Keyactivities
Thecitizenscanbuyonlineandtheir freightaresendbytheRetailStoretoCarrier’sdepot.Fromhere,Move-By-Bikewilltransport,bybike(ebike?),thefreights intothedeliveryroomwherecitizens,afterbeingwarnedviaapp,willcollecttheirparcel.
Keyresources
(1)Physicalassets:a.adeliveryroomwithenoughspacetoservedifferentbuildingsandtostorage
differentsizeofparcel.b.BicyclesorElectricpoweredcargobicycles(toconfirm)
(2)Humanresources: a.Deliverystaff b.Administrativestaff(3)Technologycapability(Softwareandappsdevelopment)
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
Fixedcosts(Serviceboxes,Salaries,technologicalinfrastructureandrunningcosts,warehouse)
Variablecosts(marketing,Salariestotemporarydeliverystaff)
(1)Deliveryfeechargedfromcustomers/tenants(2)Commissionchargedfromretailcompanies
(1)Localgovernments(2)Technologycompanies
(1)Managingordersandprocessingthem
(2)Deliveryofthegoods(3)Creatingandmanagingthe
infrastructure(4)Supplychainandlogistics
optimisation
Increasedserviceandcomfortfor
tenants.Extendedcustomerbase.
Reducedenvironmentaland
noiseimpact
Directcustomersupport(throughemail,telephone,
socialmedia,etc.)(1)Users/customers
(2)Retailstores(3)Cities/communities
(1)Physicalassets(Servicesboxesinresidentialbuildings’hallsandElectricpoweredcargobicycles)
(2)Humanresources(3)Technologycapability
(1)Directsales(2)Website
(3)Mobilephones(appsandSMS)
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Keypartnerships
TheKeypartnersarethefollowing:
(1) RetailstoreswillingtousethedeliveryroomservicesofferedbyCarrier.Theyhavetohaveanincentivetouseit,thatcanbebyoneside,theneedtooutsourcethedeliveryservices,andbyanotherside,theneedtoimprovethequalityofthedelivery services by using the delivery room. Finally, they have to have aneconomic incentive,wheretheuseofthedeliveryroomreducestheircostorincreasestheirrevenues.
(2) Citizens, that feel that by using thedelivery room theyhave a better serviceregardingthedeliveryoftheparcelboughtonline.
(3) Technology companies, willing to improve an App that will manage theinformationrelatedtothedeliveries.
(4) Bike company, willing tomake the last-mile trip from Carrier’s depot to thedeliveryroom
(5) Cities/Communities, willing to reduce the air and acoustic pollution inneighborhoods.
Valuepropositions
• For users / customers: increased service and comfort for tenants, includingflexibilityintimefordeliveries.
• Forretailstores:extendedcustomerbase,sincetheycanreachmoreareasinlesstime.
• Forthesociety/community:reducedenvironmentalandnoiseimpactduetoreductionoffossilfueledvehicles,bothfromresidentsthataregoingtopickuptheir freights and from delivery services that concentrate their routs to thedeliveryroom,whichwillbereplacedbyelectriccargobicycles.
Customersegments
TherelationofCustomersisthefollowing:
• Citizenswhodon’twanttogotoastoreandpreferonlineshopping• Retailstoresthatdon’thavetheirownhomedeliveryservicesorthatpreferto
consolidatetheirdeliveriesandreducecosts• Cities/communitiescanalsobeconsideredcustomersastheycanalsomight
usetheservicestosendsomedocumentstothecitizens.Althoughthisoptionisnotconsideredrightnow.
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Channels
TheChannelusedwithresidentsisanapp,wheretheyhavetoregisterasusersofthedeliveryroom(thesecuritysystemisprovidedbyathirdparty,Qlocx).Theythenreceivesmsnotificationswithapincodewhenaparcelisdelivered,whichtheyusetoentertheroomandcollecttheirparcels.Residentswillalsobeabletoregisterparcelsforreturnandleavetheseinthedeliveryroomforcollection.
TheChannelswiththeretailstoreswillbethetraditionalones,i.e.,Website,phone,andmaybeappsiftheyhaveoneontheirown.
Customerrelationship
• Withresidents,anonlinecustomersupport(throughapp).• Withretailstores,adirectcompanysupport(throughemail,telephone,social
media,etc.)Revenuestreams
ForCarriertherevenuescancomefrom:
• Deliveryfeechargedfromcustomers• Commissionchargedfromretailcompanies
Coststructure:
(1)Fixedcosts:a.Deliveryroominstallationb.Salariestopermanentdeliverystaffandadministrativepersonnelc.Creationofthetechnologicalinfrastructureandrunningcostsd.Warehouses
(2)Variablecosts:a.Salariestotemporarydeliverystaff(speciallythebikeserviceforthelastmile)
&Marketingb.MaintenanceoftheDeliveryroom.
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Solution 10. Smart traffic management
CongestionandtrafficaccidentscausessignificantlossoftimeandmoneyinEurope’scities.Usingsmarttechnologytoevenouttrafficflowsandavoidunnecessarystopswillreduceemissionsandalsotrafficaccidents.Givingreal-timeinformationone.g.traveltimemayalsoredirectcitizensfromcartopublictransportorothermodes,ortomaketheirjourneysatanothertime.Oncetheinfrastructureisinplaceitopensupformanybusinessapplications.Withthehelpofarangeofdifferentsensors,trafficpatternswillbeanalyzedinanewwayinCologne.Thiswillcreateagoodpictureofcurrenttrafficflowsinthecityandformabasisforamulti-modetravelplanner.AsimilarsystemwillbeimplementedinStockholmtogetherwithavehiclemanufacturer,alsotestingthesmartcommunicationbetween the traffic lights system and vehicles GPS systems to guide those vehiclesthroughgreenlightsandtowheretrafficislessdense.Inthisregard,thesynchronizationof traffic signals to prioritize the movement of goods and distribution vehicles tominimizestartsandstops,resultinginamoreeffectivemovementofgoodswithloweremissions, noise and improved junction safety. Finally, in the case of Barcelona, asoftwarewillbedevelopedtosimulateacorrectsynchronizationoftrafficsignalsinaspecificareaofBarcelona.The future implementationof thissoftwaremightallowamoreefficienttrafficflow.Itwillbe interesting tohavesomedataon trafficcongestion in the three lighthousecities.ConclusionsregardingtheBusinessModelsrelatedtosolution10.
ThePublicsectorhasacrucialroleinthebusinessmodels(BMhenceforth)relatedtothis solution, as they are the owners of the assets (traffic lights) or the ones thatauthorize the changes in the management of the traffic lights. Therefore, the CityCouncil,oroneofitspubliccompanies,canhirethecompaniesthataredevelopingthemeasuresortheycanbeprescribers,meaningthattheycanaskthecompaniestheyhiretomanage the traffic lights to include thesemeasures, therefore, these traffic lightcompanieswillhirethecompaniesimplementingthemeasuresdetailedinsolution10.ThecapacityofsuccessoftheseBMisrelatedtothecapacitytoprovetheimprovementsin traffic flow and reduction of congestion, gas emissions and acoustic emissions.Therefore,thecapacitytomanagethedatacollectedwillbecrucialforthesuccessoftheseBM.Again,thePublicSectormightbecrucialforthedatacollection,astheymighthavetherightsrelatedtotheuseofdata.Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,notveryintensiveinmanpower,butinterestingonthesensethatitwillimprovenewskills,relatedtodigitaleconomyanddatamanagement.
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Barcelona.Smarttrafficsignals
Measurerelated:10.1Industrypartners:CENIT
Thisisatheoreticalmeasurethatwillnotbeimplemented.SummaryofBusinessModelAsoftwarecompany(inthiscaseaResearchCenter,CENIT)managementsystemthatallowsabettermanagementoftrafficlightsimprovingthetrafficflows.ThecompanyofferingthisservicecouldbehiredbytheLocalTrafficAuthorityofbythePrivate firm operating the traffic lights. This company could be a spin-off from theResearchCenter(forthisbusinessmodeldefinitionwewillassumethatthecompanywillbeCENIT).
Keyactivities
Theaimofthismeasureistocalculatethemacrofundamentaldiagramoftrafficflowofthe district of SantMartí (Barcelona) and study how tomanage traffic lights in theperimeter area in order to change the traffic states and improve traffic flows. Thismeasureisstagnantintheideationprocessandisbasedinthefundamentaldiagramoftrafficflowrelatingbetweenthetrafficfluxandthetrafficdensity.Ahypotheticalimplementationofthemeasurewillbetheinstallationofseveralstationsto control the traffic flow, and connecting those stations to the traffic lights
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
T RevenueStreamsStaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageSoftwaredevelopmentandoperationcosts
Revenuesthatcomedirectlyfromthemunicipality(orTrafficmanagementCompany)thatispayingforthissoftware.
MunicipalitiesTrafficmanagementcompanies
Tocalculatethemacrofundamentaldiagramoftrafficflowofadistrict(SantMartí)Studyhowtomanagetrafficlightsintheperimeterareainordertochangethetrafficstatesandimprovetrafficflows.
Forthecityhall:toimprovethetrafficdensity.Forthetrafficlightcompany:toimprovetheuseofthetrafficlights,andtheirmaintenance.Forthefinalcustomers(thedrivers):toimprovethetrafficflowandthereforethetimeoftravel.
Contractrelationwiththehire(MunicipalityorTrafficmanagementcompany)
Publicadministrations/MunicipalitiesTrafficlightcompanies
PhysicalAssets:Trafficlights(alreadyexisting).Humancapital:engineerorapplicationdevelopersprogramingthesoftwareandfollowingupregularlyitsimplementation.Technology:stationscollectingthedatarelatedtotrafficflowandasoftwareformanagingthetrafficsystemandsemaphores.Financialresources:private
WiththetrafficLightCompany,bytraditionalchannelsofcommunication
WiththeCityHall,bycommunicatingregularlythesituationofthetrafficflow.
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managementsystem,thatwilladaptthefrequencyofthosetrafficlightstotheintensityofthetrafficflow.KeyResources
PhysicalAssets:Trafficlights(alreadyexisting).Human capital: engineer or application developers programing the software andfollowingupregularlyitsimplementation.Technology: stations collecting the data related to traffic flow and a software formanagingthetrafficsystemandsemaphores.Financialresources:privatefinancing.Keypartnerships
TheKeypartnersareMunicipalitiesandtrafficmanagementcompanies.Dependingonthecontractingconditions, thosepartners canhaveadifferent levelof relationwithCENIT.ThemainpartnerwillbetheonehiringCENIT.CustomerSegments
Publicadministrations/Municipalitieswhowanttoimprovethetrafficintheircitiesandachieve smoother traffic flows and the company thatmanages the semaphores in acertainarea.ValuePropositions
For thecityhall, thegoal is,using themacroscopic fundamentaldiagramtheoryandsomeactivetrafficlightssystems,toimprovethetrafficdensityorrathertheaggregatejourneytimesandthereforethepollutionlevelsinacity.Forthetrafficlightcompany,ifitistheonehiringCENIT,itwillimprovetheuseofthetrafficlights,andwillallowtoimprovethemaintenanceofthetrafficlights,thankstotheirconstantsurveillancebythesoftware.Forthefinalcustomers(thedrivers),itwillimprovethetrafficflowandthereforethetimeoftravel.Channels
WiththetrafficLightCompany,bytraditionalchannelsofcommunicationbetweenacontractorandaservicecompany,withprobably,sharinginformationaboutthestatusofthetrafficlights.WiththeCityHall,bycommunicatingregularlythesituationofthetrafficflow.
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Customerrelationship
AssaidintheKeypartnership,therelationwilldependonwhoishiringCENIT.The contractor will have a regular relation, following up the evolution of theimplementationofthesoftwaresystem.Revenuestreams
Revenuesthatcomedirectlyfromthemunicipalitythatispayingyouforthissoftware,or the revenues that come from a third-party company, for instance, the one thatmanagesthetraffic lightsystem,andisrequiredbythemunicipality,to implementasolutionthatneedsthistypeofsoftware.Inbothways,therevenuestructureisnearlythesame.However,ourcompanycouldhave fixedrevenues, for instanceselling theproductwith fixed prices (developing costs + amargin) or having variable revenuesdependingonthefinalempiricalbenefitsofthesoftware.Onthiscase,therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athird scenario is the one that combines the two revenue streams (fix + variablerevenues).Coststructure
Software license, salaries, investments required to adapt the dynamic regulation oftrafficlights.Softwaremaintenancecosts(thesoftwarerequiredtodevelopthisprojectis not the same as the software required to implement it, for this reason the finalsoftwarerequiresamaintenanceprice)
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Stockholm.TraveldemandManagement&Smartguidingtoalternativefuel
stationsandfastcharging
Measuresrelated:10.3&11.5Industrypartners:KTH&theCityofStockholmShortdescription:Afterdecidingtomergemeasures10.3&11.5,KTH&theCityofStockholmdecidetodevelopanintegratedmulti-modalportalpromotingsustainabletravelchoicesavailablefromasmartphoneapplication,withthegoaltoimprovechangesintravelbehaviorinawaythatismoreeffective,sustainable.Italsoallowstothe36,000carsandlightdutytransport vehicles operating on renewable fuels in Stockholm to have updatedinformationonwhereeachalternativefuelcanbefilledup,togetherwithmostrecentprices.Finally,thiswillimprovethetraveldemandmanagementmeasures.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
1.Ownersofvehiclespoweredwithrenewalenergy2.Citizens/driverswithaHighawarenessofaneedofamoresustainablemobility3.Municipalitywillingtoimprovethemobilityintheirstreets.4.Fuelstationsofferingrenewalenergy
asmartphoneapplicationthatwillinformabout:actualizedinformationofpricesofrenewalenergyinfuelstations.offeringalternativetravelchoicesmoresustainable
•ForDrivers,theimprovementoftheirownprivatemobility,byreducingthetimeoftravelandthefuelconsumption.•ForEVDrivers,toimprovetheuseofrenewalenergybyhavingabetterinformationonwheretofuelvehiclespoweredwithrenewalenergy.•Forcitizenswithahighsustainableconsciousnessandformunicipalities,thecapacitytoreducethepollutionincities
•Onebyone,challengingeachothertoreduceemissionsandenergyconsumption,usingtechniquesofgamificationofusers’behavior
Residentsawareofaneedtoimproveamoresustainablemobilityinurbanareas.
Citizens/driverswhoownanelectricvehicleorare
interestedinbuyingoneMunicipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodesof
transportation.
KeyResources Channels
•Website/Smartphoneapplication•Maintenanceofthewebsite/Smartphoneapplication•Informationfromthefuelstations
ThroughtheuseofMobile
CostStructure RevenueStreams
CostofdevelopingtheApp:Salaries&LaborCostsrelatedtodesigntheAppandactualizetheinformation.Costofactualizingtheinformationfromthefuelstations.
(1)TheApplicationcanreceiverevenuesfrompublicityincludedintheApplication(2)Fuelstationsmightbeinterestedtopayafeetoguaranteetobeintheapplication(ortobeon“toppositions”)andtoshareactualizedinformation(3)Municipalitiesmightbeinterestedinsupportthismeasuresasitcanimprovethereductionofpollutioninitsstreets.(4)RenewalCarCompaniescouldbeinterestedtopromotethisAPPsotheycangetaggregatedatatolearnaboutuser’sbehavior.
Keyactivities
Themainactivityisasmartphoneapplicationthatwillinformabout:Actualizedinformationofpricesofrenewalenergyinfuelstations.Offeringalternativetravelchoicesmoresustainable.
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Keyresources
Thekeyresourcesare:
• Website/Smartphoneapplication• Maintenanceofthewebsite/Smartphoneapplication• Informationfromthefuelstations
Keypartnerships
Thepartnersarethefollowingones:1. Ownersofvehiclespoweredwithrenewalenergy2. Citizens/drivers with a High awareness of a need of a more sustainable
mobility3. Municipalitywillingtoimprovethemobilityintheirstreets.4. Fuelstationsofferingrenewalenergy
Customersegments
Thecustomerscouldbethefollowingones:
Residentsawareofaneedtoimproveamoresustainablemobilityinurbanareas.Citizens/driverswhoownanelectricvehicleorareinterestedinbuyingoneMunicipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodesoftransportation.
Valuepropositions
Themainvaluepropositionsare:• ForDrivers,theimprovementoftheirownprivatemobility,byreducingthetime
oftravelandthefuelconsumption.• For EV Drivers, to improve the use of renewal energy by having a better
informationonwheretofuelvehiclespoweredwithrenewalenergy.• For citizenswith a high sustainable consciousness and formunicipalities, the
capacitytoreducethepollutionincities
Channels
• Throughmobilephones&websites
Customerrelationship
Therelationwiththecustomerwillbethefollowing:
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• One by one, challenging each other to reduce emissions and energyconsumption,usingtechniquesofgamificationofusers’behavior.
Revenuestreams
Fourarethealternativerevenuesdetectedforthismeasure:
(1) TheApplicationcanreceiverevenuesfrompublicityincludedintheApplication(2) Fuel stations might be interested to pay a fee to guarantee to be in the
application(ortobeon“toppositions”)andtoshareactualizedinformation(3) Municipalitiesmightbeinterestedinsupportthismeasuresasitcanimprovethe
reductionofpollutioninitsstreets.(4) RenewalCarCompaniescouldbeinterestedtopromotethisAPPsotheycanget
aggregatedatatolearnaboutuser’sbehavior.Coststructure
Cost of developing the App: Salaries & Labor Costs related to design the App andactualizetheinformation.Costofactualizingtheinformationfromthefuelstations.
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Stockholm.Smarttrafficsignals
Measurerelated:10.4Industrypartners:CityofStockholm(measure10.4).Thirdpartners:SwarcoShortdescription:Different smartmanagement traffic signal lights solutionswill be tested in order toimprovetrafficflowanddecreasecongestion:
(A) twosolutionswillbetested:A.1:Alimitednumberoftrafficlightswillbeequippedwithspecializedsoftwaresothatcarswiththerightequipmentcangetinformationandadapttheirspeedtobeabletoreachthegreenlights.A.2:Asignalprioritysystemwillgivecertainvehicles(cleanvehicles,inparticularelectricandrenewablefueleddeliverytrucks)agreenlightfasterthanothers,reducingtheirtraveltime.
Keyactivities
TheKeyactivityistodevelopasoftwareandtomanageittosynchronizetrafficlightstoimprovetrafficflows.
Keyresources
(1)Physicalassets/Technology:a.Hardwaregatheringanddeliveringinformationtotrafficsignalsb.Software:softwareintrafficlightsandinsomecars(seesolutionA1)
(2)Humanresourcestodevelop&managethesoftware.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Fixedcosts:Software/Hardwaredevelopmentandmaintenance,salariesofemployees
(2)Variablecosts:Marketingandoperations
(1)TrafficSignals:publiclicensetomunicipalities(2)Car'sonboardsoftware:itmaybesoldtothecarindustryasanasset
saleorasaspecialdevicedirectlytocarownersforafixedprice(3)Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefuelledtrucksthatoperateinsmartlogisticsolutions.
(1)Citycouncil/Municipalities(2)Thirdpartiesintheautomobileindustrythatwanttoadvanceinautonomouscar(3)Othertechnology
companies
(1)Softwareandhardwaredevelopmentandmanagement
(2)Customisedinformationforsomedriverstoreduce
traveltimes(3)Engagingwithpartners
Tomanagecitytrafficmoreefficientlyandsmoothly,reduce
trafficcongestion,andlessenenergy
consumptionandemissions,noiseandriskofaccidents
(1)Technicalassistance(2)Self-service
Publicadministrations/Muni
cipalitiesCitizens/DriversPrivatesectora.Hardwaregatheringand
deliveringinformationtotrafficsignals
b.Softwareintrafficl ightsandacar’sonboardsoftware
c.Humanresources
(1)Website(2)DirectSalestocities/automobilecompanies
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Keypartnerships
Thekeypartnersarethefollowing:
(1) Citycouncil/Municipalitiesthatdesiretoimprovetheirmobilityandtherefore,reducecongestionandpollution.
(2) Citizens/Driverswhowanttoreducetheirtravellingtimes.(3)ThirdpartiesintheautomobileindustrythatwanttoadvanceinrenewalandEVcar(4)Othertechnologycompanies
Customersegments
Thecustomersthatwillusethissoftwarewillbe:
• Citizens/Driverswhowanttoreducetheirtravellingtimes• Automobile industrysolutionA.1canbesold to theautomobile industryasa
specialdevice.• Publicadministrations/Municipalitiesthatwanttoimprovethetrafficflowin
theirstreets.
Valuepropositions
Thereareseveralvaluepropositions,dependingonthespecificsolution:• Forcitizens:Reductionoftraveltimeandenhanceddrivers’experience• Forcities:ImprovedtrafficflowsandReducedenergyconsumption,emissions,
noiseandriskofaccidents• Encouragestheuseofcleanervehicles,whichisgoodfortheenvironment
Channels
• SmartPhoneapplicationsorWebsite• DirectSalestocities/automobilecompanies.
Customerrelationship
• Technicalassistance• Self-service
Revenuestreams
(1) Forthesystemthatgivesthedriverinformationaboutwhatspeedtoadoptinordertoreachagreenlightatthenexttrafficlight:
a. itmaybesoldtothecarindustryasanassetsale.b. itcouldalsobesoldasaspecialdevicedirectlytocarownersforafixedprice.
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(2) Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefueledtrucksthatoperateinsmartlogisticsolutions.Benefitslikethiscouldmakeupfortheextracostofthevehicles.
(3) UsagefeefrommunicipalitiesCoststructure
(1)Fixedcosts:a.Softwaredevelopmentandmaintenanceb.Hardwaredevelopmentandmaintenancec.Salariesofemployees
(2)Variablecosts:a.Marketingandoperations
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Stockholm. Traffic signals synchronized to prioritize certain vehicles
movementofgoods
Measurerelated:10.5Industrypartners:Carrier(measure10.5).Shortdescription:Asmartmanagementtrafficsignal lightssolutionswillbetested inorderto improvetrafficflowanddecreasecongestion.Concretely,trafficsignalsinandaroundÅrstawillbere-programmedandsynchronizedtoprioritizethemovementofgoodsdistributionvehiclestominimizestartsandstops,resultinginmoreeffectivegoodsmovementswithloweremissions,noiseandimprovedjunctionsafety.
Keyactivities
• Softwareandhardwaredevelopmentandmanagement• Customizedinformationforfreightdriverstoreducetraveltimes
Keyresources
(1)Physicalassets/Technology:a.Hardwaregatheringanddeliveringinformationtotrafficsignalsb.Software:softwareintrafficlightsandmaybealsoavehicleonboardsoftware
(2)Humanresourcestodevelopandmanagethesoftware.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Fixedcosts:Software/Hardwaredevelopmentandmaintenance,salariesofemployees
(2)Variablecosts:Marketingandoperations
(1)TrafficSignals:publiclicensetomunicipalities(2)Car'sonboardsoftware:itmaybesoldtothecarindustryasanasset
saleorasaspecialdevicedirectlytocarownersforafixedprice(3)Signalpriorityforcleanvehiclesmaybesoldtoelectricandrenewablefuelledtrucksthatoperateinsmartlogisticsolutions.
(1)Citycouncil/Municipalities(2)Thirdpartiesintheautomobileindustrythatwanttoadvanceinautonomouscar(3)Othertechnology
companies
(1)Softwareandhardwaredevelopmentandmanagement
(2)Customisedinformationforsomedriverstoreduce
traveltimes(3)Engagingwithpartners
Tomanagecitytrafficmoreefficientlyandsmoothly,reduce
trafficcongestion,andlessenenergy
consumptionandemissions,noiseandriskofaccidents
(1)Technicalassistance(2)Self-service
Publicadministrations/Muni
cipalitiesCitizens/DriversPrivatesectora.Hardwaregatheringand
deliveringinformationtotrafficsignals
b.Softwareintrafficl ightsandacar’sonboardsoftware
c.Humanresources
(1)Website(2)DirectSalestocities/automobilecompanies
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Keypartnerships
Thekeypartnersarethefollowing:(1)Citycouncil/Municipalitieswhowanttoimprovetrafficflows.(2)Freight/carrierscompanieswhowanttoimprovethetimeoftheirdeliveriesandthefuelconsumptionoftheirvehicles.(3)Thirdparties in theautomobile industry thatwant to improvethemobilityoffreightvehicles(4)Othertechnologycompanies
Customersegments
Thecustomersthatwillusethissoftwarewillbe:
• Carrierscompanieswhowanttoreducetheirtravellingtimesandtheirvehiclesfuelconsumption.
• Automobileindustryinterestedtodevelopthissoftwareasaspecialdeviceforitsvehicles.
• Publicadministrations/Municipalitiesthatwanttoimprovethetrafficflowintheirstreets.
Valuepropositions
Thereareseveralvaluepropositions,dependingonthespecificsolution:• For cities: Improve traffic flows and reduce energy consumption, emissions,
noiseandriskofaccidents• Forcarriercompanies:toimprovetimeofdeliverandfuelconsumption.
Channels
• Directsalestocarriers,cities/automobilecompanies.
Customerrelationship
• Technicalassistance• Self-service
Revenuestreams
Therevenueforthismeasurecancomefrom:SellingthedevicetoautomotiveindustrySellingthedevicetocarriers.Usagefeefrommunicipalities
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Coststructure
(1)Fixedcosts:a.Softwaredevelopmentandmaintenanceb.Hardwaredevelopmentandmaintenancec.Salariesofemployees
(2)Variablecosts:a.Marketingandoperations
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Solution 11. Alternative fuel driven vehicles for decarbonizing and better air quality
There is no singlepropulsion technology that alone can replace today’s fossil fueledvehicles, the solution must be a combination of smarter mobility running on bothelectricityandsustainablebiofuels.While themarket development is a bit on itsway for light duty vehicles andbuses,distributiontruckswhicharesoimportantforcitiesstillhavejuststartedtodevelop.Forelectricalvehicles,theaccesstochargingfacilitiesmaybeaconcern,andinsomecitiesalsotheimpactonthelocalgrid,astheyareexpectedtoloadataboutthesametime.Initiallytherewillnotbechargingpostseverywhereandthereisaneedforthedriverstoknowwheretheyarelocatedandiftheyareoccupied.ThisisanessentialpartforthewideruptakeofEVs.GrowSmarterwilldemonstratehowtheuptakeofthesevehiclescanbespeededupbyan integrated approach combining better charging and fueling facilities, informationhelpingeffectthechoiceofvehicleusersandbuyersandtheuseofthesevehiclesinthedifferentmobilitymeasuresintheproject.Themainimplementationchallengeforcharginginfrastructureonpubliclandis,inallthelighthousecities,relatedtotheplanningprocessesandpermitsrequiredtoinstallprivately-operated infrastructure. In addition, Cologne is exploring the possibility ofusingexistingtrafficlightsystemstoinstallchargingpoints.InBarcelona,thisoption,islegallyunavailable.Besidethisgeneralchallenge,therearesomespecificrealitiesfromcity to city, such as in the case of Barcelona, where recently the City Council hasapprovedanorderwherevehicleswithaspecificlevelofemissionwillnotbeallowtocirculateintheBarcelonaRingRoads.Thispolicyisaccompaniedwithatwoyearsfreerideonpublictransportsforallthecitizensthatretirethesekindsofvehicles.ThispolicycanbeastimulustoincreasetheuseofEVforcitizensandcompaniesinBarcelona.Onitsside,StockholmcanbenefitfromtherecentdecisionfromSwedishGovernmenttosubsidiseconsumerpurchasesofelectriccyclesandelectriccargobikeswitha25%rebate.ThisrealitycanimprovetheuseofEcyclesinStockholm.ConclusionsregardingtheBusinessModelsrelatedtosolution11.
ThePublicsectorisaprescribertoimpulsethebusinessmodels(BMhenceforth),inthesensethattheCityCouncilcanstimulatedthecreationoftheseBMbygivingsomedirectorindirectsubsidies(orreductionoftaxes)totheIndustrialPartner.Theprescriptioncanalsobeindirect,byprohibitingtheuseoffueledvehiclesinsomespecificareasofthecityandinsomespecificclimateconditions.Thecapacityofsuccessof theseBMis relatedtothe levelsofuseofEVs,byprivateowners,car-sharingcompaniesordifferenttransportservices.
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Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regardingjobcreation,thereisajobmarketrelatedtotheseBM,asthereisaneedofmanpower regarding the management of the charging stations, although it mightincludesomenewskills,nottoomany,andtheintensityofuseofmanpowerwillbelow.ItseemsthatthereisapossibilityofreconversionoftraditionalFuelStations.TheresultsofthemanagementofthedatacollectedfromtheseBM,canimprovethemanagement of the charging stations, and also can be an argument to increase theimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEV.Finally,theBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas9,relatedtotheimplementationoftheuseofe-bikesore-tricycles(seemeasure9.1,inBarcelona).
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Barcelona.E-mobilitychargingsystemSoftware
Measuresrelated:11.1&11.2.eMainindustrialPartner:ENDESADistribución
SummaryoftheBusinessModel:5 charging “towers” available for electric cars (measure 11.1), and fast chargers forelectricvehicles(measure11.2.e).ENDESADistribución(henceforthEndesa)offersthisservicefreeofcharge,andtheCityHallpaysthebilloftheElectriccost.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
StaffsalariesChargingtowersinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts
Revenuescouldcomefromtheenergysuppliedtothee-vehicles,however,inthesemeasures,theenergycostissubsidizedbytheCitycouncil
Thecompanycouldhavefixedrevenues,forinstancesellingtheproductwithfixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthechargingtowers.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).
Citycouncil
E-Vehiclesdrivers
Installationandoperationofcharginginfrastrucutre
Dataaquisitionanddatamanagementofchargingpoints
ForEVdrivers: easieraccesstochargingstationsFormunicipality :fulfillenviromentalrequirementsForsociety: positiveenviromentaleffects
Withthefinalcustomers,B2C.
WiththeMunicipality,PPP.
ElectricVehicledriversOrganizationswithElectricVehicles
Municipality
ElectricVehicleChargersHumanResourcesITSystemandinfrastrucutre
Thecontractor(citycouncil)willhavearegularrelation,followingupthe
evolutionoftheimplementationofthe
chargingtowers.
Keyactivities
Installationofchargingtowersavailableforchargingelectricvehicles.Endesainstallsthechargingtowers,andtheCityhallassumestheelectriccostofthecharges.Thereisalsoasoftwarerelatedtothatelectricchargers.Onceinstalled,andthesechargingstationsareavailableforanyelectricvehicle,thosecanusethemforfree,sincecurrentlyatthismoment,itissubsidizedbytheCityhall.KeyResources
PhysicalAssets:Chargingtowers.Humancapital:engineers&workers.Thefirstdesigningthetowersandcontrollingtheiractivityandthelastinstallingthemandkeepingtheirmaintenance.Technology:sensorscollectingthedatarelatedtothestatusofchargingtowers.Financialresources.
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Keypartnerships
TheKeypartneristheCityCouncilthatauthorisestheinstallationoftheChargingtowersandalsosubsidisesthecostofchargingthevehicles.CustomerSegments
Municipality who want to improve the use of electric vehicles, and therefore, thereductionofpollutiongeneratedbytraditionalvehiclesUsersthatcanhaveanincentivetohaveaelectricvehicle,asthecostofchargingthemissubsidized.ValuePropositions
Forthecityhall,thegoalistoreducethepollutionbyincentivisingtheuseofelectricvehicles.For Endesa, the goal is to observe the operability and the financial balance of thechargingtowers.Forthefinalcustomers(thecitizens)thegoalistoreducetheemissionofCO2andNOxbyusingelectricvehiclesandeasieraccesstochargingstations.Forthesociety,thegoalistohavepositiveenvironmentaleffects.Channels
Thecontractor(citycouncil)willhavearegularrelation,followinguptheevolutionoftheimplementationofthechargingtowers.
Customerrelationship
Withthefinalcustomers,B2C.WiththeMunicipality,PPP.Revenuestreams
Revenues could come from theenergy supplied to thee-vehicles,however, in thesemeasures,theenergycostissubsidizedbytheCitycouncilThe company could have fixed revenues, for instance selling the productwith fixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthechargingtowers.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).
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Coststructure
StaffsalariesChargingtowersinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts
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Cologne.eTankEelectriccharging
IndustrypartnersinCologne:RheinEnergieThirdPartners:CambioandAmpido.Measuresrelated:11.1Shortdescription:Installation of several charging infrastructures for tenants to charge their electricvehicles.ItisasolutionincooperationwithKVB,thecar-sharingcompanyCambioandthecarpark-sharingcompanyAmpido.
Keyactivities
Thekeyactivityis:
• Electricalvehicleschargingstations.
Toreachittherewillbeaneedtoimplementotheractivitiessuchas:
• Softwareandhardwaredevelopmentandmanagement• Networkplanningandadaptationtodecidewheretomostefficientlyimplement
thechargingstations
Therearesomeindirectactivitiesderivedfromthekeyone:
• Energydataanalytics• ThecapacitytousetheEVasenergystoragedevicesbalancingpeakloadsand
makingoptimaluseof renewableenergy, andpartof the city’sMobilityHubconcept(seeMeasure12.3inCologne).
Keyresources
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Provisionandmaintenanceofinfrastructure(2)Developmentandhostingofthewebsite
(3)Salariesofemployees(4)Variablecosts(Electricity,Marketingandoperations)
(1)Duringanintroductoryperiod,chargingisprovidedfreeofcharge(theonlycostfortheuseristhepriceoftheSMSthattheyneedtosend)
(2)Afterthatausagefeemightbecharged(3)Potentialpartnershipswithmunicipalities
(1)Othercompaniesinthee-mobilitysector(2)Citycouncil/Municipalities
(3)Othercleanenergytechnologycompanies
(1)Electricalvehiclescharging(2)Softwareandhardware
developmentandmanagement(3)Networkplanning
(4)Energydataanalytics(5)Engagingwithpartners
(1)Promotionofplug-inhybrid-electricandelectricvehicles
(2)Itdiscouragestheunnecessaryuseof
privatecarsandreducestrafficcongestion
(3)Thesystemwillalsocollectdataandhelp
forecastingthedemandforelectricity,improving
energyefficiency
(1)Freecharging(2)Customerservices
(3)Self-service
(1)Citizens/users(2)Municipalities
(1)Physicalassets/infrastructure(2)Technology/R&D
(3)Software(4)Humanresources(5)Brand
(1)Cchargingstations(2)Website
(3)Mobilephones(4)Partnerprograms
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TheKeyresourcesneeded:
• Physicalassets/infrastructure:chargingstations• Technology/R&D• Softwaretomanagethechargingprocess• Humanresources(technicalknowledge)• Brand
Keypartnerships
TheKeypartnersare:
(1)Companiesinthee-mobilitysector:thesolutionisimplementedincooperationwith KVB, the car-sharing company Cambio and the carpark-sharing companyAmpido.(2)Citycouncil/MunicipalitiesthatwantstoimprovetheuseofEV(3)Othercleanenergytechnologycompanies
Customersegments
Thecustomerswillbe:• Citizens/userswhowanttousemoresustainablemodesoftransportation• MunicipalitiesthatwantstoimprovetheuseofEV
Valuepropositions
• Forcitizens/cities:promotionofplug-inhybrid-electricandelectricvehiclesinopposition to fossil fueled vehicles, which lowers carbon emissions andpollution,resultinginabetterairquality
• ForEVCarSharingandcarparkSharingcompanies:itstimulatestheuseoftheirservicesastheywillhavemorechargingpointsinthecity.
• Forelectriccompanies/publicministerofenergyorsimilar:Thesystemwillalsocollectdataaboutthepublicandprivatechargingstationsandhelpforecastingthedemandforelectricity,improvingenergyefficiency
Channels
• Directphysicallocation:chargingstations• Website:users/customersarerequiredtoregisterattankEwebsitetousethe
chargingstations• Mobilephones: tostartorstopthechargingprocessyouhavetosenda text
messageviamobilephone• Partnerprograms
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Customerrelationship
• Freecharging(foraperiodoftime)• Customerservices(email,website,phone)• Self-service
Revenuestreams
(1) Duringanintroductoryperiod,chargingisprovidedfreeofcharge(theonlycostfortheuseristhepriceoftheSMSthattheyneedtosend)
(2) Afterthatausagefeemightbecharged(3) PotentialpartnershipswithmunicipalitiesandwithCarsharingcompanies.
Coststructure
• Chargingstations:provisionandmaintenanceofinfrastructure• Developmentandhostingofthewebsite• Salariesofemployees(engineeringandtechnicalstaff)• Variablecosts:
a. Electricity: cost of electricity depends on the current status of theelectricitygrid
b. Marketingandoperations
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Stockholm.FastandnormalcharginginfrastructureforEVs
Measuresrelated:11.1&11.3Industrypartners:FortumShortdescription:Onerapid(measure11.1)andeightnormal(measure11.3)chargingpointshavebeenimplemented by Fortum. The rapid charging point was installed at a roadsideMcDonald’s.Fastchargingstationsprovideelectricvehicleswithfullychargedbatteriesinlessthan30minutes.TheeightnormalchargingpointsatlocatedatVallaTorgandconsistoffourpoleseachequippedwithtwoconnections.Thesechargingpointswillserveusersofthecarpoolservice(measure12.1)andsmarthomeapplication,alongwiththegeneralpublic.
Keyactivities
Thekeyactivitiesare:
• Installationof9chargingpointsofferingnormalandfastchargingtoElectricalvehicles.
• Maintenanceofthechargingpoints• Collectionandmanagementofenergydataanalytics
Keyresources
• PhysicalInfrastructure:chargingstations• Technology/R&D• Energy/Powerlines• Humanresources(technicalknowledge)
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams(1)Provisionandmaintenanceofinfrastructureand
equipment(2)Signageandmarking-outthearea
(3)Salariesofemployees(4)Variablecosts:ElectricityandMarketingand
operations
(1)Duringaperiodchargingisprovidedfreeofcharge.TheCouncilwill analysedifferentbusinessmodelsandpricingmechanismsthatcouldbeimplementedafter
theinitialperiodoffreecharge(1)Stockholm:Theoperatormaychargefortheservice.ThepriceinStockholmiscurrentlybetween0.20-0.25€/minutewithnospecialparkingfeeforthefast
chargers.
(1)Othercompaniesinthee-mobilitysector(2)CityCouncils/Municipalities
(3)TaxisandCouriercompanies
(3)Othercleanenergytechnologycompanies
(1)Electricalvehiclescharging
(2)Powersupply(3)Fastcharging
stationsinstallationandmaintenance
(4)Energydataanalytics
(1)Fastcharginghighpowercharging-stationsofferthepossibilitytofullychargeanalmost
emptybatteryinlessthanhalfanhour
(2)Promotestheuseofelectricvehicles
(3)Forthecitycouncils:allowsthembetterunderstandcitizens’
behaviorandtodevelopmoretailoredpoliciestowardse-mobility
(1)Freechargingtoearlyadoptersuntil2017(2)Self-service
(3)Freeparkingwhilecharging (1)Citizens/drivers
(2)Couriercompanies(3)Electrictaxis(4)Municipalities
(1)PhysicalInfrastructure(2)Technology/R&D
(3)Energy/Powerl ines(4)Humanresources
(1)Directphysicallocation:charging
stations.(2)Partnerprograms(CityCouncilorprivatesector
partners)
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Keypartnerships
TheKeypartnersare:
(1) DriversofEV(2) Companiesinthee-mobilitysector(2)CityCouncils/Municipalities(3)TaxisandCouriercompanies(3)Othercleanenergytechnologycompanies
Customersegments
• Citizens/driverswhoownanelectricvehicleorareinterestedinbuyingone• CouriercompaniesthatwanttouseEV,andthereforereduceenergycosts.• Taxis(electrictaxis).• Municipalitiesthatwanttopromotecleanvehiclesandmoresustainablemodes
oftransportation• CarSharingCompaniesthatwanttoofferabetterservicetotheirclientsthanks
toofferingmorechargingpoints.
Valuepropositions
Themainvaluepropositionsare:• Plug-inhybrid-electricvehiclesusuallychargetheirbatteriesoveralongperiod
of timeata lowcurrent.Fastcharginghighpowercharging-stationsofferthepossibility to fully charge an almost empty battery in less than half an hour,allowingforgreaterconvenience,speedandavailability.
• Promotestheuseofelectricvehiclesinoppositiontofossilfueledvehicles,whichlowers carbon emissions, noise and air pollution, and results in a better airquality,whilefacilitatingthefutureimplementationofe-mobility.
• Forthecitycouncils:theyreceivedatafromtheusageandoperationofthefastchargingstations,whichallowsthembetterunderstandcitizens’behaviorandtodevelopmoretailoredpoliciestowardse-mobility.
• ForCar-sharingcompaniesofferingEV,allowsthemtogivemorechargingpointstotheircustomers.
• For EV companies, the option to havemore charging points in the city is anincentivetofuturecustomers.
• ForEVdrivers,itallowsfreeparkingwhilecharging
Channels
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• Directphysicallocation:chargingstations.Thefastchargersarelocatedonpublicland, for which the suppliers have been granted access rights by the City ofStockholm. Additionally, there are other fast chargers that have also beenestablishedonprivateland.Inthesecases,othertypesofagreementshavebeensignedbetweentheoperatorandthelandownerwithoutanyinvolvementfromthecity,suchasthefastchargingstationbyFortumtogetherwithMcDonald’sattheparkingfacilitybyMcDonald’srestaurant.
• Partnerprograms (CityCouncilorprivatesectorpartners, suchascar-Sharingcompanies)
Customerrelationship
• Self-serviceRevenuestreams
(5) Usagefee:Theoperatormaychargefortheservice.ThepriceinStockholmiscurrentlybetween0.20-0.25€/minutewithnospecialparkingfeeforthefastchargers. There canbedifferent feesdependingonwho is charging, if it is aprivatedriver,orauserofaCar-Sharingservice.PartofthefeecanbepaidbytheCityCouncil,toencouragetheuseofEV.
Coststructure
• Chargingstations:provisionandmaintenanceofinfrastructureandequipment• Signageandmarking-outthearea• Salariesofemployees(engineeringandtechnicalstaff)• Variablecosts:
a. Electricity / Power supply: cost of electricity depends on the currentstatusoftheelectricitygrid
b. Marketingandoperations
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BarcelonaChargingbatteriesfore-tricyclesande-bikes.
Measurerelated:11.3IndustrypartnersinBarcelona:i2Cat,CENITThirdpartners:VanapedalSummaryofBusinessModelCENITandi2Catareimprovingsomechargingbatteriesfore-tricyclesande-bikesthatarebeingstetedbyVanapedalinthemeasure9.2.
Keyactivities
The activity is to create charging stations for e-bike & e-tricycles. The measure iscenteredtobeusedbythee-tricyclesfromtheUrbanConsolidationCenterinBarcelona(seemeasure9.1),butitcanbeusedforprivateownersofe-bike&e-tricycles.Keyresources
Thekeyresourcesare:(1) Physicalassets:chargingstations,andbatteries.
KeyPartners KeyActivities ValuePropositionsCustomer
RelationshipsCustomerSegments
(1) carriers/Transportationcompanies
(2) Citizens(3)Citycouncil/Local
governments
(1)Charginge-bikesande-tricycles.
(1)Traditionalcarriers:increasetheuseofe-bikesore-tricyclesforthelast-miledelivery.
(2)Citizens:increasetheuseofe-bikesore-
tricycles(3)Community:reducedenvironmentalandnoise
impact(4)CityCouncil:to
monitorthenoiseandpollutionlevelsinthat
area
(1)Customersupport(2)Personalassistance
(1)Citizens(2)Carriers/Transportation
(3)CityCouncils/Municipalities
KeyResources Channels(1)Physicalassets
(chargingstations,andbatteries).
(2)Humanresources(operationsstaffofthechargingstationsand
replacementofbatteries)
(1)Withcitizens:WebsiteandMobile
phoneapps(2)Withcarriers:
Salesforceandwebsales
CostStructure RevenueStreams
(1)Fixedcosts(Runningcosts,Salaries,Chargingstationsandchargingassets)
(2)Variablecosts(CostsofmanagingtheChargingstations)
(1)Feechargedtocarriers(2)Feechargedtocitizens
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(2) Humanresources:operationsstaffofthechargingstationsandreplacementofbatteries.
Keypartnerships
Normallythekeypartnerswillbecarriers/transportationcompaniesinterestedtouseEV for the lastmile distribution. But citizens using e-bikes or e-tricycles can also bepartners,asCityCouncils,thatmightwishtopromotetheuseofthesekindsofvehicles.CustomerSegments
Thecustomersegmentscanbelistedasfollows:Citizens:Wholiveinurbancentersandusee-bikesorsimilarEV.Carriers/Transportation: Transportation companies for which is difficult to deliverefficientlyinthelast-mileofcitycenters,andthereforeusee-bikesorsimilarEV.Citi Councils and Municipalities (citizens included): Municipalities that will like toimprovetheuseofe-bikesorsimilarEV.ValuePropositions
Thevaluepropositionfortheusersofthechargingstationsisanimprovementoftheenergyconsumptionandoftimeconsumption,forcarriercompanies.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelofpollutiongeneratedbytheuseofe-bikesorsimilarEV,morepreciselyinsubstitutingpollutingvehiclesforothermoreenvironmentallysustainable.Channels
Withcitizens:WebsiteandMobilephoneappsWithcarriers:SalesforceandwebsalesCustomerRelationships
Therelationwiththefinaluserwillbebygibingacustomersupportandpersonalassistanceifneeded.RevenueStreams
(1) Feechargedtocarriers(2) Feechargedtocitizens
Coststructure
(1)Fixedcosts(Runningcosts,Salaries,Chargingstationsandchargingassets)(2)Variablecosts(CostsofmanagingtheChargingstations)
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Stockholm.Renewablefuelsforheavydutyvehicles
Measurerelated:11.4Industrypartners:StockholmThirdpartners:GasnätAB,OKQ8,ST1(Shell),StatoilShortdescription:10newfuelingstationsforalternativefuels–biogas,ED95,HVOandRME–forheavyvehicleswillbeprovidedinordertoincreasethenumberofheavyvehiclesoperatingonbiofuelsinStockholm.
Keyactivities
Thekeyactivitiesare:
• Installingnewfuelingstationsforalternativefuelsandaddingalternativefuelstoexistingdieselstations
• Energysupply:provisionofbiofuels• Datamanagement:Managementof data collected from the fuel stationswill
allowanimprovementofthosefuelstations.Keypartnerships
TheKeypartnersare:
(1) CityCouncils/Municipalities(2) SwedishTransportationAgency(3)Companiesintheenergysector/Energysuppliers(fuelcompanies)(4)Freightandtransportationcompanies
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Provisionandmaintenanceofinfrastructureandequipment
(2)Biofuels/Powersupply(3)Salariesofemployees
(4)Variablecosts(Marketingandoperations)
(1)Usagefee:Users/freightcompaniespayapriceperquantityofbiofuel
(1)CityCouncils/Municipalities(2)Swedish
TransportationAgency(3)Fuelcompanies(4)Freightandtransportationcompanies
(5)Companiesintheautomotiveindustry
(1)Energysupply(2)Install ingnewfuelling
stationsforalternativefuelsandaddingalternativefuelstoexistingdieselstations
(1)Itreducesthenegativeimpactsof
transportation(2)Itincentivesthe
useofheavyAFVsandpromotessustainable
economicdevelopment.
(1)Consumerassistance(2)Self-serviceinfuelling
stations (1)Drivers/freightcompaniesusingheavy
vehicles,suchasdistributiontrucks.
(2)Municipalities/localgovernments.(1)PhysicalInfrastructure:
fillingstations(2)Technology/R&D
(3)Biofuels(4)Humanresources
(1)Directphysicallocation(2)Indirect:referralsthroughotherusers(3)Partnerprograms
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(5)Companiesintheautomotiveindustry
Keyresources
• PhysicalInfrastructure:fillingstations• Technology/R&D• Biofuels(Biogas,ED95,HVO,RME)• Humanresources(technicalknowledge)
Customersegments
• Drivers/freightcompaniesusingheavyvehicles,suchasdistributiontrucks.• Municipalities/localgovernments.
Valuepropositions
Themainvaluepropositionsare:• Bio-fueledtrucksreducebothlocalemissionsandcarbondioxideemissionsand
thusreducethenegativeimpactsoftransportation.Insomecases,noiselevelswillalsodecrease.
• Themarketforalternative-fuelcarsisalreadydeveloped,butnotsomuchforheavyvehicles.ThissolutionfocusesonincentivizingtheuseofheavyAFVsandpromotessustainableeconomicdevelopment.Theestablishmentoffuelstationsforrenewablefuelsacceleratestechnologydevelopmentandthetransitiontofossilfreefreighttraffic.
• CargotransportationisexpectedtoincreaseintheupcomingyearsinSwedenandStockholmandthereforeitiskeytoreplacefossilfueledvehiclesbothwithelectricandsustainablebiofuels.
Channels
• Directphysicallocation:fuelingstations• Indirect:referralsthroughotherusers• Partnerprograms
Customerrelationship
• Consumerassistance• Self-serviceinfuelingstations
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Revenuestreams
• Usagefee:Users/freightcompaniespayapriceperquantityofbiofuel.PartofthefeecanbeassumedbythecitycouncilwillingtoimprovetheuseofheavyEV.
Coststructure
• Fuellingstations:provisionandmaintenanceof infrastructureandequipment.TheCityisresponsibleforfindingandrentingtheland,whichisleasedtofillingstationoperatorsatastandardprice,ontheconditionthatatleasttwodifferentbiofuelsaresuppliedateachstation.Privatecompaniesareresponsiblefortherestoftheinvestment.
• Biofuels/Powersupply• Salariesofemployees• Variablecosts:
Marketingandoperations
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Barcelona.SmalldistributedCompressedNaturalGasfillingstation
Measurerelated.11.6MainindustrialPartner:GasNaturalFenosaSummaryoftheBusinessModelSettingonesmallCompressedNaturalGas(henceforthCNG)fillingstationgivingservicetoCNGvehicles.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
Fixedcosts(equipment,engineering,construction,
maintenance,counciltaxes)
Variablecosts(energysupplyinfrastructure)Naturalgassalesondispenser(€/kilo)
EngineersSuppliersInstallersDepartmentsofthecompanyitselfandbusinessareasPublicadministration(urbanlandscapedepartment,mobility,district,amongothers)InstallationcompanyDistributionSystemOperator(DSO)MunicipalityorlanderownerElectricityretailcompany
Technicalspecificationsdefinition
(basicengineering)
Sitelocationofthefillingstation
DesignandsizeInstallation:
optimizationofpublicsurfacespace
EquipmentandInstallation
tenderingprocess
WorkSupervisionincludinghealth
andsafetyissues,detailed
engineering,amongothers.
Worksplanningandcommissioning.
Monitoring,managingandcontrol
Maintenanceanddatacollection
FortheCity:CNGfillingstationsgrid(onlytwointhecity),lesspollution,lessnoise.ForCarriers:Lastmilemoreeconomicservicecomparedwithpetrolordiesel.
Formunicipality/propoertyowner:fulfillenviromental
requirementsandmakeuseof
thespacebyrentingthat
Forsociety:positiveenviromental
effects
Customers(B2C)Vehiclefleetsortaxis(B2B)
Privatecustomers
Companies’andcityvehicle
fleets
Taxis
OrganizationswithElectric
VehiclesFundstoinvest
SustainableMobilityDepartment
Administrationmanagerfor
bureaucracymanagement
Technology,coordinationand
managementcapability
Humanresources
Monitoringplatformforcustomer
monitoring,analysisandloyalty
Directsales
Cardealers
Advertisingcampaignviawebsite
Personalizedcommercial
campaignsforkeycustomersor
companies
Keyactivities
InstallationoftheCNGfillingstation.Theytriedtoinstalltheminthestreetbutafterhavingseveraldifficultiestodoso,theydecidetoincludetheminastandardGasstation.ToinstalltheCNGfillingstationtheyhadtodefinetechnicalspecifications,decidethesite location,define thesizeof the installation.Onceall thedesignwassettled,GNFstartedatenderprocesstodotheinstallation.OnetheCNGfillingstationwasinstalled,itneedsmaintenance,andthereforemonitoringit,andmanagingthedatacollection.
KeyResources
PhysicalAssets:CNGfillingstation.
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Human capital: engineers & workers. The first designing the filling stations andcontrollingtheiractivityandthelastinstallingthemandkeepingtheirmaintenance.Technology:monitoringplatformforcustomermonitoring,analysisandloyalty.Financialresources.PrivatefundingsKeypartnerships
TheKeypartnerarethefollowing:TheCityCouncilthatauthorisestheinstallationoftheCNGfillingstationsinthestreet,althoughthisoptionhasn’tsucceededso,thispartnermightnotbecrucialanymore,besidethefactthatitistheauthoritythatallowsinstallingtheCNGinthefuelstations.Theengineers,suppliersandinstallersneededtoinstalltheCNGfillingstationTheDepartmentsofthecompanyitselfandbusinessareasThefuelstationwheretheCNGfillingstationwillbeinstall.Thefinalclients(citizens,companies’vehiclefleets&taxis)thatwillustheCNGfillingstation.CustomerSegments
Privatecustomers,Companies’andcityvehiclefleets&Taxisthatwanttofulfilltheirvehicles.ValuePropositions
FortheCitycouncil:CNGfillingstationswillreducepollutionandnoise.Forcarriers:Lastmilemoreeconomicservicecomparedwithpetrolordiesel.Forfinalcustomers,thegoalistobeabletofulfiltheirvehiclesandreducepollution.Channels
Directsales,advertisingcampaignviawebsiteandPersonalizedcommercialcampaignsforkeycustomersorcompanies.Customerrelationship
ThereisaB2CrelationwithcitizensandaB2BwithVehiclefleetsortaxis.
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Revenuestreams
RevenuescouldcometheNaturalGassalesondispensers.Coststructure
Fixedcosts(equipment,engineering,construction,maintenance,counciltaxes)Variablecosts(energysupplyinfrastructure).
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Solution 12. Smart mobility solutions
Public transport isagoodalternative topersonalcars for regular trips toschoolandwork,andtheLightHousecitiesinGrowSmarteralreadyhavearelativelygoodshareofPublicTransportforthesetrips.Thebigchallengeishencetosubstitutethecarinothertripsthatarelessregularandmoreindividual.StatisticsaboutCarSharing,BikeSharing,different vehicles Pools in the lighthouse citiesmight offer a gooddimensionof therealityandthereforeoftheproblemtoovercome.GrowSmarterwill launcharangeofdifferentsolutionscompletingtheexistingpublictransportnetwork.Thisincludesbikepools,cargobikes,e-bikes,EV-poolsandimprovedshuttlingtobushubs,andimprovedtaxiservicethusprovidingthechoiceofthebestoptionforeachindividualtrip.Thereare somespecific realities fromcity tocity thathave tobeknown, to see thepotentialofsomeofthemeasures.ItisthecaseofBarcelona,whererecentlytheCityCouncilhasapprovedanorderwherevehicleswithaspecificlevelofemissionwillnotbeallowtocirculateintheBarcelonaRingRoads.Thispolicyisaccompaniedwithatwoyearsfreerideonpublictransportsforallthecitizensthatretirethesekindsofvehicles.Thispolicycanbeastimulus to increasetheuseofEV forcitizensandcompanies inBarcelona.Onitsside,StockholmcanbenefitfromtherecentdecisionfromSwedishGovernmenttosubsidiseconsumerpurchasesofelectriccyclesandelectriccargobikeswitha25%rebate.ThisrealitycanimprovetheuseofEcyclesinStockholm. ConclusionsregardingtheBusinessModelsrelatedtosolution12.
FortheBMrelatedtothissolution,thepublicsectoralthoughitcanbeaprescribertoimpulsethem, itmighthaveamoreactiveposition insomemeasures, than inothersolutionsrelatedtotheWP4.Thereasonforthismoreactivepositioncanbefoundinthe fact that some of themeasures need the use of public land owned by the CityCouncil,orinothercases,themeasuresarerelatedtothelegalrealityofthecity.The capacity of success of these BM is related to the levels of use of the differentmeasuresproposed.Inanothersense,theBMseemtohaveahighpotentialityofreplication,astheyarenotseenasbeinghavingasustainablecompetitiveadvantage,meaningthattheyarenotrare,hardtoimitateandwithoutsubstitutes,so,theycanbereplicatedinothercities.Regarding job creation, theBM related to this solution seem tohave a lowneedofmanpower,although,theywillbenewjobs,relatedtothesharingeconomyorthedigitaleconomy,soitcanbeanopportunityofreconversionforlong-termunemployedorforyoungworkers.
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TheresultsofthemanagementofthedatacollectedfromtheseBM,canimprovethemanagement of the measures, and also can be an argument to increase theimplementationofmoreincentivesfromtheCityCounciltoimprovetheuseofEV,CarSharingorotheraspectsrelatedtothemeasures.Finally,someoftheBMpresentedinthissolutioncanbemergewiththeBMofothersolutions,suchas11,relatedtotheinstallationseofChargingStations.
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Barcelona.SmarttaxistandsysteminBarcelona
Measurerelated:12.6MainindustrialPartner:CENIT
SummaryofBusinessModelAmobileapplicationthatwillserveforboth,taxidriversandusers, informingofrealtimesituationaboutoccupancylevelsofthetaxistands.ThecompanyofferingthisservicecouldbehiredbytheTaxiAuthority.Thiscompanycouldbeaspin-offfromtheResearchCenter(forthisbusinessmodeldefinitionwewillassumethatthecompanywillbeCENIT).
Keyactivities
Themain tasks carriedouthavebeen the searchand findingof theappropriate taxiranksto installthetechnologytomonitorvehiclesandthereviewofalltechnologiesavailabletomonitorvehiclepresenceaswellasthewirelesscommunicationsystemsand the final installationof the sensors. In collaborationwith theTaxiAuthorityandCellnexTelecom,threetaxirankswereselectedintheareaofSantMartí.AhypotheticalimplementationofthemeasurewillbetheinstallationofseveralsensorsinthetaxiranksandthedevelopmentofanAPPusedbybothcitizens&taxidriversthatwillindicatewhichtaxiranksareemptyand,therefore,improvetheefficiencyoftaxi’smobility.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
StaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts
Revenuesthatcomedirectlyfromthemunicipality(ortaxiauthority)thatispayingforthissoftware.
Thecompanycouldhavefixedrevenues,forinstancesellingtheproductwithfixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsofthesoftware.Onthiscase,therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).
Municipaltaxiauthorities(ortheCityCouncil)TaxiAssociationstechnologicalpartnerimplementingthesensors(inthiscaseCellnexTelecom).
searchandfindingoftheappropriatetaxiranksinstallthetechnologytomonitorvehiclesInstallthewirelesscommunicationsystemsandthefinalinstallationofthesensors.DevelopmentofanApptobeusebyTaxisandUsers
Forthecityhall:toimprovethetrafficflowandreducethepollution.FortheTaxiAuthority:offerabetterservicetobothtaxisandcitizens.Forthetaxiscompanies:toreducethefuelconsumptionandalsotoofferabetterservicetotheirclients.Forthefinalcustomers(thecitizens):toreciveabetterservicesfromtaxicompaniesandalsoimprovetheirqualityoflife
Thecontractor(CityCouncil)orTaxiAuthoritywillhiretheservice(PPP)
Publicadministrations/MunicipalitiesTaxisUsersPhysicalAssets:Taxistands
(public).Humancapital:engineerorapplicationdevelopersprogramingthesoftwareandfollowingupregularlyitsimplementation.Technology:sensorscollectingthedatarelatedtothestatusofthetaxiranks
Withthetaxis&citizens,bythemobileapplication
Withthetaxiauthority,theCityhallandtheITcompany,bytraditionalcommunicationsystems,informingtheevolutionofthemobileapplication.
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KeyResources
PhysicalAssets:Taxistands(public).Human capital: engineer or application developers programing the software andfollowingupregularlyitsimplementation.Technology:sensorscollectingthedatarelatedtothestatusofthetaxiranks.Financialresources.Keypartnerships
TheKeypartnersareMunicipaltaxiauthorities(ortheCityCouncil),TaxiAssociationsandatechnologicalpartnerimplementingthesensors(inthiscaseCellnexTelecom).CustomerSegments
Publicadministrations/Municipalitieswhowanttoimprovethetaxiservices,thetrafficintheircitiesandreducethepollutiongeneratedbytaxisrideswithoutpassengers.Taxiswhowanttoreducethetimeofridingwihoutpassengers,andthereforereducethefuelconsumptionandthatalsowanttoreducepollutionandimprovetheservicestotheircustomers.UsersthatcanhaveamoreefficientTaxiservices.ValuePropositions
For the city hall, the goal is to improve the traffic flow and reduce the pollution byreducingthetime&numberofTaxisridingwithoutpassengers.FortheTaxiAuthority,thegoalistoofferabetterservicetobothtaxisandcitizens.Forthetaxiscompanies,thegoalistoreducethefuelconsumptionthankstoareductionoftaxisridingwithoutpassengers,andalsotoofferabetterservicetotheirclients.For the final customers (thecitizens) thegoal is to reciveabetter services fromtaxicompaniesandalsoimprovetheirqualityoflifethankstoareductionofpollutionandanimprovementoftrafficflowthankstoareductionoftaxisridingwithoutpassengers.Channels
Withthetaxis&citizens,bythemobileapplicationWiththetaxiauthority,theCityhallandtheITcompany,bytraditionalcommunicationsystems,informingtheevolutionofthemobileapplication.
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Customerrelationship
Thecontractor(cityhallorTaxyauthority)willhavearegularrelation,followinguptheevolutionoftheimplementationofthesoftwaresystem
Revenuestreams
Revenuesthatcomedirectlyfromthemunicipality(ortaxiauthority)thatispayingforthissoftware.The company could have fixed revenues, for instance selling the productwith fixedprices(developingcosts+amargin)orhavingvariablerevenuesdependingonthefinalempiricalbenefitsof thesoftware.Onthiscase, therevenuesshoulddependontheresultsobtainedbytheentitytowhomitsoldthesoftware.Athirdscenarioistheonethatcombinesthetworevenuestreams(fix+variablerevenues).
Coststructure
StaffsalariesSensorsinstallationandreposition/maintenanceDatastructureandstorageMarketingandcommunicationsSoftwaredevelopmentandoperationcosts
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Cologne.Mobilityhub
Measurerelated:12.3IndustrypartnersinCologne:Cambio,Ampido,KVB,RheinEnergieShortdescription:Mobility hubswill provide commuters and residentswith a location,where you caneasilyfindvariouskindsoftransport,suchastrams,trains,buses,taxis,(e-)Car-sharing,(e-)Bike-Sharingandparkinglotswithonlinemanagementofparkingspaces.Therewillbethepossibilityfortheurbanadministrationtoregulateinner-citytrafficbyadjustingpricesaccordingtothedemandandcapacity.**Note:thisismoreinfrastructureprovisionwithdifferentbusinessmodelsontheside(suchaschar-sharing,bike-sharing,managementofparkingspaces,etc.)
Keyactivities
• Theprovisionanddevelopmentofawiderangeofmobilityandtransportationoptionsandinfrastructure
• Platform and software development for the online management of parkingspaces,adjustingpricesaccordingtothedemandandcapacity,andforthecar-sharingandbike-sharingsystems
• Engagingwithpartners• Promotionofthemobilityhubs
Keypartnerships
(1)Citycouncil/Municipalities(2)Privatebuilding,constructionandtransportationcompanies(3)Bikesharingcompanies
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
(1)Infrastructurecostsandmaintenance(2)Softwaredevelopmentandoperationcosts
(3)Staffsalaries
(1)Fortheparkingspaces:usagefee.Pricescanbeadjustedaccordingtodemandandcapacity.
(2)For(e-)Carsharingand(e-)Bike-Sharing:usagefee
(1)Citycouncil/Municipalities
(2)Privatebuilding,constructionandtransportationcompanies
(3)Bikesharingcompanies
(4)Carsharingcompanies
1)Provisionanddevelopmentofawiderangeofmobilityandtransportationoptions2)Softwaredevelopmentfortheonlinemanagement3)Engagingwithpartners
4)Promotionofthemobilityhubs
(1)Moreandbetterconnectedmobilityoptions,lesstraffic
congestionandlessairandnoisepollution,reductionoftheneed
forprivatecarownership
(2)Increasesthedemandforelectricvehiclesandbikes
(jobs),reductionininner-citytraffic
(1)Long-termcontractswithlocalgovernments(2)Self-serviceand
automatedserviceswiththeresidents/commuters
(1)Residents/commuters
(2)Localadministrators
(1)Physicallocations(2)PublicTransport
(3)BicycleandCarsharingsystem
(4)Technology(5)Humanresources
(1)Website(2)Mobileapps(3)B2Csales
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(4)Carsharingcompanies
Keyresources
• Physicallocationforparkinglots,Car-sharingandBike-sharingspaces• PublicTransport(trams,trains,buses,taxis)• BicyclesharingsystemsandCar-sharingsystems• Technology / Software for online management and pre-booking of parking
spacesandbikesandcarsinbike-sharingandcar-sharingsystems• Humanresources
Customersegments
• Residents/commuters• Localadministrators
Valuepropositions
Thevaluepropositionsare:(1) Forcommuters:
a. more and better-connected mobility options, improving the flexibility ofurbanmobility
b. less traffic congestion and less air and noise pollution (you can pre-bookparking spaces reducing inner city traffic, since you do not need to drivearoundlookingforaparkingspot)
c. reductionoftheneedforprivatecarownership(lesscosts)
(2) Forthecity:a. Increasesthedemandforelectricvehiclesandbikes,whichcouldhelpcreate
jobsandimprovequalityoflifeofcitizens.b. MobilityHubsareexpectedtoleadtoa60%reductioninCO2emissionsc. Urban administration can regulate inner-city traffic by adjusting prices
according to the demand and capacity: it is expected a 40% reduction ininner-citytraffic
Channels
• Website• Mobileapps• B2Csales
Customerrelationship
• Long-termcontractswithlocalgovernments• Self-serviceandautomatedserviceswiththeresidents/commuters
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Revenuestreams
• Fortheparkingspaces:usagefee.Pricescanbeadjustedaccordingtodemandandcapacity.
• For(e-)Carsharingand(e-)Bike-Sharing:usagefee
Coststructure
• Infrastructurecostsandmaintenance• Softwaredevelopmentandoperationcosts• Staffsalaries
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Cologne.Electricalandconventionalcarsharing
Measuresrelated:12.4Industrypartners:Cambio,KVBShortdescription:Themeasureiscomposedofthefollowingactivities:
1. Acarsharingservicewillbesetupwitharangeofdifferentcarstobeabletocater to everybody’s need in different situations. To completely be able notowningyourowncar it isnecessarythatcarpoolscanofferdifferentcarsfordifferentneeds.Anelectricvehiclemightbesuitableforshortertripsinthecitybutwhentravellinglongerdistanceswithabigfamilyanelectricvehiclemightnotfittheneedsanditisthereforeimportanttoofferalternatives.ThisofferwillbeputtogetherbyCambio.
2. Usersofpublictransportmusthavethepossibilitytousebus,tram(light-rail),bicycles and passenger cars with one ticket. Cambio and KVB are currentlydevelopinga so called “Mobilticket”, anenhancementof thealreadyexistingsubscription ticket.With this “Mobilticket” travelers will be able to use bus,trams,bicyclesandcarsharing-carswiththeirnormalseasonticket.
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams1.Fixedcosts(depreciationoffixedassets,salaries,technologicalinfrastructureandrunning(overhead-)costs,maintenance,rentofparkingspaces)2.Variablecosts(marketing,energy)
1.Feechargetocustomerbyseasontickets2.Feechargetocostumer3.Basicfees4.ExtraServices(insuranceetc.)
1.cardealerships2.Cityauthority(providingtheparkingspaceforvehiclesandbicycles)3.Nextbike(thirdpartyforlogisticofbicycles)4.Garageowners,privatehouseowners(providingtheparkingSpaceforCambioandKVB)5.Municipalgovernment(policydecisiontotrafficplanningofthecityofCologne)
1.Managingordersandprocessingthem(onlineregistration=signingofacontract)2.Provisionofcars,e-cars,bicyclesande-bicycles3.Creatingandmanagingtheinfrastructureofcarsandbikes4.Supplychainandlogisticsoptimization
1.forthecity/community:Lesstrafficproblems,lesscostsforgeneralmaintenancestreetwork,lesspollution,lessnoise,more"space"inthestreet2.forusers/costumers/localfirms:noneedofowncars,bicyclesorvehiclefleets3.forhomeowner:iftheyoffercarsharing,theycanbuildlessparkingspaceforthetenants
1.OnebyOne2.Marketing&Publicity(events,salesdriveetc.)3.customerrecommendation4.word-of-mouthrecommendationtocustomers(veryimportant!)5.longtermcontractsfortheparkingspace
privatecustomers2.company’s/localfirms/churchadministration3.cities/communities
1.Physicalassets
(passengercars,passenger
e-cars,transportvehicles,
bicycles,e-bicycles)
2.Humanresources
3.Technologycapability
1.Phonebooking2.Website3.Mobilephones(appsandSMS)4.customeroffice5.hotline
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Keyactivities
• Managing orders and processing them (online registration = signing of acontract)
• Provisionofcars,e-cars,bicyclesande-bicycles• Creatingandmanagingtheinfrastructureofcarsandbikes• Supplychainandlogisticsoptimization
Keyresources
• Physicalassets(passengercars,passengere-cars,transportvehicles,bicycles,e-bicycles)
• Humanresources• Technologycapability
Keypartnerships
• cardealerships• Cityauthority(providingtheparkingspaceforvehiclesandbicycles)• Nextbike(thirdpartyforlogisticofbicycles)• Garageowners,privatehouseowners(providingtheparkingSpaceforCambio
andKVB)• Municipalgovernment(policydecisiontotrafficplanningofthecityofCologne)
Customersegments
• privatecustomers• company’s/localfirms/churchadministration• cities/communities
Valuepropositions
Thevaluepropositionsare:1) forthecity/community:
• lesstrafficproblems,lesscongestion• lesscostsforgeneralmaintenancestreetwork• lesspollution,lessnoise• more"space"inthestreet
2) forUsers/Costumers/localfirms:• noneedofowncars,bicyclesorvehiclefleets• lesscosts
3) forhomeowner:• iftheyoffercarsharing,theycanbuildlessparkingspaceforthe
tenants• lesscosts
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Channels
• Phonebookingofcars• Bicyclebookingdirectonthebike• Website• Mobilephones(appsandSMS)
Customerrelationship
• OnebyOne• Marketing&Publicity(events,salesdriveetc.)• customerrecommendation• word-of-mouthrecommendationtocustomers(veryimportantforcarsharing)• longtermcontractsfortheparkingspace
Revenuestreams
• Feechargetocustomerbyseasontickets• Feechargetocostumer• Basicfees• FeeforextraServices(insuranceetc.)
Coststructure
• FixedcostsØ depreciationoffixedassetsØ StaffsalariesØ technologicalinfrastructureØ running(overhead-)costsØ maintenanceØ rentofparkingspaces
• Variablecosts
Ø marketingØ energyØ maintenancerepairs
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Stockholm.Greenparkingindex
Measurerelated12.1.Industrypartners:StockholmhelmThirdpartner:MoveAbout.Shortdescription:According to Swedish legislation, the constructionofnewbuildings, aswell aswhenrenovating old ones, requires the provision of a number of parking places perapartment.With the aim to reduce the demand for private parking and encouragealternativeformsoftransport,theGreenparkingindexwascreated.Theindexreducesthenumberofparkingspacesrequiredperapartment,whilerewardsdeveloperswhoofferalternativeformsoftransporttotheirresidents(bicycleparking,carsharing,etc.)byreducingtherequiredparkingprovisionby10to25percent.Lessparkingreducesthepriceforthebuildingandlowersproductioncostsforcontractors.*Note:Thisismorealegislation.
Customersegments
• Stockholmshemstenants• Otherhouseholdsinthearea• EV-driversgettingthepossibilitytocharge
Valuepropositions
Thevaluepropositionsare:
KeyPartners KeyActivities ValuePropositions CustomerRelationships CustomerSegments
KeyResources Channels
CostStructure RevenueStreams
FixedCosts:Buyingtheservices(EVcarsharingpool&Electrikcargobikepool)InstallingtheinfrastructureLocation(lostrevenue)
NotapplicableforStockholmshem,therevenuesgoestotheprovidersofthepoolservices.
1.Stockholmshem2.Fortum3.MoveAbout4.PotentialsupplierofE-cargobikes5.Residents
Changingtolesscardependecyandelecticvehicles
FortheCityandtheresidents:Lesspollution,lessnoice,more"space"inthestreet.ForFortum&MoveAbout:Newcustomersandvisability.ForStockholmshem:visabilityandaddedvalueforthetenants
DirectcommunicationMarketing&Publicity
Stockholmshemstenants
Otherhouseholdsinthearea
EV-driversgettingthepossibilitytocharge
ParkingspaceChargingequipmentandelectricityEVcarsharingpoolElectrikcargobikepool
NewslettersWebb
Socialmedia
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a. For theCityand the residents:Lesspollution, lessnoice,more"space" in thestreet.
b. ForFortum&MoveAbout:Newcustomersandvisability.c. ForStockholmshem:visabilityandaddedvalueforthetenants
Channels
NewslettersWebbSocialmedia
Customerrelationship
DirectcommunicationMarketing&Publicity
Revenuestreams
Therevenuesgototheprovidersofthepoolservices.Keyresources
ParkingspaceChargingequipmentandelectricityEVcarsharingpoolElectriccargobikepoolKeyactivities
ChangingtolesscardependecyandelecticvehiclesKeypartnerships
1.Stockholmshem2.Fortum3.MoveAbout4.PotentialsupplierofE-cargobikes5.Residents
Coststructure
FixedCosts:Buyingtheservices(EVcarsharingpool&Electrikcargobikepool)InstallingtheinfrastructureLocation(lostrevenue)
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Stockholm.Electric&cargobikePool
Measurerelated12.2.Industrypartners:StockholmshemThirdpartner:MoveAbout.Shortdescription:Creation of aMobility Hubwith e-bikes and E-cargo Bikes, offered by the companyMoveAbout.
Keyactivities
Theactivityistocreateae-bike&e-cargobikepool.Themeasureiscenteredtobeusedbycitizensandcarriercompanies.Keyresources
Thekeyresourcesare:(3) Physicalassets:e-bikesande-cargobikes.(4) Humanresources:operationsstaffofthepoolstationandmaintenanceofthe
vehicles.
KeyPartners KeyActivities ValuePropositionsCustomer
RelationshipsCustomerSegments
(1) carriers/Transportationcompanies
(3) Citizens(3)Citycouncil/Local
governments
createae-bike&e-cargobikepool.
(1)Traditionalcarriers:increasetheuseofe-bikesore-tricyclesforthelast-miledelivery.
(2)Citizens:increasetheuseofe-bikes
(3)Community:reducedenvironmentalandnoise
impact(4)CityCouncil:to
monitorthenoiseandpollutionlevelsinthat
area
(1)Customersupport(2)Personalassistance
(1)Citizens(2)Carriers/Transportation
(3)CityCouncils/Municipalities
KeyResources Channels(1)Physicalassets
(chargingstations,andbatteries).
(2)Humanresources(operationsstaffofthechargingstationsand
replacementofbatteries)
(1)Withcitizens:WebsiteandMobile
phoneapps(2)Withcarriers:
Salesforceandwebsales
CostStructure RevenueStreams
(1)Fixedcosts(Runningcosts,Salaries,e-bikesande-cargobikes)
(2)Variablecosts(Costsofmanagingthepoolstationandmaintenanceofthee-bikesande-cargobikes)
(1)Feechargedtocarriers(2)Feechargedtocitizens
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Keypartnerships
Normallythekeypartnerswillbecarriers/transportationcompaniesinterestedtouseEV for the lastmile distribution. But citizens using e-bikes or e-tricycles can also bepartners,asCityCouncils,thatmightwishtopromotetheuseofthesekindsofvehicles.CustomerSegments
Thecustomersegmentscanbelistedasfollows:Citizens:Wholiveinurbancentersandusee-bikesorsimilarEV.Carriers/Transportation: Transportation companies for which is difficult to deliverefficientlyinthelast-mileofcitycenters,andthereforeusee-bikesorsimilarEV.Citi Councils and Municipalities (citizens included): Municipalities that will like toimprovetheuseofe-bikesorsimilarEV.ValuePropositions
Thevaluepropositionfortheusersisanimprovementoftheenergyconsumptionandoftimeconsumption,forcarriercompanies.Fromthepointofviewofthecity,thebenefitobtainedliesinreducing,apriori,thelevelofpollutiongeneratedbytheuseofe-bikesorsimilarEV,morepreciselyinsubstitutingpollutingvehiclesforothermoreenvironmentallysustainable.Channels
Withcitizens:WebsiteandMobilephoneappsWithcarriers:SalesforceandwebsalesCustomerRelationships
Therelationwiththefinaluserwillbebygibingacustomersupportandpersonalassistanceifneeded.RevenueStreams
(3) Feechargedtocarriers(4) Feechargedtocitizens
Coststructure
(1)Fixedcosts(Runningcosts,Salaries,e-bikesande-cargobikes)(2)Variablecosts(Costsofmanagingthepoolstationandmaintenanceofthee-bikesande-cargobikes
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4. AboutGrowSmarterGrowSmarter(www.grow-smarter.eu)bringstogethercitiesandindustrytointegrate,demonstrate and stimulate the uptake of ‘12 smart city solutions’ in energy,infrastructureandtransport,toprovideotherEuropeancitieswithinsightsandcreateareadymarkettosupportthetransitiontoasmart,sustainableEurope.
5. GrowSmarterprojectpartners
ThisprojecthasreceivedfundingfromtheEuropeanUnion'sHorizon2020researchand innovation programme under grant agreement no 646456. The soleresponsibilityforthecontentofthisdocumentlieswiththeauthorandinnowayreflectstheviewsoftheEuropeanUnion.
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Annex1.BusinessModelsandScalabilityStrategyhasbeen theprimarybuildingblockof competitivenessover thepast threedecades,butinthefuture,thequestforsustainableadvantagemaywellbeginwiththebusinessmodel.Thepressuretocrackopenmarketsindevelopingcountries,particularlythoseatthemiddleandbottomofthepyramid,isdrivingasurgeinbusiness-modelinnovation.Theeconomic slowdown in the developed world is forcing companies to modify theirbusinessmodelsorcreatenewones.Inaddition,theriseofnewtechnology-basedandlow-cost rivals is threatening incumbents, reshaping industries, and redistributingprofits.Indeed,thewaysbywhichcompaniescreateandcapturevaluethroughtheirbusinessmodelsisundergoingaradicaltransformationworldwide.
Whatisabusinessmodel?
Everyone agrees that executives must know how business models work if theirorganizationsaretothrive,yettherecontinuestobelittleagreementonanoperatingdefinition.ManagementwriterJoanMagrettadefinedabusinessmodelas“thestorythatexplainshowanenterpriseworks,”harkingbacktoPeterDrucker,whodescribeditastheanswertothequestions:Whoisyourcustomer,whatdoesthecustomervalue,andhowdoyoudelivervalueatanappropriatecost?Otherexpertsdefineabusinessmodelbyspecifyingthemaincharacteristicsofagoodone.Forexample,HarvardBusinessSchool’sClayChristensensuggeststhatabusinessmodelshouldconsistoffourelements:acustomervalueproposition,aprofitformula,key resources, and key processes. Such descriptions undoubtedly help executivesevaluatebusinessmodels,buttheyimposepreconceptionsaboutwhattheyshouldlooklikeandmayconstrainthedevelopmentofradicallydifferentones.Ourstudiessuggestthatonecomponentofabusinessmodelmustbethechoicesthatexecutives make about how the organization should operate—choices such ascompensationpractices,procurementcontracts,locationoffacilities,extentofverticalintegration,salesandmarketinginitiatives,andsoon.Managerialchoices,ofcourse,haveconsequences.Forinstance,pricing(achoice)affectssalesvolume,which,inturn,shapes the company’s scale economies and bargaining power (both consequences).Theseconsequencesinfluencethecompany’slogicofvaluecreationandvaluecapture,so they too must have a place in the definition. In its simplest conceptualization,therefore, a business model consists of a set of managerial choices and theconsequencesofthosechoices.Companiesmakethreetypesofchoiceswhencreatingbusinessmodels.Policychoicesdetermine the actions a organization takes across all its operations (such as using
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nonunionworkers,locatingplantsinruralareas,orencouragingemployeestoflycoachclass). Asset choices pertain to the tangible resources a company deploys(manufacturing facilities or satellite communication systems, for instance). Andgovernancechoicesrefertohowacompanyarrangesdecision-makingrightsovertheothertwo(shouldweownorleasemachinery?).Seeminglyinnocuousdifferencesinthegovernanceofpoliciesandassetsinfluencetheireffectivenessagreatdeal.
DataandInformationforBusinessModelEvaluation
The starting point is to define some concepts that will allow us to describewhat abusinessmodelactuallyis.Todoso,wewillusetheninebasicbuildingblocksdescribedinthebusinessmodelcanvas(Osterwalder&Pigneur,2010).Morespecifically:• Customersegments• Valuepropositions• Channels• Customerrelationship• Revenuestreams• Keyresources• Keyactivities• Keypartnerships• CoststructureThedefinitionofeachbuildingblockforthepresentationofbusinessmodelsare:CustomersegmentsThe customer segments define the different groups of people or organizations anenterpriseaimstoreachandserve.ValuepropositionsThisblockdescribesthebundleofproductsandservicesthatcreatevalueforaspecificcustomer segment. Value propositions are delivered to customers throughcommunication,distributionandsaleschannels.ChannelsThis block describes how a company communicates with and reaches its customersegmentstodelivervaluepropositions.Customerrelationship
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Customerrelationshipsareestablishedandmaintainedwitheachcustomersegment.This block describes the types of relationships a company establishes with specificcustomersegments.RevenuestreamsRevenuestreamsresultfromvaluepropositionssuccessfullyofferedtocustomers.Thisblockrepresentsthecashacompanygeneratesfromeachcustomersegment–costsmustbesubtractedfromrevenuestocreateearnings.KeyresourcesKeyresourcesaretheassetsrequiredtomakeabusinessmodelwork.KeyactivitiesTheseworkbyperforming a numberof key activities. This blockdescribes themostimportantthingsacompanymustdotomakeitsbusinessmodelwork.KeypartnershipsSomeactivitiesareoutsourcedandsomeresourcesareacquiredoutsidetheenterprise.Thisblockdescribesthenetworkofsuppliersandpartnersthatmakethebusinessmodelwork.CoststructureThebusinessmodelelementsresultinthecoststructure.
EvaluationandAssessmentofBusinessModels
How can you tell if a businessmodelwill be effective? A good onewillmeet threecriteria.1. Isitalignedwithcompanygoals?Thechoicesmadewhiledesigningabusinessmodelshoulddeliverconsequencesthatenableanorganizationtoachieveitsgoals.Thismayseemobviousuntilyouconsideracounterexample.Inthe1970s,XeroxsetupXeroxPARC,whichspawnedtechnologicalinnovationssuchaslaserprinting,Ethernet,thegraphicaluserinterface,andverylargescaleintegrationforsemiconductors.However,XeroxPARCwasnotoriouslyunabletospawnnewbusinessesorcapturevalue from its innovations for theparentdue toadistressinglackofalignmentwithXerox’sgoals.
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2. Isitself-reinforcing?Thechoicesthatexecutivesmakewhilecreatingabusinessmodelshouldcomplementoneanother;theremustbeinternalconsistency.If,ceterisparibus,alow-costairlineweretodecidetoprovidealevelofcomfortcomparabletothatofferedbyafull-farecarriersuchasBritishAirways,thechangewouldrequirereducingthenumberofseatsoneachplaneandofferingfoodandcoffee.Thesechoiceswouldunderminetheairline’slow-cost structure and wreck its profits. When there’s a lack of reinforcement, it’spossible to refine thebusinessmodelbyabandoning somechoices andmakingnewones.3. Isitrobust?Agoodbusinessmodelshouldbeabletosustainitseffectivenessovertimebyfendingoff fourthreats, identifiedbyPankajGhemawat.Theyare imitation(cancompetitorsreplicate your businessmodel?); holdup (can customers, suppliers, or other playerscapturethevalueyoucreatebyflexingtheirbargainingpower?);slack(organizationalcomplacency); and substitution (can new products decrease the value customersperceive inyourproductsorservices?).Althoughtheperiodofeffectivenessmaybeshorternowadaysthanitoncewas,robustnessisstillacriticalparameter.Inordertoassessthebusinessmodelsforeachsolutionormeasure,wewillcombinethedataand informationcollectedthroughthebusinessmodelcanvaswithaclassicstrengths,weaknesses,opportunitiesandthreats(SWOT)analysis.TheSWOTanalysisiscommonlyusedinbusinessenvironmentsanditisusedtoanalyzeanorganization’s strengths andweaknesses and identifypotential opportunities andthreats. It is an attractive tool because of its simplicity but in combinationwith thebusiness model canvas enables a focused assessment and evaluation of anorganization’sbusinessmodel.SWOTanalysisasksfourbig,simplequestions:
• Whatareyourorganization’sstrengthandweaknesses?Thefirsttwoassesstheorganizationinternally.
• Whatopportunitiesdoesyourorganizationhaveandwhatpotentialthreatsdoes
itface?Thesecondtwoassestheorganizationpositionwithinitsenvironment.Toprovideagoodbasisfordiscussion,decision-makingandultimatelyinnovation,wewillaskthesefourquestionswithrespecttoboththeoverallbusinessmodelandeachofitsnineconceptsdescribedbefore.
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The data collection will be conducted through questionnaires and interviews withpartners. These questionnaires and interviewswill allow us to conduct a structuredSWOTassessmentofthebusinessmodelyieldingtotworesults:
• Asnapshotofwheretheyarenow(strengthsandweaknesses)• Suggestionsforfuturetrajectories(opportunitiesandthreats)
Thisvaluableinputwillhelpustodesignnewbusinessmodeloptionsandsuggestionsforreplicabilityandscalabilityofthemeasuresandsolutionsimplemented.
Public-PrivatePartnerships
Animportantpartoftheanalysiswillbebasedonprovidingtoolstoassessthefinancialsustainability of the different solutions implemented. In this regard the systematicidentificationandevaluationofdifferentoptionstoimplementthemeasuresmustbecarriedoutwith rigor. Inanenvironmentof supplyofpartlypublicgoodsandpartlyindividualgoods,whichcanbe financedwithpublicorprivatecontributions,directly(usage fees or contributions to investments) or indirectly (shadow tolls, savings,advertising, ...) and generate significant positive economic, social or environmentalexternalitiesisessentialtoconsiderallpossibilities,bothatthetimeofdiagnosisandexecutionofdifferentfinancialscenarios.Inthissense,theso-calledPublic-Privatecontinuum,andthatinamoresophisticatedmannercanbeshowninatwo-dimensionalmatrixofthepossibilitiesofPublic-Privatepartnershipbothintheownershipoftheassetandservicemanagement,isarigorouswaytopresentthispanoplyofpossibilitiesforPPPstodeveloptheactions2.
2 See for example: Delmon, J. (2010), Understanding Options for Public PrivatePartnershipsinInfrastructure,PolicyresearchWorkingPaper5173,TheWorldBank.
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Whenchoosingwhatarethebestalternativeswithinthistwo-dimensionalpublic-choicescenario, there are different tools developed from academia and from the owngovernment (Public SectorComparator, etc.) toperform theseassessments.What isneededistodeterminewhichofthesetoolsarethebestforthedifferentsituationsandevaluatethiscomplexcontextofdifferentalternatives.Furthermore,thedifferentformsofPPPcangenerateadditionalpoliticalproblemsofacceptanceofprivateparticipationinthesolutionsbecauseitcouldbeinterpretedbothasaprivatizationofprofitsorasocializationoflosses.Inthiscase,inalignmentwiththeobjectives of the project, we propose to introduce the concept of P4 where theorganizedparticipationofdifferentstakeholdersintheprocessesofP3(Public-Privatepartnerships) can be a strategic element to help ensure the general success of theactions.Themethodologytoaddthefourth“P”tothestrategyshouldbediscussedandagreed with the different municipalities involved regarding its participation culture(opengovernment,participativeprocesseswithcitizens,etc…).To make or propose the right combination of Public-Private partnerships for eachsolutionweshouldmakeanassessmentofthefollowingdimensions:(+)indicatesmostfavorabletotransfertoprivatesectorand(-)indicateslessfavorable:
• Transferringassets:1. Thespecificityofinvestments(+)2.Thecontrolofthequalityoftheprovision(+)
• Outsourcingprovision:1. Thespecificityofinvestments(-)
VarietyofPPParrangementsPrivate Management
contract,Franchsing,O&M
Affermage,Operatinglease
ConcessionOutsourcing Divestiture
Mixed ServiceContracts
Brownfieldprojects
Build-Operate-TransferBuild-Own-OperateDesign-
Build-Finance-OperateDesign-Build-Manage-Finance
etc..Greenfieldprojects
ConversionintoPublicEnterprisePerformancecontract
JointVenture
Public
PublicAuthority Cooperation
Public Mixed PrivateCONTROLOFASSETS
MAN
AGEM
ENTOFSERV
ICEPR
OVIDE
R
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2. Thecontrolofthequalityoftheprovision(+)3.Uncertaintiesinincome,costsandservicequality(-)Completenessofthecontract(+)4.Extra-contractualresponsivenessandlowexecutionrisk(+)5.Internalcapacitytomanageoutsourcing(+)6.Existenceofeffectivecompetitionbeforetheawardandduringthe
execution(+)Eachofthesevariablesshouldbeevaluatedinordertogetarelativevaluethatrankthesolutionintermsofamajoropportunitytobesuppliedbypublic,privateorPPP(thereisnotanabsolutevalue,sowecanobserveintherealworldseveralsolutionstothesameproblem).Secondly,PPPintimesofbudgetconstraintallowspublicsectortomakeinvestmentsthatitcouldnotaffordwithoutprivatesupport.Butthisalsocouldgenerateotherkindof problems aswhite elephants or pork barrels. So it’s necessary to develop a cleardecisionmethodtoavoidtheserisksandalsotransferefficientlytherisksandbenefitsbetweenpublicandprivatepartners.IfPPParemadefortherightreasonstheycouldbeagoodalternativetopublicfinanceandobtainpositivesocialandeconomicresults.