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Competitiveness of Tier-1 Indian Cities
Submitted in partial fulfilment of the requirement for the award of the
Degree of
Master of Business Administration
By
Pavel Rudra
(Entry Number: 2013SMT6711)
Under the guidance of
Prof. M P Gupta
Department of Management Studies
Indian Institute of Technology, Delhi
New Delhi, May 2015
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CERTIFICATE
This is to certify that the major project titled Competitiveness of tier-1 Indian Cities is
a bona fide record of the work carriedout byMr.Pavel Rudraunder my guidance and
supervision towards partial fulfilment of the requirement for Major Project for awarding
the degree of Master of Business Administration, at Department of ManagementStudies,
Indian Institute of Technology Delhi.
This work has been duly completed and has not been submitted anywhere else for the award
of any degree or diploma.
Material, wherever has been borrowed has been duly acknowledged.
Date: Prof. M P Gupta
Place: New Delhi Department of Management Studies
Indian Institute of Technology, Delhi
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ACKNOWLEDGEMENT
The successful completion of graduation research project facilitates the beginning of a never
ending learning experience. The project Competitiveness of Tier-1 Indian Cities aims to
find the competitiveness among the Tier-I cities in India.
So, with reverence, veneration and honour, I acknowledge all those whose guidance and
encouragement has helped in successful completion of the project.
I wish to thank my guide Prof. M P Guptafor giving me an opportunity to work on such a
topic of great relevance to the industry and to the work I shall be pursuing after completing
my Masters degree in business administration. I am grateful to him for all the advice,
encouragement and support he has given me during the work.
I also pay sincere gratitude to DMS, IIT Delhi faculties and staff members for their constant
help and cooperation throughout the academic explorations.
Date: Pavel Rudra
2013SMT6711
Place: New Delhi Department of Management Studies
Indian Institute of Technology, Delhi
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Abstract
The city fulfilling its critical infrastructure and key resources and providing optimized
services to its citizens can be considered as a smart city. Govt. of India has nominated 100
cities to make them smart cities. These cities will have modern facilities for various aspectssuch as governance, health, administration, transportation, education, environment etc. To
find out the competitiveness of tier-1 Indian cities, we have implemented APP Framework
(Assets-Processes-Performances) proposed by Prof. Momaya. We have identified various
parameters required to evaluate the city competitiveness. Based on our selected parameters
we have collected secondary data for the year of 2011, 2012, and 2013.As a result we will be
explaining the 6 tier-1 Indian cities competitiveness analysis with respect to smart city
development.
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Table of Contents
Abstract3
List of Figures..6
List of Tables7
Abbreviations8
Chapter 1. Introduction.......................................................................................................9
1.1City Competitiveness..9
1.1.1Objective.11
1.1.2 Scope..11
1.2Motivation..11
1.2.1GOI agenda on smart cities .....12
1.2.2 Criteria for identifying the smart cities . ..................12
1.2.3 Specific Targets...14
1.3 Build of the Report .....................................................................................................14
Chapter 2. Literature Study.......................................................................15
2.1 Literature Study on City Competitiveness.15
2.1.1 Compilation of key global cities.16
2.2 Indian running smart cities projects...17
2.3 Comparison between Dholera, GIFT City and Naya Raipur.19
Chapter 3. Smart Village..20
3.1Smart Village...20
3.2 Case Study: Pochampally Village................................................21
3.3Case Study: Smart Village Application in Australia...22
3.4 Case Study: Smart Village Application in Ireland .22
Chapter 4. Methodology .................................................................................... ......23
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4.1 APP Framework for Competitiveness.23
4.2 Problem........24
4.3 Selected indicators....24
Chapter 5. Results and Discussions26
5.1 Results...26
5.2 Discussions ............................29
5.3 Recommendations.29
5.4 Implications for Research...............................................................................................29
5.5 Implications for Practice ........................................................................................29
5.6 Conclusions ........................................................................................29
References ..................................................................................................... .31
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List of Figures
Figure 2.1Dholera SIR .................................................................................................. 17
Figure 2.2GIFT City...................................................................................................... 18
Figure 2.3Naya Raipur .................................................................................................. 18
Figure 3.1 Smart Village Ecosystem .............................................................................. 20Figure 3.2 Governance Model ....................................................................................... 21
Figure 3.3 Smart Village Pochampally Ecosystem......................................................... 22
Figure 5.1 City Competitiveness graph .......................................................................... 28
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List of Tables
Table 1.1Dimensions of a smart city.............................................................................. 9Table 1.2 Nominated smart cities in India ..13
Table 2.1 Literature study on City Competitiveness...15Table 2.2 Smart tech and applications in city ecosystem ...15
Table 2.3 Leading cities in 2013.16Table 2.4 Comparison of the 3 projects..19
Table 5.1 Normal Score of the tier-1 Indian cities..26Table 5.2 Average and standard deviation .27
Table 5.3 Standardized Score .27
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Abbreviations
GIFT Gujarat International Finance Tec-City
IoT Internet of Things
DMIC Delhi Mumbai Industrial Corridor
SIR Special Investment Region
BRTS Bus Rapid Transit System
APP Assets Processes Performances
FDI-Foreign Direct Investment
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Chapter 1. Introduction
1.1 City Competitiveness
Competitiveness refers to a citys ability to create employment opportunities, attract
investments, experts, professionals and people. The ease of being able to do business and the
quality of life it offers determines its competitiveness. The set of factors policies,
institutions, strategies and processes determines the level of sustainable productivity of a city.
Smart City: Definitions
Various authors have given different views and definitions for smart cities. Some of them are
given below:
A Smart City is a well performing city built on the smart combination of
endowments and activities of self-decisive, independent and aware citizens.
Giffinger, et.al (2007: 11). It can also be defined as a a city that monitors and integrates conditions of all of its
critical infrastructures, including roads, bridges, tunnels, rails, subways, airports,
seaports, communications, water, power, even major buildings, can better optimize its
resources, plan its preventive maintenance activities, and monitor security aspects
while maximizing services to its citizens. Hall, R. E. (2000).
A city equipped with basic infrastructure to give a decent quality of life, a clean and
sustainable environment through application of smart solutions.
Smart City Dimensions
Basicallya smart city has 6 dimensions as given in table 1.1.
Table 1.1 Dimensions of a smart city
Smart Economy Smart People Smart Governance
(Social and Human Capital) (Participation)
Entrepreneurship Level of qualification Participation in decisionmaking
Productivity Affinity to lifelong learning Transparent governance
Economic image and trademarks Flexibility Public and socialservices
International embeddedness Creativity Political StrategiesAbility to transform Cosmopolitanism/Open-
mindedness
Perspectives
Flexibility of labour market Social and ethnic plurality
Participation in public life
Smart Mobility Smart Environment Smart Living
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(Transport and ICT) (Natural Resources) (Quality of Life)
Local accessibility Attractivity of naturalcondition
Cultural Facilities
International accessibility Pollution Health ConditionsAvailability of ICT infrastructure Environmental Protection Individual Safety
Sustainable, innovative and safe
transport systems
Sustainable Resource
Management
Housing Quality
Educational Facilities
Touristic attractivity
Social cohesion
Before the term smart city, the concept of cyber cities, digital cities and intelligent cities
were there. Smart city is evolutionary to those terms as given in the box (A New Spatiality of
Cities).
(Source: Hans and Nicos, 2011, Smart Cities and the Future Internet)
How a smart city works?
Basic infrastructure
Assured water and electricity supply, sanitation and solid waste management, efficient urban
mobility and public transport, robust IT connectivity, e-governance and citizen participation
etc.
Smart Solutions
Public information, grievance redressal, electronic service delivery, citizens participation,
waste to energy & fuel conversion, waste to compost transformation, 100% waste water
treatment, smart meters & management, monitoring of water quality, renewable source of
energy etc.
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Smart Cities Council India has been formed
It is part of the US-based Smart Cities Council, which is a consortium of smart city
practitioners and experts, with a 100-plus member and advisor organizations operating in
over 140 countries.
Area-based development
o
Retrofitting 500 acres: Planning in an existing built-up area in a municipal ward,
preparing plan with citizen participation (example: Connaught Place in Delhi).
o
Greenfield 250 acres: Introduce smart solutions in a vacant area using innovative
planning (example: land pooling/land reconstitution in Outer Delhi, GIFT city in
Gujarat).
o
Redevelopement 50 acres:Replacement of existing built-up area and preparing a
new layout plan with enhanced infrastructure by way of mixed land use (example:
Kidwai Nagar in Delhi).
1.1.1 Objective
The objective of this report is to find out the competitiveness of Indian tier-1 cities based on
selected city parameters with reference of smart city dimensions.
1.1.2 Scope
Based on our findings, we will be analyzing the current situation of Indian cities and will
impart. Accordingly we have constructed graphs denoting the competitiveness of tier-1 cities.Barring Bangalore we had obtained results which more or less tally with analysis carried out
along similar lines in other studies. In the future, we would look forward to find out how the
parameters collected can be more foolproof in the sense that we can obtain values that would
give us more reliable results. Once that is done, we intend to carry out the competitiveness of
Tier-2 and Tier-3 cities as well. As required, we will be making some modifications
regarding the parameters considered.
1.2 Motivation
Challenges faced by cities and the need for smarter approaches are given below:
The urban infrastructure has grown piecemeal and rising urban population is puttingpressure on housing and transport.
Cities have a key role in improving energy efficiency and reducing carbon emissions,while promoting energy resilience in terms of security of supply and price.
The scale of the challenges is forcing cities to rethink their strategies and to innovatein order to maintain service levels.
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Now due to the above challenges the idea of smart cities is being given a big thrust. In order
to find out how suitable a city is for transforming into a smart city, we need to find the
competitiveness of the cities. It is to be noted that for our present scope we have considered
only the Tier -1 Indian cities (Delhi, Kolkata, Mumbai, Chennai, Bangalore and Hyderabad).
Subsequently we plan to cover the tier 2 and tier 3 cities in our study as mentioned before.
1.2.1 GOI agenda on smart cities
The agenda of the Modi government is linked to the economic vision of creatingcentres of investment for private capital.
In the Election Manifesto of the BJP, the section of urban policy was titled UrbanAreas High Growth Centres with an explanatory note which states that citiesshould no longer remain a reflection of poverty and bottlenecks. Rather they should
become symbols of efficiency, speed and scale.
These aims are to be achieved by the formation of Smart Cities.
The manifesto hence promised that 100 new cities; enabled with the latest intechnology and infrastructure would be built.
In the Union Budget of 2014-15, Finance Minister Arun Jaitely announced that Rs. 70billion will be provided to develop 100 Smart Cities.
In order to allow foreign investors to have a larger say in this field, the entryrequirements for FDI in terms of minimum built up area and capital conditions werealso reduced.
To begin with, 20 cities would be selected after the state governments come forwardwith the names of the cities that they want to nominate. The city challengecompetition would be conducted by Bloomberg Philanthropies.
For each of these 20 cities, Rs 100 crores would be provided per year for five years.
In the next two years 40 cities would be selected.
A Special Purpose Vehicle will be created for each city to implement Smart Cityaction plan.
1.2.2 Criteria for identifying the smart cities
The criteria are listed below:
i. 9cities with a population of at least 4 million people.ii. 44cities in the population range of 1-4 million people
iii. 17 cities (state/ UT capitals) even if they have a population of less than a million.iv. 10cities of tourist and religious importancev. 20cities in the population range of 0.5-1 million.
For criteria (i) we can say that all the metro cities like Delhi, Mumbai etc. have been
considered.
For criteria (ii) we can say that cities like Indore have been considered where urban
development projects are going on with regards to various smart city aspects such as
streamlining of traffic, smart parking etc.
For category (iii) we can see that capital cities like Bhopal have been considered.
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For category (iv) places of tourism and religious importance have been considered such as
Gaya which is a sacred place for the Buddhists.
For category (v), all the other cities have been considered like Chittoor.
Also what is worth mentioning is the fact that in all the cities, the minimum criteria has been
satisfied .It has been ensured that they have the bare minimum in terms of having the rightinfrastructure at the place.
The basic criteria for selection of a city/municipal area
Implementation of e-governance & online grievance redressal mechanism.
Publication of e-newsletter.
Putting all government expenditure before public.
At least 5% increase in coverage of lavatories since 2011 as a part of Swachh BharatAbhiyan.
Track record of paying to employees.
Track record of urban reforms and citizen participation being introduced.
Nominated smart cities in India
Ministry of Urban Development, Govt. of India has nominated 100 cities to make them smart
cities as given in table 1.2.
Table 1.2 Nominated Smart Cities in India
Tier-1 Tier -2 Tier-3
Delhi Allahabad Nashik Gulbarga BiharSharif
Kolkata Ahmedabad Patna Burhanpur Bhagalpur
Mumbai Amritsar Pune Gwalior Panipat
Chennai Aurangabad Ranchi Gandhinagar Tinsukia
Hyderabad Bhiwandi Salem Junagarh AmbalaBangalore Bhopal Rajkot Bhavnagar Tangla
Bhubaneshwar Surat Jangipur ObalguriBikaner Thiruvananthpuram Durgapur Goalpara
Patiala Tiruchirapalli Habra Rourkela
Coimbatore Haldia SambalpurCuttack Bidar Balasore
Dehradun Bijapur Shimla
Dhanbad Badami HaridwarFaridabad Kollam Roorkee
Guntur Kottayam Gangtok
Madurai Pattadakal Pelling
Nagpur Ernakulam YuksamLudhiana Thrisur Bishnupur
Lucknow Mahakuta ChandelKota Tiruvalla
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Kochi Udaipur
Kanpur MuzafarpurJodhpur Ajmer
Jamshdepur Bharatpur
Jalandhar Faizabad
Jabalpur Jhansi
Jaipur ChittoorIndore Nalgonda
Guwahati KarimnagarGwalior Karnool
Tirunelveli Gaya
1.2.3 Specific Targets
Specific targets are listed below:
India is drawing on the development of smart cities at the global level.
Narendra Modis vision Digital India has a plan to build 100 smart cities across thenation.
Cities in the future will be built based on availability of optical fiber networks andnext-generation infrastructure.
Digital India envisages making India a leader in digitally delivering services in thesectors of health, education and banking.
Modi announced an investment of $1.2 billion in smart cities with more fundingcoming from private sectors and abroad.
The programme is expected to build new centres as well as improve on the existingones.
The smart cities mission would promote adoption of smart solutions for efficient use
of available resources, providing a clean and safe environment etc. There will be substantial focus on adequate and clean water supply, sanitation etc.
Citizens participation would be enhanced in prioritizing and planning urbaninterventions.
1.3 Build of the report
The report starts with the introduction of the project where the scope and the case scenarios
which are considered are mentioned.
In the second chapter review of the literature is presented along with the problem which we
have considered as our project work.
In the third chapter we have covered the concept of smart village.
The rest of the report is about the analysis (chapter 4) and inferences (chapter 5).
Three case scenarios have been considered which have some similarities with smart cities.
References are given at the end.
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Chapter 2 Literature study
2.1 Literature Studies on City Competitiveness
From the previous studies on city competitiveness we have found that most of the authors
have used Porters diamond model to evaluate the city competitiveness. The summary is
given in table 2.1
Table 2.1Literature Studies on City Competitiveness
Paper 2013, IndianCityCompetitiveReport
2014, Measuring& analysis ofurbanCompetitiveness
2006, leadingcities of theworld andcompetitiveadvantages
Measuring ofcompetitiveness ofAustralian cities2012
2012, specifics ofmeasuring theurbancompetiveness
2012,benchmarking ofworld cities
Method
used
PortersDiamondModel,WeightModel, PCA
Porters DiamondModel
PortersDiamondModel,questionnaire
--------- Porters citymodel,Lithuanian urbancompetitiveindex, mixedmethod
GPCI-Japan selforganizing maps
Target of
study
50 cities ofIndia
31 provincialChinese capitals
31 Europeancities, 12 NorthAmericancities, 16 Asiancities, 9 LatinAmericancities, 5African cities,5 Middle Eastcities
18 Australian cities Lithuania n cities,Kansas city as acase study
Worlds major cities
Indicators
for data
analysis
12 75 34 3 factors, 19indicators
3 components, 7groups, 22factors, 30
indicators
6 functions, 21 groups,69 indicators
Uniqueness
of the study
Individualcity graphscovering allthe 12indicators
Major functionoriented zones,GIS basedanalysis
City profilesbased onclusters
Separate graphs foreach indicator,recommendationson urban policy andgovernance
Explanations ofeconometric, non-econometric(qualitative) andmixed method ofcompetitiveness
Hierarchical position ofcities, patterns anddynamics of world cities
One of the previous studies indicates the use of smart technology and describes the
applications in city ecosystem with respect to smart cities as given in table 2.2.
Table 2.2 Smart tech & applications in city ecosystem
Smart Tech Applications
SCOPE: Smart-city Cloud-based OpenPlatform and Ecosystem
Transportation and mobility services, Energyand environmental services etc.
Internet of Things Running of day-day city operations, citydevelopment strategies etc.
Geodesign Land based planning, urban planning
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improvement, etc.
FIREBALL Community building, smart cities connectednetwork etc.
Streetline Analytics, Smart City sensing etc.
Source: wikipedia
2.1.1 Compilation of key global cities
Global cities index for existing smart cities is given in table 2.3
Table 2.3 Leading Cities in 2013
AT Kearney
Cities Global Cities Index
New York 1
London 2
Paris 3
Tokyo 4
Hong Kong 5
Seoul 8
Toronto 16
San Francisco 17
Amsterdam 26Source: AT Kearney , Global Cities Index 2013
New York. New York scored higher than most other cities in all the major the rankings. New
York partnered with IBM in 2009 to launch the IBM Business Analytics Solution Center to
address the growing demand for the complex capabilities needed to build smarter cities.
London. London is well-recognized for some of its sustainability innovations and its robust
transit system. London has a partnership with O2 to which provides the largest free Wi-Fi
network in Europe.
Paris: Paris scores well in several categories like innovation, green city, and digital
governance. Paris was already rated highly for its successful bike sharing program, Velib.
Tokyo: Tokyo scores well in the innovation and digital city categories. Tokyo is also focusedon promoting smart mobility solutions.
Hong Kong: Hong Kong does well in key areas such as digital governance ranking. Hong
Kong is experimenting with RFID technology in its airport, as well as across the agriculture
supply chain.
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Seoul: Seoul had done significant work in the financial sector. For example, 4 major banks
have signed up to an energy saving app. Also it has done innovative work in the field of
tourism. For example, iTour Seoul provides integrated tour services with public
transportation.
Toronto: IBM recently launched a Business Analytics Solutions Center in Toronto. Toronto
is also an active member of the Clinton 40 (C40) megacities, which seek to transform into
low-carbon economy.
San Francisco: has done great work particularly in the area of citizen participation. For
example, it is quite active in fostering the usage of Open Data. Also with respect to traffic
some interesting aspects are there. For example Wireless sensors charge parking spaces with
respect to demand and help drivers find convenient place.
Amsterdam: Amsterdam has done great work particularly in the areas of education. Forexample crowd judging system rates Amsterdam schools on parents and student input. In the
areas of finance and economics we can say that Amsterdam is highly competitive as its low
corporate taxes and income taxes on foreign workers attract individuals and companies.
2.2 Indian running smart cities projects
Dholera SIR
Dholerais a town in Gujarat, India. It is an ancient port-city in Gulf of Khambhat, 30 km.
from Dhandhuka village of Ahmedabad district. One of the original six temples built
by Swaminarayan is located here. Dholera would be developed into a mega city by 2025,which would be 6 times the size of Shanghai. Dholera SIR is a major project under
the DMIC Project with an aim to make it a global manufacturing hub supported by world
class infrastructure.
Project goals in next five years are:
To double the employment potential
Triple industrial output
Figure 2.1 Dholera SIR
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GIFT City
Gujarat International Finance Tec-Cityor GIFTis an under-construction central business
district in Gujarat. It will be built on 886 acres (3.59 km2) of land. Its main purpose is to
provide high quality physical infrastructure (electricity, water, gas, district cooling, roads,
telecoms and broadband), so that finance and tech firms can relocate their operations therefrom Mumbai, Bangalore, Gurgaon etc. where infrastructure is either inadequate or very
expensive.
Figure 2.3 GIFT City
Naya Raipur
Naya Raipuror New Raipuris the new capital of Chhattisgarh.
Naya Raipur is located between National Highways NH-6 and NH-43, it is 17 km away in the
south-east direction from Raipur; Swami Vivekananda Airport separates the old and new
cities. Naya Raipur is serving as the administrative capital of the State and also catering to the
infrastructural needs of industry and trade in the region. Naya Raipur is surrounded
by Raipur,Arang, Mahasamund, Rajim and Abhanpur.
Figure 2.4Naya Raipur
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2.3 Comparison between Dholera, GIFT City and Naya Raipur
Table 2.4 Comparison of the 3 projects
Dholera GIFT City Naya Raipur
The construction is
underway.
The construction is also
under way.
The construction is complete.
It would be mainly acommercial city.
It would also be commercialcity.
It has been developed foradministrative purposes aswell.
By and large it would be agreen smart city model.
It would also be a greensmart city model.
It is a green smart city model.
Sports facilities are providedfor certain disciplines likegolf.
Sports facilities are absent. Sports facilities are there likeinternational cricket stadium.
Educational facilities are notpresent per se.
Educational facilities areabsent.
Educational scope is there asmany institutions have beenset up.
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Chapter 3 Smart Village
3.1 Smart Village
Village performance depends on hard infrastructure (physical capital), and also on the
availability and quality of knowledge, communication & social infrastructure (intellectual
capital and social capital).A smart village has investments made in human and social capitalin addition to physical capital.
Also the Indian government is sincerely progressing with the idea of Adarsh Gram Yojna.
The plan aims to cover 2,500 villages by 2019 to focus on the all-round development of
villages, including economic, social, cultural growth and development.
Also under MNREGA there is a scope for asset management system using GIS, GPS &
Remote Sensing. The idea of NOFN i.e National Optical Fibre Network is also being
aggressively pursued.
Figure 3.1 Smart Village Ecosystem
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Figure 3.2 Governance Model
3.2 Case Study: Pochampally Village
Pochampally Village
Pochampally does more than $22 Million annual business in yarn sales, purchase of
handloom products etc.
The marketing is done through the cooperative society and APCO, the master weavers
and the business houses.
Pochampally weavers association sell their products online throughpochampally.com.
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Figure 3.3 Smart Village Pochampally Ecosystem
3.3 Case Study: Smart Village application in Australia
An NSW distributor Ausgrid has undertaken to build Australias 1st Smart Village. They
would be helping 1000 households to reduce their utility bills and carbon impact. The
households would be connected to a smart grid featuring more information about energy
consumption. They can use real time data of their water and electricity usage, use them
judiciously and can then benchmark with their neighbors.
3.4 Case Study: Smart Village application in Ireland
Suicide prevention app
With the help of this app, the suicide rates in the villages are expected to fall significantly.
This app will use Google maps to pull together local information to provide easy access to
helplines and websites. The app will repeal local offices and services to users i.e a call to any
helpline is just a click away.
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Chapter 4 Methodology
4.1 APP Framework for Competitiveness
APP Framework consists of Competitive Assets, Competitive Processes and Competitive
Performance.
Competitive Assets
Factors which are often considered key sources of Competitiveness.
It contain factor costs, human resources, industry infrastructure, demand conditions
etc.
Competitive Processes
Factors which transforms assets into long term competitive performance
Consist of strategic mgmt., implementation, HR development, technological mgmt.,
etc.
Competitive Performance
Effectiveness and efficiency in satisfying the needs
Encompasses productivity, quality etc.
The three components of the basic concept can be adapted as three facets of competitiveness:
competitive assets, competitive processes and competitive performance. Each facet is
aggregation of several factors of competitiveness, the real elements. The factors can be
defined and measured in terms of criteria of competitiveness. Quantifying a multifacetedabstract concept such as competitiveness is very difficult. However, it is possible to break
down competitiveness into many distinct criteria that can be quantified independently. These
criteria are the basic building blocks of the competitiveness model.
Assets include factors which are often considered key sources of competitiveness. Traditional
economic theory attributes competitiveness to three basic assets: labor, capital, and natural
resources. Three key components of Porter's diamond (Porter, 1990) factor conditions,
demand conditions, and related and supporting industriesare considered parts of the assets.
Assets are dormant factors unless they are transformed by competitive processes. The
processes that ensure long term competitive performance are depicted as strategicmanagement practice. Strategic management practices at the industry level can be defined as
harmonious interaction among key stakeholders in creating and upgrading the assets for
sustainable performance. The concepts of firm strategies, structure, and rivalry in Porter's
diamond are considered parts of competitive processes. Radical improvements in the industry
productivity may come from innovative actions at the industry level, rather than unrelated
optimization or automation at the site level. Assets and performance are mostly based on past
statistical data, processes have more futuristic orientation. Hence, effective processes are
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more likely to improve future performance and competitiveness. Thinking from an action and
result perspective, effective actions are prerequisite for successful results competitiveness is
primarily shaped by actions, not results. Actions are better reflected in processes than
performance.
The last but not the least important component of the competitiveness framework is
performance. Many consider performance, on cost or profit basis, as the sole facet of
competitiveness. The performance of an industry can be evaluated by its effectiveness and
efficiency in satisfying the needs of its customers and stakeholders. Financial criteria of cost
and profit alone are not sufficient.
When the APP Framework was proposed by Prof. Momaya, it was initially used for the
competitiveness of the economy. But thereafter, it was found to have implications for cities as
well. We can clearly note that factors like productivity, quality etc. have major ramifications
for cities as well.
4.2 Problem
Though we have previous studies carried out to find out the competitiveness of Indian cities,
they are not based explicitly on the smart city dimensions. So we have tried to address this
issue by considering the smart city dimensions.
Once the parameters are identified, data finding posed major problems as data or reliable data
was not available on many aspects.We have looked for extensive secondary data to measure a
citys competitiveness.
For the parameters finally considered, we collected data from 2011 to 2013 wherever
possible. The idea was that the greater is the time span considered; more might be the
reliability of the results. For calculating the results we used mainly the concept of standard
score.
4.3 Selected indicators
Indicators UnitsNumber of internet users Million
GDP per Capita $/yr
Growth rate of GDP %/yr
Number of World/historical Heritages [in100 Km]
Number
average rent [1 BHK] INR
Number of Colleges and Universities permillion persons
Number
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number of hospitals beds per thousandpersons
Number
number of doctors per thousand persons Number
*Number of accidents per 100 lane miles Number
*Number of Total Traffic Crashes Number
*Livability Position Number
*Crime per 1000 residents Number
*Infant mortality rate Number of newborns dying for every 10,000live births
*Denotes negative indicators for which low value is effective.
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Chapter 5 Results and Discussions
5.1 Results
Based on APP framework we have calculated the normal score for city competitiveness as
given in table 5.1
Table 5.1 Normal score of the tier-1 Indian cities
Normal
Score
Indicators Chennai Delhi Kolkata Mumbai Bangalore Hyderabad
Number ofinternet users
5.58 12.15 6.27 16.4 4.7 4.7
GDP per Capita 7300 3666 2500 4561 2265 1269
Growth rate ofGDP
0.061 0.1618 0.115 0.153 0.23 0.242
Number ofWorld/historicalHeritages [in 100Km]
0 3 0 4 0 3
average rent [1BHK]
5780 8000 5900 10000 6000 7500
Number ofColleges andUniversities permillion persons
21 28 39 19 17 21
number of
hospitals beds perthousand persons
2.1 4.113 6.1 2.3 2.7 1.5
number ofdoctors perthousand persons
2.3 2.53125 2.4 1.7222 1.84 1.76
Number ofaccidents per 100lane miles
9705 1800 4302 6784 5230 2409
Number of TotalTraffic Crashes
1401 1800 2103 2746 5230 2409
LivabilityPosition
2 5 6 1 4 3
Crime per 1000residents
3.6 3.8333 1.173 1.862 1.93 1.35
Infant mortalityrate
1.5 3 4.1 2.6 3.8 4.3
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In the next step we have calculated the average and standard deviation from all 3 years data
for all the selected indicators as shown in table 5.2.
Table 5.2 Average and standard deviation
APP Framework
Indicators Avg Standard DeviationNumber of internet users 8.3 4.43
GDP per Capita 3593.5 1959.73
Growth rate of GDP 0.16 0.062
Number of World/historical Heritages [in100 Km]
1.67 1.69
average rent [1 BHK] 7197 1512
Number of Colleges and Universities per
million persons
24.17 7.45
number of hospitals beds per thousandpersons
3.13 1.548
number of doctors per thousand persons 1.67 0.533
Number of accidents per 100 lane miles 5038.3 2670.96
Number of Total Traffic Crashes 2614.8 1244.85
Livability Position 3.4 1.7
Crime per 1000 residents 2.09 1.06
Infant mortality rate 3.21 0.94
In the last stage, we have normalized the data according to APP framework and found the
total score for all the 6 cities. The total score is used to determine the competitiveness among
all 6 cities as given in table 5.3
Table 5.3 Standardized score
Indicators Chennai Delhi Kolkata Mumbai Bangalore Hyderabad
Number of
internet users
0.614 0.87 -0.46 1.83 -0.81 -0.81
GDP per Capita 1.89 0.04 -0.56 0.5 -0.68 -1.19
Growth rate ofGDP
-1.6 0.03 -0.73 -0.11 1.13 1.32
Number ofWorld/historicalHeritages [in
-0.99 0.79 -0.99 1.38 -0.99 0.79
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100 Km]
average rent [1BHK]
-0.94 0.53 -0.86 1.85 -0.79 0.2
Number ofColleges and
Universities permillion persons
-0.5 0.44 1.92 -0.77 -1.03 -0.5
number ofhospitals beds
per thousandpersons
-0.67 0.64 1.92 -0.54 -0.28 -1.05
number ofdoctors perthousand
persons
1.18 1.61 1.37 0.098 0.32 0.17
Number of
accidents per100 lane miles
-1.75 1.12 0.28 -0.65 -0.07 0.99
Number ofTotal TrafficCrashes
0.97 0.65 0.41 -0.11 -2.1 0.166
LivabilityPosition
0.88 -0.88 -1.48 1.47 -0.3 0.3
Crime per 1000residents
-1.42 -1.64 0.87 0.22 0.15 0.67
infant mortality
rate
1.72 0.21 -0.92 0.63 0.61 -1.12
Total -0.616 4.41 0.77 5.798 -6.06 -0.064
Based on the total competitiveness score we have plotted the city competitiveness graph as
shown in figure 5.1
Figure 5.1 City competitiveness graph
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5.2 Discussions
Data for all the parameters have been obtained from various governmental as well as non-
governmental websites. For Delhi, central government websites has been quite useful. In
general crime data has been obtained from the city polices website. We have used the data
from 2011-2013 for about 13 parameters.
Mumbai ranks 1stin the competitiveness profile. Delhi comes 2nd. Kolkata is also ranked on
the positive side of the competitiveness. Chennai ranks better than the Bangalore and
Hyderabad. So we find that the four original metros performing better than the new ones.
Probably we can infer that since the original 4 metros had social and economic frameworks in
place before Bangalore and Hyderabad, they are on the higher side of competitiveness. In the
coming decades, as the infrastructure catches up in Bangalore and Hyderabad, we can expect
the gap to close down surely.
With respect to Chennai, we can say that it has fallen behind Mumbai, Delhi etc. So for
removing some shortcomings they have decided to come up with the scheme-Chennai Mega
City Development Mission. Rs 500 crore for the same has been allocated already by the
state government.
With respects to Mumbai, we can say that the results are not at all surprising as a lot of
projects are going on. Like for example, Bandra Kurla complex project would become live
by 2017 with features like free high speed internet for 30 mins, smart parking lots with
electric cars etc.
5.3 Recommendations
When we constructed graphs based on the data obtained, we got results similar to other
studies done on the city competitiveness. This shows that the parameters which we haveshortlisted for the tier I Indian cities have been by and large satisfactory. They can be thought
of as a starting point for carrying out competitiveness study of tier -2 and tier 3 cities as well.
5.4 Implications for Research
With the availability of city data we can include more city parameters to evaluate the city
competitiveness. The problem might be more in case of Tier-2 and Tier 3 cities. So it is quite
possible that then we might have to consider somewhat different parameters than what we
considered for the Tier-1 cities keeping in mind the ground realities. The lessons could be
suitably applied for Tier-2 and Tier-3 cities as well.
5.5 Implications for Practice
Based on our selected criteria and parameters, Bangalore is showing some discrepancy. It
might be possible that the obtained results could have changed for exhaustive selection of city
indicators. As a part of our future study, we are trying to find out how we can bring more
satisfactory results. Also from the framework used, we would extend our work for the Tier-2
and Tier-3 cities as well.
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5.6 Conclusions
City competitiveness is a major driver for the development of smart cities. The indicators
used in APP Framework can be used as city performance for tier-2 and tier-3 cities. A lot of
challenges have been found to determine the city indicators and competitiveness in the
context of smart cities. The competitiveness score maps out the strengths and weaknesses of
cities which should be improved to match the benchmark standards of smart cities. The
implementation of effective strategies and actions in urban development ensures the vision of
developing 100 smart cities in India.
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