Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München

 
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
Smarter Together
                 Munich
                 Activities and Achievements
                 2016–2021

City of Munich
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
CONTENT

Introduction                              3

Smarter Together in Munich                4

Citizen Engagement                        8

Sustainable Mobility                     12

Refurbishment and Renewable Energy       16

Data and Services                        22

Remarkable                               28

Working Together                         30

Replication                              33

The Bigger Picture                       34

Insights at a glance                     36

Outlook                                  38

Annex                                    39

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Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
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Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
INTRODUCTION

                                                 Smarter Together is the first major smart city pilot
                                                 project in Munich to take an integrated look at the
                                                 most urgent urban development topics of our time,
                                                 from the question of future urban mobility and how
                                                 to make low-energy districts a reality, through to
                                                 technological solutions to implement such plans.
                                                 I am also particularly pleased that we were able to
                                                 spend years working closely and openly with our
                                                 European partner cities to tackle these forward-
                                                 looking topics. We hope to continue this cooperation
                                                 beyond the scope of the project.

                                                 Dieter Reiter
                                                 Mayor of the City of Munich

    More than half of the world’s population already live in cities. The UN expects this
    figure to rise to two thirds by 2050. The resulting demands placed on infrastructure
    already pose an ongoing challenge. Increased urban density and the ensuing rise
    in demand for living space and energy, in traffic, in problems finding parking spaces
    and, by no means least, in pollution, mean that new, smart solutions are necessary.

    Against this backdrop, the City of Munich joined forces with Lyon and Vienna and
    launched the Smarter Together project. The project was funded by the European
    Commission as part of the Horizon 2020 programme for research and innovation.
    During the project, which ran from February 2016 to January 2021, the partner
    cities developed and tested innovative smart city solutions.1 The aim was to jointly
    find answers to questions about the future of urban development. At the same
    time, the project also emphasised the importance of involving citizens in shaping
    the future of their cities. The name “Smarter Together” set the tone: Thanks to
    regular, open transfer of knowledge between the participating cities and within
    their administrative departments, a space was created for trust-based dialogue
    about best practice examples as well as challenges and how to master them.

    This brochure sheds light on the background and approaches the broad insights
    gained in the Smarter Together project in Munich.

1   Due to the corona pandemic, the duration of the project was extended until July 2021 for further
    monitoring.                                                                                         3
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
Smarter Together
    in Munich
    As the focus of the project is on smart city solutions, it is important to define what
    we mean by the term. After all, there is no clear definition. It can mean anything from
    bringing existing urban services into the digital realm to plans for how flying cars can
    help ease traffic problems in the future. In isolation, neither approach is satisfactory.
    First and foremost, a sustainable smart city is a city whose main priority is its citizens
    and which ensures that the city remains or becomes a place where people want to live.
    In other words, “smart city” refers primarily to the goal rather than to the individual
    strategies for reaching this goal.

    However, while working towards the goal, cities need to consider what strategies are suited
    to dealing with issues such as climate or demographic change. Current considerations
    are often focussed on the topics of connected mobility, energy, digitalisation, and
    modern administration. In the Smarter Together project, Munich and its partner cities
    decided to take a closer look at practical applications and to test the suitability of
    individual measures. The only way to see whether something has the potential to be a
    smart city solution is to discover how it works in reality.

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Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
SMARTER TOGETHER IN MUNICH

Objective: Re-thinking the city
In the Smarter Together project, experimenting was both allowed and encouraged.
The purpose of the EU funds was to test smart city innovations and develop
those ideas which offer real practical value and promote energy efficiency and
sustainability. As part of this process, it was important to take an integrated
view of measures from the most diverse areas of urban development, ranging
from redevelopment and renewable energy to sustainable mobility, integrated
infrastructure, intelligent data use, and citizen engagement. All these topics are
integral to the development of smart cities, as they can have a direct influence on
the quality of citizens’ lives (see diagram p.6).
                                                                                       A major factor in the success of the
                                                                                       EU project Smarter Together was also
The multidisciplinary approach was of major benefit, as the topics are closely
linked and influence each other on various levels. For example, data from all the      the close cooperation of the project
developed solutions was collected in the smart data platform, which was also           team with local business and research
created during the project. In addition, citizen engagement was a core component       partners. Involving local innovative
in all project areas. Smarter Together thus worked towards a new smart city model,     partners in urban development is
which aims to place citizens and society at the heart of the process.                  essential to developing a smart city. The
                                                                                       very name ‘Smarter Together’ emphasises
                                                                                       this fact.

                                                                                       Clemens Baumgärtner
                                                                                       Head of the Department of Labor
                                                                                       and Economic Development,

Partner cities:                                                                        City of Munich

the Smarter Together consortium
The lighthouse cities Munich, Lyon, and Vienna joined forces in the Smarter Together
project to develop, test, and discuss smart city solutions, and to learn from one
another. The aim of the three “follower cities” Santiago de Compostela, Sofia, and
Venice was to draw on insights gained by the lighthouse cities and adapt them
to local circumstances in their own cities. This process entailed regular dialogue
and open cooperation between the various city administrative departments and the
participating project partners.

All cities which receive funding from the European Commission as part of the
Horizon 2020 research and innovation programme are also part of the network
European Innovation Partnership on Smart Cities and Communities (EIP-SCC).
This network is a platform for innovation which aims to connect public and
private stakeholders in order to develop and implement specific plans, events, and
projects. The projects take turns chairing the network. With the Smarter Together
project Munich thus became part of a much larger European network.

                                                                                         Lyon           Santiago de Compostela
                                                                                         Munich         Venice
                                                                                         Vienna         Sofia
                                                                                                                               5
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
SMARTER TOGETHER IN MUNICH

                                                  Structure in Munich
              SMART DATA PLATFORM                 To facilitate an integrated approach in the project across wide-ranging urban
              AND SERVICES                        development topics, it was necessary to set up a cross-department and -sector
                                                  team. Throughout the project period, the experts from the various departments
                                                  worked closely together. Numerous partners from the business and science
                                                  communities were also involved (see overview of project partners, p. 42–43).
                                TECHNOLOGY:
SUSTAINABLE
                                SMART
MOBILITY
                                “REAL LABS”         Preparation/Organisation                 Department of Labor and Economic
                                                                                             Development
                CITIZEN
                ENGAGEMENT
                                                    Citizen Engagement                       MGS – Münchner Gesellschaft für Stad-
                                                                                             terneuerung (Munich society for urban
                                                                                             redevelopment)

               REFURBISHMENT                        Low-Energy Districts                     SWM – Stadtwerke München (Munich City
               AND RENEWABLE
                                                                                             Utilities) and MGS
               ENERGY
                                                    Integrated Infrastructure and            IT Department and Department of Public
                                                    Services                                 Construction
   Key topics in Smarter Together Munich
                                                    Sustainable Mobility                     MVG – Münchner Verkehrsgesellschaft
                                                                                             (Munich Transport Corporation)

                                                    Monitoring & Evaluation                  Department of Urban Planning and Building
                                                                                             Regulation

                                                    Preparing for Replication                Department of Urban Planning and Building
                                                                                             Regulation
   Funding
                                                  Municipal departments and subsidiaries involved in the project and their areas of
   approx. EUR 24.7 million                       responsibility.

   Total European Commission funding
   for the Smarter Together consortium.
                                                  Smart City Munich
   approx. EUR 6.85 million
   EU funds for the City of Munich and par-       Within Germany, Munich is one of the cities under the greatest pressure to transform.
   ticipating local partners within Smarter       As a rapidly growing city with the greatest population density per square kilometre
   Together. This sum was complemented            in Germany, the City of Munich faces particular challenges, especially concerning
   by local government resources and              infrastructure. Pilot projects such as Smarter Together are part of larger efforts in
   money from the business and research           Munich to promote forward-looking sustainable urban development, to contribute
   communities.                                   to climate targets, and to reduce CO2 emissions.

                                                  In 2015 and 2016, alongside Smarter Together, other smart city pilot projects
   approx. EUR 20 million                         began in various areas of the city administration1. The topics included mobility
                                                  and logistics, energy, sensor-based intelligent infrastructure, as well as citizen
   were invested by the City of Munich to
                                                  engagement and services. One of the goals of such projects is to support the
   develop its Neuaubing-Westkreuz/Freiham
                                                  continuously evolving urban development strategy “Perspective Munich”. This
   district by the start of 2021 within the
                                                  strategy posits the vision of a “city in harmony” and sets out overarching principles
   framework of this EU project alone.
                                                  for urban planning and development.

                                                  The City Council first adopted the Perspective Munich over 20 years ago. Since
                                                  then, in light of the ongoing changes in the city environment, the contents are
                                                  assessed for relevance and updated roughly every five years.

                                              1   CIVITAS ECCENTRIC: EU-funded project for sustainable mobility (term 2016–2020) | City2Share: Project
   6                                              in the Federal Ministry for the Environment’s (BMU) “Renewable Mobile” programme (term 2016–2020)
Smarter Together Munich - Activities and Achievements 2016-2021 City of Munich - Wirtschaft München
SMARTER TOGETHER IN MUNICH

                  Neuaubing

                              Am Westkreuz

                          Freiham

Project area in Munich
The Munich projects were carried out in the urban renewal district Neuaubing-Westkreuz and
in the newly developed neighbouring district of Freiham in the west of Munich. Neuaubing-
Westkreuz is home to some 23,000 residents with very different socio-economic backgrounds.
The district is dominated by buildings dating from the 1960s and 1970s. Many of the apartment
blocks are in need of thorough modernisation. Neuaubing-Westkreuz is part of Munich’s largest
and at the same time most sparsely populated district. Newly developed Freiham is also part
of the project area. Some 17,000 residential units and infrastructure for 28,000 inhabitants are
being built there.

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Citizen Engagement
    Citizen engagement is an important success factor in all types of urban development.
    However, convincing citizens to engage can pose diverse challenges. Citizens are
    primarily interested in the immediate effects on their everyday environment, while
    the goal of urban development is to jointly seek new ways to shape the city of the
    future. In light of this, it is particularly important that citizens are fully informed about
    technologically complex topics.

    Involving citizens was therefore an essential component of the Smarter Together project.
    The aim was to raise awareness and acceptance of the process on a local level, to impart
    basic knowledge about the smart solutions being planned, and to persuade citizens to
    actively participate.

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CITIZEN ENGAGEMENT

To achieve these objectives, the Smarter Together team focussed primarily on the
following strategies:

Local public relations work and communication
Using the slogan “Neu Denken” (“Think New”), a multi-media communication
campaign was launched in the project area. Led by the Munich Society for Urban
Renewal (MGS), the campaign ranged from print media and radio to direct mail and
external advertising as well as local events. Throughout the project, public relations
work in the project area was supplemented by press material and the use of online
and social media channels. In this way it was possible to tailor both language and       Participation processes and co-design
images to the highly diverse target groups.                                              opportunities are important building
                                                                                         blocks for the success of municipal
                                                                                         projects. After all, an offer is only as
                                                                                         good as it is accepted by the local
Urban Living Lab                                                                         population. The Urban Living Lab and the
                                                                                         participation formats in Smarter Together
The Urban Living Lab which was specially developed for Smarter Together in
Neuaubing-Westkreuz opened less than six months after the project was launched.
                                                                                         have provided valuable impetus for
It was the key hub for citizen engagement in the project area, functioning as an         further work in the project area and other
event and exhibition location as well a citizens’ centre. The Smarter Together           areas within the City of Munich.
team wanted to use the lab to interest citizens and other stakeholders in topics
surrounding sustainable, smart urban development, and invited them to express            Christian Amlong
their own particular wishes. Informative and entertaining events, including              Managing Director MGS
interactive art and media projects, technology exhibitions, and talks were also on
offer. The project managers and experts from the Smarter Together team were
available for public consultation at the urban lab three days a week.

                                                                                                                             25
                                                                                                          co-design workshops on
                                                                                                              smart city solutions

                                                                                                       technology workshops with
                                                                                                                                 6
                                                                                                          around 140 participants

                                                                                                          mobility workshops with
                                                                                                                                 5
                                                                                                          around 100 participants

                                                                                                       more than   4,000
                                                                                                                      visitors to the
                                                                                                                   Urban Living Lab
Foyer of the Urban Living Lab

                                                                                                                                    9
CITIZEN ENGAGEMENT

Data Consultation Team                              Involving citizens and interest groups
During the engagement process,                      As an intensive form of engagement, the Munich Center for Technology in Society
                                                    at the Technical University of Munich came up with a co-design process for Smarter
the need to handle collected data
                                                    Together. Together with the MGS, the Center organised a series of workshops at
very sensitively was repeatedly
                                                    the Urban Living Lab. The co-design workshops offered participating citizens the
emphasised. After the process
                                                    chance to integrate their ideas and concerns in the concept and design of the
concluded, locals continued to meet                 planned infrastructure strategies and thus have a real influence on the process.
regularly with experts as part of a
newly formed “Data Consultation                     Co-design was carried out with experts from business and research partners, and
Team”. They were kept informed                      encompassed the planned measures in the areas of technology and mobility. In
about the latest developments and                   addition, throughout the project, the Smarter Together team set up information
had the chance to make suggestions                  stands, organised interactive events at various locations in the district, and invited
and requests.                                       citizens to test the new smart services at launch events.

                        Location of the measures    Co-design workshop on data
                              on the district map

                                                    The co-design workshops led to recommendations and wishes from citizens.

                                                    ▶   Participants in the design process agreed that technical systems and
                                                        infrastructure alone do not make a city an appealing place to live. For this
                                                        reason, they recommended designing cities so as to make them service-
Project partners in the field                           oriented places where people will want to stay.
of citizen engagement
                                                    ▶   A key topic in the technology workshops was that the planned sensors
                                                        should strictly be a means to an end. The collected data should directly serve
                                                        the interests of citizens, improve life in the district, and promote more self-
                                                        aware behaviour in everyday life.

                                                    ▶   Participants in the mobility workshops expressed specific desires concerning
                                                        new mobility services in the city.

see also p. 42–43

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CITIZEN ENGAGEMENT

                                                                                        Facade of the Urban Living Lab

                                                     Presentation of workshop results

Insights
▶ Plan ahead
  When it comes to pilot projects, it is advisable to initiate citizen engagement well before the implementation
  phase is due to begin, so that the results can be properly incorporated into the project.

▶ Leave room for manoeuvre
  Citizen participation is not the right strategy for projects whose objectives have been established down to
  the smallest detail. People are more motivated to participate if there is a genuine chance that their ideas
  will be incorporated.

▶ Entertain and inform
  Participation should be both enjoyable and uncomplicated. Ensuring that formats are both genuinely
  informative and easily accessible is the best way to involve a broad sector of the population.

▶ Online and offline formats
  A combination of face-to-face and online formats allows more target groups to be involved.

Opportunities for citizens to help design their urban environment will become increasingly important in the
future. Combining digital and analogue offers on the one hand and tailoring communication to specific target
groups on the other can help cities to reach the maximum number of people and encourage participation.
The willingness of citizens to participate rises in tandem with the project’s scope for reacting to suggestions,
the relevance to their lives, and the likelihood of their ideas being implemented.

                                                                                                                                11
Sustainable
     Mobility
     Mobility is one of the biggest challenges facing modern cities, with respect to both
     climate protection and quality of life. One of the aims of future mobility is to reduce
     dependency on cars – to replace traffic jams and dissatisfied commuters with quiet,
     environmentally friendly mobility services which are efficient in terms of space and
     meet people’s transport needs in a flexible way. For this reason, as part of Smarter
     Together, a promising innovative mobility concept was tested in Munich in the form
     of mobility stations. In the medium-term, these stations offer residents the chance to
     adopt more sustainable transport habits.

12
SUSTAINABLE MOBILITY

Multimodal mobility stations
Access to new mobility forms should be both appealing and easily accessible
to users in the project. The main idea was therefore to physically pool mobility
services. For this purpose, eight multimodal mobility stations had been installed in
the project area by 2019. These stations combined sharing services and electro-
mobility with traditional public transport provision. Pooling the mobility services in
this way ensures they are both highly visible and easy to find. Mobility stations also
make it possible to re-shape public spaces and make them more attractive.

The stations offer various services for various transport purposes: bicycles (MVG
                                                                                         Munich will continue to grow, and so will
Rad), e-bikes (MVG eRad), utility e-trikes (MVG eTrike) and e-cars (STATTAUTO).
                                                                                         mobility requirements in our city. To meet
The stations also have the appropriate charging infrastructure as well as a digital
information point with an interactive touch screen to enable users to directly
                                                                                         the rising demand, we need suitable services
experience the connection between the physical and digital worlds of mobility.           beyond private car ownership. Combining our
At two of the stations also district boxes were installed, which facilitated a 24-       traditional transport services with innovative
hour delivery, shopping, and exchange service. These boxes can serve as a central        solutions for individual needs represents
storage or transfer point for all sorts of goods and thus help, for example, to reduce   one interesting option. The eight e-mobility
delivery traffic in the area. The co-design workshops played a role in deciding where    stations in the Smarter Together project
to install the mobility stations. In this way, the Munich mobility stations provide a    area are a part of this. We gained important
physical platform for innovative services in the area of mobility and logistics. It is   insights during the test phase, concerning
conceivable that additional service offers, including from third parties, could be       issues such as usage, the desires of our
integrated in the future.                                                                customers, and also financing.

                                                                                         Ingo Wortmann
                                                                                         Head of the Munich Transport
                                                                                         Corporation (MVG).

                                                                                                                                8
                                                                                                                  mobility stations

                                                                                                                            40
                                                                                                                         MVG bikes

                                                                                                                            24
                                                                                                                        MVG eBikes

                                                                                                                            20
                                                                                                                        MVG eTrikes
Mobility station Freienfelsstraße

Alongside the physical pooling of services, there is also a digital platform in the
                                                                                                                             10
                                                                                                            e-cars from STATTAUTO
form of the Munich app. This app allows people to access the mobility services
offered by MVG and STATTAUTO, as well as e-car charging services, and to book
the services from the respective providers. Payment can be made via the M-login,
which allows for services from Munich City Utilities and the City of Munich to be
paid for using just one customer account.
                                                                                                                             16
                                                                                                              charging stations for
                                                                                                                      electric cars

                                                                                                                                  13
SUSTAINABLE MOBILITY

                                                   Utilisation of the mobility services
                                                   Awareness of the mobility stations in the project area is high:
                                                   Almost two thirds of participants in a representative survey in the project district
                                                   knew, for example, about the station at Westkreuz1. This indicates successful citizen
                                                   engagement and information campaigns as well as the stations’ clear visibility in
                                                   the city.

                                                   Mobility stations are a suitable way of promoting intermodal and multimodal
                                                   mobility: The three mobility stations in the project area which by far enjoyed the
          Opening of the mobility station          most use were those at busy S-Bahn (suburban train) stations (Aubing, Westkreuz,
                          at Westkreuz
                                                   Neuaubing): 63 percent of the total amount of MVG bike rentals and 50 percent of
                                                   car-sharing rentals in the project area took place at these locations.

                                                   Shared mobility becomes part of everyday life:
                                                   MVG bikes in the project area were primarily used during afternoon rush hour and
                                                   at weekends. This shows that the shared mobility system became part of the
                                                   everyday transport habits of at least some residents. The use of car sharing also
                                                   grew continuously over the project period.

                                                   E-bikes are particularly suited to medium-distance or longer journeys:
                                                   At present, the MVG e-bike is only available in the Smarter Together project area and
                                                   in the inner-city pilot project City2Share2. The majority of journeys took place within
                                                   the respective project area, although the bikes were rented considerably less often
                                                   than conventional MVG bikes, presumably as the latter are perfectly adequate for
           Electric car from STATTAUTO
                                                   shorter journeys without the benefits offered by electricity.

Safety issues                                      Worthwhile expansion of services:
                                                   MVG bikes in the project area are used for both short trips to start or finish off a
                                                   journey or to reach nearby destinations and are also rented to reach more distant
New urban services attract attention,
                                                   destinations. In 2019, two thirds of journeys were within the project area, while a third
and unfortunately not all of it is positive.
                                                   brought users to other city districts, despite the fact that there were no possibilities
They can also fall victim to vandalism. In
                                                   to hire or return the bikes in districts immediately surrounding the project area.
the project this was a particular problem          Expanding the service into suburbs could enable further climate-friendly and space-
with the MVG e-trike. This indicates that          saving mobility.
even prototypes in a clearly defined and
well-informed project area must be highly          Conventional cars still more popular than e-cars in the city:
developed and as vandalism-proof as                In 2019, the average number of electric cars rented in Smarter Together was only a
possible.                                          third of the number of combustion engine cars rented from STATTAUTO in the inner-
                                                   city project area of City2Share. This is due to the lower range and the ongoing lack
                                                   of familiarity with charging electric cars at public charging stations. Also, there were
                                                   no previous car-sharing offers in the Smarter Together project area, meaning that
                                                   residents had to gradually get used to the service. In 2020, however, it was possible
                                                   to considerably reduce the gap between electric and combustion engine car use at
Project partners in the                            some stations.
field of mobility
                                                   Promising, but with room for improvement:
                                                   The district box attracted considerable interest among Munich’s citizens, as shown
                                                   by market research and the numbers who signed up to use the service. However,
                                                   during the brief project period, user numbers failed to match expectations (more
                                                   information on p. 29).

                                               1   Source: Household survey by Omnitrend GmbH on behalf of the Department of Urban Planning and Build-
                                                   ing Regulation 2019: The household survey of residents in three different Munich pilot districts (Smarter
see also p. 42–43
                                                   Together, Civitas Eccentric and City2Share) will be further assessed in 2021.

                                               2   The project City2Share put innovative mobility and delivery service concepts into practice in select-
14                                                 ed districts in the centre of Munich (term 2016–2020).
SUSTAINABLE MOBILITY

         The MVG eTrike

         At the start of the project, there were no shared mobility service providers
         for electric utility bikes on the market. A prototype developed as part of
         Munich’s smart city project CIVITAS ECCENTRIC was therefore used.
         Smarter Together was the first opportunity to see how the MVG eTrike
         worked in reality. Making such a prototype a fixed element of the mobility
         stations was an ambitious undertaking. Constructing the bikes for the
         project area, setting up charging infrastructure, conducting multiple tests,
         solving teething problems and implementing communication strategies
         was a time-consuming process.                                                                              MVG eTrike

         Smarter Together project area

         The Smarter Together project area in a settled district in the west of
         Munich is not typical for pilot projects relating to smart mobility. New
         mobility services are generally initially tested and used by people with
         a particular interest in innovation and digitalisation. They tend to live in
         more densely populated, inner-city areas. Residents’ needs for alternative
         mobility solutions also play an important role in pilot projects. In the
         project area many people have access to a private car (80 percent of
         the household survey respondents said that they own a car1) and finding
         parking spaces is not a problem. However, the Smarter Together project                                     SWM charging station
         dealt with and integrated various smart city elements and the project area
         was chosen according to wide-ranging criteria.

    Insights
    Smarter Together did a lot of ground-breaking work in the area of sustainable mobility, and valuable insights were
    gained.

    ▶ Designing and developing innovative mobility services in public spaces requires more than just good ideas,
      market knowledge, and straightforward product development. New services also mean new tasks and require
      organisational changes. In the case of highly complex integrated mobility, this particularly affects cooperation and
      administrative processes.

    ▶ To make sure that mobility stations are successfully available, it is also essential to devise and maintain a complete
      and efficient operating concept.

    ▶ This includes integrating digital elements of the project and linking them to an app for accessing the services, as
      well as providing support via customer management, marketing, and communication strategies.

    ▶ The use of new mobility systems needs to be learned. Time and information are required for these systems to
      become part of citizens’ regular lives and to reach their full potential.

    The basic political desire to establish more mobility stations in Munich was already clearly expressed in
    the City Council resolution “Shared Mobility” of July 2019. The resolution calls for the wide availability of
    various environmentally friendly and connected modes of transport, including in the suburbs. A resolution on
    implementation and a specific strategy for further development is planned for 2021.

1   Source: Household survey by Omnitrend GmbH on behalf of the Department of Urban Planning and Building Regulation 2019.                         15
Refurbishment
     and Renewable
     Energy
     More than one third of all end energy in Germany is consumed domestically, above all for
     heating and warm water1. Even if only energy-efficient houses are built in the future, every
     city would still have older buildings which fall far short of modern standards and require
     refurbishment. However, where consumption is high, there is also great potential to save. For
     this reason, the socially compatible refurbishment of residential buildings was an important
     cornerstone of Smarter Together. The aim was to make the buildings more energy-efficient and
     to use more renewable energy to supply heat and electricity.

     1   Source: Federal Ministry for Economic Affairs and Energy, 2020
16
REFURBISHMENT AND RENEWABLE ENERGY

During the project, various measures were implemented which might help to
establish long-term refurbishment strategies for existing buildings in the future.

   Specifically, the City of Munich aimed to:

   ▶ refurbish the energy systems of a total of 42,000 m² of living space to a
     high standard,
   ▶ further increase the proportion of renewable energy used to supply heat                    The refurbishment of residential
     and electricity,
                                                                                                buildings is a central component of the
   ▶ raise citizens’ awareness of energy-saving behaviour and a healthy
                                                                                                climate protection efforts of the City of
     indoor climate,
                                                                                                Munich. We are therefore very pleased
   ▶ connect more buildings to the district heating system and use the
     virtual power plant to offer property owners an appealing way to access                    that within the framework of Smarter
     their renewable energy.                                                                    Together, a whole series of residential
                                                                                                buildings could be refurbished to a very
                                                                                                high standard. Especially in the area of
                                                                                                shared ownership associations with their
                                                                                                complex decision-making structures this
Neuaubing-Westkreuz is dominated by buildings dating from the 1960s and 1970s.
                                                                                                is a valuable experience that can be can
Many of these buildings are in need of modernisation due to their age and condition.
                                                                                                be built on in other areas as well.
A particular challenge for the Smarter Together team was that the apartment blocks
in need of refurbishment are mostly in the hands of shared ownership associations
(WEG). Although structural procedures concerning the refurbishment of residential               Gerda Peter
buildings is essentially the same irrespective of the form of ownership, the rate               Managing Director MGS
of refurbishment among shared ownership associations is below the German
average. One reason for this lies in the complex decision-making structures.

                        Refurbishment Consulting                   Refurbishment Roadmap        Concept for refurbishment
                                                                                                and renewable energy.

        Photovoltaics                              Refurbishment          Smart Home               DATA     Smart Data Platform
                                                                                                   INDOOR AIR TEMPERATURE
                                                                                                   AND HUMIDITY,
                                                                                                   BUILDING DATA

Battery Storage Unit                           Energy Grid /
& Virtual Power Plant                          District Heating

                                                                                                                                        17
REFURBISHMENT AND RENEWABLE ENERGY

200,000 m
                                                       Which plans were implemented?
                                2
of living space energetically examined                 The strategies for creating a future low-energy district in the Smarter Together
                                                       project area were based on several core components: In addition to refurbishing
                                                       energy systems, the aim was to ensure that the district’s energy supply includes a

>42,000 m2
                                                       high proportion of renewable energy. Citizens should also be made more aware of
                                                       energy-saving behaviour.
energetically refurbished living space

3.6 %
refurbishment rate in 2020
                                                       Energetic Refurbishment
                                                       Refurbishment Consulting
Across Germany, the rate of refurbishment
is about 1% per year. It would be neces-               The Munich society for urban redevelopment (MGS) is the go-to expert for questions
sary to modernise the energy systems of                concerning urban development and the refurbishment of buildings. The MGS team
                                                       of specialists promotes energy modernisation by providing in-depth consultation
at least 2% of buildings per year to reach
                                                       to property owners. Munich offers comprehensive and free consultation to owners
the national climate protection targets.
                                                       in selected redevelopment areas1 to help them make the often complex decision
                                                       to commit to an energy-efficient refurbishing. Consultation in the project area was
                                                       further intensified during Smarter Together. After thoroughly assessing the building,
KfW 100 Rate of refurbishment in %
                                                       the project team provided expert advice on measures for the building’s exterior,
 2014—2018 1.95                                        modernisation of the heat supply system, and the integration and expansion of
                                                       renewable energy use.
 2019                    3.15
 2020                         3.60                     By modernising their buildings, owners can significantly reduce energy costs in the
                                                       future. One precondition (also for attractive funding terms) is that refurbishment
Last updated: September 2020, data                     must deliver KfW Efficiency Status 100. The aim was to make refurbishment more
including a refurbishment baseline of 1%
                                                       economically viable for private owners while giving due consideration to social
(source: MGS)
                                                       aspects and, by so doing, also work towards climate targets.

Refurbished buildings in the redevelopment area.

                                                   1   In Germany a redevelopment area means a clearly defined area in which a community (cities, municipal-
                                                       ities, also villages) carries out “urban redevelopment measures ”. To this end, the community adopts an
                                                       official redevelopment regulation in accordance with Article 142 of the German Federal Building Code
                                                       (BauGB).

18
REFURBISHMENT AND RENEWABLE ENERGY

Thanks to increased local consultation during the Smarter Together project, the
MGS team analysed the energy systems of more than 2,000 residential units
comprising a total of more than 200,000 square metres. This corresponds to
around one third of the total living space in the project area. The analyses helped
bring about the desired result. Within the project period, the energy systems of
more than 42,000 square metres of living space were modernised. The local rate
of refurbishment rose continuously throughout the project: Each year from 2014
to 2018, almost 2 percent of living space in the district Neuaubing-Westkreuz was
refurbished to a high standard. In 2019, the figure rose above 3 percent and it
reached 3.6 percent in 2020.

Refurbishment roadmap

Based on its in-depth consulting experience, the MGS collaborated with the
Fraunhofer Institute for Building Physics (IBP) and other partners to develop a
                                                                                           Refurbishment consulting
roadmap for sustainable project management for renovating the energy systems
of buildings under shared ownership. The roadmap contains well-researched
recommendations and innovative approaches to designing the refurbishment
process in the context of the challenges specifically faced by shared ownership
associations when initiating, planning, and implementing extensive refurbishment
measures. It can be downloaded free of charge.

                                                                                                                 Download
                                                                                                                 Refurbishment
                                                                                                                 Roadmap

                                                 Energy from                               Knock-on effect of energetic
                                             photovoltaic systems                          refurbishment
                                           covers up to 20,000 kWh
                                                  of annual                                The property of the shared ownership
                                                energy needs                               association on Radolfzeller Straße 40–46
                                                                                           was one of the first to be refurbished
           90%                                                                             during the Smarter Together project. With
     renewable energy                                                                      the help of funding and an intelligent
         for heat                                                                          financing strategy, it was possible to
                                                                                           implement the energy-saving measures
                                                                                           concerning the building exterior and
                                                                                           energy systems and to install the
                                                                                           photovoltaic system to meet energy
                                                                                           requirements without having to raise
                                                                                           home owner’s association fees. The
                                                                                           knock-on effect was considerable, with
                                                                                           other shared ownership associations then
                                                    End energy:                            deciding to modernise their buildings.
                                                     Savings of
                                                   more than 20%

                                                                                                                                  19
REFURBISHMENT AND RENEWABLE ENERGY

District heating                        Expanding renewable energy use
The geothermal heat station in
                                        Photovoltaic systems and district heating
Freiham, which was built by the
Munich City Utilities (SWM) in 2017,
                                        To increase the proportion of renewable energy used in the project area, the
draws on a 90°C source at a depth       refurbishment consulting service also focused on the installation of photovoltaic
of some 2,500 metres and with an        systems and connecting buildings to the local geothermal district heating systems.
output of 100 litres per second. 13     The project offered financial support and advice to owners who were interested in
megawatts of this locally obtained      integrating regenerative energy systems for heat and electricity into their buildings.
heat are fed into the city-wide
district heating network by the SWM.    One of the shared ownership associations in the project as well as additional
Buildings in the project area which     private owners chose to install photovoltaic systems. During the project, the City
are connected to the district heating   of Munich also installed such equipment in two pre-school facilities and three
system can thus benefit from a          schools. They provide a total of 219 kilowatt-peak (kWp) in energy, thus exceeding
virtually carbon-neutral heat supply.   the initial Smarter Together target of 109 kWp. Moreover, twelve buildings were
                                        connected to the district heating system during the project period, rather than the
                                        initially planned ten.

                                        Battery storage unit and virtual power plant

                                        As part of Smarter Together, the Munich City Utilities began operating a new battery
                                        storage unit. The unit, which has an output of 800 kilowatts (kW) and a capacity of
                                        1,000 kilowatt hours (kWh), was constructed in 2018. It is an important component
                                        of the SWM’s virtual power plant. The virtual power plant connects the various
                                        energy supply systems and electricity consumers to each other. Intelligent energy
                                        management controlled by the virtual power plant’s operations centre enables
                                        excess electricity to charge up the battery storage unit at short notice and then
                                        discharge it again in response to demand. The battery storage unit thus contributes
                                        to stable power grid operations by balancing out short-term deviations between the
                                        supply of and demand for electricity.

                                        In addition, it is deployed as a neighbourhood storage unit with a view to increasing
                                        the use of energy from renewable sources. Power plants in the project area which
                                        do not have their own power store can be linked to the battery storage unit via the
                                        virtual power plant.
Battery storage and geothermal
heat station

                                        Raising awareness
1,000 kWh
capacity of                             As part of the Smarter Together project, 400 “smart home” sets and a corresponding
new battery storage                     app from project partner Securitas were available free of charge to residents in the
                                        project area in order to raise awareness of energy-saving behaviour and a healthy

219 kWp
                                        indoor climate.

output via                              Installed in the home, these smart home sets helped residents create healthy,
photovoltaic systems                    comfortable living conditions. To do so, the sets collected temperature and
                                        humidity data. Via an app, they then gave users tips on energy-saving heating
                                        and ventilation behaviour with no loss of comfort. By adapting one’s individual
                                        behaviour, it was possible to reduce consumption of heat energy by up to 15
                                        percent while maintaining a healthy, feel-good indoor climate.

20
REFURBISHMENT AND RENEWABLE ENERGY

Despite significant interest, the solution was not taken up to the degree expected.                 Project partners
Only around 50 smart home systems were installed and put into operation. For                        in the field of energy
future services of this kind, it is recommended that residents’ needs are established
in advance in order to tailor solutions to specific target groups. Nevertheless, it was
possible to link data from the smart home sets to the smart data platform. This
enabled the data to be used when operating the data platform and for monitoring
purposes.

Photovoltaic system Radolfzeller Straße
                                                                                                    see also p. 42–43

Insights
▶ Increasing the rate of apartment refurbishment to over 2 percent is realistic.
  In order to increase the rate of refurbishment, it would be beneficial to offer in-depth support to owners
  throughout the process, from initial consultation through to the operating phase. When it comes to shared
  ownership associations, refurbishment and modernisation is challenging on an organisational, technical, legal,
  and financial level. Funding for consultation services by the City of Munich provides support to owners and
  encourages them to come on board, while easily accessed initial consultation is an important first step for
  making contact.

▶ Funding for the refurbishment of residential buildings is important and available.
  Funding, whether on a national or European level, plays a major role in incentivising owners to modernise their
  property. On the one hand, funding helps to motivate, and on the other it also enables measures which would
  otherwise not be financially viable. Up to 50 percent of the costs can be covered by funding. Shared ownership
  associations need property-specific advice and support to obtain funding.

▶ Photovoltaic systems can also be adopted by shared ownership associations.
  Meeting energy needs using renewable energy is a challenge when it comes to older buildings, while it is
  relatively straightforward in new buildings. To improve the uptake of photovoltaic installations in older buildings,
  reducing restrictive regulations in this area would be a big help.

▶ The first refurbishment process in a district can set a positive example.
  After the successful refurbishment of Radolfzeller Straße 40–46, under shared ownership, interest rose among
  other local shared ownership associations.

Modernising buildings’ energy systems and connecting them to renewable sources of heat and electricity can be
an important step on the path to climate neutrality 2035.

                                                                                                                             21
Data and Services
     Data is key to the smart city of the future: What data is actually available? How is it collected and
     stored? And how can the city use it to create value for citizens? One of the major objectives of Smarter
     Together was to help Munich find answers to these questions. The aim was to start a process in the
     city’s administrative organisations which would help the full potential of intelligent data processing
     to be exploited in the future.

22
DATA AND SERVICES

    In pursuit of these goals, the Smarter Together team examined the topic of data
    from various angles. One aspect looked at data collection and how innovative
    ideas and technologies could be put to use to add to existing data. Another aspect
    involved creating a platform to collect and connect the city’s data and then evaluate
    the data to create value for society. The integrated, cross-departmental approach
    was particularly significant in this area.

    Smart lamp posts and smart city sensors                                                                  Smart city deals with a broad range
                                                                                                             of topics and IT makes an important,
    To help with data collection certain streets in the city were transformed into                           cross-sector contribution to the
    “real labs”. For this purpose, 60 smart lamp posts were installed in the project                         process. Smarter Together allowed us
    area and equipped with various sensors. The data provided by the lamp posts is                           to gain experience in innovative topics
    transferred with other data from the project to a central smart data platform – with                     and develop wide-ranging knowledge.
    due consideration given to data privacy. One important aim was to test the general                       I am delighted if Munich can push the
    suitability of these lamp posts as IoT1 data sources with respect to the use of                          development of important, forward-
    sensors and the necessary accompanying infrastructure and to gain experience                             looking topics and other regions can
    in this area.                                                                                            benefit from it. I therefore see the
                                                                                                             smart city of the future as a thoroughly
    The lamp posts, which were newly constructed for the project, all have a separate
                                                                                                             modern, sustainable, and connected
    second power supply for sensors and actuators and, in some cases, are directly
                                                                                                             city with numerous digital innovations.”
    connected to the internet. This meant that free public wireless LAN hotspots
    (“M-WLAN”) could be provided and various sensor types could be installed and
                                                                                                             Thomas Bönig
    continuously operated. Drawing on the results of the co-design workshops (see
                                                                                                             Head of IT Department,
    p. 10) with residents in the project area, the Smarter Together team decided to
                                                                                                             City of Munich
    test sensors on the lamp posts which measure data on air quality, weather, the
    management of parking spaces, and traffic levels. Smarter Together held two
    innovation competitions known as “open calls” to find suitable sensors.

    Thanks to consistent interdisciplinary cooperation from an early stage among all
    participants, as well as a common objective across all departments, the smart
    lamp posts were designed, constructed, and put into operation on schedule.

    Smart data platform
    For the purpose of collecting and analysing all the data recorded during Smarter
    Together, a smart data platform was designed, created, and operated throughout
    the project. It was intended to serve as a prototype for a general city data platform
    and enable the exemplary development of analyses and visualisations of the data
    obtained during the project. The aim was to develop and test new digital services
    for the city’s experts and citizens.

    Munich is committed to achieving a healthy balance between smart technologies
    and practical solutions to everyday problems. The emphasis is on quality rather
    than quantity. Smarter Together only collected data which has direct use for the
    city itself or its citizens. Data protection and data security were of paramount
    importance.
                                                                                                             Smart lamp post (Limesstraße)

1
    IoT – Internet of Things: The term denotes “smart” objects which are connected both to one another and
    externally to the internet.
                                                                                                                                                        23
DATA AND SERVICES

                                                           Data Gatekeeper

                                                           A further project aim was to describe the main approaches to dealing
                                                           with smart city data, and the processing and saving of this data,
                                                           and the requirements a city must meet when doing so. In this way,
                                                           the “data gatekeeper” concept arose: This paper contains extensive
                                                           recommendations, details of experience and guidelines on dealing with
                                                           data in a responsible manner in the context of smart cities, and will serve
                                                           as a valuable reference point for future similar projects in Munich and
                                                           elsewhere.

                                                           Transparency Dashboard

                                                           As a showroom for the Munich smart data platform, the Transparency
                                                           Dashboard gave citizens or anyone who was interested a clear overview of
                                                           what data was being collected in the project and how it was processed. It
                                                           showed which data sources were integrated, what measures were taken to
                                                           protect data and privacy, and for which applications certain data was used.

              Transparency Dashboard
                                                        Starting in 2018, data collected in the project was stored at the central smart data
                                                        platform. Particularly important to Munich was the possibility of linking various
                                                        internal and external data sources so as to create value for the participating city
                                                        departments and make previously hidden connections visible.

                                                                        SECURE, TRANSPARENT
Smarter Together technology               DATA SUPPLY                                                            DATA USAGE
                                                                        DATA HANDLING
and data concept                                                        (GDPR-CONFORM)

                               Mobility                                                                                        Open Data Portal
                          • Usage Data                                                                                         City of Munich

                                                                        Transparency-
                                                                        Dashboard

                                Energy
                       • Smart Home                                                                                            Munich SmartCity App
                       • Building Data

                                                                                                      API

                          Lamp Posts
                          with Sensors
            • Local Weather Data                                          Smart Data Platform                                  Analysis Dashboard
            • Air Quality
            • Traffic Flow
            • Parking Space Detection

                              Open Data
                                                                                                                              Internal Project
            • depending on context:                                                                                           Monitoring
              other existing data
                                                                 Data Gatekeeper Concept

24
DATA AND SERVICES

Munich app
In the wide-ranging citizen engagement process a “neighbourhood app” was
requested which would make it possible to find and book all new and existing
services in a district. This led to an idea which went beyond the Smarter Together
project and will continue to be available to the entire Munich society in the future:
The creation of a central point of access to – as far as possible – all digital services
which Munich can offer its citizens.

For this purpose, during the Smarter Together project the existing Munich app
was further developed while additional steps included integrating smart services
from the city’s departments and subsidiaries. These include an extensive mobility
service which covers the entire public transport area, from e-scooters to car sharing
and e-charging stations.

The new interactive map provides a detailed overview of local transport options
as well as interesting places such as restaurants, tourist sights, and events in a
particular area. Selected information from the smart data platform, such as data
from the intelligent lamp posts, is also incorporated in the app. Additional services
are added on an ongoing basis.

Thanks to close and trust-based cooperation with all participating departments
and in particular the city’s subsidiary organisations, it was possible to use the
existing structures of the Munich app as a basis for integrating innovative smart          The Munich app
city aspects and successfully putting them into operation.

Since early 2018, the revamped Munich app with integrated smart city functions
has been available as a free download for iOS and Android devices.

                                                                                                             Download
                                                                                                             Munich app

     City Monitoring                                                                       >550,000
                                                                                           app downloads by the end of 2020

     The long-term monitoring of selected key data for the purpose of further
     urban development is known as city monitoring. The intelligent use of
     such data provides cities with new potential for knowledge and managing
     their environment. In this way, cities can find more efficient and better             Project partners in the
     solutions to existing urban challenges such as climate change and                     field of data and services
     scarcity of space.

     Smarter Together made it clear that digital city monitoring allows for
     greater efficiency, cost savings, and improved urban planning quality.
     The targeted collection of monitoring data can be key to dealing with
     contemporary urban challenges. In order to create a wide-ranging, modern
     monitoring system for the city, relevant issues need to be assessed,
     legal and technical requirements established, and finally a purpose-built
     platform needs to be operated and managed.

                                                                                           see also p. 42–43

                                                                                                                              25
DATA AND SERVICES

3
real labs

60
lamp posts

4
types of sensors

Lamp posts in the project area (Bodenseestraße)

26
DATA AND SERVICES

    Insights

    ▶ Smart lamp posts for selected locations
      Creating the necessary infrastructure (ground preparation, laying cables and fibres) to install smart
      lamp posts is a complex task which, depending on the particular requirements, can prove very
      costly. It therefore makes sense to place such lamp posts at carefully selected locations, rather than
      all throughout the city.

    ▶ Integrated data platform
      In its role as an important IT component in a smart city, it is vital that a smart data platform is based
      on well-established technical standards so as not to be dependent on particular manufacturers.
      Such a platform must be capable of integrating existing IT infrastructure and connecting internal
      and external smart city stakeholders via standard interfaces as well as security concepts with one
      another. As part of this process, it makes sense to specify a series of standard applications for
      all users and make them centrally available as part of the smart data platform (e.g. visualisation
      components, analysis modules, API management). In the medium term, the aim is to make the
      available smart city data accessible to all participating stakeholders via a central platform which
      functions as a data hub.

    ▶ Culture of data exchange
      Making (internal and external) data available can be a demanding task due to legal and
      organisational requirements. Although almost all parties agree that data will play an important role
      in how cities act in the future, the culture of sharing data is not yet widespread. Debate tends to
      focus on data protection, issues of legal responsibility, and how up to date and specific the data is.
      These topics require close examination in order to enable an open and comprehensive exchange of
      data down the line.

    Huge amounts of data are created and processed in cities every day. A coordinated approach to
    the collection, quality assurance, and analysis of this data presents cities with major challenges.
    Cities need to discover which data is required and collected in the various city departments, and
    also identify ways to connect the various data in a beneficial manner. The Smarter Together project
    in Munich helped to lay the foundation for such an approach. Follow-up projects such as the Digital
    Twin1 or Connected Urban Twins2 are already in the process of further developing and putting into
    practice the insights gained in the initial project.

1
    Project of the Federal Ministry of Transport and Digital Infrastructure (see also p. 36 “The Bigger Picture”).

2
    “Connected Urban Twins (CUT) – Urban Data Platforms and Digital Twins for Integrated Urban Development and
    Digitalisation”, project of the Federal Ministry of the Interior, Building and Community.                                       27
REMARKABLE
Motivational film                            Award: “Best Infra-                            Smart City
on refurbishing                              structure Project 2019”                        Guidance Package

                                                                                            The Smart City Guidance Package
To encourage property owners to                                                             (SCGP), published in 2019, detailed
think about energetic refurbishment          Smarter Together won an                        the experience and insight which
in their buildings, the Smarter              award at the 18th e-government                 participating cities, companies,
Together project included the                competition. The award was given               citizens, research institutes, and
creation of the film “Die Sanierung,         for the use of urban lamp post                 organisations gained from smart
die energetische”, which both                infrastructure to implement “real              city projects. The publication aims
asks and answers many important              labs” in the city. By linking local            to help with the integrated planning
questions on the topic. The                  real-time information via a central            and implementation of future
15-minute film takes a close, honest,        data platform, data can provide                smart city and energy-efficient
and occasionally light-hearted look          real value for urban development,              projects. Common situations are
at the broad topic of refurbishment.         administration, and the general                described and practical examples
The owners of a building whose               public. The award was presented                are provided. The experiences of
energy system was successfully               at the Future Congress in Berlin in            Munich’s smart city experts also
modernised during the Smarter                May 2019.                                      informed the publication.
Together project also speak about
their experience in the film.

               The film
               on YouTube
                                        Open calls for
                                        urban innovations
                                        The Smarter Together team was faced with the challenge of finding innovative sensors
                                        to test on the smart lamp posts, without being able to specify in advance exactly
                                        what the solutions should be. The team therefore decided to involve external experts
                                        in designing the solutions. Instead of requesting individual sensors with specific
                                        functions, an innovation competition was held to search for comprehensive, topic-
                                        specific solutions. The broad nature of the task allowed start-ups and companies
                                        to add their own aspects and contribute ideas. An expert jury then compared and
                                        judged the proposals according to predefined criteria. It was thus possible to integrate
                                        solutions into the project at short notice and for a limited period.

                                            The sensors used in the Smarter Together project were sought via two open calls with
                                            the focus on sensor-based solutions for weather data, air quality, traffic, and parking
                                            space management. This new tool has now also been used outside Smarter Together,
                                            for example to look for innovative apps for the City of Munich.

28
REMARKABLE

“Interaktivraum” in                                Cooperation                                      The book
the Urban Living Lab                               with start-ups                                   to the project

From October to December 2017,
Interaktiv, the Munich network
for media competence, had its
own interactive space for media
and culture in Munich for the first                The city administration can benefit
time as part of Smarter Together.                  greatly from cooperation with start-
Together with locals, the community’s              ups. However, both sides have to be              The book “Smart City: Innovationen
strategies and options for meeting                 flexible and accommodating in the way            für die vernetzte Stadt – Ges-
the challenges and exploiting the                  they work. Government organisations              chäftsmodelle und Management”
opportunities of digitalisation were               need to be aware, for example, that              (“Smart City: Innovations for the
tested. Over just ten weeks, a total               products from young companies are                Connected City – Business Models
of 62 events for more than 1,000                   likely to evolve during a multi-year             and Management”), published in
participants took place at the urban               project. Given the tendency towards              2018, looks at issues relating to
lab in Neuaubing-Westkreuz as                      long-term planning in a city, working            smart cities. The authors examined
well at other local locations. These               with a healthy mix of established and            the strategies and tools used in
diverse and free events were aimed at              young companies often proves to be               the Smarter Together lighthouse
children and youths, pupils, parents,              the best way forward.                            cities Lyon, Munich, and Vienna,
as well as at skilled workers and                                                                   as well as the business models
interested citizens.                                                                                of participating companies. The
                                                                                                    book provides clear and practical
                                                                                                    answers to these and many other
                                                                                                    questions.

The district box system
                                                          The district box is a typical platform product: The more suppliers who are on
                                                          board, the greater the appeal for customers and vice versa. Another factor is
                                                          the significant initial cost for major suppliers (IT connection, staff training). A
                                                          critical mass for each factor must be reached in order to successfully operate
                                                          the boxes.

                                                          Small, local shops have the opportunity to use the district box without high
                                                          entry costs. They could make direct, individual arrangements with their
                                                          customers. The project has not yet been able to create sufficient interest
                                                          in using new and to some degree unconventional solutions. As a next step,
                                                          it could be worth investigating whether a central digital marketplace would
                                                          make it easier for local retailers to start using the service.
After the successful construction, fewer
service providers than expected showed                    When Smarter Together was launched, the market for food delivery services in
interest in regularly delivering products to the          Germany looked highly promising. Since then, the situation has changed and
project’s two district boxes during the pilot             several service providers are withdrawing from the market. Various business
phase. Among others, this was due to the                  models and other locations should therefore be considered with respect to
following reasons:                                        replication.
                                                                                                                                        29
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