Potential market

SECTION I: The product


The innovation potential of this product is related to:


  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…


The smart city conceptual model is a technology driven innovation, a concept born from new advancements in smart city technologies.  In cities across the planet, we see public services operating in isolation – there is little to no coordination / collaboration across departments such as housing, transportation, water, waste or public safety. By contrast, Smart City services are instrumented, interconnected & intelligent, existing in a continuum of interacting systems-of-systems. This instrumented and interconnected model presents challenges along many dimensions – and in particular the challenges of addressing the syntactic and semantic interoperability with extreme volume, along with how is it shared, provisioned (at rest or in motion), stored, co-registered, and secured. A Smart City Fabric provides a unifying platform that supports integrated city operations. Providing accessible, transparent and accountable data / service sharing between public services and citizens of the city. Built on top of an open, standards based architecture the fabric provides advanced capabilities around collaboration, sharing, mobility, multi lingual / translation, cyber security and privacy. 

The fabric should also provide context sensitive visualisation tools to increase citizen interaction and providing a platform for 3rd party software developers to create useful new applications that leverage the available data sets and services.


What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …

The added value of the conceptual model is holistic city planning view taking under consideration the following planning layers:

Layer 0: The City Layer,  Ssmart cities must start with the “city” not the “smart”, emphasizing that smart city notions must be grounded to the context of a city.  This layer conveys the traditional components present in every city.It is an important denominator to the readiness of cities in absorbing smart features . For every city, in its conventional terms, there are certain operations and processes that must be synchronized toward obtaining a smart city’s vision responding to certain challenges. These challenges refer to the enrichment of a city’s urban planning with smart planning activities and to the type of infrastructure intervention, which are planned to complement smart city actions. Another critical factor is the ability of the city to create an identity for smart priorities, which blend with the city’s plan and innovative outlook. A smart city’s identity must be aligned with regeneration projects, planning to change, and social innovation actions that should be taken to create a socially inclusive smart city vision among citizens and communities . 

Layer 1: The Green City Layer, The Green city layer is inspired from new urbanization theories raised by Greenburg  and LEED Leadership in Energy and Environmental Development initiatives. A City’s sustainable future is mutually attached to smart city structures. Green cities are emerging as holistic playgrounds for smart cities toward sustainability. In this layer the green city infrastructure creates a fertile founding environment, where broadband networks, sensors and smart grids could lead to intelligence and create environmental impact. As an example, the Smart Cities Initiative of the European Union’s SET-Plan proposes to progress by 2020 towards a 40 % reduction of greenhouse gas emissions through sustainable use and production of energy through smart city technologies.

Layer 2: The Interconnection Layer, Βroadband strengthens city economic capacity  and enhances social inclusivity  through the holistic coverage of city’s terrain, connecting physical communities as they live, work, learn, and play. IbM  has conceptualized the smart “interconnected, instrumented, and intelligent” city, where services for home, work, school, hospitals, malls, businesses, travel, and government aimed towards the improvement of quality of life.

Layer 3: The Instrumentation Layer, Cities, as urban machines of real events, require real time system response. They comprise of real time connections outlets such as radio frequency transmitters, traffic signals, streets, smart meters, infrastructure sensors, and traffic and transit sensors. In fact, the availability of real time data is the constituting element of smart cities connecting the physical world with the information world and is the distinctive procurement that justifies the dynamic term of “smartness”  Internet of Things (IoT), as a realization of digial into the physical world is expected to greatly contribute to addressing today’s urban challenges .

Layer 4: The Open Integration Layer, Smart cities applications should be able to intercommunicate, and share among others data, content and services. A key success factor for smart environments is the provision of open and distributed information storage, for all the embedded or not systems, implemented with different technological platforms Smart city platforms visualize urban space through geospatial databases, capture embedded information and monitor intelligence applications, including smart energy grids , as urban operation systems.

Layer 5: The Application Layer, Smart cities mirror the real time city operation pulse as system with systems. Cities are also being empowered technologically, as the core systems on which they are based become instrumented and interconnected, enabling new levels of intelligently responsive operation. The system incorporates infrastructures, such as broadband networking, smart grids alongside various forms of renewable energy generation and building new systems of mobility based on distributed networks. The system involves interconnected and instrumented real time operators that run on real time and historical data and provide intelligence through several forms of ICT applications such as smart energy grids, intelligent transport, e-traffic, e-payment and e-government .

Layer 6: The Innovation Layer, Smart cities create a fertile innovation environment for new business opportunities. Leon  in his work, “The Well Connected City” has identified two main factors that are necessary to become a successful smart city and innovation hub. First is the need to transform the quality and efficiency of public infrastructures and services.  Secondly, a smart city must be an attractive place for doing business.  Emerging technologies push for instrumented, interconnected and intelligent in nature cities to accelerate their journey towards sustainable prosperity by making use of new “smart” solutions and management practices. 






What is the Unique Sales Proposition of the potential product?

The unique sale proposition is that cities should shape their way into the smart vision, on the condition that certain urban innovation ecosystem elements anchor city’s smart investments into a sustainable future. Since cities are facing global challenges at a local echelon, they are the most important particles for a sustainable smart planet. Therefore, city master planning should contain the innovative characteristics that contribute to a green, sustainable smart planet growth, which was the focal point of the reference model.




SECTION 2: The Market




What is the target market for the product?

National ¨

European ¨x

Global ¨

Please describe the characteristics of your target market.

According to a new report from Marketsandmarkets, a marketing research company, the global smart cities market is expected to top $1 trillion by 2016. Currently, the report estimates the value of the smart cities market at $526.3 billion, with a compound annual growth rate of about 14.2 percent from 2011-2016. Over that time, the smart energy industry is expected to see the largest growth, from $22.9 billion in 2010 to $80.7 billion in 2016, a 28.7 percent compound annual growth rate. The smart transportation and smart security market are also expected to see growth, up to $68.8 billion and $307.2 billion by 2016. According to the report: Globally, there are some 700 cities, each with population exceeding 500,000 and are growing faster than the average growth rate of cities. This opens up the market for industry players to grow their business in new and emerging smart cities. The infrastructure investment for these cities is forecasted to be $30 trillion to $40 trillion, cumulatively, over the next 20 years. These projections follow along with another report estimating growth in smart cities. Last year, Pike Research said that smart city investment would grow to more than $100 billion by 2020. With so much growth potential it’s no surprise that a large number of companies are quickly looking for their niche in the smart city market.




How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

The smart city reference model is at the leading category, since there are limited number of planning frameworks for smart cities on the market.  A major theme behind the System Dynamics for Smarter Cities is that municipal planning and policy-making is often done very inefficiently.  Discovering the relationships between apparently unrelated systems is a process that takes much longer than it should, as city departments have little communication between themselves.  Usually, a policy that turns out to be harmful is overthrown only after much damage has already been done.



What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

Smart city conceptual framework is a planning demand for urban leaders. The use of this technology allows municipal leaders to gain an integrated view of how their cities’ systems are inextricably linked, to avoid policies that may have unintended negative effects, and to increase efforts on policies that are projected to have positive ancillary results.  In many ways, the system dynamics approach is focused on the same principles as many public engagement strategies: taking deliberate steps to increase knowledge and predict outcomes, in order to build a smarter city.





What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

The current stage of development is at implementation. Smart city conceptual model starts a 3D web application to create very high-resolution solar potential maps of the city. This is required to define new policies or incentive schemas at the city level. The 3D design will actually applied as visual representation of plan policies using the model’s layers.  For every city, in its conventional terms, there are certain operations and processes that must be synchronized toward obtaining a smart city’s vision responding to certain challenges. These challenges refer to the enrichment of a city’s urban planning with smart planning activities and to the type of infrastructure intervention, which are planned to complement smart city actions. Another critical factor is the ability of the city to create an identity for smart priorities, which blend with the city’s plan and innovative outlook. A smart city’s identity must be aligned with regeneration projects, planning to change, and social innovation actions that should be taken to create a socially inclusive smart city vision among citizens and communities.



Strategic partnerships (existing or potential).

Partnerships with organization such as:

The Intelligent Community Forum (http://www.intelligentcommunity.org) is a think tank that studies the economic and social development of the 21st Century community.  Whether in industrialized or developing nations, communities are challenged to create prosperity, stability and cultural meaning in a world where jobs, investment and knowledge increasingly depend on advances in communications.  For the 21st Century community, connectivity is a double-edge sword: threatening established ways of life on the one hand, and offering powerful new tools to build prosperous, inclusive and environmentally sustainable economies on the other.

European smart cities (www.smart-cities.eu/)

Open Knowledge Foundation (http://okfn.org/)

‘Open knowledge’ is any content, information or data that people are free to use, re-use and redistribute — without any legal, technological or social restriction. We detail exactly what openness entails in the Open Knowledge Definition. The main principles are:

Free and open access to the material

Freedom to redistribute the material

Freedom to reuse the material

No restriction of the above based on who someone is (e.g. their nationality) or their field of endeavour (e.g. commercial or non-commercial)



SECTION 3: The Competition


What is the competition within your target market?


Sustainable Cities Collective is an editorially independent, moderated community for leaders of major metropolitan areas, urban planning and sustainability professionals. We look to aggregate content and provide resources for all who work in or are interested in urban planning, sustainable development and urban economics. Looking at issues such as transportation, building practices, community planning & development, education, water, health and infrastructure, we hope to create a community where people can get involved and learn about the advances in how cities are becoming smarter and greener in the 21st century.




What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

The smart city conceptual framework advantage is based on product differentiation.  Smart city planners could use the reference model to define the conceptual layout of a smart city and describe the urban innovation characteristics for each one of the six city layers. As smart cities come in different shapes and sizes, this reference model should be tailored to local urban innovation character integrating all layers of the model. Smart city planners could formulate a six layer planning agenda based on the local features and priorities of a city. Thus, this conceptual smart city planning could be the founding documentation for a smart city master plan.  The reference model as an assembly of various smart city notions can used to evaluate its innovative capacity in identifying complementarities and inconsistencies in smart city master planning. Additionally, the conceptual model could be also utilized to synchronize and optimize city’s investments in green and broadband economies. It also provides a common understanding among smart city stakeholders of investment priorities. The investigation of critical city’s resources that will contribute to its readiness to smart vision is a crucial preliminary planning step. The outcomes of this research could be utilized by smart city planners to prevent unsustainable investments and to build upon the socio-technical complementarities in the smart city course of action.




Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The potential product relate to high price range. The framework imposes major effort reduction in smart city planning and it will attract the large cities.  It contributes to the planning process engaging the city as the founding ground for smart cities. The city layer (0) is consistent with a city’s urban resources, infrastructures, utilities, services, stakeholders and innovation ecosystems including triple helix complexions. The innovative character of these ecosystems could not necessarily fit in to the “smart economy”, until they reach the stage to develop new business models in layer (6) when they capitalize on the resources of layers (1) to (5).  City’s structures, utilities and urban planning, form a terrain as the playfield, where readiness to smart city changes is exercised. Conclusively, the planning agenda for urban innovation ecosystems starts from the city’s readiness to implement smart policies.




Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

Smart city conceptual model operates on a free negotiation market.


SECTION 4: Indicators


Estimated cost of the new products


Expected market volume (potential / maximum number of users)


Expected sales volume


Expected market share of the company (proportion between sales and total company sales in the relevant market)

1 %




Please put X as appropriate.






Added-value potential                   






Size of future market demand






Competitive positioning of the product                 







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