working together for zurich 2 latest version 2

GSC Group Proposal - December 2015

Working Together for Zurich 2.0°Providing excellent consulting services to help you realise your ambitions.

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Confidentiality°

It is understood and agreed to that the below identified discloser of confidential information may provide certain information that is and must be kept confidential. Wherefore, the parties acknowledge that they have read and understand this Agreement and voluntarily accept the duties and obligations set forth herein.

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Introduction°

Cities like Zurich, tend to attract smart individuals and smart institutions. With an unprecedented era of technological advancement, cities are given new ways to cultivate their brainpower, linking its citizens with the resources the urban area has to offer. With this proposal, we will help you assess your current situation and look at the future by proposing new strategies to improve your services.

So why choose GSK Group to support you in this exciting project?In depth knowledge: We are a full service strategy consultancy firm with one of the largest technology team in the UK. Due to the success of our previous experiences in creating smart-cities services, with cities such as Seoul and Brussels, we are convinced that our knowledge, experience and resources will tell in your favour.

Committed team with relevant skills and expertise: To help you reach the best decisions you will need consultants who understand the industry. We have a dedicated digital and construction team and have been advising clients in the technology and sector for over thirty years. We are confident in being able to provide you with a high quality and reliable service.

Award winning advice: We deliver innovative, proactive and straightforward advice; we keep things simple and tell it like it is. We are great listeners and will work together respecting Zurich’s culture and valued tradition, in order to achieve outstanding results. Together.

Emanuele TedeschiEquity Partner DD +44 (0)161 838 0286M +44 (0)7909 905 632E [email protected]

Yifan GuEquity Partner DD +44 (0)161 518 2256M +44 (0)7989 341 525E [email protected]

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Overview and Trends for Smart Cities°

Towards the end of 2015, our planet achieved two significant achievements. Firstly, the world’s population exceeded for the first time in history the 7 billion benchmark, with 50% of it living in urban areas. According to analysts this trend is expected to increase to 60% before 2025. Looking specifically at the Western side of the globe, 80% of the population lives in urban areas. Development has become so important that it has elevated some cities, such as Zurich, Brussels and Amsterdam, to be even more central than the countries themselves generating more than 40% of the country’s GDP on their own (Forbes, 2014).

ICT is a key enabler for cities to face challenges with a ‘smart’ approach. According to Singh (2014), Smart Cities are those with at least one project addressing one or more of the six aspects displayed in Figure 1.By analyzing several competitors, we noticed key common trends and opportunities which most smart cities seem implementing:City governance is more collaborative and open Research proved that transparent and collaborative governance makes a great contribution to building an innovative smart city. In order to achieve a participatory management model, a city can use tools and techniques such as open infrastructure data, and integrated management structure. Tailored and personalized service

Due to advanced technologies, cities are now able to target citizens individually, observing their behavior and meeting their personal needs. For example, the intelligent transport system used in Los Angeles, processes the data collected by individual sensors to re-plan traffic, and maximize the utilization of roads while avoiding congestion (Fortune, 2014).Public Funding Smart City projects require considerable investments, and financing remains one of the biggest challenges faced in the process of city construction. Despite some smart cities are funded by the government and some are sponsored by private investors, the most common financial instruments include public-private partnerships, green bonds, tax increment, crowd-funding and private investment (SmartFuture, 2015).

Smart Cities are those who manage their resources efficiently. Traffic, public services and disaster response should be operated intelligently in order to minimize costs, reduce carbon emissions and increase performance.

Eduardo Pares, 2014

Image 1. Smart Cities Trends (Forbes, 2015)

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Pestle Analysis°Table.1: Pest Analysis for Smart Cities (adapted from the Pestle framework taken from Wilson & Greg (2005)

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Key Challenges and Opportunities°

Following our situational analysis, we found three opportunities, which we believe are particularly challenging and exciting.Direct political system: The unique political system that distinguishes Switzerland from the rest of European countries is an opportunity that should be increasingly exploited. Switzerland is the closest state in the world to a direct democracy and for any law or constitution amendments, a referendum is required giving citizens a direct say (adminswiss, 2015).

The political system is divided into layers: Federal, Cantonal and Communal. This factor, allows every council to have legislative independence on most matters. GSC Group believes that this unique feature could bring several benefits to Zurich, if incorporated with modern ITC knowledge, which we certainly possess.

Smart Healthcare:Switzerland is an incredibly well ran country, with numerous strengths to count on and opportunities to exploit.However, following our situational analysis, we noticed that its healthcare system is rather conventional and outdated compared to rival smart cities such as Los Angeles and London.

A report from the World Health Organisation (2015), analyses the main faults in Swiss’ Healthcare system, finding that poor resource management and lack of technologically advance machineries might damage the service in the long term.In 2013, GSC Group worked closely with Stockholm to improve its healthcare system, implementing the latest trends and innovations technology had to offer. Due to our knowledge, we will be able to create a strategy to improve the efficiency of the sector and guide you through the implementation process.

Vertical Farming: Following our Situational Analysis, we noticed that Zurich’s agricultural sector is facing several issues, such as highly infected products, poor resource management, lack of usable land and poor weather conditions. Implementing a revolutionary Vertical Farming process will be the solution

A dedicated team led by our Partner Natasha Radia, expert in Agriculture and Real Estate will advise you on how to create and implement a sustainable vertical farming system within the city of Zurich, able to last in the long term.

63%Legislative proposals by Citizens in Zurich have been approved since 2015.

BusinessInsider, 2014

82%Citizens in Zurich claimed that pesticide-free products are the main requisites when shopping.

BusinessInsider, 2014

Mengdi TangPartnerDD +44 (0)161 521 4328M +44 (0)2214 802 4366E m.tang@[email protected]

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uSay App Proposal°

Switzerland’s political system provides a unique opportunity for Zurich to attract its citizens to the canton’s policies, enabling them to feel part of a unique body, together with their council.Our team of experts, led by Evelyn Shi has invaluable technological skills and will assist you in the creation and implementation of a new platform: uSay.

Why?As mentioned in our PEST analysis, each of Switzerland cantons has complete legislative proposal autonomy. Zurich requires 15,000 citizens to recommend a new legislative plan for the council to consider it. GSC Group found an opportunity to connect politicians to citizens, eliminating the usual barriers that divide individuals from administrative parties.

USay App, will give citizens the possibility to promote their legislative proposal, enabling each App member to vote for the ones that best match their beliefs. Once a proposal reaches the 15,000 votes needed, the system will automatically transfer the proposal to the Council’s board for it to be considered.

How? According to our analysts, uSay App will have an all-inclusive cost of 18,400 CHF including costs of outsourcing the creation of the app, software and Internet connectivity (Ict4, 2014). GSC Group intends to outsource the creation of the App to Tatkil, an established digital company in Zurich, due to our familiarity with their way of operating.As you can see from the table below, we expect uSay to be complete and running in 12 months, forecasting the creation of at least 24 formal legislative proposals in the first year.

Who?TIMING PROJECT DESCRIPTION

1st month Creation of the urSay App

2nd and 3rd month

Testing of the App and various improvements.

3rd month onwards

Formal Operation;Target: ≥24 legislative proposals each year Tar year

We were unable to find identical projects to uSay, probably due to the unique political system in Switzerland. However, in 2013 an entrepreneur created Stuttgart eGovernment, which allowed citizens to communicate directly with the council, in order to stay up to date with the latest trends (STG, 2013). Similarly, the App was created by third parties and was lunched within 3 months from its creation.

Table 2. uSay Implementation

Image 2. Mobile Technology

0.6Average of time each citizens should use uSay App in order to achieve the target of 24 legislative proposal per year.

Evelyn Shi Head of Technology DD +44 (0)161 838 0286M +44 (0)7909 905 632E e.shi@[email protected]

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3D Printing Proposal°

Following our situational analysis, we observed that Zurich’s healthcare system is inclined to face several threats in future due to the lack of technological machineries and processes. Mengfan Sun, Head of the Healthcare sector with more than 12 years of experience, will assist you through the implementation of a revolutionary medical procedure: 3D Printing.

Why?3D Printing is an innovative technique that combines healthcare and technology, which aims at building 3D objects in almost any shape imaginable. 3D printing will provide doctors with a chance to practice future surgeries in advance, in order for them to get familiar with the operation. In turn, this would increase the success rate of surgeries, time and management efficiency and would allow doctors to deliver a more personalized service to patients, depending on their individual problems.

Lastly, 3D Printing could improve the resource management of hospitals by generating a zero-wastage rate by defining accurately where the damaged part is and designing a 3D solution within 6 hours (Appendix 1).

How? GSC Group designed a 3 years strategy and implementation plan, initially selecting 15 hospitals which will run as testers. This proposal will generate a ROI and will bring uncountable benefits to Zurich’s healthcare structure and citizen overall wellbeing.We chose the hospitals, considering factors such as reputation, international influence and technological advancement.

Operation Price Quantity Investment

Cost of 3D printer CHF 1,000 15 hospitals with

10 for eachCHF 150,000

Maintenance fees CHF 100,500

3 years planTotal investment

CHF 301,500

Consulting services fees CHF 100,000 - CHF 100,000

Total investment - CHF 551,500

Each printer will cost CHF 1,000, and we expect to place 10 of them in each hospital. Maintenance fees will cost CHF 670 per year for each machine, for a total investment of CHF 551,500.As part of the total costs, GSC’s Group consulting fees have also been included. Please find more details in section 4.

Mengfan SunHead of Healthcare DD +44 (0)161 756 5261M +44 (0)8998 7852 231E m.sun@[email protected]




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Operation Saving Total over 3 years time

Saving with organs

Pancreas CHF 61,832 p/y CHF 185,496

Liver CHF 47,428 p/y CHF 142,284

Colorectal CHF 47,390 p/y CHF 142,170

Resource Management CHF 150,000 annually CHF 450,000

Employee Management CHF 1,500,000 annually CHF 4,500,000

Total Returns CHF 5,419,950

ROI however can be achieved in several ways. Firstly, by reducing the frequent purchase of organs such as Liver and Pancreas, patients will be expected to save approximately CHF 156,650 annually (Swisstransplant, 2015).

Furthermore, 3D Printing will allow hospital to generate savings by using traditional machineries more effectively. By doing so, we predict that each hospital will generate CHF 10,000 savings per year.Lastly, with 3D Printing we expect fewer assistants to be needed throughout the surgery process. It is assumed that if each hospital reduces 10 assistants, with Swiss’ average wage of CHF 10,000 per year, will generate annual savings of CHF 100,000.

ROI:

Breakeven point:

Who?3D Printing is still an unknown practice in Europe, whilst in USA is commonly used and have already had several cases of successful surgeries, using 3D technology.

In 2014, King’s College Hospital in London revolutionized one of its departments by acquiring and implementing 3D machineries. The chief of the hospital stated that the advantages in the long term justified the high initial investment. He also claimed that the use of 3D printing in medicine will revolutionize the field introducing benefits for all patients (Kcl, 2015).

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Vertical Farming Proposal°Vertical Farming, is the unique solution introduced by GSC Group which involves multi-story buildings, known as ‘farmscrapers’, that use either artificial or natural light to grow crops using less land while being in close proximity to consumers who live in the city. The team will be led Natasha Radia, our Senior Partner specialized in Agriculture and Real Estate which successfully contributed to similar projects in Uganda and Netherlands.

Why?Given that an estimated 70% of the world’s population will live in cities by 2050, sustainable urbanization has become a key challenge that Zurich needs to address (ITU, 2015). Agriculture in Zurich is going through one of the hardest times in its history due to increasing costs in the industry and international exports. Moreover, the farmland is not abundant and due to not optimal temperatures in winter, a high percentage of crops are lost every year (Bevington, 2014).

Zurich has formulated the vision to develop towards a sustainable city-region and become a “2000-Watt-Society” by 2025 (Alcatel-Lucent, 2013). The aim is to reduce the energy consumption, reduce CO2 emissions, and to support renewable energy sources (Alcatel-Lucent, 2013), objectives that Vertical Farming promotes.

How?GSC Group intends to run a 3 years implementation Vertical Farming strategy. In order to introduce this revolutionary technique into Zurich, we plan to convert one of the largest buildings into a 5 story vertical farm in order to test processes and evaluate results.

Operation Price Quantity InvestmentBuilding CHF 7,500,000 CHF 1500 per m2 CHF 7,500,000Irrigation Systems CHF 2,000 5 CHF 10,000

LED Lights CHF 20 300 CHF 6,000Technical Costs CHF 100,000 CHF 100,000Consultancy Fee 100,000 3 Years CHF 300,000Total3 Years Investment

CHF 7,916,000

Through vertical farming, Zurich’s citizens will have the opportunity to be highly involved in the production of their own food, increasing their awareness of where the food actually comes from and the processes involved. While it is capital intensive to set up a vertical farm, advances in the efficiency of LED lighting have reduced energy requirements. Phillips Lighting Company has developed 68% efficient LED lights, which lowers the energy costs, and produces less heat to better control the indoor climate (Bevington, 2014).

Natasha RadiaSenior PartnerDD +44 (0)161 498 5192M +44 (0)7234 9981 723E n.radia@[email protected]

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As displayed above, this proposal is socially as well

as financially viable and will generate remarkable savings through years. It is

also apparent how Vertical Farming will bring benefits

to the lands surrounding the city, by re- using the space for other

purposes benefiting the community.

The figure regarding savings on Labour was generated by a

report on SCH(2015), which showed how Swiss’ farmers

are amongst the most paid ones in Europe, with an average salary of CHF 30,000 per year.

ROI:

80%World’s land that is suitable for raising crops is in use

15%of land has been wasted by poor management practices.

Prof. Dickinson Despemmier (2015)

Tobi IbidapoPartnerDD +44 (0)161 544 9891M +44 (0)7134 912 453E t.ibidapo@[email protected]

Operation Traditional Vertical Savings Total ReturnsLand Space 5000 m2 1000 m2 4000m2 land CHF 3,500,000Water 1125 m3 56.250 m3 1068.75 m3 CHF 5,472

Labour 30 10 20 people CHF 600,000TotalReturns per Year

CHF 4,105,472

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Breakeven Point: Who?In Manchester, a group of entrepreneurs successfully converted a derelict building into a vertical farm in 2014 (Burrus, 2014). The way this project was implemented, led GSC Group to appreciate the concept of Vertical Farming and more in the specific, space management within a city. The vertical farm in Manchester generated an increasing interest around its project and after one year, already started making a profit.

We will use Manchester’s project as a benchmark to evaluate our proposals and justify our costs and expenses in order to give you the most efficient and reliable advice.

Our Fees°

uSay App Proposal – 1 Year Time Task Fixed Fee

1st month Liaising with Tatkil, in order to create the App;

Conduct a testing session before launching the App;

CHF 12,0002nd month onwards

Run monthly evaluation of results;

Use our expertise to advise how to best meet their target.

Total CHF 12,000

3D Printing Proposal – 3 Years

Your Team°1 Director

1 Partner

2 Senior Managers

2 Associate Consultants


2 Partners

4 Senior Managers

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Vertical Farming Proposal – 3 Years Time Task Fixed Fee

1st Year Select chosen building in Zurich;

Advise the Council on how to start a Vertical Farming business;

Evaluate results after implementation

CHF 100,000

CHF 65,0002nd Year Improve business model

by benchmarking it to previous projects;

Look at expanding the project to more buildings;

3rd Year Provide meetings every month analyzing results and processes.

CHF 35,000


4 Partners

5 Senior Managers

5 Managers

4 Senior Consultants

2 Associate Consultants


2 Partners

4 Senior Managers

Time Task Fixed Fee

1st Year Selecting 15 target hospitals;

Advise through machines purchasing process;

Support through the implementation of machines;

Run weekly updates with each hospital

CHF 75,000

CHF 15,000

2nd Year Run monthly meeting with each hospital analyzing the success of the innovation.

Provide strategic solutions in case of unpredicted issues.

3rd Year Provide meetings every three months analyzing implementations;

CHF 10,000

Total CHF 100,000

Total CHF 200,000

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Bibliography°Amsterdam Smart City,. 'Sustainable Amsterdam'. N.p., 2015. Web. 27 Nov. 2015.

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2015.

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Dec. 2015.

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Down'. The Huffington Post. N.p., 2015. Web. 31 Nov. 2015.

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2015. Web. 29 Nov. 2015.

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Review | Empowering Communications Globally'. N.p., 2015. Web. 1 Dec. 2015.

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Geiser, Urs, and Jeannie Bern. 'Swiss Political System - SWI Swissinfo.Ch'. SWI swissinfo.ch. N.p., 2011. Web.

26 Nov. 2015.

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Salomon, Bartol. '12 Things We Can 3D Print In Medicine - 3D Printing Industry'. 3D Printing Industry. N.p.,

2015. Web. 1 Dec. 2015.

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Siemens,. 'Smart Cities: Trends'. N.p., 2015. Web. 27 Nov. 2015.

Smart Cities Council,. 'Cities Hack Their Way To Livability Gains'. N.p., 2015. Web. 1 Dec. 2015.

The Economic Times,. 'Could Mobile Apps Be E-Governance Game Changers'. N.p., 2015. Web. 1 Nov. 2015.

The Economist,. 'Vertical Farming: Does It Really Stack Up?'. N.p., 2015. Web. 2 Dec. 2015.

The Guardian,. 'Vertical Farming Explained: How Cities Could Be Food Producers Of The Future'. N.p., 2015.

Web. 31 Nov. 2015.

Tradingeconomics,. 'Switzerland GDP Growth Rate'. N.p., 2015. Web. 5 Dec. 2015.

Wainwright, Oliver. 'The First 3D-Printed Pill Opens Up A World Of Downloadable Medicine'. the Guardian. N.p.,

2015. Web. 30 Nov. 2015.

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2015. Web. 1 Dec. 2015.

Wyle, Ferdinand. 'How Are These External Factors Affecting Our Retirement Benefits In Switzerland?'. Towers

Watson. N.p., 2015. Web. 2 Dec. 2015.

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Appendix°

Appendix 1 - Stuttgart Egovernance App

Appendix 2 – 3D Printing Process

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Appendix 3 – 3D Printing Machineries

Appendix 4 – Vertical Farming

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Appendix 5 – Vertical Farming Abstract Plan in Zurich

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