Accompanying Makkah into smart city projects

definition and implementation

Erada Makkah Smart City

22 May 2014
Makkahs ambitions and objectives to become a leading smart
city are achievable thanks to Al Balad Al Ameen and Erada
Makkahs structures
Makkahs ambition is to become one of the top 10 smart cities
A dedicated structure, Erada Makkah aims to reach these goals
in the world

This objective is to be achieved through: Objective: managing the implementation of infrastructures

A flexible and fast strategy of implementation and services
Strong business modelling for returns Act as a project integrator for developing smart city projects
Sustainable and eco-friendly development in Makkah

Al Balad al Ameen is already developing several projects

to help Makkah become a smart city

Alternative housing projects

Two Holy Mosques train project

Page 2 Accompanying Makkah into smart city projects definition and implementation
Key issues
We need to better understand your status and current initiatives

Who is the ultimate authority to supervise the smart city and its implementation
Who will be the ultimate sponsor for the smart city strategy?
Is the relations and responsibilities between influential authorities in Makkah city/region
are well defined
What is the role of Albalad Al Amin and the other companies owned by Makkah municipality
in smart city
In which areas and domains that you would like to be included in smart city al the short
and long terms
Do you have any preference for smart city integrator
Which company is doing the master planning for Makkah
What are the key projects that are planned or started will affect the smart city strategy for the
coming five years

Page 3 Accompanying Makkah into smart city projects definition and implementation
Behavioural, technological and urban changes put digital at the
heart of the issues of the city of tomorrow and create a demand
for smarter cities

Technological evolution Behavioral evolution Urban evolution

NFC mobility
Cloud Smart cars
Transport
Computing
Smart homes Inconsistencies
Documentation between policies and
Climate
Grant of Authority Environmental
4G Fiber optic management
change issues
Social
networks
multi-devices Communication
Smartphones usage

Demand for smarter cities

Page 4 Accompanying Makkah into smart city projects definition and implementation
Cities all around the world are developing innovations to develop
a strong smart city competitive landscape

Seoul
Connected bus stops
to develop public
transports. San Francisco
Development of a
sensor network to
Singapore facilitate car parking.
Centralization of
patients and physicians
medical data to
optimize the quality of Barcelone
healthcare services. Transformation
Smart city
of an abandoned
improvement
neighborhood into an
New York and development
ICT business district.
Opening and
development of public
data to improve the
quality of life. Amsterdam
Creation of
telecommuting centers
Hong Kong to reduce transports.

Integration of eLearning
in school programs to
develop education.

Page 5 Accompanying Makkah into smart city projects definition and implementation
Amongst the nine key topics around smart cities, three are
instrumental and need to placed amongst cities top priorities

1 Transport and mobility 2 Environment and energy efficiency 3 Connected services to inhabitants

Proposing new and intelligent means Improving buildings energy efficiency by Proposing apps and connected devices
of transport using renewable energy and smartgrids to inhabitants to improve quality of life

Transbay transit center is an innovative multimodal The World Trade Center in Barhen uses wind power In Paris, intelligent Bus stations provide information
platform in downtown San Francisco. to supply its buildings. on transport and interactive maps on touch screens.

4 Infrastructure and equipment

5 Administration 6 Security 7 Healthcare

8 Economic development 9 Education

Page 6 Accompanying Makkah into smart city projects definition and implementation
Seoul is acting as a pioneer in smart city development
by implementing an ambitious program since 2004

Seouls smart city development is based on the three smart city With this technology, Seoul aims to become a showcase
axes of smart cities

1 Developing a smart and connected transport system

Contactless ticketing is generalized using RFID
and mobile payment (T-money system)
Development of innovative transport systems: auto sharing

2 Reducing its environmental impact

Limiting the overall energy demand through smart-grids
and smart-building
Developing renewable energy by building solar panels
and promoting green transport

3 Building connected services to its citizens

New Songdo disctrict is a connected built-from-scratch
business area
It is built to provide information to its residents on every
aspects of urban life and business

Page 7 Accompanying Makkah into smart city projects definition and implementation
Whatever the offer, smart city projects involve players from
various environments to fully cover the value proposition

Illustration for energy efficiency

Energy
managemen
t systems
specialists
Energy and
IT/apps facility
services managemen
t
Illustration
for energy
efficiency
Construction
Telecommun and
ication real estate
companies
Electric
material
specialist

Source: EY Non exhaustive

Page 8 Accompanying Makkah into smart city projects definition and implementation
Positioning as a one stop shop integrator is a pertinent
approach to develop smart city projects

The three key stakeholders are coordinated by integrators to facilitate projects

EY (Business Integrator)

Local authority Companies End users

SSII, facility managers

and energy specialists, Citizens, companies
building specialists, real making business in the
Towns, regions, states
estate projects leaders, area, associations,
electric material tourists, pilgrims
builders, etc.

Page 9 Accompanying Makkah into smart city projects definition and implementation
Makkah smart city project and EY value proposition

Involved Stakeholders in the development of Makkah city Challenges

Makkah Municipality Lack of comprehensive master planning

Emirate of Makkah No clear roles and responsibilities among the authorities who are
Supreme committee for Hajj responsible for Makkah development
Local authority Development Authority for Makkah and the holy sites Growth in the number of pilgrims
Ministry of Hajj Accommodation
Ministry of finance
Transportation to from Makkah city and in between the holy sites
Waste management specially during the Hajj
Al Balad Al-Amin Company (specially millions of sacrifices during 83 hours)
Bawabat Makkah Company Lack of control on unauthorized pilgrim during Hajj
Private companies Erada Company Lack of parking areas
(Owned By HMM) Dhyafat Albalad Alameen Company Crowed management
Makkah Train Company for Public Transportation

Currently there is no defined entity to play the role of smart

Integrator city development integrator

Worldwide Strategy and vision Smart City Acquisitions and

Value added PMO
benchmark setting initiatives design partnership
EY value Standards and Guide
proposition lines (for specific areas)

Organization and governance of smart cities projects

Page 10 Accompanying Makkah into smart city projects definition and implementation
Although several cities are implementing innovation in this area,
they have to overcome four main challenges

EY can help you from concept to

implementation

1. Market demand analysis and

benchmark
1 What are the most relevant initiatives for my smart city? Market demand analysis
Source Funding
Clients expectations
Competitor cities positioning
For each of them, what should be the distinctive value
2 proposition in a competitive smart city market worldwide? 2. Strategy and value proposition
design
Building a distinctive value proposition by
segment for Makkah
How can I implement a sustainable business case for these 3. Project implementation design
3 initiatives? For each selected project, determination
of a business case and investment
approach
4. Project management
4 How do I practically put into place these projects? Partnership identification
Financing schemes identification
Projects Portfolio Management

Page 11 Accompanying Makkah into smart city projects definition and implementation
Competition analysis and benchmark/Value proposition design
Observing competition and leveraging on Erada Makkahs assets to build a
sustainable value proposition

Competition analysis and benchmark Value proposition design

Market trends
1 and client
Project
expectations 1
Filter 1: Alignment with
Project customer expectations
2 and Erada Makkah Vision
and Strategy Project
Filter 2:
2 feasibility and stakes Roadmap, detailed design
Project and Implementation
Project.
3 Project

Financial benefit
2
7
Competitive
2 landscape Project Project Project
7
12
worldwide 4

Project Project
12
Project
5
Project
25
Time to market

Erada
Project
3 Makkahs n
assets

Page 12 Accompanying Makkah into smart city projects definition and implementation
Project implementation
Building a business case on selected initiatives to insure profitability
and sustainability of your projects

EY has accompanied the great Paris project from business Building a business case and modelling each projects using
case to the model a clear methodology

Example
Revenues
Costs decomposition
decomposition

Exploitation, Impact on revenues,

maintenance, revenue segments,
development, equipment profitability

Financing model proposition

Public-Private partnerships, external and internal

financing

Business case and business scenario

Page 13 Accompanying Makkah into smart city projects definition and implementation
Project management
Finding the right financing scheme and partners to develop your projects

Seeking for the right partners to implement and manage

Seeking for the right financing scheme for each project
Makkahs projects

Building the right mode of financing according to the Scaling for partners maturity to implement the projects
maturity of the project EY Smart City study enabled us to gain access to a
EY Smart City study in 2014 enabled EY to determine the network of contacts in head of major stakeholders
right sources of financing according to project maturity

4/17/17 4/17/17 4/17/17

4/17/17 4/17/17 4/17/17 4/17/17
4/17/17
4/17/17

4/17/17 4/17/17 4/17/17 4/17/17

4/17/17 4/17/17
4/17/17
4/17/17
4/17/17
4/17/17 4/17/17
4/17/17

4/17/17 4/17 4/17/17 4/17/17 4/17/17

/17

4/17/17 4/17/17
4/17/17 4/17/17

Source: EY Smart City study, 2014

Page 14 Accompanying Makkah into smart city projects definition and implementation
EY has a knowledge lead in Smart city projects, energy and
utilities that will be beneficial to your project

Smart city, smart building, smart home

Smart Cities: from vision to Delivering smart metering projects Smart metering: Transforming
execution in Europe and Asia Africas energy future
Study in partnership with Cap Digital White papers White paper

Energy and utilities

Creating a Creating a customer-centric A different way of doing Benchmarking European power

In Utilities we trust
utility to drive value and profit White paper business: digital in utilities and utility asset Impairments
White paper White paper White paper

Page 15 Accompanying Makkah into smart city projects definition and implementation
For next steps, we suggest to hold a workshop to refine your
vision of Smart City, prioritize the initiatives and develop a high
level program approach
Hold a workshop to refine your vision of Smart City
Understand the key constraints and objectives that Makkah Municipality has
Prioritize the key initiatives from a smart program
Develop the approach with a high level timeline

Page 16 Accompanying Makkah into smart city projects definition and implementation
EY offers an intensive, one-day workshop to identify opportunities
to improve key business processes and determine next steps

Introductions and background Business diagnostic Initiatives and action items

Segment 1 Segment 3 Segment 5

Smart City, defined Functional and detailed analysis Identify/Prioritize opps
Thumbnail sketch of EY Functional processes currently Functional processes affected by
What is Smart City affected by corporate initiatives and corporate initiatives
Terms and segments programs Functional area business gap
Participates and roles identification Functional area business gap detailed mapping
detailed mapping Cross functional area business gap
Cross functional area business gap mapping
:30 mapping Joint vision for closing mapped
Joint vision for closing mapped business gaps
business gaps Identify business benefits associated
with opportunities
1:30 1:00
Segment 2 Segment 4 Segment 6
Business alignment Technology infrastructure Business planning: initiatives
Short and long term strategy, Information technology current List actions items for top 13 ranked
objectives and programs landscape and IT organizational initiatives
Business unit initiatives to implement alignment with businesses Assign Project Manager
corporate objectives Known technology gaps Assign action items to participants
Functional area initiatives and Technology gap mapping
programs
1:00 1:00 1:00

Page 17 Accompanying Makkah into smart city projects definition and implementation
Nicolas Clinckx: Executive Director strategy, marketing
and innovation
Expert in energy and utilities/long experience of energy services/smart offers

Nicolas Clinckx
Executive Director
Tel: +33 1 46 93 59 31
Mobile: +33 6 64 73 56 41
Fax: +33 1 58 47 12 59
Email: nicolas.clinckx@fr.ey.com

Description Main growth agenda projects

Nicolas CLINCKX has a 15-year experience in Strategy and Management
Consulting. At the beginning of his career, he worked for five years for
International divisions of the GDF-Suez Group (Corporate strategy, business
analysis and business planning)
Nicolas has mainly dedicated his time to the Energy and Utilities sectors working
for the main players of the Industry on their Growth strategy and their
transformation programs
For clients such as GDF Suez, Cofely, Dalkia, Bouygues Energies and Services,
Vinci Energies, Veolia Environnement, Lyonnaise des Eaux, Northumbrian Water,
Saur, Veolia Propret, Sodexo, GEPSA, Idex
Main expertise for the energy and utilities
Digital strategy/Smart Building/Smart cities/Smart home
Benchmarking
Commercial due diligence
Services Offer design
Customer relationship and contract renewal strategy
Field force optimization and organization redesign
Asset Management
Energy efficiency
Benchmarking Digital transformation, Digital organization and governance
Digital strategy for a leader of the Gas industry to conquer new clients and
improve loyalty
Energy Management Solution/Smart Building offer design and screening of
Industrial and commercial partners for a leader of the Energy services sector
Design and Implementation of an Integrated Facility Management offer dedicated
to the key accounts of a world leader in Energy and Soft services
Design and implementation of a Customer Relationship reference book for the
200 biggest contracts of a world leader in Energy services and Integrated Facility
management
Renewal and pricing strategy for the major contracts of a world leader in Energy
services
Operations excellence and transformation projects
Asset management and Field force Benchmarking for Infrastructure and
networks (electricity, gas, district heating, water and waste, telecom )
Customer relationship and Operations excellence for a major contract in
Integrated facility Management and Energy services 70 sites in Europe
Customer relationship, Maintenance and Renewal policy and Energy Efficiency
for major energy services contract (Boilers, cogeneration plants, district
heating ... )
Energy efficiency programs for 86 major sites of an energy services leaders
(>20 Mwh each)
Several organization redesign projects for leaders of the Energy and Energy
services sector
Asset management projects for Energy utilities and Networks

Page 18 Accompanying Makkah into smart city projects definition and implementation
Thank you