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Cultivating Smartups with Cities as Platforms

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CULTIVATING SMARTUPS Outi Kuittinen 21 Oct 2015
 Head of Smart Retro Programme & Head of Co-creation outi.kuittinen@demoshelsinki.fi +358 50 326 5582
 @outikookoo @demoshelsinki #smartups #smartretro #peloton


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The Story of Demos Helsinki In 2005 we realised that nobody is looking what megatrends actually mean when they hit our everyday life and business. We founded a think tank to do precisely that – to bridge the gap between understanding the future and making it happen. Demos Helsinki is a Nordic think tank focusing on Resource Smart Economy & Sustainable lifestyles and Democracy & Capabilities of the 21st Century. We combine foresight with co-creation to make change happen. Organisations come to us looking for new ideas, new concepts, and strategic change when old solutions are no longer working. What makes our work stand out is our broad expertise in futures studies and open innovation methods. In 10 years we have grown into an innovation, research and business acceleration powerhouse. We have successfully worked with hundreds of companies, startups, governments, municipalities, universities and NGOs globally in creating a better future. We are politically independent and project-funded. We believe in people, openness and democracy.


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CLOSE YOUR EYES. THINK ABOUT YOUR EVERYDAY LIFE IN 2000. WHAT HAS CHANGED THE MOST WITHIN THE LAST DECADE?


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CONNECTION


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THINK IF A CHANGE OF THE SAME MAGNITUDE AND INTENSITY 
 WOULD HAPPEN IN THE ENVIRONMENT YOU LIVE IN, THE CITIES.


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WHAT HAS CHANGED IN THE CITIES 
 IN THE PAST 50 YEARS? Masdar City smart city project, Abu Dhabi


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Ongelma: lähiökuvat WHAT HAS CHANGED IN THE CITIES 
 IN THE PAST 50 YEARS?


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Ongelma: lähiökuvat THE CHANGE IS COMING


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LET ME INTRODUCE THE CHANGE MAKERS, THE SMARTUPS


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DRIVERS OF CHANGE RESOURCE SCARCITY DIGITALISATION USER-FOCUS


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THE SCARCITY OF NATURAL RESOURCES IS THE NEW FUEL FOR STARTUPS


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A SMARTUP = A start up developing smart services, which help free us from inefficient use of resources. They are consumer cleantech.


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ENERGY CONSUMPTION PER HOUSEHOLD housing 30% 25% 15% 30% + food + mobility = 70%


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MONTHLY HOUSEHOLD EXPENDITURE 800€ 678 600€ 400€ 30% 329 251 678 € 25% 15% 200€ 49 + 329 € + 251 € = 1260€ / month Telecommunication is used as a reference point.


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SMART UP TRENDS Increasing the utilization rate of physical resources by sharing. OP T R AL LA EC IS CU AT IO N CIR Upcycling and refurbishment in the core: Improving physical assets by implementing energy efficiency solutions for homes as well as various other circular economy applications. IM ION AT IS SH AR I NG ON OM Y IM AT M RI E Optimizing the use of physical inputs through the use of smart home, metering and gasification applications. Smart substitution to replace resourceintensive practices.


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Fro m Opt Finland iWa : tti, Ku t Nat suP urv En lus ent ev ,M ion, obi o, Sal GoP Loa usfi ilot dbr n, E , Cl ner o, A ean gyU nto p, T Wa n& her ter e Co An Ma ton ppi rpo ra t i , Fr ng, on esg Asm o, B oCh lok a rg fo o er d n atio me ge na ma y e rg Ag o, lut ri ion Cha , Fer s, ro a p, m een Gr rg y ne c ke po t o ra S Ma t, g we pd Eth e, a, I er 20, A a rc E n a, 7 , Viv Sw Citize apacity we r i ke a d i , C Opo B tty, d uai i, Wa K les ke j hic aoju e Xi tv ar sm g panies: tin Big com ro u , RYM Oy, art sens, BaseN IoT sm nt tom e au en turnk hom a ed b ne un ro s ON TI SA ey s o lutio ns OP TI M I th d wo e rld ho ng g, n G ro en w opti ed ation mis att l, W l 2 e, O im Gat ce dgo an nU pe ay, ew lity ti olin Co nno gI NAME: Enevo FIELD: mobility KEY FEATURES IN BIZ MODEL: Smart routing and need based optimisation FROM: Finland WHAT do they do: Smart waste collection


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Fro m Opt Finland iWa : tti, Ku t Nat suP urv Ene lus ent vo , ,M ion, obi Loa Sal GoP usfi dbr ilot n, E o, A , Cl ner nto ean gyU n& p, T Wa ter An he ton Ma re ppi , Fr Co ng, rpo esg Asm o, B rat oCh ion lok a rg fo o er d on m an ag em en t ati tom au gy en er ho me ke y turn n tio u Cha , G re p, poc en et , k apd M , Et ge we , e ra h I Gat ce dgo am t o ra nd Agril n OP yS r ro , 2a ou o, g TI A r a rc , Fe 720 ner M E ens I iva, ity w S itiz er, V pac pow ke C d i , C a Bi da ty, O ai Wat Ku u k e j i , les ic iaoj eh X rt v ma s g panies: utin Big com r t ro a N, RYM Oy, sm Tsens, Base Io ON TI SA solu tion s ew th rld o gh n g, on G ro en w ime att l, W l ed bas ne e isatio m d opti n e pen ,O t tili U ool y, C wa y Inn ing o NAME: Fourdeg FIELD: housing KEY FEATURES IN BIZ MODEL: home automation, energy management FROM: Finland WHAT do they do: Smart heating control system, which use data to optimise heating and produce data for housing company or utility company.


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Fro m F i nland: f ing to re d i e OurNe fo turn nts ighbo wn key urhoo Ka u p solu d, Cub er paha tion icasa, sh lli24 Hea s Masar ip , Fins dste , Soln ne ect , d , YO et , Sa ed Amb vo S o l U, M s ro n i t ar, Vir eedo A ro e, Oa tuaali c, Em und tkitc assist G re hen, otio entti Digit enE the w n Tr Wa al Fo orld a c ke ner odie, lkI r, Ca get t, W Re p a t a ly ic, ck, T ze Im eS Sun uup ha pact Ru re S , Mic n, Q ola ro t a ixx r, C sk it , ro w Xyl oph dP ow ane erP , Bi lan tty , Be t, G yo n re e dM nG oE eat ne rg y ,W ash It ion o ac em en subs titut p ro d u pl re erm V, T a op n sO el a lt y, V yd r H ava ell oc , , Va lo oti M , taa n , Oi va s, M a o En n gia er H lon lt o a s, E ve n oup Gr rbe ne r R en, Fo arp S l He Spa ty, ICC, aBit ili ig ork xt , , Nu W t ob ett IM nlu re s , Go M M re e yFo ee s, R iosk G AT M lark ra u n d , ts, o ER O nl t, S duc f I ra t P ro s Ri G culu igh Br um, O ons B n io t anies y i ca comp / Alipa pl Big k libaba ap ia, A tion o n C re e a pt tu ne bsti ST 1 , G s / Ham u te ce s no , Bill Ga s i ur ll este Oil y so N a n e rg l ON TI SA LI A ct inn ovatio n tum ,E e ro n ,E n ns G o, t as m, u ea Ik So r, C la ve a ion r i ra F e a of anim nt l a c e m e i n s o u rc e s re p p ro t e 500 e, o re m NAME: Tuup FIELD: mobility KEY FEATURES IN BIZ MODEL: replacement of ownership needs, all in one application FROM: Finland WHAT do they do: Gathers all services for mobility under one platform, all in one solution for mobility


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Fro m F i nland: f ing lac turn re d i e OurNe em ke nts ighbo en ys urhoo to olu Ka u p d, Cub fo tio paha wn icasa, ns lli24 e rs Hea Masar , Fins hip dste , Sol ect , d , YO net, ne Amb ed S a vo S U, M ro n i t s olar, V eedo A ro e, Oa irtuaa c, Em und tkitc liassis G re hen, otio the tentti Digit enE n Tr wo Wa al Fo a c ke ner rld odie, lkI r, Ca t , W getic Re p a t a ly ck, T , Su ze Im eS uup ha nR pact re S un, , Mic ola Qix ro t a r, C xit sk , Xy ro w lop dP han ow e, B erP itty lan , Be t, G yo n re e dM nG oE eat ne rg y ,W ash It ion o titut p ro d u re p subs ene erm V, T a op n els O a lt y, V yd r H ava ell oc , e , Va lo oti M , taa n a, O v s, M pa En n rg i e onH il es, ov a o a lt n b ner E oup Gr e r R en, Fo aar , ,S el C H Sp ty aBit ili ig IC ork xt , , Nu t ob ett IM GoW nlu re s , M M re e osk yFo ee s, R i AT a d, G cts, M lark ER Or nlun , So u I ra t P ro d u s R i f t G l igh Ocu Br um, ons B on ti ica l anies omp Alipay app / ne Big c baba k o li t o n C re e aia, A l in tion p al ST 1 , G titu es / Ham s at s, Bill G sub il Neste O rce ou l ON TI SA LI A ct inn ovatio n tum ,E ne n, ro ns E ,G to as m, u a ke I So , lar v Ca ion r i ra F s rg y a of anim nt l a c e m e i n s o u rc e s re p p ro t e 500 e, o re m NAME: Solnet FIELD: housing KEY FEATURES IN BIZ MODEL: energy source substitution, turnkey solutions FROM: Finland WHAT do they do: Turnkey renewable energy solutions and energy management applications that allow for prosumerism


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a ny eaw ay, Hu ola la, ng Lan es Flo ce erv vin ett p ro r, B ng da do oli ,U e, ha es ia Tuj ffic ,S p, Bla om Ho bit wa nB, ,H sk, ra b ,S AirB me rTa sk os u, Po m kFo A rg e r digital s nd: tfo Fro m F i n l a on pla innovati a ce o tpl tteliAut ing r ke gy, Kor hik a ma iggyBag itch kkatil p2p enuu, P -h ts, Hu smaa, V ng ser rs , A n ari t , Yhtei a t a ly nRide esh A s k a re e ity C , G re e rid mun eegos ld: Com ma, W wor ocal Ku i n O the ite ffa, L tribe, i, Kli S h a re und eryb ce Ky y t A ro ,V lub, Coffi ork zhu Car C da, t W er iao , City p a n ox a a s k t, X plan Ly f Colla Cam , B Airt er, es, che ny, mb a ng Rid , Ni lay Car mp , Yo Bla , Re Niu V co Xi ber /E Aiy me As ifi, a y, T iW arl BiT eB Za t, J ati aa no ,e Mi ding ms c ro w d f u n rvice o, lity , Pa W u n Go, rki d Avis n g e rc a / Zip H ya t Pa n r car, t Ho da Big NG WH tels com otel / On eFin eSta s / Des panie ca ks N s: y, Da rs h earM imle Citi G ari ng r/C ro u p e so ar2G / N yc cia o B i ke B a rc l a lc shari ys / Sa oo Cemex / ng ntande kin Pa t r i m o n co-c r Cyc l e g io Hoy, P re a t i s eugeot / on p l a t fo Mu Mobi rm lity Ford 2 SH AR I NAME: Verybite FIELD: Food KEY FEATURES IN BIZ MODEL: Social cooking, P2P marketplace platform, crowdfunding FROM: China WHAT do they do: P2P marketplace for homemade food and delivery service Po m VERYBITE


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§


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Food


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Home as-a-service operators Mobility as-a-service operators SMART BUILDING SMART MOBILITY


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Turnkey energy production services for households Crowdfunding energy projects Mobility as-a-service operators SMART MOBILITY Resource sharing platforms Consumer goods sharing platforms Digital microwork platforms p2p task sharing Locally sourced assistants for: Grocery deliveries Cleaning Handyman Space sharing p2p home rentals Workspace sharing Home as-a-service operators SMART BUILDING Automated energy management systems Smart home devices Optimization and control of consumer electronics


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Multimodal transportation services Personal travel planners Smart payment systems Smart parking Mobility as-a-service operators Telecommuting E-Health E-learning E-government SMART MOBILITY Fleet & ride sharing Car sharing Free-floating vehicle services Bicycle sharing p2p car rentals Crowdsourced logistics Connected vehicles Real-time traffic management Smart routing


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SMART CITY IS A SERVICE Turnkey energy production services for households Crowdfunding energy projects Resource sharing platforms Consumer goods sharing platforms Digital microwork platforms p2p task sharing Locally sourced assistants for: Grocery deliveries Cleaning Handyman Space sharing p2p home rentals Workspace sharing Multimodal transportation services Personal travel planners Smart payment systems Smart parking Home as-a-service operators Mobility as-a-service operators SMART BUILDING Telecommuting E-Health E-learning E-government SMART MOBILITY Fleet & ride sharing Car sharing Free-floating vehicle services Bicycle sharing p2p car rentals Crowdsourced logistics Automated energy management systems Smart home devices Optimization and control of consumer electronics Connected vehicles Real-time traffic management Smart routing


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SMARTUPS CAN MAKE
 SMART CITIES & SUSTAINABLE LIFESTYLES TRUE 
 – ONLY IF THEY MAKE IT TO THE CITIES, 
 TO THE URBAN LIFE


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CULTIVATING SMARTUPS FACILITATE ACCESS TO MARKETS BUILD ECOSYSTEMS PROVIDE ACCESS TO CAPITAL


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 PELOTON CLUB ‣ A community and an accelerator for cleantech smartups since 2011 ‣ 500+ enthusiasts, both startups, corporates and experts ‣ 50 start up teams with smart services from transport of goods to street food and sharing platforms ‣ Peloton Club Nights, changing themes in collaboration with a partner,
 open for everybody, 
 every month in Putte’s bar & pizzeria ‣ 6 month Peloton Acceleration programs for selected teams


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CULTIVATING SMARTUPS WITH CITIES AS A PLATFORM FACILITATE ACCESS TO MARKETS BUILD ECOSYSTEMS PROVIDE ACCESS TO CAPITAL


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BAGARMOSSEN, STOCKHOLM 1 2 4 3 5


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Find the need Scale up & Continue SMART 
 RETRO PROGRAM Test the new services and collaboration in real life with real users Find the new innovators Match & co-create between established & new players to develop business models & services. 
 Get strategic support from the city.


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FIND THE NEED There is no lack of need of finding a new way in our cities. Renovation dept Resource-scarcity 
 & Climate Change Distruption of retail Smart solutions Human scale 
 & live city


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FIND THE NEED It’s not just the municipality.


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FIND THE NEW INNOVATORS You need smartups, local entrepreneurs, placemakers to make a smart, sustainable, attractive city. r material s are called t services erience, me time gy and RETROFITTING SMARTUPS URBAN INFILL Geolocating Smart home Community gaming Property management Repair services Pop up restaurants Street food Crowd funding Urban farming Sharing economy PLACEMAKING Ride sharing Metering Low-carbon food Smart offices Shared spaces Home energy Home delivery Mobility services


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MATCH & CO-CREATE at innovation camps and workshops to develop the service concepts and business models and to find matches between cities, big companies and startups. 
 Encourage fast cooperation and real-life test experiments together. • Peloton Smart Retro Innovation Camps in Lahti & Stockholm • The ecosystem: • cities • corporates • startups • local entrepreneurs • expert mentors • community leaders
 = 60 participants/camp


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TEST IN REAL LIFE, WITH REAL USERS to find out what works and not both in the service and in the partnership. 
 And to get valuable first users & credibility to accelerate access to markets. 10 tests in 6 months! • K-Citymarket, Kesko & PiggyBaggy: Peer-to-peer delivery of online • • • • • • • • • grocery orders K-Citymarket, PiggyBaggy & SIIRI of City of Lahti: orders by phone and peer delivery for elderly City of Lahti, PiggyBaggy & local entrepreneurs: 24/7 Smart Container pick-up point City of Lahti & CityCarClub: interest and needs of residents for car sharing services City of Lahti & Yhteismaa: Nappi Naapuri (‘Nifty Neighbour’) online platform as a new tool for Lahti’s volunteer neighbourhood contact persons Nurmi Clothing: Nurmi Clothing Library Stockholmshem, Bonne Mécanique & Gamla Enskeda Lådcycklar: Cycling service point Stockholmshem & Generation Ungdom: Offering Generation Ungdom’s service of small household help by unemployed youth to Stockholmhem’s residents Remarket: Recruiting sellers to Remarket peer-to-peer 2nd hand clothes retail platform Represent: First questions, comments & voting round on Represent platform


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100 drivers! “I had two goals for cooperation: to learn and get to know to new people and to influnece in the future of Lahti, and thus mys own future. Both goals have been met. As a result of Smart Retro collaboration, in my Citymarket we tested home deliveries of online orders with peer to peer delivery service 
 Piggy Baggy. The cooperation has been amazingly inspiring and instructive. I have learnt that ideas should be tested quickly. I have met many kinds of actors of the area and I think we might do something together in the future. 
 I encourage companies to participate in similar programds. To find a better future requires looking around the corner. Marko Laaksonen, shop keeper, 
 K-Citymarket Paavola, Lahti 43 % of orders!


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City of Lahti exp “It’s been more work than I thought! 
 To execute experiments, we have looked for internal partners from city organisation and applied for funding. What thus interests me now is: 
 how can a city be a better platform for developing new smart services and business?” CityCarClub PiggyBaggy Nifty Neighbour erimented with Saara Vauramo, development manager, City of Lahti, Finland


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CULTIVATING SMARTUPS AND BETTER CITIES 1 We need applications for more comfortable, stustainable and interesting everyday life. MODEL FOR DIGITAL ERA SMART URBAN 3 Develop business models and co-design services with a diverse ecosystem. 
 RENEWAL model & ”The City Pays” is not the only business 2 Cities are great platforms and markets 
 for applications to develop. But we need to 
 be the best in partnering up, one city is too small. cities not only ones in need. Citizens are part, too! THE PREVIOUS PAGES have described new, par- 4 Have both a far-reaching vision to find your tially still experimental ways in which cities, way & get everybody moving in that direction,
 different types of real estates developers and and rapid experiments to develop solutions and owners, and startups of new smart services (‘smartups’)thecontribute to and succeed in make can change happen now. the renewal of cities. The prerequisites for all this include deeper 5 Have intermediaries to bring actors together, partnerships between different stakeholders, to open doors & remove obstacles, to facilitate and better tools for co-creation to structure co-creation & partnerships and tell the big story. these partnerships. These co-creative activities have cut across the traditional division of labour ING LANN N&P CO-DESIGN ISIO LOPMENT & V EVE ESS D USIN B REVITALISATION IMENTS & R EXPE CITY OFFICER REAL ESTATE LOCAL POLITICIANS STARTUPS RETAIL CITIZENS PARTICIPATORY VISION BUILDING ACTIVE NNING A COMMUNICATION & PL -DESIGN TEST FEEDBACK N T & CO ISIO VELOPMEN V DE USER INTERVIEWS INESS BUS CO-CREATION ITALISATION IMENTS & REV WORKSHOPS & CAMP EXPER POP-UPS EVENTS ACTIVE COMMUNICATION TEMPORARY USES TEST AND EXPERIMENTS B2B MENTORI INCUBATOR & ACCELERATOR PROGRAMS Figure X. The image above shows the different activities needed in the development of flourishing tain their position in the market without ferents scales. The me


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XT NE TAFT OU DR TH! ON M NORDIC CITIES BEYOND DIGITAL DISRUPTION – SMART RETRO FUTURES REPORT


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Thanks for listening. We’d love to talk more with you: 
 Outi Kuittinen, Demos Helsinki outi.kuittinen@demoshelsinki.fi, +358 50 326 82, @outikookoo www.demoshelsinki.fi smartretro.demoshelsinki.fi This presentation you’ll find in: slideshare.net/demoshelsinki You can also read more: Smart up Manifesto www.demoshelsinki.fi/en/julkaisut/smartupmanifesto Cleantech takes over consumer markets www.demoshelsinki.fi/en/ julkaisut/cleantech-takes-over-consumer-markets Nordic Cities beyond Digital Distruption – Smart Retro Futures Report FORTHCOMING! Give me your card to be the first to receive it! 



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