Describes a live case used in the third year of the Industrial Economics program at Chalmers University of Technology in Gothenburg, Sweden. The focus is on Smart Cities, open data, and digital innovation.

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Jan 27, 2020
The Gothenburg Smart City Challenge
Digital Transformation for a Sustainable Future
IKA097 - Winter 20201
Professor Robin Teigland, robin.teigland@chalmers.se, @robinteigland
PhD Student Ida Heathcote-Fumador
PhD Student Adrian Bumann
PhD Student Maria Kandaurova
Chalmers University of Technology
Gothenburg, Sweden
Introduction
As part of the IKA097 course, we are collaborating with the City of Gothenburg on The
Gothenburg Smart City Challenge. In self-assigned teams of maximum six people, you are to
conceive of and pitch a digital innovation to help the City of Gothenburg pursue its vision of
becoming a Smart City as well as a circular and sustainable one. Please note that your
Challenge work will be very important for both city residents and the City of Gothenburg in
their future work!
1 This courseis for third year students in the MSc Industrial Economics programatChalmers.

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The City of Gothenburg has created a jury to evaluate your innovations and will select the
winners of The Gothenburg Smart City Challenge in April 2020, together with the Citizens of
Gothenburg (in a “Eurovision” style). Our aspiration is that The City of Gothenburg will write
an article on The Gothenburg Smart City Challenge, highlighting the Challenge winners and
their innovations. Furthermore, the intention is that during March your Innovation Pitch
Videos will be displayed online and your Innovation Pitch Posters will be displayed at an
exhibition area in The City of Gothenburg.
More information on The City of Gothenburg will be provided in both the Lecture in early
January as well as in documents on the course portal provided by The City of Gothenburg.
The Gothenburg Smart City Challenge Innovation
Similar to many other cities around the world, the City of Gothenburg strives to create an
attractive city that not only retains its inhabitants but that also attracts others to live there.
One means to do this is to build a Smart City in which the UN’s sustainability development
goals are pursued through a circular economy focus.
To help the City of Gothenburg fulfill its vision towards a Smart City, your team will develop a
digital innovation and accompanying business model to convince the City of Gothenburg’s jury,
the citizens of Gothenburg, the faculty, and the rest of the class that your innovation is a great
innovation for the City. Below are some guidelines for the innovation.
Innovation Guidelines
 Novelty. Your innovation can be a product, a service, a new way of working, or a
technical solution, and it must be something either entirely new to the City of
Gothenburg or build upon existing ideas and adapted in a new way or in a new
context. Your innovation can be something that your team develops specifically for
Gothenburg or it may be something inspired by an innovation in another city
anywhere across the globe that you then adapt to the City of Gothenburg’s needs.
However, it cannot be something that already exists in the City of Gothenburg. If
there is a similar product already, then you will need to convince us that your
innovation differentiates itself substantially to what is already in the market.
 Digital: Your innovation must incorporate digital concepts and digital technologies
discussed in the course. It may also include technologies found elsewhere.
Technologies might include one or more of the following: artificial intelligence, big
data analytics, IoT, 3D printing, autonomous vehicles/drones on land or in the water,
smart robots, the blockchain, cryptocurrencies, new materials such as graphene, and
gene editing.
 Smart and Circular Measurable Impact: Your innovation must enable the City of
Gothenburg to fulfill its vision of becoming a Smart City as well as a circular and
sustainable one. The implementation of your innovation must be measurable not
only in terms of usage but also in terms of measures showing that the city is moving
towards fulfilling one or more of the UN’s SDGs:
https://www.un.org/sustainabledevelopment/sustainable-development-goals/

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 User-focused. Your innovation must be marketable. You need to convince us that
someone out there would want your innovation. To do so, you need to show us that
you have done your market research using at least one of the digital tools and one of
the datasets provided by the City of Gothenburg. Feel free to use other digital tools or
datasets in addition.
 Self-financing and self-sustaining. The City of Gothenburg has no financial resources
to invest in your innovation. You must develop a financing plan and business model
to not only pay for the development of your innovation but also to sustain its usage
over time. Here you can be creative and think about the various new fintech
solutions, eg crowdfunding, crowd equity, real estate crowdfunding, blockchain,
cryptocurrencies, etc.
 Idea. You need not demonstrate that yourteam could produce or create this
innovation now. The relevant question is this, "Given reasonable assumptions, would
it be possible for your innovation to be developed and implemented in the City of
Gothenburg?”
Some Tips for Developing Your Innovation
The Future of Society and Work. Imagine what life might be like in the next five to 10 years in
the City of Gothenburg.
 How do you think disruptive technologies and new business models will change the
way we live and work in areas such as the City of Gothenburg in Sweden? What will
individuals’ needs be?
 How can these needs be fulfilled by new technologies? Remember to put individuals’
needs in the center and then use the technologies to fulfill these needs, keeping in
mind the economic feasibility.
The Future of Technology: Be creative and stretch your minds to develop a new product or
service that can meet not only today’s but also future needs.
 Start by taking a deep dive into learning about the future potential of technologies.
Twitter/tweetdeck is a good source, and on a search engine you may choose to limit
your search to results within the past year (e.g., under tools on Google).
 What do you think various technologies will be able to do in 5-6 years?
 Your innovation could also be challenging in that it contains some surprise or novelty
in the strategic direction and vision required to launch it in Gothenburg.
 You may even go so far as to develop something that disrupts today’s business
models.
Team Formation
The Challenge is conducted by self-assigned teams of maximum six members (the exact size
willdepend on the overall number of members that you choose). Registeryour team members
on the Canvas portal. These teams are the same as your seminar teams.

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Team Dynamics
To facilitate the team dynamics in this project, we will have a lecture by Professor Sanne Olilla
on complex product leadership during our first course meeting on January 20. In addition,
please think about the following:
 Aim for diversity of backgrounds and skills in your team - and people you would enjoy
and from whom you would benefit from working.
 Determine what kind of leadership form your team should have, ie one leader, rotating
leader, no leader.
 Be clear and explicit about each person’s roles and responsibilities in the team.
 Ensure there are clear milestones and accountability.
 Set up regular team meetings.
 Provide each other candid with input and feedback.
Also, please strive for a gender and background balance in your team’s presentations.
Challenge DeliverablesandActivities
The Challenge consists of the below deliverables and activities.
Deadline Deliverable/Activity Submission or In-class
1 Jan 22, 10:00 to 11:45 Lecture
In-class:Lecture by Gothenburg City to introduce the
City and its vision as well as theCity’s digital tools and
data
2 Jan 28, 8:00 Innovation Area
Submission:Finalizeselection by your team of its
innovation area and geographic location
3 Feb 12, 10:00 t 12:00 Optional Session Optional in-class Q&ASession
4 Feb 17, 8:00
Initial Idea
Worksheet
Submission:Max 2-page Idea Worksheet
5 Feb 26, 10:00 to 11:45 Initial Pitch In-class:60 second Pitch and Peer Feedback
6 Feb 27, 8:00 Initial Pitch Feedback Submission:Max 1-page MS Doc Peer Feedback
7 Mar 3, 9:00 to 11:45 Optional Coaching Optional In-classCoachingSession
8 Mar 4, 8:00 Draft Pitch PPT Submission:Max 10 slides MS PPT Draft Presentation
9 Mar 4, 13:15 to 17:00 Draft Pitch In-class:3-minutePitch and Peer Feedback
10 Mar 5, 17:00 Draft Pitch Feedback Submission:Max 2-page MS Word Peer Feedback
11 Mar 12, 10:00 Final Pitch Poster
Submission:Final Pitch Poster submitted to Portal and
printed on A0 paper (Location TBA)
12 Mar 12, 10:00 Final Pitch Video
Submission:Link to max 3-minute Final Pitch Video
online
13 Apr 17, 11:00 ChallengeWinner Selection of ChallengeWinner

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1. The City of Gothenburg Lecture
Several members of the City of Gothenburg willpresent their views on the City of Gothenburg.
In addition, one or more representatives will present the City’s digital tools and datasets.
2. Selection of Innovation Area and Geographical Location
Your team must select your innovation focus area and geographical location by the date
specified above. There is a limit of one team per innovation focus area and two teams per
geographical area. Selection is on a first come, first served basis.
a. Innovation Area. Your team is to choose one of the following innovation focus areas:
Residents Industry Visitors
Students,
young
working
generations
Working,
family
generations
Older,
retiree
generations
Startups Established Leisure Work
Mobility
Food
Housing
b. Geographical Location. Your team is to choose one of the boroughs of Gothenburg:

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3. Optional Q & A Session
This is an optional session for those who would like discuss any questions they have related
to the Live Case.
4. Initial Idea Worksheet
Usethe “InitialIdea Worksheet Template” found on the portal to help develop and summarize
your initial idea.
Label your max 2-slide Idea Worksheet (title page plus worksheet) in MS PPT,
“Initial_YourTeam#.ppt”, and submit by the deadline specified above.
5. Initial Pitch
Deliver a pitch presentation in class, which provides a concise and engaging summary of the
innovation you would like to develop for the City of Gothenburg. The pitch must be between
40 and 80 seconds, but try to aim for 60 seconds, which is generally the maximum.Deliver only
a verbal pitch, with no accompanying visual, audio, or other props or aids. No notes, devices,
watches, or devices of any kind!
Your task is to convince the audience that this is an innovation that will enable the City of
Gothenburg to become a smart, circular, and sustainable one. You should primarily describe
the innovation, and you should give it a name. Avoid long technical descriptions and instead
you should emphasize what your innovation does, or what problem it solves, or why anyone
would be interested in buying it or using it. You should cover all of the following components
in the pitch:
1. What is the innovation? Clear explanation of the product/service.
2. What is the customer problem / pain you will solve(or delight) today and in the future?
3. How is your venture / product / service unique and differentiated from other
alternatives?
4. How big is the market and how will you be able to penetrate the market?
5. What is the financial plan and business model - how will the development and
implementation of your innovation be financed and sustained?
6. How much money is needed and what will it be used for? How can this money be
raised?
7. What competences and resources are needed to launch this innovation? What is the
ecosystem and network of relationships needed in order to develop and sell this
product or service?
Design your pitch to capture the interest of the audience so they want to hear more. Assume
your audience is full of potential partners and resource providers and speakto the whole class
when you pitch.

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Some helpful examples and tips can be found on crowdfunding sites such as Kickstarter,
Indiegogo, FundedByMe, and CrowdCube.
Also here from the Y-Combinator startup course, starting at about min 33:45:
https://www.youtube.com/watch?v=SHAh6WKBgiE&index=17&list=PLExRI9g7nuj-
SDabd6Ndx2sj0BKkth1mD
Avoid Common Elevator Pitch Mistakes
1
 No energy or passion in the presentation
 Too much technical language; focusing on the technology rather than the customer
need
 Failure to explain what customer problem you are trying to solve
 Too much discussion about the idea and product and not enough explanation about
the market, business opportunity, and revenue models
 Listing too many names of potential or actual clients or partners. Be more specific.
 Speaking too quickly.
Please note that this is just your “raw”, original idea. We expect that this idea will evolve into
something different. It might be that your team will pivot to other problem areas and/or
solutions. It might happen that your team will decide to combine different ideas, even
potentially with another team. In other words, being fully aware of the uncertainty and
volatility inherent in innovative endeavors, this assignment’s main goal is to get us started,
fight procrastination, and kick-off idea incubation.
6. Initial Pitch Feedback
During the Initial Pitch class, your teamwill be assigned to give written Feedback on one other
team’s Initial Pitch. The Feedback should primarily add value to the content of the other
team’s Idea and secondarily to the communication of the team’s message. Your Feedback is
to be in MS Word Doc (1 page) format and have points on both strengths and weaknesses
regarding content and communication style.
Label your document, “Initial Feedback_YourTeam#.doc” and submit to the portal by the
deadline specified above. Additionally, send your Feedback directly to your assigned team.
Try using google docs or something similar during class to enable your team members to work
simultaneously on one document during the presentation.
7. Optional Live Case Coaching
This optional session is an opportunity to ask any questions or even practice your pitch.

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8. Draft Pitch PPT
You are to submit a max 10-slide PPT presentation (max 9 pages + cover page) + max 5 page
appendices that you will use during your max 3-min Draft Pitch in class. Choose a font large
enough to be read by people in the audience and do not forget to reference your sources.
Label your presentation with “Draft_YourTeam#.ppt” and upload it to the portal by the
deadline above.
At the end of this document, you will find a list of questions you may consider. You are to
determine which are the most important factors and address these with the greatest depth.
Use your judgment in order to determine the necessary amount and kind of research.
9. Draft Pitch
Your team is to make a max 3-minute Draft Pitch in class. The format is that of a Dragon’s Den
in which you will pitch your innovation to a small team of “potential investors” of
representatives.
Similar to real-life pitches, the class will vote thumbs up or thumbs down on your team’s
innovation. The presentation will be followed by Q&A involving the the City of Gothenburg
representatives, the Feedback team, and the class.
The purpose of this presentation is not only to pitch your Innovation but also to gather input
for further developing your Innovation for your Final Pitch Poster and Video.
10. Draft Pitch Feedback
During the Draft Pitch class, your team will be assigned to give written Feedback on one other
team’s Pitch Presentation and Q&A. The Feedback should primarily add value to the content
of the other team’s Innovation idea and secondarily to the communication of the team’s
message. Your Feedback is to be in MS Word Doc (max 2 pages) format and have points on
both strengths and weaknesses regarding content and communication style.
Label your document, “Draft Feedback_YourTeam#.doc” and submit to the portal by the
deadline specified above. Additionally, send your Feedback directly to your assigned team.
11. Final Pitch Poster
You are to prepare a one-page A0-sized poster in either Swedish or English pitching your
innovation and deliver it to the City of Gothenburg. The posters will be displayed by the City
of Gothenburg Centrum from March 16-30, 2020. More information will be provided in class.
In addition to information on your innovation, the following should be included on your poster:
 A photo of your team or team members (optional)
 The name(s) and contact information of one or more of your team members

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 The link, eg a QR code, to your Final Pitch Video
 The Chalmers University of Technology logo
 Any sources you have used
Label your document, “Poster_YourTeam#.pdf” and submit to the portal by the deadline
specified above. The poster should also be printed in A0 paper format to be delivered to a
specified destination – to be confirmed.
12. Final Pitch Video
You are to prepare a max 3-minute video that pitches your Innovation and upload it to the
internet. Submit your link to the portal and the City of Gothenburg by the assigned deadline.
The video language can be in Swedish or English, and it should contain subtitles in the other
language.For example, ifthe video languageis Swedish, then there should be Englishsubtitles,
and vice versa.
In addition to the innovation pitch in the video, you must include the following at the end of
your video:
 The contact information of your team
 The Chalmers University of Technology logo
 Any sources you have used
The videos willbe judged by a jury from the Cityof Gothenburg and the Citizens of Gothenburg
who will then select the winner(s) of The Gothenburg Smart City Challenge.
More information on how to make a pitch video is here:
https://technovationchallenge.org/curriculum/pitch-1/
Data Collection andInnovation Development
We suggest that in addition to the required digital tools and datasets made available by the
City of Gothenburg (you must use at least one of each), you take advantage of the electronic
databases available at Chalmers, such as those providing information on industries and
markets. Feel free to contact the library for help in this area. That is what they are there for!
You might also want to consider conducting a questionnaire using the free tools such as
SurveyMonkey.
You must collect market information to develop your product as well as to test your product.
In other words, you may interview people or conduct focus groups either in person or digitally
using the City’s digital tools, you may conduct big data analytics or apply AI to data provided
by the City and/or other data you may access, etc.

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You are encouraged to practice design thinking (see below) when you are gathering external
data and testing your ideas with external individuals (e.g., rapid prototyping).
A good idea is to have one person per team be a contact person as well as for your team to
coordinate with the other teams in terms of which external people and organizations are
contacted. We do not want to overload The City of Gothenburg with too many requests.
All data sources, including interviews, websites, company papers, magazine articles, and
others, must be referenced in the poster (at the bottom) and video (at the end). Any material
taken directly from another source must be placed in “quotes” or properly reworded and
sourced. See www.plagiarism.org for some guidelines. The failure to give full credit can be
grounds for plagiarism.
In addition, you are expected to share resources and links found outside of class with each
other.
Additional Resources
1. Developing an Idea/Innovation
 Design Thinking:
o https://dschool.stanford.edu/resources-collections/a-virtual-crash-course-in-
design-thinking
 How to start a startup (Ycombinator): https://www.startupschool.org/
2. Regional Statistics, Development, and Resources
 Statistikmyndigheten SCB: https://www.scb.se/hitta-statistik/sverige-i-siffror/
 Svenskarna och Internet: https://www.iis.se/fakta/svenskarna-och-internet-2017/
 The City of Gothenburg:
o https://goteborg.se/wps/portal/start/kommun-o-
politik/kommunfakta/stadens-digitala-service/oppna-
data/!ut/p/z1/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziTYzcDQy9TAy9LcxcTQwc
Q11cPIwMDYwdXY30wwkpiAJKG-
AAjgb6BbmhigAJq1Hb/dz/d5/L2dBISEvZ0FBIS9nQSEh/
o https://data.goteborg.se
o http://alvstaden.goteborg.se/vara-delomraden/frihamnen/
o https://minstad.goteborg.se/minstad/index.do
o https://www.irissmartcities.eu/content/5-iris-transition-tracks
 McKinsey: Möjligheter för Sverige i digitaliseringens spår.
o https://www.mckinsey.com/~/media/mckinsey/featured%20insights/europe/
mojligheter%20for%20sverige%20i%20digitaliseringens%20spar/digitizing-
sweden-mojligheter-for-sverige-i-digitaliseringens-spar.ashx

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3. Uncertainty, Scenarios, and Preparing for the Future
 The Black Swan: The Impact of the Highly Improbable, Taleb, N. Random House
Publishing Group
 Scenario Thinking: https://www.wired.com/1995/11/how-to-build-scenarios/
 Global scenarios for 2025
o Shell International Limited
o U.S. National Intelligence Council
o The World Economic Forum
 Futures studies organizations
o The World Economic Forum
o Singularity University
o Decision Strategies International
o Institute for the Future
o Kairos Future
o McKinsey Global Institute
 Other tips
o Search words: scenario, foresight, trend, trendspotting, trendwatching, future
studies, institute for future, on blogs
o Sites: Slideshare, Twitter/Tweetdeck

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SOME QUESTIONS FOR THE PITCH
1. Concept
 Describe your innovation. What is the main product(s) and/or service(s), process(es),
business model?
 What are the problems or needs that you are addressing/solving with your idea? How did
you identify them?
 What are the compelling benefits of your solution? How does it help fulfill The City of
Gothenburg’s vision of a smart city? Of being circular and sustainable?
 How is this innovative? What differentiates your solution from what current players offer
in the market?
 How does your innovation build on the strengths and resources of The City of
Gothenburg?
 What is the value proposition and how will you ensure that it can be fulfilled?
 How does your innovation perform in terms of environmental and social sustainability?
2. Strategy and Market (may be adapted to innovation)
 Define your target users and relevant market segments. Be clear, focused, and specific.
 What is the market size, growth rate and projected growth rate for the first three years?
 What is your targeted market share?
 What evidence can you provide of market demand, including customer ability and
willingness to pay a price that works for your innovation? How did you find this evidence?
 Where and how will you launch and then sell your innovation? Who will be your first
customers (innovators and early adopters)?
 How will you get customers to know about your innovation?
 How will you ensure a relationship with your customers and how will you retain them?
 What is your overall market assessment?
3. Industry and Competition (may be adapted)
 In which industry will you operate?
 What is the industry size, growth rate, and projected growth rate?
 How attractive is this industry?
 Who are the leading competitors and substitutes and what are their respective
strengths/weaknesses?
 What barriers to entry are there?
 Why should the customer use your innovation over that of the competition?
 How will you achieve sustainability of your innovation? Will you compete on technology,
design, service, availability, and/or price?
 How might the market react to your entering the market?
 What kind of legal protection, if any, do you need? And how will you ensure this?
 What is your overall industry and competitive assessment?

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4. Financials
 What is your business model?
 How will you price your innovation and how did you develop this?
 What is the revenue model? What do you predict your revenues to be from your
innovation in the first three years?
 What is your brief assessment of the financial performance of similar enterprises?
 What is the estimated total time and start-up cash needed to make the first sale (including
capital investments and operating expenses)?
 What resources are needed, e.g., personnel, website, machinery, buildings, vehicles,
patents/trademarks?
 What are the costs for the first three years?
 How can the necessary cash be raised to make the first sale and stay in business for three
years?
 What assumptions have you made in your calculations?
 Are there any potential exits?
 How will you measure impact? Towards smart city, sustainability goals, circular economy?
 What is your overall financial assessment?
5. Resources and Ecosystem
 What are the important resources that The City of Gothenburg has to support this?
 What important areas of expertise are missing that are required for this innovation, and
how would you fill the gaps if you were to further develop and launch the innovation?
 What competences should there be on an advisory board?
 What resources are needed from collaborations/partners?
 What types of collaboration and/or partnerships are important for your innovation’s
success?
 Do potential collaborations/partners fulfill your demands from an ethically, socially,
environmentally, and economically sustainable perspective?
 What is your overall resource and ecosystemassessment?
Risk Factors
 What are the biggest challenges, sources of uncertainty, and risk factors for this
innovation, including their probability and potential impact, e.g., technical, economical,
market, personnel, environmental barriers, ethical?
 How should the risks be managed and mitigated?
 What is your overall risk assessment?
Next Steps
 What are the most important next steps in preparing for launch? Be specific.
 What is still missing from the analysis that is needed to draw better conclusions?
 What would you do next, specifically, to find out?