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Implementation of Smart City Concept in
Ukraine
Valeriia Dykan1, Mariia Ieromyna2, Uliana Storozhylova3,and Liliia Bilous1*
1 V.N. Karazin Kharkiv National University, Management and Administration Department,
Myronosytska str. 1, 61022 Kharkiv, Ukraine
2 Ukrainian State University of Railway Transport, Department of Public and Corporate Finance
Management , Feierbakh Sq., 7, 61050 Kharkiv, Ukraine
3 Ukrainian State University of Railway Transport, Management and Administration Department,
Feierbakh Sq., 7, 61050 Kharkiv, Ukraine
Abstract. The article deals with development of Ukrainian cities within
the Smart City concept based on the experience of foreign countries. The
experience of such countries as Sweden and Denmark has been analyzed.
The main attention is paid to those elements of the concept that can be
implemented in Ukraine at present. The analysis identified the following
conditions for the development of the Smart City concept: the
development of an effective e-government, transparency, inclusion in
international economic processes, attracting new players and new sources
of funding, service integration, strategic planning of the new business
model, leadership and championship. These elements are relevant for
implementation in Ukraine. Two regions of Ukraine, namely, the Black
Sea and Slobozhansky regions, were selected to analyze the pace of
implementing the Smart City concept. The geographic location, climatic
conditions and infrastructure potential of these regions create good
prospects for their attractiveness in the global world. The research has
identified elements of the Smart City concept that has already been
introduced and provided recommendations for possible next steps in
Smart City development in Ukraine.
At the time of the actions of oppressive thinking and digital globalization, the instant
development of the Internet and technological progress, the key precondition for Ukraine's
attractiveness is the global transformation of the entire infrastructure of each of its regions.
The introduction of the new generation of intelligent networks, innovations and investments
foresees the further development of the cities of all regions of Ukraine on the principle of
Smart City and focus on ensuring their comfort and security, restructuring of existing
enterprises and organizations of the country in highly effective. These challenges can be
solved by the concept of a comprehensive strategic approach to implementing smart
concepts and the interaction of power, science and business.
* Corresponding author: l.bilous@karazin.ua
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© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative
Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
The works of such scholars as A.Yu. Berko, P. Voloshin, V.V. Dibskaya, O.I. Zaitsev,
V.I. Sergeyev, O. Senkevich, D. Parks and others were devoted to the theoretical and
practical questions of the implementation of Smart City technologies and the restructuring
of existing Ukrainian companies in highly effective. However, despite the large number of
projects, the problem of sustainable and dynamic development of regions in the direction of
the introduction and development of modern technologies, including Smart City, remains
open.
In an age when the world's population lives and operates in the digital world, more and
more countries are rebuilding their digital development path, providing enormous benefits
to the cooperation of private and state-owned companies that introduce Smart innovation
into their business. The share of the traditional economy is decreasing, and the digital one is
increasing. The globalization and the incredibly accelerated pace of modernization of
technology constantly require countries and companies in the world to be flexible, to
constantly seek out innovative solutions and semantic approaches. Expanding the
capabilities of IT technology and technical progress, cross-border and interregional
cooperation enable companies to be global and local at the same time, turn the regions of
countries into perspective ecosystems with the further development of cooperation and
management systems.
Smart City - a complex of measures aimed at modernizing the city management system.
For each city it is individual, because each city has its own problems and features.
However, it is possible to identify the main general directions of modernization of the city
management system, without which any city can not function effectively: security, utilities
and energy efficiency of the city buildings.The concept of Smart City can be offered as
simple solutions, such as: urban transport management, automated parking, street lighting
control; and more complex, the electronic health system, the automatic detection of pipeline
failures in public utilities or electronic security system through surveillance cameras.
The implementation of Smart City is supported by international technology companies,
as evidenced by IBM's Global City Business Vision [1] and the European Union over the
years [2]. With regard to sustainability and climate change, such initiatives promise more
efficient use of information and communication technology resources in energy
infrastructure [3]. One of Smart City's methods of implementation is urban intelligence
networks that are experiments with Smart City technologies that have shown potential for
restructuring the relationship between energy companies, energy consumers and other
participants by changing the configuration of the dynamics of demand and supply of energy
[4]. Ukraine is taking the first steps in implementing such systems, drawing on the
experience of countries already benefiting from the Smart City, and studying their
experience to avoid mistakes. Let's consider the experience of the successful
implementation of the Smart City concept in the case of countries such as Sweden and
Denmark.
Sweden is one of the leading energy technology countries, and energy conservation is a
priority for it. Thus, from 2011 to 2016, two projects were implemented in Malmo, which
indicated that it is important not only to use advanced technologies but also to ensure a
reasonable functioning of the administrative apparatus, which, in order to lobby for its own
interests, can reduce the effectiveness of the changes, or even at all level them up. These
projects have helped to institutionalize the technologies of urban intelligence networks [5].
Such experience is useful for Ukraine to implement its own projects.
Another example of the implementation of intelligent networks in the city's
infrastructure system is the experience of the city of Aarhus, Denmark, where the e-
government system, smart transport, eHealth, and the widespread data transmission system
have been introduced under the Smar tcity concept. To implement the latest, the whole city
was equipped with a free Wi-Fi network. The Smart City concept can be implemented in a
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variety of ways, for example, the Open Data Aarhus (ODAA) system, an online platform
that promotes democracy, transparency and economic growth through open data, has been
created. The platform provides everyone with access to the data they can use to create
services and initiatives [6]. ODAA is based on the participation of stakeholders: citizens,
students, researchers, and companies, for example, through a working group with members
from the municipality of Aarhus, the Central Denmark region, the University of Aarhus, as
well as private companies such as The Alexandra Institute [7], IBM [8] and Creuna [9].
This makes the system not only an example of easy access to the necessary information, but
also an example of the interaction of power, science and business.
In accordance with modern trends and directions of development of European society,
the regions of Ukraine have favorable conditions for the implementation of the elements of
the Smart City concept. These regions are industrially developed regions, have a wide
transport connection and are export-oriented. So, in our opinion, one of the most
progressive regions of Ukraine is the Black Sea and Slobozhansky. The attractiveness of
export activity in the Black Sea region was due to the development of a developed
industrial sector in the region and a stretch sea border that allows receiving and shipping
offshore transport from all countries. In the Slobozhansky region, the geographical
advantage is the border.
To increase the level of attractiveness and ensure the sustainable growth of the regions,
we consider it necessary: to provide an assessment of the potential use of the region's
priorities for implementing the Smart City concept in the regions; ensuring of the
development of cities on the principle Smart City; restructuring of existing companies in
highly effective in the field of computerization and initiation of IT technologies; to carry
out a major recovery of highways that are crucial for national and regional economic
growth; to provide decentralization of routes; implement traffic safety programs; to update
the infrastructure of railway transport, ports; to increase investment attractiveness of
regions by attracting strategic investments in priority sectors of the region and other
activities. The development of cities based on the principle of Smart City provides an
opportunity to ensure sustainable economic development in the regions, and a high quality
of life for the population. For the most part, in the development of the world's cities by the
Smart City conception there are five main components that need to work together to
achieve the common goal, namely, Smart Energy, Smart Water, Smart Buildings, Smart
Government and Smart Transportation.
Smart Energy is a solution in the areas of energy supply and energy conservation,
demand management, energy efficiency and renewable energy integration. Smart Water is a
water resource management: water systems modernization, consumption monitoring,
environmental safety systems and flood management. Smart Buildings are buildings in
which all engineering and information systems are integrated into a single management
system (BMS). Smart Government is the use of information technology to provide public
services to a wide range of people and optimize the work of different departments. Smart
Transportation is intelligent transport and logistics systems, monitoring and traffic
management, payment of tolls, emergency response, intelligent parking and integrated
traffic management, building intelligent logistics networks [10].
Creating Smart City in five sectors is crucial for sustained global growth and the
attractiveness of the regions. An example of implementing the concept of Smart City,
namely its elements of Smart Transportation, is the construction of a bicycle raft
improvement facility on the Health Road in the city of Odessa, which is located in the
territory of the Black Sea region. The trestle should connect all areas of the Odessa coast -
from Cape Langeron to Great Fontana. Thus, a single cycling route, the length of which
will be more than 15 km, with division of pedestrian and athlete movements and restoration
of the pedestrian track, is organized. Complex improvement of route includes arranging
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descents, lighting, equipment for sanitary toilets, and renovating sports and children's
playgrounds. The trestle is only for pedestrians and cyclists.
IAccording to the concept of cities development of Slobozhansky and Black Sea regions
of Ukraine on the principle Smart City in cities and towns it is necessary to install
intelligent sensors that will facilitate management of city through the system of intellectual
video analytics. The priority strategy of socio-economic development and attractiveness of
all cities of the Slobozhansky and Black Sea regions requires the renewal of urban electric
transport: rolling stock of trams, trolleybuses and buses, as well as transport infrastructure.
Electric transport is always environmentally friendly, fast and economical. When
designing new streets, roads and solutions, it is necessary to take into account the cyclists'
movement and to install electronic displays with a timetable for urban transport.
Infrastructure development is one of the key factors of attractiveness of Slobozhansky and
Black Sea regions of Ukraine for investments. To implement such changes, a complete
upgrade of the existing companies' system of work and a focus on the digitization and
robotization of technological processes is required. Modernization of high-performance
companies in the country should be carried out with a speeding up to the speed of reality.
Highly-performing companies should ensure the attractiveness and competitiveness of
their products and services. Today, more flexible companies create strong ecosystems and
partnerships. Modernization of companies in the Slobozhansky and Black Sea regions of
Ukraine should include models of rapid adaptation of the entire company to meet the new
trends in the world through information systems, mobility of company employees and
cooperation between companies. For example, in Mykolaiv, a new, most powerful wind
power plant in Ukraine (VEU 001) was commissioned at 3.2 MW Tuzlovskaya VES,
“Vitroviy Park “Prychornomorsky” LLC.
The wind turbine was made at the Fuhrlaender Wind Technology factory in
Kramatorsk. The Kramatorsk plant was used in the manufacturing cycle of wind power
plants manufacturing: Kramatorsk heavy machine tool plant (KHMTP),
Energomashspetsstal (EMSS), Novokramatorsk machine-building plant (NKMBP),
Mykolayv Factory ESTA Ltd. [11]. The cost of the construction of traditional and
alternative power generating capacities of the NPP unit in times exceeds the cost of
construction of green energy facilities. In world practice, energy production with minimal
impact on nature is only increasing. Taking into account the specifics of the Slobozhansky
and Black Sea regions, modernization of existing companies in highly efficient and access
to foreign markets can be achieved through: multifunctional development of regional
management; "Reasonable" specialization; regional and cross-border cooperation;
improvement of the investment climate; participation in international programs; a
continuous dialogue between local authorities and companies and enterprises in the region;
facilitating the establishment of IT transparent; improvement of the ecological potential of
the region. Taking into account the fact that the export share to European markets from the
Slobozhansky and Black Sea regions is increasing, high performing companies should pay
more attention to penetration into new markets of manufactured products, optimization of
logistic business processes, expansion of global sales and marketing opportunities,
improvement of the quality of customer service, hedging of economic recession. An
example of such modernization in companies is the enterprises of the Kherson region,
which trade with more than one hundred countries of the world.
The attractiveness of the Slobozhansky and Black Sea regions mainly depends on
revealing the main approaches to the implementation of the concept of Smart City and the
restructuring of existing companies in highly effective, taking into account the orientation
of development to innovation and exclusivity. Slobozhansky and Black Sea regions
development projects under the applied Smart City concept, unites the following: the
inhabitants of the city are in the center of attention and take part in the life and management
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of the city; expansion and improvement of city services; a friendly and attractive system for
business creation; association through means of networks of citizens, authorities and
business; universal and free access to culture, education and health.
The features of the Smart City concept are quality of life of citizens, mobility,
socialization, virtualization, infrastructure modernization, personalization, smart
technologies and urbanization. In Ukraine, the concept of Smart City began introduction in
2017 and is gradually gaining momentum, platforms are being launched, forums and round
tables are being held and new technologies are being introduced. So, in place of Kharkiv in
cooperation with Vodafone Ukraine, the Smart Сity UA project was launched [12]. By the
end of 2020, the city plans to use technologies that will affect all areas of public life. The
following projects will be implemented: Smart Transport, Smart Energy, E-medicine, Safe
City, Ecology, Garbage Disposal, E-Government, and Tourism. 20 projects is planned to
implement in total, some of which are in the process of implementation. So, bicycle tracks
and bike rental with online payment, a single system of payments in public transport and
"smart" street lighting were appeared in the city. By 2020, “smart” parking lots, pedestrian
crossings and traffic lights, “smart” stops on which traffic can be tracked through online
applications, alternative energy sources are planned to be realized.
The analysis of the concept of Smart City allowed to develop the table that identifies the
various subsectors of the Smart City concept and allows solving the development of the
Slobozhansky and Black Sea regions of Ukraine by implementing projects for the
development of modern urban infrastructure, using information and communication
technologies of infrastructure and services, cooperation between key stakeholders ( citizens,
universities, government, industry), integration of different areas (environment, mobility,
governance, community, industry, services), investment in social capital.
Here are the main concepts of Smart City The concept of "smart" government, the
provision of public services through the Internet to a wide range of people and optimizing
the work of different departments, business development. Public safety, modern innovative
development of comfort for the population and optimization of city life. Environmental
protection, air and water quality control. Rational and ecological waste management.
Concepts of highly effective companies work. The concept of work of highly effective
companies. Companies are advanced with the idea of introducing advanced world
innovations and exclusivity, adaptability to the future. The organizational structure is based
on projects and schemes. Targeting for new markets for products and new customers.
There are three types of subsections of the Smart City Concept for the development of
the Slobozhansky and Black Sea regions of Ukraine. They must comply to such Essential
principles of creation as: integration of subsystem, development of services and
infrastructure of the city, investing, cooperation and should implement the following: high-
performance management, high living standards, mobility,careful attitude to the
environment, optimize resources usage ,solving security issues, economic growth support.
To do this, it is necessary to use the goals of the SWOT analysis of the Slobozhansky
and Black Sea regions of Ukraine, where the strengths are considered as advantages in the
implementation of the city's intellectual project. Weaknesses are obstacles to
implementation, while opportunities are factors that can be acquired during the
implementation of Smart City. The main opportunities are the availability of accessible and
mature technologies suitable for solving environmental problems, support for the tourism
sector, the use of intelligent systems.
Factors such as urbanization and industrialization not only draw the infrastructure of
cities but also create growing problems for the effective management of the quality of life
of citizens and the resilience of resources. The development of an intellectual and
sustainable city is a way forward, a strategic process that requires novelty in approach,
planning, operations, networking and management of urban enterprises.The SWOT analysis
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of the Smart City concept was used as a strategic tool for identifying and evaluating the
city's intellectual transformation. In the future, work needs to be expanded in order to
determine the degree of dependence and independence of the various factors of the
transformation of an intellectual city based on a SWOT matrix created to assist decision
makers based on a different combination of four elements. This can all help not only
Ukraine in implementing such projects, but also worldwide to find more correct and
rational ways to resolve the development of the Smart City concept. Taking the experience
of foreign partners and international companies, Slobozhansky and Black Sea regions of
Ukraine confidently introduce new technologies into their own cities to improve the quality
of life of citizens.
Conclusions from the conducted research.
The development of an effective e-government, transparency, inclusion in international
economic processes, attracting new players and new sources of funding, service integration,
strategic planning of the new business model, leadership and championship are essential for
the development of the concept of Smart City. The geographical location, climatic
conditions and infrastructure potential create good prospects for the attractiveness of the
Slobozhansky and Black Sea regions of Ukraine in the world. The acceleration of the
modernization of the Slobozhansky and Black Sea regions of the country offers many new
innovative solutions for the development of cities on the principle of Smart City and the
creation of high performance companies and requires: identifying the priorities of the
region's development, understanding the choice of strategic modernization, developing a set
of measures, implementing selected measures. That is, it is necessary to develop the
attractiveness of the infrastructure, to cover all the priority directions of international
cooperation, to promote maximum convergence of the whole country with the European
Union and the world.
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