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See detailThe search for the perfect match: Aligning power-trading products to the energy transition
Fridgen, Gilbert UL; Michaelis, Anne; Rinck, Maximilian et al

in Energy Policy (2020), 144

Given the growing share of uncertain renewable energy production, the energy transition challenges modern power systems and especially calls for increased flexibility. However, relevant information on the ... [more ▼]

Given the growing share of uncertain renewable energy production, the energy transition challenges modern power systems and especially calls for increased flexibility. However, relevant information on the highly assetspecific flexibility potential is typically only known to plant operators themselves and not, e.g., to transmission system operators. Therefore, liberalized electricity markets use prices that set explicit monetary incentives to disclose the relevant private information about the market participants’ assets. In this way, information asymmetries may be reduced. Given the different challenges of an integration of renewables, we argue that the associated new forms of volatile power profiles require new forms of power-trading products. In particular, based on recent advances in technical power measurement and billing, individual and market participant-specific power profiles may be superior to the current trading of average volumes. Against this background, we first outline various evolutionary adjustments of existing power-trading products and their underlying product parameters including (1) strengthening local pricing, (2) finer temporal granularity, (3) smaller minimum volume, and (4) shorter gate-closure time. Second, we open up a new perspective in form of a more disruptive shift towards power-profile trade, where market participants define their trading product using the actual power profile as a new product parameter. [less ▲]

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See detailIndustrial demand-side flexibility: A key element of a just energy transition and industrial development
Heffron, Raphael; Körner, Marc-Fabian; Wagner, Jonathan et al

in Applied Energy (2020)

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further ... [more ▼]

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further industrial development and associated economic growth. As countries worldwide transition to a low-carbon economy (in particular, by the development of renewable energy sources), the increasing fluctuation in renewable energy production requires new flexibility options within the electricity system in order to guarantee security of supply. It is advanced in this paper that such a flexibility transition with an active participation of industry in general has unique potential: It will not only promote green industrial development, but also become an engine for inclusive industrial development and growth as well as delivering a just transition to a low-carbon economy. Given the high potential of industrial demand-side flexibility, a first monitoring approach for such a flexibility transition is illustrated, which bases on a flexibility index. Our flexibility index allows for an indication of mis-developments and supports an appropriate implementation of countermeasures together with relevant stakeholders. Hence, it holds various insights for both policy-makers and practice with respect to how industrial demand-side flexibility can ensure advances towards an inclusive, just, and sustainable industrial development. [less ▲]

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See detailSupporting Citizens’ Political Decision-Making Using Information Visualisation
Graf, Vanessa; Graf-Drasch, Valerie; Tiefenbeck, Verena et al

in Proceedings of the 28th European Conference on Information Systems (ECIS) (2020, June 17)

Individual decision-making is a complex process. If carried out by individual citizens in the context of politically relevant decisions, serious consequences at all levels of a society might occur. That ... [more ▼]

Individual decision-making is a complex process. If carried out by individual citizens in the context of politically relevant decisions, serious consequences at all levels of a society might occur. That is why these decisions need to be made with care and preferably on a broad set of information to reflect citizens’ true preferences. However, due to limited attention, citizens often consider only salient aspects in their decision-making. To mitigate unwanted consequences following therefrom, citizens are in dire need of decision-support. We address this need by developing an Information Systems (IS) tool. Being based on information visualisation, our tool supports citizens by providing instant feedback. To ensure a meaningful engagement, the IS tool is designed according to gamification principles. A first instantiation in the context of renewable energy acceptance in Germany yields three key findings: First, we find indications that young, urban, and environmentally aware citizens are willing to accept a high percentage of renewable wind energy. Second, we find that the tool influences citizens’ decision-making. Third, we find citizens to update, however not completely turn over their preferred level of renewable wind energy after interaction with the tool. This holds true across different cross-sections of the population. [less ▲]

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See detailStrukturierte Analyse von Nachfrageflexibilität im Stromsystem und Ableitung eines generischen Geschäftsmodells für (stromintensive) Unternehmen
Haupt, Leon; Körner, Marc-Fabian; Schoepf, Michael UL et al

in Zeitschrift für Energiewirtschaft (2020)

The expansion of renewable energy requires appropriate flexibility in the electricity system in order to maintain the balance between electricity generation and consumption at all times. The industrial ... [more ▼]

The expansion of renewable energy requires appropriate flexibility in the electricity system in order to maintain the balance between electricity generation and consumption at all times. The industrial sector plays a central role for a successful energy transition due to the power-intensive processes and the resulting high electricity demand. Industrial demand response may be a cost-effective alternative to other flexibility options. At the same time, companies can reduce electricity procurement costs by providing demand response. Nevertheless, due to a complex decision-making environment and a lack of planning security, only a few companies are currently exploiting the existing potential. To reach the goals of the energy transition, the potential used must still be raised significantly, i.e., companies must align their demand for electricity more closely to the existing supply of electricity. This article supports companies in this transformation process by illustrating dimensions and characteristics of a business model for demand response. Through a literature study and subsequent expert workshops, a generic business model for companies is derived that provides transparency regarding the necessary activities and resources for enabling and implementing demand response. The results were developed using the established Business Model Canvas. This supports companies that have not yet started to use demand response in their business model development and thus reduces barriers to entry. The results presented contribute to an increase in the demand response potential of the industry. [less ▲]

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See detailThe Energy Consumption of Blockchain Technology: Beyond Myth
Sedlmeir, Johannes; Ulrich Buhl, Hans; Fridgen, Gilbert UL et al

in Business and Information Systems Engineering (2020)

When talking about blockchain technology in academia, business, and society, frequently generalizations are still heared about its – supposedly inherent – enormous energy consumption. This perception ... [more ▼]

When talking about blockchain technology in academia, business, and society, frequently generalizations are still heared about its – supposedly inherent – enormous energy consumption. This perception inevitably raises concerns about the further adoption of blockchain technology, a fact that inhibits rapid uptake of what is widely considered to be a groundbreaking and disruptive innovation. However, blockchain technology is far from homogeneous, meaning that blanket statements about its energy consumption should be reviewed with care. The article is meant to bring clarity to the topic in a holistic fashion,looking beyond claims regarding the energy consumption of Bitcoin, which have, so far, dominated the discussion. [less ▲]

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See detailThe token’s secret: the two-faced financial incentive of the token economy
Drasch, Benedict J; Fridgen, Gilbert UL; Manner-Romberg, Tobias et al

in Electronic Markets (2020)

Multi-sided platforms are omnipresent in today’s digital world. However, establishing a platform includes challenges: The platform utility usually increases with the number of participants. At an early ... [more ▼]

Multi-sided platforms are omnipresent in today’s digital world. However, establishing a platform includes challenges: The platform utility usually increases with the number of participants. At an early stage, potential participants expect the platform utility to be low and lack an incentive to join (i.e., “chicken and egg” problem). Blockchain-enabled utility tokens hold the promise to overcome this problem. They supposedly provide a suitable financial incentive for their owners to join the platform as soon as possible. In the first half of 2018, investors seemed to believe in the presumption and spent more than US$ 17.6 billion in token sales. To date, we know little about this financial incentive in the context of the token economy. For this purpose, we model the token value development and the associated incentives in a multi-sided blockchain-enabled platform. The resulting findings suggest that blockchain-enabled utility tokens can help to overcome the “chicken and egg” problem. However, these tokens lead to contradictory incentives for platform participants, and can even inhibit platform usage. The contribution of our work is twofold: First, we develop one of the first models for token value development. Second, our research contributes to a deeper understanding of the utility token’s financial incentive. [less ▲]

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See detailHow to Develop a GDPR-Compliant Blockchain Solution for Cross-Organizational Workflow Management: Evidence from the German Asylum Procedure.
Guggenmos, F; Lockl, J; Rieger, A et al

in Proceedings of the Hawaii International Conference on System Sciences 2020 (2020)

Blockchain technology has the potential to resolve trust concerns in cross-organizational workflows and to reduce reliance on paper-based documents as trust anchors. Although these prospects are real, so ... [more ▼]

Blockchain technology has the potential to resolve trust concerns in cross-organizational workflows and to reduce reliance on paper-based documents as trust anchors. Although these prospects are real, so is regulatory uncertainty. In particular, the reconciliation of blockchain with Europe’s General Data Protection Regulation (GDPR) is proving to be a significant challenge. We tackled this challenge with the German Federal Office for Migration and Refugees. Here, we explain how we used Action Research to guide the Federal Office in creating a GDPR-compliant blockchain solution for the German asylum procedure. Moreover, we explain the architecture of the Federal Office’s solution and present two design principles for developing GDPR- compliant blockchain solutions for cross- organizational workflow management. [less ▲]

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See detailHow ill is your IT Portfolio? : Measuring Criticality in IT Portfolios Using Epidemiology
Guggenmos, Florian; Hofmann, Peter; Fridgen, Gilbert UL

in 40th International Conference on Information Systems, Munich, Germany, 2019 (2019)

IT project portfolios, consisting of IT projects, also interact with the entire IT landscape. In case of a failure of only one element, existing dependencies can lead to a cascade failure, which can cause ... [more ▼]

IT project portfolios, consisting of IT projects, also interact with the entire IT landscape. In case of a failure of only one element, existing dependencies can lead to a cascade failure, which can cause high losses. Despite the present effects of systemic risk, research into IT portfolio management lacks suitable methods to quantitatively assess systemic risk. We follow the design science research paradigm to develop and evaluate our ‘on track’ or ‘in difficulty’ (TD) method by applying the SI model, representing a recognized network diffusion model in epidemiology, in an IT portfolio context. We evaluate our method using a real-world dataset. We introduce a criticality measure for diffusion models in IT portfolios and compare the TD method’s results and the alpha centrality to human judgment as a benchmark. From our evaluation, we conclude that the TD method outperforms alpha centrality and is a suitable risk measure in IT portfolio management. [less ▲]

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See detailOpportunities and Challenges of DLT (Blockchain) in Mobility and Logistics
Fridgen, Gilbert UL; Guggenberger, Nikolas; Hoeren, Thomas et al

Report (2019)

This report presents the economic potential, legal framework, and technical foundations required to understand distributed ledger (DL) / blockchain technology and llustrates the opportunities and ... [more ▼]

This report presents the economic potential, legal framework, and technical foundations required to understand distributed ledger (DL) / blockchain technology and llustrates the opportunities and challenges they present, especially in the mobility and logistics sectors. It was compiled by the blockchain laboratory at Fraunhofer FIT on behalf of the German Federal Ministry of Transport and Digital Infrastructure (BMVI). Its intended audience comprises young companies seeking, for example, a legal assessment of data protection issues related to DL and blockchain technologies, decisionmakers in the private sector wishing concrete examples to help them understand how this technology can impact existing and emerging markets and which measures might be sensible from a business perspective, public policymakers and politicians wishing to familiarize themselves with this topic in order to take a position, particularly in the mobility and logistics sectors, and members of the general public interested in the technology and its potential. The report does not specifically address those with a purely academic or scientific interest in these topics, although parts of it definitely reflect the current state of academic discussion. [less ▲]

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See detail(How) Can Blockchain Contribute to the Management of Systemic Risks in Global Supply Networks?
Fridgen, Gilbert UL; Körner, Marc-Fabian; Sedlmeir, Johannes et al

in 14. Internationale Tagung Wirtschaftsinformatik (2019)

Even though globalization has led to larger, faster, and more efficient supply chains, at the same time the new worldwide interconnection has also resulted in major challenges with respect to hidden ... [more ▼]

Even though globalization has led to larger, faster, and more efficient supply chains, at the same time the new worldwide interconnection has also resulted in major challenges with respect to hidden systemic risks. In particular, there is a lack of a holistic perspective on the entire supply network. This missing global view prohibits the anamnesis and management of underlying risks. Against this backdrop, in this paper we discuss the potential contributions of Blockchain technology to systemic risk management in global supply chains and networks. Given the increasing number of recent initiatives of businesses in the context of Blockchain, we argue that Blockchain technology can lower the hurdle for the use of secure multiparty computation. Ultimately, it may be possible to implement a corresponding monitoring mechanism for systemic risks without (i) the need of a central authority and (ii) revealing competition relevant, confidential information to other supply network participants. [less ▲]

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See detailSupporting communication and cooperation in the asylum procedure with Blockchain technology : A proof of concept by the Federal Office for Migration and Refugees
Fridgen, Gilbert UL; Guggenmos, Florian; Lockl, Jannik et al

Report (2019)

The proof of concept showed that the use of Blockchain technology could support cross-organisational communication and cooperation in the asylum procedure. In addition, Blockchain could provide an ... [more ▼]

The proof of concept showed that the use of Blockchain technology could support cross-organisational communication and cooperation in the asylum procedure. In addition, Blockchain could provide an important foundation for the establishment of digital identities and allow an asylum seeker’s procedure to be tracked based on this identity. Admittedly, not all applicable data protection regulations were fully implemented in the proof of concept. However, the findings gained as part of the project provide a promising basis for the development of a Blockchain-based solution for the asylum procedure that complies with data protection requirements. Moreover, the developed concept could scale beyond Germany’s borders. Blockchain-based, transnational management of asylum procedures could therefore become a joint project of the European member states to strengthen cooperation while safeguarding federal structures. This means that Blockchain technology could be the start of digital federalism in Europe (including the asylum procedure). [less ▲]

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See detailBlockchain in the \ "o public administration: support \" u support of cooperation in the asylum process
Guggenmos, Florian; Lockl, Jannik; Rieger, Alexander et al

in Informatik-Spektrum (2019)

Due to Germany's federal structures, IT architects in German authorities are often faced with major challenges. A large number of regionally different process variants must be mapped on heterogeneous IT ... [more ▼]

Due to Germany's federal structures, IT architects in German authorities are often faced with major challenges. A large number of regionally different process variants must be mapped on heterogeneous IT infrastructures. In addition, the exchange of information between authorities is not fully digitized and only partially standardized. One of the technologies that could create added value in this area of ​​conflict is blockchain. Together with the Federal Office for Migration and Refugees, the applicability of the technology in the asylum area was examined in a proof-of-concept project. The central finding from the proof-of-concept is that a cross-agency blockchain solution in the asylum process is superior to central solutions in terms of integrity, performance, security and transparency. [less ▲]

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See detailDecoupling, Information Technology, and the Tradeoff between Organizational Reliability and Organizational Agility
Keller, Robert; Ollig, Philipp; Fridgen, Gilbert UL

in 27th European Conference on Information Systems (ECIS) (2019)

Information technology (IT) units within organizations pursue both organizational reliability and agility goals. Reliability ensures the stability and business continuity of organizations, whereas agility ... [more ▼]

Information technology (IT) units within organizations pursue both organizational reliability and agility goals. Reliability ensures the stability and business continuity of organizations, whereas agility helps to detect and exploit market opportunities. In our research, we study projects in 19 organizations and unravel the relationship between agility and reliability. We observe that in certain cases reliability can undermine agility and vice versa. Global rules, routines, and procedures can hinder organizational agility whereas responding creatively for agility can locally undermine global organizational reliability. Further, we find that organizations often use decoupling to deal with this trade-off. Although decoupling enables them to be agile and reliable at the same time, it risks undermining both capabilities in the future, by encouraging the accumulation of technical debt. We find indications of how technical debt limits opportunities to creatively respond and can increase vulnerabilities. [less ▲]

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See detailIT-based Architecture for Power Market Oriented Optimization at Multiple Levels in Production Processes
Seitz, Philipp; Abele, Eberhard; Bank, Lukas et al

in Procedia CIRP (2019), 81

Given the increasingly volatile prices on the power markets, it becomes economically more and more important for companies to develop and realize flexible strategies for energy consumption. A steady ... [more ▼]

Given the increasingly volatile prices on the power markets, it becomes economically more and more important for companies to develop and realize flexible strategies for energy consumption. A steady adaption of production processes which considers current power prices can take place on several levels of the automation pyramid, where each level has its own characteristics and requirements. In this paper, we present an optimization architecture based on an IT-platform which meets the challenges of complex multilayered production processes. We introduce layer-specific optimization strategies as well as an associated information flow, which facilitates creating holistic and well-coordinated optimizations. [less ▲]

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See detailInitial conditions for the marketing of demand flexibility: status quo analysis and meta study. 2 version
Buhl, Hans Ulrich; Fridgen, Gilbert UL; rner, Marc-Fabian K. O et al

Report (2019)

The present work is part of the research project "Synchronized and energy-adaptive production technology for the flexible alignment of industrial processes to a fluctuating energy supply (SynErgie ... [more ▼]

The present work is part of the research project "Synchronized and energy-adaptive production technology for the flexible alignment of industrial processes to a fluctuating energy supply (SynErgie)" funded by the Federal Ministry of Education and Research. As one of the "Kopernikus projects for the energy transition", the SynErgie research project aims to enable energy-intensive industries in Germany to adapt their electricity demand to the increasingly fluctuating electricity supply. In the past, electricity systems were usually designed so that the generation side of the market was adapted to the temporal behavior of consumption. However, due to the increased expansion of volatile renewable energies, power generation is subject to uncontrollable, weather-dependent fluctuations, which is why making the overall system more flexible is becoming increasingly important. Because the producer side can only offer the required flexibility in the form of a reduction in feed-in, there is a so-called flexibility gap. As became clear on December 14, 2018 and January 10, 2019, this flexibility gap is already pushing the power system to its limits of stability. Only through the use of many compensation mechanisms or With options for flexibility, the security of supply could just be maintained on these days. The industrial processes considered in SynErgie represent a subset of potential flexibility options and can contribute to load adjustment to fluctuating generation as well as to the provision of system services and relief of the grids. In a liberalized, competitive electricity market, the market and regulatory framework conditions are of great relevance with regard to the development of the potential for flexibility in demand. This study therefore first describes the basics of the electricity market design and the constituent legal framework. Current discussions about the basic price system (unit price system vs. zonal system vs. nodal system) are not dealt with. The processing of these discussions as well as the specific analysis of the effects of the price system on demand flexibility is the content of the work packages of the Cluster IV “Market and Electricity System” pending in SynErgie II. The present study therefore rather works on potential obstacles to the participation of flexible demand processes and always refers to the application to industrial processes. The analysis forms the basis for future work in Cluster IV and provides cross-cluster information about the status quo of market structures and regulatory framework conditions. In addition to the systematic processing of the market framework, the scientific literature and already published studies on the subject of demand flexibility (demand side management and demand response) are analyzed and summarized in a meta study. The analysis forms the basis for future work in Cluster IV and provides cross-cluster information about the status quo of market structures and regulatory framework conditions. In addition to the systematic processing of the market framework, the scientific literature and already published studies on the subject of demand flexibility (demand side management and demand response) are analyzed and summarized in a meta study. The analysis forms the basis for future work in Cluster IV and provides cross-cluster information about the status quo of market structures and regulatory framework conditions. In addition to the systematic processing of the market framework, the scientific literature and already published studies on the subject of demand flexibility (demand side management and demand response) are analyzed and summarized in a meta study. [less ▲]

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See detailCompensating Balancing Demand by Spatial Load Migration : The Case of Geographically Distributed Data Center
Thimmel, Markus; Fridgen, Gilbert UL; Keller, Robert et al

in Energy Policy (2019), 130

The increasing share of renewables confronts existing power grids with a massive challenge, stemming from additional volatility to power grids introduced by renewable energy sources. This increases the ... [more ▼]

The increasing share of renewables confronts existing power grids with a massive challenge, stemming from additional volatility to power grids introduced by renewable energy sources. This increases the demand for balancing mechanisms, which provide balancing power to ensure that power supply always meets with demand. However, the ability to provide cost-efficient and eco-friendly balancing power can vary significantly between locations. Fridgen et al. (2017) introduce an approach based on geographically distributed data centers, aiming at the spatial migration of balancing power demand between distant locations. Although their approach enables the migration of balancing demand to cost-efficient and/or eco-friendly balancing mechanisms, it will come up against limits if deployed on a global scale. In this paper, we extend Fridgen et al. (2017)’s approach by developing a model based on geographically distributed data centers, which not only enables the migration of balancing demand but also compensates for this migration when it is contradictory between different balancing power markets without burdening conventional balancing mechanisms. Using a simulation based on real-world data, we demonstrate the possibility to exploit the potential of compensation balancing demand offered by spatial load migration resulting in economic gains that will incentivize data center operators to apply our model. [less ▲]

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See detailÜberprüfung der Machbarkeit eines offenen und dezentralen Mobilitätssystems (OMOS)
Fridgen, Gilbert UL; Röhlen, Jörg; Guggenberger, Tobias et al

Report (2019)

The customer requirements for mobility systems are changing. Travelers increasingly expect a carefree travel experience with any starting or destination point ("Seamless Mobility as a Service") - and that ... [more ▼]

The customer requirements for mobility systems are changing. Travelers increasingly expect a carefree travel experience with any starting or destination point ("Seamless Mobility as a Service") - and that with a single booking and billing for all means of transport used. In order to meet this need, the idea of ​​an open and decentralized mobility system is increasingly being discussed, which can integrate the offers of various mobility providers through a common, neutral system. Before such a system can take a concrete form, however, a clear understanding of the opportunities and risks as well as the specific requirements of end customers and mobility providers on such a system is required. The aim of this study is to identify and evaluate the general opportunities and risks of a corresponding system, as well as the general feasibility of the requirements placed on such a system. A multi-method approach was chosen for this purpose. This makes it possible to examine a holistic picture of the requirements of end customers as well as mobility providers and other stakeholders (e.g. technology providers). Records from a workshop with the (associated) partners in the OMOS project and the results of a literature analysis were used as the basis for data collection. To examine the end customer needs, two surveys were carried out with a total of 352 participants, whose questions were derived from practical workshops (survey I) and theoretical models (survey II). In addition, an interview study was carried out with 15 experts to discuss the requirements of various stakeholders, on the basis of which general topics in the field of seamless mobility were also asked. [less ▲]

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See detailFraming Microgrid Design from a Business and Information Systems Engineering Perspective
Sachs, Thomas; Gründler, Anna; Rusic, Milos et al

in Business and Information Systems Engineering (2019), 61(6), 729--744

Microgrids are decentralized distribution networks that integrate distributed energy resources and balance generation and loads locally. The introduction of microgrids can help overcome challenges of ... [more ▼]

Microgrids are decentralized distribution networks that integrate distributed energy resources and balance generation and loads locally. The introduction of microgrids can help overcome challenges of global energy systems. Despite this potential, in the information systems domain, research on microgrids has been limited. The paper on hand studies the design of microgrids for electric energy. Experts we interview state that technological microgrid solutions have been solidly developed; yet, lack of economic and business consideration is stalling their deployment. We argue that research in business and information systems engineering can provide integrated perspectives bridging from technology to markets. Therefore, from an extensive interdisciplinary literature review, we derive a framework that structures microgrid design and may guide information systems researchers. The framework comprises four layers: energy technology and infrastructure, information and communication infrastructure, application systems, and governance. We evaluate the framework in interviews with 15 experts from industry and 3 from academia. The given feedback and examples allow us to iteratively refine the framework, instantiate it, and point out research directions on microgrids in business and information systems engineering. [less ▲]

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See detailSustainability's Coming Home : Preliminary Design Principles for the Sustainable Smart District
Keller, Robert; Röhrich, Felix; Schmidt, Lukas et al

in 14. International Business Informatics Conference (2019)

Consumer trends like local consumption, sharing of property, and environmental awareness change our habits and thereby our surroundings. These trends have their origin in our direct environment, in the ... [more ▼]

Consumer trends like local consumption, sharing of property, and environmental awareness change our habits and thereby our surroundings. These trends have their origin in our direct environment, in the districts of our city or community, where we live and socialize. Cities and districts are changing to “smart cities” and “smart districts” as a part of the ongoing digitalization. These changes offer the possibility to entrench the idea of sustainability and build a platform-based ecosystem for a sustainable smart district. This research aims to identify guidelines in form of preliminary design principles (PDPs) for sustainable smart districts. To achieve this, we conduct a structured literature review. On this basis, we derive and develop PDPs with the help of semi-structured interviews and a non-representative sample of the German population. The resulting nine PDPs describe a first insight into the design of sustainable smart districts. [less ▲]

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