Smart cities are already with us. We have already brought huge advances to the way we manage our civic utilities with software-based intelligence to control civil engineering infrastructures. This insight allows workers in white shirts and ties across operations departments to perform predictive supply optimisation for us.

This same insight also allows engineering staff in hard hats to perform physical predictive maintenance and keep machines online longer. Things work better now.

We can already control traffic flows with cameras and smart traffic lights that have a degree of computer reasoning power. We also can construct buildings with smart meters for power monitoring and the ability to run subdued lighting in unpopulated zones. All this has happened, already.

Further still, we can now build new city areas using geographic information systems (GISs) from organisations such as Esri to create 3D mapping plans of everything from skyscrapers to parklands. Using data rich 3D maps of buildings, factories and homes, we can use computers to create so-called “digital twins” of rooms, power plants and the turbines inside them, or whole airports.

These digital twins are working visualisations of the real world, programmed to exist in the correct context of their physical existence; for every smart city, there is a software-based version of it sitting on a computer server. This is the bleeding edge; this is happening now.

The future smart city

So if we already have plastic solar-powered palm trees that pump out wifi (Dubai did this already), then where can smart cities possibly grow next? Where we will we be by 2030? Is it a question of digitising our entire existence?

Chris Pope at service management specialist company ServiceNow thinks the answer is yes; it’s digital empowerment from ground zero.

“As we establish this new era of smart cities, it is fundamental that we understand what has happened at the infrastructure level. In the new digital economy, almost every aspect of business becomes defined as a service,” says Mr Pope.

He illustrates the reality by explaining that a firm’s phone system is now a digitally provided IT service controlled by computers. The amount of food ordered for the staff canteen can also be defined as a controllable IT service. The amount of air pumped through the office air conditioning system is run by an app — and so becomes an IT service that we can turn up, or down.

“When we understand this new approach to codifying and defining our business assets, then and only then can we start to be smart about the way we tune our smart cities for the greater good,” Mr Pope says.

So is all that data going to be good for our health?

If it is, then shouldn’t we be able to create a smarter and healthier world as well? We know that the world population is likely to rise by 50 per cent in the 21st century and reach around 11 billion by 2100, so shouldn’t smart systems give us a means of all controlling our own wellbeing better in the wider realm of digital smart
city healthcare?

“It’s only a matter of time before the data society produces has a profound effect on our level of healthcare we receive, what we eat and how we feel and act as human beings,” says Nathan Berkley, chief executive of connected fitness platform company Muhdo.

Mr Berkley is suggesting that the smart city of 2030 will be designed with sympathy for our human epigenome — the array of chemical markings that surround our DNA and its protein scaffold. The epigenome’s pattern acts like a chemical program to tell our cells which genes to express and which to keep silent. This in turn means that identical strands of DNA can develop into different specialised types for different tissues.

For every smart city, there is a software-based version of it sitting on a  computer server

In simple terms, the way you eat, sleep, exercise and behave can have an impact on the way your DNA develops. With the rise of the wearable fitness trackers and the amount of data we all capture and share relating to our behaviour, activity and mood, it’s reasonable to suggest that healthcare providers in smart cities will soon plug into epigenetics.

“We are already taking this a step further with DNA sequencing and epigenetics markers as personalised health and fitness becomes a reality,” says Mr Berkley. “In the smart city of 2030, healthier people could pay lower insurance premiums. Muhdo is building a machine learning and big data platform
based upon an underlining foundation of science to change the way we live.”

It’s not just about data

The trends for future development are clear. We are digitising the world around us into binary 1s and 0s, as we — the humans — are also now forming part of the new big data layer. Does this mean that the data-driven city of 2030 is some kind of guaranteed smart utopia then?

Not at all, there’s no easy win for smart cities, according to Hitesh Babhania in his role as industry value engineer for German data analytics firm at SAP. “The value of data alone is negligible,” he says. “Local governments require access to the technology which can effectively harness, analyse and deliver insights. In the UK, as with many other developed economies, complex legacy IT systems pose a major challenge to implementing these solutions.”

Mr Babhania suggests that London, for example, could never fully emulate Nanjing in China with its intelligent traffic system. This Chinese mega city was able to start from a blank canvas and build models in which technology enables major advances in areas such as congestion and traffic management.

Ultimately, construction of the 2030 smart city and beyond comes back to the same single word much beloved by city planners for the last half century — planning. Some of what we can achieve by 2030 is straightforward augmentation and enhancement of our existing city infrastructures. Other aspects will require a “rip-and-replace” approach. Defining the shape of our next smart city building blocks is where we are at now, so please expect some drilling, a few extra tall cranes and the occasional whiff of rubble.

View >

What is a Smart City anyways?

Smart cities are ill-defined and misunderstood but their place in the future is certain

Michael R. Wade

By Professor Michael R. Wade
The term “Smart City” has lately become a buzzword for anyone involved in governing a city, yet it remains opaque and relatively ill-defined. Currently, the term is used as a catch-all for various different city development initiatives and concepts.Nevertheless, mayors, department officials, even blue collar city employees have heard of the concept and are starting to realize its potential for cities large and small. According to Mordor Intelligence LLP, the global Smart City market size will grow from approximately $390 billion in 2014 to about $1.4 trillion in the year 2020, at a compound annual growth rate (CAGR) of 20.5% over the forecasted period. Transparency Market Research, meanwhile, believes that the global Smart City market size will reach a total market value of $1.3 trillion by 2019, growing at a CAGR of 14% from 2013 to 2019. Other consulting companies such as Frost and Sullivan predict similar market size and growth figures, which leads to the assumption that the predicted economic impact will be substantial.

Smart City defined

We define a Smart City as an urban area that has become more efficient and/or more environmentally friendly and/or more socially inclusive through the use of digital technologies. The goal of a Smart City is to improve its attractiveness to citizens and/or businesses by enhancing and/or adding city services.

A “city service” can be anything a city offers to its citizens or businesses, including lighting, traffic management, public parking, electricity, etc. In general, most of the activities a city performs can be classified as city services. It is the improvement or the creation of city services with the help of digital technologies that ultimately lets a city become smart.

It is important to note that the range of Smart City projects a city can pursue is enormous, and ever growing. Due to the absence of a universally accepted Smart City definition, quite diverse concepts have been filed under the term “Smart City” with a relatively high degree of freedom. Alexey Ershov, Vice President of Smarter Cities Europe at IBM notes: “Becoming a Smart City is a continuous process, there is no city that has done it all and has nothing more to do.”

Examples of Smart City projects

Smart waste management is an example of a Smart City initiative. A city that implements a Smart waste management solution is ultimately able to reduce costs by emptying trash bins within a city through the use of sensors installed inside the bins to monitor their individual level of trash. Bins are only emptied when full, and no longer on a standardized schedule regardless of fill level. Trash bins therefore have to be emptied less frequently. A secondary impact of such a project is that fewer waste vehicles are circulating on the streets on average, which reduces traffic congestion. Companies that have implemented smart waste management solutions estimate that savings can be up to 50% of the waste management logistics expenditures, while also reducing the number of kilometers needed to empty the bins by 20%.

Another interesting Smart City project example that makes a city more efficient is smart lighting. Smart lighting aims to reduce electricity consumption through the use of intelligent lighting control, such as dimming lights on streets without pedestrians or traffic. Smart Lighting systems are frequently also equipped with central management software that monitors usage and leads to maintenance efficiency. The city of Szczecin, Poland, has installed a connected smart lighting system that allows them to reduce electricity consumption by 50% and overall costs by 70%.

A city that sets up a smart parking solution is usually able to generate higher profits from the same number of parking spaces, as the spaces are used to their full capacity, and the payment system is also more efficient. For instance, the city of Barcelona, Spain, was able to increase its annual parking fee revenues by $50 million following the implementation of a smart parking solution.

Smart City motivation

Smart City projects can even be used to propel the economic development of a region, which is what the city of Nice, France sought to do within the Smart City sector starting in 2008. Its strategy was to build the sector through the creation of supporting infrastructure and by providing grants, encouraging sector-specific investments to establish an economic center of excellence. The ultimate goal is to facilitate the creation of 20,000 jobs within 20 years.

Besides the economic rationale to either save costs or increase revenues, other reasons why cities would like to become “smart” include environmental concerns, augmenting a city’s social inclusiveness, and increasing a city’s business attractiveness.

Whatever their motivations, the Smart City market will only continue to grow and how we classify them will evolve. How “Smart” will your city be in the future?

This is an extract of the research report Smart City: Essentials for City Leaders by the Global Center for Digital Business Transformation, an IMD and Cisco initiative.

Michael Wade is the Cisco Chair in Digital Business Transformation, and Professor of Innovation and Strategic Information Management at IMD. His interests lie at the intersection of strategy, innovation, and digital transformation.

He is Director of the Global Center for Digital Business Transformation and co-Director of IMD’s new Leading Digital Business Transformation program (LDBT) designed for business leaders and senior managers from all business areas who wish to develop a strategic roadmap for digital business transformation in their organizations.

He is also co-director of the Orchestrating Winning Performance Program (OWP).