A city is a system of subsystems – such as energy alongside with other aspects of critical infrastructure like mobility, water, buildings and public security systems which will all face considerable efficiency challenges. However instead of optimizing within the silo, future city projects should work towards a holistic solution. Therefore new business models are about collaboration. However the stakeholders involved – such as local and regional governments, inhabitants, private companies, utilities, real estate developers as well as investors – are not used to collaborative work across sectors.
It seems as if city governments are at the very beginning of the thinking process. Fragments of IT based offerings like bike- or car-sharing doesn’t make a city smart. Some cities make “old” data accessible. However the booster for business models that will dramatically change the way of living, working and communicating is when municipalities make real-time data available. Additionally this data will change its character from having one purpose to multi purposes. A circumstance that will impact future business models and foster new market players focusing on services within all industries and steps of the value chains.
Based on ICT, cities can be converted into sensory beings that communicate their needs and responses to certain scenarios in real time and make the physical environment talk back. To efficiently respond to challenges in areas such as mobility, energy and environmental protection, tomorrow’s cities must establish systems capable of handling the massive amount of data by their residents and infrastructure – often generated in different formats.
However data alone doesn’t create value. The challenge is, connectivity of data given, to create value in a usefull way and have actionable information for solutions in the physical world.