What is a smart city?

DEFINITION OF SMART CITIES

A smart city is an urban area where technology, data collection, and digital infrastructure converge to improve residents’ quality of life, optimize city services, and increase sustainability. This framework enables cities to operate more efficiently, reduce costs, and respond to emerging challenges. Smart cities use information and communication technologies (ICT) and the Internet of Things (IoT) to collect, analyze, and act upon vast quantities of data in real-time. In other words, a smart city, as defined by the OECD, involves “initiatives or approaches that leverage digitalization to enhance citizen well-being and foster more efficient, sustainable, and inclusive urban environments.” According to the European Commission, a smart city “incorporates digital solutions to make networks and services more efficient for its inhabitants and businesses, thereby advancing beyond traditional technology applications to improve resource use, reduce emissions, and support cleaner urban living. A truly smart city means having urban transport networks that are technologically enhanced, advanced water and waste facilities, and innovative energy systems for building management. Furthermore, it includes safer public spaces, interactive and responsive city administration, and measures to accommodate the needs of diverse populations, including an aging society.”

OVERVIEW OF KEY ELEMENTS: TECHNOLOGY, INFRASTRUCTURE, SUSTAINABILITY AND PEOPLE

TECHNOLOGY

Technology is the foundation of any smart city, enabling intelligent, data-driven urban operations. This layer includes advanced computing power, IoT devices, and robust communication networks, working in harmony to form a seamless digital ecosystem. From real-time data analytics to cybersecurity measures, smart city technologies encompass a range of systems that collect, process, and utilize urban data for better decision-making and resource allocation. The technological infrastructure forms both the “nervous system” and the “brain” of the smart city, allowing continuous monitoring, automation, and forecasting capabilities across essential urban services, from traffic flow to energy distribution. Smart cities leverage technology to enable proactive responses, streamlining operations across multiple city functions, and making urban life safer and more convenient.

SUBCOMPONENTS:

IoT (Internet of Things) Infrastructure

A vast network of interconnected sensors and devices captures real-time data, offering insights into everything from air quality to traffic patterns. These sensors provide constant feedback, allowing cities to make informed adjustments based on current needs and conditions.

Digital Platforms and Systems

Smart cities rely on integrated digital platforms that process and transform data into actionable insights. These platforms support city management by providing comprehensive dashboards for monitoring and analysis. They ensure that raw data is interpreted in a way that is relevant and accessible for decision-makers.

Communication Networks

High-speed connectivity is essential for real-time data sharing, supporting the seamless interaction between city departments, residents, and infrastructure. These networks form the backbone of data flow, ensuring uninterrupted and reliable service delivery.

Emerging Technologies

Artificial intelligence, blockchain, and edge computing represent cutting-edge solutions that empower smart cities. AI enables predictive capabilities and automates various services, while blockchain ensures secure data transactions. Edge computing improves processing speeds and reduces latency by handling data closer to its source.

INFRASTRUCTURE

In smart cities, infrastructure is both a physical and digital entity, merging conventional urban structures with intelligent technologies to improve resilience, efficiency and sustainability. This hybrid infrastructure supports systems that monitor their own performance, adapt to real-time conditions and optimize resource use. Smart infrastructure integrates traditional urban facilities with digital solutions, creating a cohesive system that forms the city’s “skeletal structure”, facilitating both physical and digital services. For instance, smart infrastructure allows cities to respond to traffic congestion dynamically, monitor public transportation schedules in real-time and adjust lighting based on activity levels in public areas.

SUBCOMPONENTS:

Smart Buildings

These buildings incorporate energy-efficient, automated systems for security, lighting, and climate control, which adjust according to occupancy and activity levels. They maximize resource efficiency and enhance occupant comfort, leading to cost savings and a lower environmental footprint.

Transportation Networks

These systems utilize IoT and AI to offer real-time data for optimizing public and private transport. Intelligent systems provide route planning, traffic managemen and scheduling updates, making urban mobility faster, safer and more reliable.

Utility Systems

Smart cities employ advanced utilities, such as automated grids and water systems, to monitor consumption patterns, prevent wastage and respond to supply demands. Such systems are designed for real-time control, enabling seamless service delivery even during high-demand periods.

Urban Planning Integration

Urban planning in smart cities is informed by digital models, simulations and real-time data analytics. This ensures a forward-looking approach, incorporating climate resilience and community needs into city designs and expansions.

SUSTAINABILITY

Sustainability in smart cities integrates ecological responsibility, economic viability and social cohesion to create a resilient urban future. This approach minimizes ecological impact by combining energy-efficient systems, resource management and environmental protection practices. Sustainability encompasses reducing carbon emissions, conserving natural resources and supporting eco-friendly transportation options. Smart cities focus on achieving these goals through green infrastructure, circular economy models and community-driven environmental policies. Ultimately, sustainability is about aligning technological and urban growth with ecological values, ensuring that cities can thrive without compromising future generations.

SUBCOMPONENTS:

Environmental Management

Smart cities use comprehensive systems to track pollution, manage waste and protect biodiversity. These efforts ensure that urban development does not come at the expense of environmental health.

Resource Optimization

Technologies in smart cities facilitate efficient resource allocation, minimizing wastage and conserving vital resources like water and energy.

Climate Resilience

Smart cities adopt adaptive measures to prepare for and mitigate climate-related risks. This includes infrastructure that can withstand extreme weather, as well as policies that promote sustainable development practices.

Sustainable Mobility

Eco-friendly transportation options, including electric vehicles and expanded public transit, reduce emissions and improve air quality, making urban living more sustainable.

PEOPLE

People are at the center of smart cities, ensuring that all technological advancements ultimately serve the well-being of the community. This people-centric dimension prioritizes inclusivity, engagement, and accessibility, making city services user-friendly and responsive to residents’ needs. By enabling citizen participation, smart cities allow for more transparent governance and foster a sense of community ownership. Additionally, this component covers social development, digital literacy and capacity-building initiatives to ensure that residents are empowered to engage with and benefit from smart city services.

SUBCOMPONENTS:

Citizen Engagement

Cities use interactive platforms to involve citizens in decision-making, from budget allocation to community projects. These participatory initiatives create a sense of ownership and make governance more transparent.

Digital Services

Smart cities offer online platforms that allow residents to access public services, report issues and stay informed about city developments, enhancing convenience and engagement.

Capacity Building

Educational programs and skill-building initiatives empower residents to fully participate in smart city developments, bridging the digital divide.

Social Inclusion

This ensures equal access to the benefits of smart cities, addressing the needs of marginalized groups and making the city more inclusive and equitable.

Together, these core components form an interconnected framework where technology enhances infrastructure, infrastructure supports sustainability and all elements improve the quality of life for residents. The balanced integration of these elements is crucial for the long-term success of any smart city initiative.

EVOLUTION OF SMART CITIES

The concept of smart cities has evolved significantly over time, marked by three distinct generational shifts that reflect growing insights into urban development and the role of technology in society. Each phase represents a unique approach to integrating digital solutions within city landscapes, addressing specific challenges and adapting to the evolving needs of urban populations.

SMART CITY 1.0 – THE TECHNOLOGY-DRIVEN PHASE (2000-2010)

The initial phase of smart cities, known as Smart City 1.0, was dominated by a technology-centric perspective, with innovation led primarily by technology companies and industry players. This period focused on the application of digital infrastructure and hardware solutions, such as sensor networks, data centers and automated systems, to enhance the operational efficiency of cities. Although substantial investments were made in building the digital backbone of smart cities, this phase prioritized infrastructure over social impact, often overlooking the direct needs of citizens.

A notable example of this technology-driven approach is Songdo, South Korea, a city built from the ground up with an investment of $35 billion. Songdo incorporated a comprehensive technological infrastructure, including automated waste management, extensive sensor networks, and smart buildings equipped with advanced environmental controls. While Songdo showcased technological sophistication, the city struggled to attract residents and establish a vibrant community. This highlighted a key limitation of the 1.0 approach: technology alone cannot create a truly livable environment without a focus on human and social factors. The 1.0 phase underscored that the success of smart cities requires more than just digital tools; it demands a balanced consideration of the people who live within them.

SMART CITY 2.0 – THE GOVERNMENT-LED PHASE (2010-2015)

The second generation, Smart City 2.0, marked a significant shift in leadership from the private sector to city governments, emphasizing strategic planning and policy-driven development. In this phase, city authorities took a more active role in aligning digital transformation efforts with public policy objectives, seeking to address urban challenges such as sustainability, efficiency and citizen welfare through targeted technological solutions. Governments began to develop comprehensive digital strategies that integrated e-government services, open data initiatives and smart infrastructure planning.

Barcelona serves as a prime example of the 2.0 model. The city government implemented a digital transformation strategy that included smart lighting, optimized parking systems and a network of sensors across the urban landscape. These initiatives not only improved the efficiency of city services but also generated substantial savings—up to €75 million annually—and created new jobs. Barcelona’s approach illustrated how government leadership could effectively harness technology for public good, ensuring that digital advancements translated into tangible improvements for residents. The 2.0 phase demonstrated the power of coordinated planning and underscored the need for public sector involvement to ensure that smart city initiatives align with broader urban goals.

SMART CITY 3.0 – THE CITIZEN-CENTRIC PHASE (2015-PRESENT)

The third and current generation, Smart City 3.0, represents a fundamental shift towards a citizen-centered approach, recognizing that technology must serve the people who live and work within these cities. This phase emphasizes social inclusion, community engagement and participatory decision-making as essential components of smart city planning. Rather than focusing solely on infrastructure or government policy, the 3.0 model encourages collaboration between citizens, city officials and other stakeholders to co-create solutions that enhance quality of life, support equity and address diverse community needs.

Vienna’s Smart City Framework exemplifies the 3.0 approach. Developed through extensive public consultation, the city’s strategy—Smart City Wien 2019-2050—prioritizes environmental sustainability, quality of life and social inclusion alongside technological advancement. Through platforms like “Decide Vienna,” residents actively participate in urban planning and budget allocation, ensuring that community voices are central to decision-making processes. This inclusive approach has led to high levels of citizen satisfaction and social cohesion, making Vienna a model of a truly “smart” city.

The 3.0 phase underscores that smart cities are more than networks and devices; they are collaborative environments where innovation is driven by the needs and aspirations of the people. This citizen-centric approach has led to a broader understanding of smart cities, showing that sustainable urban development requires a balanced integration of technology, policy and community engagement.

CONCLUSION: LESSONS AND LEARNED AND FUTURE DIRECTIONS

The evolution from technology-focused to citizen-centered models illustrates a deepening understanding of what it means to be a smart city. Each phase has contributed valuable insights:

Smart City 1.0 taught that advanced technology alone is insufficient without consideration of human factors.

Smart City 2.0 revealed the importance of government-led strategies that connect digital innovation with public policy goals.

Smart City 3.0 highlights the critical role of citizen engagement and social inclusivity in creating cities that are not only efficient but also equitable and enjoyable places to live.

This progression reflects a holistic approach to urban development, one that balances technological advancement with social well-being, environmental sustainability and a commitment to inclusivity. Looking forward, the most successful smart cities will likely continue to adapt, integrating emerging technologies like AI, blockchain and digital twins while ensuring that these advancements align with the complex and evolving needs of urban populations.

The Anatomy of a Smart City: This infographic provides a comprehensive overview of smart city components, including infrastructure, technology, and citizen engagement: https://www.visualcapitalist.com/anatomy-smart-city/

KEY TERMS - GLOSSARY

1. Internet of Things (IoT)

A network of interconnected devices that collect and exchange data in real time. IoT is foundational for smart cities, supporting applications like smart lighting, air quality monitoring and traffic management.

2. Data Analytics

The process of examining data to gain insights and support decision-making. In smart cities, data analytics helps optimize services like traffic flow, energy use, and public safety.

3. Citizen Engagement

Involvement of residents in city decision-making processes. Smart cities use platforms to enable active citizen participation in urban governance and community projects.

4. Smart Mobility

Transportation solutions that use technology to improve urban mobility, reduce emissions and enhance convenience, such as real-time public transit tracking and electric vehicles.

5. Sustainability

Practices that support long-term ecological health, social inclusion and economic stability. In smart cities, this includes energy-efficient systems, resource optimization and eco-friendly infrastructure.

6. Smart Building

A building with automated systems for managing energy, lighting and security to increase comfort and efficiency while reducing environmental impact.

7. Open Data

Publicly accessible data that promotes transparency and allows for community involvement in innovation and problem-solving within the city.

EXERCISE / ACTIVITY

DESIGN YOUR IDEAL SMART CITY

Objective:

Young participants will apply what they have learned by designing their own “smart city” with emphasis on sustainable practices, technology integration and citizen well-being. This exercise will foster critical thinking, collaboration and decision-making skills while reinforcing the concepts covered in the module.

Activity Outline

Group Formation and Role Assignment (10 minutes)

Divide participants into small groups, each representing a city planning team.

Assign each group member a role:

Mayor: Oversees the project and ensures citizen well-being is a priority.
Technology Officer: Focuses on integrating digital tools and networks.
Environmental Planner: Prioritizes sustainability in infrastructure and policies.
Community Liaison: Ensures that citizens are involved in planning and decision-making.

Smart City Elements Brainstorming (15 minutes)

Each group identifies key components they want in their smart city, based on the four main elements discussed in the module: Technology, Infrastructure, Sustainability and People.

Groups use a checklist of possible smart city features, such as IoT for traffic management, smart grids for energy, open data initiatives, sustainable transport and community engagement platforms.

City Planning Phase (20 minutes)

Using a large sheet of paper or an online collaborative tool (e.g., Miro or Jamboard), each group maps out their smart city.

Participants design neighborhoods, public spaces, and essential services, ensuring each element (Technology, Infrastructure, Sustainability, and People) is represented.

The Technology Officer adds digital infrastructure elements, such as IoT sensors, open data platforms, and AI systems.

The Environmental Planner integrates sustainable practices like renewable energy, waste management, and climate resilience strategies.

The Community Liaison incorporates interactive citizen engagement methods, such as online portals and participatory budgeting.

Present and Discuss (10 minutes per group)

Each group presents their smart city, explaining their design choices, how they balanced technology with sustainability, and ways they engaged the community.

After each presentation, other groups ask questions or give feedback, focusing on the city’s inclusivity, efficiency, and environmental impact.

Reflection and Feedback (10 minutes)

Groups reflect on what they learned, how they made decisions as a team, and any challenges they encountered in balancing different priorities.

The facilitator summarizes key points and reinforces the learning outcomes: integrating smart city elements, prioritizing sustainability, and considering the well-being of citizens.

Learning Outcomes Addressed:

Understanding Smart City Components: Participants actively apply their knowledge of technology, sustainability, infrastructure, and community involvement.

Decision-Making and Critical Thinking: Teams must evaluate trade-offs between resources, technology, and citizen needs.

Collaboration and Communication: By working in roles, participants practice teamwork and appreciate the interdisciplinary nature of city planning.

Citizen-Centric Planning: Teams focus on designing cities that prioritize the well-being and active participation of their residents.

QUIZES

Quiz 1

Quiz 2

LINKS TO EXTERNAL ADDITIONAL RESOURCES (AT LEAST 5 ITEMS)

“Smart Cities” Course by The Open University

This free course introduces the concept of smart cities, covering topics like urbanization, systems thinking, citizen engagement, infrastructure, technology, data, innovation, leadership, standards, and measurement.

https://www.open.edu/openlearn/course/info.php?id=12221

“Smart Cities for Sustainable Development” by the World Bank Group

This course explores innovative approaches to urban development using data, technology, and stakeholder collaboration to create sustainable, efficient, and citizen-centric cities.

https://www.classcentral.com/course/sustainable-development-world-bank-group-smart-ci-52907

IEEE Smart Cities Resource Center

Access technical resources, videos, documents, and more to enhance your education and professional development in smart city technologies.

https://resourcecenter.smartcities.ieee.org/

Global Smart Cities Alliance Resource Library

Browse case studies, models, and solutions on how cities and partner companies are shaping their smart city governance policies.

https://www.globalsmartcitiesalliance.org/resources

“Introduction to Smart Cities” Resource List

A curated list of books and online courses that delve into various aspects of smart cities, offering deeper insights into the subject.

Resources – Introduction to Smart Cities