Patricia Gurda

Written Communications
Ms. Marisa Wang
March 18, 2021
Smart Cities: Technology-Driven Communities

In the United States, about 80 percent of the population lives in cities, while about 50 percent of
people worldwide live in urban centers[CITATION Kay20 \l 1033 ]. Because cities are a major engine of
economic growth, their future matters to businesses of all types. Today, their future looks to be smart.

A smart city installs sensors to collect data that people and systems use to manage resources and
improve city services[CITATION Mar21 \l 1033 ]. For example, a smart city might use technology to
reduce energy consumption and pollution, ease traffic congestion, and attract investment. The goal is to
provide a higher quality of life for citizens.

The concept of the smart city came to public attention in the early 2000s. 1 Since then, cities have
rolled out smart initiatives in three distinct generations. Some cities remain in the first generation, while
others have progressed to the other two.

Smart cities 1.0 – Technology companies present systems to city planners and developers as
solutions for urban problems. The solutions connect buildings, roads, and devices to increase efficiency,
especially through savings in transportation and energy consumption. However, these technology-driven
innovations omit citizen participation.

Smart cities 2.0 – In this generation, city planners take the lead to determine how technology can
improve quality of life. For example, the city of Columbus, Ohio, worked with a power company to
create stations for charging electric vehicles. The city’s goal was to create insentives for people to buy
and use electric cars and shared ride systems.

Smart cities 3.0 – Instead of having technology or city administrators set the agenda for smart
development, the third generation features citizens generating innovations. City managers provide data
collected from sensors and other digital sources, and citizens use the data to spur changes in quality of
life, economic competitiveness, and environmental sustainability.

The third generation of smart cities emphasizes sharing, such as tool-lending libraries for
homeowners, bike-sharing and car-sharing services, and bartering networks for exchanging expertise.

One example of a third-generation smart city is Amsterdam in the Netherlands. City residents worked
with software developers to create an app called Mobypark. Owners of parking spaces can now rent
them to citizens and visitors. The city uses data generated by the app to track parking demand and
forecast traffic patterns.

1
The idea of a new city was introduced in 1974.
 Medellín in Colombia has ambitious smart city 3.0 goals. In a program sponsored by city government,
universities, and social organizations, Medellín uses smart technology to exchange information with its
citizens. Goals include reducing inequities and promoting cooperation. The city provides Internet and
Wi-Fi connections so residents can access government, health, and educational resources. In turn,
citizens suggest improvements to basic services, react to initiatives, and propose ideas and solutions.
Once one of the most violent cities in the world, Medellín has watched its homicide rate drop 70 percent
since 2007[ CITATION Ort201 \l 1033 ].

For businesses, one of the benefits of smart cities are smart workplaces. Data-gathering sensors can
communicate with smart devices to make offices more comfortable and conducive to productivity.
Smart offices are also more secure and efficient for employees, vendors, and customers.
Because smart cities focus on sustainability, businesses in smart cities also participate in energy
conservation efforts. As a result, they reduce costs and incur the favor of customers, who increasingly
consider a company’s record on environmental and social change in their purchasing decisions.
As centers of innovation, smart cities attract innovators, members of the creative workforce that can
transform organizations and encourage economic growth. Businesses depend on these talented
employees.

Finally, smart cities are important to business because cities are important to the economy. As urban
centers continue to expand, they can suffer from the strains of additional population through increased
crime, poverty, traffic, and congestion. Smart cities offer an alternate, more sustainable way to grow and
prosper.