Prepared for Tomonari S. | Delivered August 27, 2019
Smart City Data and Analysis
To better understand smart city classifications, revenue models, and whether any are focused on depopulation for new business prospecting.
Preliminary research shows there is available information on the classifications or types of smart cities, their revenue models, and at least three smart city initiatives that are focused on depopulation.
SMART CITY CLASSIFICATIONS
According to Metropolitan Intelligence, there are
of smart cities:
Constituent-led smart cities
where citizens have taken the lead to help co-design what they want in a smart city.
Real estate investment smart cities where private sector investors, governments, and developers invest in real estate and "put their own
, technology, and policies in place to take a controlling position in a way that they expect will provide value to all stakeholders."
Private smart cities that are owned by "investors, technology vendors, and real estate developers who install infrastructure, policy, and governance of their own design that
does not include
government services, support systems, or social programs available in current cities."
" smart cities that have leaders with good intentions, but " are
out of sync
with strategies and programs that could save their city."
A 2016 Smart Cities Survey identified three types of smart cities:
(BOF), which is when the municipality or city planners "work closely with an external private partner, which develops the services and deploys the necessary infrastructure to enable the
smart city project
(BOC), which is when government entities "
provide a platform
for smart city development, regulations that the third parties must adhere to, and an initial source of funding."
(MOD), which is when the municipality or city planners "
take full responsibility
for the development of the services and deployment of necessary infrastructure as it relates to their smart city project and goals."
SMART CITY REVENUE MODELS
Based on a smart cities business model survey,
of smart cities rely on federal or central government funding,
rely on supranational organizations,
rely on other public funding,
rely on municipal government funding, and
rely on funding from the technology provider. This adds up to more than 100% because smart cities rely on more than one source of funding.
of smart cities have received some sort of grant,
have obtained loans,
received money from other sources,
received money from equity, and
received money from in-kind contributions.
Some smart cities use
as a main revenue stream, including Kansas City, which has "
throughout a city with maps and local information for restaurants, attractions, events and shopping." The city
sells advertising space
on these kiosks.
Other smart cities are making more government services available online for a
that generates revenue for the city.
Smart cities are also
using the data
obtained by these online services to provide insights at a cost to advertisers and other companies.
According to Deloitte, the following
are currently employed by smart cities:
Financing Model Payments
— The city receives payments from the public sector that "
match agreed cost
(including finance) amounts, allowing full coverage of expenditure and agreed returns."
— The city receives payments from the public sector that are "
linked with the performance
of the private sector operator and availability of the service/asset in line with agreed performance standards."
— The implementation of certain smart services will generate savings for the public sector, which can then "
generate a budget
to help fund the associated assets/service."
— The public sector makes payments to the private sector for use of a smart service.
— Users pay directly for smart services (e.g. road tolls).
Rate Type Payments
— The public sector "
from the public and utilizes these to pay the private sector for specific services/assets (e.g., power generation/water utilities)."
— Users are
charged for each use
of a smart service, which is collected by either the billing system of a mobile operator.
— Users pay a
for smart services regardless of usage amount.
— Revenue is generated by
selling advertising space
to third-party advertisers rather than collecting it from individual users.
SMART CITIES AND DEPOPULATION
Kamiyama Town in Japan has a "
creative depopulation strategy
" that is part of Japan's Future Cities Initiative.
The European Union is exploring
as a way to confront "persistent challenges, such as
and poor quality public services."
This plan aims to "
create habitable villages
where people can and want to live, because innovative and digital solutions improve their lifestyle."
Lapland, Finland's Arctic Smart Rural Community has the mission of stopping "
from rural areas." With this plan "
are enabling the creation of sustainable resources and boosting industrial development, curbing depopulation and giving the region new economic and social opportunities."
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