Ovum Warns Smart Cities Inhibited By Slow Rising Of IT-Based Modernisation

The huge and diverse market for ICT-based smart city initiatives is driving a flurry of “smart” and “intelligent” vendor solutions, says Ovum. Yet this market’s potential is being inhibited by immature standards, rigid and siloed infrastructures, limited budgets, and fragmented and politicised decision-making, warns the global analyst firm.

As part of its ongoing research focus on the market potential surrounding smart cities, Ovum finds that while modernisation is crucial for cities to deal with pressing issues such as population growth, climate change, and resource limitations, urban solutions may not emerge quickly enough to keep pace. Vendors are rushing to offer sophisticated solutions to address everything from traffic patterns to crime, public health, and weather. However, Ovum believes that, to be effective, these solutions will have to be informed by comprehensive, accurate, and timely data, in amounts so massive that ICT will be essential.

“ICT cannot solve these problems by itself – plenty of concrete, asphalt, pipe, and wire will also be required – but effective solutions must have ICT at their core,” said Warren Wilson, Lead Energy and Sustainability IT Analyst, Ovum. “These offerings must be capable of collecting, managing, analysing, and responding to vast amounts of data, if they are to be comprehensive and effective in addressing cities’ mounting challenges.”

Ovum’s research classifies digital city solutions in two main categories. The first is large-scale, formal, “top-down” projects, driven primarily by public authorities and developers, and attracting the biggest names in IT, such as Cisco and IBM. The second type, which complements the first, consists of projects that are smaller, more spontaneous, “bottom-up” solutions, aimed at making cities more efficient and livable, for example by improving social interaction, fostering collective action, and providing innovative urban services. However, while investment in both types of solutions is growing, numerous impediments stand in the way of the market achieving its potential, and raise doubts about whether the pace of innovation will be rapid enough to effectively address the myriad pressures that cities face.

“Multiple initiatives will be required to address the major inhibitors; some are under way, but much more effort is needed. Some of the most important requirements involve opening up more data, breaking down silos, broadening stakeholder participation, and avoiding duplicative efforts,” said Wilson.

Ovum believes that solution providers and their urban customers must address these issues together. Cities must also apply intelligence of their own throughout the process of assessing needs, developing requests for proposals, choosing vendors, overseeing implementation, and managing their solutions over the long term. They must also recognise the value of exploiting both top-down and bottom-up solutions.

“Yet, despite some obvious obstacles, things are moving in the right direction,” said Wilson. “Large vendors are adhering to standards and opening up data; application showcases and competitions are sparking creative new solutions; and certain cities are becoming beacons of innovation.”