How Smart Cities Save Money (and the Planet)
Cities around the world are getting bigger, fast. By 2015, there will be 22 metropolitan areas with populations of more than 10 million people. Around the world, some 180,000 people move into cities every day.
And while in the past growth was the main measure of economic success, today growing populations represent a huge challenge for governments and municipal planners. More people means increased consumption of valuable resources such as water and energy, and further burdening already aging and stressed infrastructure. They need more firefighters, police, medical care, and education — and they often need the services before they pay enough taxes to cover their cost.
On the flip side, growing cities also represent a huge opportunity. After all, the population is growing because people can expect to find better jobs and make more money than they could in rural areas and small towns. City dwellers' economic opportunity is magnified by the network effect of having millions of people around them, some of whom will find value in the skills and labor they provide. And cities themselves can benefit when they provide the infrastructure that enables those individuals to thrive economically.
But in the face of shrinking budgets and limited resources, we can't just continue to build new roads, buildings and infrastructure to support growth. Aside from space limitations on creating new roadways or power grids, cities can't afford to shut down existing facilities that people rely on in order to install new ones.
So, instead of striving for physical growth, today a city's success should be measured by how wisely it uses energy, water, and other resources, how well it maintains a high quality of life for its people, and how smart it is in building prosperity on a sustainable foundation. In short, cities have to become much smarter about how they use existing capacity and resources.
Fortunately, advancements in computer, sensor, and networking technology over the past few years are now providing a new lease on life for aging physical infrastructure. For the first time, city leaders can view ongoing events from central command posts rather than relying on confused and scattered reports from ground-based observers. Sensors in roadways can predict congestion, pinpoint issues like leaks in water pipes and help prepare for potential outages in power grids. These systems can be installed at prices far lower than the cost of a new highway or replacement of a water main, because they leverage existing infrastructure, rather than building new.
One way to increase public safety is to expand manpower, but that doesn't always make fiscal sense. Alternatively, cities can use technology as a force multiplier. For example, the Mesa Police Department in Arizona has been able to reduce crime by 25 percent, which can be attributed to their recent smarter policing approach. The department is now able to share information with neighboring cities like Chandler, Gilbert, Tempe, and almost 50 other cities throughout the state of Arizona, essentially tearing down those invisible barriers. This has been invaluable in assisting the Mesa PD fill in the gaps that help its investigators.
Or take waste-water systems, which in some cities, like South Bend, Indiana, can become so overburdened that even occasional downpours will risk mixing public water with untreated sewage. Replacing these systems may be cost prohibitive, but simply making sure they are in full working order can minimize pollution. The San Francisco Public Utilities Commission is retrofitting much of its 1,000-mile waste-water system with sensors such as those long used in the oil-pipeline industry to spot and repair leaky pipes and overflowing storm drains. That means the system is in peak condition when the rain comes.
Additionally, combining advanced technology with economic incentives can give individuals the information they need to change consumption behavior. In dry Malta, where energy is expensive, planners are building a system of smart meters connected to both the energy and water supplies that can give people a much clearer idea of their usage and boost conservation.
Cities can manage traffic using variable toll pricing. To combat congestion and speed traffic flow, cities such as Stockholm and London have instituted congestion pricing for downtown areas at certain times of day. Want to drive into Stockholm at rush hour? Cameras take pictures of your license plate and automatically charge you for the toll. A 2006 pilot of the road charging system revealed that traffic was down by nearly 25% by the end of the trial, resulting in improved traffic flow across the city. Use of public transportation increased and pollution dropped 14%. The results from the trial period were so positive that the citizens passed a referendum to make the system permanent.
The systems become even more valuable when they are linked together. The City of Rio de Janeiro has integrated information from over 30 city departments into one Operations Center for real-time visualization, management and analysis of incidents across the city. The system started out by forecasting flash floods to help improve emergency response in the city's crowded and hilly residential areas, but it now helps the city manage traffic, public safety and other critical city systems as Rio prepares to play host to major events like the 2014 World Cup and the 2016 Summer Olympics.
To make cities work well, they have to be made more intelligent. If they are, they can flourish with the economic development opportunities presented by growth. If not, they will be overshadowed and outpaced by cities that are laying the foundation to prepare for future urban growth.
Michael J. Dixon
Michael J. Dixon, PhD, is the general manager for IBM's global smarter cities business. He leads IBM's vision, strategy, and operations for teams active in cities around the world which are focused on a core element of IBM's long term strategy. The integration of transport, health, public safety, energy, utilities, social services, education, and urban management are at the heart of numerous initiatives.
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