Smart Cities: Leveraging Data and Technology for Improved Urban Life
To wrap up our series exploring the six themes upon which we seek to invest, this week we explore smart cities as a solution to urban intensification and the UN’s 11th sustainable development goal: sustainable cities and communities.
In 2007, humanity reached a new milestone: for the first time in history, more people lived in urban areas than in rural around the world. Globally, over 4 billion people are urban-dwellers, and that number is projected to reach 7 billion by 2050, making up 66% of the world’s population [1]. As the migration from rural to urban living in search of better opportunities shows no sign of slowing down, incomes continue to rise and more people reach the middle class around the world– a pattern especially true in developing regions such as Asia and Africa in cities like Delhi, Shanghai, and Lagos [1, 2]. This rapid increase in urban populations has many positive effects, such as increased economic and cultural activity. And, a more proximal population means reduced transport times and increased productivity overall. However, rapid urbanization also has its challenges–environmentally, socially, and economically– as high population densities put a strain on infrastructure such as housing and mobility, and resources such as energy and water [3]. In order to tackle these challenges and improve the quality of life of their citizens, cities need to become more efficient at managing resources, assets, and services. To do this, they must leverage data and technology and become smarter.
What makes a city “smart”? While there are many definitions, the general consensus is that a smart city collects and analyzes mass quantities of data from its various activities, and uses this data to implement sustainable and efficient solutions to improve citizens’ quality of life [4]. In a smart city, information and communications technologies (ICT), connected devices via the Internet of Things (IoT), and blockchain work together to collect data from daily life, and use it to help governments make better decisions. For example, traffic lights equipped with sensors that convey real time traffic information could improve congestion and flows in city centres by 15-20% on average [5]. This information could be analyzed at a large scale to better understand the city’s needs over time, and implement traffic solutions accordingly, such as congestion charges, or prioritizing public transit. Utility companies can take advantage of smart thermostats, connected via IoT, to help decrease energy waste by up to 15% through initiatives such as dynamic pricing [5]. Blockchain technology could be used by citizens to buy and sell excess energy, like this Brooklyn initiative that successfully traded solar energy between neighbours [6]. In a smart city, high-level public health data identifies demographics with elevated risk profiles for disease, and intervenes via targeted, life-saving messaging about treatment and education right to one’s smartphone [5]. Evidently, data is king.
Smart city-living is not solely about data and using the latest technologies to digitize city operations, but about doing so in a way that purposefully improves the lives of citizens by making city life smarter. Dubai lends itself as a great example of this. In 2015, Dubai announced their mission to become the “Happiest City on Earth”, pinning a transformation to a smart, technology- and data-driven city at the core of achieving their goal. The city invested in many initiatives: city services are now managed through one mobile app, robot cops patrol busy streets in lieu of police, and government runs on blockchain technology– eliminating 1 billion pieces of paper from every-day government transactions and document processing [7, 8, 9]. To keep track of progress, gauge satisfaction, and ensure these initiatives are in-fact helping to improve city life, Dubai developed a measurement tool to collect real time sentiments of residents after they use city services or attend public events [10]. Since 2015, the city’s score on the World Happiness Report has jumped from 28th to 20th place, and it ranks first among Gulf region cities [10]. Dubai is one of the many cities around the world leveraging data and adopting new technologies to become more operationally efficient, in order to keep up with their rapidly expanding populations and improve city quality of life.
It’s clear that there are many ways a city can implement “smart” technologies, and each city will have its own unique problems to solve with smart city solutions. The end goal remains the same, however: improve life for city dwellers, and reduce the impact of rapid urbanization on city infrastructure and governments. Smart city tech and initiatives help to ease our daily commutes, increase our access to quality health care, and reduce incidences of daily crime– all of which have the power to increase our quality of life by 10 to 30 percent [5]. True North recognizes the potential of smart city initiatives, and actively seeks ventures around the world that work in this space.
To learn more about our True North Impact Fund I and how we connect investor capital based on the UN SDGs with impactful ventures around the world, please contact Fund Manager, Kai Chen (kai@truenorthimpact.com).
[2] BBC - The world's fastest growing cities
[3] KPMG - Dubai - a new paradigm for smart cities
[4] CBI Insights - What are smart cities?
[5] McKinsey - Smart Cities: Digital solutions for a more livable future
[6] NPR - How Blockchain Helps Brooklyn Dwellers Use Neighbors' Solar Energy
[7] Smart Dubai - Dubai Now
[8] BBC - Robot police officer goes on duty in Dubai
[9] Smart Dubai - Paperless
[10] Dubai Happiness Agenda - Overview