Smart cities, sustainable progress

The authors outline the strategic planning methodologies needed to create smart cities -- sustainable, socially cohesive places that enhance the quality of urban life. When it comes to transforming cities, the private sector has plenty to contribute.

In the wake of the devastating floods and mudslides that hit Rio de Janeiro in April 2010, the city resolved to develop a $14 million intelligent operations center equipped with the latest technology in disaster management and response. It can control the city’s traffic flow and public transit systems, and handle power outages. Its alert system includes mobile, e-mail and instant messaging services, to provide residents and emergency services with real-time status reports.

Rio de Janeiro is one of a growing number of metropolises using new technology and intelligent resources to streamline their everyday operations and improve the quality of life for their citizens.

These so-called smart cities offer huge opportunities for businesses to partner with public authorities, who are eager to tap the private sector’s expertise in systems design and strategic management.

At IESE’s Center for Globalization and Strategy, we have been studying various urban development models around the world. This article highlights some of our early findings and the key implications for public and private sectors alike regarding the future development of smart cities.

A version of this article is published in IESE Insight Issue 14 (3Q 2012).

This content is exclusively for personal use. If you wish to use any of this material for academic or teaching purposes, please go to IESE Publishing where you can purchase a special PDF version of “Smart cities, sustainable progress” (ART-2152-E), as well as the full magazine in which it appears, in English or in Spanish.