How ‘Hyperconnected’ Cities Get Their Start - Forbes

By Susan O’Connor

Municipal governments using data analytics, artificial intelligence, Internet of Things, and other technologies to modernize their services are evolving from what used to be called “smart cities” into truly “hyperconnected cities,” according to a new report.

Easyturn

Having written a summary of that Oracle-sponsored report last month, I’d like to focus now on specific initiatives that live up to the hyperconnectivity billing and delve into goals those cities hope to achieve.

The research report studied 100 cities and ranked them in three categories—implementers, advancers, and leaders—based on their involvement and sophistication in four key areas:

1. Technology. The vast majority (90%) of hyperconnected cities in the study use technologies such as the cloud, mobile applications, public Wi-Fi, and Internet of Things sensors and networks, while a significant number employ emerging technologies such as artificial intelligence (82%) and blockchain distributed ledger networks (66%). Cloud computing in particular is considered bedrock technology for advancing hyperconnectivity agendas.

For example, the city of Buenos Aires, designated an “implementer” in the study, took a leap forward when it deployed a cloud-based field service system to help city planners lay out construction projects for almost half of the Argentinian capital’s more than 300,000 sidewalks that are badly in need of repair. (See video below.) Engineers now plan routes for crews and make project decisions in real time, while construction workers use a mobile app to determine job location without having to go to a government office.

2. Data and analytics: The increasing use of AI and IoT tools exemplifies the importance hyperconnected cities place on data collection, integration, and analysis. Almost two-thirds (64%) of the cities studied in the Oracle-sponsored report use data analytics to improve performance related to their IT and telecom infrastructures; more than half (56%) to improve their payment and financial systems; and almost half in connection with mobility and transportation projects (49%) and physical and digital security (46%).

As it is for many metropolitan areas, the largest single expense for Northern California’s San Joaquin County is personnel. Looking to rationalize HR costs, officials examined sick-leave data for 7,200 employees using a cloud-based data analytics toolset. The analysis revealed burdensome trends, such as employees saving up sick leave for future payouts, which led county officials to better inform employees about paid time off. Encouraged by what such data research could reveal, San Joaquin expanded its use of analytics to other areas, such as reducing hospital costs and helping its homeless population.

3. Cybersecurity. With so much data at stake, security is a major concern. While the vast majority (92%) of hyperconnected “leaders” consider their cities to be well prepared for a cyberattack, that’s the belief of less than half (46%) of municipal “advancers” and only a very small minority (8%) of “implementers.” Overall, cities’ biggest security fear is cybercriminals (60%), and more than a third (36%) have experienced attacks via malware, spyware, and/or ransomware. For example, the city of Atlanta, ranked an “advancer” in the Oracle-sponsored study, was hit with a ransomware attack in May 2018 that shut down major city services, including access to police records and maintenance requests. For security’s sake, Atlanta moved to cloud-only ERP and HR apps.

4. Citizen engagement. Practically all (97%) of the cities studied offer services and interaction with officials via public websites, and almost as many provide email and mobile apps for that purpose. “Leader” cities proactively communicate their hyperconnectivity initiatives, first to explain their benefits (96%), then to ensure that citizens get involved (80%) and know how to provide input (72%).

Lambeth, one of the 33 “administrative districts” or boroughs of the city of London, needed to cut costs but also to improve services for its 350,000 residents (see video below). Cloud-based technology let Lambeth officials move government services and communications online, better suited to an increasingly mobile-oriented citizenry, while its mobile-enabled workforce helped the borough downsize from 14 government buildings to two, freeing up valuable real estate for development.

The Role of ROI

The Oracle-sponsored study asked participants to estimate returns generated by their hyperconnectivity initiatives. It’s worth noting, though, that more than a third (38%) of the cities in the study think that many of the benefits they realize from their investments are intangible and difficult to measure.

Digital tax filing, business licensing, and payments to workers provide hyperconnected cities with their best returns. Leaders report an average ROI of 7.1% on those projects, whose cost savings or increased revenue are relatively easy to measure. 

Traffic and transit projects are among the first that hyperconnected cities tackle. Nearly all leaders (96%) have implemented real-time traffic management technologies such as speed sensors, traffic cameras, and digital signage, on which they generate a reported ROI of 6.1%. More than three-quarters of leaders use digital public transit payment systems, and they report a 6.5% ROI.

On the other hand, a surprising percentage of hyperconnected cities—leaders especially—seem to be missing out on easy wins. Those that implement digital waste tracking systems, for instance, report an ROI of 6.8%, but less than half (44%) employ them (37% of cities overall). Real-time air quality monitoring promises an even higher ROI of 7%, but only 60% of leaders have undertaken such projects (40% overall).

A significant portion of hyperconnected cities say ROI isn’t the only way to measure success. More than half of leaders, and 43% of cities overall, say they would take on a digital project that generated zero, even negative financial returns if it helped achieve a desired societal goal.

More than a place, the hyperconnected city is a journey. And while starting points may vary, as these cities demonstrate, the objective is the same: using advanced technologies to create a vibrant urban ecosystem that improves day-to-day living and attracts new visitors and business.

Susan O’Connor is director of public sector industry solutions marketing for Oracle.

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