2018 | Shared Economy In Smart Cities

Category: Urban Area

Industry: Smart Cities

Location: United States

Related to: Future of Urban Living, Urban Cities, Urban Development, Community, Data 

Reviewer: Logan Larkin / BFA Parsons School of Design

Company: McKinsey

Website:  “https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/smart-cities/a>

About: 

As demand for a higher quality of living increase, cities are re-evaluating strategies by increasing the amount of technology that is purposeful for the individual, private companies, and public institutions. By analyzing data, cities are able to better use new technologies in order to cater to the various needs that people need throughout the day. McKinsey published that the first step to making a smarter city is:

The technology base, which includes a critical mass of smartphones and sensors connected by high-speed communication networks. The second layer consists of specific applications. Translating raw data into alerts, insight, and action requires the right tools, and this is where technology providers and app developers come in. The third layer is usage by cities, companies, and the public.

These technologies will help increase the efficiency of, navigation, jobs, health, safety in everybody’s day to day activities. Impacts on an individual scale will also help increase the ability of companies and cities to improve their ability to provide to the various infrastructure, developmental, and cultural needs of citizens. McKinsey Global Institute analyzed over 50 cities worldwide and recorded the comprehensiveness of the technology base, the application of technology, and the usage and satisfaction in each city. In this data set, New York City Ranked in the top three for smart cities employing smarter city functions.

McKinsey states that “Smart cities change the economics of infrastructure and create room for partnerships and private-sector participation.” In the case of a rapidly increasing population, cities need to invest in new infrastructure and transportation systems. However, privately-operated companies can quickly produce solutions to population needs. With actors from the private sector taking care of the initial investments, the government can redirect spending for resources that can only be provided by the government. These allocations of costs between private and public also allow more actors to propose solutions, allowing the application of data to be creative.