Smart cities are the wave of the future. IoT is also the wave of the future. Together, smart cities that incorporate and take advantage of IoT technology will be at the leading edge of new urban environments.

1. Smart Cities and IoT
White Paper
Richard Hatheway – Catalyst Strategic Marketing

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SYNOPSIS
Smart cities are the wave of the future. IoT is also the wave of the future. Together,
smart cities that incorporate and take advantage of IoT technology will be at the leading
edge of new urban environments.
WHAT IS A SMART CITY?
The concept of ”smart cities” was originally an outgrowth of the Smart Communities
movement in the 1980s and 1990s. The Smart Communities movement was based on
the need to increase the number of available skilled workers for an expanding
information economy, combined with the need to revive and revitalize communities
whose economic base had been destabilized by the information economy.
The first example of a smart community was the Teleport, a joint venture of the Port
Authority of New York and New Jersey that combined two previously separate types of
projects, real estate and telecommunications. The developers were concerned that the
New York / New Jersey region might not be able to capitalize on these new
telecommunications technologies due to the congestion of its airwaves, so the project
on Staten Island included both the construction of a satellite uplink facility and a
surrounding industrial park. According to the developers1
, Teleport was conceived "from
the union of economic necessity and technological innovation". The intent was to stem
the migration of jobs and industry from the area and help rebuild the economy from a
technological base. Combined projects of this sort were one of the primary
characteristics of the early Smart Communities movement. Teleport provided a
commercially successful model for public/private partnerships involving information and
communications technologies.
Projects such as Teleport were described as “hubs of the intelligent city”2
, where
intelligence is described as “attending to and investing in telecommunications
infrastructure in city planning”, and where the infrastructure refers to a system of
computers and networks that manage the flow of information in the city. Building a
teleport project prepares cities for a coming explosion in network traffic that results from
an increase in personal computer use. It also recognizes that residents of cities will
compete for access to the network.
Around this same time, cities developing projects like this began to develop new and
different strategies for how they used and incorporated the information infrastructure.
New projects began to combine technology with the economic interests of the cities,
prompting a shift in focus from the purely technical benefits to including the societal
benefits to be gained.
About this time the term “smart city” came into use, referring to cities that were
beginning to connect their communications and services infrastructures. Realistically
though, all cities are, and have been, “smart”, at least to some degree.

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As cities grow, they develop infrastructure such as roads, delivery systems for
electricity, water and natural gas, telecommunications networks, sewage and waste
removal, and so on. These systems all contribute to the city running more smoothly and
efficiently, aka “smarter”, making it easier for the city to continue to grow, while making it
more livable for the citizens. In the broadest sense of the word, this is a “smart” city.
However, in today’s world smart city typically refers to cities that leverage and connect
their infrastructure to a centralized network. Internet-connected devices and sensors are
scattered throughout the metropolitan area and provide data that is analyzed by the city
to help manage and control city functions and services. This information stream also
makes it easier for city residents to access information and engage various city
services.
Devices and sensors that are internetworked, connected to and managed via the
Internet are collectively known as the ”Internet of Things (IoT).”
WHAT IS IoT?
Although the idea of devices connected to the Internet has been around for several
decades (in 1982, a modified Coke machine at Carnegie Mellon University was the first
Internet-connected device6
), the term the “Internet of Things (IoT)” is a relatively new
term and concept, having been around less than 20 years. Prior to that, what we now
refer to as IoT was more often referred to as “pervasive computing” or “embedded
internet”.
The term “Internet of Things” was coined in 1999 by Kevin Ashton7
during a
presentation he gave to Procter & Gamble. The presentation was based on his work at
the Auto-ID Center at the Massachusetts Institute of Technology with the relatively new
technology known as RFID (radio frequency identification). This presentation described
a system that would link P&G’s supply chain to the Internet.
Over time, IoT came to be generally defined as a system of interrelated, interconnected
physical devices, sensors, actuators, machines, objects, or anything else that are
connected to and send, receive or collect data via the Internet. These devices and
sensors can be attached or connected to literally anything, from sensors in buildings to
cameras on light posts to computing devices to vehicles, and even to human beings.
IoT allows objects to be sensed and/or controlled remotely via the Internet. This process
directly integrates the physical environment with the digital world and makes it possible
to analyze, control, respond to, and manage a physical system remotely across existing
network infrastructures, wired or wireless. The interconnection of these devices enables
automation, increased command and control capabilities, and the ability to proactively
monitor and respond to data on a real-time basis.
For this to take place, all connected devices that transmit data and information via the
Internet must have a unique identifier assigned. This unique identifier is known as a

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Uniform Resource Identifier (URI), and is a string of alphanumeric characters. This
unique identifier then allows the resources to connect to the Internet and operate and
interact across the network.
The ability of literally any device to connect to the Internet is what facilitates the Internet
of Things.
THE CHANGING URBAN LANDSCAPE
As of 2014, more than half of the world’s population (54%) lived in urban areas3
. As of
2015, Europe, South and North America already had 73%, 83% and 82% of their
populations respectively living in towns, cities and urban areas4
. The World Health
Organization predicts that by 2050, 75% of the global population will live in urban
settings5
.
In conjunction with the increase in urban population growth, rural populations are
expected to see a corresponding decrease in population.
The urban population explosion is driven by peoples’ desire to live closer to where they
work. That trend is not likely to change in the near future.
As the population in urban centers increases,
the demand for existing and new services will
see a corresponding increase. Cities are also
under pressure to increase economic growth,
engage more effectively with their citizens
and introduce and utilize new technologies to
make the urban landscape more accessible,
livable, secure, sustainable and economically
sound, while at the same time providing a
vibrant community environment.
What impact will this type of continued
growth and demand for services have on the
city? How can cities take advantage of and
leverage IoT to ensure they can support this
growth?
To meet these expectations, cities must have
the necessary infrastructure in place to
support these new requirements and
challenges.
Cities must transform themselves into “smart cities”.
Urban Area Growth
“Managing urban areas has become one of the
most important development challenges of the
21st century. Our success or failure in building
sustainable cities will be a major factor in the
success of the post-2015 UN development
agenda”
John Wilmoth
Director of UN DESA’s Population Division
- TrendMicro, ‘Securing Smart Cities’, May 30,
2017

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THE IMPACT OF IoT ON CITIES
The Internet of Things will change and impact cities in many ways, from how city
services are delivered to how the city interacts with residents. Because the nature of
this change is so significant, IoT is often referred to as the fourth industrial revolution.
This new technology revolution means capabilities that were unimaginable only a few
years ago are now becoming possible and ultimately, commonplace.
IoT will make it possible for cities to provide new ways to connect and interact with city
systems, services, devices and assets. The flow of data from IoT devices and sensors
will provide the city with real-time awareness and allow control of functions that would
previously have been unimaginable. IoT also provides the city with numerous benefits,
chief among them the ability to connect to multiple city systems and monitor data in
real- or near-real-time. This allows the city to analyze, control, manage and react to
ever-changing conditions across the city in a proactive instead of reactive manner.
Significant improvements in operational efficiency, economies of scale and cost
reductions will also result from the city’s use of this data in real-time. The Internet of
Things will also provide new ways for the city to provide new services, capabilities and
information to city residents that were not possible before.
An IoT transformation will likely impact city infrastructural areas first, such as those
related to utilities (electricity, water, gas), sewage, waste disposal, street lighting and
traffic control systems. These are the primary services and functions the city provides to
residents that are critical to the health and well-being of the city. Optimizing their
efficiency through Internet-connected sensors will allow the city to provide services
more efficiently, respond to issues more quickly, and scale services in ways previously
not possible.
Once the basic city functions and services are Internet-enabled, cities and utilities can
then collaborate to develop and deploy other functions and services that will further
contribute to the health of the city. Services such as environmental and air pollution
monitoring, urban noise level monitoring, electric vehicle charging, and crime monitoring
will all become possible, along with other yet-to-be-determined functions and services.
The Internet of Things will also enable cities to take advantage of advanced
applications, such as enhanced communications, a smart grid, or real-time information
distribution, along with expanding services to citizens. IoT results in improved
efficiencies, responsiveness and accuracy due to the real-time nature of data that is
now able to be transmitted across the Internet.
CHALLENGES OF THE SMART CITY
The use of IoT-enabled devices and sensors, while providing cities with multiple
streams of data with which to develop new capabilities and services, also provides

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numerous challenges. These challenges should be addressed prior to any
implementation of IoT-enabled devices or sensors.
The first and most critical challenge is ensuring the security of the system and data.
Second is ensuring that the relevant data is tracked and captured. The third is that the
data must be able to be analyzed and acted upon in a timely manner. Unless a city can
manage these three challenges, the data may not be useful.
To prevent that situation from occurring, cities must proactively analyze and realistically
evaluate their IT and other relevant infrastructures. While an analysis of this type may
initially result in delays in deployment and implementation of IoT-enabled equipment,
the long-term benefit is that any weaknesses will be identified that could compromise
their systems, the data and its usage.
SUMMARY
Smart cities use data from IoT and other networked devices to monitor and control city
functions and services on a real-time basis. Unfortunately, the existing infrastructure in
many cities is not able to take advantage of the new technologies and capabilities
available in an IoT world. As a result, many cities are not prepared to take the next
evolutionary step in becoming a smart city.
As cities become “smart”, they will need to choose from a variety of technologies and
services that can potentially be provided to their citizens and develop plans for their
implementation. Proactive analysis of and planning for future city requirements and
services will help ensure a smooth transition to becoming a smart city.
1 – Annunziata, Robert, and Robert Catlin, 1986, ‘Teleports and the Intelligent City’, ed. Andrew D.
Lipman, Alan D. Sugarman and Robert F. Cushman. Homewood, IL: Dow Jones-Irwin
2 – Hanneman, Gerhard J., 1986, ‘Teleports and the Intelligent City’, ed. Andrew D. Lipman, Alan D.
Sugarman and Robert F. Cushman. Homewood, IL: Dow Jones-Irwin.
3 – United Nations, ‘World’s population increasingly urban with more than half living in urban areas’,
http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html
4 – World Urbanisation Prospects/LSE Cities, ‘Cities in numbers: how patterns of urban growth change
the world’, https://www.theguardian.com/cities/2015/nov/23/cities-in-numbers-how-patterns-of-urban-
growth-change-the-world
5 – World Health Organization, Global Health Observatory (GHO) data,
http://www.who.int/gho/urban_health/situation_trends/urban_population_growth_text/en/
6 – ‘The "Only" Coke Machine on the Internet’, https://www.cs.cmu.edu/~coke/history_long.txt, Carnegie
Mellon University
7 – Kevin Ashton, "That 'Internet of Things' Thing", RFID Journal, 22