Creating business models for smart cities: a practical framework

Abstract

Smart cities can use business models to evaluate what value they offer citizens by integrating ICT into their infrastructure and services. The article introduces the concept of the 'city business model' and proposes a practical framework for analysing it. The City Model Canvas (CMC)-based on the Business Model Canvas for firms-shows the elements that city councils should consider during the design, delivery and assessment of smart services, including the smart service's expected economic, environmental and social impacts. An example of how the CMC was used to design an ICT platform in Bristol shows its utility as a planning tool.

The Smart City Business Model Canvas—A Smart City Business Modeling Framework and Practical Tool

“…Energies 2019, 12,4798 3 of 17 driven organizations [12], the BMC adapted for encompassing aspects of environmental sustainability and social inclusiveness [13], and the BMC adapted for the European Project, "Replicate", aiming to enhance the transition process to a smart city in three EU cities [14]. It also reviewed smart city trends and business model frameworks designed to encompass co-creation aspects and network centric approaches.…”

“…In the triple-layered business model canvas [13], environmental impact addresses the ecological cost referring to the energy consumption, water use, and emissions based on Life Cycle Analysis research, as well as the benefits 'beyond purely the financial or economic value', i.e., a positive ecological value, which may be a reduction in CO 2 emissions or improved air quality. In the SC-BMC, the environmental impact similarly addresses the potentially negative inherent environmental cost, i.e., greenhouse gas emissions, land use, and energy and water used for the installation and operation or disposal of smart city solutions, i.e., need for raw materials required for building stock retrofitting [14]. Issues such as the embodied energy of the applied solutions should also be considered if we are looking towards a holistic sustainability assessment.…”

“…Additional elements to the Business Model Canvas (BMC) were considered that bring into focus the complex nonmonetary costs, benefits, and risks that are essential for any SC venture and help ventures and the public sector managers communicate these effectively to stakeholders as a new contribution to the development of business model theory.Conceptualizing the framework of a Smart City Business Model Canvas in a generic format to be applicable to the various smart city domains, i.e., energy efficiency in buildings (residential and nonresidential) and energy systems integration (electricity, heating, cooling), mobility and transport, ICT, security, and health [11], this study provided a review on business model frameworks and conceptualized a framework to support practitioners in the transition process toward facilitating smart solutions replication and roll-out. The proposed framework built on the BMC and studied adaptations Energies 2019, 12, 4798 3 of 17 of the BMC found in literature, such as the BMC adapted for mission driven organizations [12], the BMC adapted for encompassing aspects of environmental sustainability and social inclusiveness [13], and the BMC adapted for the European Project, "Replicate", aiming to enhance the transition process to a smart city in three EU cities [14]. It also reviewed smart city trends and business model frameworks designed to encompass co-creation aspects and network centric approaches.…”

Importance of the Innovative Business Models for the Future Success of the Company

“…The authors also inputted that the results of research on value drivers, which comprise the successful model. They are classified as Innovations, lock-in, protection from competition, and efficiency [19,6]. The emphasis is on the key activities and key resources that outline a business area, estimating the output in market attractiveness as well as competitiveness.…”

“…These segments are directly linked to the customer segment and together they form the core of the business itself, remaining segments form a foundation for them to work but without a solid core structure, the model will not work [4]. However, in the studies of Osterwalder and Pigneur [19], it was also argued that Business model should be viewed as a holistic concept that embraces all organisations part: 1. Complex system 2.…”