IG1156 City as a Platform Case Study and Success Criteria R17.0.1
- Maturity level: Level 4 - Forum Approved
Created By: Internet of Everything Project
We live in the decade of the platform economy. Over the last decade, the concept of platform business models has been extremely successful in the private sector. The platform business model is different from that of a traditional pipeline business (which is still heavily influenced by Porter’s five forces). A successful platform business connects producers and consumers of services using on a common set of business rules; achieving a “network effect”, where every new user makes the platform more valuable to all other users. The 200 biggest platform companies have a market cap of over $4 Trillion USD and have completely changed the competitive landscape in many industries – with examples such as Amazon, Facebook, AirBnB and Uber leading the charge.
Cities are platforms that power the greatest marketplaces on earth, but cities don’t yet play instrumental roles in the emerging knowledge and data economy. Cities do, however, provide the required fabric for many businesses that couldn’t possibly survive without the concentration of people and assets that exist within the city. Leading cities are now coming to terms with how to create, curate and use data to the advantage of their citizens and businesses. Developments in technology and society mean the time is right for data to become another utility in the city.
We are moving into the century of the City as a Platform. By understanding, adapting and applying the principles of the platform economy, cities can be transformed to become regional or global knowledge hubs and innovation centres. Cities that do this will be able to manage urban challenges and develop citizen-centric services with more insight, precision and transparency. They will attract talent, create jobs and unleash innovation.
New Internet of Things (IoT) applications offer ubiquitous connectivity, big data and analytics and will be critical for the success of Smart City initiatives all over the world. However City managers, smart city solution providers and system integrators recognize that in order to realize the full value of IoT cities these applications require a secure and scalable IoT infrastructure that integrates multiple systems.