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Smart and sustainable? New business models for smart city services
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Unlike a firm’s business model, which is empirically grounded and aims at articulating specifically how the firm delivers and captures value, a city business model is meant to guide a City Council in articulating how it will accomplish the objectives of its smart and sustainable city strategy. Since there currently no generally used method to understand city business models, the purpose of this report is to present a framework for analysing the business models of the three cities involved in REPLICATE, a Horizon2020 project. This framework—the City Model Canvas—shows the key stakeholders of smart services (who can benefit but who can also be disadvantaged from the transition), the key partners that will help the city deliver smart services and the key resources that can be harnessed to finance new smart services.
This City Model Canvas can be seen as a tool for city governments to articulate their role in the smart city service system and to use it as a starting point for creating new services. In this sense, it is a descriptive framework. Used over time, the city business model can be used to analyse the evolution of the different elements that are important for the development of a smart economy.
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... As both costs and benefits, as well as uncertainties and risks, emerge and end up with different parties, which are not always and automatically involved in the decisionmaking process, city leaders must develop a clear smart city investment agenda and creatively design the business models to share costs, benefits, and risks among public, cooperative, and market actors. 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 CO2 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. ...
Cities are challenged with increasing population growth and need to implement smart solutions to become more resilient to economic, environmental, and social challenges posed by ongoing urbanization. This study reviewed business model development frameworks and developed a practical tool to help cities assess business models by adapting components of the Business Model Canvas (BMC) and adding new ones that operationalize the smart city dimensions. The Smart City BMC (SC-BMC) proposed provides a practical framework that supports developing and communicating a more holistic and integrated view of a smart city business model. It also supports creatively innovating toward more sustainable value creation. As a framework, the SC-BMC bridges sustainable value creation for business model development and smart city innovation.
In this paper we argue that the new public management has been a flawed paradigm for public services delivery that has produced very internally efficient but externally ineffective public service organizations. Subsequently we develop the SERVICE framework for sustainable public services and public service organizations. This framework is rooted within the public-service-dominant business logic and emphasizes the need for a focus on external value creation rather than internal efficiency alone.
Driven by the profit motive of global high-technology companies, in collusion with the trend towards city governance being
wedded to a competitive form of ‘urban entrepreneurialism’, has left little room for ordinary people to participate in the
smart city. The article seeks to make a two-fold critical intervention into the dominance of this corporate smart city model.
It does this by first looking at how we currently understand the smart city and critiques the growing trend towards corporate
and entrepreneurial governance versions. A second form of intervention concerns considering smartness from different perspectives
emanating from small-scale and fledgling examples of participatory and citizen-based types of smart initiatives.
On 4 November 2011, the trademark ‘smarter cities’ was officially registered as belonging to IBM. This was an important milestone in a struggle between IT companies over visibility and legitimacy in the smart city market. Drawing on actor-network theory and critical planning theory, the paper analyzes IBM's smarter city campaign and finds it to be storytelling, aimed at making the company an ‘obligatory passage point’ in the implementation of urban technologies. Our argument unfolds in three parts. We first trace the emergence of the term ‘smart city’ in the public sphere. Secondly, we show that IBM's influential story about smart cities is far from novel but rather mobilizes and revisits two long-standing tropes: systems thinking and utopianism. Finally, we conclude, first by addressing two critical questions raised by this discourse: technocratic reductionism and the introduction of new moral imperatives in urban management; and second, by calling for the crafting of alternative smart city stories.
Public–private partnerships (PPPs) are increasingly seen as a way of innovating the production and management of public services. However, the question of what drives innovation in partnerships has so far received only limited attention. Drawing on network governance and collaborative innovation literature, this article presents the findings from a survey among 260 Danish PPPs. The study shows that while innovation training has a significant effect on achieving innovation in PPPs, factors such as trust and institutional support only affect some innovation types. The findings demonstrate the importance of individual innovation skills and a differentiated understanding of innovation outcomes in PPPs.
The Triple Layered Business Model Canvas is a tool for exploring sustainability-oriented business model innovation. It extends the original business model canvas by adding two layers: an environmental layer based on a lifecycle perspective and a social layer based on a stakeholder perspective. When taken together, the three layers of the business model make more explicit how an organizations generates multiple types of value - economic, environmental and social. Visually representing a business model through this canvas tool supports developing and communicating a more holistic and integrated view of a business model; which also supports creatively innovating towards more sustainable business models. This paper presents the triple layer business model canvas tool and describes its key features through a re-analysis of the Nestlé Nespresso business model. This new tool contributes to sustainable business model research by providing a design tool which structures sustainability issues in business model innovation. Also, it creates two new dynamics for analysis: horizontal coherence and vertical coherence.
The concept of Smart City embraces several definitions depending on the meanings of the word “smart”: intelligent city , knowledge city , ubiquitous city , sustainable city , digital city , etc. Many definitions of Smart City exist, but no one has been universally acknowledged yet. From literature analysis it emerges that Smart City and Digital City are the most used terminologies in literature to indicate the smartness of a city. This Chapter explores the literature about Smart City and Digital City from 1993 to the end of 2012 in order to investigate how these two concepts were born, how they have developed, which are the shared features and differences between them. To accomplish with these goals, three steps were followed: (1) to set up a search strategy for systematic literature review to collect a representative subset of papers about Smart City and Digital City using Google Scholar; (2) to store the selected subset in an ad-doc database to synthesize the literature review; (3) to organize the literature review subset to extract quantitative and qualitative data and information about Smart City and Digital City evolution. The author proposes a literature review taxonomy through five specific analysis: (1) time analysis, to explore the causes of the trend of Smart City and Digital City literature in the latest twenty years; (2) terminology analysis, to examine how and where these two ideas were born and what have been the main events influenced their development; (3) definitions analysis, to select and compare the most cited and validated definitions of Smart City and Digital City trying to identify similarities, differences or overlaps between these two concepts; (4) typology analysis, to investigate if Smart City and Digital City are included into a specific urban strategy pursued by government or if they face specific urban problems without a comprehensive framework; (5) geographic analysis, to understand where are the largest concentrations of Smart Cities and Digital Cities in the world and which are their main characteristics and best practices.
Over the past 30 years, the share of adult populations with college degrees increased more in cities with higher initial schooling levels than in initially less educated places. This tendency appears to be driven by shifts in labor demand as there is an increasing wage premium for skilled people working in skilled cities. In this article, we present a model where the clustering of skilled people in metropolitan areas is driven by the tendency of skilled entrepreneurs to innovate in ways that employ other skilled people and by the elasticity of housing supply.
In response to a steady decline in State funding, universities have become heavily involved in a variety of public private academic partnerships (PPAPs) in such areas as medical research, business incubation, technological commercialization, continuing professional education, and intercollegiate athletics. Despite this trend, research which examines if such partnerships actually enhance university funding is rare within the public organization literature. Given this, we focus on university intercollegiate athletics programs, which represent one of the largest PPAPs ever undertaken by universities, to examine whether PPAP success can potentially enhance university performance outcomes leading to increased funding levels. Such programs represent a PPAP because public, private, and academic entities all come together to form an organization (division 1 football at the bowl subdivision level) which seeks to benefit all three entities through sharing resources and responsibilities. Study results showed that athletic success positively influenced a variety of university performance outcome variables such as enrollments and endowments. While results indicate that PPAP success can enhance university funding, we also suggest modifications that should enhance the chances that PPAPs will be successful.