Cities that embrace the Internet of Everything (IoE) can create value by saving money, improving employee productivity, generating new revenue (without raising taxes) and enhancing citizen benefits. That's according to a new study from Council Lead Partner Cisco that suggests IoE could generate $4.6 trillion in value for public sector organizations over the next decade. Cities, meanwhile, could see $1.9 trillion of that.
Cisco defines IoE as the networked connection of people, process, data and things, and the increased value that occurs as “everything” joins the network.
“With more of the world’s population moving into urban centers daily, cities must become more flexible and responsive to citizen needs, while making the most of public resources,” said Wim Elfrink, Cisco’s EVP of industry solutions and chief globalization officer. “The Internet of Everything is transforming how cities deliver services and how citizens interact with government.”
Cities can capture the value from IoE by implementing some "killer apps," Cisco suggests. For example:
Smart buildings are poised to generate $100B by lowering operating costs by reducing energy consumption through the integration of HVAC and other systems.
Gas monitoring could generate $69B by reducing meter-reading costs and increasing the accuracy of readings for citizens and municipal utility agencies.
Smart parking could create $41B by providing real-time visibility into the availability of parking spaces across a city. Residents can identify and reserve the closest available space, traffic wardens can identify non-compliant usage, and municipalities can introduce demand-based pricing.
Water management could generate $39B by connecting the household water meter over an IP network to provide remote information on use and status.
Road pricing could create $18Bin new revenues by implementing automatic payments as vehicles enter busy zones of cities, improving traffic conditions and raising revenues.
Cisco calls out Barcelona, Spain as an example of a city that is embracing IoE to offer citizens new services and richer experiences. For instance, Barcelona is using video and collaboration technologies to allow citizens to virtually interact with city hall without having to travel to local offices. It has also implemented IoE solutions in water management, smart parking, waste management and connected buses, all of which help the city save money and improve the quality of service to citizens.