Table of Contents
Authors | Arantxa Herranz, Elvira Esparza
The mantra in the technology sector is that data is the new oil. To justify this categorical statement, one simply has to realize that, in both cases, we have before us a new, powerful, extremely lucrative and rapidly growing market. A circumstance that is also generating distrust given the ensuing risk of the business being managed by just a few -but highly powerful- companies. But oil no longer moves the world: information has become the commodity par excellence. Such is the value and importance of information, that experts claim that companies that are not based on data will simply cease to exist. And not just because large multinational companies have found their business and strength from extracting and analyzing data, but rather because the explosion of technologies such as 5G, the Internet of Things, Big Data and analytics, are enabling us to obtain information from everything. And, as we know, information is power. This can also be applied to cities, whose managers have always wanted to know certain indicators in order to adjust their policies for the benefit of the people. Issues such as the age of inhabitants in a neighborhood, whether people live on their own most of the time, whether they have any special needs, how many pets live in households, the size and distribution of these households, whether residents work in other neighborhoods, what transport systems they use and other demographic issues that are essential for the efficient management of the city.
Seven layers to govern all of them
In fact, the actual concept of Smart City has already given us an indication of this: smart cities shall be those that use the same technologies from all those that we consider to be smart, such as mobile phones. A recent study conducted by PwC, Smart data governance: the key to realizing smart city potential, believes that successful smart cities are built on seven layers of data governance and management: categories, consent, collection, anonymization, storage, access and monetization. This report indicates that, when it comes to using data, cities must be very clear on one thing: they must offer individuals an easy way to understand who will do what with their data, along with clear benefits to them for actively opting into an initiative. That is, trust is the basis that will support other actions. Cities must therefore guarantee the anonymity of the data they work with, and this data must be stored securely.
Public-private collaboration
The PwC report also stresses that public-private collaboration is essential in order to successfully manage a modern city. The processing of a city’s data may be used by companies, enabling them to obtain a new source of income, as well as city councils, by allowing access to all this information. In other words, that data and the collection and processing thereof, may be the ideal opportunity to foster innovation which, in turn, will lead to better services for citizens and local companies. This public-private collaboration must also involve holding public (but thorough) consultations with the population and meetings with smart infrastructure providers and external data governance and privacy experts.
A smart city, not a big brother
In this regard, the consulting firm warns that citizens are increasingly concerned with privacy and confidentiality issues and they do not want to feel like they are living in a permanent big brother. The installation of all sorts of sensors and monitoring tools must be carried out respecting peoples’ privacy, ensuring that cities can continue to have new and more reliable data but maintaining users’ trust. “Top-notch data governance and management is not just a good idea for smart city projects. It may be the critical difference between an initiative that wins stakeholder support, and one that becomes mired in delays and controversy,” according to the PwC report. One of the examples in which the controversy was significant and, yet seems to have been managed correctly, is in the Canadian city of Toronto. There, many inhabitants were skeptical about some of the initiatives being implemented. The solution? To assign the primary responsibility of protecting citizens’ rights to a “trusted, nonpartisan, senior city official,” in this case the municipal secretary. This, according to the PwC report, can guarantee that the governance strategy is implemented correctly to protect the privacy of citizens and ensure the public that their data are secure. In other words, cities are aware that a considerable part of their future as cities lies in data management. Therefore, that management must be conducted in collaboration with lots of other entities and always bearing in mind the beneficiary of all those policies: citizens.
What data do smart cities collect and how is it used?
Smart cities collect vast amounts of data generated directly or indirectly by residents to improve services. Much of this data is collected through sensors without identifying individuals, although personal data is also gathered through the use of certain services. In all cases, the use of this data is regulated by law.
The data collected in a smart city falls into six categories:
Mobility Data
This data comes from mobile phones, GPS devices, connected vehicles, public transportation, transit cards, cameras, and other sources. It is used to manage traffic, plan public transportation, detect congestion, optimize traffic signals, and identify mobility patterns that enable a shift from reactive to predictive traffic management.
Environmental Data
Sensors collect data on air pollution, noise, temperature, and humidity, making it possible not only to detect environmental problems in real time but also to predict certain phenomena and develop more sustainable environmental policies.
Energy Data
This data is collected through smart grids, smart meters, and IoT devices. It provides real-time information on energy consumption, making it possible to identify periods of peak demand, for example, and optimize energy use in buildings and improve energy efficiency by integrating renewable energy sources.
Infrastructure and Public Service Data
This category includes all information related to urban infrastructure and public services, such as street lighting, sewage systems, roads, and waste management. This data is generally used to monitor city resources and perform predictive maintenance, with the aim of addressing potential problems before infrastructure fails.
Social, Demographic, and Administrative Data
This includes data relating to population, housing, employment, economic activity, public services, health, education, and safety. This information is important for smart cities because it supports urban planning and the development of public policies.
Data Generated by Citizens and Businesses
This data is collected through social media, mobile applications, and digital platforms, and also includes information from private companies and mobility platforms. Its importance lies in the insights it provides into residents’ behavior, rather than just the functioning of urban infrastructure.
How does data collected in smart cities affect citizens’ privacy?
The OECD report Smart City Data Governance notes that the technologies used in smart cities can collect information about residents’ locations, movements, and daily activities. By combining this data, it is possible to identify behavioral patterns that reveal where people live, where they work, and how they travel. Although collected data can be anonymized to protect privacy, individuals may still be identified by cross-referencing different sources.
There are also concerns about who uses the data, who has access to it, and whether it is used for its original intended purpose, as smart cities involve public authorities alongside technology companies, telecommunications operators, digital platforms, private organizations, and other stakeholders. People should know when their data is being collected and be able to access it or request its deletion. Nevertheless, initiatives are already emerging, such as those in the Netherlands that promote data sharing.
According to the OECD report, the volume of data generated in smart cities through digital technologies, robotics, drones, and smart devices is growing faster than governments’ capacity to store and process it. This has created a need to develop national data strategies to harness its potential, guide its use in smart city development, and ensure that data is used ethically and transparently. The goal is to protect data privacy and security, as is the case with sovereign data spaces.
The collection of big data in smart cities raises concerns about continuous surveillance of residents, personal profiling, the potential reidentification of anonymized data, data breaches, and a lack of transparency regarding how information is used. These risks can compromise individual privacy if appropriate data governance, security, and protection mechanisms are not in place. The OECD advocates strong data governance to maintain public trust and ensure the responsible use of information.
Images | Dennis Kummer, Hugh Han, Amanda da Silva
