By Denise A. Valdez
THE cities of Cebu and Davao should consider investing in smart solutions into its infrastructure and services, if they want to become more liveable and sustainable.
McKinsey & Co. partner and co-head of Infrastructure and Real Estate practice Mukund Sridhar said smart solutions are needed in cities like Cebu and Davao to “expand access to services, reaching residents who were once left out.”
“Mid-size cities like Cebu and Davao could benefit most from Smart Cities development by taking an integrated view, and equipping their existing infrastructure with hardware and software solutions to deliver high-value, cost-effective impact,” Mr. Sridhar told BusinessWorld via e-mail.
In its report “Smart Cities in Southeast Asia,” McKinsey Global Institute (MGI) identified mid-sized cities Cebu and Davao as “emerging champions,” along with Hanoi, Phnom Penh and Yangon.
Mr. Sridhar said these cities would require large-scale investments to roll out these smart solutions, and may exceed their financial capacity.
“Cities may choose to prioritize and focus on smaller districts or pilot zones in order to showcase the impact of these technologies,” he said.
The McKinsey executive noted the city government does not have to be the sole funder and operator of each type of service and infrastructure system.
“They have to be able to identify those areas where they can step back and make room for other players, including private-sector companies, utilities and transport firms, universities, foundations, and nonprofits,” Mr. Sridhar said.
He added, “Forming alliances, setting industry standards, and shifting toward open standards and interfaces may help cities move forward at speed and scale.”
PRIME MOVERS
MGI noted Manila, Bangkok, Ho Chi Minh, Jakarta, and Kuala Lumpur are “prime movers,” with existing infrastructure systems in place but are often strained.
“The biggest priority is expanding systems and services to serve more people, which includes reaching segments of the population who lack access today and planning ahead to absorb future growth. Retrofitting existing infrastructure systems with smart technologies (for example, using Internet of Things [IoT] sensors for predictive maintenance on metro lines) can optimize their performance and get more capacity and lifespan out of them,” the think tank said.
“The sheer scale of these cities makes smart city initiatives financially viable even at modest levels of adoption. When prime movers implement smart solutions successfully, they can capture big wins and touch millions of lives,” it added.
MGI said other countries have succeeded in making use of open data to allow private institutions innovate and create technological solutions to the problems it observes in the community.
The government and private sector must work from the perspective of the residents if they want to create solutions that are tailor-fit to the citizen’s needs.
“The entire point of Smart City planning is to respond more effectively and dynamically to the needs and desires of residents, therefore any strategy and prioritization exercise has to start with people rather than technology,” Mr. Sridhar said.
