Smarter Is Better for U.S. Cities

Urban traffic congestion is one of life’s interminable, indisputable, inevitable pains in the neck.

But what if there was a solution? Traffic provides a great deal of data: number of cars present at any given time and place, highest-density intersections, locations with frequent accidents. These are all pieces of information cities can use to intelligently soothe traffic pains.

While traffic is one of the most visible issues a city needs to address, it is by no means the only one. The good news is that a range of new analytical tools that use data from multiple sources can help cities address some of their major challenges.

“The overall objective of cities has not changed,” says Naveen Lamba, Director of Decision Analytics at Grant Thornton Public Sector. “Just like in the past, cities are looking to be economically vibrant, safe, clean places for people and businesses.”

The smarter city concept provides city leaders more tools to help achieve these objectives, Lamba says. It allows for more informed investments that can be targeted to areas of highest need or greatest benefit.

Lamba says data transparency helps drive this progress. Internally, it can promote collaborative decision-making, optimize resource allocation and reduce redundancies.  

Transparency also yields benefits externally, Grant Thornton Advisory Services Principal Anthony Hernandez says.

Analytical tools can help triage budget allocation to the most important projects. By providing transparency into the prioritization process to residents and businesses, cities can open up a more trusting dialogue with citizens. Then, post-spend, they can share related data to prove a return on investment.

For example, modernized transportation infrastructure could contribute to greater, more efficient traffic capacity, safer roads, increased economic development and decreases in crime within a particular locale.  Smart cities take advantage of analytics in this way, and sharing newfound data makes those cities not only smart but responsible and accountable as well.

“The real strength is in quantifying the benefits of an initiative beyond the immediate and near-term effects,” Hernandez says.

In addition, having adequate data measurement in place lets cities track their progress more effectively and, in turn, make future decisions with greater context.

Lamba says that one challenge for cities is to keep up with the growing expectations of residents. With the pervasiveness of data, smartphones and apps that target virtually every need, citizens have become accustomed to the often lightning-fast responses they receive from private sector companies.

Cities are expected to meet that standard, and many are up for the challenge. In addition to improving employee skills and analytical tools, cities are also forming innovative partnerships with the private sector and with academia, such that they can improve city services that are more responsive and interactive with city residents and businesses.

“The challenge is to keep up with the pace of change,” he says. “Increased collaboration between city agencies and with businesses and academia will help cities benefit from the latest technologies.”

No single entity has all of the skills necessary to transform a city overnight. But through consortia of public, quasi-public and private parties, cities will be able to develop a portfolio of allies whose skills cover a broad gamut.

Deploying these new analytical tools does come at a cost. However, the improvements in efficiencies, faster decision making through analytical tools and higher customer satisfaction all result in better outcomes that can help recover costs quickly and provide a high return on investments.

Hernandez does offer a word of caution. The increased use of connected technologies and associated data does introduce potential vulnerabilities, if the systems are not deployed correctly and lack the appropriate baked-in checks and balances. Issues like cybersecurity, data security and privacy protection must be incorporated, independently validated and continually improved and tested.   

Lamba says Grant Thornton has supported cities through the transition to becoming “smarter.”

“We strive to provide city leaders with simple-to-use decision-support tools that are informed by sophisticated analytics that the user need not interact with directly,” he says.

That goal, the simplification of decisions, drives the smart cities initiative. Real-time decision assistance is already — or will soon be — under the purview of many a local government. The next step, Lamba says, will be when capabilities surpass real-time speeds through predictive analytics.

And that’s where the true tonic for traffic problems lies.

“If you take proactive action and address things ahead of time, a 20-minute delay can become a five-minute delay,” Lamba says. “You can influence an outcome instead of reacting to one.”