Fragmentation a challenge for digitalisation in European cities

Seven in ten European cities in a recent survey said they plan to invest in digital technology upgrades and just over half of those intend to spend between €2 million and €10 million over the next three years.

However, several obstacles remain, from finding the money to policy and procurement.

Telecom company Vodafone commissioned Opinion Matters to survey 550 city representatives in ten European countries about their use of technologies such as sensors, smart streetlights and digital apps.

Almost 90 percent of respondents said their city has begun a digital transformation journey. Three-quarters (72 percent) believe that smart city initiatives have been successful to meet social, environmental and economic policy objectives.

Nine in ten cities with no solutions in place are planning to adopt smart city initiatives in the future.

Lack of funding, legislative barriers and inadequate infrastructure were cited as the main barriers faced by cities.

Underlying these obstacles is a “fragmentation of responsibilities,” the report says, noting that: “Overcoming barriers often requires interventions at different geographic levels and multi-organisation coordination, between city councils, national governments and intergovernmental bodies such as the EU.”

Other challenges cited include privacy concerns, procurement complexity, lack of strategy, and skills gaps.

In a joint foreword to the report, Francisco de la Torre Prados, Mayor of Málaga, and Joakim Reiter, Chief External Affairs Officer, Vodafone Group, wrote: “Reaching a level of digital maturity will require strategic planning, execution and alignment. In addition, adequate funding and infrastructure are needed, and legislative and policy barriers must be addressed.

“Highly complex procurement processes will need to be simplified and learning opportunities provided, in order to address the privacy and safety concerns of those decision makers able to influence the digitalisation of Europe’s cities.”

Maturity

Cities at an earlier stage of technology adoption say they’re more restricted by lack of funding and strategy. As cities progress, legislative, regulatory and policy barriers are increasingly important.

Reiter said: “Smart cities play an essential role in Europe adapting to the biggest challenges of our time like the ongoing energy crisis.

“If all stakeholders across public and private sectors can pull together to prioritise the development of innovative technologies, adequate infrastructure and digital skills, we can address Europe’s mobility, digitisation and energy efficiency challenges.”

The report identifies key policy areas where action could accelerate technology adoption in Europe. These include developing or adopting frameworks for data-sharing and security and setting up focused taskforces to modernise legislation and processes, such as procurement.

Improving digital literacy and establishing ways to measure success are also highlighted as priorities.

The report identifies five stages of digital maturity – new explorer, pathfinder, foundational architect, integration seeker, and front runner – with the largest proportion of cities (45 percent) falling into the ‘pathfinder’ category.

For pathfinders, the most common technologies implemented include smart traffic lights, smart lighting, smart water management, emergency response optimisation and real-time air quality information. For front-runners, who are the most advanced, the most common solutions include smart video surveillance, real-time air quality information, smart logistics, mobility operating systems and smart traffic lights.

“While the type and extent of technologies adopted are highly dependent on the city’s digital maturity levels, overall IoT solutions, combined with artificial intelligence, digital infrastructure and information systems tend to be the trend amongst most types,” said Reiter.