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A smart city is an urban area that uses different types of electronic methods and sensors to collect data. Insights gained from that data are used to manage assets, resources and services efficiently; in return, that data is used to improve the operations across the city. This includes data collected from citizens, devices, buildings and assets that is then processed and analyzed to monitor and manage traffic and transportation systems, power plants, utilities, water supply networks, waste, crime detection, information systems, schools, libraries, hospitals, and other community services.

The smart city concept integrates information and communication technology (ICT), and various physical devices connected to the IoT network to optimize the efficiency of city operations and services and connect to citizens. Smart city technology allows city officials to interact directly with both community and city infrastructure and to monitor what is happening in the city and how the city is evolving. ICT is used to enhance quality, performance and interactivity of urban services, to reduce costs and resource consumption and to increase contact between citizens and government. Smart city applications are developed to manage urban flows and allow for real-time responses. A smart city may therefore be more prepared to respond to challenges than one with a simple "transactional" relationship with its citizens. Yet, the term itself remains unclear to its specifics and therefore, open to many interpretations.

Terminology