city market participation is not free and requires extensive expenditures in innovation and advance technology . Additionally , smart services should be financially viable and sustainable .
Currently , large-scale information and communication technology ( ICT ) projects , such as establishing data platforms and sensor technology , rely on private funding and skills . Private financing methods can be beneficial from a financial and technological perspective . However , the increased presence of businesses in smart cities may result in a model that favours large business aims over social goals , thereby resulting in social polarisation and inequality .
Thus , the future vision for smart cities must clearly outline which business model is best suited . Only an appropriate business model framework would assist city councils in charge in locating and defining the essential roles of each entity in smart cities . A business model is also needed to identify
and manage stakeholders and the private sector by mapping their roles in providing smart services holistically .
However , the private sector is undoubtedly hesitant to invest in smart cities . The reason is that the smart city market remains in the early stages of development , and businesses often prefer to secure participation through Government assistance , standardisation and clear business models . Thus , appropriate business models enable either public or private services to understand how changes towards a better city may offer new economic opportunities and provide new ways of creating and distributing value that can benefit citizens . Two types of business models that can be used to develop a vision for smart cities are described as follows . 1 . Business Model Canvas ( BMC ) is often utilised to describe a company ’ s rationale and approach to creating , delivering and
Figure 1 : The nine building blocks of Business Model Canvas
Figure 2 : City Model Canvas ( CMC )
13