Smart City orchestration via analytics-driven economic engineering

March 14, 2013

Methods, Research, Tech Insight, Theory

Smart City

The Smart City challenge, at root, is a complex ‘system of systems’ problem. Implementing a point solution such as an electricity Smart Grid, can cause knock-on instabilities if not coordinated and architected in conjunction with overlapping urban designs, such as emerging electronic vehicle transportation initiatives or Smart Cloud installations.


Macro-systemic instabilities can emerge in Smart Cities to the degree that point implementations lack the flexibility and awareness to accommodate and contextualize patterned interactions with overlapping urban systems (across technical, social, and economic contexts).

While software vendors and engineering firms are touting point solutions, the underlying success or failure of Smart City initiatives will depend upon orchestration, not control, approaches. The best orchestration mechanism for complex ‘system of system’ problems is close at hand: market-based approaches.

The attached presentation advocates placing a complex Net Present Value (NPV) economic analysis mechanism as the root orchestrator for Smart Cities system coordination, managed via advanced analytics systems.

A more advanced approach might consider implementing “artificial currency markets” as mechanism for mass social optimization between urban communities and powerful computer analytics solutions, fed data by prolific sensor technology…


1. Coaxing Cooperation: How to bring multiple stakeholders into a network of cooperative trust in order to build and operate a megacity implementation?

– Structured finance / project finance is a proven approach to orchestrating / coordinating megaprojects…
– However, PPP, as per a range of examples, are typically focused on a particular solution, system, or infrastructure implementation (i.e. highway, power plant, wind farm)
– How can we efficiently coordinate ‘a project of projects’ or a ‘fund of funds’?

2. How to orchestrate and manage ‘system of systems’ complexity resulting from a
‘hyperproject’ of megaprojects (i.e. Smart City)?

– Advanced analytics:
• Monitoring
• Forecasting,
• Optimization
– Simulation (Monte Carlo & discrete event)
– Uncertainty valuation / management via decision trees


PAPER LINK:  An Integrated Platform for Smart City Design:

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About SARK7

Scott Allen Mongeau (@SARK7), an INFORMS Certified Analytics Professional (CAP), is a researcher, lecturer, and consulting Data Scientist. Scott has over 30 years of project-focused experience in data analytics across a range of industries, including IT, biotech, pharma, materials, insurance, law enforcement, financial services, and start-ups. Scott is a part-time lecturer and PhD (abd) researcher at Nyenrode Business University on the topic of data science. He holds a Global Executive MBA (OneMBA) and Masters in Financial Management from Erasmus Rotterdam School of Management (RSM). He has a Certificate in Finance from University of California at Berkeley Extension, a MA in Communication from the University of Texas at Austin, and a Graduate Degree (GD) in Applied Information Systems Management from the Royal Melbourne Institute of Technology (RMIT). He holds a BPhil from Miami University of Ohio. Having lived and worked in a number of countries, Scott is a dual American and Dutch citizen. He may be contacted at: LinkedIn: Twitter: @sark7 Blog: Web: All posts are copyright © 2020 SARK7 All external materials utilized imply no ownership rights and are presented purely for educational purposes.

View all posts by SARK7


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