Business Model for Upscaling Smart City Projects

The development of a viable business model is key for continuation of the project and implementation of the results. Especially projects that depend on external funding or subsidy need to determine from the outset how
they will generate sufficient value and revenue streams to be able to continue the project after the subsidy it ended. Often these projects struggle to come up with a viable business model that can create a pivot point for an autonomous continuation of the project. 

A partner should start the projects with a business model in mind, including how they will create a continuous revenue stream from the project once implemented and scaled up. Usually, a more mature sector or technology can have better, viable and clearer business case. The clearer the business case and business model, the easier it is to find follow-up financing possibilities. Transparency can be an important precondition, for example by open bookkeeping and squaring expenses afterwards.

Some projects create sustainable or social value that is very worthwhile for the city or the neighbourhood but is difficult to translate this value into financial gains for the project partners. It could be interesting to explore how these kinds of values can be translated into actual revenue streams to increase the possibility for successful upscaling.

Reference:

van Winden, W., Oskam, I., van den Buuse, D., Schrama, W., & van Dijck, E-J. (2016). Organising smart city projects: lessons from Amsterdam. Hogeschool van Amsterdam

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