Sustainable Smart City Business Model Framework

Smart City has the potential to improve its people’s quality of life and increase the competitiveness of the regional economy sustainably. Creating successful smart cities involves many different stakeholders from both public and private sectors. Business model shows how a firm creates and delivers value for customers and how it captures profits for the company. Sustainability is important for the design of smart city to improve the environmental health and quality of life for our society. Many investors today are using the Environmental, social and governance (ESG) criteria to screen potential investments. Business models for smart cities must incorporate ESG factors in its design. Because there is currently no generally used method to design an ESG smart city business model, this paper proposes the design of a sustainable framework for the design of a smart city business model. The proposed framework is based on research from ESG factors that impact sustainable development and co-creation of value to meet the different stakeholders of the smart city.