Smart Digitalization in Nordic Cities and Municipalities Through Internet of Things

Per J. Nesse () and Olai Bendik Erdal ()
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Per J. Nesse: Telenor Research and Norwegian University of Science and Technology
Olai Bendik Erdal: Telenor Research and Norwegian University of Science and Technology

Chapter Chapter 2 in Economics and Finance Readings, 2022, pp 33-55 from Springer

Abstract: Abstract The need for digitalization in companies and the public sector became very clear because of the COVID-19 pandemic. In the article, we investigate the business value and challenges that digitalization creates for the municipalities. Next generation tele and data communications technologies such as 5G and Internet of Things (IoT) enable digitalization of working processes as well as interaction with customers and citizens. A comparative study of the EU countries (DESI index) shows that the Nordic region performs best in Europe in terms of digitalization, e.g., development of the 4G/5G grid, Internet use, ICT competence, and access to public digital services. A study of 60 Nordic (Norway, Sweden, Denmark, and Finland) municipalities (NDMI index) shows that the large municipalities score best on the scope and maturity of digital services and the management of academia and industry partners in smart ecosystems. An in-depth survey of eight large, medium, and small municipalities in Norway provides a detailed insight into the work of digitalization and the challenges facing the municipal management. The technical sector (water, sewerage, renovation), together with health and real estate sectors, streamlines working processes and interacts with citizens via Internet of Things (IoT) and other tele and data communications. Increased quality of service, improved living conditions for residents, and business development based on open access to data collected by the municipality are business values reported in these case studies. The small municipalities are active in inter-municipal cooperation to remedy challenges with a lack of ICT expertise and resources as well as the risk of vendor lock-in. In addition, they use digital services developed by the national association of local and regional authorities that increase standardization of the municipalities’ IT systems. Other challenges include inertia in adopting new processes in the municipalities and a lack of IoT standards and business models in cooperation with industry partners. Results are discussed and follow-ups survey studies are suggested in the end of the document.

Keywords: Digitalization; Nordic; Smart cities and municipalities; IoT; Value realization and challenges (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-1720-2_2

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DOI: 10.1007/978-981-19-1720-2_2

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