Smart Communities Can Do Something About The Recession

[Note: This was originally posted on a blog for government leaders, May 11, 2009.]

This week the Intelligent Community Forum (ICF) is holding its annual awards ceremony in New York from among the top seven communities around the world who have been the best examples of using broadband technology. While your community may not be in the top 7, many of you have some degree of broadband networks covering a majority of the residents in your area.

The theme is how the governments of smart communities can respond to a deep recession. I’ve been asked to give the keynote speech and so I thought I should devote this post to some of the ideas I’ll be presenting.

The overriding message is quite simple: take advantage of the data network that exists in your community. Using that network wisely can save money in the government, help your residents reduce their costs and even create more wealth in your community – which, of course, is the best way to get out of a recession.

Your government can save money in several ways. First, those organizations that have integrated the controls of their buildings and other physical facilities into their data networks have been able to achieve substantial savings. The State of Missouri, with a thousand buildings, has been able to reduce its energy costs alone by $20 million a year (about a $1 per square foot). 

You can get greater employee productivity by getting public employees out of the office so they can do their work, which is often in the field. The network lets them work where their tasks takes them – while managers can still observe and even participate in that work when necessary. While telecommuting has been a long standing program of many governments, it is time to think of mobile telecommuting instead.

The Internet and network connectivity you have also makes it possible to provide and to use the best, most cost effective software and services. If your government has strong IT capabilities, then offer these services to others so you can spread your IT costs over a larger base. If your government isn’t strong in IT, then use these services since they may be cheaper than trying to do it yourself.

Of course, readers of this blog will not be surprised that I also think that some paid-for government services can instead be provided for free by letting your residents use the Internet to help each other.

You can help your residents reduce their own costs, especially the time and money they spend in traffic and the money they spend on energy use. There are good examples of local governments offering all sorts of network-based services that reduce the time people spend in traffic. Some have even set up smart work centers, which eliminate the need for people to travel all the way downtown, but enable them to virtually participate in the workplace of their employers. You can also eliminate travel for your residents if government services are available over the Internet and on smart phones, instead of just in government offices. These services can now include videoconference meetings over the Internet and real collaborative interaction between public employees and residents.

Through the use of smart home energy controllers (and, beyond that, smart grids) your residents can save money on their energy use. In the Pacific Northwest, one recent trial found that just letting people use the Internet to know about their energy usage and to do something about that no matter where they were resulted in an average energy cost reduction of 10%.

In various ways, the investments that have been made in broadband have direct economic benefits. For example, one study found that every dollar in broadband investments yielded ten in economic growth. And broadband has direct impact on the growth and profitability of businesses. But you can help those businesses learn how to use the Internet better, even offering assistance with Virtual Trade Missions and videoconferencing. 

For many of you, the broadband network investment has been made. Now is the time to use to respond in recessionary times by reducing your government costs, your citizens’ cost of living and by ramping up economic growth.

© 2011 Norman Jacknis

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