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224 Big Data Analytics for Connected Vehicles and Smart Cities Benefit and Cost Estimation For Smart City Transportation Services 225

Figure 11.1 Word cloud for Chapter 11.

11.3 Introduction

This chapter explores the costs and benefits that are associated with smart city
implementations. The subject is approached in a balanced manner to achieve
benefit and cost guidelines that are of practical value, while managing an im-
portant issue. This is a challenging subject as detailed costs and benefits are
typically identified as a result of a detailed design process. This detailed design
process customizes the implementation to a specific city and a specific set of
circumstances. In the design process, technology choices are made that shape
the intended deployment in a specific direction that is best suited to the city in
question. To determine life-cycle costs that include both capital and operating
costs, it is also necessary to understand operating and maintenance costs for
the services. This chapter aims to provide general guidance that should be ap-
plicable to any smart city.
This book advocates a service evolution approach to determining starting
points and identifying the roadmap for smart city deployment. Continuing
this theme, the 16 smart city services identified in Chapter 5 can also form the
basis for a benefit-cost sketch planning framework for smart city transporta-
tion. Such a model can provide the high-level guidance required to shape and
influence investment patterns for a smart city. It is also recognized that the
analytical approach defined in Chapter 5 can be applied to refine benefit and
cost estimates for smart city services. Therefore, the cost and benefit model de-
scribed in this chapter can also be viewed as a starting point or platform that can
be refined over time as benefit and cost data from smart cities is collected, and
analytics that characterize these are developed. While the benefit-cost frame-
work defined in this chapter has immediate and independent value, it is likely
that the major elements and its value will ultimately lie in setting the founda-
tion for future enhancement and development. The intention is to describe the
framework and the overall approach to estimating benefits and costs for smart