Deloitte – “We need to move away from big master plans”

What makes a city smart?

Falk Streubel: For me, a city is smart when three objectives are achieved: First, the simplification of processes; second, improved networking among stakeholders within the city; and third, the security of the entire urban ecosystem against external threats such as cyber risks.

Nina Freund: Digital projects have always existed. What is new is the intelligent connection of existing systems. For example, linking rainwater management with the tree register creates added value. It is precisely this networking that makes a city smart.

Why are smart city projects particularly ­relevant for Germany?

Nina Freund: Smart city projects are implemented at the municipal level and are therefore experienced most directly by citizens. A smart city can bring about visible improvements in everyday life and strengthen the sense of community.

Falk Streubel: Many projects are created top-down because funding is available at the time. It is important to incorporate existing best practices and benchmarks. Within the administration, a smart city project can be a catalyst because it brings organizational units together.

How can we ensure that all citizens are truly included?

Falk Streubel: It requires communication on equal terms and patience. When citizens recognize the added value for themselves, their willingness to participate increases significantly.

Nina Freund: One example is traditional participation formats. Evening meetings in the town hall – that’s no longer enough today. Younger people are reached better with flexible formats, such as QR codes on flyers or participation campaigns at a city festival. Participation must also be concrete: You ask those to whom the issues are relevant.

An important aspect is the connection between smart cities and sustainability. Can these two future-oriented topics be intelligently linked?

Nina Freund: Absolutely. There are numerous examples of this. For example, smart waste containers report when they are full so that collections can be planned more efficiently. Or when it comes to climate adaptation: Cities are turning into sponge cities to absorb heavy rainfall. Intelligent sewage systems can report when they are in danger of overflowing. Energy management in buildings is just as important. This not only saves CO₂, but money as well.

Falk Streubel: Another example is linking data. Temperature and air pressure sensors are being installed on public buildings in many cities. This data can be linked to urban climate measurements so that citizens can be given
specific recommendations: “When it’s hot, go to this park, it’s cooler there.” But I don’t define sustainability solely in ecological terms. It also includes the resource-saving use of administrative data. If citizens don’t have to enter the same data ­multiple times, that’s also a gain in efficiency.

Critics argue that smart city technologies themselves consume a lot of energy. How do you respond to this objection?

Nina Freund: Of course technology consumes energy, especially AI solutions. But often, the latest high-end applications are not even necessary. Simply linking existing data together saves resources. The net effect is positive.

What role does data protection play?

Falk Streubel: The legal situation is complex, so people are cautious when it comes to data protection. That’s understandable. But data protection can also be an enabler. A nuanced discussion shows that more is possible than meets the eye.

Nina Freund: Data protection can even create trust. If citizens can see who has accessed their data in a city app, this increases acceptance.

What role do you play as consultants?

Falk Streubel: That varies greatly. We support local authorities with feasibility studies, in a wide variety of projects, or through international best practices. And we help them familiarize themselves with the latest technologies and put them to use.

Nina Freund: Smart city projects proceed in phases: from market research and strategy development to implementation and evaluation. We contribute international examples, help connect the right players, and also develop solutions ourselves, sometimes in collaboration with partners from academia and the tech industry. The key thing is that the added value for people is the main focus.

What are the differences between large and small local authorities?

Nina Freund: Large cities such as Munich have to think in terms of networks right from the outset, because many players are involved – universities, companies, municipal enterprises. Small local authorities, on the other hand, often start with individual projects, such as a fault reporting system. That’s understandable, but it later raises the question: How do I combine the building blocks into an overall concept?

Falk Streubel: At the same time, we are seeing that the financial capacity of many towns and cities throughout Germany has been declining in recent years. Mandatory tasks take priority, while voluntary services and investments in smart city projects are put on hold. Yet it is precisely in these areas that investments in smart solutions would be particularly helpful.

Where do you see the biggest hurdles in Germany?

Falk Streubel: For one thing, there needs to be more cross-departmental cooperation. Departments work independently and don’t communicate enough with each other. This prevents synergies. In addition, there is often a lack of courage to innovate. Support from managers is important here. They can drive the implementation of new ideas.

Nina Freund: In addition, subsidies are difficult to apply for. Many local authorities fail because of bureaucracy. And even when funding is secured, there is often a lack of skilled workers to implement projects.

What recommendations do you give ­local authorities?

Falk Streubel: We must shift away from grand master plans towards small, achievable steps. Pilot projects are valuable if they are sustained. It is crucial to generate early, visible successes that make the topic tangible for both citizens and administration.

Nina Freund: And always get people on board – both administrative staff and citizens. Tech­nology alone is not enough. Participation, transparency and trust are the real factors for success.