Cross the informatization and data integration challenges

Recently, skepticism around smart cities has grown within the industry. Many cities have invested heavily in smart city initiatives over the years, but the results have been underwhelming. Why is this happening? What are the real challenges in building a truly smart city? Experts have different opinions. Recently, a reporter spoke with Zhao Yingshi, a technical director at Beijing Tongfang Software Co., Ltd., who highlighted that the ultimate goal of a smart city is to create a real-time map of the city’s operations. However, currently, it's still difficult to produce a comprehensive overview of how the city is functioning. The main challenge lies in integrating data from various city information systems.

One major issue is that many smart city projects remain stuck at the information stage. Despite significant investment, some experts argue that smart cities are still more of a concept than a reality. A well-known figure in the industry recently claimed that smart cities are just "new bottles for old wine." Local governments often use the term to justify traditional IT projects, without truly moving toward smarter solutions. This reflects deeper problems: first, many local governments haven’t completed their basic informatization efforts, making it premature to discuss true intelligence. Dr. Wang Wei, deputy director of the Chinese Institute of Electronics’ Center for Consulting and Technology Evaluation, believes that the push for smart cities is sometimes a false premise. He pointed out that some cities in China are still not even fully信息化 (informed), and without a solid information system, it’s hard to build anything smarter on top of it.

Another key challenge is funding. There is no dedicated "Smart City" budget in most local government plans. Although the Ministry of Housing and Urban-Rural Development launched pilot cities, it didn't provide financial support. Local governments already have tight budgets, and smart city projects are often overlooked. As Zhao Yingshi explained, many city leaders either say they have no money or allocate very little, yet expect more. This makes smart city projects financially constrained.

Data integration remains one of the biggest hurdles. Departments often operate in isolated "information silos," with inconsistent standards and limited data sharing. This makes it difficult to build a unified view of the city’s operations. According to Zhao, Tongfang Software aims to create a city operation center that provides an integrated map of the city. However, due to fragmented data sources, only partial insights can be achieved. The problem isn’t just technical; it also involves business practices, such as unclear data ownership and lack of standardized protocols.

Data integration is at the heart of a smart city. Some projects are superficial, focusing on system integration rather than true data-driven intelligence. Zhao emphasized that the difference between system integration and a real smart city project lies in how well data is processed and used. A smart city is not just about installing technology—it’s about using data to make informed decisions and improve urban life. If system integration is like building a house’s frame, then data is the blood that flows through it, bringing intelligence and value.

To achieve effective data integration, Zhao suggested several steps. From a legislative perspective, laws should ensure proper data usage. Governments need to establish mechanisms for data sharing and exchange, and even create a data trading framework to encourage collaboration. Administrative tools may also be necessary in areas where voluntary sharing doesn’t work.

Finally, the government’s role in smart city development is critical. However, when budgets are tight, companies must find new business models. Tongfang Software is exploring ways to integrate technology and capital, supporting local industries and promoting sustainable urban growth. In Zhao’s view, Chinese companies are not only competitive with foreign firms but often better suited to local needs, offering tailored solutions that align with government priorities.