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 often fallen short of expectations. Why is this happening? What are the main obstacles in building truly intelligent urban environments? Opinions vary, but a recent interview with Zhao Yingshi, Technical Director at Beijing Tongfang Software Co., Ltd., sheds light on some key challenges. Zhao explains that the ultimate goal of a smart city is to create a real-time map of the city’s operations using integrated information systems. However, in practice, it remains extremely difficult to build a comprehensive view of how a city functions. Data from various departments and systems is often isolated, making it hard to achieve a unified understanding of the city's state. Only through effective data integration can city leaders and citizens gain meaningful insights and make informed decisions. One major issue is that many smart city projects are still stuck in the early stages of information technology development. Despite significant investments, some experts argue that smart cities are still more of a concept than a reality. According to Zhao, many local governments continue to focus on traditional IT projects rather than moving toward true intelligence. This reflects a broader problem: many cities haven’t fully completed their basic informatization processes before jumping into smart city initiatives. Another challenge is funding. There is no dedicated budget for smart city projects in most local governments, and even pilot programs lack financial support. Zhao mentions that while the Ministry of Housing and Urban-Rural Development launched a smart city initiative, it did not provide sufficient funding. As a result, many cities struggle to allocate enough resources to implement meaningful smart solutions. Data integration also remains a critical hurdle. Departments often operate in silos, with inconsistent standards and limited data sharing. This makes it nearly impossible to create a unified operational map of the city. Zhao highlights that without proper data harmonization, the value of collected information cannot be fully realized. In addition, the difference between system integration and a true smart city project lies in how data is handled. While system integration may involve setting up infrastructure, a real smart city requires data to flow seamlessly and support decision-making. Without proper integration, the intelligence and value of the city’s systems remain unrealized. To address these issues, Zhao suggests that government bodies should take several steps. From a legislative perspective, laws should ensure responsible data usage. A management framework for data sharing and exchange must be established. Additionally, a data transaction mechanism could encourage participation and promote collaboration across departments. In some cases, administrative tools may be necessary to enforce data integration where voluntary efforts fall short. Looking ahead, the role of the government in smart city development remains central. However, when budgets are tight, companies like Tongfang Software are exploring new business models. Instead of focusing solely on technology, they are looking at sustainable urban development, supporting local industries, and investing in workforce training. Zhao believes that Chinese companies like Tongfang have a unique advantage in smart city projects. They offer customized solutions tailored to local needs, which foreign competitors often fail to match. While foreign firms may focus on individual smart components, Tongfang emphasizes an integrated, city-wide approach. Overall, the path to a truly smart city is complex and requires not just technological innovation, but also strong governance, financial planning, and a commitment to data integration. Only then can cities move beyond the conceptual stage and realize the full potential of smart urban development.