ABSTRACT
The megatrends of population growth, climate change and digital transformation are creating a shifting global environment where the role of cities is growing. This chapter discusses the transformation the authors witness in city administration and operation due to I4.0. In addition, they apply Porter's Five Forces model to analyse and evaluate smart city solutions. Citizens tend to have a utility-oriented view, and the “smartness” of their consumption is qualified based on the capability of the solution to eliminate citizens' former restrictions, which inhibited the consumption of a service. The development of a park took place with the involvement of the locals. The lower the bargaining power of buyers, the higher the profitability of an industry segment. High-end SC solutions and service quality, product differentiation and high brand awareness build customer loyalty which creates high barriers for new entrants that increases vendor lock-in and the profitability of the industry segment.
