=Paper= {{Paper |id=Vol-2556/paper1 |storemode=property |title=The Socio-Technical Impact of the Current Disruptive Technologies on the Smart City Concept Realization |pdfUrl=https://ceur-ws.org/Vol-2556/paper1.pdf |volume=Vol-2556 |authors=Heikki Ruohomaa,Natalia Ivanova,Daniil Podkletnov,Krassimira Ivanova }} ==The Socio-Technical Impact of the Current Disruptive Technologies on the Smart City Concept Realization== https://ceur-ws.org/Vol-2556/paper1.pdf
  The Socio-Technical Impact of the Current Disruptive Technologies
               on the Smart City Concept Realization

    Heikki Ruohomaa                   Natalia Ivanova               Daniil Podkletnov           Krassimira Ivanova
      Häme University               Emperor Alexander I             Emperor Alexander I         Institute of Mathematics
    of Applied Sciences,             St. Petersburg State            St. Petersburg State         and Informatics at the
   Hämeenlinna, Finland             Transport University,           Transport University,        Bulgarian Academy of
 heikki.ruohomaa@hamk.fi            St. Petersburg, Russia          St. Petersburg, Russia              Sciences,
                                    nataliv62@gmail.com             daniil-p007@mail.ru              Sofia, Bulgaria
                                                                                                 kivanova@math.bas.bg


                                                                     The World Economic Forum report [WEF18], following
                                                                     the work of Klaus Schwab, terms the period of
                                                                     accelerating innovation in science and technology as the
                                                                     “fourth industrial revolution”. The technologies of the
                                                                     fourth industrial revolution have generated growing
                           Abstract                                  interest in the opportunities they offer as well as concern
                                                                     about governance, regulation and ethics. Combining
    Humanity is entering an entirely new era, which is               artificial intelligence (AI) with big data – not to mention
    defined by such a phenomenon as the fourth industrial            exponential accumulation of data itself – has created a
    revolution. In this case, society will naturally find            fascinating world of communications and machines
    ways of technological progress. This article discusses           [Sal17]. As a result, the Industry 4.0 framework defines
    the concept of Smart city, which is an effective                 the context for digitalization and industrial Internet of
    junction between human and technology. The article               Things (IoT). This framework contains the connectivity
    also discusses the technologies underlying Smart city,           of devices for effective value chain management using
    as well as an example of the successful connection of            sophisticated data collection as well as data-based
    such technologies in the most important infrastructure           optimization and analysis. For this reason, industry 4.0
    of urban life-transport.                                         also provides a detailed and solid framework for
                                                                     development work related to smart cities [Lom16]
                                                                     because activities related to data collection, interpretation
1 Introduction                                                       and analysis (in support of rational decision-making and
It is not just corporations that are seeing rapid changes due        planning) are central to creating smart city services in the
to major global challenges, such as globalization, climate           value chain network.
change and digitalization. Societies, cities and regions are         The section 2 describes the concept of smart city, and its
also experiencing these changes. Today, 55% of the                   symbiosis with digitization and legislation. The section 3
world’s population lives in urban areas, a proportion that           stops attention on the specifics of some of the modern
is expected to increase to 68 by 2050 [UN18]. Thus, the              technologies included in our lives in connection with
speed and complexity of change also challenge                        Industry 4.0, while the section 4 shows the example of
leadership, organizational structures, R&D activities,               integration of RFID and blockchain in the process of
education and training, and value chains. Ecosystem-                 dispatching control. Section 5 discusses the results and
based development is considered to be an option that will            gives guidelines for further research in this field.
facilitate management of change at governmental,
national, regional and company level.                                2 Smart City Concept Digital Symbiosis
Copyright c by the paper's authors. Use permitted under Creative     The smart city concept derives from the intersection of
Commons License Attribution 4.0 International (CC BY 4.0). In: A.
Khomonenko, B. Sokolov, K. Ivanova (eds.): Selected Papers of the    studies in urbanism and information and communication
Models and Methods of Information Systems Research                   technology (ICT), combined with the dimensions of
Workshop, St. Petersburg, Russia, 4-5 Dec. 2019, published at        creativity and humanity [Nam11]. The smart city concept
http://ceur-ws.org                                                   represents new ways of organizing city functions and
                                                                     urban life for environmental purposes, based on



                                                                                                                                3
digitalization [Öbe17]. In the field of ICT, rapid              interaction and collaboration between city stakeholders
development of software, hardware and networks has              [Van14].
made it technologically possible to connect people and the      Smart city initiatives have recently been merged into a
facilities that serve their everyday needs in cities [Per17].   model to make cities better places to live in. The smart
Thus, the smart city concept brings together technology,        city can thus be considered as an ideal of sustainable
government and different layers of society, utilizing           urban living. It is nevertheless a rather vague concept,
technological enablers, such as the internet of things (IoT)    defined in various ways depending on the context of
and artificial intelligence (AI). These enablers, in turn,      smartness [Öbe17].
facilitate development of various aspects of the smart city,    According to Giffinger & Suitner [Gif15], the concept of
including, e.g., transportation, governance, education,         a smart city should incorporate at least one of the
safety and communications. Thus, different and often            following dimensions:
complementary aspects of a smart city encompass an                 1) smart economy related to, e.g., innovation,
efficiency, technological advancement, sustainability and       entrepreneurship, flexibility or productivity;
social inclusivity [Van14]. General trends in this kind of         2) smart mobility in the context of sustainable
development include the transition from global to local         resource management and transport systems;
production and consumption, a change from competitive              3) smart governance with implications for
to collaborative manufacturing and service provision, and       participation,     decision-making      and     transparent
a move from shareholder-based businesses to multiple            governance structures;
stakeholder viewpoints [Her13].                                    4) smart environment that is understood to provide
The smart city concept integrates the ICT, physical IoT,        attractive, natural conditions and a lack of pollution, as
and IoT-devices to optimize the efficiency of city              well as sustainable management of resources and energy;
operations and services [Per16]. Transportation is an              5) smart living and quality of life; and
important part of the concept of smart cities, and the main        6) smart people in terms of qualifications, creativity,
goal is to ensure safe and effective mobility of individuals    education and flexibility [Van14].
and goods in a way that minimizes the CO2 emissions.            The Internet has transformed the world economic
Thus, transportation should not be viewed as simple             landscape, and this transformation is expected to continue
"moving people and goods from one place to another"             with the IoT. Rifkin confirms this trend in his concept of
[Wen15], but transportation should be understood as a           zero marginal cost, which emphasizes connectivity in his
service, in which timely delivery of people and goods in        anticipation of a collaborative economy that will replace
target destination is emphasized.                               the capital system in its current form – with the IoT as the
Smart city development requires not only technological          main driver [Rif14]. The rapid progress of smart cities is
enablers but also a new way of thinking among cities,           also paving the way to a more collaborative world
businesses, citizens and academia, which includes key           [Kan09].
development stakeholders. In this manner, close
collaboration between universities and the private sector
must be maintained, and the main objective should be
shared learning [Ruo18]. This kind of long-term
cooperation creates a background for new co-innovation
and co-evolution.
The transition towards smarter cities involves changing
and evolving stakeholder roles [Lom16]. Citizens should
no longer be considered as merely users but rather as
stakeholders with an active role; as participants,
collaborators and developers in the city’s activities. In the
same manner, technology should no longer be considered
as an asset but as a dynamic enabler in smart city
development. Moreover, in this framework, business is no
longer viewed as a provider but rather as a collaborative
partner. These new roles, together with the ecosystems
formed by smart cities, establish a framework for a new
kind of development in urban areas. In this framework, it
is important to understand that smart city development          Figure 6: The birth of innovation in digital ecosystem [Ruo19]
does not mean merely providing new digital services for
citizens. Rather, it is a transformative process involving      Figure 6 displays the essential framework for a digital
city structures, governance and functions, as well as           ecosystem in smart city transformation [Ruo19].



                                                                                                                             4
In this framework, the general architectural layer enables       forming triangle – Smart City symbiosis, digitalization
the involvement of private sector partners. At the same          and legislation [Iva19]. New service innovations will be
time, the players in this framework form an ecosystem            born through digitalization and business opportunities
that consists of inhabitants, tourists, companies and the        will increase within circular value chain with better
city itself.                                                     planning.
Technology architecture should be agreed upon.                   On the above mention, it is possible to suppose that
Municipalities should create an open architecture that           triangle consists of the Smart City symbiosis,
private partners can integrate to, but that still meets the      digitalization and legislation in frame of Smart City
needs of their citizens. Again, private-sector partners can      platform. This Smart City symbiosis can involve
support cities in this effort.                                   stakeholders and players at all levels (companies,
In rapidly changing digital environment, it requires clear       authorities of different levels and municipalities, smart
and commonly understood vision. To describe the                  and digital technologies and legislation agencies and
elements and layers, by which digital economy thinking           experts) to develop a methodology and software platform
has support, it is possible to draw a pyramid (Figure 7).        to facilitate the exchange of information that can support
                                                                 Smart City symbiosis networks, create and support pilot
                                                                 projects and replicate their results at local and regional
                                                                 levels.
                                                                 In the same time such platform can support the movement
                                                                 different digital technologies to rural areas as well that it
                                                                 is quite important for both small and long distributed
                                                                 countries. Such model as a challenge has to be design on
                                                                 the triangle, presented on the Figure 8, and supporting the
                                                                 usage of digital technologies for both social issues and
                                                                 business as well.




Figure 7: Layered model of public sector enabling formation of
                      digital economy

The layers describe the operations of the public sector,
which support and enable effective and digitalized
formation of digital economy.
Legislation creates rules for the co-innovation and
operations generated and new business opportunities
(government). It is seen rather as enabler than restrictor.
Legislator has the role of offering common rules, generic
standards and interface regulations, which enable
effective re-use for disposed components and digital
technologies. Governments are able to guide by taxation
                                                                  Figure 8: Smart City symbiosis, digitalization and legislation
the operation to a direction, which clarifies and enables it.                          as forming triangle
The legislation should contain such details that digital
technologies for cities and rural areas are able to used         The concept of smart city is based on information and
successfully. When legislation support and allow the use         everything related to it, its collection, storage, processing,
of digital technologies risks to start business are lower and    and management decisions in different infrastructures of
predictability is better.                                        the city, which were discussed above.
It is possible to find new approach to use for digital
technologies when these technologies deliver them to the
customer by efficient way. For this issue it can be propose
the virtual platform which could combine the information
about different players and from different structures


                                                                                                                               5
3 Current Disruptive Technologies on the                      In this article, we will focus on RFID and Blockchain
Light of Information Activities Schema                        technologies and the added value of their relationshipin
                                                              case of assuring reliable, transparent and reliable
The schema of basic information activities that emerged       dispatching control of goods transport.
at the dawn of the development of computer science in the
mid-60s of the previous century (Figure 1), it continues to   3.1 RFID Technology
dictate the ICT development today.
The difference is that while at the beginning these           RFID (Radio Frequency Identification) – a method of
activities described the simple processes of small            automatic identification of objects in which data stored in
information applications, nowadays, behind each of them,      so-called transponders or RFID tags are read or written by
are technologies that dramatically change our way of life.    means of radio signals. [Lah05]
                                                              Any RFID system consists of a reader and a transponder
                                                              (RFID tag). Most RFID tags consist of two parts. The first
                                                              is an integrated circuit (IC) for storing and processing
                                                              information, modulating and demodulating radio
                                                              frequency (RF) signal and some other functions. The
                                                              second is the antenna for receiving and transmitting the
                                                              signal.
                                                              There are several ways to organize RFID tags and
                                                              systems: by operating frequency; by power supply; by
                                                              type of memory; or by execution. Figure 2 shows the
                                                              example of application of RFID technology in transport.




        Figure 1: Main information activities [Bar66]

  Some of these innovative technologies are:
      • RFID – one of the methods for automatic
        identification and data collection;
      • Blockchain – a new method for storing
        information in the distributed network with
        assuring protection;
      • Data centers and cloud technologies – data
        centers have their roots in the big computer halls       Figure 2: Example of application of RFID technology in
        of the early days of the computer industry.                               transport [RFID17]
        However, with the development of cloud
        technologies, they have radically changed the         RFID tags are already part of our daily lives. This is a
        view of the storage of data and services today;       cheap and effective way to collect and store data that finds
      • Internet of things – system of interrelated           multiple applications and will expand the niches of use in
        computing devices, mechanical and digital             the future. Examples include: tracking goods movement
        machines, objects, animals or people that are         (Walmart is one of the largest users of this technology for
        provided with unique identifiers (UIDs) and the       such purposes); tracking citizens' movements through
        ability to transfer data over a network without       RFID chips in their passports (used in countries such as
        requiring human-to-human or human-to-                 Japan, the United States, Norway, and Spain); automation
        computer interaction.                                 of highway systems for payment of toll taxes; putting in
     • HPC and grid computing – a processing ground           tires for the transmission of traffic information to the on-
        of these ensemble which in combination with the       board computer; locating around cities or historic places
        other technologies became a solid base for            to convey tourist information on mobile phones to visitors
        enormous growing of the last one:                     and so on.
     • Artificial Intelligence.


                                                                                                                          6
3.2 Blockchain Technology                                         A decentralized peer-to-peer blockchain network
                                                                  deprives individual participants or groups of participants
Blockchain falls under the umbrella of Distributed Ledger
                                                                  of the ability to control the underlying infrastructure or
Technology aimed to store, distribute and facilitate the
                                                                  destabilize the entire system. All members of the network
exchange of value between users, either privately or
                                                                  are equal and connect to it using the same protocols.
publicly based on the consensus of replicated, shared, and
                                                                  Participants can be individuals, government agencies,
synchronized digital data geographically spread across
                                                                  organizations or associations of all these types of
multiple sites, countries, or institutions without central
                                                                  participants. From the other side the blockchains can be
administrator or centralized data storage.
                                                                  public, private or federated, when two or more public or
Blockchain is a digital public registry protected from
                                                                  private blockchains communicate each other.
unauthorized access, which keeps records of transactions
                                                                  The system records the chronological order of
in a public or private peer-to-peer network. Distributed
                                                                  transactions with all nodes of the network that have
among all nodes of the network, the registry continuously
                                                                  recognized the validity of transactions through the
records the history of operations with assets between peer
                                                                  selected consensus model. The result is non-cancellable
(of the same order) nodes of the network in the form of
                                                                  transactions agreed upon by all network participants in a
blocks of information. All approved transaction blocks
                                                                  decentralized manner.
are connected in a chain from the initial block to the last
one added, hence the name of the technology —
blockchain (Figure 3).                                            4 Interaction of RFID and Blockchain in
                                                                  case of dispatching control
                                                                  At the moment, the integration of RFID and blockchain is
                                                                  beginning to be applied on water and rail transport in the
                                                                  process of dispatching control. This fits well into the
                                                                  concept of a sociotechnical system, which has both a
                                                                  human factor and a technical basis.
                                                                  The process of dispatching is to manage the transport
                                                                  situation in a certain location, control and monitoring.
                                                                  These processes require input on this traffic situation. The
                                                                  basic object for data collection will be a vehicle, for
                                                                  example, a ship (consider the example of water transport).
                                                                  The tool for data collection will be an RFID tag, which
            Figure 3: Blockchain process [Pol18]                  collects the following data using a radio signal antenna:
Thus, the blockchain acts as a single source of reliable          • The results of observation (receiving the absolute
data, and the participants of the blockchain chain see only         geographical coordinates – latitude and longitude in
those transactions that relate to them. Instead of turning          degrees);
to third parties, such as financial and credit institutions, as   • Course and speed of the vessel (in degrees);
intermediaries in transactions, blockchain nodes use a            • Wind speed (in m/s);
special consensus Protocol to agree on the contents of the        • Depth of water space (in m);
registry, as well as cryptographic hashing algorithms and         • Flow rate (in m/s);
digital signatures to ensure the integrity of the transaction     • Time intervals between two observations (in s);
and transfer its parameters.
                                                                  • Shortest distance to the nearest navigational hazard (in
The consensus mechanism ensures that distributed
                                                                    m);
registries are exact copies, which reduces the risk of
                                                                  • The angles of the demolition of the vessel by the wind
fraudulent transactions because extraneous interference
                                                                    (in degrees).
can occur in many places at the same time. Cryptographic
hashing algorithms, such as the SHA256 computation                This information is transferred to the distributed registry.
algorithm, ensure that any change in the transaction input,       Thus, all nodes of the trusted network that are interested
however slight, will result in a different hash value             in traffic safety, namely: the nearest control centers, other
appearing in the calculation results, indicating that the         vessels, will learn about it at the same time.
transaction input is likely to be compromised. Digital            Due to the blockchain technology, this information is
signatures ensure that transactions are carried out by            hashed, added as a block to the chain of blocks, which
legitimate senders (signed with private keys) and not by          guarantees the integrity of the information. Before it
intruders.                                                        entered the register, no one could change it, and the
                                                                  information came from its sender.



                                                                                                                             7
The procedure for downloading information into the                [Iva19] Ruohomaa, H., Ivanova, N.: From solid waste
blockchain is shown in Figure 4.                                      management towards the circular economy and digital
                                                                      driven symbiosis. IOP Conference Series: Earth and
                                                                      Environmental Science, 337 (1), Art. N: 12032,
                                                                      https://doi.org/10.1088/1755-1315/337/1/012032
                                                                      (2019)
              Figure 4: Downloading procedure                     [Kan09] Kanter, R., Litow, S.: Informed and
                                                                     Interconnected: A Manifesto for Smarter Cities.
The procedure for verifying the integrity of information is          Harvard Business School Working Paper 09-141.
shown in Figure 5.                                                   Boston, MA: Harvard Business School (2009)

                                                                  [Lah05] Lahiry, S: The RFID Sourcebook, IBM Press,
                                                                     312 p., ISBN 5-91136-025-X (2005)

                                                                  [Lom16] Lom, M., Pribyl, O., Svitek, M.: Industry4.0 as
                                                                     a Part of Smart Cities. 2016 Smart Cities Symposium
                                                                     Prague                  (SCSP).               IEEE.
                                                                     doi:10.1109/SCSP.2016.7501015 (2016).

                                                                  [Nam11] Nam, T., Pardo, T.: Conceptualizing smart city
                                                                     with dimensions of technology, people, and
                                                                     institutions. Proc. of the 12th Annual International
                                                                     Digital Government Research Conference: Digital
                                                                     Government Innovation in Challenging Times, ACM,
                                                                     pp. 282-291 (2011)

                                                                  [Öbe17] Öberg, C., Graham, G., Hennelly, P.: Smart
                                                                     cities: A literature review and business network
 Figure 5: Procedure for verifying the integrity of information
                                                                     approach discussion on the management of
                                                                     organisations. IMP Journal, 11 (3), pp. 468-484
5 Conclusion                                                         doi:10.1108/IMP-06-2015-0024 (2017)

This article discusses the concept of Smart city, the areas       [Per16] Peris-Ortiz, M., Bennett, D., Pérez-Bustamante
of urban life that it affects, the description of human and          Yábar, D. (eds): Sustainable Smart Cities: Creating
technical factors. Also, the main technologies underlying            Spaces for Technological, Social and Business
Smart city are considered, their detailed description is             Development. Springer. ISBN 9783319408958
given. An example of successful integration of some                  (2016)
transport technologies in the process of dispatching
control is given.As a result, we can say that once such           [Per17] Pereira, G., Cunha, M., Lampoltshammer, Th.,
technologies have begun to be introduced, then people are            Parycek, P. , Testa, M.: Increasing collaboration and
keeping up with the times.                                           participation in smart city governance: a cross-case
                                                                     analysis of smart city initiatives. Information
                                                                     Technology for Development, 23 (3), pp. 526–553
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