Why is digital transformation essential in building resilience?
Date: 5 Jul 2023
Digital transformation is a key enabler of urban resilience. Future-ready digital solutions can increase the adaptiveness of city management by shortening the time to acquire and respond to information, or by increasing digital access and inclusion for people and businesses. As a result, city residents can contribute to the city’s economic wellbeing through widespread participation in economic activities. Digital inclusion is also catalyzing long overdue human-centric, technologically inclusive cities.
Strengthening collaboration between residents and city government in Veracruz through digital government services
How Ciudad Juarez deployed digital initiatives to combat security challenges faced by vulnerable sections of society
Potential for impact
Digital transformation entails both increasing efficiency of public services and enabling populations – especially disadvantaged groups – to access, use and benefit from Information and Communication Technologies. With digital devices like smart phones, PCs and the Internet, cities can streamline critical functions like education, healthcare, information dissemination and employment opportunities.
SECURITY
Optimized dispatching and synchronized traffic lights could cut emergency response times by 20-35 percent.
E-hailing can reduce traffic fatalities by more than 1 percent by reducing impaired driving.
HEALTHCARE
Technology can empower people to take charge of their health, preventing disease rather than treating it after the fact.
Remote patient monitoring systems have the potential to reduce the burden of healthcare costs in high-income cities by more than 4 percent.
WATER AND WASTE
In many parts of the developing world, the biggest source of water waste is leakage from pipes. Deploying sensors and analytics can cut those losses by up to 25 percent.
RESIDENT ENGAGEMENT
New digital channels for public communication with local officials could double the share of residents who feel connected to the local community, and nearly triple the share who feel connected to local government.
MOBILITY
By 2025, cities that deploy smart mobility applications could cut commuting times by 15-20 percent on average.
Intelligent syncing of traffic signals could reduce average commutes by more than 5 percent in developing cities where most people travel by bus.
PAYMENTS
By increasing digital payments, the average net benefit to consumers, businesses and governments is slightly over 3% of current GDP. Modelling for 100 cities alone shows nearly US$470 billion2 in annual total net benefits.
1Source: McKinsey Global Institute, SMART CITIES: DIGITAL SOLUTIONS FOR A MORE LIVABLE FUTURE, 2018,
2Visa, Cashless Cities: Realizing the Benefits of Digital Payments, 2017
2Visa, Cashless Cities: Realizing the Benefits of Digital Payments, 2017
Top 12 areas of future-readiness (good or very good progress)
City leaders worldwide are embracing the opportunity. A 2022 survey of 200 city leaders3 demonstrates that Digital Transformation and Urban Resilience are the top two predictors of future-readiness.
