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Digitalization of the public sector is being driven by a number of factors. In particular, the concept of "Smart Cities" has become an important driver of this development. This relies heavily on an intelligent infrastructure including the Internet of Things (IoT). But does it make sense for small and medium-sized municipalities to develop this? Is it justified to invest in IoT? (How) can a mediumsized city benefit from it? This paper presents the application of an evaluation scheme for business models of urban IoT applications to answer these questions. The research question focuses on how best practices of urban IoT applications in general and in particular can be evaluated. In order to establish a concrete practical reference we evaluated ten chosen IoT applications for the German city of Herrenberg. 1. Smart Cities and the Case of medium-sized Cities The urbanization of the world has reached an astonishing pace. In Germany, around 77% of the population already live in densely populated areas. This means that our communities are facing new challenges in all urban areas such as urban development and housing, security, transport and pollution, economic growth, social interaction, food and health etc. Resources are already scarce, from raw materials to drinking water and clean air. Our living spaces have become smaller. As a result, growing cities place more complex and dynamic demands on government and administration than traditional communities. Local governments will have to manage this growth and it will put severe strain on municipal finances [1]. Therefore, the concept of smart City is important and city planning gets more and more critical [17]. According to a meta study by the International Telecommunication Union [15], the center of a smart city is the use of modern information and communication technologies (ICT), with the help of which the quality of life in the city, the efficiency of administrative action and the competitiveness should be increased. The Internet of Things plays a central role in this [10]. As part of a large-scale ranking of medium-sized smart cities, GIFFINGER et al. [8] define six properties that intelligent networked cities share: Smart Economy, Smart People, Smart Governance, Smart Mobility, Smart Environment, Smart Living. COHEN [2] has further developed this classification and illustrated it in the so-called Smart City Wheel. But cities of today face increasing challenges when it comes to providing public services with innovative technologies. Local authorities often have great difficulty in driving forward the urgently needed developments towards a Smart City. Tight budgets and a lack of skilled workers also make it 1 Hochschule für Öffentliche Verwaltung und Finanzen, Ludwigsburg 2 Hochschule für Öffentliche Verwaltung und Finanzen, Ludwigsburg ceeegov2020.pdf 393 23.06.2020 09:35:29 394 CEE e|Dem and e|Gov Days 2020 more difficult to invest in innovative municipal IoT applications and benefit from them in the long term [7]. This is where the concept of business models comes in handy. It offers the opportunity to evaluate new business ideas in detail, to review existing activities, and to then make coordinated changes to business activities, strategies and structures through systematic simplification [16]. But does it make sense for small and medium-sized municipalities to develop this? Is it justified to invest in IoT? (How) Can a medium-sized city benefit from it? Therefore, best-practice business models of selected municipal IoT applications were systematically analyzed and described to be able to evaluate them, answering the question: Which IoT applications are suitable for a medium-sized city? This paper presents the application of an evaluation scheme for business models of urban IoT applications to answer this question.

Evaluation of business models of urban IoT-applications for a medium sized city