Smart Cities: How ISO 37106 And ISO 37123 Support Urban Transformation

Introduction
Cities are dealing with fast population growth, climate pressure, strained utilities, traffic congestion and rising expectations for digital public services. Many urban programs fail not because of weak intent but because priorities are unclear, data is fragmented and departments work in silos. Smart city plans can also drift into isolated tech projects that do not improve daily life or build long-term trust.
ISO 37106 and ISO 37123 help cities bring structure to this complexity. ISO 37106 provides guidance for building and operating a smart city framework that aligns strategy, governance, stakeholder engagement and performance. ISO 37123 focuses on indicators for smart cities so progress can be measured in a consistent way. Together they support practical, measurable urban transformation rather than scattered initiatives.
If your city authority, utility or urban development agency wants to evaluate readiness for smart city certification or align performance indicators with internationally accepted frameworks, you can request an audit plan from Pacific Certifications to discuss scope, timelines and evidence requirements.
Quick summary
ISO 37106 offers guidance on how cities can plan and manage smart city transformation with clear governance, stakeholder participation, data-driven decision-making and integrated service delivery. ISO 37123 provides a structured set of smart city indicators that help measure performance across areas such as mobility, energy, water, safety, environment, health and digital services. When used together, these standards help cities set priorities, coordinate across departments and track whether smart initiatives are improving outcomes for residents.
Why ISO 37106 and ISO 37123 matter for smart cities?
Urban transformation often involves multiple agencies, private partners and community groups. Without a shared framework, smart projects can become technology-led rather than outcome-led. Cities may deploy sensors, apps or command centres without clear links to public value such as safer streets, cleaner air, quicker emergency response or better access to services.
ISO 37123 adds the measurement layer. Smart city programs need credible indicators to show what has improved, where gaps remain and whether services are inclusive and resilient. A consistent indicator framework also supports benchmarking across cities and improves the quality of internal reporting. For mayors and city leadership, these standards together help turn ambition into measurable programs that hold up under public scrutiny.
What are the requirements for ISO 37106 and ISO 37123?
These standards are primarily guidance and indicator-focused. In practice, cities treating them seriously will build a structured smart city system that can be audited against defined scope and evidence. Key expectations include:

- Define the scope of smart city activities, including departments, services, geographic boundaries and key partners.
- Identify stakeholder groups including residents, businesses, utilities, emergency services and vulnerable communities and document how their needs are gathered and addressed.
- Create a roadmap that links priority challenges to smart solutions and includes timelines, budgets, risks and dependencies.
- Set policies for data governance covering data quality, interoperability, access rights, privacy protection and
- Establish monitoring and review cycles that use indicators to refine projects, scale successful pilots and stop efforts that do not deliver outcomes.
- Maintain documentation that shows strategy alignment, governance decisions, project outcomes and indicator performance over time.
Tip: Cities often start by selecting a smaller set of ISO 37123 indicators that match top priorities then expand coverage once data collection becomes stable.
How to prepare for ISO 37106 and ISO 37123 implementation?
Preparation should focus on clarifying governance and building a reliable measurement approach. Refer to the points below:
- Conduct a baseline assessment of current smart initiatives, digital infrastructure, data maturity and cross-department coordination.
- Map key city challenges and confirm which ones are priorities for smart city investment over the next planning cycle.
- Define the smart city scope and develop a concise strategy document that links challenges, objectives and intended outcomes.
- Assign a governance structure that includes leadership sponsorship, program management and clear decision rights.
- Run internal reviews on a sample set of services to confirm that indicator data, project records and governance minutes are consistent and audit-ready.
Certification audit
Stage 1 audit: Review of smart city scope, governance structure, strategy alignment, stakeholder approach, data governance framework, selected ISO 37123 indicators, documentation structure and readiness for Stage 2.
Stage 2 audit: Verification of implementation across priority domains such as mobility, utilities, environment and public services including review of project evidence, indicator data, reporting practices and cross-department coordination.
Final certification: Issued once the smart city framework and indicator system meet the defined requirements for the agreed scope.
Surveillance audits: Conducted annually to confirm that governance, data practices, indicator reporting and program controls remain consistent as city priorities evolve.
Recertification audits: Required every three years to review the full smart city framework, expanded services, new technologies and changes in urban risk and development priorities.
What are the benefits of ISO 37106 and ISO 37123?
These standards help cities build smart transformation that is coordinated and measurable.
- Clearer governance for smart city decisions with defined roles across agencies and partners.
- Better alignment between smart investments and real public value outcomes.
- Shared language for planning and performance across departments which reduces siloed projects.
- More reliable data and indicator reporting that supports transparency with residents and stakeholders.
- More consistent review of pilot projects with clearer evidence on what should scale citywide.
Market Trends
Smart city programs are increasingly shifting from standalone technology deployments to integrated city operating models. Cities are focusing more on resilient infrastructure, climate adaptation, inclusive digital access and service continuity. Data platforms that combine transport, energy, water and public safety insights are gaining priority because they support practical coordination during daily operations as well as emergencies.
Indicator-driven governance is also becoming more important. City leaders want dashboards that show outcomes rather than activity. This trend fits well with ISO 37123 because it encourages consistent measurement and clear reporting cycles. Over time, cities that combine ISO 37106 governance guidance with ISO 37123 indicators are likely to build stronger public trust and more stable long-term smart city programs.
Training and courses
Pacific Certifications provide accredited training programs for ISO 37106 and ISO 37123:
- Lead Auditor Training: For professionals evaluating smart city governance, data practices and performance indicator systems.
- Lead Implementer Training: For city teams building structured smart city frameworks and aligning services with ISO 37123 indicators.
For smart city training aligned with your urban priorities, contact [email protected].
How Pacific Certifications can help?
Pacific Certifications provides accredited audit and certification services for smart city and sustainability management frameworks. We assess governance structures, scope clarity, stakeholder approaches, data and documentation practices and the use of smart city indicators to verify alignment with the relevant standards. We issue Certificates of Conformity following impartial audits and do not provide consultancy or program design services.
To request an audit plan for ISO 37106 and ISO 37123 or to discuss certification scope for your city or urban agency, contact [email protected] or visit www.pacificcert.com.
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