An Integrated Platform for Smart City Design: Structured Market-Based Incentive Architecture Design for Sustainable ‘System of Systems’ Supply Chain Orchestration

The research proposes and evaluates a structured approach to the development of complex multiorganizational incentive architectures for complex sustainable supply chains. It is proposed that ModelBased Systems Engineering (MBSE), a process for software and systems development, combined with SysML, a structured systems modeling standard, can be combined to design and test complex multiorganizational supply chain incentive architectures. Such an approach is a suitable for architecting complex ‘system-of-systems’ architectures such as ‘Smart Cities’. A review of trends in associated literature is conducted to ground research design and scope: 1) Perspectives concerning sustainable, multistakeholder resource supply chain management; 2) Formal systems engineering and modeling practices (as relevant to multi-organizational and multi-stakeholder economic systems); and 3) Multi-stakeholder incentive architectures for sustainable resource value chain orchestration. A yet-to-be-determined central reference case involving sustainable multi-stakeholder resource management will be followed throughout to demonstrate the methodology (i.e. Dutch water management or Smart Grids). Structured multi-agent simulation is applied to analyze incentive alignment and systemic competition according to as-is and hypothetical to-be cases. General market-based models for satisficing sustainable value are extrapolated and examined for industry and regulatory consideration. The proposed methodology is thus an in vitro approach to exploring novel incentive and regulatory models, whereas field testing via live critical infrastructure is largely impractical.