The president-elect's transition advisers include several current and former state and local IT officials, like former Santa Clara County, Calif., CIO Ann Dunkin.

From railroads to sewers to paved roads, cities must improve their infrastructure to avoid fading away. "Smart city" upgrades add a different dimension to the story.

CityFi — formed by veterans of Chicago, D.C., and New York city governments — will work with localities and companies that want to deploy connected sensor technologies.