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This lecture explores the concept of Smart City services as an ongoing process rather than a final state, focusing on the theoretical level of offering smart services. It delves into the three main challenges faced by managers in providing smart services, including services integration, quality, and the universal services obligation. The session also discusses the managerial challenges at the services layer, the importance of citizen/customer involvement, and the legal and regulatory issues surrounding urban infrastructures. The lecture concludes by highlighting that while many challenges remain theoretical, some cities are already encountering them, and it introduces insights from a practitioner on addressing these challenges.