New models are needed to address the challenges of the ever more complex community system; the needs and expectations of citizens, effective and efficient management of the resources and innovation potential for value creation. Communities need to change to competitive industrial community and they need to be ready for new challenges, transforming itself into innovative, “smart” community. The Smart Community Intelligence model is defined as the strategic roadmap for investments in human and social capital and community infrastructure, using advanced “smart” technologies to develop interactive communication networks and thus ensure the most effective management of the resources through participatory action and engagement of the whole community. It is based on four key underlying principles for community development; strategic orientation, sustainable and balanced developed and active participation of the citizens in community management. The over-reaching objective is to develop comprehensive, integrated and interactive information system for real-time monitoring of the situation and improvements in the community system as a tool for most effective and efficient management, communication and decision making.