The way to do it, according to IBM's Vice President for Innovation, Bernie Meyerson, is the integration of real-world data with analytics developed by stream computing.
"That allows you to be proactive rather than reactive", Meyerson told last week's Globalpress Summit Conference in Santa Cruz, "you don't react to traffic jams you prevent them."
Meyerson and IBM have been spending time predicting traffic flows in Stockholm and Singapore.
"We've been analysing traffic patterns to predict traffic flow ahead of time and our forecasts have shown predictions which were astonishingly close to reality," he said.
This is all made possible by what Meyerson calls 'The Internet of Things' - devices like cameras, sensors etc, all connected up to the Internet, which can collect massive amounts of data which can then be analysed by stream computing to produce useful findings.
"We must develop and deploy systems of systems able to recognise and resolve the ambiguities resulting from the heterogeneous nature of modern infrastructure", said Meyerson.
All a bit above my head, I'm afraid.