This chapter examines six key factors essential for the development of people-centric and sustainable smart cities, in alignment with the principles of Society 5.0; these factors include social acceptance, data governance, citizen participation, quality-of-life (QoL)-based assessment, human resource development, and data ecosystems. Each factor is explored in the context of the common challenges encountered in smart-city implementation. Social acceptance addresses the need to build community trust in new technologies, whereas data governance focuses on safeguarding personal data, which is vital for public confidence. The role of citizen participation is emphasized, aiming to promote active community engagement in the planning and implementation of smart-city initiatives. The QoL-based assessment shifts the evaluation criteria for smart-city outcomes from service performance metrics to a focus on enhancing residents’ well-being. Human resource development outlines the need for interdisciplinary teams to manage smart-city projects, and the data ecosystem highlights the importance of integrated cross-sectoral data use for sustainable urban environments. This chapter aims to provide a comprehensive understanding of how these factors can be operationalized in real-world communities, ensuring that smart cities align with the people-centric ethos of Society 5.0. The subsequent chapters delve into detailed research findings and offer insights into the practical application of these factors.