Abstract:System theory considers smart city is a grand system which is consisted of the subsystem of target, technology, subject, object and management. Moreover, the core factor to the construction of smart city is to transform and arm the whole city system with advanced technical system. The construction of smart Shanghai in technology infrastructure, smart governance, smart people"s livelihood, and smart industries has made remarkable achievements, but its initial formation of the smart city system also faces a variety of problems and challenges. At present, preparing of the top scientific plan, building a resultant mechanism for multi-agent participation, strengthening the research and application of emerging information technologies, improving smart city management system and accelerating the industrial development of wisdom are the main way to improve and deepen the system of Shanghai smart city development.