Abstract
A smart system exhibits the four important properties: (i) Interactive, Collective, coordinated and Parallel Operation (ii) Self-organization through emergent properties (iii) Power law scaling under emergence (iv) Adaptive and Flexible operation. We describe the role of fractal and percolation model for understanding smart systems. A hierarchy based on metric entropy is suggested among the computational systems that transcend from the unsmart to the smart system through a phase transition like phenomenon. Understanding smart systems is useful to solve hard-optimization problem inspired by the self-organizing processes found in nature.