Sustaining open data innovations

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Luke Closs presents his thoughts on how to build innovations from open data that can be sustained in the long term.

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Sustaining open data innovations

  1. 1. Sustaining Open Data Innovation Luke Closs Founder & CTO, OpenWest Systems @lukec - http://openwe.st
  2. 2. Speaker Background• Based in Vancouver, BC• Telecomm, Anti-spam, Collaboration• Long walks, HTTP, Open Web• Co-founder of Vancouver Hack Space• VanTrash, Budget visualization, gut, Parliament scrapers, Corporate registry tools, Election finance tools, Recollect, Open Data catalogues, Marine AIS Traffic, CKAN, datadotgc.ca, sidewalk chalk dataviz, hackathons, Open Data Day, …
  3. 3. Goals of this Talk• Inspire• Visualize• Realistic• Tools
  4. 4. Part 1: VanTrash
  5. 5. The Beginning
  6. 6. A few months later…
  7. 7.
  8. 8. There is something here!
  9. 9. How can we bringthis to more people?
  10. 10. Problem:Cities don’t embrace hacks.
  11. 11. Ideas & Projects Products Services Infrastructure Hacks
  12. 12. Ideas & Projects Products Services Infrastructure Hacks Many of these ideas will “fail”. That’s okay.
  13. 13. Ideas & Projects Products Services Infrastructure Hacks The good innovations typically move to the right.
  14. 14. Ideas & Projects Products Services Infrastructure Hacks Citizens Established Vendors
  15. 15. Realization:Cities are missing out.
  16. 16. Ideas & Projects Products Services Infrastructure Hacks Cities miss out, these solutions are too cheap!
  17. 17. Nobody will use this!• City won’t use it.• City won’t link to it.• City would need a SLA.• No business to provide a SLA.• Cost would be too low.• Project will probably die out.
  18. 18. Why is that bad?• The city can’t do cheap things• The city can’t collaborate with citizens• This limits opportunity for new vendors to provide greatly cheaper services.
  19. 19. Realization:Only way to achieve goals: Charge $$$
  20. 20. Part 2:Business Models
  21. 21. Tangent: Org Hacks• Co-operatives• For-profit• Non-profit• Use the right type(s)!
  22. 22. So you want to build a business!
  23. 23. Business Model Canvas
  24. 24. Use it to:Describe / Discuss / Create / Invent / Improve your business model
  25. 25. Cost Value
  26. 26. My BM Gen Process• Brainstorm every possible idea / detail• Stare at it & Discuss• Split into distinct business models• Compare / Contrast• Will it blend!?• Try, learn, iterate!
  27. 27. 4 Business Models
  28. 28. Citizen Funded
  29. 29. Citizen Funded• Requires marketing strength • Doesn’t require a sales team• Hard to market to target customers • (Non-techie citizens)• Few barriers to get started
  30. 30. City Funded
  31. 31. City Funded• Sell to municipal decision makers • Requires sales team • Typically looooong sloooow sale• City handles marketing• Administration features, cost reduction• Can’t be too cheap, or too expensive!
  32. 32. Infrastructure Service
  33. 33. Infrastructure Service• Market to developers, no sales team.• Make it easy for hackers to use in their town.• Create new innovations on the service• Too niche?
  34. 34. Public Open Source Service (POSS)
  35. 35. POSS• Idea by @Progrium - bit.ly/VJU1Mg• Citizens collectively pitch in to cover costs • Donations => Bank account => Hosting fees • $$ / burn rate = months of service.• No profit incentive to expand, enhance• Good for small, very cheap services
  36. 36. Part 3:Building Recollect
  37. 37. Step 1: Re-design Re-brandRe-architect Re-build
  38. 38. Initial thought:Cities are too much work! Let’s sell to citizens!
  39. 39. Pivot #1 ➨
  40. 40. Customer Development• “Get out of the building”• Learn current pains• Talk in their language• Understand the buyers & their process• Experiment with pricing
  41. 41. Funding?• Finding money for civic startups is hard• VC’s don’t like selling to governments! • “Cool, but what’s your plan B?”• We said no (so far!): • Can’t get off the treadmill • No masters
  42. 42. So... don’t quit your day job!
  43. 43. Building a open datacompany ishard work.
  44. 44. It helps to have asolid background & experience.
  45. 45. Don’t call yourself a startup!
  46. 46. It’s not about open data!
  47. 47. Scraping datadoesn’t always make friends!
  48. 48. When your hobby becomes yourbusiness, priorities change!
  49. 49. Part 4:Recollect Today
  50. 50. Product that is truly uniquein the market.
  51. 51. Truly amazingcollaboration with City of Ottawa
  52. 52. (~60% of Ottawahouseholds have used Recollect!)
  53. 53. > 100,000 Garbageday reminders sent! (Already!)
  54. 54. ~40,000 Calendars printed at home.
  55. 55. Growing our customer base,across North America
  56. 56. InternationalDistribution Partners!
  57. 57. Building a business.
  58. 58. In Summary• Open data + Ideas + Hacks ➨Innovation• Innovations + Time + Effort ➨ Products• Building a open data company is: • fucking hard • fucking stressful • fucking awesome

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