This presentation presents a comprehensive model and the relations between Innovation, Business Model, Business/Industry, Open Data and Entrepreneurship. Later slides presents Open Data Business Model (the 6-Value Model) and Open Data Capability Matrix.

1. Comprehensive Model
Fatemeh Ahmadi-Zeleti
Insight Centre for Data Analytics
National University of Ireland, Galway
Feb 27, 2015
Main Conference Room
DERI Building
Insight Centre for Data Analytics
Galway, IRELAND

2. Massive Literature Study
Massive literature study on the followings:
• ‘Entrepreneurship’
• ‘Business Models’
• ‘Business capabilities’
• ‘Open Data’
• ‘Innovation’
• ‘Firm’
The study returns a comprehensive model which identifies
relations between the above concepts. The model is then
broken down into two lower level models (next slides)

3. Top-Level Model

4. Low-Level Model Box A

5. Low-Level Model Box B

6. Top-Level Model

7. Emerging Business Models for the
Open Data Industry and Open Data
Value Capability Matrix
Fatemeh Ahmadi-Zeleti
Insight Centre for Data Analytics
National University of Ireland, Galway
Feb 27, 2015
Main Conference Room
DERI Building
Insight Centre for Data Analytics
Galway, IRELAND

8. Open Data
Data that are freely available to everyone to use and republish as they wish without
restrictions from copyright, patents or other form of control mechanisms
Public data sharing increases transparency, participation, and stimulates new products
and services
e.g. Public Sector Information (PSI)
Open Science Data
Open Data gained popularity with launch of Open Data Initiatives such as Data.gov,
Data.gov.uk and Data.gov.ie
http://dl.acm.org/citation.cfm?id=2612745

9. Open Data Cont.
[Open Data is] going to help launch more businesses… It’s
going to help more entrepreneurs come up with products
and services that we haven’t even imagine yet.
http://www.worldbank.org/content/dam/Worldbank/Feature%20Story/ICT_India_OpenDatainDevelopment.pdf

10. Introduction
• To realize the value of OD, companies need to acquire open data
business model (ODBM) and necessary capabilities
http://siliconangle.com/blog/2015/02/25/big-data-solutions-should-start-at-the-business-level-ibminterconnect/
• Today, businesses struggle to utilize OD (or if they do, they don’t
realize they are using OD) in their business in order to create value for
their stakeholders
Joel Horowitz, Director of Portfolio Marketing, Big
Data Analytics, IBM: “Where IBM has
succeeded in the last few years with Big Data”
is starting with the business level and working
backwards...
Big Data and OD solutions should start at the
business level

11. Business Model

12. Business Model
A business model describes how value is created and
captured by an organization through the decisions made
and the resulting consequences
A business model is a conceptual tool that contains a set of
inter-related elements that allows a company to generate
revenue
It comprises a description of the value a company offers to
one or several segments of customers, the architecture of
the firm, and its network of partners for creating and
delivering this value in order to generate profitable and
sustainable revenue streams
http://dl.acm.org/citation.cfm?id=2612745

13. Business Model Cont.
Shafer, Smith and Linder Business Model
http://dl.acm.org/citation.cfm?id=2612745

14. Business Model Cont.
Hamel Business Model
http://dl.acm.org/citation.cfm?id=2612745

15. Business Model Cont.
Kamoun Business Model
Basic building blocks of a business model and the external forces
that have an affect on these blocks
http://cdn.intechopen.com/pdfs-wm/18084.pdf

16. Business Model Cont.
Osterwalder and Pigneur Business Model
http://dl.acm.org/citation.cfm?id=2612745

17. Open Data Business Model

18. Open Data Business Model (ODBM)
• The demand for Open Data is increasing the idea for
businesses to use Open Data to generate value and
revenue
• Utilizing Open Data can help companies improve the
productivity of current business processes and can
lead to new products and services
• ODBM should be designed and developed accordingly
so that businesses can generate value and revenue
from utilizing Open Data
http://dl.acm.org/citation.cfm?id=2612745

19. ODBMs are not undrestood very well:
• Revenue Models
• Pricing Strategies
• Distribution Models
• Marketing Techniques
• Architectural Models
e.g. Howard (2014): Open Source is ODBM
BUT
451 Group (2008): Open Source is not BM but a Distribution Model
A. Howard, “Open data economy: Eight business models for open data and insight from Deloitte U ,” O’Reilly Media, Inc., 2014.
The 451 group, “Open Source is not a Business Model,” New York, 2008
Problems identified...
Very few studies are available on BMs for OD
No OD Business value disciplines
No study on OD Business Value Capabilities

20. Addressing the Problems
4. Determining the ODBMs patterns and four core value disciplines for open
data businesses
1. Consolidating reported ODBMs in both academic and practice literature
(15 ODBMs)
2. Business Model Conceptual Framework (BMCF)
3. Describing 15 ODBMs based on a BMCF
5. Open Data Value Capability Matrix

21. 15 ODBMs
Freemium: Offering is given for free
Premium: Offering is high end products and services and customer willing to use the
offer has to pay
Dual Licensing: [open source + proprietary licenses] Offering is provided as open
license for certain purposes and under a closed license for others
Support and Services: Offer is provided in a full package with complete support and
service of the business. E.g. Availability, bug fixing, etc.
Charging for Changes: Charges applied for changes in the offer
Increasing Quality through Participation: Increasing integration and participation of
the customer is a new organizational choice aimed at generating higher margins
Supporting Primary Business: Releasing an offer naturally supports the primary
goal of a business or organization
Demand-Oriented Platform: Charging for demand side of the offer [charging
developers the added value such as advanced services and refined datasets or
data flows provided upon the original raw open data] http://dl.acm.org/citation.cfm?id=2612745

22. 15 ODBMs cont.
Supply-Oriented Platform: Charging for the supply side of the offer [presence of an intermediary
business actor having an infrastructural role]
Open Source: The offer if provided in a complete open format [all source codes are open]
Sponsorship: Offer is provided for free to customers and obtaining revenue from some sponsors
Infrastructural Razor & Blades: Selling a product for a low price in order to generate revenues
from the complementary products
Cost avoidance: Reducing the cost of production [reduces the cost of data publishing by having
a sustainable publishing solution. same data to be published a number of times and in
different formats]
Free, as Branded Advertising: Generate revenue from strong brand advertising [Business
delivers commercial messages through visualized data which is also called “display
advertising”]
White-Label Development: Offer is developed by one business and is sold to other business
with white-label
http://dl.acm.org/citation.cfm?id=2612745

23. Qualitative Analysis – Nvivo 10

24. ODBM Conceptual Framework
http://dl.acm.org/citation.cfm?id=2612745

25. ODBM Framework – Level 1 & 2
Components
Value Proposition
Offer
Channel
Value
Knowledge
Management
Value Adding
Process
Strategic Operational
Value in Return
Volume of Sale
Income
Future
Opportunity
Value Network
Actors
Support
Infrastructure
Value Management
GovernanceAdministrationStructure Discipline
Value Capture
Profit Model Market Size
http://dl.acm.org/citation.cfm?id=2612745

26. ODBM Framework Level 1, 2 & 3 Components
http://dl.acm.org/citation.cf
m?id=2612745

27. Describing 15 ODBMs Based on a
BMCF
For each model we describe, the value propositions, core activities of the value adding
process, the network of stakeholders required to collaboratively deliver the value, specific
value produced and how the produced value will be captured.

28. ODBM Patterns Observed [15 to 5]
• Freemium
“Freemium”, “DualLicensing”, “Charging for Changes”, “Open
Source”, and “Free as Branded Advertising” models
[offer limited data free of charge and apply fees for
additional request]
• Premium
“Sponsorship”, “Support and Services”, “Demand-Oriented
Platform”, “Supply-Oriented Platform”, “White-Label
Development” and “Premium” models
[data is not offered free of charge]
http://dl.acm.org/citation.cfm?id=2612745

29. ODBM Patterns Observed [15 to 5] cont.
• Cost Saving
“Increase Quality through Participation” and “Cost Avoidance” models
[Models reduce cost of opening and releasing data]
• Indirect Benefit
“Supply Primary Business” model
[Offer, naturally supports the primary goal of the business]
• Razor-Blade
“Infrastructural Razor and Blades” model
[Incomplete offer at a discount and complementary
offer at a higher price]
http://dl.acm.org/citation.cfm?id=2612745

30. Open Data Business Value Disciplines
• Usefulness: tailors value proposition of the business to meet
usefulness of the business offer
• Process Improvement: tailors value proposition to match to
the needs of the customer for improving processes
• Performance: tailors value proposition for a better
performance
• Customer Loyalty: tailors value proposition to target customer
loyalty
http://dl.acm.org/citation.cfm?id=2612745

31. ODBM Patters and Value Disciplines
http://dl.acm.org/citation.cfm?id=2612745
Based on commonalities in the 15 ODBMs elaborated based on BMCF
Categories/Patterns: Based on commonalities in the Value Proposition
Value Disciplines: Based on comparison of Value Proposition and Value in Return

32. OD Business Capabilities

33. Open Data and Business Capability
Open Data Capabilities
Business
Creating Value

34. There are no scholarly studies available that
• gather OD capabilities,
• map capabilities to OD value chain
• and provide sophisticated tool for businesses to describe, design,
challenge, invent and pivot OD business capabilities
Moreover…
Understanding, using, and representing a set of OD capabilities for Open
Data businesses is challenging for many management teams
Problems

35. Addressing the Problems
Providing Open Data businesses with an Open Data Capability Matrix as a tool to
specify and develop Open Data capabilities for (virtual) organization needs
General Business Capability and Capability types
Open Government Data Value Chain (PSI)
Identifying OD Value Capability Areas and Capabilities associated with each type
Aligning Open Data Capability Areas to PSI Value Chain
Deconstruction of Open Data Capabilities (Open Data Capability Matrix)

36. General Business Capability
Value Capabilities: Set of capabilities required for creating/adding value to the product or offering.
• Competences: Complexity of the context within which an individual can operate.
• Business Process: Collection of related and structure activities that produce specific service
• Organization: The way people and systems work together in an organization
• IT Infrastructure: Technological foundation of Computer, Communications and Data. This
includes hardware, software, telecommunication, sensors and etc.
• Technological: Knowledge embedded in a product or process on doing practical things
• Management: Process of controlling things and people

37. Open Government Data Value Chain

38. Open Data Value Capability Areas
1. Data Generation
2. Data Processing
3. Data Storage and Computing
Facilities
4. Data Retrieval
5. Data Release
6. Publishing Solution
7. Providing Access to Data and
APIs
8. Data Usage

39. Aligning Open Data Capability Areas to
PSI Value Chain Open Data Value Capabilities
PSI Value Chain

40. Aligning Open Data Capability Areas to
PSI Value Chain

41. Open Data Capability Matrix Main
Components
General Business Capability Types
PSI Value Chain
Open Data Value Capabilities

42. Open Data Capability Matrix

43. Capability Matrix
The deconstruction of Open Data capabilities is a matrix of strategic
management and value chain analysis for Open Data businesses
It captures all capabilities an Open Data business require – from generating
data to final use and re-use of data - for creating and capturing value from OD
It is a strategic tool for Open Data businesses of any size to exercise and
exploit for their business
It allows Open Data business managers to identify what capabilities are
valuable and necessary to the business they are running
Open Data capabilities need to be specified based on business model.
Different business may have different matrix however they can share
competencies and resources

44. Next Step…
Analysis of existing empirical studies (digital, content,
information, e-commerce and e-business)

45. Research outputs
F. A. Zeleti, A. Ojo, and E. Curry, “Business Models for the Open Data
Industry: Characterization and Analysis of Emerging Models,” in 15th
Annual International Conference on Digital Government Research, 2014.
BEST FULL RESEARCH PAPER AWARD
@ Digital Government Research Society of North America

46. F. A. Zeleti, A. Ojo, and O. Uusitalo, “Enabling Entrepreneurial
Growth in Europe through E-Government - The Case of Finland,”
Gov. Inf. Q., 2014.
F. A. Zeleti and A. Ojo, “Business Models for Open Data
Businesses,” in 8th international conference on theory and
practice of electronic governance, 2014.
F. A. Zeleti and A. Ojo, “Capability Matrix for Open Data,” in 15th IFIP
working conference on virtual enterprises, 2014.
F. A. Zeleti, A. Ojo, and O. Uusitalo, “Entrepreneurism and E-
Government in Finland: Barriers to Entry,” in 7th international
conference on theory and practice of electronic governance,
2013.
Research outputs cont.

47. Thank You
@fatemehahmadi_