The business of Open Data, where's the benefit?

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The business of Open Data: where's the benefit? 8, February 2013 The passion and excitement around Open Data is palpable across many sectors but what are the benefits and value for business? Jeni Tennison, Technical Director at the Open Data Institute, discussed business models that support publishing open data and what further work is required.

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The business of Open Data, where's the benefit?

  1. 1. THE  BUSINESS  OF  OPEN  DATA  WHERES  THE  BENEFIT?  JENI  T ENNISON     @ JENIT  TECHNICAL   D IRECTOR  J ENI@THEODI.ORG  
  2. 2. WHAT  DOES  OPEN  MEAN?  •  for  everyone   •  not  limited  by  funds   •  not  limited  by  who  they  are   •  not  limited  by  what  they  intend  to  do  •  everyone  else  benefits  from  my  work?   •  everyone  benefits  including  you!  •  how?  
  3. 3. THREE  MODEL  TYPES  •  freemium   •  free  entry  level,  charged  added  value  •  cross-­‐subsidy   •  get  extra  benefit  from  your  data  •  network  effects   •  collaborate  in  rich  data  environment  
  4. 4. CLOSED  DATA  
  5. 5. data  
  6. 6. data   customer   licensing  
  7. 7. selling   enforcing   data   customer  salespeople   licensing   lawyers  
  8. 8. DEMAND  CURVES  price   revenue   quantity  
  9. 9. SHIFTS  IN  DEMAND  price   new   revenue   quantity  
  10. 10. RISKS  OF  SHIFTING  DEMAND  •  content  web  has  changed  everything   •  hit  every  content  industry   •  music,  film,  books,  news,  encyclopedias  •  data  web  is  changing  everything   •  hit  every  data  industry  •  avoid  risk  by   •  selling  data  whose  demand  wont  shift   •  reorienting  your  business  
  11. 11. FREEMIUM  
  12. 12. open  data   everyone  closed  data   few  
  13. 13. EXAMPLE  BUSINESSES  •  share-­‐alike  dual  licence   •  pay  OpenCorporates  to  use  privately  •  added-­‐value  products   •  pay  GeoLytix  to  get  up-­‐to-­‐date  data  •  better  service   •  pay  Placr  to  exceed  rate  limits  
  14. 14. CROSS-­‐SUBSIDY  
  15. 15. data  
  16. 16. data  
  17. 17. EXAMPLE  BUSINESSES  •  increase  demand  for  paid-­‐for  services   •  Placr  gets  paid  for  customisation  •  increase  brand  awareness   •  GeoLytix  enhances  their  reputation  •  ensure  your  longevity   •  Gazettes  guarantees  notice  income  •  make  customers  happy   •  [media  company]  gives  customers  tools  
  18. 18. NETWORK  EFFECTS  
  19. 19. SIMPLE  DATA  FLOW  MODEL   collects  &  maintains   owner   publishes   adds  value   infomediary   provides  service   end  user  
  20. 20. REAL-­‐WORLD  DATA  FLOWS   infomediary   end  user   owner   infomediary   owner   end  user  
  21. 21. data  
  22. 22. COLLABORATE  •  distributed  effort   contributor   informed   •  reduced  cost   •  enhanced  value  •  host  benefits   •  improved  data   •  moderation   data  •  examples   •  MusicBrainz   •  OpenStreetMap   •  legislation.gov.uk   reduced  
  23. 23. MIX  IT  UP!  
  24. 24. PRIMARY  DATA   collect  •  takes  effort   •  collect   maintain   •  maintain  •  and  investment   •  people   •  equipment   data  •  examples   •  Met  Office   people   •  book  publishers   •  census   equipment  
  25. 25. EXHAUST  DATA  •  support  activity   as  usual  •  no  extra  effort  •  no  extra  cost  •  examples   •  till  receipts   data   •  phone  usage   •  customer  data   •  accounts   as  usual  
  26. 26. COMBINING  MODELS  •  different  data  suits  different  models   •  primary  or  exhaust?   •  who  else  is  involved?   •  whats  the  data  quality  like?  •  different  models  can  combine   •  collaborate  on  shared  open  data   •  …  which  is  used  to  underpin  services   •  …  and  gains  freemium  revenue  
  27. 27. WHAT  DO  YOU  THINK?  comment  on  draft  business  model  guide  http://personal.crocodoc.com/4t2sJhn    questions?    @JeniT  jeni@theodi.org  

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