14.02.2017 Business model innovation slides

Benjamin Cave – Trainer

@cave_ben3 May 2023

Business Innovation with Open Data

Tom Hunter - Innovation Consultant

Open Data Institute

Happy Valentine’s Day!

Understand and be able to develop new open data business models

Session aim

Our Session will be interactive:

• Group Discussions

• Open Data business model canvass

1. The Data Spectrum 14:35 – 14:50

2. Understanding the business case for OD

3. Building an OD business model

15:50 – 16:25

Value Propositions for Open DataRevenue Models for Open Data

14:50 – 15:1515:15 – 15:50

Agenda

The Data Spectrum

Part 1

Closed, Shared & Open DataBarriers to Openness

Open Data DefinitionOpen Data is …

Data that anyone can access, use or share.

Open Data Definition

• can be linked • is available in a standard, structured format • has guaranteed availability and consistency over

time• is traceable, through any processing, right back to

where it originates

Good Open Data …

Data Spectrum SlideInsert Content

Discussion

Where does data currently sit in your organization?

What are the main barriers to moving data from closed to shared / open?

In groups, 5 minutes

Barriers to openness

Loss of quality

Lack of business case / business model

Lack of ResourceLoss of brand value

Loss of controlPrivacy

Unwanted spillover effects

Part 2

Understanding the Business Case for Open Data

Value Propositions and Revenue Models

Step 1 – Defining the value proposition

“A value proposition is the solution to your customer’s

problem”

Discussion

What is the value proposition of open data to your organization?

In groups, 10 minutes

What is the value of open data?

Open data is free - value no-longer comes from data itself, but products and services – added value developed for the marketEase of use

Behaviour changeImprove innovationIncrease performance

Reduce client costReduce your costsReduce riskIncrease accessibilityBuild new partnershipsImprove a brandSolidify value propositionBenchmark your performance

Step 2 – Finding the right revenue model

“A revenue model is a framework that identifies

what value to offer, how to price the value, and who pays

for the value”

What models are working for open data right now?

OD Businesses Archetypes

EnablersFacilitate the supply and/or use of open data, but are not themselves users or re-users of open data

Publish their data via an open interface and allow others to use it

Suppliers

Aggregators

Design, build and sell web-based, smart phone, tablet applications for consumption

DevelopersCollect and aggregate open data, and sometimes other proprietary data

EnrichersUse open data to enhance existing products and services through better insights.

Discussion (altogether)

Which archetype best describes your organization?

Could you play the role of any other archetypes?

Sectors of OD businesses

Most popular data types

How they got the data

OD Revenue Models

Premium

Freemium

Cross Subsidy

Demand-Platforms

Razors/Blades

White Label

Supply Platforms

Advertising

Premium

Additional product or a service is offered to the end-user, characterized by high intrinsic value in exchange for a payment per use or for a re-occurring fee.

Description

Example

Location based consultancy: through an analysis of geodata, Geolytix helps their customers find out how many stores are optimal, at what location those stores should be opened, what to sell in them... Users pay to get up-to-date data

Freemium

Organization publishes open data in a basic form and offer advanced access to those who are willing to pay (e.g. availability of different machine-readable formats, unconstrained numbers of API calls, more sophisticated querying…)

Description

Example

TransportAPI offer both free tiers (open content, no downstream IP) and paid plans for frequent access to their service. Users can pay for high level use, and for add-ons (private cloud, data integration service.)

Cross Subsidy

Using open data to deliver other benefits to an organization, e.g. by improving reach and uptake of other products and services, or through efficiency gains

Description

Example

Syngenta publishes progress reports on their efforts to improve the sustainability of agriculture. The benefits to Syngenta include enhanced customer relationships, the generation of new value propositions, and enhanced reputation.

Demand Platform

Provides easier access to open data (often through aggregation) which is collected, stored and harmonized on proprietary servers. Data is then made available by means of easy to use interfaces. Paid for by end users of open data

Description

Example

DataMarket aggregates vast amounts of energy data to help business users with their planning and decision-making. Resources to be searched, visualized and shared through one gateway and in combination with other domestic and worldwide open data sources.

Supply Platform

Similar to demand platform (easier access) except for the fact that suppliers of data are charged in lieu of end users, because it transforms their data and makes it more accessible to consumers.

Description

Example

Private software company specialized in transforming structured data into API and visualizations to make data more useful. For instance, a railway company could convert all their timetables into an API using OpenDataSoft.

Other revenue models

Razors/Blades

White Label

Advertising

Datasets stored for free on cloud computing platforms (“razor”) while re-users are charged only for the computing power that they employ on-demand (“blades”). Sometimes overlaps with Freemium.

OD brings positive return in a broad sense, driving economic results on other business lines that represent the enterprise’s core business. Sometimes overlaps with Cross-subsidy

Solutions are developed in a white-label manner: the outsourcer’s brand is hidden and full visibility is given to the sole service provider/advertiser brand. The service provider collect lump-sum payments or recurring fees

Open Data BusinessesPremium

Supply Platform

Cross SubsidyFreemium

Demand Platform

Razor Blades

White label

Advertising

Discussion

What revenue model seems most promising for your organization?

Why?In groups, 10 minutes

Part 3

Building an open data business model

Creating something that works for youThe business model canvass

Business models

‘A business model is the logic of an organization to create value’

Osterwalder et. al. Business Model Creation

The process

Image: Harry Verwayen

The canvas

Image: JAM

Exercise

Choose one organization in your group. Use printouts of the Osterwalder Business Model Canvas to build an open data business model for that organization.

In groups of two or three, 25 minutes

1. The Data Spectrum

2. Understanding the business case for OD

3. Building an OD business model

Value Propositions for Open DataRevenue Models for Open Data

Benjamin Cave – Trainer

@cave_ben3 May 2023

Thank-you

Tom Hunter - Innovation Consultant

Open Data Institute