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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?
JENI TENNISON @JENIT TECHNICAL DIRECTOR JENI@THEODI.ORG
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?
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
CLOSED DATA
data
data customer
licensing
data customer
licensing
enforcing
selling
salespeople
lawyers
quantity
price
revenue
DEMAND CURVES
quantity
price
new revenue
SHIFTS IN DEMAND
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 won't shift • reorienting your business
FREEMIUM
open data everyone
closed data few
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
CROSS-‐SUBSIDY
data
data
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
NETWORK EFFECTS
SIMPLE DATA FLOW MODEL
owner
infomediary
end user
collects & maintains publishes
adds value provides service
REAL-‐WORLD DATA FLOWS
owner infomediary
end user
end user
infomediary
owner
data
COLLABORATE • distributed effort • reduced cost • enhanced value
• host benefits • improved data • moderation
• examples • MusicBrainz • OpenStreetMap • legislation.gov.uk
data
contributor informed
reduced
MIX IT UP!
PRIMARY DATA • takes effort • collect • maintain
• and investment • people • equipment
• examples • Met Office • book publishers • census
data
collect
maintain
people
equipment
EXHAUST DATA • support activity • no extra effort • no extra cost • examples • till receipts • phone usage • customer data • accounts
data
as usual
as usual
COMBINING MODELS
• different data suits different models • primary or exhaust? • who else is involved? • what's the data quality like?
• different models can combine • collaborate on shared open data • … which is used to underpin services • … and gains freemium revenue
WHAT DO YOU THINK?
comment on draft business model guide http://personal.crocodoc.com/4t2sJhn questions? @JeniT jeni@theodi.org
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