How to Ensure the Economic Viability of an Open Data Platform (original) (raw)
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The commercial re-use of open government data is broadly expected to generate economic value. However, the practice and study of this trend is still in its infancy. In particular, the issue of value creation in the commercial re-use open government data remains largely unknown. This study aims to further understand how open government data is used to develop commercial products and services. Grounded in the comprehensive data obtained from a sample of 500 U.S. firms that use open government data as part of their business model, we propose a taxonomy that encompasses three business model archetypes (enablers, facilitators, and integrators). Furthermore, we discuss the value proposition of each business model archetype, and subsequently present a framework that describes the value created in the context of the open government data ecosystem. Our framework can be used by both scholars and practitioners in the field of open government data to effectively frame the debate of the value created by the commercial re-use of open government data. Simultaneously, our work can be of benefit to entrepreneurs as it provides a systematic overview, as well as practical insights, of the growing use of open government data in the private sector.
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After the adoption of open data policies by governments around the world, new business models began to explore the databases opened and create new products and services that may or not generate revenue for its providers. From this scenario, this study aimed to understand the business models adopted by service providers that use open government databases or databases built from public data and data captured by tools resulting from these new products and services. Therefore, we analyzed seven cases of businesses awarded in prizes that had evaluation criteria such as innovation, technology and services to the population. This qualitative study aimed to identify evidences of phenomena relating to the use of open government databases, the participation of these service providers in the open government data value chain and features present in their business models that could be replicated in new cases. The main findings revealed that business models need to create databases that standardi...
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Business models for open data have emerged in response to the economic opportunities presented by the increasing availability of open data. However, scholarly efforts providing elaborations, rigorous analysis and comparison of open data models are very limited. This could be partly attributed to the fact that most discussions on Open Data Business Models (ODBMs) are predominantly in the practice community. This shortcoming has resulted in a growing list of ODBMs which, on closer examination, are not clearly delineated and lack clear value orientation. This has made the understanding of value creation and exploitation mechanisms in existing open data businesses difficult and challenging to transfer. Following the Design Science Research (DSR) tradition, we developed a 6-Value (6-V) business model framework as a design artifact to facilitate the explication and detailed analysis of existing ODBMs in practice. Based on the results from the analysis, we identify business model patterns and emerging core value disciplines for open data businesses. Our results not only help streamline existing ODBMs and help in linking them to the overall business strategy, but could also guide governments in developing the required capabilities to support and sustain the business models.
Emerging business models for the open data industry
Proceedings of the 15th Annual International Conference on Digital Government Research - dg.o '14, 2014
Business models for open data have emerged in response to the economic opportunities presented by the increasing availability of open data. However, scholarly efforts providing elaborations, rigorous analysis and comparison of open data models are very limited. This could be partly attributed to the fact that most discussions on open data business models are predominantly in the practice community. This shortcoming has resulted in a growing list of open data business models which, on closer examination, are not clearly delineated and lack clear value orientation. We address this problem by 1) consolidating reported open data business models in both academic and practice literature, 2) describe the models based on a business model framework, and 3) determine open data business models patterns. In addition, we identified the emerging core value disciplines for open data businesses. Our results help to streamline existing useful models, and link them to the overall business strategy through value disciplines.
Open Innovation, Open Data and new Business Models
Open government data are the result of as well as the preconditions for open government. Data made publically accessible are an important basis for creating added value for society as a whole. Open data business models support entrepreneurs in reusing and combining available open data sources to provide value-added services. Three cases show how open data business models can be realized.
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The release of government data in an open format is broadly expected to generate innovation and economic value. However, despite the emerging public notoriety of this issue, literature is still scarce regarding the commercial application of open government data. The main goal of this study is to understand how firms use open government data to create value. More specifically, we aim to identify what types of use are currently in place and which industries are more prominent in exploiting open government data. Building on the analysis of a dataset of 178 firms that use open government data across various industries in the U.S. we find twelve different atomic models. Additionally, our findings suggest that the way in which open government is used to create value is contingent to the firms' activities. Supported by robust empirical data, we anticipate that our research produces practical insights to entrepreneurs as well as firm managers in deriving value from public datasets, and equip government officials with relevant evidence for advocacy and policy-making.
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The provision of public information contributes to the enrichment and enhancement of the data produced by the government as part of its activities, and the transformation of heterogeneous data into information and knowledge. This process of opening changes the operational mode of public administrations, leveraging the data management, encouraging savings and especially in promoting the development of services in subsidiary and collaborative form between public and private entities. The demand for new services also promotes renewed entrepreneurship centred on responding to new social and territorial needs through new technologies. In this sense we speak of Open Data as an enabling infrastructure for the development of innovation and as an instrument to the development and diffusion of Innovation and Communications Technology (ICT) in the public system as well as creating space for innovation for businesses, particularly SMEs, based on the exploitation of information assets of the ter...
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Recently, a second generation of advanced open government data (OGD) infrastructures has emerged, influenced by the principles of the Web 2.0 paradigm, and oriented towards the elimination of the clear distinction between providers and consumers of such data, and the support of data 'prosumers'. This paper presents and validates a methodology for evaluating these advanced second generation of ODG infrastructures, which is based on the estimation of value models of them from users' ratings. This value model includes assessments of the various types of value generated by such an infrastructure, and also of the relations among them as well. This enables a deeper understanding of the whole value generation mechanism and a rational definition of improvement priorities. The proposed methodology has been used for the evaluation of an advanced second generation ODG e-Infrastructure developed in the European project ENGAGE.
The Value of Open Government Data: A Strategic Analysis Framework
Government data has been accumulated for centuries in protected repositories and registries as public record and a matter of civil order. Recently, the Open Government Data (OGD) movement has emerged as a group that focuses on facilitating open access to government data. Proponents of OGD initiatives argue that it can strengthen democracy and improve government through increased participation, collaboration and transparency. OGD advocates are also motivated by its potential contribution to greater productivity and economic growth through increased government efficiency and the creation of new businesses and services. However, as most OGD initiatives are relatively recent, the key questions regarding the value propositions and return on investment of these initiatives remain unanswered. In this theory development paper, we propose a strategic options framework that offers criteria for generating and prioritizing OGD initiatives. The framework can guide structured analysis of the economic and social impacts of OGD with an emphasis on its value propositions for both the public and private sectors. Building on a literature review and fieldwork-based anecdotal evidence, we expect OGD initiatives to generate value and substantial returns through increased transparency, efficiency of government activities, citizen participation and entrepreneurial activity.