Open government data and the private sector: An empirical view on business models and value creation (original) (raw)

Business models for open government data

Proceedings of the 8th International Conference on Theory and Practice of Electronic Governance, 2014

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.

Exploring the economic value of open government data

Government Information Quarterly, 2016

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.

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.

AO 05 Business models adopted by intermediaries in the use of open government data

2016

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...

Generating value from open government data

A driving force for change in society is the trend towards Open Government Data (OGD). While the value generated by OGD has been widely discussed by public bodies and other stakeholders, little attention has been paid to this phenomenon in the academic literature. Hence, we developed a conceptual model portraying how data as a resource can be transformed to value. We show the causal relationships between four contextual, enabling factors, four types of value generation mechanisms and value. We use empirical data from 61 countries to test these relationships, using the PLS method. The results mostly support the hypothesized relationships. Our conclusion is that if openness is complemented with resource governance, capabilities in society and technical connectivity, use of OGD will stimulate the generation of economic and social value through four different archetypical mechanisms: Efficiency, Innovation, Transparency and Participation.

Generating Value with Open Government Data

The Sustainable Value of Open Government Data

Journal of the Association for Information Systems, 2019

The exponentially growing availability of data, global connectivity, and trends toward increased openness and sharing are turning into a powerful force that is changing the global economy and society. Governments around the world have become active participants in this evolution by opening up their data for access and re-use by public and private agents alike. The recent phenomenon of Open Government Data (OGD) has spread around the world, driven by the proposition that opening government data has the ability to generate both economic and social value. However, a review of the academic research and the popular press reveals only sporadic attention given to various aspects with no overarching framework that explains how OGD generates value. We apply a critical realist approach to uncover the generative mechanisms that serve to explain this relationship. First, we present a strategic framework with four archetypical generative mechanisms. The framework outlines the different pathways to value generation and highlights the current tension between the private/public and economic/social domains. Second, we offer a conceptual model that provides a systematic way of articulating and examining further the generation of value from OGD.

Data-Driven Innovation through Open Government Data

Journal of theoretical and applied electronic commerce research, 2014

The exponentially growing production of data and the social trend towards openness and sharing are powerful forces that are changing the global economy and society. Governments around the world have become active participants in this evolution, opening up their data for access and re-use by public and private agents alike. The phenomenon of Open Government Data has spread around the world in the last four years, driven by the widely held belief that use of Open Government Data has the ability to generate both economic and social value. However, a cursory review of the popular press, as well as an investigation of academic research and empirical data, reveals the need to further understand the relationship between Open Government Data and value. In this paper, we focus on how use of Open Government Data can bring about new innovative solutions that can generate social and economic value. We apply a critical realist approach to a case study analysis to uncover the mechanisms that can explain how data is transformed to value. We explore the case of Opower, a pioneer in using and transforming data to induce a behavioral change that has resulted in a considerable reduction in energy use over the last six years.

Open Government Data: Fostering Innovation

JeDEM - eJournal of eDemocracy and Open Government

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...

Public Open Government Data Promoting Private Innovations a Literature Review

Lappeenrannan teknillinen yliopisto, 2021

Public sector is under pressure to produce public services efficiently. Open innovation (OI) is seen one problem-oriented solution which in egovernance context has emerged as open government data (OGD) sharing. Though the potential of the OGD is recognized, the link between data and innovation seems self-evident but ambiguous. Therefore, the question of What is the role of private sector in creating economic value from OGD is to build the more comprehensive picture of the possibility of private sector companies to utilize OGD resources to promote their own innovations to obtain business value. The literature review revealed that public sector defines the value of OGD and prefers to govern innovations. It raises the question whether the public sector is willing to divide the control of the data to enable data further use for the commercial value. The identified barriers in OGD and OI need functional systems for creating successful OGD initiatives.

Open government data and the private sector: An empirical view on business models and value creation (original) (raw)

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