Presentation on Open Data Business Innovation by Tom Hunter at 3rd International Workshop Creating Impact with Open Data in Agriculture and Nutrition

1. Benjamin Cave –
Trainer
@cave_ben23 February, 2017
Business Innovation
with Open Data
Tom Hunter - Innovation Consultant
Open Data Institute

2. Happy Valentine’s Day!

4. Understand and be able to develop new
open data business models
Session aim

5. Our Session will be
interactive:
• Group
Discussions
• Open Data
business model
canvass

6. 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 Data
Revenue Models for Open Data
14:50 – 15:15
15:15 – 15:50
Agenda

7. The Data Spectrum
Part 1
Closed, Shared & Open Data
Barriers to Openness

8. Open Data Definition
Open Data is …
Data that anyone can
access, use or share.

9. 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 …

10. Data Spectrum Slide
Insert Content

11. 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

12. Barriers to openness
Loss of quality
Lack of business case / business model
Lack of Resource
Loss of brand value
Loss of control
Privacy
Unwanted spillover effects

13. Part 2
Understanding the Business Case for
Open Data
Value Propositions and Revenue Models

14. Step 1 – Defining the value proposition
“A value proposition is the solution to
your customer’s problem”

18. Discussion
What is the value proposition of open
data to your organization?
In groups, 10 minutes

19. 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 market
Ease of use
Behaviour change
Improve innovation
Increase performance
Reduce client cost
Reduce your costs
Reduce risk
Increase accessibility
Build new partnerships
Improve a brand
Solidify value proposition
Benchmark your performance

20. 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”

21. What models are working
for open data right now?

22. OD Businesses Archetypes
Enablers
Facilitate 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
Developers
Collect and
aggregate open data,
and sometimes other
proprietary data
Enrichers
Use open data to
enhance existing
products and
services through
better insights.

23. Discussion (altogether)
Which archetype best describes your
organization?
Could you play the role of any other archetypes?

24. Sectors of
OD
businesses

25. Most
popular
data types

26. How they
got the
data

27. OD Revenue Models
Premium Freemium Cross Subsidy
Demand-Platforms
Razors/Blades White Label
Supply Platforms
Advertising

28. 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

29. 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.)

30. 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.

31. 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.

32. 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.

33. 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

34. Open Data Businesses
Premium
Supply Platform
Cross SubsidyFreemium
Demand Platform Razor Blades
White label
Advertising

35. Discussion
What revenue model seems most
promising for your organization?
Why? In groups, 10 minutes

36. Part 3
Building an open data business model
Creating something that works for you
The business model canvass

37. Business models
‘A business model is the
logic of an organization to
create value’
Osterwalder et. al. Business Model Creation

38. The process
Image: Harry Verwayen

39. The canvas
Image: JAM

40. 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

42. 1. The Data Spectrum
2. Understanding the business case for OD
3. Building an OD business model
Value Propositions for Open Data
Revenue Models for Open Data

43. Benjamin Cave –
Trainer
@cave_ben23 February, 2017
Thank-you
Tom Hunter - Innovation Consultant
Open Data Institute