The business of Open Data, where's the benefit?
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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?
- 1. THE BUSINESS OF OPEN DATA WHERE'S THE BENEFIT? JENI T ENNISON @ JENIT TECHNICAL D IRECTOR J ENI@THEODI.ORG
- 2. 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?
- 3. 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
- 5. CLOSED DATA
- 6. data
- 7. data customer licensing
- 8. selling enforcing data customer salespeople licensing lawyers
- 9. DEMAND CURVES price revenue quantity
- 10. SHIFTS IN DEMAND price new revenue quantity
- 11. 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
- 12. FREEMIUM
- 13. open data everyone closed data few
- 14. 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
- 15. CROSS-‐SUBSIDY
- 16. data
- 17. data
- 18. 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
- 19. NETWORK EFFECTS
- 20. SIMPLE DATA FLOW MODEL collects & maintains owner publishes adds value infomediary provides service end user
- 21. REAL-‐WORLD DATA FLOWS infomediary end user owner infomediary owner end user
- 22. data
- 23. COLLABORATE • distributed effort contributor informed • reduced cost • enhanced value • host benefits • improved data • moderation data • examples • MusicBrainz • OpenStreetMap • legislation.gov.uk reduced
- 24. MIX IT UP!
- 25. PRIMARY DATA collect • takes effort • collect maintain • maintain • and investment • people • equipment data • examples • Met Office people • book publishers • census equipment
- 26. EXHAUST DATA • support activity as usual • no extra effort • no extra cost • examples • till receipts data • phone usage • customer data • accounts as usual
- 27. 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
- 28. WHAT DO YOU THINK? comment on draft business model guide http://personal.crocodoc.com/4t2sJhn questions? @JeniT jeni@theodi.org