Business Models That Take Advantage of Open Data Opportunities

Curated on Posted on by Stefaan Verhulst
Mark Boyd at the Programmeableweb: “At last week’s OKFestival in Berlin, Kat Borlongan and Chloé Bonnet from Parisian open data startup Five By Five moderated an interactive speed-geek session to examine how startups are building viability using open data and open data APIs. The picture that emerged revealed a variety of composite approaches being used, with all those presenting having just one thing in common: a commitment to fostering ecosystems that will allow other startups to build alongside them.
The OKFestival—hosted by the Open Knowledge Foundation—brought together more than 1,000 participants from around the globe working on various aspects of the open data agenda: the use of corporate data, open science research, government open data and crowdsourced data projects.
In a session held on the first day of the event, Borlongan facilitated an interactive workshop to help would-be entrepreneurs understand how startups are building business models that take advantage of open data opportunities to create sustainable, employment-generating businesses.
Citing research from the McKinsey Institute that calculates the value of open data to be worth $3 trillion globally, Borlongan said: “So the understanding of the open data process is usually: We throw open data over the wall, then we hold a hackathon, and then people will start making products off it, and then we make the $3 trillion.”
Borlongan argued that it is actually a “blurry identity to be an open data startup” and encouraged participants to unpack, with each of the startups presenting exactly how income can be generated and a viable business built in this space.
Jeni Tennison, from the U.K.’s Open Data Institute (which supports 15 businesses in its Startup Programme) categorizes two types of business models:

  1. Businesses that publish (but do not sell) open data.
  2. Businesses built on top of using open data.

Businesses That Publish but Do Not Sell Open Data

At the Open Data Institute, Tennison is investigating the possibility of an open address database that would provide street address data for every property in the U.K. She describes three types of business models that could be created by projects that generated and published such data:
Freemium: In this model, the bulk data of open addresses could be made available freely, “but if you want an API service, then you would pay for it.” Tennison pointed to lots of opportunities also to degrade the freemium-level data—for example, having it available in bulk but not at a particularly granular level (unless you pay for it), or by provisioning reuse on a share-only basis, but you would pay if you wanted the data for corporate use cases (similar to how OpenCorporates sells access to its data).
Cross-subsidy: In this approach, the data would be available, and the opportunities to generate income would come from providing extra services, like consultancy or white labeling data services alongside publishing the open data.
Network: In this business model, value is created by generating a network effect around the core business interest, which may not be the open data itself. As an example, Tennison suggested that if a post office or delivery company were to create the open address database, it might be interested in encouraging private citizens to collaboratively maintain or crowdsource the quality of the data. The revenue generated by this open data would then come from reductions in the cost of delivery services as the data improved accuracy.

Businesses Built on Top of Open Data

Six startups working in unique ways to make use of available open data also presented their business models to OKFestival attendees: Development Seed, Mapbox, OpenDataSoft, Enigma.io, Open Bank API, and Snips.

Startup: Development Seed
What it does: Builds solutions for development, public health and citizen democracy challenges by creating open source tools and utilizing open data.
Open data API focus: Regularly uses open data APIs in its projects. For example, it worked with the World Bank to create a data visualization website built on top of the World Bank API.
Type of business model: Consultancy, but it has also created new businesses out of the products developed as part of its work, most notably Mapbox (see below).

Startup: Enigma.io
What it does: Open data platform with advanced discovery and search functions.
Open data API focus: Provides the Enigma API to allow programmatic access to all data sets and some analytics from the Enigma platform.
Type of business model: SaaS including a freemium plan with no degradation of data and with access to API calls; some venture funding; some contracting services to particular enterprises; creating new products in Enigma Labs for potential later sale.

Startup: Mapbox
What it does: Enables users to design and publish maps based on crowdsourced OpenStreetMap data.
Open data API focus: Uses OpenStreetMap APIs to draw data into its map-creation interface; provides the Mapbox API to allow programmatic creation of maps using Mapbox web services.
Type of business model: SaaS including freemium plan; some tailored contracts for big map users such as Foursquare and Evernote.

Startup: Open Bank Project
What it does: Creates an open source API for use by banks.
Open data API focus: Its core product is to build an API so that banks can use a standard, open source API tool when creating applications and web services for their clients.
Type of business model: Contract license with tiered SLAs depending on the number of applications built using the API; IT consultancy projects.

Startup: OpenDataSoft
What it does: Provides an open data publishing platform so that cities, governments, utilities and companies can publish their own data portal for internal and public use.
Open data API focus: It’s able to route data sources into the portal from a publisher’s APIs; provides automatic API-creation tools so that any data set uploaded to the portal is then available as an API.
Type of business model: SaaS model with freemium plan, pricing by number of data sets published and number of API calls made against the data, with free access for academic and civic initiatives.

Startup: Snips
What it does: Predictive modeling for smart cities.
Open data API focus: Channels some open and client proprietary data into its modeling algorithm calculations via API; provides a predictive modeling API for clients’ use to programmatically generate solutions based on their data.
Type of business model: Creating one B2C app product for sale as a revenue-generation product; individual contracts with cities and companies to solve particular pain points, such as using predictive modeling to help a post office company better manage staff rosters (matched to sales needs) and a consultancy project to create a visualization mapping tool that can predict the risk of car accidents for a city….”

Portugal: Municipal Transparency Portal

Curated on Posted on by Stefaan Verhulst

“The Municipal Transparency Portal is an initiative of the XIX constitutional Government to increase transparency of local public administration management toward citizens. Here are presented and made available a set of indicators regarding management of the 308 Portuguese municipalities, as well as their aggregation on inter-municipal entities (metropolitan areas and intermunicipal communities) when applicable.
Indicators
The indicators are organized in 6 groups:

    • Financial management: financial indicators relating to indebtedness, municipal revenue and expenditure
    • Administrative management: indicators relating to municipal human resources, public procurement and transparency of municipal information
    • Fiscal decisions of municipality: rates determined by the municipalities on IMI, IRS and IRC surcharge
    • Economic dynamics of the municipality: indicators about local economic activity of citizens and businesses
    • Municipal services: indicators regarding the main public services with relevant intervention of municipalities (water and waste treatment, education and housing)
    • Municipal electoral turnout: citizen taking part in local elections and voting results.

More: http://www.portalmunicipal.pt/”
 

A framework for measuring smart cities

Curated on Posted on by Stefaan Verhulst
Paper by Félix Herrera Priano and Cristina Fajardo Guerra for the Proceedings of the 15th Annual International Conference on Digital Government Research: “Smart cities are an international phenomenon. Many cities are actively working to build or transform their models toward that of a Smart City. There is constant research and reports devoted to measuring the intelligence of cities through establishing specific methodologies and indicators (grouped by various criteria).
We believe the subject lacks a certain uniformity, which we aim to redress in this paper by suggesting a framework for properly measuring the smart level of a city.
Cities are complex and heterogeneous structures, which complicates comparisons between them. To address this we propose an N–dimensional measurement framework where each level or dimension supplies information of interest that is evaluated independently. As a result, the measure of a city’s intelligence is the result of the evaluations obtained for each of these levels.
To this end, we have typified the transformation (city to smart city) and the measurement (smart city ranking) processes.”

The Quiet Movement to Make Government Fail Less Often

Curated on Posted on by Stefaan Verhulst

in The New York Times: “If you wanted to bestow the grandiose title of “most successful organization in modern history,” you would struggle to find a more obviously worthy nominee than the federal government of the United States.

In its earliest stirrings, it established a lasting and influential democracy. Since then, it has helped defeat totalitarianism (more than once), established the world’s currency of choice, sent men to the moon, built the Internet, nurtured the world’s largest economy, financed medical research that saved millions of lives and welcomed eager immigrants from around the world.

Of course, most Americans don’t think of their government as particularly successful. Only 19 percent say they trust the government to do the right thing most of the time, according to Gallup. Some of this mistrust reflects a healthy skepticism that Americans have always had toward centralized authority. And the disappointing economic growth of recent decades has made Americans less enamored of nearly every national institution.

But much of the mistrust really does reflect the federal government’s frequent failures – and progressives in particular will need to grapple with these failures if they want to persuade Americans to support an active government.

When the federal government is good, it’s very, very good. When it’s bad (or at least deeply inefficient), it’s the norm.

The evidence is abundant. Of the 11 large programs for low- and moderate-income people that have been subject to rigorous, randomized evaluation, only one or two show strong evidence of improving most beneficiaries’ lives. “Less than 1 percent of government spending is backed by even the most basic evidence of cost-effectiveness,” writes Peter Schuck, a Yale law professor, in his new book, “Why Government Fails So Often,” a sweeping history of policy disappointments.

As Mr. Schuck puts it, “the government has largely ignored the ‘moneyball’ revolution in which private-sector decisions are increasingly based on hard data.”

And yet there is some good news in this area, too. The explosion of available data has made evaluating success – in the government and the private sector – easier and less expensive than it used to be. At the same time, a generation of data-savvy policy makers and researchers has entered government and begun pushing it to do better. They have built on earlier efforts by the Bush and Clinton administrations.

The result is a flowering of experiments to figure out what works and what doesn’t.

New York City, Salt Lake City, New York State and Massachusetts have all begun programs to link funding for programs to their success: The more effective they are, the more money they and their backers receive. The programs span child care, job training and juvenile recidivism.

The approach is known as “pay for success,” and it’s likely to spread to Cleveland, Denver and California soon. David Cameron’s conservative government in Britain is also using it. The Obama administration likes the idea, and two House members – Todd Young, an Indiana Republican, and John Delaney, a Maryland Democrat – have introduced a modest bill to pay for a version known as “social impact bonds.”

The White House is also pushing for an expansion of randomized controlled trials to evaluate government programs. Such trials, Mr. Schuck notes, are “the gold standard” for any kind of evaluation. Using science as a model, researchers randomly select some people to enroll in a government program and others not to enroll. The researchers then study the outcomes of the two groups….”

i-teams

Curated on Posted on by Stefaan Verhulst

New Report and Site from NESTA: “Last year we were aware of the growing trend for governments to set up innovation teams, funds, and labs. Yet who are they? What do they do? And crucially, are they making any difference for their host and partner governments? Together Nesta and Bloomberg Philanthropies set out to answer these questions.
Drawing on an in-depth literature review, over 80 interviews, and  surveys, i-teams tells the stories of 20 teams, units and funds, all are established by government, and all are charged with making innovation happen. The i-teams case studied are based in city, regional and national governments across six continents, and work across the spectrum of innovation – from focusing on incremental improvements to aiming for radical transformations.
The i-teams were all created in recognition that governments need dedicated structures, capabilities and space to allow innovation to happen. Beyond this, the i-teams work in different ways, drawing on a mix of methods, approaches, skills, resources, and tackling challenges as diverse as reducing murder rates to improving education attainment.
The i-teams report details the different ways in which these twenty i-teams operate, but to highlight a few:

  • The Behavioural Insights Team designs trials to test policy ideas, and achieved government savings of around 22 times the cost of the team in the first two years of operation.
  • MindLab is a Danish unit using human centred design as a way to identify problems and develop policy recommendations. One project helped businesses to find the right industry code for registrations and demonstrated a 21:1 return on investment in savings to government and businesses.
  • New Orleans Innovation Delivery Team is based in city hall and is tasked with solving mayoral challenges. Their public safety efforts led to a 20% reduction in the number of murders in 2013 compared to the previous year.
  • PS21 encourages staff to find better ways of improving Singaporean public services. An evaluation of PS21 estimated that over a year it generated 520,000 suggestions from staff, of which approximately 60 per cent were implemented, leading to savings of around £55 million.

Alongside the report we have launched theiteams.org a living map to keep track of i-teams developing and emerging around the world, and to create a network of global government innovators. As James Anderson from Bloomberg Philanthropies says, “There’s no reason for every government to start its innovation efforts from scratch.” There is much we can learn from what is underway, what’s working and what’s not, to ensure all i-teams are using the most cutting edge techniques, methods and approaches….”

Online Tools Every Community Should Use

Curated on Posted on by Stefaan Verhulst

at NationSwell: “Larger cities like Chicago, San Francisco and New York continue to innovate civic technology and bridge the divide between citizens and government, while this progress is leaving small communities behind.
Without digital tools, staff or infrastructure in place to bring basic services online, small local governments and their citizens are suffering from a digital divide. But one Silicon Valley mind is determined to break that barrier and help smaller cities understand how they can join the digital movement…any civic technology should include the following eight tools:
Bullets: Crime-related data that give residents a sense of how safety is handled in the city.
Examples: CrimeAround.Us, Crime in Chicago, Oakland Crimespotting
Bills: Providing citizens with more transparency around legislative data.
Examples: OpenGov’s AmericaDecoded, MySociety’s SayIt, Councilmatic
Budget: Making public finances and city spending available online.
Examples: OpenGov.com, OpenSpending, Look at Cook
Buses: Transportation tools to help residents with schedules, planning, etc.
Examples: OpenTripPlanner, OneBusAway
Data: Open, organized, municipal information.
Examples: Socrata, NuData, CKAN, OpenDataCatalog, Junar
411: An online information hotline used in the same regard as the phone version.
Examples: CityAnswers, MindMixer, OSQA
311: Non-emergency online assistance including reporting things like road repairs.
Examples: SeeClickFix, PublicStuff, Connected Bits, Service Tracker, Open311Mobile
211:  A social services hotline for services including health, jobs training and housing.
Examples: Aunt Bertha, Purple Binder, Connect Chicago
“The opportunity is that we have the chance to take all of these components that are being built as open-source tools and turn them into companies that offer them to cities as hosted platforms,” Nemani told Next City. “Even a 10-person shop can put in a credit card number and pay a hundred dollars a month for one of these tools.”
While Nemani admits each city will be different — some places are too small for transportation components — working towards a template is critical to make civic technology accessible for everyone. But by focusing on these eight tools, any town is off to a great start….”

Meet the UK start-ups changing the world with open data

Curated on Posted on by Stefaan Verhulst
Sophie Curtis in The Telegraph: “Data is more accessible today than anyone could have imagined 10 or 20 years ago. From corporate databases to social media and embedded sensors, data is exploding, with total worldwide volume expected to reach 6.6 zettabytes by 2020.
Open data is information that is available for anyone to use, for any purpose, at no cost. For example, the Department for Education publishes open data about the performance of schools in England, so that companies can create league tables and citizens can find the best-performing schools in their catchment area.
Governments worldwide are working to open up more of their data. Since January 2010, more than 18,500 UK government data sets have been released via the data.gov.uk web portal, creating new opportunities for organisations to build innovative digital services.
Businesses are also starting to realise the value of making their non-personal data freely available, with open innovation leading to the creation products and services that they can benefit from….

Now a range of UK start-ups are working with the ODI to build businesses using open data, and have already unlocked a total of £2.5 million worth of investments and contracts.
Mastodon C joined the ODI start-up programme at its inception in December 2012. Shortly after joining, the company teamed up with Ben Goldacre and Open Healthcare UK, and embarked on a project investigating the use of branded statins over the far cheaper generic versions.
The data analysis identified potential efficiency savings to the NHS of £200 million. The company is now also working with the Technology Strategy Board and Nesta to help them gain better insight into their data.
Another start-up, CarbonCulture is a community platform designed to help people use resources more efficiently. The company uses high-tech metering to monitor carbon use in the workplace and help clients save money.
Organisations such as 10 Downing Street, Tate, Cardiff Council, the GLA and the UK Parliament are using the company’s digital tools to monitor and improve their energy consumption. CarbonCulture has also helped the Department of Energy and Climate Change reduce its gas use by 10 per cent.
Spend Network’s business is built on collecting the spend statements and tender documents published by government in the UK and Europe and then publishing this data openly so that anyone can use it. The company currently hosts over £1.2 trillion of transactions from the UK and over 1.8 million tenders from across Europe.
One of the company’s major breakthroughs was creating the first national, open spend analysis for central and local government. This was used to uncover a 45 per cent delay in the UK’s tendering process, holding up £22 billion of government funds to the economy.
Meanwhile, TransportAPI uses open data feeds from Traveline, Network Rail and Transport for London to provide nationwide timetables, departure and infrastructure information across all modes of public transport.
TransportAPI currently has 700 developers and organisations signed up to its platform, including individual taxpayers and public sector organisations like universities and local authorities. Travel portals, hyperlocal sites and business analytics are also integrating features, such as the ‘nearest transport’ widget, into their websites.
These are just four examples of how start-ups are using open data to create new digital services. The ODI this week announced seven new open data start-ups joining the programme, covering 3D printed learning materials, helping disabled communities, renewable energy markets, and smart cities….”

Is Crowdsourcing the Future for Legislation?

Curated on Posted on by Stefaan Verhulst

Brian Heaton in GovTech: “…While drafting legislation is traditionally the job of elected officials, an increasing number of lawmakers are using digital platforms such as Wikispaces and GitHub to give constituents a bigger hand in molding the laws they’ll be governed by. The practice has been used this year in both California and New York City, and shows no signs of slowing down anytime soon, experts say.
Trond Undheim, crowdsourcing expert and founder of Yegii Inc., a startup company that provides and ranks advanced knowledge assets in the areas of health care, technology, energy and finance, said crowdsourcing was “certainly viable” as a tool to help legislators understand what constituents are most passionate about.
“I’m a big believer in asking a wide variety of people the same question and crowdsourcing has become known as the long-tail of answers,” Undheim said. “People you wouldn’t necessarily think of have something useful to say.”
California Assemblyman Mike Gatto, D-Los Angeles, agreed. He’s spearheaded an effort this year to let residents craft legislation regarding probate law — a measure designed to allow a court to assign a guardian to a deceased person’s pet. Gatto used the online Wikispaces platform — which allows for Wikipedia-style editing and content contribution — to let anyone with an Internet connection collaborate on the legislation over a period of several months.
The topic of the bill may not have been headline news, but Gatto was encouraged by the media attention his experiment received. As a result, he’s committed to running another crowdsourced bill next year — just on a bigger, more mainstream public issue.
New York City Council Member Ben Kallos has a plethora of technology-related legislation being considered in the Big Apple. Many of the bills are open for public comment and editing on GitHub. In an interview with Government Technology last month, Kallos said he believes using crowdsourcing to comment on and edit legislation is empowering and creates a different sense of democracy where people can put forward their ideas.
County governments also are joining the crowdsourcing trend. The Catawba Regional Council of Governments in South Carolina and the Centralia Council of Governments in North Carolina are gathering opinions on how county leaders should plan for future growth in the region.
At a public forum earlier this year, attendees were given iPads to go online and review four growth options and record their views on which they preferred. The priorities outlined by citizens will be taken back to decision-makers in each of the counties to see how well existing plans match up with what the public wants.
Gatto said he’s encouraged by how quickly the crowdsourcing of policy has spread throughout the U.S. He said there’s a disconnect between governments and their constituencies who believe elected officials don’t listen. But that could change as crowdsourcing continues to make its impact on lawmakers.
“When you put out a call like I did and others have done and say ‘I’m going to let the public draft a law and whatever you draft, I’m committed to introducing it … I think that’s a powerful message,” Gatto said. “I think the public appreciates it because it makes them understand that the government still belongs to them.”

Protecting the Process

Despite the benefits crowdsourcing brings to the legislative process, there remain some question marks about whether it truly provides insight into the public’s feelings on an issue. For example, because many political issues are driven by the influence of special interest groups, what’s preventing those groups from manipulating the bill-drafting process?
Not much, according to Undheim. He cautioned policymakers to be aware of the motivations from people taking part in crowdsourcing efforts to write and edit laws. Gatto shared Undheim’s concerns, but noted that the platform he used for developing his probate law – Wikispaces – has safeguards in place so that a member of his staff can revert language of a crowdsourced bill back to a previous version if it’s determined that someone was trying to unduly influence the drafting process….”

Smart cities from scratch? a socio-technical perspective

Curated on Posted on by Stefaan Verhulst

Paper by Luís Carvalho in Cambridge Journal of Regions, Economy and Society: “This paper argues that contemporary smart city visions based on ITs (information and tele- communication technologies) configure complex socio-technical challenges that can benefit from strategic niche management to foster two key processes: technological learning and societal embedding. Moreover, it studies the extent to which those processes started to unfold in two paradigmatic cases of smart city pilots ‘from scratch’: Songdo (South Korea) and PlanIT Valley (Portugal). The rationale and potentials of the two pilots as arenas for socio-technical experimentation and global niche formation are analysed, as well as the tensions and bottlenecks involved in nurturing socially rich innovation ecosystems and in maintaining social and political support over time.”

Want to Brainstorm New Ideas? Then Limit Your Online Connections

Curated on Posted on by Stefaan Verhulst

Steve Lohr in the New York Times: “The digitally connected life is both invaluable and inevitable.

Anyone who has the slightest doubt need only walk down the sidewalk of any city street filled with people checking their smartphones for text messages, tweets, news alerts or weather reports or any number of things. So glued to their screens, they run into people or create pedestrian traffic jams.

Just when all the connectedness is useful and when it’s not is often difficult to say. But a recent research paper, published on the Social Science Research Network, titled “Facts and Figuring,” sheds some light on that question.

The research involved customizing a Pentagon lab program for measuring collaboration and information-sharing — a whodunit game, in which the subjects sitting at computers search for clues and solutions to figure out the who, what, when and where of a hypothetical terrorist attack.

The 417 subjects, played more than 1,100 rounds of the 25-minute web-based game, and they were mostly students from the Boston area, selected from the pool of volunteers in the Harvard Decision Science Laboratory and Harvard Business School’s Computer Lab for Experimental Research.

They could share clues and solutions. But the study was designed to measure the results from different network structures — densely clustered networks and unclustered networks of communication. Problem solving, the researchers write, involves “both search for information and search for solutions.” They found that “clustering promotes exploration in information space, but decreases exploration in solution space.”

In looking for unique facts or clues, clustering helped since members of the dense communications networks effectively split up the work and redundant facts were quickly weeded out, making them five percent more efficient. But the number of unique theories or solutions was 17.5 percent higher among subjects who were not densely connected. Clustering reduced the diversity of ideas.

The research paper, said Jesse Shore, a co-author and assistant professor at the Boston University School of Management, contributes to “the growing awareness that being connected all the time has costs. And we put a number to it, in an experimental setting.”

The research, of course, also showed where the connection paid off — finding information, the vital first step in decision making. “There are huge, huge benefits to information sharing,” said Ethan Bernstein, a co-author and assistant professor at the Harvard Business School. “But the costs are harder to measure.”…