Selected Readings on Economic Impact of Open Data


The Living Library’s Selected Readings series seeks to build a knowledge base on innovative approaches for improving the effectiveness and legitimacy of governance. This curated and annotated collection of recommended works on the topic of open data was originally published in 2014.

Open data is publicly available data – often released by governments, scientists, and occasionally private companies – that is made available for anyone to use, in a machine-readable format, free of charge. Considerable attention has been devoted to the economic potential of open data for businesses and other organizations, and it is now widely accepted that open data plays an important role in spurring innovation, growth, and job creation. From new business models to innovation in local governance, open data is being quickly adopted as a valuable resource at many levels.

Measuring and analyzing the economic impact of open data in a systematic way is challenging, and governments as well as other providers of open data seek to provide access to the data in a standardized way. As governmental transparency increases and open data changes business models and activities in many economic sectors, it is important to understand best practices for releasing and using non-proprietary, public information. Costs, social challenges, and technical barriers also influence the economic impact of open data.

These selected readings are intended as a first step in the direction of answering the question of if we can and how we consider if opening data spurs economic impact.

Selected Reading List (in alphabetical order)

Annotated Selected Reading List (in alphabetical order)

Bonina, Carla. New Business Models and the Values of Open Data: Definitions, Challenges, and Opportunities. NEMODE 3K – Small Grants Call 2013. http://bit.ly/1xGf9oe

  • In this paper, Dr. Carla Bonina provides an introduction to open data and open data business models, evaluating their potential economic value and identifying future challenges for the effectiveness of open data, such as personal data and privacy, the emerging data divide, and the costs of collecting, producing and releasing open (government) data.

Carpenter, John and Phil Watts. Assessing the Value of OS OpenData™ to the Economy of Great Britain – Synopsis. June 2013. Accessed July 25, 2014. http://bit.ly/1rTLVUE

  • John Carpenter and Phil Watts of Ordnance Survey undertook a study to examine the economic impact of open data to the economy of Great Britain. Using a variety of methods such as case studies, interviews, downlad analysis, adoption rates, impact calculation, and CGE modeling, the authors estimates that the OS OpenData initiative will deliver a net of increase in GDP of £13 – 28.5 million for Great Britain in 2013.

Capgemini Consulting. The Open Data Economy: Unlocking Economic Value by Opening Government and Public Data. Capgemini Consulting. Accessed July 24, 2014. http://bit.ly/1n7MR02

  • This report explores how governments are leveraging open data for economic benefits. Through using a compariative approach, the authors study important open data from organizational, technological, social and political perspectives. The study highlights the potential of open data to drive profit through increasing the effectiveness of benchmarking and other data-driven business strategies.

Deloitte. Open Growth: Stimulating Demand for Open Data in the UK. Deloitte Analytics. December 2012. Accessed July 24, 2014. http://bit.ly/1oeFhks

  • This early paper on open data by Deloitte uses case studies and statistical analysis on open government data to create models of businesses using open data. They also review the market supply and demand of open government data in emerging sectors of the economy.

Gruen, Nicholas, John Houghton and Richard Tooth. Open for Business: How Open Data Can Help Achieve the G20 Growth Target.  Accessed July 24, 2014, http://bit.ly/UOmBRe

  • This report highlights the potential economic value of the open data agenda in Australia and the G20. The report provides an initial literature review on the economic value of open data, as well as a asset of case studies on the economic value of open data, and a set of recommendations for how open data can help the G20 and Australia achieve target objectives in the areas of trade, finance, fiscal and monetary policy, anti-corruption, employment, energy, and infrastructure.

Heusser, Felipe I. Understanding Open Government Data and Addressing Its Impact (draft version). World Wide Web Foundation. http://bit.ly/1o9Egym

  • The World Wide Web Foundation, in collaboration with IDRC has begun a research network to explore the impacts of open data in developing countries. In addition to the Web Foundation and IDRC, the network includes the Berkman Center for Internet and Society at Harvard, the Open Development Technology Alliance and Practical Participation.

Howard, Alex. San Francisco Looks to Tap Into the Open Data Economy. O’Reilly Radar: Insight, Analysis, and Reach about Emerging Technologies.  October 19, 2012.  Accessed July 24, 2014. http://oreil.ly/1qNRt3h

  • Alex Howard points to San Francisco as one of the first municipalities in the United States to embrace an open data platform.  He outlines how open data has driven innovation in local governance.  Moreover, he discusses the potential impact of open data on job creation and government technology infrastructure in the City and County of San Francisco.

Huijboom, Noor and Tijs Van den Broek. Open Data: An International Comparison of Strategies. European Journal of ePractice. March 2011. Accessed July 24, 2014.  http://bit.ly/1AE24jq

  • This article examines five countries and their open data strategies, identifying key features, main barriers, and drivers of progress for of open data programs. The authors outline the key challenges facing European, and other national open data policies, highlighting the emerging role open data initiatives are playing in political and administrative agendas around the world.

Manyika, J., Michael Chui, Diana Farrell, Steve Van Kuiken, Peter Groves, and Elizabeth Almasi Doshi. Open Data: Unlocking Innovation and Performance with Liquid Innovation. McKinsey Global Institute. October 2013. Accessed July 24, 2014.  http://bit.ly/1lgDX0v

  • This research focuses on quantifying the potential value of open data in seven “domains” in the global economy: education, transportation, consumer products, electricity, oil and gas, health care, and consumer finance.

Moore, Alida. Congressional Transparency Caucus: How Open Data Creates Jobs. April 2, 2014. Accessed July 30, 2014. Socrata. http://bit.ly/1n7OJpp

  • Socrata provides a summary of the March 24th briefing of the Congressional Transparency Caucus on the need to increase government transparency through adopting open data initiatives. They include key takeaways from the panel discussion, as well as their role in making open data available for businesses.

Stott, Andrew. Open Data for Economic Growth. The World Bank. June 25, 2014. Accessed July 24, 2014. http://bit.ly/1n7PRJF

  • In this report, The World Bank examines the evidence for the economic potential of open data, holding that the economic potential is quite large, despite a variation in the published estimates, and difficulties assessing its potential methodologically. They provide five archetypes of businesses using open data, and provides recommendations for governments trying to maximize economic growth from open data.

Request for Proposals: Exploring the Implications of Government Release of Large Datasets


“The Berkeley Center for Law & Technology and Microsoft are issuing this request for proposals (RFP) to fund scholarly inquiry to examine the civil rights, human rights, security and privacy issues that arise from recent initiatives to release large datasets of government information to the public for analysis and reuse.  This research may help ground public policy discussions and drive the development of a framework to avoid potential abuses of this data while encouraging greater engagement and innovation.
This RFP seeks to:

    • Gain knowledge of the impact of the online release of large amounts of data generated by citizens’ interactions with government
    • Imagine new possibilities for technical, legal, and regulatory interventions that avoid abuse
    • Begin building a body of research that addresses these issues

– BACKGROUND –

 
Governments at all levels are releasing large datasets for analysis by anyone for any purpose—“Open Data.”  Using Open Data, entrepreneurs may create new products and services, and citizens may use it to gain insight into the government.  A plethora of time saving and other useful applications have emerged from Open Data feeds, including more accurate traffic information, real-time arrival of public transportation, and information about crimes in neighborhoods.  Sometimes governments release large datasets in order to encourage the development of unimagined new applications.  For instance, New York City has made over 1,100 databases available, some of which contain information that can be linked to individuals, such as a parking violation database containing license plate numbers and car descriptions.
Data held by the government is often implicitly or explicitly about individuals—acting in roles that have recognized constitutional protection, such as lobbyist, signatory to a petition, or donor to a political cause; in roles that require special protection, such as victim of, witness to, or suspect in a crime; in the role as businessperson submitting proprietary information to a regulator or obtaining a business license; and in the role of ordinary citizen.  While open government is often presented as an unqualified good, sometimes Open Data can identify individuals or groups, leading to a more transparent citizenry.  The citizen who foresees this growing transparency may be less willing to engage in government, as these transactions may be documented and released in a dataset to anyone to use for any imaginable purpose—including to deanonymize the database—forever.  Moreover, some groups of citizens may have few options or no choice as to whether to engage in governmental activities.  Hence, open data sets may have a disparate impact on certain groups. The potential impact of large-scale data and analysis on civil rights is an area of growing concern.  A number of civil rights and media justice groups banded together in February 2014 to endorse the “Civil Rights Principles for the Era of Big Data” and the potential of new data systems to undermine longstanding civil rights protections was flagged as a “central finding” of a recent policy review by White House adviser John Podesta.
The Berkeley Center for Law & Technology (BCLT) and Microsoft are issuing this request for proposals in an effort to better understand the implications and potential impact of the release of data related to U.S. citizens’ interactions with their local, state and federal governments. BCLT and Microsoft will fund up to six grants, with a combined total of $300,000.  Grantees will be required to participate in a workshop to present and discuss their research at the Berkeley Technology Law Journal (BTLJ) Spring Symposium.  All grantees’ papers will be published in a dedicated monograph.  Grantees’ papers that approach the issues from a legal perspective may also be published in the BTLJ. We may also hold a followup workshop in New York City or Washington, DC.
While we are primarily interested in funding proposals that address issues related to the policy impacts of Open Data, many of these issues are intertwined with general societal implications of “big data.” As a result, proposals that explore Open Data from a big data perspective are welcome; however, proposals solely focused on big data are not.  We are open to proposals that address the following difficult question.  We are also open to methods and disciplines, and are particularly interested in proposals from cross-disciplinary teams.

    • To what extent does existing Open Data made available by city and state governments affect individual profiling?  Do the effects change depending on the level of aggregation (neighborhood vs. cities)?  What releases of information could foreseeably cause discrimination in the future? Will different groups in society be disproportionately impacted by Open Data?
    • Should the use of Open Data be governed by a code of conduct or subject to a review process before being released? In order to enhance citizen privacy, should governments develop guidelines to release sampled or perturbed data, instead of entire datasets? When datasets contain potentially identifiable information, should there be a notice-and-comment proceeding that includes proposed technological solutions to anonymize, de-identify or otherwise perturb the data?
    • Is there something fundamentally different about government services and the government’s collection of citizen’s data for basic needs in modern society such as power and water that requires governments to exercise greater due care than commercial entities?
    • Companies have legal and practical mechanisms to shield data submitted to government from public release.  What mechanisms do individuals have or should have to address misuse of Open Data?  Could developments in the constitutional right to information policy as articulated in Whalen and Westinghouse Electric Co address Open Data privacy issues?
    • Collecting data costs money, and its release could affect civil liberties.  Yet it is being given away freely, sometimes to immensely profitable firms.  Should governments license data for a fee and/or impose limits on its use, given its value?
    • The privacy principle of “collection limitation” is under siege, with many arguing that use restrictions will be more efficacious for protecting privacy and more workable for big data analysis.  Does the potential of Open Data justify eroding state and federal privacy act collection limitation principles?   What are the ethical dimensions of a government system that deprives the data subject of the ability to obscure or prevent the collection of data about a sensitive issue?  A move from collection restrictions to use regulation raises a number of related issues, detailed below.
    • Are use restrictions efficacious in creating accountability?  Consumer reporting agencies are regulated by use restrictions, yet they are not known for their accountability.  How could use regulations be implemented in the context of Open Data efficaciously?  Can a self-learning algorithm honor data use restrictions?
    • If an Open Dataset were regulated by a use restriction, how could individuals police wrongful uses?   How would plaintiffs overcome the likely defenses or proof of facts in a use regulation system, such as a burden to prove that data were analyzed and the product of that analysis was used in a certain way to harm the plaintiff?  Will plaintiffs ever be able to beat first amendment defenses?
    • The President’s Council of Advisors on Science and Technology big data report emphasizes that analysis is not a “use” of data.  Such an interpretation suggests that NSA metadata analysis and large-scale scanning of communications do not raise privacy issues.  What are the ethical and legal implications of the “analysis is not use” argument in the context of Open Data?
    • Open Data celebrates the idea that information collected by the government can be used by another person for various kinds of analysis.  When analysts are not involved in the collection of data, they are less likely to understand its context and limitations.  How do we ensure that this knowledge is maintained in a use regulation system?
    • Former President William Clinton was admitted under a pseudonym for a procedure at a New York Hospital in 2004.  The hospital detected 1,500 attempts by its own employees to access the President’s records.  With snooping such a tempting activity, how could incentives be crafted to cause self-policing of government data and the self-disclosure of inappropriate uses of Open Data?
    • It is clear that data privacy regulation could hamper some big data efforts.  However, many examples of big data successes hail from highly regulated environments, such as health care and financial services—areas with statutory, common law, and IRB protections.  What are the contours of privacy law that are compatible with big data and Open Data success and which are inherently inimical to it?
    • In recent years, the problem of “too much money in politics” has been addressed with increasing disclosure requirements.  Yet, distrust in government remains high, and individuals identified in donor databases have been subjected to harassment.  Is the answer to problems of distrust in government even more Open Data?
    • What are the ethical and epistemological implications of encouraging government decision-making based upon correlation analysis, without a rigorous understanding of cause and effect?  Are there decisions that should not be left to just correlational proof? While enthusiasm for data science has increased, scientific journals are elevating their standards, with special scrutiny focused on hypothesis-free, multiple comparison analysis. What could legal and policy experts learn from experts in statistics about the nature and limits of open data?…
      To submit a proposal, visit the Conference Management Toolkit (CMT) here.
      Once you have created a profile, the site will allow you to submit your proposal.
      If you have questions, please contact Chris Hoofnagle, principal investigator on this project.”

Towards Timely Public Health Decisions to Tackle Seasonal Diseases With Open Government Data


Paper by Vandana Srivastava and Biplav Srivastava for the Workshops at the Twenty-Eighth AAAI Conference on Artificial Intelligence : “Improving public health is a major responsibility of any government, and is of major interest to citizens and scientific communities around the world. Here, one sees two extremes. On one hand, tremendous progress has been made in recent years in the understanding of causes, spread and remedies of common and regularly occurring diseases like Dengue, Malaria and Japanese Encephalistis (JE). On the other hand, public agencies treat these diseases in an ad hoc manner without learning from the experiences of previous years. Specifically, they would get alerted once reported cases have already arisen substantially in the known disease season, reactively initiate a few actions and then document the disease impact (cases, deaths) for that period, only to forget this learning in the next season. However, they miss the opportunity to reduce preventable deaths and sickness, and their corresponding economic impact, which scientific progress could have enabled. The gap is universal but very prominent in developing countries like India.
In this paper, we show that if public agencies provide historical disease impact information openly, it can be analyzed with statistical and machine learning techniques, correlated with best emerging practices in disease control, and simulated in a setting to optimize social benefits to provide timely guidance for new disease seasons and regions. We illustrate using open data for mosquito-borne communicable diseases; published results in public health on efficacy of Dengue control methods and apply it on a simulated typical city for maximal benefits with available resources. The exercise helps us further suggest strategies for new regions that may be anywhere in the world, how data could be better recorded by city agencies and what prevention methods should medical community focus on for wider impact.
Full Text: PDF

'Big Data' Will Change How You Play, See the Doctor, Even Eat


We’re entering an age of personal big data, and its impact on our lives will surpass that of the Internet. Data will answer questions we could never before answer with certainty—everyday questions like whether that dress actually makes you look fat, or profound questions about precisely how long you will live.

ADVERTISEMENT

Every 20 years or so, a powerful technology moves from the realm of backroom expertise and into the hands of the masses. In the late-1970s, computing made that transition—from mainframes in glass-enclosed rooms to personal computers on desks. In the late 1990s, the first web browsers made networks, which had been for science labs and the military, accessible to any of us, giving birth to the modern Internet.

Each transition touched off an explosion of innovation and reshaped work and leisure. In 1975, 50,000 PCs were in use worldwide. Twenty years later: 225 million. The number of Internet users in 1995 hit 16 million. Today it’s more than 3 billion. In much of the world, it’s hard to imagine life without constant access to both computing and networks.

The 2010s will be the coming-out party for data. Gathering, accessing and gleaning insights from vast and deep data has been a capability locked inside enterprises long enough. Cloud computing and mobile devices now make it possible to stand in a bathroom line at a baseball game while tapping into massive computing power and databases. On the other end, connected devices such as the Nest thermostat or Fitbit health monitor and apps on smartphones increasingly collect new kinds of information about everyday personal actions and habits, turning it into data about ourselves.

More than 80 percent of data today is unstructured: tangles of YouTube videos, news stories, academic papers, social network comments. Unstructured data has been almost impossible to search for, analyze and mix with other data. A new generation of computers—cognitive computing systems that learn from data—will read tweets or e-books or watch video, and comprehend its content. Somewhat like brains, these systems can link diverse bits of data to come up with real answers, not just search results.

Such systems can work in natural language. The progenitor is the IBM Watson computer that won on Jeopardy in 2011. Next-generation Watsons will work like a super-powered Google. (Google today is a data-searching wimp compared with what’s coming.)

Sports offers a glimpse into the data age. Last season the NBA installed in every arena technology that can “watch” a game and record, in 48 minutes of action, more than 4 million data points about every movement and shot. That alone could yield new insights for NBA coaches, such as which group of five players most efficiently passes the ball around….

Think again about life before personal computing and the Internet. Even if someone told you that you’d eventually carry a computer in your pocket that was always connected to global networks, you would’ve had a hard time imagining what that meant—imagining WhatsApp, Siri, Pandora, Uber, Evernote, Tinder.

As data about everything becomes ubiquitous and democratized, layered on top of computing and networks, it will touch off the most spectacular technology explosion yet. We can see the early stages now. “Big data” doesn’t even begin to describe the enormity of what’s coming next.”

Chief Executive of Nesta on the Future of Government Innovation


Interview between Rahim Kanani and Geoff Mulgan, CEO of NESTA and member of the MacArthur Research Network on Opening Governance: “Our aspiration is to become a global center of expertise on all kinds of innovation, from how to back creative business start-ups and how to shape innovations tools such as challenge prizes, to helping governments act as catalysts for new solutions,” explained Geoff Mulgan, chief executive of Nesta, the UK’s innovation foundation. In an interview with Mulgan, we discussed their new report, published in partnership with Bloomberg Philanthropies, which highlights 20 of the world’s top innovation teams in government. Mulgan and I also discussed the founding and evolution of Nesta over the past few years, and leadership lessons from his time inside and outside government.
Rahim Kanani: When we talk about ‘innovations in government’, isn’t that an oxymoron?
Geoff Mulgan: Governments have always innovated. The Internet and World Wide Web both originated in public organizations, and governments are constantly developing new ideas, from public health systems to carbon trading schemes, online tax filing to high speed rail networks.  But they’re much less systematic at innovation than the best in business and science.  There are very few job roles, especially at senior levels, few budgets, and few teams or units.  So although there are plenty of creative individuals in the public sector, they succeed despite, not because of the systems around them. Risk-taking is punished not rewarded.   Over the last century, by contrast, the best businesses have learned how to run R&D departments, product development teams, open innovation processes and reasonably sophisticated ways of tracking investments and returns.
Kanani: This new report, published in partnership with Bloomberg Philanthropies, highlights 20 of the world’s most effective innovation teams in government working to address a range of issues, from reducing murder rates to promoting economic growth. Before I get to the results, how did this project come about, and why is it so important?
Mulgan: If you fail to generate new ideas, test them and scale the ones that work, it’s inevitable that productivity will stagnate and governments will fail to keep up with public expectations, particularly when waves of new technology—from smart phones and the cloud to big data—are opening up dramatic new possibilities.  Mayor Bloomberg has been a leading advocate for innovation in the public sector, and in New York he showed the virtues of energetic experiment, combined with rigorous measurement of results.  In the UK, organizations like Nesta have approached innovation in a very similar way, so it seemed timely to collaborate on a study of the state of the field, particularly since we were regularly being approached by governments wanting to set up new teams and asking for guidance.
Kanani: Where are some of the most effective innovation teams working on these issues, and how did you find them?
Mulgan: In our own work at Nesta, we’ve regularly sought out the best innovation teams that we could learn from and this study made it possible to do that more systematically, focusing in particular on the teams within national and city governments.  They vary greatly, but all the best ones are achieving impact with relatively slim resources.  Some are based in central governments, like Mindlab in Denmark, which has pioneered the use of design methods to reshape government services, from small business licensing to welfare.  SITRA in Finland has been going for decades as a public technology agency, and more recently has switched its attention to innovation in public services. For example, providing mobile tools to help patients manage their own healthcare.   In the city of Seoul, the Mayor set up an innovation team to accelerate the adoption of ‘sharing’ tools, so that people could share things like cars, freeing money for other things.  In south Australia the government set up an innovation agency that has been pioneering radical ways of helping troubled families, mobilizing families to help other families.
Kanani: What surprised you the most about the outcomes of this research?
Mulgan: Perhaps the biggest surprise has been the speed with which this idea is spreading.  Since we started the research, we’ve come across new teams being created in dozens of countries, from Canada and New Zealand to Cambodia and Chile.  China has set up a mobile technology lab for city governments.  Mexico City and many others have set up labs focused on creative uses of open data.  A batch of cities across the US supported by Bloomberg Philanthropy—from Memphis and New Orleans to Boston and Philadelphia—are now showing impressive results and persuading others to copy them.
 

Business Models That Take Advantage of Open Data Opportunities


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….”

Big Money, Uncertain Return


Mary K. Pratt  in a MIT Technology Review Special Report on Data-Driven Health Care: “Hospitals are spending billions collecting and analyzing medical data. The one data point no one is tracking: the payoff…. Ten years ago, Kaiser Permanente began building a $4 billion electronic-health-record system that includes a comprehensive collection of health-care data ranging from patients’ treatment records to research-based clinical advice. Now Kaiser has added advanced analytics tools and data from more sources, including a pilot program that integrates information from patients’ medical devices.

Faced with new government regulations and insurer pressure to control costs, other health-care organizations are following Kaiser’s example and increasing their use of analytics. The belief: that mining their vast quantities of patient data will yield insights into the best treatments at the lowest cost.

But just how big will the financial payoff be? Terhilda Garrido, vice president of health IT transformation and analytics at Kaiser, admits she doesn’t know. Nor do other health-care leaders. The return on investment for health-care analytics programs remains elusive and nearly impossible for most to calculate…

Opportunities to identify the most effective treatments could slip away if CIOs and their teams aren’t able to quantify the return on their analytics investments. Health-care providers are under increasing pressure to cut costs in an era of capped billing, and executives at medical organizations won’t okay spending their increasingly limited dollars on data warehouses, analytics software, and data scientists if they can’t be sure they’ll see real benefit.

A new initiative at Cleveland Clinic shows the opportunities and challenges. By analyzing patients’ records on their overall health and medical conditions, the medical center determines which patients coming in for hip and knee replacements can get postoperative services in their own homes (the most cost-effective option), which ones will need a short stay in a skilled nursing facility, and which ones will have longer stints in a skilled nursing facility (the most costly option). The classifications control costs while still ensuring the best possible medical outcomes, says CIO C. Martin Harris.

That does translate into real—and significant—financial benefits, but Harris wonders how to calculate the payoff from his data investment. Should the costs of every system from which patient data is pulled be part of the equation in addition to the costs of the data warehouse and analytics tools? Calculating how much money is saved by implementing better protocols is not straightforward either. Harris hesitates to attribute better, more cost-effective patient outcomes solely to analytics when many other factors are also likely contributors…”

European Commission encourages re-use of public sector data


Press Release: “Today, the European Commission is publishing guidelines to help Member States benefit from the revised Directive on the re-use of public sector information (PSI Directive). These guidelines explain for example how to give access to weather data, traffic data, property asset data and maps. Open data can be used as the basis for innovative value-added services and products, such as mobile apps, which encourage investment in data-driven sectors. The guidelines published today are based on a detailed consultation and cover issues such as:

  1. Licencing: guidelines on when public bodies can allow the re-use of documents without conditions or licences; gives conditions under which the re-use of personal data is possible. For example:

  • Public sector bodies should not impose licences when a simple notice is sufficient;

  • Open licences available on the web, such as several “Creative Commons” licences can facilitate the re-use of public sector data without the need to develop custom-made licences;

  • Attribution requirement is sufficient in most cases of PSI re-use.

  1. Datasets: presents five thematic dataset categories that businesses and other potential re-users are mostly interested in and could thus be given priority for being made available for re-use. For example:

  • Postcodes, national and local maps;

  • Weather, land and water quality, energy consumption, emission levels and other environmental and earth data;

  • Transport data: public transport timetables, road works, traffic information;

  • Statistics: GDP, age, health, unemployment, income, education etc.;

  • Company and business registers.

  1. Cost: gives an overview on how public sector bodies, including libraries, museums and archives, should calculate the amount they should charge re-users for data. For example:

  • Where digital documents are downloaded electronically a no‑cost policy is recommended;

  • For cost-recovery charging, any income generated in the process of collecting or producing documents, e.g. from registration fees or taxes, should be subtracted from the total costs incurred so as to establish the ‘net cost’ of collection, production, reproduction and dissemination.

European Commission Vice President @NeelieKroesEU said: “This guidance will help all of us benefit from the wealth of information public bodies hold. Opening and re-using this data will lead to many new businesses and convenient services.

An independent report carried out by the consultants McKinsey in 2013 claimed that open data re-use could boost the global economy hugely; and a 2013 Spanish studyfound that commercial re-users in Spain could employ around 10,000 people and reach a business volume of €900 million….”

See also Speech by Neelie Kroes: Embracing the open opportunity

Neuroeconomics, Judgment, and Decision Making


New edited book by Evan A. Wilhelms, and Valerie F. Reyna: “This volume explores how and why people make judgments and decisions that have economic consequences, and what the implications are for human well-being. It provides an integrated review of the latest research from many different disciplines, including social, cognitive, and developmental psychology; neuroscience and neurobiology; and economics and business.

The book has six areas of focus: historical foundations; cognitive consistency and inconsistency; heuristics and biases; neuroeconomics and neurobiology; developmental and individual differences; and improving decisions. Throughout, the contributors draw out implications from traditional behavioral research as well as evidence from neuroscience. In recent years, neuroscientific methods have matured, beyond being simply correlational and descriptive, into theoretical prediction and explanation, and this has opened up many new areas of discovery about economic behavior that are reviewed in the book. In the final part, there are applications of the research to cognitive development, individual differences, and the improving of decisions.
The book takes a broad perspective and is written in an accessible way so as to reach a wide audience of advanced students and researchers interested in behavioral economics and related areas. This includes neuroscientists, neuropsychologists, clinicians, psychologists (developmental, social, and cognitive), economists and other social scientists; legal scholars and criminologists; professionals in public health and medicine; educators; evidence-based practitioners; and policy-makers.”

Social Network Sites as a Mode to Collect Health Data: A Systematic Review


New paper by Fahdah Alshaikh, et al, in J Med Internet Research: “Background: To date, health research literature has focused on social network sites (SNS) either as tools to deliver health care, to study the effect of these networks on behavior, or to analyze Web health content. Less is known about the effectiveness of these sites as a method for collecting data for health research and the means to use such powerful tools in health research.
Objective: The objective of this study was to systematically review the available literature and explore the use of SNS as a mode of collecting data for health research. The review aims to answer four questions: Does health research employ SNS as method for collecting data? Is data quality affected by the mode of data collection? What types of participants were reached by SNS? What are the strengths and limitations of SNS?
Methods: The literature was reviewed systematically in March 2013 by searching the databases MEDLINE, Embase, and PsycINFO, using the Ovid and PubMed interface from 1996 to the third week of March 2013. The search results were examined by 2 reviewers, and exclusion, inclusion, and quality assessment were carried out based on a pre-set protocol.
Results: The inclusion criteria were met by 10 studies and results were analyzed descriptively to answer the review questions. There were four main results. (1) SNS have been used as a data collection tool by health researchers; all but 1 of the included studies were cross-sectional and quantitative. (2) Data quality indicators that were reported include response rate, cost, timeliness, missing data/completion rate, and validity. However, comparison was carried out only for response rate and cost as it was unclear how other reported indicators were measured. (3) The most targeted population were females and younger people. (4) All studies stated that SNS is an effective recruitment method but that it may introduce a sampling bias.
Conclusions: SNS has a role in health research, but we need to ascertain how to use it effectively without affecting the quality of research. The field of SNS is growing rapidly, and it is necessary to take advantage of the strengths of this tool and to avoid its limitations by effective research design. This review provides an important insight for scholars who plan to conduct research using SNS.”