Entrepreneurs Shape Free Data Into Money

Curated on Posted on by Stefaan Verhulst
Angus Loten in the Wall Street Journal: “More cities are putting information on everything from street-cleaning schedules to police-response times and restaurant inspection reports in the public domain, in the hope that people will find a way to make money off the data.
Supporters of such programs often see them as a local economic stimulus plan, allowing software developers and entrepreneurs in cities ranging from San Francisco to South Bend, Ind., to New York, to build new businesses based on the information they get from government websites.
When Los Angeles Mayor Eric Garcetti issued an executive directive last month to launch the city’s open-data program, he cited entrepreneurs and businesses as important beneficiaries. Open-data promotes innovation and “gives companies, individuals, and nonprofit organizations the opportunity to leverage one of government’s greatest assets: public information,” according to the Dec. 18 directive.
A poster child for the movement might be 34-year-old Matt Ehrlichman of Seattle, who last year built an online business in part using Seattle work permits, professional licenses and other home-construction information gathered up by the city’s Department of Planning and Development.
While his website is free, his business, called Porch.com, has more than 80 employees and charges a $35 monthly fee to industry professionals who want to boost the visibility of their projects on the site.
The site gathers raw public data—such as addresses for homes under renovation, what they are doing, who is doing the work and how much they are charging—and combines it with photos and other information from industry professionals and homeowners. It then creates a searchable database for users to compare ideas and costs for projects near their own neighborhood.
…Ian Kalin, director of open-data services at Socrata, a Seattle-based software firm that makes the back-end applications for many of these government open-data sites, says he’s worked with hundreds of companies that were formed around open data.
Among them is Climate Corp., a San Francisco-based firm that collects weather and yield-forecasting data to help farmers decide when and where to plant crops. Launched in 2006, the firm was acquired in October by Monsanto Co. MON -2.90% , the seed-company giant, for $930 million.
Overall, the rate of new business formation declined nationally between 2006 and 2010. But according to the latest data from the Ewing Marion Kauffman Foundation, an entrepreneurship advocacy group in Kansas City, Mo., the rate of new business formation in Seattle in 2011 rose 9.41% in 2011, compared with the national average of 3.9%.
Other cities where new business formation was ahead of the national average include Chicago, Austin, Texas, Baltimore, and South Bend, Ind.—all cities that also have open-data programs. Still, how effective the ventures are in creating jobs is difficult to gauge.
One wrinkle: privacy concerns about the potential for information—such as property tax and foreclosure data—to be misused.
Some privacy advocates fear that government data that include names, addresses and other sensitive information could be used by fraudsters to target victims.”

The Emergence Of The Connected City

Curated on Posted on by Stefaan Verhulst

Glen Martin at Forbes: “If the modern city is a symbol for randomness — even chaos — the city of the near future is shaping up along opposite metaphorical lines. The urban environment is evolving rapidly, and a model is emerging that is more efficient, more functional, more — connected, in a word.
This will affect how we work, commute, and spend our leisure time. It may well influence how we relate to one another, and how we think about the world. Certainly, our lives will be augmented: better public transportation systems, quicker responses from police and fire services, more efficient energy consumption. But there could also be dystopian impacts: dwindling privacy and imperiled personal data. We could even lose some of the ferment that makes large cities such compelling places to live; chaos is stressful, but it can also be stimulating.
It will come as no surprise that converging digital technologies are driving cities toward connectedness. When conjoined, ISM band transmitters, sensors, and smart phone apps form networks that can make cities pretty darn smart — and maybe more hygienic. This latter possibility, at least, is proposed by Samrat Saha of the DCI Marketing Group in Milwaukee. Saha suggests “crowdsourcing” municipal trash pick-up via BLE modules, proximity sensors and custom mobile device apps.
“My idea is a bit tongue in cheek, but I think it shows how we can gain real efficiencies in urban settings by gathering information and relaying it via the Cloud,” Saha says. “First, you deploy sensors in garbage cans. Each can provides a rough estimate of its fill level and communicates that to a BLE 112 Module.”
As pedestrians who have downloaded custom “garbage can” apps on their BLE-capable iPhone or Android devices pass by, continues Saha, the information is collected from the module and relayed to a Cloud-hosted service for action — garbage pick-up for brimming cans, in other words. The process will also allow planners to optimize trash can placement, redeploying receptacles from areas where need is minimal to more garbage-rich environs….
Garbage can connectivity has larger implications than just, well, garbage. Brett Goldstein, the former Chief Data and Information Officer for the City of Chicago and a current lecturer at the University of Chicago, says city officials found clear patterns between damaged or missing garbage cans and rat problems.
“We found areas that showed an abnormal increase in missing or broken receptacles started getting rat outbreaks around seven days later,” Goldstein said. “That’s very valuable information. If you have sensors on enough garbage cans, you could get a temporal leading edge, allowing a response before there’s a problem. In urban planning, you want to emphasize prevention, not reaction.”
Such Cloud-based app-centric systems aren’t suited only for trash receptacles, of course. Companies such as Johnson Controls are now marketing apps for smart buildings — the base component for smart cities. (Johnson’s Metasys management system, for example, feeds data to its app-based Paoptix Platform to maximize energy efficiency in buildings.) In short, instrumented cities already are emerging. Smart nodes — including augmented buildings, utilities and public service systems — are establishing connections with one another, like axon-linked neurons.
But Goldstein, who was best known in Chicago for putting tremendous quantities of the city’s data online for public access, emphasizes instrumented cities are still in their infancy, and that their successful development will depend on how well we “parent” them.
“I hesitate to refer to ‘Big Data,’ because I think it’s a terribly overused term,” Goldstein said. “But the fact remains that we can now capture huge amounts of urban data. So, to me, the biggest challenge is transitioning the fields — merging public policy with computer science into functional networks.”…”

Engaging Citizens in Co-Creation in Public Services

Curated on Posted on by Stefaan Verhulst

New report by Professors Nambisan and Nambisan for the IBM Center for the Business of Government:  “The term “co-creation” refers to the development of new public services by citizens in partnership with governments. The authors present four roles that citizens co-creators often assume: explorer, ideator, designer, and diffuser.

  • Explorers identify/discover and define emerging and existing problems.
  • Ideators conceptualize novel solutions to well-defined problems.
  • Designers design and/or develop implementable solutions to well-defined problems.
  • Diffusers directly support or facilitate the adoption and diffusion of public service innovations and solutions among well-defined target populations.

Report authors Drs. Satish and Priya Nambisan of University of Wisconsin-Milwaukee provide detailed examples of citizens playing each of these roles.  They note that numerous forces contribute to the trend of citizens participating in government activities, “a shift from that of a passive service beneficiary to that of an active, informed partner or co-creator in public service innova­tion and problem-solving.“
The help government leaders craft successful co-creation programs, the report outlines four strategies to encourage citizen co-creation:

  1. Fit the approach to the innovation context
  2. Manage citizen expectations
  3. Link the internal organization with the external partners
  4. Embed citizen engagement in the broader context”

Building Creative Commons: The Five Pillars Of Open Source Finance

Curated on Posted on by Stefaan Verhulst

Brett Scott: “This is an article about Open Source Finance. It’s an idea I first sketched out at a talk I gave at the Open Data Institute in London. By ‘Open Source Finance’, I don’t just mean open source software programmes. Rather, I’m referring to something much deeper and broader. It’s a way of framing an overall change we might want to see in the financial system….

You can thus take on five conceptually separate, but mutualistic roles: Producer, consumer, validator, community member, or (competitive or complementary) breakaway. And these same five elements can underpin a future system of Open Source Finance. I’m framing this as an overall change we might want to see in the financial system, but perhaps we are already seeing it happening. So let’s look briefly at each pillar in turn.
Pillar 1: Access to the means of financial production
Very few of us perceive ourselves as offering financial services when we deposit our money in banks. Mostly we perceive ourselves as passive recipients of services. Put another way, we frequently don’t imagine we have the capability to produce financial services, even though the entire financial system is foundationally constructed from the actions of small-scale players depositing money into banks and funds, buying the products of companies that receive loans, and culturally validating the money system that the banks uphold. Let’s look though, at a few examples of prototypes that are breaking this down:

  1. Peer-to-peer finance models: If you decide to lend money to your friend, you directly perceive yourself as offering them a service. P2P finance platforms extend that concept far beyond your circle of close contacts, so that you can directly offer a financial service to someone who needs it. In essence, such platforms offer you access to an active, direct role in producing financial services, rather than an indirect, passive one.
  2. There are many interesting examples of actual open source financial software aimed at helping to fulfil the overall mission of an open source financial system. Check out Mifos and Cyclos, and Hamlets (developed by Community Forge’s Matthew Slater and others), all of which are designed to help people set up their own financial institutions
  3. Alternative currencies: There’s a reason why the broader public are suddenly interested in understanding Bitcoin. It’s a currency that people have produced themselves. As a member of the Bitcoin community, I am much more aware of my role in upholding – or producing – the system, than I am when using normal money, which I had no conscious role in producing. The scope toinvent your own currency goes far beyond crypto-currencies though: local currencies, time-banks, and mutual credit systems are emerging all over
  4. The Open Bank Project is trying to open up banks to third party apps that would allow a depositor to have much greater customisability of their bank account. It’s not aimed at bypassing banks in the way that P2P is, but it’s seeking to create an environment where an ecosystem of alternative systems can plug into the underlying infrastructure provided by banks

Pillar 2: Widespread distribution
Financial intermediaries like banks and funds serve as powerful gatekeepers to access to financing. To some extent this is a valid role – much like a publisher or music label will attempt to only publish books or music that they believe are high quality enough – but on the other hand, this leads to excessive power vested in the intermediaries, and systematic bias in what gets to survive. When combined with a lack of democratic accountability on the part of the intermediaries, you can have whole societies held hostage to the (arbitrary) whims, prejudices and interests of such intermediaries. Expanding access to financial services is thus a big front in the battle for financial democratisation. In addition to more traditional means to buildingfinancial inclusion – such as credit unions and microfinance – here are two areas to look at:

  • Crowdfunding: In the dominant financial system, you have to suck up to a single set of gatekeepers to get financing, hoping they won’t exclude you. Crowdfunding though, has expanded access to receiving financial services to a whole host of people who previously wouldn’t have access, such as artists, small-scale filmmakers, activists, and entrepreneurs with no track record. Crowdfunding can serve as a micro redistribution system in society, offering people a direct way to transfer wealth to areas that traditional welfare systems might neglect
  • Mobile banking: This is a big area, with important implications for international development and ICT4D. Check out innovations like M-Pesain Kenya, a technology to use mobile phones as proto-bank accounts. This in itself doesn’t necessarily guarantee inclusion, but it expands potential access to the system to people that most banks ignore

Pillar 3: The ability to monitor
Do you know where the money in the big banks goes? No, of course not. They don’t publish it, under the guise of commercial secrecy and confidentiality. It’s like they want to have their cake and eat it: “We’ll act as intermediaries on your behalf, but don’t ever ask for any accountability”. And what about the money in your pension fund? Also very little accountability. The intermediary system is incredibly opaque, but attempts to make it more transparent are emerging. Here are some examples:

  • Triodos Bank and Charity Bank are examples of banks that publish exactly what projects they lend to. This gives you the ability to hold them to account in a way that no other bank will allow you to do
  • Corporations are vehicles for extracting value out of assets and then distributing that value via financial instruments to shareholders and creditors. Corporate structures though, including those used by banks themselves, have reached a level of complexity approaching pure obsfucation. There can be no democratic accountability when you can’t even see who owns what, and how the money flows. Groups likeOpenCorporates and Open Oil though, are offering new open data tools to shine a light on the shadowy world of tax havens, ownership structures and contracts
  • Embedded in peer-to-peer models is a new model of accountability too. When people are treated as mere account numbers with credit scores by banks, the people in return feel little accountability towards the banks. On the other hand, if an individual has directly placed trust in me, I feel much more compelled to respect that

Pillar 4: An ethos of non-prescriptive DIY collaboration
At the heart of open source movements is a deep DIY ethos. This is in part about the sheer joy of producing things, but also about asserting individual power over institutionalised arrangements and pre-established officialdom. Alongside this, and deeply tied to the DIY ethos, is the search to remove individual alienation: You are not a cog in a wheel, producing stuff you don’t have a stake in, in order to consume stuff that you don’t know the origins of. Unalienated labour includes the right to produce where you feel most capable or excited.
This ethos of individual responsibility and creativity stands in contrast to the traditional passive frame of finance that is frequently found on both the Right and Left of the political spectrum. Indeed, the debates around ‘socially useful finance’ are seldom about reducing the alienation of people from their financial lives. They’re mostly about turning the existing financial sector into a slightly more benign dictatorship. The essence of DIY though, is to band together, not via the enforced hierarchy of the corporation or bureaucracy, but as part of a likeminded community of individuals creatively offering services to each other. So let’s take a look at a few examples of this

  1. BrewDog’s ‘Equity for Punks‘ share offering is probably only going to attract beer-lovers, but that’s the point – you get together as a group who has a mutual appreciation for a project, and you finance it, and then when you’re drinking the beer you’ll know you helped make it happen in a small way
  2. Community shares offer local groups the ability to finance projects that are meaningful to them in a local area. Here’s one for a solar co-operative, a pub, and a ferry boat service in Bristol
  3. We’ve already discussed how crowdfunding platforms open access to finance to people excluded from it, but they do this by offering would-be crowdfunders the chance to support things that excite them. I don’t have much cash, so I’m not in a position to actively finance people, but in my Indiegogo profile you can see I make an effort helping to publicise campaigns that I want to receive financing

Pillar 5: The right to fork
The right to dissent is a crucial component of a democratic society. But for dissent to be effective, it has to be informed and constructive, rather than reactive and regressive. There is much dissent towards the current financial system, but while people are free to voice their displeasure, they find it very difficult to actually act on their displeasure. We may loathe the smug banking oligopoly, but we’re frequently compelled to use them.
Furthermore, much dissent doesn’t have a clear vision of what alternative is sought. This is partially due to the fact that access to financial ‘source code’ is so limited. It’s hard to articulate ideas about what’s wrong when one cannot articulate how the current system operates. Most financial knowledge is held in proprietary formulations and obscure jargon-laden language within the financial sector, and this needs to change. It’s for this reason that I’m building the London School of Financial Activism, so ordinary people can explore the layers of financial code, from the deepest layer – the money itself – and then on to the institutions, instruments and networks that move it around….”

Brainlike Computers, Learning From Experience

Curated on Posted on by Stefaan Verhulst

The New York Times: “Computers have entered the age when they are able to learn from their own mistakes, a development that is about to turn the digital world on its head.

The first commercial version of the new kind of computer chip is scheduled to be released in 2014. Not only can it automate tasks that now require painstaking programming — for example, moving a robot’s arm smoothly and efficiently — but it can also sidestep and even tolerate errors, potentially making the term “computer crash” obsolete.

The new computing approach, already in use by some large technology companies, is based on the biological nervous system, specifically on how neurons react to stimuli and connect with other neurons to interpret information. It allows computers to absorb new information while carrying out a task, and adjust what they do based on the changing signals.

In coming years, the approach will make possible a new generation of artificial intelligence systems that will perform some functions that humans do with ease: see, speak, listen, navigate, manipulate and control. That can hold enormous consequences for tasks like facial and speech recognition, navigation and planning, which are still in elementary stages and rely heavily on human programming.

Designers say the computing style can clear the way for robots that can safely walk and drive in the physical world, though a thinking or conscious computer, a staple of science fiction, is still far off on the digital horizon.

“We’re moving from engineering computing systems to something that has many of the characteristics of biological computing,” said Larry Smarr, an astrophysicist who directs the California Institute for Telecommunications and Information Technology, one of many research centers devoted to developing these new kinds of computer circuits.

Conventional computers are limited by what they have been programmed to do. Computer vision systems, for example, only “recognize” objects that can be identified by the statistics-oriented algorithms programmed into them. An algorithm is like a recipe, a set of step-by-step instructions to perform a calculation.

But last year, Google researchers were able to get a machine-learning algorithm, known as a neural network, to perform an identification task without supervision. The network scanned a database of 10 million images, and in doing so trained itself to recognize cats.

In June, the company said it had used those neural network techniques to develop a new search service to help customers find specific photos more accurately.

The new approach, used in both hardware and software, is being driven by the explosion of scientific knowledge about the brain. Kwabena Boahen, a computer scientist who leads Stanford’s Brains in Silicon research program, said that is also its limitation, as scientists are far from fully understanding how brains function.”

Open data policies, their implementation and impact: A framework for comparison

Curated on Posted on by Stefaan Verhulst

Paper by A Zuiderwijk, M Janssen in the Government Information Quarterly: “In developing open data policies, governments aim to stimulate and guide the publication of government data and to gain advantages from its use. Currently there is a multiplicity of open data policies at various levels of government, whereas very little systematic and structured research has been done on the issues that are covered by open data policies, their intent and actual impact. Furthermore, no suitable framework for comparing open data policies is available, as open data is a recent phenomenon and is thus in an early stage of development. In order to help bring about a better understanding of the common and differentiating elements in the policies and to identify the factors affecting the variation in policies, this paper develops a framework for comparing open data policies. The framework includes the factors of environment and context, policy content, performance indicators and public values. Using this framework, seven Dutch governmental policies at different government levels are compared. The comparison shows both similarities and differences among open data policies, providing opportunities to learn from each other’s policies. The findings suggest that current policies are rather inward looking, open data policies can be improved by collaborating with other organizations, focusing on the impact of the policy, stimulating the use of open data and looking at the need to create a culture in which publicizing data is incorporated in daily working processes. The findings could contribute to the development of new open data policies and the improvement of existing open data policies.”

People Powered Social Innovation: The Need for Citizen Engagement

Curated on Posted on by Stefaan Verhulst

Paper for the Lien Centre for Social Innovation (Singapore): “the Citizen engagement is widely regarded as critical to the development and implementation of social innovation. What is citizen engagement? What does it mean in the context of social innovation? Julie Simon and Anna Davies discuss the importance as well as the implications of engaging the ground…”

How could technology improve policy-making?

Curated on Posted on by Stefaan Verhulst

Beccy Allen from the Hansard Society (UK): “How can civil servants be sure they have the most relevant, current and reliable data? How can open data be incorporated into the policy making process now and what is the potential for the future use of this vast array of information? How can parliamentary clerks ensure they are aware of the broadest range of expert opinion to inform committee scrutiny? And how can citizens’ views help policy makers to design better policy at all stages of the process?
These are the kind of questions that Sense4us will be exploring over the next three years. The aim is to build a digital tool for policy-makers that can:

  1. locate a broad range of relevant and current information, specific to a particular policy, incorporating open data sets and citizens’ views particularly from social media; and
  2. simulate the consequences and impact of potential policies, allowing policy-makers to change variables and thereby better understand the likely outcomes of a range of policy options before deciding which to adopt.

It is early days for open data and open policy making. The word ‘digital’ peppers the Civil Service Reform Plan but the focus is often on providing information and transactional services digitally. Less attention is paid to how digital tools could improve the nature of policy-making itself.
The Sense4us tool aims to help bridge the gap. It will be developed in consultation with policy-makers at different levels of government across Europe to ensure its potential use by a wide range of stakeholders. At the local level, our partners GESIS (the Leibniz-Institute for the Social Sciences) will be responsible for engaging with users at the city level in Berlin and in the North Rhine-Westphalia state legislature At the multi-national level Government to You (Gov2u) will engage with users in the European Parliament and Commission. Meanwhile the Society will be responsible for national level consultation with civil servants, parliamentarians and parliamentary officials in Whitehall and Westminster exploring how the tool can be used to support the UK policy process. Our academic partners leading on technical development of the tool are the IT Innovation Centre at Southampton University, eGovlab at Stockholm University, the University of Koblenz-Landau and the Knowledge Media Institute at the Open University.”

Web Science: Understanding the Emergence of Macro-Level Features on the World Wide Web

Curated on Posted on by Stefaan Verhulst

Monograph by Kieron O’Hara, Noshir S. Contractor, Wendy Hall, James A. Hendler and Nigel Shadbolt in Foundations and Trends in Web Sciences: “Web Science considers the development of Web Science since the publication of ‘A Framework for Web Science’ (Berners-Lee et al., 2006). This monograph argues that the requirement for understanding should ideally be accompanied by some measure of control, which makes Web Science crucial in the future provision of tools for managing our interactions, our politics, our economics, our entertainment, and – not least – our knowledge and data sharing…
In this monograph we consider the development of Web Science since the launch of this journal and its inaugural publication ‘A Framework for Web Science’ [44]. The theme of emergence is discussed as the characteristic phenomenon of Web-scale applications, where many unrelated micro-level actions and decisions, uninformed by knowledge about the macro-level, still produce noticeable and coherent effects at the scale of the Web. A model of emergence is mapped onto the multitheoretical multilevel (MTML) model of communication networks explained in [252]. Four specific types of theoretical problem are outlined. First, there is the need to explain local action. Second, the global patterns that form when local actions are repeated at scale have to be detected and understood. Third, those patterns feed back into the local, with intricate and often fleeting causal connections to be traced. Finally, as Web Science is an engineering discipline, issues of control of this feedback must be addressed. The idea of a social machine is introduced, where networked interactions at scale can help to achieve goals for people and social groups in civic society; an important aim of Web Science is to understand how such networks can operate, and how they can control the effects they produce on their own environment.”

Open Data in Action

Curated on Posted on by Stefaan Verhulst
Nick Sinai at the White House: “Over the past few years, the Administration has launched a series of Open Data Initiatives, which, have released troves of valuable data in areas such as health, energy, education, public safety, finance, and global development…
Today, in furtherance of this exciting economic dynamic, The Governance Lab (The GovLab) —a research institution at New York University—released the beta version of its Open Data 500 project—an initiative designed to identify, describe, and analyze companies that use open government data in order to study how these data can serve business needs more effectively. As part of this effort, the organization is compiling a list of 500+ companies that use open government data to generate new business and develop new products and services.
This working list of 500+ companies, from sectors ranging from real estate to agriculture to legal services, shines a spotlight on surprising array of innovative and creative ways that open government data is being used to grow the economy – across different company sizes, different geographies, and different industries. The project includes information about  the companies and what government datasets they have identified as critical resources for their business.
Some of examples from the Open Data 500 Project include:
  • Brightscope, a San Diego-based company that leverages data from the Department of Labor, the Security and Exchange Commission, and the Census Bureau to rate consumers’ 401k plans objectively on performance and fees, so companies can choose better plans and employees can make better decisions about their retirement options.
  • AllTuition, a  Chicago-based startup that provides services—powered by data from Department of Education on Federal student financial aid programs and student loans— to help students and parents manage the financial-aid process for college, in part by helping families keep track of deadlines, and walking them through the required forms.
  • Archimedes, a San Francisco healthcare modeling and analytics company, that leverages  Federal open data from the National Institutes of Health, the Centers for Disease Control and Prevention, and the Center for Medicaid and Medicare Services, to  provide doctors more effective individualized treatment plans and to enable patients to make informed health decisions.
You can learn more here about the project and view the list of open data companies here.

See also:
Open Government Data: Companies Cash In

NYU project touts 500 top open-data firms”