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….”

European Commission encourages re-use of public sector data

Curated on Posted on by Stefaan Verhulst

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

France: Rapport de la Commission Open Data en santé

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“La Commission « open data en santé », qui s’est réunie de novembre 2013 à mai 2014, avait pour mission de débattre, dans un cadre pluraliste associant les parties prenantes, des enjeux et des propositions en matière d’accès aux données de santé.
Ce rapport, remis le 9 juillet 2014 à Marisol Touraine, Ministre des Affaires sociales et de la Santé, retrace les travaux et discussions de la Commission :

  • Un panorama de l’existant (partie 1) : définitions des concepts, état du droit, présentation de la gouvernance, présentation de l’accès aux données du SNIIRAM et du PMSI, cartographie des données de santé et enseignements tirés des expériences étrangères ;
  • Les enjeux pour l’avenir (partie 2) ;
  • Les actions à mener (partie 3) : données à ouvrir en open data, orientations en matière de données réidentifiantes, données relatives aux professionnels et aux établissements.

Ce rapport a été adopté consensuellement par l’ensemble des membres de la commission, qui partagent des attentes communes et fortes.”
Rapport final commission open data (pdf – 1 Mo) – [09/07/2014] – [MAJ : 09/07/2014]

Introduction to Open Geospatial Consortium (OGC) Standards

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Joseph McGenn; Dominic Taylor; Gail Millin-Chalabi (Editor); Kamie Kitmitto (Editor) at Jorum : “The onset of the Information Age and Digital Revolution has created a knowledge based society where the internet acts as a global platform for the sharing of information. In a geospatial context, this resulted in an advancement of techniques in how we acquire, study and share geographic information and with the development of Geographic Information Systems (GIS), locational services, and online mapping, spatial data has never been more abundant. The transformation to this digital era has not been without its drawbacks, and a forty year lack of common polices to data sharing has resulted in compatibility issues and great diversity in how software and data are delivered. Essential to the sharing of spatial information is interoperability, where different programmes can exchange and open data from various sources seamlessly. Applying universal standards across a sector provides interoperable solutions. The Open Geospatial Consortium (OGC) facilitates interoperability by providing open standard specifications which organisations can use to develop geospatial software. This means that two separate pieces of software or platforms, if developed using open standard specifications, can exchange data without compatibility issues. By defining these specifications and standards the OGC plays a crucial role in how geospatial information is shared on a global scale. Standard specifications are the invisible glue that holds information systems together, without which, data sharing generally would be an arduous task. On some level they keep the world spinning and this course will instil some appreciation for them from a geospatial perspective. This course introduces users to the OGC and all the common standards in the context of geoportals and mapping solutions. These standards are defined and explored using a number of platforms and interoperability is demonstrated in a practical sense. Finally, users will implement these standards to develop their own platforms for sharing geospatial information.”

U.S. Secretary of Commerce Penny Pritzker Announces Expansion and Enhancement of Commerce Data Programs

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Press Release from the U.S. Secretary of Commerce:Department will hire first-ever Chief Data Officer

As “America’s Data Agency,” the Department of Commerce is prepared and well-positioned to foster the next phase in the open data revolution. In line with President Obama’s Year of Action, U.S. Secretary of Commerce Penny Pritzker today announced a series of steps taken to enhance and expand the data programs at the Department.
“Data is a key pillar of the Department’s “Open for Business Agenda,” and for the first time, we have made it a department-wide strategic priority,” said Secretary of Commerce Penny Pritzker. “No other department can rival the reach, depth and breadth of the Department of Commerce’s data programs. The Department of Commerce is working to unleash more of its data to strengthen the nation’s economic growth; make its data easier to access, understand, and use; and maximize the return of data investments for businesses, entrepreneurs, government, taxpayers, and communities.”
Secretary Pritzker made a number of major announcements today as a special guest speaker at the Environmental Systems Research Institute’s (Esri) User Conference in San Diego, California. She discussed the power and potential of open data, recognizing that data not only enable start-ups and entrepreneurs, move markets, and empower companies large and small, but also touch the lives of Americans every day.
In her remarks, Secretary Pritzker outlined new ways the Department of Commerce is working to unlock the potential of even more open data to make government smarter, including the following:
Chief Data Officer
Today, Secretary Pritzker announced the Commerce Department will hire its first-ever Chief Data Officer. This leader will be responsible for developing and implementing a vision for the future of the diverse data resources at Commerce.
The new Chief Data Officer will pull together a platform for all data sets; instigate and oversee improvements in data collection and dissemination; and ensure that data programs are coordinated, comprehensive, and strategic.
The Chief Data Officer will hold the key to unlocking more government data to help support a data-enabled Department and economy.
Trade Developer Portal
The International Trade Administration has launched its “Developer Portal,” an online toolkit to put diverse sets of trade and investment data in a single place, making it easier for the business community to use and better tap into the 95 percent of American customers that live overseas.
In creating this portal, the Commerce Department is making its data public to software developers, giving them access to authoritative information on U.S. exports and international trade to help U.S. businesses export and expand their operations in overseas markets. The developer community will be able to integrate the data into applications and mashups to help U.S. business owners compete abroad while also creating more jobs here at home.
Data Advisory Council
Open data requires open dialogue. To facilitate this, the Commerce Department is creating a data advisory council, comprised of 15 private sector leaders that will advise the Department on the best use of government data.
This new advisory council will help Commerce maximize the value of its data by:

  • discovering how to deliver data in more usable, timely, and accessible ways;
  • improving how data is utilized and shared to make businesses and governments more responsive, cost-effective, and efficient;
  • better anticipating customers’ needs; and
  • collaborating with the private sector to develop new data products and services.

The council’s primary focus will be on the accessibility and usability of Commerce data, as well as the transformation of the Department’s supporting infrastructure and procedures for managing data.
These data leaders will represent a broad range of business interests—reflecting the wide range of scientific, statistical, and other data that the Department of Commerce produces. Members will serve two-year terms and will meet about four times a year. The advisory council will be housed within the Economics and Statistics Administration.”
Commerce data inform decisions that help make government smarter, keep businesses more competitive and better inform citizens about their own communities – with the potential to guide up to $3.3 trillion in investments in the United States each year.

The open data imperative

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Paper by Geoffrey Boulton in Insights: the UKSG journal: “The information revolution of recent decades is a world historical event that is changing the lives of individuals, societies and economies and with major implications for science, research and learning. It offers profound opportunities to explore phenomena that were hitherto beyond our power to resolve, and at the same time is undermining the process whereby concurrent publication of scientific concept and evidence (data) permitted scrutiny, replication and refutation and that has been the bedrock of scientific progress and of ‘self-correction’ since the inception of the first scientific journals in the 17th century. Open publication, release and sharing of data are vital habits that need to be redefined and redeveloped for the modern age by the research community if it is to exploit technological opportunities, maintain self-correction and maximize the contribution of research to human understanding and welfare.”

GitHub: A Swiss Army knife for open government

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FCW: “Today, more than 300 government agencies are using the platform for public and private development. Cities (Chicago, Philadelphia, San Francisco), states (New York, Washington, Utah) and countries (United Kingdom, Australia) are sharing code and paving a new road to civic collaboration….

In addition to a rapidly growing code collection, the General Services Administration’s new IT development shop has created a “/Developer program” to “provide comprehensive support for any federal agency engaged in the production or use of APIs.”
The Consumer Financial Protection Bureau has built a full-blown website on GitHub to showcase the software and design work its employees are doing.
Most of the White House’s repos relate to Drupal-driven websites, but the Obama administration has also shared its iOS and Android apps, which together have been forked nearly 400 times.

Civic-focused organizations — such as the OpenGov Foundation, the Sunlight Foundation and the Open Knowledge Foundation — are also actively involved with original projects on GitHub. Those projects include the OpenGov Foundation’s Madison document-editing tool touted by the likes of Rep. Darrell Issa (R-Calif.) and the Open Knowledge Foundation’s CKAN, which powers hundreds of government data platforms around the world.
According to GovCode, an aggregator of public government open-source projects hosted on GitHub, there have been hundreds of individual contributors and nearly 90,000 code commits, which involve making a set of tentative changes permanent.
The nitty-gritty
Getting started on GitHub is similar to the process for other social networking platforms. Users create individual accounts and can set up “organizations” for agencies or cities. They can then create repositories (or repos) to collaborate on projects through an individual or organizational account. Other developers or organizations can download repo code for reuse or repurpose it in their own repositories (called forking), and make it available to others to do the same.
Collaborative aspects of GitHub include pull requests that allow developers to submit and accept updates to repos that build on and grow an open-source project. There are wikis, gists (code snippet sharing) and issue tracking for bugs, feature requests, or general questions and answers.
GitHub provides free code hosting for all public repos. Upgrade offerings include personal and organizational plans based on the number of private repos. For organizations that want a self-hosted GitHub development environment, GitHub Enterprise, used by the likes of CFPB, allows for self-hosted, private repos behind a firewall.
GitHub’s core user interface can be unwelcoming or even intimidating to the nondeveloper, but GitHub’s Pages package offers Web-hosting features that include domain mapping and lightweight content management tools such as static site generator Jekyll and text editor Atom.
Notable government projects that use Pages are the White House’s Project Open Data, 18F’s /Developer Program, CFPB’s Open Tech website and New York’s Open Data Handbook. Indeed, Wired recently commented that the White House’s open-data GitHub efforts “could help fix government.”…
See also: GitHub for Government (GovLab)

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….”

Liberating Data to Transform Health Care

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Erika G. Martin,  Natalie Helbig, and  Nirav R. Shah on New York’s Open Data Experience in JAMA: “The health community relies on governmental survey, surveillance, and administrative data to track epidemiologic trends, identify risk factors, and study the health care delivery system. Since 2009, a quiet “open data” revolution has occurred. Catalyzed by President Obama’s open government directive, federal, state, and local governments are releasing deidentified data meeting 4 “open” criteria: public accessibility, availability in multiple formats, free of charge, and unlimited use and distribution rights.1 As of February 2014, HealthData.gov, the federal health data repository, has more than 1000 data sets, and Health Data NY, New York’s health data site, has 48 data sets with supporting charts and maps. Data range from health interview surveys to administrative transactions. The implicit logic is that making governmental data readily available will improve government transparency; increase opportunities for research, mobile health application development, and data-driven quality improvement; and make health-related information more accessible. Together, these activities have the potential to improve health care quality, reduce costs, facilitate population health planning and monitoring, and empower health care consumers to make better choices and live healthier lives.”

Mass Big Data Report

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Mass Tech: “The 2014 Mass Big Data Report: A Foundation for Global Leadership has been assembled and released with support from the Innovation Institute at the Massachusetts Technology Collaborative and the Massachusetts Competitive Partnership.  This report represents a foundational analysis of the regional Mass Big Data ecosystem and its position as a global leader in the expanding fields of big data, open data, and analytics.
As a special project of the Governor’s Mass Big Data Initiative, this report seeks to provide an initial baseline understanding of the landscape of the Mass Big Data ecosystem and its challenges, opportunities, and strong potential for growth.
Through this work, we are pleased to report that the Mass Big Data ecosystem represents an extraordinarily fertile region for growth in data-driven enterprise and offers a unique combination of advantages on which to build the future of our data-rich world.
With strengths across the spectrum of big data industry sectors and in key supporting areas such as talent development, research, and innovation, our region is producing the people, businesses, and products that fuel the explosive growth in this expanding field.
To download the report, click on the image below: