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Open Data Business Model Generation

Open Data Business Model Generation

Lecture at Bern University

Hannes Gassert

May 21, 2015
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  1. Opendata.ch
    Hannes Gassert, Civic Entrepreneur
    [email protected]
    Open Data Business
    Model Generation

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  2. Opendata.ch 2
    Open … Old Hippies?

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  3. Opendata.ch 3
    Open … Tiring Functionaries?

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  4. Opendata.ch 4
    Open … Big Business?

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  5. Opendata.ch 5
    CREATE MORE
    VALUE
    THAN YOU CAPTURE

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  6. Opendata.ch 6
    CREATE MORE
    VALUE
    THAN YOU CAPTURE
    Tim O'Reilly [1]

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  7. Opendata.ch 7
    „A business model
    is the logic of an
    organization to
    create value“
    Alexander Osterwalder[2]

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  8. Opendata.ch
    $5‘390‘000‘000‘000
    8
    McKinsey Global Institute[3]

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  9. Opendata.ch 9
    Tool:
    Business
    Model
    Canvas

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  21. Opendata.ch 21

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    Case Study 1:
    The Climate
    Corporation
    22

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    climate.com

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    climate.com

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  25. Opendata.ch 25
    climate.com

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  26. Opendata.ch
    Farmers
    - L
    - XL
    Crop Intelligence
    R&D
    Data centers
    Marketing
    Usage fees
    Better Crop
    Performance
    Time saving
    Cost saving
    Less risk
    Open data
    IP & Talent
    Govt. Data
    Providers
    Farming
    Consultants
    Refine data
    Visualize data
    Dealer/co-op
    network
    App/Web
    Personal
    assistance
    In-app hints

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  27. Opendata.ch
    Farmers
    - L
    - XL
    - M
    Crop Insurance
    R&D
    Data centers
    Marketing
    Usage fees
    Better Crop
    Performance
    Time saving
    Cost saving
    Less risk
    Open data
    IP & Talent
    Govt. Data
    Providers
    Farming
    Consultants
    Insurer
    Refine data
    Visualize data
    Brokering
    Insurance
    Agents
    App/Web
    Personal
    assistance
    In-app hints

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  28. Opendata.ch 28

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  29. Opendata.ch
    Case Study 2:
    Open Corporates
    29

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    Finance
    institutes
    - Banks
    - Payment
    processsors
    - ..
    Competitive
    Intelligence
    HR
    Corp. Intelligence
    Data acquisition
    Sales
    Freemium:
    API usage fees
    Data package sales
    Consulting
    “KYC”
    Know your
    customer
    Know your
    competitor
    Know your
    contractor
    Open Data
    Know-how
    Govt. Data
    Providers
    Extract data
    Refine data
    API
    Bulk data
    Web access
    Support
    Complaints

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  33. Opendata.ch
    Case Study 3:
    Europeana
    33

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    Verwayen,2012[7]

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    Perceived Rewards

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    Perceived Risks

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    Priorities

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    Metadata is created as a value proposition by
    itself...

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    Metadata is considered a key ressource used to
    improve the value of the objects..

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    Metadata is created as key activity, part of the
    mission of the institution to make the material
    more accessible...

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  47. Opendata.ch 47

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    Open Data Business
    Model Archetypes
    48

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  49. Opendata.ch
    Ferro & Osella,2013[4]

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    Canvas: Razor/Blades

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    8 Archetypes
    #1 Premium Products
    #2 Freemium Products
    # 3 Open-Source-Like
    #4 Infrastructural „Razor & Blades“
    #5 Demand-oriented Platforms
    # 6 Supply-Oriented Platforms
    #7 Free as Branded Ad vertizing
    #8 White-Label Development
    cf.Bonina,2014[6]

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  58. Opendata.ch
    $5‘390‘000‘000‘000?
    58

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  60. Opendata.ch
    Opendata500.com

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  61. Opendata.ch
    $5‘390‘000‘000‘000
    Made on the back of
    the people?
    61

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    „Just as the supply of basic physical
    infrastructure is essential to the
    traditional economy, so the supply of
    basic information ‘infrastructure’ is
    essential to the ‘information’ economy“.
    Pollock,2008[5]

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  63. Opendata.ch
    #1 Government funding: fund from
    general government revenues.
    #2 Updater funding: charge those who
    make changes to the datasets.
    #3 User funding: charge those who use
    the datasets.
    Funding Schemes

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    #A Profit-maximizing: setting prices to
    maximize profit given the demand faced.
    #B Cost-recovery: setting prices equal
    to average long-run costs.
    #C Marginal-cost: go towards zero.
    Pricing Schemes

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    -> Consumer surplus: value (utility) end
    consumers derive over any payments they
    make.
    -> Producer surplus: producers profits.
    -> Government: revenue / expenditure.
    -> Total welfare: weighted sum of these.
    Economic Goals

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  66. Opendata.ch
    Zero is different.
    Australian
    Bureau of
    Statistics:
    „Dissemination
    of Statistics“

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    „Most upstream, digital public sector
    information is best funded out of a combination
    of ‘updater’ fees and direct government
    contributions with users permitted free and open
    access. Appropriately managed and regulated this
    model offers major societal benefits from
    increased provision and access to information-
    based services while imposing a very limited
    funding burden upon government.“
    Economic Conclusion
    Pollock,2008[5]

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  68. Opendata.ch 68
    See also: GPS.

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  69. Opendata.ch 69
    ENABLING
    VALUE CREATION
    PARTICULARLY WHEN
    SPECULATIVE.
    APTURE

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  70. Opendata.ch 70
    ENABLING
    VALUE CREATION
    PARTICULARLY WHEN
    SPECULATIVE.
    APTURE

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  71. Opendata.ch 71
    ENABLING
    VALUE CREATION
    PARTICULARLY WHEN
    SPECULATIVE.
    APTURE

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  72. Opendata.ch 72
    ENABLING
    BUSINESS MODEL
    INNOVATION
    WITH BASIC DATA
    INFRASTRUCTURES.

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  73. Opendata.ch
    $5‘390‘000‘000’00!
    73

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  74. Opendata.ch
    MERCI!
    [email protected]
    74

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  75. Opendata.ch 75
    Sources
    [1] Tim O'Reilly, 2013: Stanford Entrepreneurial Thought Leaders Lecture Series;
    http://ecorner.stanford.edu/authorMaterialInfo.html?mid=3103
    [2] Alexander Osterwalder & Yves Pigneur, IMD, 2010: Business Model Generation;
    http://businessmodelgeneration.com/book
    [3] Michael Chui et al, McKinsey Global Institute, 2014;
    http://www.mckinsey.com/insights/high_tech_telecoms_internet/
    what_executives_should_know_about_open_data
    [4] Enrico Ferro & Michele Osella, Istituto Superiore Mario Boella, 2013: Eight Business Model
    Archetypes for PSI Re-Use; http://www.w3.org/2013/04/odw/odw13_submission_27.pdf
    [5] Rufus Pollock, University of Cambridge, 2008: The Economics of Public Sector Information;
    http://rufuspollock.org/papers/economics_of_psi.pdf
    [6] Dr. Carla M. Bonina, London School of Economics and Political Science, 2013: New business
    models and the value of open data: definitions, challenges and opportunities;
    http://www.nemode.ac.uk/wp-content/uploads/2013/11/Bonina-Opendata-Report-FINAL.pdf
    [7] Harry Verwayen, Europeana: Business Model Innovation, Policies and Practices in Archives,
    2012; http://www.slideshare.net/hverwayen/business-model-innovation-open-data

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  76. Opendata.ch 76
    Der Event zum
    Open Data Durchbruch
    in der Schweiz.
    Alle Akteure.
    Alle Themen.
    Volle Beschleunigung.
    Die Debatte geht hier in Bern mit der
    Opendata.ch/2015 in die nächste Runde!

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