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OPEN DATA VALUE NETWORK Next Media Hyperlocal Tomi Kinnari Aalto University School of Business Researcher 19.9.2012
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OPEN DATA VALUE NETWORK Next Media Hyperlocal
Tomi Kinnari
Aalto University School of Business
Researcher 19.9.2012
Open Data
• Open source, open content, public sector information re-use, open knowledge, open notebook science, ..
– Freely available on the net, with a license allowing commercial re-use
– Can be published by government or private sector
• Prime Minister Katainen’s Government program 2011
– “Information resources produced using public funding will be opened up for public and corporate access”
19.9.2012 http://blogit.hs.fi/hsnext/tallaista-datajournalismia-syntyi-hs-open-5ssa
Business aspects of open data
• Business model analysis
– Offering
– Resources
– Relationships
– Revenue model
– Management mindset
• Method
– Case study with 14 Finnish companies
• Results
– Business model analysis
– Finnish open data value network
19.9.2012
14 Companies were interviewed
19.9.2012
The identified open data value network in Finland
Five value network profiles were identified
19.9.2012
1. Extract & Transform
• Extract and transform as part of data analyzing
– Data extraction and transformation is necessary before any data analysis can be performed
• Extract and transform as separate business
– No commercial activity has yet risen
– Example: pro-bono soRvi toolkit by Louhos shows lots of potential
• Revenue model: none yet
19.9.2012
2. Data Analysers
• Data visualizers
– Create novel visualizations combining open data from different sources
– Example: Hahmota taxtree offers unique visualization method
• Algorithm based analysis
– Example : Asiakastieto with 40 M€ revenue
• Revenue model
– Project work
– Transaction based pricing
– Modular ecosystem
– Pro-bono
19.9.2012
3. User Experience Provider
• Utilize open data to create an attractive website or a mobile client
– Most popular (7 out of 14 companies)
– Example: Duunitori.fi plots job openings on a map and enriches them with other data sources
• Revenue model
– Advertisements
– One-time fee
– Subscription
– Crowd funded
19.9.2012
4. Commercial Data Publisher
• Co-creation with open license
– Example: HSL Reittiopas – ReittiGPS. HSL saves client development and maintenance costs. ReittiGPS gets revenue from selling the application in Appstore.
• Co-creation with restricted license
– Example: The Guardian Open Platform or Google Maps API
– Pricing of the API needs to be well thought to encourage grassroots activity
• Revenue model: cost savings with crowd sourcing
19.9.2012
Findings about open data
• Versatile revenue models, especially with user experience providers
• Extract & transform lacks commercial activity
• Standardized APIs and information formats important for the scalability and continuity of the open data business
• The value of raw data is 0 €, without an service adding value to it
19.9.2012
How to utilize these results?
19.9.2012
Simplified Open Data Value Network
19.9.2012
Open Data Value Network from Media Perspective
Media companies have similar role as user experience providers
19.9.2012
Open Data Value Network from Media Perspective
Two avenues of opportunities
19.9.2012
