THE

BUSINESS OF OPEN DATA

JENI T ENNISON @ JENIT TECHNICAL D IRECTOR J ENI@THEODI.ORG

WHERE'S THE BENEFIT?

WHAT DOES OPEN MEAN?

for everyone not limited by funds not limited by who they are not limited by what they intend to do everyone else benets from my work? everyone benets including you! how?

THREE MODEL TYPES

freemium free entry level, charged added value cross-subsidy get extra benet from your data network eects collaborate in rich data environment

CLOSED DATA

data

data

customer

licensing

selling enforcing data customer

salespeople lawyers

licensing

DEMAND CURVES
price

revenue

quantity

SHIFTS IN DEMAND
price new revenue

quantity

RISKS OF SHIFTING DEMAND

content web has changed everything hit every content industry music, lm, books, news, encyclopedias data web is changing everything hit every data industry avoid risk by selling data whose demand won't shift reorienting your business

FREEMIUM

open data

everyone

closed data

few

EXAMPLE BUSINESSES
share-alike dual licence pay OpenCorporates to use privately added-value products pay GeoLytix to get up-to-date data better service pay Placr to exceed rate limits

CROSS-SUBSIDY

data

data

EXAMPLE BUSINESSES
increase demand for paid-for services Placr gets paid for customisation increase brand awareness GeoLytix enhances their reputation ensure your longevity Gazettes guarantees notice income make customers happy [media company] gives customers tools

NETWORK EFFECTS

SIMPLE DATA FLOW MODEL owner

collects & maintains publishes

infomediary

adds value provides service

end user

REAL-WORLD DATA FLOWS

infomediary end user

owner

infomediary

owner end user

data

COLLABORATE
distributed eort
reduced cost enhanced value
contributor informed

host benets
improved data moderation

examples
MusicBrainz OpenStreetMap legislation.gov.uk

data

reduced

MIX IT UP!

PRIMARY DATA
takes eort
collect maintain
collect maintain

and investment
people equipment
data

examples
Met Oce book publishers census
people equipment

EXHAUST DATA
support activity no extra eort no extra cost examples
till receipts phone usage customer data accounts
as usual

data

as usual

COMBINING MODELS
dierent data suits dierent models primary or exhaust? who else is involved? what's the data quality like? dierent models can combine collaborate on shared open data which is used to underpin services and gains freemium revenue

WHAT DO YOU THINK?

comment on draft business model guide http://personal.crocodoc.com/4t2sJhn questions? @JeniT jeni@theodi.org