Emerging Business Models for the

Open Data Industry:

Characterization and Analysis

Fatemeh Ahmadi, Adegboyega Ojo, Edward Curry

Dg.o (Digital Government Society) 2014, Aguascalientes City, Mexico

June 20, 2014

Introduction

• Business Models (BMs) are conceptual instruments for describing how

value is created and revenue is generated

• Open Data (OD) is a fast growing phenomenan

• OD enhance accountability, delivering quality services, reducing

operating cost and ….

• Today, businesses struggle to utilize OD (or if they do, they don’t realize

they are using OD) in their business in order to create value for their

stakeholders

Introduction

BMs

Open Data

Business

Models

(ODBMs)

OD

ODBMs are not undrestood very well:

• Revenue Models

• Pricing Strategies

• Distribution Models

• Marketing Techniques

• Architectural Models

e.g. Howard (2014): Open Source is ODBM

BUT

451 Group (2008): Open Source is not BM but a Distribution Model

A. Howard, “Open data economy: Eight business models for open data and insight from Deloitte U ,” O’Reilly Media, Inc., 2014.

The 451 group, “Open Source is not a Business Model,” New York, 2008

Introduction

Very few studies are available on BMs for OD

Addressing the Problem

… Our Analysis…

4. Determining the ODBMs patterns

5. Four value disciplines for open data businesses

1. Consolidating reported ODBMs in both academic and practice literature

(15 ODBMs)

2. Business Model Conceptual Framework (BMCF)

3. Describing 15 ODBMs based on a BMCF

Addressing the Problem

… Our Analysis…

4. Determining the ODBMs patterns

5. Five emerging value disciplines for open data businesses

1. Consolidating reported ODBMs in both academic and practice literature

(15 ODBMs)

2. Business Model Conceptual Framework (BMCF)

3. Describing 15 ODBMs based on a BMCF

Consolidating Reported ODBMs

Cost Avoidance, Sponsorship, Dual Licensing, Support and Services, Charging for

Changes, Increasing Quality through Participation, and Supporting Primary

Business (Musings (2012))

A. Howard, “Open data economy: Eight business models for open data and insight from Deloitte U ,” O’Reilly Media, Inc., 2014.

E. Ferro and M. Osella, “Eight Business Model Archetypes for PSI Re-Use,” London, 2013

J. Musings, “Open Data Business Models,” 2012. [Online]. Available: http://www.jenitennison.com/blog/node/172.

Premium, Freemium, Open Source, Infrastructural Razor & Blades, Demand-

Oriented Platform, Supply-Oriented Platform, Free as Branded Advertising and

White-Label Development (Howard (2014), Ferro and Osella (2013))

Addressing the Problem

… Our Analysis…

4. Determining the ODBMs patterns

5. Five emerging value disciplines for open data businesses

1. Consolidating reported ODBMs in both academic and practice literature

(15 ODBMs)

2. Business Model Conceptual Framework (BMCF)

3. Describing 15 ODBMs based on a BMCF

BMs Components

• Value Network

• Value Proposition

• Value Adding Process

Operational

Strategic Planning

Knowledge Management

• Value in Return

• Value Capture

• Value Management

Business Model Conceptual Framework

Addressing the Problem

… Our Analysis…

4. Determining the ODBMs patterns

5. Five emerging value disciplines for open data businesses

1. Consolidating reported ODBMs in both academic and practice literature

(15 ODBMs)

2. Business Model Conceptual Framework (BMCF)

3. Describing 15 ODBMs based on a BMCF

Describing 15 ODBMs Based on a BMCFFor each model we describe, the value propositions, core activities of the value adding

process, the network of stakeholders required to collaboratively deliver the value, specific

value produced and how the produced value will be captured.

Addressing the Problem

Tuesday, 26 November 2013

… Our Analysis…

4. Determining the ODBMs patterns

5. Five emerging value disciplines for open data businesses

1. Consolidating reported ODBMs in both academic and practice literature

(15 ODBMs)

2. Business Model Conceptual Framework (BMCF)

3. Describing 15 ODBMs based on a BMCF

Determining the ODBMs Patterns and Value Disciplines

Based on commonalities in the 15 ODBMs elaborated based on BMCF

Categories/Patterns: Based on commonalities in the Value Proposition

Value Disciplines: Based on comparison of Value Proposition and Value in Return

• BMs mentioned in our study are ODBMs

• All businesses MUST employ particular BM

• OD businesses MUST utilize ODBMs

• Before identifying BM, value discipline MUST be identified

• ODBM patterns and value disciplines SIGNIFICANTLY AID business

to effectively deliver value to the stakeholders

Conclusion

• More research is required in OD value discipline

• Research on ODBMs

• Many BM researches are based on the perception of the researchers

=>

• Empirical studies are necessary to confirm prior BM theoretical

studies

Further Research

Thank You

**Acknowledgment**

This wordk is financially supported by PaaSport Project (FP7)