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Best Practices/Apply Open Data Business Model Patterns and Open Data Business Value Disciplines
Share-PSI 2.0 Best Practice Apply Open Data Business Model Patterns and Open Data Business Value Disciplines
Contents
Outline
Business models for Open Data and PSI re-use have emerged in response to the economic opportunities presented by the increasing availability of open data. In order to identify and define a clear and successful business model, a 6-Value (6-V) business model framework has been defined. This 6-Value (6-V) business model framework, created following the Design Science Research (DSR) tradition, can be used as design artefact to facilitate the explication and detailed analysis of existing open data business models in practice.
Based on the results from the analysis, business model patterns and emerging core value disciplines for open data businesses were defined. The existing open data business models help in linking them to the overall business strategy through value disciplines.
Management summary
Challenge
Businesses are struggling to comprehend and adapt to the changes brought on by the ubiquitous growth of Open Data and Big Data. Open Data companies are facing difficulty understanding how Open Data can be used in their business and how revenue can be generated out of using Open Data. Businesses confused Business Model with Revenue Model, Pricing Mechanisms, Business Architecture and etc. There is no clear understanding of what Open Data Business Model is and how it can affects the operation of the business.
Offering valuable products and services to customers that can meet their needs and generating revenue require the business to have a good Business Model. In Open Data space - both in practice and research communities- there is no 'Open Data Value Discipline' and 'Open Data Business Model Patterns' for businesses which utilize Open Data somewhere in their operation.
Solution
Components to address the challenges:
- The 6-Vs (6-values) Business Model Framework
- the 6-Vs are developed to allow businesses of any size and nature to identify Business Model components that better suit their business ideas. The 6-Vs model provides the main 6 components any Business Model should consider.
- Open Data Value Disciplines
- four (4) Open Data Value Disciplines are introduced to Open Data businesses that can provide them with a clear understanding of the exact need of the customer.
- Open Data Business Model Patterns
- five (5) Open Data Business Model Patterns are designed to provide Open Data Businesses with a concrete understanding of the Business Model that suits better to their business needs based on the Value Discipline they identified earlier.
| VALUE DISCIPLINES / BUSINESS MODELS CATEGORIES | Usefulness | Process Improvement | Performance | Customer Loyalty |
|---|---|---|---|---|
| Parts of Tools | NA | NA | NA | Infrastructural Razor and Blades |
| Indirect Benefit | NA | NA | Support Primary Business | NA |
| Cost Saving | Increasing Quality through Participation | Cost Avoidance | NA | |
| Premium | Sponsorship, Support and Services, Demand-Oriented Platform, Supply-Oriented Platform, White-Label Development | NA | NA | Premium |
| Freemium | Freemium, Dual-Licensing, Charging for Changes, Open Source, Free as Branded-Advertising | NA | NA | NA |
Best Practice identification
Why is this a Best Practice? What’s the impact of the Best Practice
- The three solutions can include any business/company that re-use Open Data in their operation
- The framework constructed is the result of a rich study done on Business domain
- It positively affects the way Open Data businesses operate
- It provides start-ups and entrepreneurs with the information they need at the very first stage of their business
- It clarifies issues (Business Model related issues) business managers might have when designing Business Model
- It allows -through identification of Value Disciplines- business managers to define and target at the customer's need
Links to the PSI Directive
Why is there a need for this Best Practice?
Businesses are the engine of the economy of a country. Businesses should be well served with the support they require in order to operate and have influence and impact on the country's economy. In respect to businesses re-using PSI -as Open Data is a new area and this space requires further exploration and exploitation- and in response to the challenges they face regarding understanding the use of PSI, data generation, licensing, data aggregation and processing, re-use of data, governments and research communities should explore this domain and provide frameworks, models, patterns, sophisticated tools, standards, policies and guidelines.
This Business Model Framework and patterns can be used by PSI re-use businesses to better understand the usage of PSI and how they can meet the need of the customers and market and how to generate revenue.
What do you need for this Best Practice?
- Member states and mature PSI re-use businesses around the world need to expand and extend their collaboration with research institutes and experts in the subject.
- There is a need for identification of real case studies.
- In addition, it is necessary that more workshops and conferences address issues raised by the real cases such as businesses in respect to how PSI can be used for generation of a new product, services and new businesses.
Applicability to other Member States
The developed framework and patterns are applicable for all Open Data businesses or PSI driven businesses around the world, more specifically in all European countries.
The developed solutions are not limited to any specific location or business size.
Contact info
- Fatemeh Ahmadi-Zeleti Fatemeh.ahmadizeleti@insight-centre.org
- For editorial issues: martin@w3.org