Business of open data

The Internet has ushered us into an era where more people have access to unprecedented volume of information. This access has in turn triggered a seemingly insatiable desire for more information, more quickly and more conveniently. Why? People want access to information to translate into new knowledge After all, knowledge is power. In knowledge-based economies, knowledge derived from access to information, and not just material assets, becomes the platform for economic power. High quality information translates to improved ability of markets to create economic value. Conversely, lack of access to information makes it difficult businesses to economise market opportunities. 

 

Recognition of the economic and social benefits derived when access to information is facilitated, has led to the emergence of the open data movement. Open data is the term used to describe the notion or ideal that certain datasets should be freely available to everyone to use and republish as they wish, without restrictions from copyright, patents or other mechanisms of control. The goals of the open data movement are similar to those of other open movements such as open source and open standards. However, the term “open data” gained prominence following several high profile government open data initiatives.

 

Open government

If governments publish pubic datasets in open, easy-to-access formats, people will leverage the datasets to create the applications and services that they want. This natural innovation cycle is already reaping benefits for countries, cities and communities across the world. This dynamic process also brings new synergies to the relationship between governments, private sector and civil society as partners in national development. Governments are also using the open data model to clean-up and improve government data. For example, in the United Kingdom, the Department of Transport has solicited the public’s help to validate its database of bus stops. Local government agencies in India are using similar crowd-sourcing approaches to collect data on the bridges and culverts in remote municipalities. Information about national revenues, expenditure, education, energy, health, crime, transport and agriculture enables citizens and businesses to be better informed. However, the responsibility does not lie with government alone. 

 

The ability to create socially and commercially useful applications, products and services depends not just on government’s willingness to release data, but on the capacity of businesses, students, schools, civil society and individuals to effectively use it. Still, a major challenge to implementing open data lies in organisation and culture of government. There are those who prefer to remain as controllers and obstructionists to the release of public data. These self-appointed gatekeepers sometimes forget, or chose to ignore that pubic data is held in trust and ought to be available to the people. Persuading government bodies to publish non-personal public data requires a significant paradigm shift. Stewards of public information must excise themselves of any notion of personal empowerment derived from withholding access to public information. 

 

Incentive to innovate

Key to open data success is apprehension of the broader economic and social benefits that derive when public data is open to scrutiny, analysis and debate. Correct value must be placed on integrity, transparency and accountability. This requires leadership foresight. Several countries and advocacy groups have developed guiding principles to direct open data initiatives. Such guidelines are useful in establishing the philosophical framework to supports practical implementation. At both the national and organisational levels, open data frameworks establish the what, when and how for publishing government data. Some countries have defined open government licenses which grant blanket permission to re-use published government data. Such licenses provide developers and other potential user groups with the assurance that their downstream use of the data will be free of restriction and encumbrance. 

 

Publishing government datasets online is only the first step. Businesses, entrepreneurs and innovators are the ones to convert raw data into meaningful, valuable services. There is tremendous opportunity for companies in emerging markets to sell value-added services built on open data. But it does not stop there. Businesses can also get a competitive edge and create new market opportunities by making their own data open. The airline industry is a perfect example of this. After initially fighting services that republished flight schedules and fares, they realised that having flight data on more sites and in more searches meant more business. Now the industry widely recognises that both the airline companies and their newly empowered customers benefit from more information and more informed choices.

 

Reaping benefits

Not surprisingly, the flip side of all of this choice is a new set of challenges for businesses. Key questions must be asked and answered. “What kind of information is relevant to share? What is the cost of going ‘open’ and maintaining ‘open’? What new services can be built on open data? How can open enhance brand reputation?  How can ‘open’ improve customer satisfaction?” To reap the full benefits, owners and potential exploiters of data must be deliberate and diligent in how they answer these questions. Those who do will be able to leverage open data as a powerful strategic tool. In an age where knowledge powers innovation and competitiveness, knowledge must be fed by increased access to information. Open data provides a solid foundation for innovation and tremendous opportunities for technology to be used for the greater good.

 

 

It’s an open data world

In countries as varied as India and Ghana, the United Kingdom and Moldova, the potential value bound up in open data sets is being unlocked by creative developers. Financial institutions, charities, non-governmental organisations, universities and other depositories of information are also opening their data sets to the general public. 

 

New York

With a deliberate strategy focused on access to technology, engagement and industry, New York has emerged as one of the leading open data centers globally, with a repository of more than 850 datasets. http://open.gov.ny

 

Kenya

In 2011 Kenya launched one of sub-Saharan Africa’s first open data initiatives aimed squarely at improving government transparency, accountability and services by releasing some 160 datasets. http://open.gov.ke

 

Moldova

Moldova has become an international champion of open data with some 160 datasets from more than 20 public agencies. http://data.gov.md/

 

London, United Kingdom

London is one of the pioneers of the open data movement. Some of the most popular datasets being used by developers include datasets relating to housing, transport, crime and pollution.  http://data.london.gov.uk/

 

African Development Bank

Open Data for Africa provides access a range of economic and social datasets by the African Development Bank pertaining to food security, gender equality and climate change. http://opendataforafrica.org/

 

 

Bevil Wooding is an Internet strategist with the US-based research firm, Packet Clearing House and the chief knowledge officer at Congress WBN, an international non-profit organisation.

Follow on Twitter: 

@bevilwooding, and Facebook: 

facebook.com/bevilwooding