Abstract
Abstract: Since 2009, Open Government Data initiatives have been launched worldwide and the concept of open data is gaining momentum. Open data are often associated with realizing ambitions, such as a more transparent and efficient government, solving societal problems and increased economic value. However, between proposing an open data policy and successful implementation are some practicable obstacles, especially for government agencies required to generate sufficient revenue to cover their operating costs, so-called self-funding agencies. With lost revenue due to open data, there is a real risk that the update frequency and the quality of data may suffer or that the open data policy may even have to be reversed. This article has researched the financial effects of open data policies for self-funding agencies on their business model. The article provides some hands-on proposals for self-funding agencies having to implement an open data policy whilst ensuring their long-term sustainability.
Highlights
Our research questions are: Which business models are currently employed by government open data providers and How can such a business model be made sustainable to ensure the availability of high quality open data in the long term? As part of our research, we have studied the effects of open data on the business
We focus on the service component as it forms the starting point of any business model, and on the financial component as this component determines the sustainability of all other components, i.e., the finances determine the level of service, the technical and organisational aspects
This article has researched business models that may be suitable for self-funding government agencies that are considering or are in the process of implementing open data policies
Summary
Open government data are often associated with realizing ambitions such as a more transparent and efficient government (e.g., Huijboom and van den Broek 2011), improved citizens’ participation (Jetzek 2013), solving societal problems (e.g., Uhlir 2009) and increasing economic value by companies creating innovative products and services using open data as a resource Self-funding agencies are often monopolist providers of such high-value data and rely on income generated by licence fees for supplying data as part of their business model (Onsrud 1992). Model of three Dutch government agencies, the Kadaster, the National Transport Agency (RDW) and the Dutch Chamber of Commerce, and one research institute TNO These cases were selected because the first three organisations are self-funding agencies allowed by law to charge fees for data, and the fourth case concerns a non-governmental organisation with a public mandate. The Companies House was selected because their public tasks and datasets are comparable to the Dutch Chamber of Commerce and have recently switched to providing open data These case studies may offer inspiration for other government agencies having to make the switch from fee-based data and services to open data
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