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Open Data for Economic and Social Development: Why Government Should Care 
Andrew Stott 
UK Transparency Board 
Senior Consultant, 
World Bank 
Istanbul 
17 Sep 2014 
@dirdigeng 
andrew.stott@dirdigeng.com
Policy Objectives of Open Data 
2 
New Economic and Social Value 
Improved public services 
More Transparent Government 
More Efficient Government
Clarity about objectives 
3 
More Efficient Government 
More Transparent Government 
Improved public services 
New Economic and Social Value
Policy Objectives of Open Data 
4 
New Economic and Social Value 
Improved public services 
More Transparent Government 
More Efficient Government
McKinsey Global Institute 
5
European Union 
6
Evidence base for EU Open Data Directive 
Open Gov Data in EU would 
‒increase business activity by up to €40 Bn/yr 
‒have total benefits up to €140 Bn/yr 
Open Data was reused 10x-100x more than charged-for data 
Lowering charges may attract new types of re- users, in particular SMEs. 
Costs appear to increase very little: in fact, they may eventually decrease 
7 
All economic analysis and case studies point the same way
Case Study: Statistics Germany 
8 
Users: +1800% Downloads: +800%
Omidyar/Lateral Economics 
9
What are the Open Data Businesses 
10
Aggregators 
11
Developers 
12
Enrichers 
13
$930m business from Open Data 
14 
Weather for 1m points 
60 years of crop yield data 
14 TB of soil data 
Company formed in 2006 
Sold to Monsanto October 2013 for $930m cash
Enablers 
15
Why is this not conclusive? 
16
Economic Benefits? Not our agency’s job! 
17
Set new objectives for data owning agencies 
18
Set new objectives for data owning agencies 
19
Economic Benefits? We want some of it! 
Charging economically sub-optimal 
Licensing inhibits innovation 
Hidden Costs – marketing, payment collection, enforcement 
Barriers to entry suit existing customers 
No real pressure for efficiency 
20
Open Data would cannibalise our income 
21
However Open Data can stimulate demand too 
22
Data Imperialism? 
23
Data Imperialism? 
~80% of the benefit goes to a country’s data end-users – citizens, businesses, visitors, investors 
~½ of the business value chain is intrinsically local (10% of total benefit) 
Therefore only 10% of total benefit is internationally contestable 
Worst case: country get 90% of the potential benefit from their data 
Best case: early-movers get to steal neighbours’ lunch as well 
24
Policy Objectives of Open Data 
25 
New Economic and Social Value 
Improved public services 
More Transparent Government 
More Efficient Government
Performance of individual hospitals 
26 
12+ Weeks MRSA-free 
Good C-Diff record 
Low Mortality 
2 recent 
MRSA 
Blood clots 
Patient 
ratings
1000 less heart surgery deaths each year 
27
Uganda: Open Data and Community Health Monitoring 
28 
33% reduction in under-5 mortality 
20% extra utilisation of out-patient services 
Significant improvements in: 
Immunization 
Waiting times 
Absenteeism
Police 
29
Open Data used to drive Citizen Engagement 
30 
Local team 
Telephone, website, Facebook and YouTube …. 
Local police Twitter feed 
How YOU can get involved 
It’s very local 
Accessible data on crime 
Attract 
Inform 
Engage 
Action
Why are Ministers taking blame for local variation? 
31
Push-back from professions 
32 
http://bma.org.uk/news-views-analysis/news/2013/june/consultants-face-online-rating
“We welcome this in principle but ….” (1) 
‘Some consultants may take on higher risk cases that would lead to raised mortality rates’ 
‘Some patients could have multiple health problems’ 
‘Most consultants work in teams.’ 
‘Patients’ experiences are obviously highly subjective’ 
‘A range of factors can affect the feedback they provide’ 
33
“We welcome this in principle but ….” (2) 
‘Different ways of working make it harder to gather meaningful data for patients’ 
‘It is critical that any information provided is accurate and in context.’ 
Whereas there are ways of comparing performance in some specialties, such as cardiothoracic surgery, in other areas it is much harder. 
‘It will be misleading and cause unnecessary anxiety to patients.’ 
34
Policy Objectives of Open Data 
35 
New Economic and Social Value 
Improved public services 
More Transparent Government 
More Efficient Government
36
Politicians start to get nervous …. 
37 
http://www.toptenz.net/top-10-crooked-american-politicians.php
It’s hard to uncover major issues 
38 
Input 
•285,000 records 
•1.17m rows of data 
•PDF documents Findings 
•$34bn spent in 8 years 
•Aid increased 1,965% 
•20 companies benefited most
Transparency is about what officials do too 
39
Civil Service pay and expenses 
40
Holding officials to account 
41
Pressure to justify and restrain costs 
42
Make officials’ responsibilities clearer 
43 
Where the person is in the structure 
Pay 
Responsibilities 
Contact details
International Corporate Transparency 
44
Policy Objectives of Open Data 
45 
New Economic and Social Value 
Improved public services 
More Transparent Government 
More Efficient Government
Government can be an Open Data user too 
46 
Greater Manchester estimated £6.5m savings from finding and using its own data more easily
EU Inspire Directive on Geospatial Data 
47 
One Government reported fiscal ROI 8:1 in first 4 years, plus wider benefits
British Columbia Open Data 
48 
Government itself is #1 user of its data 
33% of downloads come from within BC Government
Data Quality 
49 
Release of data will reveal issues of data quality 
Surprisingly little criticism 
Celebrate greater checking of data! 
Use as stimulus to 
Measure 
Prioritise 
Improve
Citizens helping improve government data 
50
Other Considerations 
51
It’s not just about new data 
Opening new data is hard. 
So includes data previously “published” but 
in non-reusable format 
with restricted licence 
only aimed at specialist groups 
only for payment 
only in response to requests 
difficult to find 
52 
data.gov.uk contains a lot of data which nobody knew was already published
Handling the concerns of data owners 
“People hug their database, they don't want to let it go. You have no idea the number of excuses people come up with to hang onto their data and not give it to you, even though you've paid for it as a taxpayer.” 
– Tim Berners-Lee 
http://www.ted.com/talks/tim_berners_lee_on_the_next_web.html 
53
Still everyone thought that they were an exception 
It’s held separately by n different organisations, and we can’t join it up 
It will make people angry and scared without helping them 
It is technically impossible 
We do not own the data 
The data is just too large to be published and used 
Our website cannot hold files this large 
We know the data is wrong 
We know the data is wrong, and people will tell us where it is wrong 
We know the data is wrong, and we will waste valuable resources inputting the corrections people send us 
People will draw superficial conclusions from the data without understanding the wider picture 
People will construct league tables from it 
It will generate more Freedom of Information requests 
It will cost too much to put it into a standard format 
It will distort the market 
Our IT suppliers will charge us a fortune to do an ad hoc extract 
54
Handling reasons for exceptions 
Most reasons are valid in some contexts 
The reasons quoted are not necessarily the real ones, just plausible-sounding ones 
No-one likes to be told that they are wrong 
Disproving one reason may just provoke a different reason 
No-one likes to be told that they are wrong again and again 
55
Better to work with the data owner 
What are the risks? 
How could they be mitigated? 
How could remaining risks be managed? 
Would it be less risky if 
‒Some records were removed? 
‒Some fields were removed? 
Let’s focus on what can be opened 
56
Thank You 
57
58

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Open Data for Economic and Social Development: Why Government Should Care

  • 1. Open Data for Economic and Social Development: Why Government Should Care Andrew Stott UK Transparency Board Senior Consultant, World Bank Istanbul 17 Sep 2014 @dirdigeng andrew.stott@dirdigeng.com
  • 2. Policy Objectives of Open Data 2 New Economic and Social Value Improved public services More Transparent Government More Efficient Government
  • 3. Clarity about objectives 3 More Efficient Government More Transparent Government Improved public services New Economic and Social Value
  • 4. Policy Objectives of Open Data 4 New Economic and Social Value Improved public services More Transparent Government More Efficient Government
  • 7. Evidence base for EU Open Data Directive Open Gov Data in EU would ‒increase business activity by up to €40 Bn/yr ‒have total benefits up to €140 Bn/yr Open Data was reused 10x-100x more than charged-for data Lowering charges may attract new types of re- users, in particular SMEs. Costs appear to increase very little: in fact, they may eventually decrease 7 All economic analysis and case studies point the same way
  • 8. Case Study: Statistics Germany 8 Users: +1800% Downloads: +800%
  • 10. What are the Open Data Businesses 10
  • 14. $930m business from Open Data 14 Weather for 1m points 60 years of crop yield data 14 TB of soil data Company formed in 2006 Sold to Monsanto October 2013 for $930m cash
  • 16. Why is this not conclusive? 16
  • 17. Economic Benefits? Not our agency’s job! 17
  • 18. Set new objectives for data owning agencies 18
  • 19. Set new objectives for data owning agencies 19
  • 20. Economic Benefits? We want some of it! Charging economically sub-optimal Licensing inhibits innovation Hidden Costs – marketing, payment collection, enforcement Barriers to entry suit existing customers No real pressure for efficiency 20
  • 21. Open Data would cannibalise our income 21
  • 22. However Open Data can stimulate demand too 22
  • 24. Data Imperialism? ~80% of the benefit goes to a country’s data end-users – citizens, businesses, visitors, investors ~½ of the business value chain is intrinsically local (10% of total benefit) Therefore only 10% of total benefit is internationally contestable Worst case: country get 90% of the potential benefit from their data Best case: early-movers get to steal neighbours’ lunch as well 24
  • 25. Policy Objectives of Open Data 25 New Economic and Social Value Improved public services More Transparent Government More Efficient Government
  • 26. Performance of individual hospitals 26 12+ Weeks MRSA-free Good C-Diff record Low Mortality 2 recent MRSA Blood clots Patient ratings
  • 27. 1000 less heart surgery deaths each year 27
  • 28. Uganda: Open Data and Community Health Monitoring 28 33% reduction in under-5 mortality 20% extra utilisation of out-patient services Significant improvements in: Immunization Waiting times Absenteeism
  • 30. Open Data used to drive Citizen Engagement 30 Local team Telephone, website, Facebook and YouTube …. Local police Twitter feed How YOU can get involved It’s very local Accessible data on crime Attract Inform Engage Action
  • 31. Why are Ministers taking blame for local variation? 31
  • 32. Push-back from professions 32 http://bma.org.uk/news-views-analysis/news/2013/june/consultants-face-online-rating
  • 33. “We welcome this in principle but ….” (1) ‘Some consultants may take on higher risk cases that would lead to raised mortality rates’ ‘Some patients could have multiple health problems’ ‘Most consultants work in teams.’ ‘Patients’ experiences are obviously highly subjective’ ‘A range of factors can affect the feedback they provide’ 33
  • 34. “We welcome this in principle but ….” (2) ‘Different ways of working make it harder to gather meaningful data for patients’ ‘It is critical that any information provided is accurate and in context.’ Whereas there are ways of comparing performance in some specialties, such as cardiothoracic surgery, in other areas it is much harder. ‘It will be misleading and cause unnecessary anxiety to patients.’ 34
  • 35. Policy Objectives of Open Data 35 New Economic and Social Value Improved public services More Transparent Government More Efficient Government
  • 36. 36
  • 37. Politicians start to get nervous …. 37 http://www.toptenz.net/top-10-crooked-american-politicians.php
  • 38. It’s hard to uncover major issues 38 Input •285,000 records •1.17m rows of data •PDF documents Findings •$34bn spent in 8 years •Aid increased 1,965% •20 companies benefited most
  • 39. Transparency is about what officials do too 39
  • 40. Civil Service pay and expenses 40
  • 41. Holding officials to account 41
  • 42. Pressure to justify and restrain costs 42
  • 43. Make officials’ responsibilities clearer 43 Where the person is in the structure Pay Responsibilities Contact details
  • 45. Policy Objectives of Open Data 45 New Economic and Social Value Improved public services More Transparent Government More Efficient Government
  • 46. Government can be an Open Data user too 46 Greater Manchester estimated £6.5m savings from finding and using its own data more easily
  • 47. EU Inspire Directive on Geospatial Data 47 One Government reported fiscal ROI 8:1 in first 4 years, plus wider benefits
  • 48. British Columbia Open Data 48 Government itself is #1 user of its data 33% of downloads come from within BC Government
  • 49. Data Quality 49 Release of data will reveal issues of data quality Surprisingly little criticism Celebrate greater checking of data! Use as stimulus to Measure Prioritise Improve
  • 50. Citizens helping improve government data 50
  • 52. It’s not just about new data Opening new data is hard. So includes data previously “published” but in non-reusable format with restricted licence only aimed at specialist groups only for payment only in response to requests difficult to find 52 data.gov.uk contains a lot of data which nobody knew was already published
  • 53. Handling the concerns of data owners “People hug their database, they don't want to let it go. You have no idea the number of excuses people come up with to hang onto their data and not give it to you, even though you've paid for it as a taxpayer.” – Tim Berners-Lee http://www.ted.com/talks/tim_berners_lee_on_the_next_web.html 53
  • 54. Still everyone thought that they were an exception It’s held separately by n different organisations, and we can’t join it up It will make people angry and scared without helping them It is technically impossible We do not own the data The data is just too large to be published and used Our website cannot hold files this large We know the data is wrong We know the data is wrong, and people will tell us where it is wrong We know the data is wrong, and we will waste valuable resources inputting the corrections people send us People will draw superficial conclusions from the data without understanding the wider picture People will construct league tables from it It will generate more Freedom of Information requests It will cost too much to put it into a standard format It will distort the market Our IT suppliers will charge us a fortune to do an ad hoc extract 54
  • 55. Handling reasons for exceptions Most reasons are valid in some contexts The reasons quoted are not necessarily the real ones, just plausible-sounding ones No-one likes to be told that they are wrong Disproving one reason may just provoke a different reason No-one likes to be told that they are wrong again and again 55
  • 56. Better to work with the data owner What are the risks? How could they be mitigated? How could remaining risks be managed? Would it be less risky if ‒Some records were removed? ‒Some fields were removed? Let’s focus on what can be opened 56
  • 58. 58