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The Open Data Economy 
Unlocking Economic Value by 
Opening Government and Public Data
Only Few Governments are Leveraging 
Open Data for Economic Benefits 
We observed that 
countries with strong 
political support 
achieved higher 
maturity and better 
results in their Open 
Data initiatives. 
Governments and public 
authorities across the world are 
launching Open Data initiatives. 
Research indicates that by 
October 2011, twenty eight 
nations around the world had 
established Open Data portals1. 
Public administration officials are 
now beginning to realize the value 
that opening up data can have. 
For instance, the direct impact of 
Open Data on the EU27 economy 
was estimated at €32 Billion in 
2010, with an estimated annual 
growth rate of 7%.2 
However, very few governments 
are taking the right measures in 
realizing the economic benefits 
out of Open Data. Political 
support, breadth and refresh 
rate of data released, the ease in 
sourcing data and participation 
from user community determine 
the degree of maturity of an 
Open Data program. Capgemini 
Consulting conducted an analysis 
of 23 select countries across the 
world, which have already initiated 
Open Data programs, and rated 
them on a set of parameters (see 
Figure 1). 
Figure 1: Parameters used for Benchmarking Countries on Open Data Initiatives 
Data 
Availability 
Political 
Leadership 
Data Portal 
Usability 
Source: Capgemini Consulting 
Breadth and Granularity of Data 
Latest/Refreshed Data 
Ease of Re-Use of Data 
Government Initiative and Support 
User Interface 
Search Functionalities 
Participation from User community 
2
We found that countries with 
strong political support achieved 
higher maturity and better results 
in their Open Data initiatives. For 
instance, UK, one of the top five 
countries that we have identified 
as having mature Open Data 
policies, shows the seriousness 
of Open Data initiatives by having 
a senior Cabinet Minister at the 
helm. Francis Maude, the cabinet 
office minister with responsibility 
for public transparency and Open 
Data spells the vision clearly, 
“We don’t just want to lead the 
world in releasing government 
data — our aim is to make the 
UK an international role model in 
exploiting the potential of Open 
Data to generate new businesses 
and stimulate growth.”3 As a 
result of this political leadership, 
UK has been successful in strong 
dissemination of government data 
amongst users, with almost 9,000 
datasets published and more 
than 541,500 dataset viewsa since 
starting its Open Data portal in 
2010.4 
A strong political support for Open 
Data initiative does have an impact 
on the effective dissemination of 
government data but does not 
guarantee it. Of all the countries 
analyzed, only 22% shared data 
that had significant breadth and 
was granular at the same time. 
The same figure for countries 
with strong political support 
stood at nearly 46%, which is 
relatively higher but still a lot 
less than desired. These included 
countries such as the UK and 
the US, which typically provided 
highly granular and extensive 
data, with respect to time period, 
geography and population 
demographics, across domains. 
For instance, in the UK over 700 
public sector organizations publish 
data on its Open Data portal at 
a very granular level. This data 
spans across departments such 
as health, business, energy, 
education, among others, and 
is often available till the lowest 
level of administration. Also, 
sharing comprehensive data is 
only a first step. Governments 
and public authorities should 
ensure it is regularly updated to 
realize increased uptake of the 
data. We found out that most of 
the countries emphasized only 
on sharing the data; 96% of all 
countries did not regularly update 
the datasets or share information 
regarding updates. 
We don’t just want 
to lead the world in 
releasing government 
data — our aim is 
to make the UK an 
international role 
model in exploiting 
the potential of Open 
Data to generate 
new businesses and 
stimulate growth. 
– Francis Maude 
Cabinet Minister 
UK 
Note: a. The “Views” defined as the number of times a page was loaded in the users’ browser. 
3
A metric closely linked to data 
availability is the usage of such 
released data. Data uptake, 
a reference to the number of 
downloads from users, depends 
on the ease with which it can 
be sourced from the Open 
Data portals. Over 60% of the 
countries we analyzed lacked 
enhanced search capabilities. 
In some of the cases, the Open 
Data portals, instead of acting as 
a central repository, redirected 
users to websites of concerned 
public sector bodies making it 
far more cumbersome to obtain 
data. Countries such as Norway, 
Austria and Estonia had search 
functionalities, which at best 
helped users by classifying 
datasets under categories, 
whereas countries such as the UK 
provided users with APIsb to help 
make data search easier. 
Another important factor 
determining the success of Open 
Data programs is participation 
from the user community. 
User participation is directly 
proportional to the amount 
of engagement through app 
competitions, discussion forums 
and blogs. Over 87% of the 
countries analyzed in our research 
appear to have missed out on 
its importance, having negligible 
or minimal user participation 
on their Open Data portals. 
Sustained engagement helps in an 
increased realization of economic 
value from data and better 
management of data quality. The 
UK Open Data portal is among the 
few that have actively encouraged 
user participation. Discussion 
forums and blogs on the portal 
often involve representatives 
from the Open Data Institute or 
ministries/departments, with 
the aim of understanding users’ 
requirements for datasets, 
managing data quality or sharing 
advice on data usage. 
After analyzing 23 countries, 
based on their positioning 
and pace of adoption of Open 
Data initiatives, we were able 
to classify them into three 
categories – Beginners, Followers 
and Trend Setters (see Figure 2). 
Our research found 
that only 22% of the 
countries shared 
comprehensive 
data that included 
both breadth and 
granularity. 
96% of the countries 
analyzed in our 
research shared data 
which is not regularly 
updated. 
Note: b. Application Program Interface is a set of routines, protocols, and tools for building software applications. A good API makes it 
easier to develop a program by providing all the building blocks. APIs can typically be used to extend reach of services, drive revenues 
and encourage third-party innovation. 
4
5 
experience better interaction with 
the user community, generally 
one-way communication, on their 
Open Data portals. Countries in 
this category, such as Denmark, 
Italy and Spain, have typically 
released a large number of 
datasets; however, these datasets 
lack granularity. The bulk of 
countries, around 56%, in our 
research fell into this category. 
Only 22% of the 
countries in our 
analysis turned out to 
be Trend Setters. 
Of all the countries 
we analyzed, 87% 
are not utilizing 
user participation 
capabilities on their 
Open Data portals. 
Countries falling in the ‘Beginners’ 
category are those that are 
still in the initial stages of their 
Open Data journey. Data portals 
in such countries are typically 
characterized by the lack of 
good quality, updated data. They 
also have a complete absence 
of community participation on 
their respective portals. The 
Open Data portals of these 
countries are rudimentary, with 
limited functionalities, making it 
difficult to search and utilize the 
data that they have opened up. 
All of the five countries in this 
category completely overlook 
the importance of releasing high 
value datasets with none of them 
sharing datasets for geospatial, 
meteorological and environmental 
information. Around 22% of 
countries in our research ended up 
in this category. 
‘Followers’ typically include 
nations that have shown their 
intention and progressive 
approach towards Open Data 
by releasing a large number of 
datasets. They also provide better 
search functionalities on their 
portals, which makes it easy to 
obtain data. These countries also 
Figure 2: Benchmarking of Open Data Initiatives, Select Countries, 2012 
High 
Data Portal Usability 
Beginners 
Source: Capgemini Consulting Analysis 
UK USA 
Followers 
Singapore 
Canada & Australia 
Trend Setters 
Denmark New Zealand 
Spain 
Hong Kong 
Kenya 
Ghana 
Norway 
Estonia Saudi Arabia 
Italy 
Moldova & Chile 
France 
Austria 
Belgium 
Ireland 
UAE & Morocco 
Data Availability 
Low High 
Note: Size of bubble represents level of government support.
Our Open Data Benchmarking Research 
Methodology 
3. Data Portal Usability 
We undertook an extensive 
This parameter included 
research of the Open Data portals 
a complete view of the 
of each of the selected countries 
functionalities and ability of the 
that had already initialized some 
respective Open Data portals 
Open Data initiatives, in order to 
to facilitate an increase in data 
analyze their maturity. We looked 
uptake. It included aspects such 
at various aspects of the portals 
as ease of user interface, search 
ranging from availability of data to 
functionalities and presence 
political leadership to data portal 
as well as usage of capabilities 
usability. All the countries were 
to encourage participation and 
rated on a scale of 0 to 3 (where 
communication with users. 
0 was the lowest and 3 was the 
highest rating). 
Research Findings 
Countries Analyzed 
1. Overall Findings 
USA, UK, France, Canada, 
- Only 22% of countries shared 
Australia, New Zealand, Singapore, 
data that can be classified as 
Hong Kong, Kenya, Ghana, UAE, 
comprehensive – data with high 
Saudi Arabia, Norway, Estonia, 
value information, granular in 
Austria, Moldova, Italy, Spain, 
nature and including extensive 
Morocco, Belgium, Ireland, Chile 
datasets. 
and Denmark. 
- 96% of the countries analyzed 
share data which is not regularly 
Key Parameters 
updated. 
1. Data Availability 
- Over 60% of the countries we 
analyzed lacked enhanced search 
Countries were rated on 
capabilities. 
their emphasis on sharing 
comprehensive information, 
- 87% of the countries are not 
which included focusing on 
utilizing user participation 
various aspects such as number 
capabilities. 
of datasets published, sharing 
datasets with high value 
information, granularity of the 
data and information regarding 
the nature of datasets. 
2. Political Leadership 
This parameter rated countries 
on the level of political support 
or guidance for their Open Data 
initiative. 
2. Category-wise Findings 
Beginners 
- All the countries in this category 
do not emphasize on the quality 
of the data, which often lacks both 
breadth and granularity. 
- Countries in this category 
were characterized by complete 
absence of user participation 
capabilities. 
Followers 
- Only 8% of Followers share data 
that can be categorized as having 
the right amount of granularity 
and comprehensiveness. 
- Almost 92% of Followers do not 
utilize their Open Data portals for 
an effective dialogue with users, 
while the rest completely lack this 
capability. 
Trend Setters 
- 80% of Trend Setters share 
data having a high degree of 
comprehensiveness. 
- 100% of the countries in this 
category boast of political support 
for Open Data program coming 
from the country’s highest offices. 
- Over 60% of Trend Setters 
achieved considerable user 
participation on their Open Data 
website. 
6
Benefit to 
Government 
Increased tax revenues though 
increased economic activity 
Revenues through selling high 
value added information for 
a price 
Reduction in transactional 
costs 
Increased service efficiency 
through linked data 
Create jobs in current 
challenging times 
Encourage entrepreneurship 
Benefit to 
Private Sector 
Drive new business 
opportunities 
Reduced cost by not having 
to invest in conversion of 
raw government data 
Better decision making based 
on accurate information 
Gain skilled workforce 
Drive Revenue through 
multiple areas 
Cut Costs and 
Drive Efficiency 
Generate Employment and 
develop future-proof skills 
‘Trend Setters’ represent the 
current leaders in Open Data 
initiatives. These countries are 
characterized by their emphasis 
on releasing extensive amounts 
of datasets, which are updated at 
regular intervals. The portals for 
these countries are enabled with 
significant capabilities for making 
information easier to source and 
generating dialogue amongst the 
user community through forums 
and discussions. Within Trend 
Setters, we see the emergence of 
two clear categories. Countries 
such as the UK and the USA, 
among the early adopters of 
Open Data initiatives, publish 
data with significant breadth and 
granularity accompanied with 
discussion forums and blogs to 
drive engagement among users. At 
the same time, there are countries 
such as France that only initiated 
its Open Data programs a year 
back but have managed to use 
government support to achieve 
significant progress in a short 
period of time. While this has 
resulted in driving data breadth, 
granularity is still missing. Our 
results indicate that only very few 
countries, around 22%, can be 
classified as Trend Setters. 
On further analysis of 
these categories, we found 
that countries that share 
comprehensive and updated data 
achieve a higher level of user 
participation. For instance, out of 
‘Trend Setters’, characterized by 
high focus on comprehensive and 
updated data, over 60% were able 
to interact or initiate discussion 
with users on their website. On 
the other hand, all ‘Beginners’ 
had complete absence of user 
participation on their Open Data 
portals. 
These findings reflect that a 
strong political will/vision in 
itself does not guarantee the 
success of Open Data initiatives. 
It is important that this vision be 
adequately complemented with 
efforts towards sharing quality 
data with users, ensuring its 
increased uptake and an active 
participation from the user 
community. A coherent approach 
towards achieving these objectives 
is essential, in order to realize 
maximum economic benefits from 
Open Data initiatives. 
These economic benefits revolve 
around revenue growth, cost 
savings and improved efficiency, 
and employment generation while 
developing skills (see Figure 3). 
In the rest of the paper, we delve 
into each of these key economic 
benefit areas. 
Figure 3: Economic Benefits of Open Data 
Source: Capgemini Consulting Analysis 
7
The emergence of open 
ecosystems, thriving on private 
data, has resulted in the 
emergence of many new firms. 
For instance, the APIs (Application 
Programming Interfaces) by 
companies such as Facebook, 
Twitter and Google consistently 
see multiple billion calls every 
month5. APIs help companies 
extend reach of their services, 
drive revenue growth and 
encourage third-party innovation. 
This is a scenario that can be 
successfully replicated with 
public data as well. In fact, the 
infomediary sector in Spain, a 
sector that comprises solely of 
companies that sell services on 
top of Open Data, generates 330- 
550 million Euros annually6. 
Increasing the Volume 
of Private Sector 
Business Activity 
Open Data enables an increase 
in business activity by allowing 
the creation of new firms, new 
products and services. Several 
countries, including USA, Spain 
and Finland, have seen Open Data 
have a tangible impact on the 
volume of business activity in their 
geographies. 
Encouraging New Firm 
Creation 
Open Data drives growth by 
stimulating the creation of 
firms that reuse freely available 
government information in 
innovative ways. In Spain, a study 
estimates that there are over 150 
companies focused solely on the 
infomediary sector7. 
Creating New Products and 
Services 
Small and medium companies 
with products and services 
based on Open Data, such as 
Global Positioning Systems, 
financial services and software 
applications, also generate new 
businesses and jobs. According 
to a Finnish study, firms that 
reuse government released 
geographical data, either freely or 
at marginal costs, grew 15% more 
per annum than in countries that 
price such information with an 
objective of recovering costs8. For 
instance, The Weather Channel, 
an American television network, 
and Garmin, a firm that develops 
consumer, aviation, and marine 
technologies (with market cap of 
over $7 billion at end of January 
2013) were built using raw 
government data9. 
Furthermore, businesses can 
generate high returns through 
the development of new products 
and services based on high value 
data domains (see Figure 4). For 
instance, BrightScope, a California 
financial information startup, 
used government data to help 
the consumers understand fees 
associated with their retirement 
savings accounts. Similarly, data 
domains such as Economic, 
Geospatial and Environmental 
have higher commercial impact. 
For instance, Open Data from 
the US National Weather Service 
supports a private weather 
industry worth over $1.5 billion 
per year10. 
Open Data drives 
growth by stimulating 
the creation of firms 
that reuse freely 
available government 
information in 
innovative ways. 
Realizing Revenue 
Growth using Open Data 
Supplementing Existing 
Products 
Innovative solutions can be 
developed through a mix of 
public sector and proprietary 
information such as data-as- 
a-service. For instance, 
CloudMade, an applications 
development company, leverages 
OpenStreetMap data from 
the transport domain and 
supplements it with various 
datasets from alternative 
sources in order to create 
comprehensive location data. 
Revenue is generated by supplying 
this information at a price to 
developers and application 
publishers of geo-enabled 
products11. 
8
Figure 4: Most Popular Open Data Domains: Percentage of companies working with specific domain of Open Data 
(n=150), Spain, 2012 
51.1% 
46.8% 
29.8% 
27.7% 
12.8% 12.8% 12.8% 
Source: Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 
10.0% 
Geographic 
/Cartographic 
Info 
Business 
/Financial 
Info 
Socio-Demographic 
/Statistical Info 
Legal Info Meterological 
Info 
Transport 
Info 
Museums, Cultural 
Files and others 
Others 
Generating Additional 
Public Sector Revenues 
For governments, opening the 
public sector information vault can 
lead to financial gains. Revenue 
generation accrues from two 
broad areas: namely charging from 
data and tax income accrued due 
to commercial activity on Open 
Data. 
Generating Revenues from 
Charging for Open Data 
Most countries/departments 
provide free access to citizens with 
more opting for an ability to view 
rather than to download. Some 
countries appear to be taking an 
intermediate path by allowing 
non-commercial reuse at zero 
cost, charging for commercial 
usage. For instance, CENDOJ (the 
Spanish Judicial Documentation 
Centre), responsible for managing 
all of Spain’s legal documentation, 
In countries where 
organizations have 
moved to marginal/ 
zero cost charging 
models, the number of 
re-users increased by 
between 1,000% and 
10,000% leading to an 
increase in revenues. 
provides government data free 
for consultation to any citizen not 
intending to reuse the information 
and charges commercial re-users 
on the basis of license cost per 
sentence12. There is evidence of 
pricing significantly impacting the 
usage of Open Data. For instance, 
in cases where organizations 
have moved to marginal and zero 
cost charging or cost-recovery 
models, the number of re-users 
increased by between 1,000% 
and 10,000%.13 Some public 
sector bodies have also shown 
that substantial price reductions 
can be done without impacting 
overall revenues since they lead 
to a significant growth in usage. 
In fact, reducing the price of 
Open Data usage could lead to an 
increase in the revenue generated 
from it. For instance, the Austrian 
public sector body responsible 
for geographic information, BEV, 
lowered charges by as much as 
97%, resulting in a 7,000% growth 
in demand for certain product 
groups. In essence, BEV was able 
to increase its geographic Open 
Data sales revenues by 46% in the 
four-year period after the pricing 
review14. 
9
Generating Increased Tax 
Income from Commercial 
Usage of Open Data 
Governments can generate long-term 
tax revenue growth through 
a wide range of direct and indirect 
applications of Open Data across 
the economy. The aggregate direct 
and indirect economic impact 
from such applications and their 
use across the EU27 economy 
is estimated to be €140 billion 
annually15. The corresponding 
increase in tax revenues is a direct 
monetary benefit to governments. 
The aggregate 
economic impact from 
applications based 
on Open Data across 
the EU27 economy is 
estimated to be €140 
billion annually. 
Open Data disrupting 
Real Estate Marketplace 
Zillow, a Real Estate advertising network, is a notable example of 
technology startup flourishing on Open Data. The company established 
a successful business by creating a living database of homes across the 
United States. This database is built from a range of sources such as 
county records, tax data, listing of homes for sale or rental and mortgage 
information. 
The website combines mapping data with information on local land value 
and house price to create a service which accurately estimates the value 
of a house at a given address. One of its main offering Zestimates (an 
advanced statistical predictive tool) provides up-to-date information on 
home values and rental prices. The company has over 30 million unique 
users per month scrolling through its database of more than 100 million 
homes. 
Zillow has grown significantly since 2006 with its revenue doubling at 
$66.1 million in 2011, compared to $30.5 million in 2010. As of December 
2011, the company had 329 full-time employees. It successfully launched 
its IPO in July 2011. 
10 
Source: Company website and press releases
Achieving Cost Savings 
While Increasing Transparency 
For governments, opening up 
public sector information has 
significant potential for cost 
savings and improving service 
efficiencies. 
Reducing Transactional 
Costs and Redundant 
Expenditure 
Public administration officials 
typically spend a significant 
amount of time and resources in 
answering queries that arise due 
to legislations allowing citizens to 
gain access to data. Providing data 
for citizens online in a searchable 
format has a direct impact in 
reducing the cost of servicing. 
For instance, Bristol City Council 
reduced transaction costs when 
they introduced an Open Data 
catalog. The cost to the council 
for a typical service transaction 
was found to be 15 times more 
expensive if answered in person or 
telephone than if answered over 
the Internet16. 
Similarly, Open Data and access 
to real-time information saved 
over $1 million for the city of 
San Francisco in the US. The 
city’s Chief Innovation Officer 
announced in June 2012 that 
access to real-time transit data 
resulted in 21.7% fewer SF311 
calls17. This decrease in call volume 
resulted in savings of over $1 
million a year18. 
Openness also aids in cutting 
down on public expenditure 
as public bodies are made 
more accountable for financial 
discrepancies. For instance, 
in California USA, the state 
transparency portal (that cost 
around $21,000 to implement) 
saved the state over $20 
million when visitors identified 
unnecessary expenditure. The 
savings came after visitors to the 
site noticed an audit that showed 
that many of the vehicles in the 
state’s fleet were not needed19. 
Improving Service 
Efficiency through 
Linked Data 
Integrating and publishing data 
can enable public bodies improve 
service efficiency by enabling 
efficient collaboration between 
business stakeholders and public 
bodies. The publication of MRSA 
infection rates in UK hospitals is a 
case in point. The National Health 
Services (NHS) in UK started 
publishing infection rates of all 
hospitals on the portal data.gov. 
uk20. This publication, coupled 
with the sharing of league tables 
showing the worst hospitals, 
encouraged exchange of best 
practices amongst hospitals. It 
brought down infection rates from 
around 5,000 patients annually to 
fewer than 1,200. The initiative 
also achieved a cost savings of £34 
million. Though the savings cannot 
be solely attributed to opening up 
data, the efficiency of hospitals 
and exchange of best practices has 
had a significant effect on hospital 
functioning and public health. 
Further, NHS has been publishing 
outcome data for hospitals and 
surgeons since 2004. This has led 
to a drop in mortality rates by 
22% as it became easy to spot the 
pain points and improve cardiac 
healthcare services21. 
Openness also aids 
in cutting down on 
public expenditure as 
public bodies are made 
more accountable for 
financial discrepancies. 
11
Open Data identifies possible 
prescription savings worth millions 
In 2011-12, the NHS in England spent more than £400m on statins, a class of drugs used to prevent cardiovascular 
problems, out of a total drug budget of £12.7 billion. Some of these drugs are more expensive than others: 
patented ones can cost 20 times more than generic versions. 
The current evidence shows that all drugs from this class are equally safe and effective, so doctors are usually 
advised to use the generic versions initially. With the aim of analyzing the prescription pattern of these drugs 
- Mastodon C, a big data start-up company incubated at the Open Data Institute and Open Health care UK (a 
consortium of NHS doctors and technologists dedicated to improving patient care by opening up health data), 
worked with publicly available NHS prescription data. They looked at the entire prescriptions dataset (over 37 
million rows of data) and analyzed how much money was spent in each area on more expensive drugs. It was 
found that on an average £27m a month of potentially unnecessary expenditure on the two proprietary statins 
took place in 2011 in the NHS in England. And savings of over £200m could have been achieved for the NHS, had 
every doctor prescribed cheap statins. 
Encouraged by the findings, the team intends to go further ahead and identify similar potential savings in different 
prescription categories as well. 
Source: Open Data Institute Case Study 
12
13 
Creating Jobs and Disseminating New 
Skills by Leveraging Commercial Potential 
A larger, and more 
long-term benefit of 
opening up data is the 
impact that it has on 
dissemination of skills 
around Big Data. 
In today’s challenging economic 
times, Open Data can act as a 
significant aid to Government 
efforts at creating jobs. And at the 
same time, it can complement 
the efforts of the private sector 
to boost the skill set of the hiring 
pool. 
Creating Jobs using 
Open Data and its 
Commercial Potential 
The potential for job creation 
through commercial usage of 
Open Data is significant. In Spain, 
a study found that the infomediary 
sector (companies that sell 
services on top of Open Data) 
employs around 4,000 people 
and generates 330-550 million 
Euros annually that can be directly 
attributed to Open Data reuse22. 
The market size and growth of 
the geographic information sector 
shows the potential of Open Data 
as an engine for job creation. 
The German market for geo-information 
in 2007 was estimated 
at €1.4 billion, a 50% increase 
since 2000. In the Netherlands, 
the geo-sector accounted for 
15,000 full time employees in 
200823. Similarly, in Australia, in 
a study done to understand the 
impact of open geospatial data, 
it was observed that over 31,400 
people were directly employed in 
the spatial information industry.24 
Disseminating Big Data 
skills using Open Data 
as an Introductory 
Platform 
Job creation is a direct and short-term 
economic impact of Open 
Data. However, a larger, and more 
long-term benefit of opening up 
data is the impact that it has on 
dissemination of skills around Big 
Data25. The opportunities around 
Big Data are indeed significant. 
It is estimated that by 2015, Big 
Data demand will reach over 4.4 
million jobs globally. However, 
globally, there is a significant 
dearth of skills around Big Data 
and its application. It is expected 
that only a third of the 4.4 million 
positions are likely to be filled26. 
Opening up government data 
can act as a driving force for 
individuals and organizations as 
they attempt to create value on 
top of such data. Developing Big 
Data skills is a strategic area for 
governments across the world 
and answers a growing need in 
the business community. In the 
Spanish study cited earlier, it was 
observed that over 50% of all staff 
in firms dealing with Open Data 
were engineers or had higher level 
qualifications. 
Given the benefits that can be 
realized through Open Data 
programs, we believe a structured 
approach in implementing Open 
Data initiatives is necessary to 
actualize this opportunity. In the 
next section, we detail the focus 
areas in a stepwise approach for 
governments to derive value out 
of Open Data.
How Can You Derive 
Economic Value from Open Data? 
Opening up data is not a 
straightforward task. It starts with 
government willingness to open 
up data. Once there is a broad 
buy-in to opening up public data, 
governance structures should be 
established to oversee all Open 
Data initiatives. Governments will 
need to decide on the type of 
data that is prioritized for release 
and how best to offer this data 
to developers. The final step in 
enabling governments to allow 
Open Data to flourish is to drive its 
uptake – both by citizens and by 
developers (see Figure 5). 
Build a Vision 
A first step is to build a vision 
around the possible and tangible 
benefits from Open Data. This 
vision needs to be driven from the 
top, typically with strong political 
leadership directing the efforts. 
For instance, in the UK—a “Trend 
Setter” in our analysis—Open Data 
efforts are led by Francis Maude 
who says, “This Government 
believes Open Data will be the 
essential characteristic of future 
public policy”27. It is important 
that such a vision percolates down 
from the top to garner support 
from ministries and civil servants 
alike for effective functioning of 
Open Data initiatives. A similar 
vision from the country’s highest 
office is helping France in building 
a robust Open Data program. 
Through a directive from the Prime 
Minister’s office, France created 
Etalab, an agency responsible 
for creating and maintaining its 
Open Data portal. Along with 
this, Etalab is responsible for 
coordinating the activities of 
ministries and in supporting public 
administration with facilitating the 
widest possible reuse of its public 
information. Since the launch of 
the French Open Data portal in 
December 2011, over 350,000 
datasets have been published on 
it and it has achieved more than 
750,000 visitors and over 394,000 
downloads.28 
Create a Governance 
Structure 
Governments need to develop 
institutions with an explicit 
mandate to frame and encourage 
the development of Open Data. 
For instance, the Open Data 
initiative in UK is being advocated 
and encouraged by various bodies, 
which have well-defined roles for 
greater coherence in achieving 
Open Data objectives (see Figure 
6). 
Figure 5: Focus areas in Implementing Open Data Initiatives 
Build 
a Vision 
Source: Capgemini Consulting Analysis 
Create a 
Governance 
Structure 
Develop 
and Implement 
Content 
Framework Drive 
Uptake 
14 
Open Data initiatives 
need to be driven from 
the top with strong 
political leadership.
Data Strategy Board (DSB) 
The DSB’s goal is to create maximum value, for 
businesses and people across the UK has two 
main goals – (1) Seek to maxmize the value of 
data from the PDG for long term social and 
economic benefit (2) To act as an intelligent 
advising government on commissioning and 
purchasing key data and services from the PDG. 
Develop and Implement 
a Content Framework 
Governments should structure 
data to ease reuse of data, 
optimize the number of datasets, 
ensure the data is regularly 
updated and reduce disparity. 
Structuring of data will increase 
downloads of datasets and help 
private developers to build varied 
data-based applications. 
A periodic process has to be 
followed in the creation or 
collection of the raw data. The 
raw data at the local, national 
or international level needs to 
be aggregated to create more 
comprehensive datasets and allow 
for joint storage and retrieval. 
Also, emphasis should be on 
identifying and making available 
the kind of data, which provides 
maximum commercial reuse and 
generates the most interest from 
users. 
Further, governments need 
to ensure that data shared 
with users should be in a non-proprietary 
format and data across 
government portals should be 
linked. This would help achieve 
greater dissemination and uptake 
of Open Data. Applying the 
linked data principle also adds 
value to the information through 
combinations with other data, 
such as demographic, traffic or 
environmental data. 
Drive Uptake 
Any amount of Government 
effort in setting up institutions 
and frameworks around Open 
Data isn’t of much help if there 
are no initiatives to encourage 
its usage. Governments should 
encourage citizens and businesses 
to actively use the data and 
engage with it. The intent should 
be to motivate users to actively 
seek out more datasets that can 
help address issues that impact 
them. Creating a platform of 
e-learning for non-qualified users, 
with tutorials and information, 
will provide them with the 
tools to analyze, transform and 
share public data. At the same 
time, governments should 
ensure that they encourage the 
developer community to create 
value-enhancing applications. A 
good way of mobilizing developers 
would be through launching Open 
Data challenges. In a EU Open 
Data challenge conducted in 
April 2011, there were over 430 
entries in a period of 60 days29. 
The competition was conducted 
across four categories - ideas, 
applications, visualizations and 
datasets. 
In summary, opening up data holds 
the key to unlocking economic 
gains from multiple perspectives. 
Governments and public 
authorities need to view Open 
Data not just as an opportunity 
to bring in transparency and 
accountability in their functioning, 
but also as an enabler of economic 
growth and a driver of innovation. 
In these challenging times, it 
offers the opportunity to drive 
tangible economic value and 
stimulate growth and innovation. 
Governments wishing to establish 
their position in tomorrow’s 
digital world should leverage the 
potential that Open Data holds. 
Figure 6: Open Data Bodies in UK and their Roles 
Source: Capgemini Consulting Analysis 
Open Data User Group (ODUG) 
The ODUG’s objective is to give advice to DSB 
on public sector data that should be prioritized 
for release as Open Data. It aims to act as an 
intelligent customer on behalf of the public and 
the private sector for freeing up data at the point 
of use and for re-use. 
Open Data Institute (ODI) 
The ODI’s goal is to help people create economic, 
environmental and social value from Open Data. 
It aims to encourage small entrepreneurs to turn 
raw data available into tangible and worthwhile 
information. 
Public Data Group (PDG) 
The PDG aims to improve using and sharing of 
data, through collaboration and sharing of best 
practices. It also aims to aggressively pursue 
individual and cross-asset efficiencies, delivering 
lower prices to all users of data. 
Open Data 
UK 
15
References 
1 “Driving Innovation through Knowledge Sharing” October 2011: http://www.slideshare.net/jeanneholm1/ 
driving-innovation-with-knowledge-sharing-and-open-data 
2 “Review of recent studies on PSI re-use and related market developments”; Final Version, Graham Vickery 
3 UK Government press release on launch of Open Data Institute 
4 UK Open Data Portal, Site Usage Data. 
5 Programmable Web, “Which APIs Are Handling Billions of Requests Per Day?”, May 2012 
6 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 
7 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 
8 “Does Marginal Cost Pricing of Public Sector Information Spur Firm Growth”; Research Institute of Finnish Economy 
9 Digital Fuel of the 21st Century: Innovation through Open Data and the Network Effect, Harvard University, 2011 
10 Concept et Stratégies pour Gouvernement Ouvert et Open Data, World Bank ICT report,2012 
11 “CloudMade Apps”; http://cloudmade.com/about 
12 European Commission, “Pricing of Public Sector Information Study”, October 2011 
13 European Commission, “Pricing of Public Sector Information Study”, October 2011 
14 European Commission, “Pricing of Public Sector Information Study”, October 2011 
15 European Commission, “Digital Agenda: Commission’s Open Data Strategy, Questions & answers”, 2012 
16 “Bristol Open Data Innovation”; http://www.connectingbristol.org/2010/06/07/b-open/; European Public Sector 
Information Platform, Making the case for opening up government data 
17 The San Francisco 311 service connects residents, businesses and visitors to customer service representatives 
that offer information with general government information. It is a single point of entry for and resolution of 
information and service requests. 
18 http://www.resetsanfrancisco.org/news/jun-25-12/open-data-real-time-information-saves-gov-money 
19 Frontier Group, “California Budget Transparency 2.0”, 2009 
20 “Finding the value in Open Data”; Open Data Institute, UK 
21 UK Cabinet Office Article on Francis Maude’s speech, March 2012 
22 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 
23 Eur-Lex, ““Open data An engine for innovation, growth and transparent governance”, 2011 
24 ACIL Tasman, “The Value of Spatial Information”, March 2008 
25 Big data describes datasets that grow so large that they are challenging to work with, using traditional database 
management tools 
26 Gartner, “Gartner Says Big Data Creates Big Jobs: 4.4 Million IT Jobs Globally to Support Big Data By 2015”, Oct 2012 
27 UK Cabinet Office, “Open Data Innovation Community - Francis Maude speech”, March 2012 
28 Official Open Data Website, France, “The national platform www.data.gouv.fr celebrates its first anniversary”, 
December 2012 
29 Open Data Challenge website, June 2011 
16
Author 
Dinand Tinholt 
Vice-President 
dinand.tinholt@capgemini.com 
The author would also like to acknowledge the contributions of Jerome Buvat, Ashish Bisht, Manik Seth and Subrahmanyam 
KVJ from the Digital Transformation Research Institute of Capgemini Consulting. 
For more information contact 
Belgium 
Patrick Pouilliart 
patrick.pouilliart@capgemini.com 
Finland 
Ilkka Kankare 
ilkka.kankare@capgemini.com 
France 
Ludovic de Lamazière 
ludovic.delamazière@capgemini.com 
Germany 
Tom Gensicke 
tom.gensicke@capgemini.com 
Middle East 
Jawad Shaikh 
jawad.shaikh@capgemini.com 
Netherlands 
Marleen van Amersfoort 
marleen.van.amersfoort@capgemini.com 
Capgemini Consulting is the global strategy and transformation 
consulting organization of the Capgemini Group, specializing 
in advising and supporting enterprises in significant 
transformation, from innovative strategy to execution and with 
an unstinting focus on results. With the new digital economy 
creating significant disruptions and opportunities, our global 
team of over 3,600 talented individuals work with leading 
companies and governments to master Digital Transformation, 
drawing on our understanding of the digital economy and 
our leadership in business transformation and organizational 
change. 
Find out more at: 
http://www.capgemini-consulting.com/ 
Rightshore® is a trademark belonging to Capgemini 
Sweden 
Henrik Poppius 
henrik.poppius@capgemini.com 
UK 
Richard Kershaw 
richard.kershaw@capgemini.com 
About Capgemini 
With around 120,000 people in 40 countries, Capgemini is one 
of the world’s foremost providers of consulting, technology 
and outsourcing services. The Group reported 2011 global 
revenues of EUR 9.7 billion. Together with its clients, Capgemini 
creates and delivers business and technology solutions that 
fit their needs and drive the results they want. A deeply 
multicultural organization, Capgemini has developed its own 
way of working, the Collaborative Business ExperienceTM, and 
draws on Rightshore®, its worldwide delivery model. 
Learn more about us 
at www.capgemini.com. 
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. 
© 2013 Capgemini. All rights reserved.

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The open data economy unlocking economic value by opening government and public data capgemini consulting - digital transformation

  • 1. The Open Data Economy Unlocking Economic Value by Opening Government and Public Data
  • 2. Only Few Governments are Leveraging Open Data for Economic Benefits We observed that countries with strong political support achieved higher maturity and better results in their Open Data initiatives. Governments and public authorities across the world are launching Open Data initiatives. Research indicates that by October 2011, twenty eight nations around the world had established Open Data portals1. Public administration officials are now beginning to realize the value that opening up data can have. For instance, the direct impact of Open Data on the EU27 economy was estimated at €32 Billion in 2010, with an estimated annual growth rate of 7%.2 However, very few governments are taking the right measures in realizing the economic benefits out of Open Data. Political support, breadth and refresh rate of data released, the ease in sourcing data and participation from user community determine the degree of maturity of an Open Data program. Capgemini Consulting conducted an analysis of 23 select countries across the world, which have already initiated Open Data programs, and rated them on a set of parameters (see Figure 1). Figure 1: Parameters used for Benchmarking Countries on Open Data Initiatives Data Availability Political Leadership Data Portal Usability Source: Capgemini Consulting Breadth and Granularity of Data Latest/Refreshed Data Ease of Re-Use of Data Government Initiative and Support User Interface Search Functionalities Participation from User community 2
  • 3. We found that countries with strong political support achieved higher maturity and better results in their Open Data initiatives. For instance, UK, one of the top five countries that we have identified as having mature Open Data policies, shows the seriousness of Open Data initiatives by having a senior Cabinet Minister at the helm. Francis Maude, the cabinet office minister with responsibility for public transparency and Open Data spells the vision clearly, “We don’t just want to lead the world in releasing government data — our aim is to make the UK an international role model in exploiting the potential of Open Data to generate new businesses and stimulate growth.”3 As a result of this political leadership, UK has been successful in strong dissemination of government data amongst users, with almost 9,000 datasets published and more than 541,500 dataset viewsa since starting its Open Data portal in 2010.4 A strong political support for Open Data initiative does have an impact on the effective dissemination of government data but does not guarantee it. Of all the countries analyzed, only 22% shared data that had significant breadth and was granular at the same time. The same figure for countries with strong political support stood at nearly 46%, which is relatively higher but still a lot less than desired. These included countries such as the UK and the US, which typically provided highly granular and extensive data, with respect to time period, geography and population demographics, across domains. For instance, in the UK over 700 public sector organizations publish data on its Open Data portal at a very granular level. This data spans across departments such as health, business, energy, education, among others, and is often available till the lowest level of administration. Also, sharing comprehensive data is only a first step. Governments and public authorities should ensure it is regularly updated to realize increased uptake of the data. We found out that most of the countries emphasized only on sharing the data; 96% of all countries did not regularly update the datasets or share information regarding updates. We don’t just want to lead the world in releasing government data — our aim is to make the UK an international role model in exploiting the potential of Open Data to generate new businesses and stimulate growth. – Francis Maude Cabinet Minister UK Note: a. The “Views” defined as the number of times a page was loaded in the users’ browser. 3
  • 4. A metric closely linked to data availability is the usage of such released data. Data uptake, a reference to the number of downloads from users, depends on the ease with which it can be sourced from the Open Data portals. Over 60% of the countries we analyzed lacked enhanced search capabilities. In some of the cases, the Open Data portals, instead of acting as a central repository, redirected users to websites of concerned public sector bodies making it far more cumbersome to obtain data. Countries such as Norway, Austria and Estonia had search functionalities, which at best helped users by classifying datasets under categories, whereas countries such as the UK provided users with APIsb to help make data search easier. Another important factor determining the success of Open Data programs is participation from the user community. User participation is directly proportional to the amount of engagement through app competitions, discussion forums and blogs. Over 87% of the countries analyzed in our research appear to have missed out on its importance, having negligible or minimal user participation on their Open Data portals. Sustained engagement helps in an increased realization of economic value from data and better management of data quality. The UK Open Data portal is among the few that have actively encouraged user participation. Discussion forums and blogs on the portal often involve representatives from the Open Data Institute or ministries/departments, with the aim of understanding users’ requirements for datasets, managing data quality or sharing advice on data usage. After analyzing 23 countries, based on their positioning and pace of adoption of Open Data initiatives, we were able to classify them into three categories – Beginners, Followers and Trend Setters (see Figure 2). Our research found that only 22% of the countries shared comprehensive data that included both breadth and granularity. 96% of the countries analyzed in our research shared data which is not regularly updated. Note: b. Application Program Interface is a set of routines, protocols, and tools for building software applications. A good API makes it easier to develop a program by providing all the building blocks. APIs can typically be used to extend reach of services, drive revenues and encourage third-party innovation. 4
  • 5. 5 experience better interaction with the user community, generally one-way communication, on their Open Data portals. Countries in this category, such as Denmark, Italy and Spain, have typically released a large number of datasets; however, these datasets lack granularity. The bulk of countries, around 56%, in our research fell into this category. Only 22% of the countries in our analysis turned out to be Trend Setters. Of all the countries we analyzed, 87% are not utilizing user participation capabilities on their Open Data portals. Countries falling in the ‘Beginners’ category are those that are still in the initial stages of their Open Data journey. Data portals in such countries are typically characterized by the lack of good quality, updated data. They also have a complete absence of community participation on their respective portals. The Open Data portals of these countries are rudimentary, with limited functionalities, making it difficult to search and utilize the data that they have opened up. All of the five countries in this category completely overlook the importance of releasing high value datasets with none of them sharing datasets for geospatial, meteorological and environmental information. Around 22% of countries in our research ended up in this category. ‘Followers’ typically include nations that have shown their intention and progressive approach towards Open Data by releasing a large number of datasets. They also provide better search functionalities on their portals, which makes it easy to obtain data. These countries also Figure 2: Benchmarking of Open Data Initiatives, Select Countries, 2012 High Data Portal Usability Beginners Source: Capgemini Consulting Analysis UK USA Followers Singapore Canada & Australia Trend Setters Denmark New Zealand Spain Hong Kong Kenya Ghana Norway Estonia Saudi Arabia Italy Moldova & Chile France Austria Belgium Ireland UAE & Morocco Data Availability Low High Note: Size of bubble represents level of government support.
  • 6. Our Open Data Benchmarking Research Methodology 3. Data Portal Usability We undertook an extensive This parameter included research of the Open Data portals a complete view of the of each of the selected countries functionalities and ability of the that had already initialized some respective Open Data portals Open Data initiatives, in order to to facilitate an increase in data analyze their maturity. We looked uptake. It included aspects such at various aspects of the portals as ease of user interface, search ranging from availability of data to functionalities and presence political leadership to data portal as well as usage of capabilities usability. All the countries were to encourage participation and rated on a scale of 0 to 3 (where communication with users. 0 was the lowest and 3 was the highest rating). Research Findings Countries Analyzed 1. Overall Findings USA, UK, France, Canada, - Only 22% of countries shared Australia, New Zealand, Singapore, data that can be classified as Hong Kong, Kenya, Ghana, UAE, comprehensive – data with high Saudi Arabia, Norway, Estonia, value information, granular in Austria, Moldova, Italy, Spain, nature and including extensive Morocco, Belgium, Ireland, Chile datasets. and Denmark. - 96% of the countries analyzed share data which is not regularly Key Parameters updated. 1. Data Availability - Over 60% of the countries we analyzed lacked enhanced search Countries were rated on capabilities. their emphasis on sharing comprehensive information, - 87% of the countries are not which included focusing on utilizing user participation various aspects such as number capabilities. of datasets published, sharing datasets with high value information, granularity of the data and information regarding the nature of datasets. 2. Political Leadership This parameter rated countries on the level of political support or guidance for their Open Data initiative. 2. Category-wise Findings Beginners - All the countries in this category do not emphasize on the quality of the data, which often lacks both breadth and granularity. - Countries in this category were characterized by complete absence of user participation capabilities. Followers - Only 8% of Followers share data that can be categorized as having the right amount of granularity and comprehensiveness. - Almost 92% of Followers do not utilize their Open Data portals for an effective dialogue with users, while the rest completely lack this capability. Trend Setters - 80% of Trend Setters share data having a high degree of comprehensiveness. - 100% of the countries in this category boast of political support for Open Data program coming from the country’s highest offices. - Over 60% of Trend Setters achieved considerable user participation on their Open Data website. 6
  • 7. Benefit to Government Increased tax revenues though increased economic activity Revenues through selling high value added information for a price Reduction in transactional costs Increased service efficiency through linked data Create jobs in current challenging times Encourage entrepreneurship Benefit to Private Sector Drive new business opportunities Reduced cost by not having to invest in conversion of raw government data Better decision making based on accurate information Gain skilled workforce Drive Revenue through multiple areas Cut Costs and Drive Efficiency Generate Employment and develop future-proof skills ‘Trend Setters’ represent the current leaders in Open Data initiatives. These countries are characterized by their emphasis on releasing extensive amounts of datasets, which are updated at regular intervals. The portals for these countries are enabled with significant capabilities for making information easier to source and generating dialogue amongst the user community through forums and discussions. Within Trend Setters, we see the emergence of two clear categories. Countries such as the UK and the USA, among the early adopters of Open Data initiatives, publish data with significant breadth and granularity accompanied with discussion forums and blogs to drive engagement among users. At the same time, there are countries such as France that only initiated its Open Data programs a year back but have managed to use government support to achieve significant progress in a short period of time. While this has resulted in driving data breadth, granularity is still missing. Our results indicate that only very few countries, around 22%, can be classified as Trend Setters. On further analysis of these categories, we found that countries that share comprehensive and updated data achieve a higher level of user participation. For instance, out of ‘Trend Setters’, characterized by high focus on comprehensive and updated data, over 60% were able to interact or initiate discussion with users on their website. On the other hand, all ‘Beginners’ had complete absence of user participation on their Open Data portals. These findings reflect that a strong political will/vision in itself does not guarantee the success of Open Data initiatives. It is important that this vision be adequately complemented with efforts towards sharing quality data with users, ensuring its increased uptake and an active participation from the user community. A coherent approach towards achieving these objectives is essential, in order to realize maximum economic benefits from Open Data initiatives. These economic benefits revolve around revenue growth, cost savings and improved efficiency, and employment generation while developing skills (see Figure 3). In the rest of the paper, we delve into each of these key economic benefit areas. Figure 3: Economic Benefits of Open Data Source: Capgemini Consulting Analysis 7
  • 8. The emergence of open ecosystems, thriving on private data, has resulted in the emergence of many new firms. For instance, the APIs (Application Programming Interfaces) by companies such as Facebook, Twitter and Google consistently see multiple billion calls every month5. APIs help companies extend reach of their services, drive revenue growth and encourage third-party innovation. This is a scenario that can be successfully replicated with public data as well. In fact, the infomediary sector in Spain, a sector that comprises solely of companies that sell services on top of Open Data, generates 330- 550 million Euros annually6. Increasing the Volume of Private Sector Business Activity Open Data enables an increase in business activity by allowing the creation of new firms, new products and services. Several countries, including USA, Spain and Finland, have seen Open Data have a tangible impact on the volume of business activity in their geographies. Encouraging New Firm Creation Open Data drives growth by stimulating the creation of firms that reuse freely available government information in innovative ways. In Spain, a study estimates that there are over 150 companies focused solely on the infomediary sector7. Creating New Products and Services Small and medium companies with products and services based on Open Data, such as Global Positioning Systems, financial services and software applications, also generate new businesses and jobs. According to a Finnish study, firms that reuse government released geographical data, either freely or at marginal costs, grew 15% more per annum than in countries that price such information with an objective of recovering costs8. For instance, The Weather Channel, an American television network, and Garmin, a firm that develops consumer, aviation, and marine technologies (with market cap of over $7 billion at end of January 2013) were built using raw government data9. Furthermore, businesses can generate high returns through the development of new products and services based on high value data domains (see Figure 4). For instance, BrightScope, a California financial information startup, used government data to help the consumers understand fees associated with their retirement savings accounts. Similarly, data domains such as Economic, Geospatial and Environmental have higher commercial impact. For instance, Open Data from the US National Weather Service supports a private weather industry worth over $1.5 billion per year10. Open Data drives growth by stimulating the creation of firms that reuse freely available government information in innovative ways. Realizing Revenue Growth using Open Data Supplementing Existing Products Innovative solutions can be developed through a mix of public sector and proprietary information such as data-as- a-service. For instance, CloudMade, an applications development company, leverages OpenStreetMap data from the transport domain and supplements it with various datasets from alternative sources in order to create comprehensive location data. Revenue is generated by supplying this information at a price to developers and application publishers of geo-enabled products11. 8
  • 9. Figure 4: Most Popular Open Data Domains: Percentage of companies working with specific domain of Open Data (n=150), Spain, 2012 51.1% 46.8% 29.8% 27.7% 12.8% 12.8% 12.8% Source: Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 10.0% Geographic /Cartographic Info Business /Financial Info Socio-Demographic /Statistical Info Legal Info Meterological Info Transport Info Museums, Cultural Files and others Others Generating Additional Public Sector Revenues For governments, opening the public sector information vault can lead to financial gains. Revenue generation accrues from two broad areas: namely charging from data and tax income accrued due to commercial activity on Open Data. Generating Revenues from Charging for Open Data Most countries/departments provide free access to citizens with more opting for an ability to view rather than to download. Some countries appear to be taking an intermediate path by allowing non-commercial reuse at zero cost, charging for commercial usage. For instance, CENDOJ (the Spanish Judicial Documentation Centre), responsible for managing all of Spain’s legal documentation, In countries where organizations have moved to marginal/ zero cost charging models, the number of re-users increased by between 1,000% and 10,000% leading to an increase in revenues. provides government data free for consultation to any citizen not intending to reuse the information and charges commercial re-users on the basis of license cost per sentence12. There is evidence of pricing significantly impacting the usage of Open Data. For instance, in cases where organizations have moved to marginal and zero cost charging or cost-recovery models, the number of re-users increased by between 1,000% and 10,000%.13 Some public sector bodies have also shown that substantial price reductions can be done without impacting overall revenues since they lead to a significant growth in usage. In fact, reducing the price of Open Data usage could lead to an increase in the revenue generated from it. For instance, the Austrian public sector body responsible for geographic information, BEV, lowered charges by as much as 97%, resulting in a 7,000% growth in demand for certain product groups. In essence, BEV was able to increase its geographic Open Data sales revenues by 46% in the four-year period after the pricing review14. 9
  • 10. Generating Increased Tax Income from Commercial Usage of Open Data Governments can generate long-term tax revenue growth through a wide range of direct and indirect applications of Open Data across the economy. The aggregate direct and indirect economic impact from such applications and their use across the EU27 economy is estimated to be €140 billion annually15. The corresponding increase in tax revenues is a direct monetary benefit to governments. The aggregate economic impact from applications based on Open Data across the EU27 economy is estimated to be €140 billion annually. Open Data disrupting Real Estate Marketplace Zillow, a Real Estate advertising network, is a notable example of technology startup flourishing on Open Data. The company established a successful business by creating a living database of homes across the United States. This database is built from a range of sources such as county records, tax data, listing of homes for sale or rental and mortgage information. The website combines mapping data with information on local land value and house price to create a service which accurately estimates the value of a house at a given address. One of its main offering Zestimates (an advanced statistical predictive tool) provides up-to-date information on home values and rental prices. The company has over 30 million unique users per month scrolling through its database of more than 100 million homes. Zillow has grown significantly since 2006 with its revenue doubling at $66.1 million in 2011, compared to $30.5 million in 2010. As of December 2011, the company had 329 full-time employees. It successfully launched its IPO in July 2011. 10 Source: Company website and press releases
  • 11. Achieving Cost Savings While Increasing Transparency For governments, opening up public sector information has significant potential for cost savings and improving service efficiencies. Reducing Transactional Costs and Redundant Expenditure Public administration officials typically spend a significant amount of time and resources in answering queries that arise due to legislations allowing citizens to gain access to data. Providing data for citizens online in a searchable format has a direct impact in reducing the cost of servicing. For instance, Bristol City Council reduced transaction costs when they introduced an Open Data catalog. The cost to the council for a typical service transaction was found to be 15 times more expensive if answered in person or telephone than if answered over the Internet16. Similarly, Open Data and access to real-time information saved over $1 million for the city of San Francisco in the US. The city’s Chief Innovation Officer announced in June 2012 that access to real-time transit data resulted in 21.7% fewer SF311 calls17. This decrease in call volume resulted in savings of over $1 million a year18. Openness also aids in cutting down on public expenditure as public bodies are made more accountable for financial discrepancies. For instance, in California USA, the state transparency portal (that cost around $21,000 to implement) saved the state over $20 million when visitors identified unnecessary expenditure. The savings came after visitors to the site noticed an audit that showed that many of the vehicles in the state’s fleet were not needed19. Improving Service Efficiency through Linked Data Integrating and publishing data can enable public bodies improve service efficiency by enabling efficient collaboration between business stakeholders and public bodies. The publication of MRSA infection rates in UK hospitals is a case in point. The National Health Services (NHS) in UK started publishing infection rates of all hospitals on the portal data.gov. uk20. This publication, coupled with the sharing of league tables showing the worst hospitals, encouraged exchange of best practices amongst hospitals. It brought down infection rates from around 5,000 patients annually to fewer than 1,200. The initiative also achieved a cost savings of £34 million. Though the savings cannot be solely attributed to opening up data, the efficiency of hospitals and exchange of best practices has had a significant effect on hospital functioning and public health. Further, NHS has been publishing outcome data for hospitals and surgeons since 2004. This has led to a drop in mortality rates by 22% as it became easy to spot the pain points and improve cardiac healthcare services21. Openness also aids in cutting down on public expenditure as public bodies are made more accountable for financial discrepancies. 11
  • 12. Open Data identifies possible prescription savings worth millions In 2011-12, the NHS in England spent more than £400m on statins, a class of drugs used to prevent cardiovascular problems, out of a total drug budget of £12.7 billion. Some of these drugs are more expensive than others: patented ones can cost 20 times more than generic versions. The current evidence shows that all drugs from this class are equally safe and effective, so doctors are usually advised to use the generic versions initially. With the aim of analyzing the prescription pattern of these drugs - Mastodon C, a big data start-up company incubated at the Open Data Institute and Open Health care UK (a consortium of NHS doctors and technologists dedicated to improving patient care by opening up health data), worked with publicly available NHS prescription data. They looked at the entire prescriptions dataset (over 37 million rows of data) and analyzed how much money was spent in each area on more expensive drugs. It was found that on an average £27m a month of potentially unnecessary expenditure on the two proprietary statins took place in 2011 in the NHS in England. And savings of over £200m could have been achieved for the NHS, had every doctor prescribed cheap statins. Encouraged by the findings, the team intends to go further ahead and identify similar potential savings in different prescription categories as well. Source: Open Data Institute Case Study 12
  • 13. 13 Creating Jobs and Disseminating New Skills by Leveraging Commercial Potential A larger, and more long-term benefit of opening up data is the impact that it has on dissemination of skills around Big Data. In today’s challenging economic times, Open Data can act as a significant aid to Government efforts at creating jobs. And at the same time, it can complement the efforts of the private sector to boost the skill set of the hiring pool. Creating Jobs using Open Data and its Commercial Potential The potential for job creation through commercial usage of Open Data is significant. In Spain, a study found that the infomediary sector (companies that sell services on top of Open Data) employs around 4,000 people and generates 330-550 million Euros annually that can be directly attributed to Open Data reuse22. The market size and growth of the geographic information sector shows the potential of Open Data as an engine for job creation. The German market for geo-information in 2007 was estimated at €1.4 billion, a 50% increase since 2000. In the Netherlands, the geo-sector accounted for 15,000 full time employees in 200823. Similarly, in Australia, in a study done to understand the impact of open geospatial data, it was observed that over 31,400 people were directly employed in the spatial information industry.24 Disseminating Big Data skills using Open Data as an Introductory Platform Job creation is a direct and short-term economic impact of Open Data. However, a larger, and more long-term benefit of opening up data is the impact that it has on dissemination of skills around Big Data25. The opportunities around Big Data are indeed significant. It is estimated that by 2015, Big Data demand will reach over 4.4 million jobs globally. However, globally, there is a significant dearth of skills around Big Data and its application. It is expected that only a third of the 4.4 million positions are likely to be filled26. Opening up government data can act as a driving force for individuals and organizations as they attempt to create value on top of such data. Developing Big Data skills is a strategic area for governments across the world and answers a growing need in the business community. In the Spanish study cited earlier, it was observed that over 50% of all staff in firms dealing with Open Data were engineers or had higher level qualifications. Given the benefits that can be realized through Open Data programs, we believe a structured approach in implementing Open Data initiatives is necessary to actualize this opportunity. In the next section, we detail the focus areas in a stepwise approach for governments to derive value out of Open Data.
  • 14. How Can You Derive Economic Value from Open Data? Opening up data is not a straightforward task. It starts with government willingness to open up data. Once there is a broad buy-in to opening up public data, governance structures should be established to oversee all Open Data initiatives. Governments will need to decide on the type of data that is prioritized for release and how best to offer this data to developers. The final step in enabling governments to allow Open Data to flourish is to drive its uptake – both by citizens and by developers (see Figure 5). Build a Vision A first step is to build a vision around the possible and tangible benefits from Open Data. This vision needs to be driven from the top, typically with strong political leadership directing the efforts. For instance, in the UK—a “Trend Setter” in our analysis—Open Data efforts are led by Francis Maude who says, “This Government believes Open Data will be the essential characteristic of future public policy”27. It is important that such a vision percolates down from the top to garner support from ministries and civil servants alike for effective functioning of Open Data initiatives. A similar vision from the country’s highest office is helping France in building a robust Open Data program. Through a directive from the Prime Minister’s office, France created Etalab, an agency responsible for creating and maintaining its Open Data portal. Along with this, Etalab is responsible for coordinating the activities of ministries and in supporting public administration with facilitating the widest possible reuse of its public information. Since the launch of the French Open Data portal in December 2011, over 350,000 datasets have been published on it and it has achieved more than 750,000 visitors and over 394,000 downloads.28 Create a Governance Structure Governments need to develop institutions with an explicit mandate to frame and encourage the development of Open Data. For instance, the Open Data initiative in UK is being advocated and encouraged by various bodies, which have well-defined roles for greater coherence in achieving Open Data objectives (see Figure 6). Figure 5: Focus areas in Implementing Open Data Initiatives Build a Vision Source: Capgemini Consulting Analysis Create a Governance Structure Develop and Implement Content Framework Drive Uptake 14 Open Data initiatives need to be driven from the top with strong political leadership.
  • 15. Data Strategy Board (DSB) The DSB’s goal is to create maximum value, for businesses and people across the UK has two main goals – (1) Seek to maxmize the value of data from the PDG for long term social and economic benefit (2) To act as an intelligent advising government on commissioning and purchasing key data and services from the PDG. Develop and Implement a Content Framework Governments should structure data to ease reuse of data, optimize the number of datasets, ensure the data is regularly updated and reduce disparity. Structuring of data will increase downloads of datasets and help private developers to build varied data-based applications. A periodic process has to be followed in the creation or collection of the raw data. The raw data at the local, national or international level needs to be aggregated to create more comprehensive datasets and allow for joint storage and retrieval. Also, emphasis should be on identifying and making available the kind of data, which provides maximum commercial reuse and generates the most interest from users. Further, governments need to ensure that data shared with users should be in a non-proprietary format and data across government portals should be linked. This would help achieve greater dissemination and uptake of Open Data. Applying the linked data principle also adds value to the information through combinations with other data, such as demographic, traffic or environmental data. Drive Uptake Any amount of Government effort in setting up institutions and frameworks around Open Data isn’t of much help if there are no initiatives to encourage its usage. Governments should encourage citizens and businesses to actively use the data and engage with it. The intent should be to motivate users to actively seek out more datasets that can help address issues that impact them. Creating a platform of e-learning for non-qualified users, with tutorials and information, will provide them with the tools to analyze, transform and share public data. At the same time, governments should ensure that they encourage the developer community to create value-enhancing applications. A good way of mobilizing developers would be through launching Open Data challenges. In a EU Open Data challenge conducted in April 2011, there were over 430 entries in a period of 60 days29. The competition was conducted across four categories - ideas, applications, visualizations and datasets. In summary, opening up data holds the key to unlocking economic gains from multiple perspectives. Governments and public authorities need to view Open Data not just as an opportunity to bring in transparency and accountability in their functioning, but also as an enabler of economic growth and a driver of innovation. In these challenging times, it offers the opportunity to drive tangible economic value and stimulate growth and innovation. Governments wishing to establish their position in tomorrow’s digital world should leverage the potential that Open Data holds. Figure 6: Open Data Bodies in UK and their Roles Source: Capgemini Consulting Analysis Open Data User Group (ODUG) The ODUG’s objective is to give advice to DSB on public sector data that should be prioritized for release as Open Data. It aims to act as an intelligent customer on behalf of the public and the private sector for freeing up data at the point of use and for re-use. Open Data Institute (ODI) The ODI’s goal is to help people create economic, environmental and social value from Open Data. It aims to encourage small entrepreneurs to turn raw data available into tangible and worthwhile information. Public Data Group (PDG) The PDG aims to improve using and sharing of data, through collaboration and sharing of best practices. It also aims to aggressively pursue individual and cross-asset efficiencies, delivering lower prices to all users of data. Open Data UK 15
  • 16. References 1 “Driving Innovation through Knowledge Sharing” October 2011: http://www.slideshare.net/jeanneholm1/ driving-innovation-with-knowledge-sharing-and-open-data 2 “Review of recent studies on PSI re-use and related market developments”; Final Version, Graham Vickery 3 UK Government press release on launch of Open Data Institute 4 UK Open Data Portal, Site Usage Data. 5 Programmable Web, “Which APIs Are Handling Billions of Requests Per Day?”, May 2012 6 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 7 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 8 “Does Marginal Cost Pricing of Public Sector Information Spur Firm Growth”; Research Institute of Finnish Economy 9 Digital Fuel of the 21st Century: Innovation through Open Data and the Network Effect, Harvard University, 2011 10 Concept et Stratégies pour Gouvernement Ouvert et Open Data, World Bank ICT report,2012 11 “CloudMade Apps”; http://cloudmade.com/about 12 European Commission, “Pricing of Public Sector Information Study”, October 2011 13 European Commission, “Pricing of Public Sector Information Study”, October 2011 14 European Commission, “Pricing of Public Sector Information Study”, October 2011 15 European Commission, “Digital Agenda: Commission’s Open Data Strategy, Questions & answers”, 2012 16 “Bristol Open Data Innovation”; http://www.connectingbristol.org/2010/06/07/b-open/; European Public Sector Information Platform, Making the case for opening up government data 17 The San Francisco 311 service connects residents, businesses and visitors to customer service representatives that offer information with general government information. It is a single point of entry for and resolution of information and service requests. 18 http://www.resetsanfrancisco.org/news/jun-25-12/open-data-real-time-information-saves-gov-money 19 Frontier Group, “California Budget Transparency 2.0”, 2009 20 “Finding the value in Open Data”; Open Data Institute, UK 21 UK Cabinet Office Article on Francis Maude’s speech, March 2012 22 Spanish Open Data Portal Annual Report, “Characterization Study of the Infomediary Sector”, July 2012 23 Eur-Lex, ““Open data An engine for innovation, growth and transparent governance”, 2011 24 ACIL Tasman, “The Value of Spatial Information”, March 2008 25 Big data describes datasets that grow so large that they are challenging to work with, using traditional database management tools 26 Gartner, “Gartner Says Big Data Creates Big Jobs: 4.4 Million IT Jobs Globally to Support Big Data By 2015”, Oct 2012 27 UK Cabinet Office, “Open Data Innovation Community - Francis Maude speech”, March 2012 28 Official Open Data Website, France, “The national platform www.data.gouv.fr celebrates its first anniversary”, December 2012 29 Open Data Challenge website, June 2011 16
  • 17. Author Dinand Tinholt Vice-President dinand.tinholt@capgemini.com The author would also like to acknowledge the contributions of Jerome Buvat, Ashish Bisht, Manik Seth and Subrahmanyam KVJ from the Digital Transformation Research Institute of Capgemini Consulting. For more information contact Belgium Patrick Pouilliart patrick.pouilliart@capgemini.com Finland Ilkka Kankare ilkka.kankare@capgemini.com France Ludovic de Lamazière ludovic.delamazière@capgemini.com Germany Tom Gensicke tom.gensicke@capgemini.com Middle East Jawad Shaikh jawad.shaikh@capgemini.com Netherlands Marleen van Amersfoort marleen.van.amersfoort@capgemini.com Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change. Find out more at: http://www.capgemini-consulting.com/ Rightshore® is a trademark belonging to Capgemini Sweden Henrik Poppius henrik.poppius@capgemini.com UK Richard Kershaw richard.kershaw@capgemini.com About Capgemini With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com. Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2013 Capgemini. All rights reserved.