apps for europe: making money with open data
TRANSCRIPT
A ‘quick’ guide to business modeling and how open efforts can boost the Belgian start up scene.
Making Money with
@PJPauwels & @tthoeye
Open Data?Open definition!
“Open data and content can be freely used, modified, and shared byanyone for any purpose”
-- opendefinition.org
Let’s break it down
open access basically means you can download it from the internet, for free, without registration, …
open formats mean you can read the data in any free text editor (sublime or notepad)
open license means you redistribute and make money using the data
Source: http://ec.europa.eu/commission_2010-2014/kroes/en/blog/opendata
Source: http://ec.europa.eu/commission_2010-2014/kroes/en/blog/opendata
€ 70.000.000.000ORBEF 2.823.800.000.000like my granny would convert it to
Source: http://www.mckinsey.com/insights/business_technology/open_data_unlocking_innovation_and_performance_with_liquid_information
CC-BY Fufu Wolf
1. Government process optimisation and cost reduction 2. New economic opportunities
1. More transparent government
2. Improved public services
3. Economic and social value
Objectives of open data
CC-BY - Sebastiaan ter Burg
In almost all the application competitions, mostly innovative applications are rewarded.
But on the other hand, the result shows that the most innovative applications won’t necessarily be the successful one in future business practice.
On one hand, a lot of creativity and know-how exists in Europe to develop smart applications based on open data sets.
On the other hand, solid business models to bring these apps to the market and make them viable are often lacking.
- Raf Buyle
How does support ‘turning data into business’?
- European support network of organisation and individuals
- Tools for data based business
- 19 partners in 10 different countries
Do you have:
- A Start-Up using Open Data as a resource? - An idea for a start-up using Open data as a resource? - Ambition to start an Open Source / Open Data Start Up
And you want to become a participant during the international business lounge.
You need:
- To win the online competition on http://www.appsforeurope.eu/
- Win one of the local business lounges in Europe.
Why do we want a Belgian (team) to win (again)?
Open Data reuse and economic
value
Open Data Publishing
CC-BY Images Money
CC-BY-SA Bambosz
We scratch but a small surface in the galaxy of business models
- Afuah and Tucci (2000)
Business model details how a firm captures monetary value now and how it plans to do so in the long-term
Business models are the relationships between different participants in a commercial venture, the benefits and costs to each and the flows of revenue.
-- Electronic Commerce: B2C strategies and models”, Elliot (2002)
- Electronic Commerce: B2C strategies and models”, Elliot (2002)
Regardless of complexity Profits = revenue – costs
CC-BY-SA Bambosz
- Electronic Commerce: B2C strategies and models”, Elliot (2002)
Regardless of complexity
Profits = revenue – costs
CC-BY Allan Ajifo
CC-BY Images Money
The big three
1. Freemium
Free Amount 1 Amount 2 Amount 3
Feature 1 x x x x
Feature 2 x x x
Feature 3 x x x
Feature 4 x x
Feature 5 x
Semi
Open
Source
Friendly
Freemium Features could be...- availability of different machine-readable formats
- unconstrained numbers of API calls
- more sophisticated querying
- access to data dumps rather than through an API (or vice
versa)
- provision of feeds of changes to the data
- enhancement of the data with additional information
- early access to data
And freemium is flexible
Subscription model“Every month I pay 10 dollars”
One-time-payment model“I pay 10 dollars for access”
Usage modelPaying per use or # API calls
1. Freemium
Subscription model“Every month I pay 10 dollars”
One-time-payment model“I pay 10 dollars for access”
Usage modelPaying per use or # API calls
www.enigma.io
CC-BY Images Money
2. Support and Services (SLA) Model
Core=
Open Source
Support Integrations Hosted service Custom add-ons ...
Paid
Open
Source
Friendly
CC-BY Images Money
Other models and Examples
Crowdsourcing Data - Network Model
Application Developer
Using crowdsourcing data to create your desired application
Community
Can use data without restrictions and expensive fees.
Release data for
free
EXTRA
CC-BY-SA AMBERBUNTING