Question:
Discuss about the Impact of Open Data on Business Innovation.
There are various data sources that are available in the internet at present time, which are divided under a number of banners. Broadly, it is of two type, open data source and licensed content. The licensed contents are only available on purchase. Whereas, open data are something for which public do not have to pay (Lindman, Rossi and Tuunainen 2013). These data comes from the sources that are not restricted by copy right and mostly found in various public domains like municipalities, government, international organizations and many more. The typical one among them is the government data which are made available for the public in their websites. These data are used by various business organizations in order to grow their business and have a proper idea of the market. It is not mandatory that the open data will always bring profit the business. Open data have both positive and negative impact (Zuiderwijk and Janssen 2014). Different scholarly works have been conducted which will be reviewed in this proposal.
This part of the project will be focusing on the various business organizations and the impact of the open data source on them. The scope of the project lies in the field of the negative exposure of using the open data source where there is ample opportunity to conduct research.
Different government took initiatives to provide data to public offering them a better understanding of the scenario. The numbers of these initiatives have grown considerably during 2009-13 from two to over two hundreds. These data that are available in the internet for free not only provided the business organizations the opportunity, but also the ability and motivation to set social and economic value of their organization. These data help in generating new knowledge, value proposition and ideas. It can be summed up as the open data will enable the company to increase he organizational capabilities, which in turn will supplement in idea generation, conversion and diffusion. This will ultimately lead the company to form new social and economic value (Kitchin, R., 2014).
Open Innovation strategies
Open Government Data initiative is taken up by almost every developed and developing countries in the world. The governments are attracting the businesses to collaborate, participate and re-use their data that are made available by them. Different innovative strategies can be opted with the help of open data for the business growth. The author also posits a set of a set of considerable for developing the open government data portal into an open innovation platform. Businesses are also suggested to create e-service that leverage on the datasets available from the portal (Chan 2013).
Demand for Open Government Data in Business
Demand for open business data in private sectors or business seems to be the highest according to the Indonesian research team. A significant number of business owners have stated that the available business data on the internet is useful for their business. They show interest in more government data to become publicly available which can significantly fund for their business uptake. But the authenticity of the data reduces if it becomes free. Henceforth, the proprietors of the private businesses do not mind in purchasing the government data if it is made available by the government authority. Data from the education sectors, for instance, the number of graduates in specific fields in certain geographical region is a considered useful data for any business. It makes it easier for the private companies find out the required talents from the market and decide where to invest and where to hire the talents (Indonesia 2013).
Economic Benefits of using Open Government Data
According to the author, Open government Data plays potential role in innovation of any business. It provides valuable and important data for the new enterprises and business models. Though, the new business models to enter in the market, standard, which future-proof financial investment is absolute necessity. Great economic benefits are expected for the business and startup niches. According to one interviewee of the author, the open government data helped him to increase his sales by 5% (Parycek Hochtl and Ginner 2014). There are other ways of benefiting from the open data that are provided by the government. Those are outsourcing present government procedures for business cycles and as a business network. The business models, which are making use of open government data, are expected to emerge in the field of economy. It can be based on data handling, data integration, data analysis, or even visualization. OGD have the potential to provide job creation or preservation or job creating which in term will bring economic growth (Parycek Hochtl and Ginner 2014).
Open data opportunity
Open data is widely used by various companies as it offers productive growth and economic reform of the company. By extracting the knowledge available in open data in the internet permits the organizations to make better use of the existing data. Proper use of these open data policies can considerably increase any business’s output that would boost the cumulative GDP. It also helps in promoting the theme of the business agendas such as trade, monetary policy, fiscal, employment, finance, infrastructure and fiscal. This in turn offers achievement of the company’s growth target. It also opens up the opportunity to create economic and social value of the company. The business can reduce its costs in provision of existing services. New services are enabled by using this and also help in quality improvement. The governance of the company is also being improved using open data (Jetzek, Avital and Bjorn-Andersen 2014).
Opportunities for startups
The startup based on open data has endless possibilities as stated by the author. The open data can be used as a fuel in innovation in terms of new apps that are based on open data. Necessary commitment and effort towards the work is of absolute necessary for the startup to run in the first days. A structured plan is required to engage with preparing both short and long term targets. Development of apps can provide enormous benefits to citizens, that it will be import to capture how open data can supplement in development in the particular area. The open and closed data can provide opportunity for the startup to consolidate and further growth. The author found gaps in important information where innovation can work with help of open data and presented his idea with an example of parking issue that is found in everyday life. An app based on open data can solve their quarries and problems and the startup can thrive using the open data (Kitsios and Kamariotou 2018).
Open data in Business model
A number of organizations opened their data for the general public in order to stimulate the innovation of their business. It has resulted into rise of new business models for the organization. According to Janssen and Zuiderwijk (2014), these newly innovated open data business models can be divided into six types, which are interactive app, comparison model, service platform, single–purpose app, information aggregators and open data repositories. These models have different level of accessibility to the raw data. Social media is used by many business organizations for rating and discussion to get the idea for improving their business. Hybrid models on the other hand have a combined model of value creating where both private and public organizations interact (Janssen and Zuiderwijk 2014).
Usage of open data in business
Open data is considerably a new thing in the market and very few companies have been using open data as an integral part of the company. Such companies see the open data as a tool to maintain their present situating and help in creating values to the customers. It cannot help directly in financial benefits. Some also considers the utilization of these open data is to improve the quality of the content and making them more comprehensive. Combination of company’s data with open data can bring new possibilities for the company. Several motives and opportunities are identified. They can be summed up as follows. The companies can use the open data for creating value, upgrading the quality of their product and services of the business and to improve the quality of the information and knowledge produced from the source. It can also supplement in improving the usability of the data. Open map can be an example where it is used in the visualization of the data. The open data can also contribute in assisting the comprehension of the situation that is in hand. Moreover, these open data is considered as valuable tool for business’s internal use. Refinement of data, service development, information and knowledge based management and decision making are considered as opportunities of using the open data. Moreover, some new and less identified opportunities such outsourcing of the services, business-driven opening of public data can be spotted (Immonen, Palviainen and Ovaska 2014).
Impact of open data on business
The open data offers various possibilities of imitating as well as learning opportunities for avoiding pitfalls. The biggest opportunity that can be identified is the hybrid model as discussed in earlier review where the models tend to pertain the ways in which companies can constrain portion of their offerings for the purpose of extracting profit. Example can be drawn of the dual-licensing. As the services and data are made free for all, the company doesn’t need to purchase the products. This saves a lot of money that can be used in different grounds. On the other hand of the glittery benefits of open data sources, there are also negative impacts of this practice. It possesses a negative impact on the business ideology based on the company’s respondents alone. Every business requires investing both time and money in setting up their respective businesses. Open development is something that opposes the profit motives of the company which can be considered as bad for the business (Lindman 2014).
Requirement of open data based business
According to Immonen, Palviainen and Ovaska (2014), the open data source creates new opportunities for the business for the factors that provided data, consume data and develop innovative services and applications around the open data. These businesses require separate business models and synergetic environment called ecosystem to support the business applications and services. The actors of these open data ecosystem businesses are differently oriented and the business model elements. Services and business models that are needed in open data based business supposed to be different in order to gain the full advantage of the service (Immonen, Palviainen and Ovaska 2014).
Literature Gap
Previous studies have focused on the positive aspects of the open data sources. They also discussed about the policies of different countries for the initiative of opening data to the public. Different authors had also covered impacts of this open sources data, but only focusing on the positive approach. Economic benefits, social, and corporate value adding are discussed in dept. However, the negative approaches of this initiative are barely discussed and there are very few literatures available which focuses on this topic. Ample amount of scope is available to carry out a project in finding out the major drawbacks of the open source in the business innovation process.
Conclusion
It can be concluded from the above discussions of literature reviews that governments of all the developed and developing countries are considering making the data available to the private companies and the public, where the process has already started. Different benefits of these data are discussed and reviewed with the potential outcomes. The impact of these open data sources, both from government and private businesses are discussed. Economic benefits of the usage are also highlighted. The opportunities of the business in using open data can be found in the report with the innovation of the business model that is required in applying it. From the review, the gap can be found in the demerits of the use of open data. There are very few literature which discuss and highlights the demerits of open data which can be considered as a great opportunity for carrying out the research.
Reference List
Chan, C.M., 2013, January. From open data to open innovation strategies: Creating e-services using open government data. In System Sciences (HICSS), 2013 46th Hawaii International Conference on (pp. 1890-1899). IEEE.
Indonesia, R.A., 2013. Open Government Data.
Immonen, A., Palviainen, M. and Ovaska, E., 2014. Requirements of an open data based business ecosystem. IEEE Access, 2, pp.88-103
Immonen, A., Palviainen, M. and Ovaska, E., 2014. Towards open data based business: Survey on usage of open data in digital services. International Journal of Research in Business and Technology, 4(1), pp.286-295.
Janssen, M. and Zuiderwijk, A., 2014. Infomediary business models for connecting open data providers and users. Social Science Computer Review, 32(5), pp.694-711.
Jetzek, T., Avital, M. and Bjorn-Andersen, N., 2014. Data-driven innovation through open government data. Journal of theoretical and applied electronic commerce research, 9(2), pp.100-120.
Kitchin, R., 2014. The data revolution: Big data, open data, data infrastructures and their consequences. Sage.
Kitsios, F. and Kamariotou, M., 2018. Open Data and High-Tech Startups Towards Nascent Entrepreneurship Strategies. In Encyclopedia of Information Science and Technology, Fourth Edition (pp. 3032-3041). IGI Global.
Lindman, J., 2014. Similarities of open data and open source: Impacts on business. Journal of theoretical and applied electronic commerce research, 9(3), pp.46-70.
Lindman, J., Rossi, M. and Tuunainen, V.K., 2013, January. Open data services: Research agenda. In System Sciences (HICSS), 2013 46th Hawaii International Conference on (pp. 1239-1246). IEEE.
Parycek, P., Hochtl, J. and Ginner, M., 2014. Open government data implementation evaluation. Journal of theoretical and applied electronic commerce research, 9(2), pp.80-99.
Zuiderwijk, A. and Janssen, M., 2014, June. The negative effects of open government data-investigating the dark side of open data. In Proceedings of the 15th Annual International Conference on Digital Government Research(pp. 147-152). ACM.
rnment data catalogs have been published and over a million datasets have been released by governments around the world, spawning new businesses and social projects.
One private sector representative mentioned data from the education system, such as the number of graduates in specific fields in a certain region, as a potentially useful resource for private companies allowing them to find out where to invest and where to hire talent.
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