Business Models For Geographic Information: January 2018
Business Models For Geographic Information: January 2018
Business Models For Geographic Information: January 2018
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B. Van Loenen
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Glenn Vancauwenberghe
Frederika Welle Donker
Bastiaan van Loenen
1 Introduction
In today’s information society, geographic information (GI) also referred to as spatial information is
extremely important to the operation of society, and thus very valuable. Citizens, businesses, and
government use GI for many of their day-to-day decisions. Most of the societal, economic, and
environmental challenges they face require spatial thinking and understanding.
Creating and capturing value from geographic data requires raw data to be turned into GI services and
products that are consumed by end users. Although GI will only be of value once it is used (Onsrud and
Rushton 1995), this value will be created through a number of stages during each of which a new value
is added to the original input by various activities (Longhorn and Blakemore 2008; van Loenen and
Zevenbergen 2010). Organizations can fulfill many different roles in the process of generating value
from geographic data, and many different GI business models exist.
Although business models determine how organizations create, deliver, and capture value, they should
not be regarded as permanent and invariable structures or settings. Business models are shaped by both
internal and external forces, and will only be successful if they are able to adapt to a changing
environment. In the GI domain, several technological, regulatory, and societal developments have
challenged the existing business models and opened up opportunities for new business models. Among
these developments are the establishment of spatial data infrastructures (SDIs) worldwide, the
democratization of geographic knowledge, and the move toward open source, open standards, and
open data. After the commercialization of GI technologies and the introduction of these technologies in
different kind of organizations, these trends have led to the introduction of new actors into the GI
domain and new ways of using and dealing with GI.
Since the development and implementation of SDIs in different parts of the world, much attention has
been paid to the need to find appropriate business models for GI, and in particular, for geographic
data providers in the public sector. Traditional business models in which public data providers were
selling their data to customers in the private industry and other public agencies were questioned,
because they restricted the opportunity for data sharing (Onsrud 1992). The concept of SDI is about
moving to new business models, where partnerships between GI organizations are promoted to allow
access to a much wider scope of geographic data and services (Warnest et al. 2003). A key challenge
in the development of these SDIs was the alignment of different existing business models of the actors
in the GI domain (Georgiadou and Stoter 2008). Moreover, the development and implementation of
SDIs also led to the emergence of new business models, which was even more the case with the more
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recent move toward open geographic data. Open data provided an additional resource for existing
business models in the GI domain, focused on the analysis, management, visualization, and
integration of data (Parycek et al. 2014). In addition, new infomediary business models connecting
data providers and end users aroused, focusing on creating and delivering value through the
development of services on top of the geographic data made available by governments and other data
providers (Janssen and Zuiderwijk 2014).
The aim of this chapter is to contribute to the understanding of the diversity of business models of
organizations dealing with GI. This chapter is structured as follows. After this introductory section, the
next section reviews the relevant literature on business models. Several existing business model
frameworks are presented and the importance of the value concept in business models is explained.
In Section 3, a comprehensive literature review of works on the value of GI is provided. Building further
on this literature review, Section 4 discusses the different elements and components of the value of GI.
Section 5 discusses the GI value chain, including the different actors, the roles, and value-adding
processes within this chain. The business models for GI are then synthesized into one table and are
analyzed in Section 6. We provide our conclusions in Section 7.
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accelerators.
In this chapter, we will focus in particular on three value components that are proposed by several
authors:
1. Value proposition is about the specification of the value that is delivered and offered to different
stakeholders by the organization. It includes product, services, distribution channels,
information, and price.
2. Value creation refers to the execution of particular actions to generate the desired value.
3. Value capture, which is the process of retaining some part of the value produced in the value-
adding process.
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direct financial benefits from opening the data for society in the period 2005–2009 was around EUR
62 million, whereas the total cost of making the data open was around EUR 2 million (DECA 2010).
The value assessment only included the direct financial benefits for the parties directly getting access
to the address data. Recent work in the Netherlands include studies on the benefits of opening key
topographic data (Bregt et al. 2013, 2014; Grus et al. 2015), small-scale energy consumption data
(Welle Donker et al. 2016), and elevation data (Bregt et al. 2016).
Prior to the implementation of INSPIRE, several scientific models and frameworks were developed to
assess SDIs, and the value of these infrastructures in particular. Rodriguez Pabon (2005) created a
theoretical framework for the evaluation of SDI projects through the identification and description of
common success criteria across different contextual backgrounds. Crompvoets (2006) developed and
implemented a procedure to assess the impacts of spatial data clearinghouses in the world. Giff and
Crompvoets (2009) proposed an approach for designing and using performance indicators to support
the assessment of SDIs, aiming to evaluate both the efficiency and the short-term and long-term
effectiveness of SDIs.
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(PSI) estimated that the value adding market of GI in Europe at that time was extremely small
compared to North America (Pira 2000). In this study, the U.S. geo-information industry was estimated
to contribute significantly to the American economy, employing more than 3.2 million individuals and
generating sales of more than EUR 641 billion (Pira 2000, p. 50). The U.K. location market survey carried
out by ConsultingWhere (2013) in the United Kingdom estimated that the market for location-related
software, professional services, data, and hardware in 2012 was nearly EUR 1.5 billion. A study of the
U.S. geospatial industry suggests that it has generated at least 500,000 jobs in the United States and
that geospatial services deliver efficiency gains that are many times the size of the sector itself creating
a lasting source of competitive advantage for the country as a whole (Boston Consulting Group 2013).
In addition, in 2013, a forecast study was delivered by Market Info Group (2013) on the market of
location-based services between 2013 and 2020. An important EU-wide initiative was the smeSpire
study on the geo-ICT sector in Europe, in which the market potential of INSPIRE for geo-ICT companies
was investigated (Cipriano et al. 2013; Vancauwenberghe et al. 2014). ACIL Tasman analyzed the impact
of geospatial information technologies on the Australian economy and estimated this impact to be
between AUD 6.43 and 12.57 billion per annum (equivalent to 0.6%–1.2% of GDP) (ACIL Tasman 2008).
ACIL Tasman arrived at similar results for the impact on the New Zealand economy of NZD 1.2 billion
per annum or 0.6% of GDP (ACIL Tasman 2009). In Canada, Natural Resources Canada provided a
detailed analysis of the Canadian geomatics industry. The study concluded that the use of geospatial
information contributed CAD20.7 billion or 1.1% of GDP to the Canadian economy (Natural Resources
Canada 2016).
Although all these studies show positive impacts due to geospatial information, the results cannot
always be compared as many studies employ different methodologies and outcome criteria. Many of
these studies cannot be validated due to poorly described methodology and a lack of the underlying
data. In addition, some of these studies are based on questionable assumptions and/or selective
extrapolation of only best-case case studies. Thus, due to extrapolating the probably too optimistic
projections, the outcomes may be too optimistic and relatively small uncertainties become
increasingly important (van Loenen and Welle Donker 2014).
1. The precise topic of the value assessment can vary, and a distinction should be made between
studies dealing with the value of geographic data and the value of geographic data
infrastructures. This is not only expressed in the classification of studies according to the
topic by Genovese et al. (2009) but also in the meta-analysis of Trapp et al. (2015) on the
return on investment of geospatial data and systems. Trapp et al. (2015) make a comparison
between studies focusing on geospatial data-related investments and studies on investments
in SDIs. The results of their study show that the benefit–cost ratio of investments in SDIs was
slightly higher than that of investments into geospatial information. However, they also
pointed out that SDI studies often were based on theoretical assumptions or few experiences,
and the benefits still remain unclear.
2. Many different methods can be used for estimating and/or measuring the value. According
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to Genovese et al. (2009) GI assessment studies can also be classified according to the
approach followed. Approach refers to the kind of methodology applied in the analysis or
assessment. After a first identification of 11 different approaches, Genovese et al. (2009)
regrouped these approaches into four main categories: (1) consultation and references, (2)
evaluation techniques (e.g., value chain and value-benefit analysis, pricing, models, and
frameworks), (3) indicators and statistical analysis, and (4) cost–benefit analyses and return
on investment studies. Although Trapp et al. (2015) only addressed studies that investigated
both the costs and benefits of GI investments, they also identified different methodological
approaches that have been applied: cost–benefit assessments, return on investment, and
other metrics.
3. Finally, it is also important to notice that the value can be defined in different ways. For
instance, a distinction can be made between the financial value (monetary, exchange) and the
socio-economic value (Genovese et al. 2010), or between commercial, economic, and socio-
economic value (Longhorn and Blakemore 2008). The financial or exchange value of GI is
typically reflected in the price at which the data are traded and the consumer’s willingness to
pay for the data offered (Longhorn and Blakemore 2008). Socio-economic value of geo-
information refers to the value of an information good and service in achieving societal goals,
such as better governance, higher quality of life, or economic growth (Genovese et al. 2010).
Longhorn and Blakemore (2008) consider the economic value to include the revenues and the
number of people employed by the GI sector, whereas the socio-economic value also includes
non-commercial values, such as improving informed decision-making.
With regard to the third issue, several authors pointed out that information in itself has no value, and
it is only of value once it is used (Onsrud and Rushton 1995; Barr and Masser 1996). Moreover, the
value is rather related to the nature of the use, and less to the nature of the information. In addition,
other authors argued that the value of — geographic — information is different for different users
and for different applications (Longley et al. 2001). Longhorn and Blakemore (2008) add to this that
the value of — geographic — information also varies with time, as information that might be of great
value today, can become less or more valuable in the future. Another interesting perspective on the
value of GI provided by Longhorn and Blakemore (2008) is their identification of different components
of the value of GI. They distinguish:
• The value of the location attribute: The location attribute of GI provides special value to this
information, as it provides a spatial context to the other attributes in the information package,
and increase the value of data for applications where spatial awareness is essential.
• Time dependency value: Value of certain types of GI will be dependent on whether it is real-
time data, relatively invariant data, or historical data.
• Value determined by cost savings: The value of SDIs and other initiatives for data sharing is not
in the data itself, but in the cost-savings realized by duplications in the data collection.
• Value added through information management techniques and tools: The value of GI will
depend on the data format, the physical medium by which it is captured and stored, the
availability of metadata, and the application of — open — standards.
• Value due to legal or other mandatory use requirements: In legal jurisdictions, certain GI is
given an official or legal status for certain types of transactions.
• Value due to network effects: Some GI has added value simply because it is used by a large
group of users (e.g., Google Maps and other online maps).
• Value due to the quality of an information resource: Typical quality issues such as the
completeness of the data, timeliness of the information, or the accuracy of the data can add
or detract from the value of the information.
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also shows the complexity of measuring and assessing this value, and the need for new approaches
and techniques to ease empirical analysis and gain a better understanding of the value of GI.
In the context of GI, the value chain relates to the series of value-adding activities to transform raw
geographic data into new products that are used by certain end users (Genovese et al. 2010). Although
there are slightly different descriptions of the various steps of the GI value chain, in general, the
essential steps in the value chain are: acquisition of raw data, the application of a data model, quality
control, and integration with other sources, presentation, and distribution (cf. Van Loenen and
Zevenbergen 2010; Genovese et al. 2010). In recent years, particular attention has been paid to
different steps between the process of distributing data and the actual end use of an end-product of
GI. In addition, after the publication of the data, value can be added to the data in many different
ways. Value can be added by making data from different sources easily accessible through repositories
and data portals, by building and selling tailored solutions using the data to end users or by using
geographic data to improve existing products and services delivered to an end user. In certain cases,
this end-product will be the first step of a next value chain (Welle Donker and van Loenen 2016).
Van Loenen and Zevenbergen (2010) apply the value chain approach to compare the process of
adding value to two important types of GI, road center lines and parcel data sets, in Europe and in
the U.S. Their research found significant differences in the GI characteristics of governments in
Europe and the United States at the time of the study: European public sector GI was more accurate,
more up-to-date, and more comprehensive. The geo-information value chain study indicated that
the private sector datasets available in the United States were more comparable with the European
public sector datasets with respect to adding value to framework datasets than the public sector
data in the United States public sector. Van Loenen and Zevenbergen concluded that value adding
is influenced by the different roles government and market play in the GI value chain.
Another interesting value chain approach is the approach of Attard et al. (2016) who consider the data
value chain as a part of a data lifecycle, which consists of different processes of value creation. They
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identify six value- adding processes (Figure 1): (1) data creation, (2) data harmonization, (3) data
publishing, (4) data interlinking, (5) data exploitation, and (6) data curation. Within each of these
processes, various value creation techniques can be used. The approach of Attard et al. (2016) clearly
demonstrates how different value-adding processes and techniques can be considered to be the value
creation of the organizational business model.
publishing
Figure 1: Value creation processes and techniques in the data value chain. (From Attard, J. et al., Value creation on open
government data, in Proceedings of the 49th Hawaii International Conference on System Sciences, IEEE, Kauai, HI, 2016, p.
10.)
There are also particular identifications and descriptions of the different roles within SDIs. Hjelmager
et al. (2008) identified six general roles of stakeholders in the context of SDIs: policy-makers, producers,
providers, brokers, value-added resellers (VAR), and end users. For each of these stakeholders, several
subtypes can be distinguished (Cooper et al. 2011):
1. Policymaker: A stakeholder who sets the policy pursued by an SDI and all its stakeholders.
Subtypes of policymakers are decision- makers, legislators, promoters, and secretariat.
2. Producer: A stakeholder who produces SDI data or services. Sub-roles are captors of raw data,
database administrators, passive producers and submitters, or revision notices.
3. Provider: A stakeholder who provides data or services, produced by others or itself, to users
through an SDI. Main subtypes are data providers and service providers, whereas within both
subtypes a distinction can be made between providers of their own data or services,
distributors who make the data and services of other producers available, and arbiters, who
test, validate, and sometimes also certify datasets or services.
4. Broker: A stakeholder who brings end users and providers together and assists in the
negotiation of contracts between them. They are specialized publishers and can maintain
metadata records on behalf of an owner of a product. Their functions include harvesting
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metadata from producers and providers, creating catalogs, and providing services based on
these catalogs. Subtypes are facilitators, finders, harvesters, catalogers, and negotiators.
5. Value-added reseller (VAR): A stakeholder who adds some new feature to an existing product
or group of products, and then makes it available as a new product. Two main subtypes are
publishers and aggregators/integrators.
6. End user: A stakeholder who uses the SDI for its intended purpose. Here, a distinction is made
between naive consumers and more advanced users.
The identification and description of different roles within the — geographic — information value chain
shows how many different actors are involved in this chain and contribute in many different ways to the
creation of value.
Ferro and Osella (2013) used a PSI-based value chain to identify different actors and positions within
the PSI-ecosystem. In their view, government organizations are mainly active in the chain and
ecosystem as data pro- viders and data users. Focusing on the roles and position of profit-oriented
actors, they distinguish four main types of businesses: (1) core reusers, enablers, (3) service
advertisers, and (4) advertising factories. Focusing on the revenue models of these actors, they
identified eight archetypes of business models for reusers of PSI: Premium, Freemium, Open Source
Like, Infrastructural Razor and Blades, Demand-oriented Platform, Supply-Oriented Platform, Free as
Branded Advertising, and White-Label development. Building further on the classification of Ferro
and Osella, Zeleti et al. (2016) see five categories of business models for open data providers:
• Indirect benefits: Release data to support the primary goal of the business.
• Cost savings: Aim to reduce the costs of opening and releasing data and/or increase the quality
of data through user participation.
• Parts of tools: Offer a first (incomplete) set of data at discount, but the complementary or
dependent data at a considerably higher price.
• Freemium: Provide limited data for free, and apply fees for additional requests for complete
higher quality data sets.
• Premium: Provide high quality and complete data at a certain cost.
Welle Donker and van Loenen (2016) researched the financial effects of open data policies for
geographic data providers in the public sector on their business model. Business models are also about
how organizations generate sufficient income to cover at least their operating costs. For government
data providers, the recent political and societal evolution toward releasing data as open data requires
a change in their existing business model. Welle Donker and Van Loenen (2016) demonstrated how
new business models for data providers in the public sector emerged as a result of the introduction
of open data.
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Although Welle Donker and Van Loenen (2016) and Zeleti et al. (2016) provide insight into different
business models for – geographic – data providers, other authors focused on the development of
business models for users and reusers (Janssen and Zuiderwijk 2014; Magalhaes et al. 2014; Attard et
al. 2015). Magalhaes et al. (2014) developed taxonomy of three open data users’ business model
archetypes: Enablers are businesses that provide customers with technologies, such as apps or
software programs, mainly built on or for the use of open government data. Facilitators support or
accelerate the access and exchange of data between the supply side and the user side by simplifying
and promoting the access of the open government data. Integrators refer to firms that integrate open
government data into their existing business models in order to further improve their existing offer.
Janssen and Zuiderwijk (2014) identified six atomic business models for the so-called infomediaries:
intermediaries connecting open data providers and users: single-purpose application developers,
interactive application developers, information aggregators, comparison models, open data
repositories, and service platforms. These atomic business models can be combined, for example, a
company may develop single-purpose applications in addition to interactive applications.
In this segment, we built further on the models identified and explored in the existing literature to
identify several business models in the geo-information model. In line with existing classifications, we
identify and describe three main categories of organizations: (1) providers, (2) enablers, and (3) end
users.
Data providers for indirect benefits make their geographic data available as open data for strategic
reasons. Geographic data are released because opening them supports the primary goal of the
organization (Zeleti et al. 2016). For instance, government organizations make their geographic data
available as open data to stimulate the development of value-adding products and services on top of
their data, or to improve transparency to their own activities and processes. In most cases, they will
not directly benefit (financially) by making their data available. The loss of direct revenue is
compensated through other funding, such as (extra) funding from budget-financing or income from
supplementary fee-based products and services. In addition, public sector data providers may have
access to legal instruments to, for example, levy charges for compulsory register transactions. To
ensure sustainable open data business models for public sector data providers, it is essential that there
are such guaranteed main sources of revenues (Welle Donker and Van Loenen 2016).
Data providers for cost savings believe opening up their geographic data will lead to significant
internal efficiency gains, such as increased data quality or staff reductions. A particular example of
this business model is organizations that aim to take advantage of the input from other parties to
improve the quality of their data products. As such, the value creation process goes further than
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publishing the data, in some cases the quality of the data is improved by cleaning the data through
contributions from other parties (Welle Donker and Van Loenen 2016). The capture of value is in
the efficiency gains in internal processes, and in improvements to the data quality.
Both data providers for indirect benefits and data providers for cost savings do not capture value
through direct revenues from making their data available. In both categories, the value created is
relatively limited, and is mainly found in publishing the data. In freemium and premium business
models for data providers, the value created is higher, whereas value is captured back by the provider
through direct revenues from selling data and data services. Freemium data providers offer a limited
version of the dataset free of charge, but apply fees for additional requests for complete and higher
quality data (Zeleti et al. 2016). The rationale behind this business model is that opening up some
datasets for free will lead to an increased demand for — and additional revenues from — high-quality
data. Additional value is created through better data maintenance or through the more sophisticated
data access services. Premium data providers do not offer any data for free, only high-quality,
complete, and up-to-date data are offered at a fee. In some cases, particular data needs of users are
fulfilled (e.g., 24/7 access) or additional support is guaranteed, which means additional value is created
and provided. Zeteli et al. (2016) clearly show how both freemium models and premium models
consists of many different subtypes. Although the freemium model is about offering limited data free
of charge but applying fees for additional requests, in practice, this can be organized in several
manners. For instance, fees may be charged for higher quality data, for the use of the data for
commercial purposes, or for changes made to the original product. The premium business model can
take many shapes; however, in all cases data are offered at a certain cost. The aim can be to meet
specific customer data needs or to guarantee support and additional services on top of the dataset.
Facilitators are organizations that provide support to data providers in making their data available and
to data users in getting access to available data. As such, a distinction can be made between supply
facilitators and access facilitators. Supply facilitators facilitate the process of providing and distributing
geographic data by providing technologies or services to data providers. In some cases, facilitators
also facilitate the management and curation of internal data sources of the data provider, and the
value creation process will not be limited to the publishing of data. Moreover, setting up data
visualization and analysis tools and services can create additional value to the data publishing
processes. An example of supply facilitators are companies that provide support to public
organizations in meeting the requirements laid down by SDI legislation and policies, such as creating
metadata, setting up web services, and harmonizing data according to predefined data specifications.
Facilitators not only provide value to data publishers through facilitating the publication of
geographic data, in a similar manner, they could also support data users in getting access to
geographic data from different sources. Access facilitators are different from supply facilitators
because they deliver value to users of data. Access facilitators offer users facilitated access to
available geographic data, which is realized through certain products and/or services. These
access facilitators do not operate on the request of or in collaboration with data providers, but
rather work together with particular users. Revenues are generated from selling products and/or
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services to users. In most cases, the work of access facilitators consists of structuring and
classifying available geographic data and facilitating access to these data through appropriate access
mechanisms. Aggregators can be regarded as a particular type of access facilitators, focusing on
pooling, combining and, also often, processing geographic data from different sources. In some
cases, facilitators enhance the data, which means they actually manipulate the data to create
additional value for the end user. This can be achieved through data harmonization, interlinking,
exploitation, and/or curation (Attard et al. 2016).
Service creators use geographic data to provide a service to certain target groups. Although in most
cases facilitators cooperate closely with data providers or data users, service creators work more
independently to develop their own products or services. The work of these creators strongly builds
on the geographic data of data providers, whereas their products or services are used by different
types of end users. It may be that service creators develop specific applications at the request of the
data providers. Service creators may also develop free applications as a calling card to demonstrate
their level of expertise in order to acquire fee-based orders. In some cases, even data provider
themselves create additional services on top of its data to facilitate the reuse of their data by end
users (Welle Donker and Van Loenen 2016). Service creators provide end users with more tailored
solutions on top of geographic data from one or more data providers (Magalhaes et al. 2014). It
should be noted that the category of service creators is very diverse, as many different types of
services can be created on top of geographic data. The revenue models and pricing mechanisms
employed for these services can also be very diverse. Examples of subtypes of the business model
of service creators are developers of single-purpose apps and developers of interactive apps (Janssen
and Zuiderwijk 2014).
An overview of the different geo-information business models and their value proposition, value
creation and value capture (cf. Osterwalder and Pigneur 2010) is presented in Table 1. The table
demonstrates the main differences between geo-information business models with regard to the
three main components of a business model: the value proposition, value creation and value capture.
6.5 Examples
To conclude this chapter, some examples of the different business models for geographic information
are shown in Boxes 1 through 3.
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Table 1: Different Geo-Information Business Models and Their Value Components
Data Providers Open data supporting Publishing data Improved outcomes of the
Data providers for strategic business organizations
indirect benefits objectives Lack of direct revenues
compensated through
other funding sources
Data Providers for cost- Availability of higher Publishing data Improved process and
savings quality data data
Cost savings
Freemium data Availability of limited data Publishing data Revenue from premium
providers for free and high-quality Data maintenance data and/or value-added
data and data services at services
More sophisticated data
some cost
access services
Premium data suppliers High-quality data at some Publishing data Revenue from all data and
cost Data maintenance advanced data services
Data meeting particular Data visualization services
user needs at some cost
Data analysis and
interlinking services
Enablers Facilitating in providing Publishing data Revenues from selling
Supply facilitators access to Harmonizing data products and/ or services
geographic data to data providers
Metadata creation
resources, through (different revenue and
(Basic) data visualization pricings models can be
provision of technologies
and/or services and analysis services adopted)
Access facilitators Facilitating in access to Structuring and classifying Revenues from selling
geographic data data products and/ or services
resources, through Aggregating data to data users (different
provision of technologies revenue and pricing
(Basic) data visualization
and/or services access to models can be adopted)
and analysis services
combined and/or
integrated data resources
Service creators Diversity of tailored Creating applications and Revenues from selling
solutions on top of other solutions on top of solutions to different kind
geographic data geographic data of end users
Revenues from
developing solutions at
the request of data
providers
End users No common value Data used within Improved business
Data users proposition, because of organizational processes processes and outcomes
diversity of public and and activities, value Revenues from main
private organizations that mainly created through products and services
can be considered as use of data in key delivered by the
users processes of the organization
organization
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BOX 1 DATA PROVIDER
The Spanish National Center of Geographic Information (CNIG) is an autonomous body under the
National Geographic Institute (IGN), whose main mission is to produce, develop, distribute, market,
and publish the data and services of the IGN. In 2014, the Center operated with a budget of
approximately EUR 6.6M and had about 100 employees. Several geospatial data products are
distributed by the CNIG: topographic database, images, land cover, raster maps, digital terrain
models (DTM), LiDAR data, administrative units, gazetteer data, geodetic points, and so on.
Before 2008, users had to pay a fee to get access to the data, whereas researchers and research
groups were given a 90% discount. In 2008, the business model of CNIG was changed with the
adoption of the Ministerial Order FOM/956/200815 of March 31, 2008, which determines the
policy for public dissemination of the GI generated by the IGN. In this Ministerial Order a distinction
was made between two categories of IGN products: the digital GI included in the National
Reference Geographic Equipment, which includes geodetic and leveling points, administrative units
and gazetteers, and all other geographic data, such as topographic data, land cover data, LiDAR
data, and so on. The first category of data, that is, the data in the National Reference Geographic
Equipment, was defined as open data, and thus made available for free for any purpose. The data
were licensed under a Creative Commons attribution license (CC-BY), which means the IGN should
be mentioned as the origin and owner of the data. The rest of the geospatial data was licensed
under a Creative Commons attribution-noncommercial-sharealike license (CC-BY-NC-SA) and thus
only openly available for noncommercial purposes.
As a result of this change in their business model, only a very small part of the CNIG budget came
from revenues from the sale of geospatial data products. In 2014, revenues from selling data
constituted only 8% of the total budget of the CNIG. The main sources of income were government
budget financing (65%) and revenues from contract-based service delivery (25%), in addition to
project funding (5%) and revenues from training and consultancy (2%). In 2015, the business
model of CNIG again changed with the adoption of a new Ministerial Order, under which all digital
datasets and web services of the IGN were defined as open data. All data could be viewed and
downloaded for free on Internet, under a license compatible with CC-BY 4.0. As a result, the CNIG
now disseminates GI in five different manners, of which paper maps are the only dissemination
channel users have to pay for. Other ways of dissemination are files that can be downloaded, web
applications, mobile applications, and web services. The most downloaded files of CNIG are the
1:25 000 National Topographic Map (3.6 million users) and the cartographic drafts (1.1 million
users).
14
BOX 2 SUPPLY FACILITATORS
Between 2012 and 2014, a study was undertaken of the geo-ICT sector in Europe in the context of
the SmeSpire project. The study provided an in-depth analysis of the diversity of geo-ICT companies
in Europe, with a particular focus on the involvement of these companies in the establishment of
national and regional SDIs. Data was collected on the activities, products and services, and
customers and business models of around 300 geo-ICT companies in Europe. The results of the
survey showed that the majority of these companies were users of GI and/or providers of
applications and related services to support the use of GI within organizations.
Approximately one-third of all companies were actively involved in the establishment of SDIs, and
could be considered as supply facilitators, that is, organizations providing products or services to
data providers to support them in making their geographic data available. Key activities undertaken
— or supported — by these organizations were data harmonization (26% of all companies), the
development of web map services (26%), and the establishment of metadata catalogs (21%). Other
products or services delivered by these supply facilitators were related to the creation and editing
of metadata, the setup of web feature services and the provision of training on SDI-related topics.
Although the majority of European geo-ICT companies strongly focused on customers within their
own country (mainly local and national public administrations), some examples exist of European
Geo-ICT providing support to the implementation of several national SDIs. The Dutch company
GeoCat contributes to the development of many national metadata catalog based on the open-
source software GeoNetwork. Several national spatial data infrastructures rely on the products and
services of the Finnish company Spatineo for monitoring and evaluating the performance of their
spatial web services. The German company wetransform provides professional support and
consulting for data harmonization with the HALE technology they have developed. The Italian SME
Epsilon Italia has created an INSPIRE Helpdesk to support public and private organizations in the
overall INSPIRE implementation process: from transformation and validation data and metadata to
the publication of web services. In recent years, similar supply facilitating companies have been
established throughout Europe.
Sources: Cipriano et al. (2013); Vancauwenberghe et al. (2014).
15
BOX 3 ACCESS FACILITATORS
Established in 2011 and located in the United Kingdom, GeoLytix is a good example of a recently
created SME, which focuses on facilitating and enabling access to geographic data. GeoLytix aims
to solve problems where location matters, such as location decision support and network
strategies. The company offers a wide range of geospatial data products, including maps, boundary
data, and points of interest. In addition to this, analysis, training, and consultancy services are
provided to support customers in developing new commercial insight.
A large number of the company geodata products and services are based on open data, from data
sources such as the Land Registry, the Department of Health, the Department of Education,
OpenStreet Maps, and several transport agencies. GeoLytix tries to differentiate itself from other
data analytics company by also creating and releasing open geo-datasets themselves. For example,
GeoLytix gathered and mapped data on more than 10,000 supermarkets in the United Kingdom and
published it as open data—allowing supermarkets to identify market competition and opportunities
for new stores, and developers to create new services for shoppers. Other open datasets released
by the company include processed census data, postal sector boundaries, retail places, and
workplace data.
The Open Data Institute considers GeoLytix as one of the best examples of U.K. companies using
open data. Several other good examples of open geodata companies can be found in existing
repositories of open data impact case studies and use examples such as the Open Data Impact Map
and Open Data 500. The Open Data Impact Map is a public database of organizations that use open
government data from around the world, and currently contains 1765 organizations from 96
companies. Around one-third of the organizations included the Open Data Impact Map are in the
data/information technology and geo- spatial mapping sectors, for which geospatial data are the
most used type of data. Many of these organizations provide data analysis and visualization services
using geospatial and mapping data to provide geospatial intelligence. The Open Data 500 is a study
of companies that use open government data to generate new business and develop new products
and services. The study is currently undertaken in six different countries. The OD 500 U.S. focusing
on open data companies in the United States identified around 30 open data companies that
consider themselves as geospatial/mapping companies. Both initiatives clearly demonstrate the
importance of geospatial data companies in the current open data ecosystem.
Sources: Open Data Institute (2015); The OD500 Global Network (2017); Open Data
for Development Network (2017).
7 Conclusion
This chapter has provided an overview of business models for GI based on an extensive literature
review. Starting from the observation that business models are all about proposing, creating, and
capturing value, an overview and discussion was provided of the existing literature on the value of
GI, of GI technologies and infrastructures, and of the GI sector. The notion of the GI value chain was
used to provide better understanding of how value can be created and added to geographic data by
turning these raw data into information products and services for end users. Public, private, and other
organizations can be active in different stages of this GI value chain, and can create and provide value
to actors in later stages of the chain. Although value is created through the production and creation
of data, this value will be further enhanced through the harmonization, publication, interlinking,
curation, and exploitation of the data. These many different ways of proposing, creating, and
capturing value from geographic data and information result in different GI business models. Although
data providers, data enablers, and data end users could be seen as three main categories of GI
16
business models, each of these categories consists of many different business models, as different
value propositions will exist, and value can be created and captured in several ways. In this chapter
on “Business Models for Geographic Information,” only a general introduction to the topic of GI
business models is given, which will be further explored in the forthcoming chapters.
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