Analyzing Business Innovation Strategies with Open Data Research

This report examines the role of open data in driving business innovation. It begins with an introduction to open data and its increasing use in the business environment, highlighting its impact on efficiency and performance. The project objective is to analyze open data's contribution to business enh...Read More

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Business Innovation Through Open Data

Business Innovation Through Open Data 1
Table of Contents
Introduction................................................................................................................................2
Project objective.........................................................................................................................3
Project scope..............................................................................................................................4
Literature review........................................................................................................................5
Conclusion................................................................................................................................11
References................................................................................................................................12

Business Innovation Through Open Data 2
Introduction
This research program has been conducted on the topic “Business Innovation through Open
Data”. Open data is widely used by businesses for enhancing the performance of the business.
Increasing use of open data in the business environment has changed the manner in which
business uses data. The efficiency of business gets improved with the use of open data. This
research will discuss the concept of open data for developing knowledge regarding this
concept. It will also discuss the use of open data by business for enhancing its performance.

Business Innovation Through Open Data 3
Project objective
Project objective has been decided for guiding the efforts of the research program in the right
direction. This research program has been executed with a motive to analyze the role of open
data, develop an understanding of open data and its contribution to enhancing the
performance of the business. Business is using open data for making changes and adopting
the changes taking place in the business environment.

Business Innovation Through Open Data 4
Project scope
The scope defines the aspects which will be covered in this research project for developing a
better understanding of these aspects. This project will cover the discussion regarding the
concept of open data and increasing use of open data by business. The discussion will be
made reading the open data forming a base for business innovation. Businesses are using
open data as it has contributed towards the growth of the business.

Business Innovation Through Open Data 5
Literature review
According to McKinsey & Company (2013), Open data can be explained as the data which is
freely available to everyone and can be used for enhancing the performance. There is no
restriction on the use or use of the open data available for the use of the public. Open data is
being promoted in this dynamic business environment for the purpose of promoting
transparency. Open data has provided support to the business operations by providing
valuable information to the business. The impact of open data can be seen in the growth of
the business as well as enhancement in the efficiency level of the business. Open data has
created an impact on the economy, society, and performance of the business. Open data has
provided an open source, open content and open access to the business which has helped in
gaining better and deeper knowledge and making decisions in a decentralized manner. The
impact of open data can be seen on participation, innovation, self-empowerment,
transparency and democratic control, improved products or development of new products and
better decision making (Lakomaa & Kallberg, 2013).
Open data has been made available free and without any restrictions for promoting
transparency, efficiency, and innovation. Sharing of the data has reduced the wastage of
resources by avoiding duplication of efforts and resources. Use of open data by the business
has resulted in providing new opportunities to the business. Value of the information has
increased due to open data and it can be utilized by the business for implementing
innovations. Different companies are using open data with a motive to develop innovative
products for the fulfillment of the gaps identified in the market, generating better results and
increase the profits (Zuiderwijk & Janssen, 2014). Open data is being used by the companies
with a motive to gain the advantage of the gaps identified in the market. These gaps help in
identification of the opportunities available in the market and result in innovative products or

Business Innovation Through Open Data 6
services produced by the business. Most important aspects of open data are its free
availability for all (Shadbolt, et. al., 2012). For example, OpenCorporates is the biggest open
database of company information of the world. It has incorporated the data of more than 98
million companies in numerous jurisdictions. Detail of every corporate entity can be retrieved
from the open data of OpenCorporates (Jee, 2016).
In the words of Juell-Skielse, et. al. (2014), different sectors of the business environment are
using open data for bringing innovations in the products or services or in the manner business
is operating. These different sectors include education sector, business and legal services,
food and agriculture, healthcare, governance, energy, finance and investment, transportation
and housing and real estate. With the improvement in the open data available has helped in
providing better opportunities to the business. Open data has formed a base for the growth,
development, and innovation in the different economies of the world. Business needs
information related to the customers, competitors, business environment, different elements
present in the external environment of the business, suppliers, and society. Open data has
enabled the business to gain information related to all these aspects for enhancing the
performance by adopting an innovation. Open data has enhanced the usability of the data for
the business (Jetzek, et. al., 2014). For example, FoodTrade which is an online platform used
for bringing more than 1600 local food producers for the purpose of the map down the supply
chain and enhance transparency with the customers in the food sector. Food Standards
Agency data has been used by FoodTrade for ensuring that the menus are complying with the
rules. This has acted as an innovation in the sector (Jee, 2016).
According to The World Bank (2014), use of open data has enhanced the growth rate of
different industries and bringing innovation in the companies operating in the different
industries. Use of open data has contributed towards the potential economic value, providing
benefit to the customers of the business, enhances the opportunities available to the business,

Business Innovation Through Open Data 7
enhances the accuracy of the information and brings innovation. Businesses are using
government open data and use of this government open data helps in identification of the
opportunities and threats. Open data has increased the efficiency level and reduction in the
cost which has acted as an innovation process bringing innovation in the business. For
example, UPS has used open data for deciding routes for the drivers of the company. Open
data has acted as a driven force for the innovation and creation in the business. Other
advantages of using open data to business include enhancing the reputation of the business,
reaching customers in an effective manner, customising the products or services as per the
needs or expectations of the customers and better decision making (Gayler, 2012).
Different views have been presented by different authors on the use of open data. The
government of different countries is providing open data to the companies to encourage
innovations in the business. Data is an important element for business which shapes their
performance and chances of growth and success. Innovations take place from the gaps
present in the market. Information needs to be gathered related to the market for analyzing
the reasons behind the gap (Omidyar, 2014). These reasons enhance the chances of
innovations in the business. New ideas are created for meeting the expectations of the
customers which gives birth to innovation. Different types of innovations take place due to
the free availability of information. On the other hand, open data has created an adverse
impact on the confidentiality of the business. It has also affected the reputation of the
business in a negative manner. Several risks can be faced by the business as their confidential
data can be seen by others and use by others for their interest (Castro & Korte, 2015).
As per the report of Deloitte (2012), a new start is offered by open data in the form of
economic reform and enhanced productivity. The availability of wide data free without any
restriction results in use and reuse of the information for implementing changes in the
business. Quality of the products or services can be increased with the use of information

Business Innovation Through Open Data 8
available. Open data has created different elements of the economy in a positive manner. It
has promoted trade, enhanced employment level, reduction in corruption activities,
promoting the growth of private sector, enhancement in the investment, financial regulations
and economic growth. On the contrary, there are few complexities available to the open data
innovations which can adversely affect the business (Asia News Monitor, 2014). These
complexities include changing aspects such as legal environment, technology, and trend.
Business must be capable of using the open data available in an effective manner for
innovations. The concept of open data can create harm to the confidentiality of the business
which can result in financial loss or affect the reputation of the business. Use of the open data
cannot be predicted by anyone as the use depends on the manner in which individual or
business uses the information (ENPNewswire, 2014).
Research programs are conducted by the businesses for collecting data related to the market
or the needs and requirements of the customers. This need of business is met by open data
which is available to business and enhances the performance of the business. Open data has
reduced the efforts of business for conducting research for the analysis of the trend of the
market and collection of information related to the competitors. Innovation is an important
aspect of business which enhances the manner business is operating as well as enhances the
customer base of the business. Innovations and improvement in the existing strategies are the
objectives of the business which can be easily attained with the help of open data (Janssen &
Zuiderwijk, 2014). Companies operating at international level require data related to the
international market they are operating in. This need of the business is fulfilled with the help
of open data. It has strengthened the capabilities of the business. For example, Spend
Network is providing services of data analysis for the forecasting of pricing and timelines of
the business. It has helped in making the business understand the trends of the market and
identify the opportunities for gaining the advantage of these opportunities (Jee, 2016).

Business Innovation Through Open Data 9
Open data can be used by the businesses for analyzing their own performance and satisfaction
level among the customers of the company. Business can innovate the products on the basis
of the information collected. Open data can be used by the businesses for the purpose of
identification of the potential market for the business. Business requires information for
making decisions regarding the operations of the business. Access to open data has provided
new opportunities to the business. Open data has helped in the analysis of the need for new
products which can be produced by the business for bringing innovation (Lakomaa &
Kallberg, 2013). It has removed barriers for small businesses as it is difficult for small
business to conduct research activities for the collection of data related to the changing
aspects of the business environment. Entry procedure for the small business entering the
market has become easy due to the open data. For example, an application Cropp was
developed with a motive to alert the farmers regarding the status of the crops grown on their
fields (Jee, 2016).
Information is the most important asset for an organization as this information helps in the
implementation of changes and innovations in the product. Open data is a store of
information related to different aspects of the business environment. Open data has provided
support to the innovative services and applications. For example, transportation related data is
openly available which has been used by developers for the purpose of developing innovative
services. Google, Openstreetmaps, and Uber have used open data for providing innovative
services to the customers (Jee, 2016). Government is providing support by encouraging the
use of open data for developing innovative products or services. Open data has created an
impact on the innovation process in numerous ways. Different opportunities are provided by
open data to business and these opportunities include delivering better services at a low cost,
stimulation of the growth of business as well as for economy, providing business insights for

Business Innovation Through Open Data 10
comparative analysis, engaging the industry and customers and providing new and innovative
services (Smith, et. al., 2014).
Business innovations are the result of problems or issues faced by the customers. Business
analyses the problems of the customers with the help of open data for implementing the
decision of innovation. Ideas for the new products are based on information gathered with the
help of open data. Initiatives have been taken by the government for providing benefit to the
business and people. Open data is acting as a catalyst for innovations. Businesses are capable
of gathering data related to the potential markets. Open data has promoted transparency
which has helped in a reduction in the corruption (Katzner, 2015). Customers are more aware
of the information related to business. Improvement in the services offered to the customers
is another advantage of using open data as it has provided information of the business.
Innovation and economic value are the main targets of open data. Data can be collected for
the identification of the issues which are present in the business environment. It is a less
expensive way of collecting data related to the business and different aspects of the business.
Market research activities incur a huge cost for business as well as consume time and efforts
(Janssen & Zuiderwijk, 2014).
The contribution of open data can be seen in the form of increased productivity and capability
of the business. More feasible decisions are taken by the business by using the information
available on the open data network. A check is kept on the quality, authenticity, and
reliability of the information which enhances the performance of the business. There are key
five principles of open data which has promoted innovation and transparency. These five
principles include providing high-quality data and in huge quantity, ensuring the usability of
data by everyone, releasing data for innovations, offering open data and ensuring reusability
of the data (Shadbolt, et. al., 2012).

Business Innovation Through Open Data 11
Conclusion
Thus, from the above discussion, it can be summarised that open data has played a vital role
for the businesses as it has enhanced the chances of growth as well as helped in identification
of the gaps in the market. Open data has made a wide range of information available to the
businesses which have provided an opportunity for the businesses to attain benefit from the
opportunity. Innovations are taking place in the business environment due to the
identification of the gaps in the market.

Business Innovation Through Open Data 12
References
Asia News Monitor, 2014, “New Open Data Project to Support Business Innovation and
Transparency in the Caribbean”, Asia News Monitor.
Castro, D. & Korte, T., 2015, “Open Data in the G8: A review of progress on the open data
charter”, Center for Data Innovation.
Deloitte, 2012, “19 innovative UK companies using open data | UK open data businesses”,
Deloitte.
ENPNewswire, 2014, “WB- New Open Data Project to Support Business Innovation and
Transparency in the Caribbean”, ENP Newswire.
Gayler, M., 2012, “Open Data, Open Innovation and the Cloud”, Open Government Data
Initiative.
Janssen, M. & Zuiderwijk, A., 2014, “Infomediary Business Models for Connecting Open
Data Providers and Users”, Social Science Computer Review, 32(5), pp.694–711.
Jee, C., 2016, “19 innovative UK companies using open data | UK open data businesses”,
Techworld.
Jetzek, T., Avital, M. & Andersen, N. B., 2014, “Data-Driven Innovation through Open
Government Data”, Journal of theoretical and applied electronic commerce research, Vol. 9,
No. 2.
Juell-Skielse, G., Hjalmarsson, A., Juell-Skielse, E., Johannesson, P., & Rudmark, D., 2014,
“Contests as innovation intermediaries in open data markets”, Information Polity, 19(3, 4),
247–262
Katzner, T., 2015, “Do Open Access Data Policies Inhibit Innovation?”, BioScience, 65(11),
pp.1037–1038.

Business Innovation Through Open Data 13
Lakomaa, E. & Kallberg, J., 2013, “Open Data as a Foundation for Innovation: The Enabling
Effect of Free Public Sector Information for Entrepreneurs”, IEEE.
Lakomaa, E. & Kallberg, J., 2013, “Open Data as a Foundation for Innovation: The Enabling
Effect of Free Public Sector Information for Entrepreneurs”, IEEE, 1, pp.558–563.
McKinsey & Company, 2013, “Open data: Unlocking innovation and performance with
liquid information”, McKinsey & Company.
Omidyar, 2014, “Open for Business: How Open Data Can Help Achieve the G20 Growth
Target”, Omidyar Network.
Shadbolt, N., O’Hara, K., Berners-Lee, T., Gibbins, N., Glaser, H., Hall, W. & Schraefel, M.,
2012, “Linked open government data. IEEE Intelligent Systems 27(3), 16–24.
Smith, M.L., Reilly, K.M.A. & Benkler, Y., 2014, “Open Development Networked
Innovations in International Development”, Cambridge: The MIT Press.
The World Bank, 2014, “New Open Data Project to Support Business Innovation and
Transparency in the Caribbean”, The World Bank.
Zuiderwijk, A. & Janssen, M., 2014, “The negative effects of open government data –
Investiating the dark side of open data”, Proceedings of the 15th Annual International
Conference on Digital Government Research.