HI6008 S1/2018 - Business Innovation Through Open Data Review

This literature review examines business innovation through the lens of open data, focusing on its potential to establish market niches, update innovation policies, ascertain social, economic, and environmental value, and increase the bandwidth of product portfolios. It discusses the utility of open data across various industries, highlighting its role in identifying market gaps, creating innovative products and services, and developing new business models. The review also touches upon the importance of government participation in data sharing and the challenges faced by startups in utilizing open data. Furthermore, it explores different types of open data, such as geospatial, transport, environmental, and demographic data, and delves into prospective business models and the 'Eight Archetypes' model for economic enhancement through open data methodologies. The document includes appendices illustrating the relationship between information system management and business processing, the role of data intelligence in server-side engine design, and the use of graphical data analysis tools for business chart development. Desklib offers a platform to access this and other solved assignments.

Business Innovation through Open Data

Contents
1. Introduction............................................................................................................................2
2. Projective Objective...............................................................................................................2
3. Project Scope..........................................................................................................................2
4. Literature Review...................................................................................................................2
5. Conclusion..............................................................................................................................2
6. Reference List........................................................................................................................2
7. Appendix................................................................................................................................2

1. Introduction
Open Data is information that is accessible to one and all. Everyone has access to the data,
the ability to use and share that data as per requirement. Data that is considered 'open', must
be present in a format accessible with licensing that permits all to have access to it and the
power to utilize or share it. Various companies across the globe are using the open data to
their advantage for creative innovation and services that quench the dearth that is pertaining.
The income generated is noteworthy and brings along with it not only economic, but also
social and environmental benefits (Jetzek, et al., 2014).
The utility and usage of open data is not restricted to the newer and freelancing companies or
the domain of start-ups. As a matter of fact, more than one-third of the companies that have
been known to incorporate and utilize open data are over a decade old. Majority of the open
data utility is found to be in the information and communication sector, however if seen into
the participation of industries, it covers everything from research to agriculture under its
domain (Davies and Perini, 2016). With 'Open innovations' the boundaries between
companies and their ecosystems will begin to diminish and practically become non-existent
after a stipulated span of time. Thus, the concept and implementation of open innovation has
the potency to develop and bring forth newer and lucrative business models.
2. Project Objective
These are the following objectives:
 To establish a market niche
 To update innovation policies based on data source
 To ascertain social, economic and environmental value
 To increase bandwidth of product portfolios
3. Project Scope
The scope of the project is to bring innovation to the business for the growth and
development, by exploring the open source data available for the business purpose.
4. Literature Review
Overview

The basic concepts of the business innovation are going to be elaborated and what the
relation between the importances of data exploration is and business innovation is discussed.
How the impact of data that is available in the open source form is important for the business
innovation in order to grow the business up to a certain level.
Innovation policies
A review on the policies of the business is an important factor for the consideration of the
demand the market. It is important for the commercialisation of the innovative ideas and to
evaluate the policies to boost the business innovation techniques. The study is based on the
monitoring of the existing policies with respect to the growth and demand of the business
innovation that must be required from time to time for the overall growth any business within
the corporate market.
The most important factor that companies are prying upon, with the access to open data, is
the usage of this data to exploit the divides and gaps previously present in the markets and
recognize business prospective, create new and innovative products and services and come up
with newer and better business models (Zuiderwijk, et al. 2014). Many companies take this
notch higher by publishing open data themselves, thus help in increasing the data supply and
ensuring to engage a greater number of customers. Government across the world have more
active in the participation of data sharing and exchange among the various private and public
forums. Government is also now started believing in the power of openness of the data and
sharing of data within the public and private sectors for the betterment and accurate strategy
building in the corporate or government sector.
Establishment of market niche
Every business in the initial stage acts as a niche in the existing market scenario. The growth
of the business is followed by the data exploration in order to explore the business
opportunities and it helps to get the idea about the demand and supply within the market. The
business data that is required for the framing of business strategies are growing at an
alarming rate (Cohen, et al., 2016). There is a growing power of sharing of the data among
the various marketers in order to bring change in the existing global economic and social
market trend. This has led to the evolution of the openness of the data in order to access and
re use among the various professionals for the growth and development of the business. More

over it gives a clear picture about the innovation that is required on the growth and
development of the business in order to sustain for a longer period of time within the market.
More number of innovations are always welcomed within any corporate sector. But these
innovations are important only when they are able play important role on the customer
purchasing ability. This means the innovations must be equally improve the customer’s
requirement. Start-ups and new entrepreneurship, is a critically acclaimed judge, a challenger,
and an innovator of the same in cases comprising open data. These are primary organizations
applying open data to realize newer products, innovations and services, bringing forth newer
and more unique business models and opportunities made available with open data, but there
always hovers the obstacles and challenges that one has to face while deciding to work with a
new resource (Gretzel, et al., 2015).
Ascertaining social, economic and environmental value
This is another strategy for the innovation using open data, per say. Start-ups applying open
data more often than not tend to combine the innovative strategies concerning the business
with an intention to raise and sustain a socio-economic and environmental impact. For
example, the organization Food Trade utilizes this open data to implement an allergen
compliance method. At the same time, this tool aspires to make the food supply systems more
sustainable in the market.
The idea is to form open intelligence mechanisms so that people are not just aware but are
inspires to participate in it. This always ensures better and a more responsible impact when
more number of people are enthusiastic and there is a continuous check at many levels,
directly or indirectly.
The open government data also known as OGD, plays an important role in the exchange of
data that are useful for the growth of the business and development of the entity either in the
government level or in the corporate sector (Gasco-Hernandez, et al., 2017). This concept has
spread around the world at an alarming rate across the globe, since t is very quickly adopted
by the various global business entities for the growth and development of their business.
Based on the data exploration and analysis on the data, it can preview a clear picture on the
requirement list of the business for their market growth. They could easily use the data and
take important steps in the customer attraction power so that they can sustain in the market
with new innovations that are complete based on the customer requirement.

Increasing bandwidth of product portfolios
Though the main focus of open data is bestowed on information and communication sector,
many micro, small, medium- sized enterprises are utilizing the open data by incorporating it
into industries diversely ranging from, research, education to agriculture. One such way is to
innovate on data products to market alongside consultation and other services, or expertise in
the handling of specific open datasets and developing a consultancy surrounding this. One
such example is that of GeoLytix which offers consultancy on location to retailers like
property developers, real estate investors, banks etc utilizing open data. They extend these
service from small retailers to established and renowned hotshots in the market too.
The formative idea of GeoLytix was to incorporate open data to render better quality of data
analytics to the client especially the small and medium scale retailers, who obviously do not
have the resource and ability to individually build these data sets and are thus dependent on
sourcing it from a trusted place (Brunswicker and Vanhaverbeke, 2015). This initiative is
very much a mutually benefiting one. While the business start-ups gets the data analytics
done without much hankering , the providers are successful in building up a successful client
rapport and a reputation which goes a long way to sustain them in the market. This also helps
contribute back to the ecosystem and accentuate the quality of open data.
There are other organizations like Shoot Hill who specialize primarily in data visualization
and online mapping. The open data was conceived by this organization when there arose a
request to integrate flood-prone data from the Environmental Agency in the web mediated
street maps available. This has not only been beneficial to the organization to establish and
lead to a successful business increment, but also, helped people have access to this
information which has been a blessing in disguise in times of threat and crisis pertaining to a
flood.
Types of open data utilized
1. Geospatial data
It is more commonly incorporated in the UK based companies. The most frequently cited
government based open data provider was Ordnance Survey while the non-government
source most frequently approached for open data was OpenStreetMap, totally a volunteer
participation an initiative of the map of the world which was openly licensed.
2. Transport Data

It is another popular means of utlilizing open data. This includes government based
information that is acquired by the Transport department. This includes attributes like
Highway traffic control, CO^2 emission status, pollution markers etc. The non-government
transport data is also obtained which focuses on other specific environmental and socio-
economic factors, like availability of transport facilities at a given location etcetera.
3. Environmental Data
This is often encased by data companies to utilize, analyze, spread awareness and empower
people with objectives to save the environment or create less havoc to the ecosystem. The
government sources of open data that are commonly looked into for this purpose include the
Environmental agencies, forest departments etc and the weather or Met office.
4. Demographic Data
This is particularly important for companies whose products and services are dependent on
the demographic variable, the age-wise distribution of population or the gender specific
services. This can be obtained from governmental open data sources like the census, postcode
and claimant count data etc.
Prospective business models with open data
Management of Information system is an important factor for the reliability of the strategies
based on the data collected for the business purpose. There is a strong relation between the
information system management and the business processing system. (Refer Appendix 1)
There are certain important business models that are important to consider for the business
system. The model respiratory explains how the data intelligence plays he crucial role in the
designing of server side engine. The data warehouse is dealt with the data analyst using an
expert tool and collected via other resources and helps in the development of business
applications. The model is an important factor to consider the various business application
development factors such as risk assessment, churn management, sales forecasting, scoring,
management of business campaign and management of business optimisation. (Refer
Appendix 2)
Data source plays an important role in the framing and developing of business charts using
the graphical data analysis. Using core statistical data tool, huge amount of data could be
able to handles within a very short span of time and provide the result of the graphical data

analysis using various tools like SQL, OLAP and data mining techniques. (Refer Appendix
3)
Eight Archetypes model
The economic potential to achieve via open data methodologies is huge and it has been
realized time and again through various initiatives and implementations. Several dignitaries
and authors have thus proposed business models on this economic enhancement. The eight
Archetypes business model is specifically based upon the factor of re-using open data. The
authors of this specific model, differentiate this using two axes, the positioning of the
company in the hierarchy comprising the value ( front podium v/v behind the scenes) and the
strategically put forward vision ( the staple bread and butter v/s the extra affinities and
attraction tools).
The major 5 goals and objectives that can be achieved using the open data technology to
innovative business strategies are deliverance of individualistic and personal touch to the
services and products, easier resolution to problems that may have seemed to be very
cumbersome otherwise, setting up benchmarks for specific solutions and referring to them for
future purposes, expanding business with newer and better offerings, innovations and
continuous modifications as per feedbacks, and always keeping up a continuous process of
upgrading with time and changes in trends and demand, offering unique and innovative ideas.
Being a source provider for business models
There have been many studies conducted on the open data utilization and its impact and
benefits, or the challenges faced in the business prospective. The studies have also focused on
the extent , to which open data has been exploited and re-used for the betterment of both the
recipient and the provider. There has been a keen scrutiny on the industries incorporating the
facility and its outcomes (Mandl, et al., 2015). The results have been quite promising and
surprising at the same time. It is not just the Information Technology sector and the
communication sector seizing this opportunity, but industries like agriculture, commerce,
energy ,judiciary , education, health and wellness are few of the departments amongst many
others to have incorporated it successfully.
In education, it has improved instructions, provided better fitting of students to the programs,
or other internship opportunities and employments, transparency in monetary transactions
related to education etc.

In the consumer products and retailing, open data has helped deliver better services in terms
of variety, manufacturing abilities, analysing trends and demands, efficient store operations,
managing sales and marketing etc.
In consumer necessities like electricity, oil and gas value chains, there has been optimization
of the system with respect to demand and supply, better communication channels, easier
resolution of major issues, identifying problem areas.
The health care sector has also been affected and has utilized this method to reach out to
people for basics like the right and healthier art of living, making available the right care,
right provider at the right value.
5. Conclusion
There are several advantages of utilizing open data for business innovation, needless to say,
economy and finance being the prime centre of attraction of it all. There are other mutual
benefits to the recipient and the service providers, and an overall ecological and
environmental benefit that is a rising area of concern today. Like any other resource, this one
comes with its own package of pros and cons and similarly the art of reaping benefits and
overcoming the hindrances in the procedure is something that'll only get better with time.

6. Reference List
Brunswicker, S. and Vanhaverbeke, W., 2015. Open innovation in small and medium‐sized
enterprises (SMEs): External knowledge sourcing strategies and internal organizational
facilitators. Journal of Small Business Management, 53(4), pp.1241-1263.
Cohen, B., Almirall, E. and Chesbrough, H., 2016. The city as a lab: Open innovation meets
the collaborative economy. California Management Review, 59(1), pp.5-13.
Davies, T. and Perini, F., 2016. Researching the emerging impacts of open data: revisiting the
ODDC conceptual framework. The Journal of Community Informatics, 12(2).
Gasco-Hernandez, M., Sandoval-Almazan, R. and Gil-Garcia, J.R., 2017, September. Open
Innovation and Co-creation in the Public Sector: Understanding the Role of Intermediaries.
In International Conference on Electronic Participation (pp. 140-148). Springer, Cham.
Gretzel, U., Sigala, M., Xiang, Z. and Koo, C., 2015. Smart tourism: foundations and
developments. Electronic Markets, 25(3), pp.179-188.
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.
Mandl, K.D., Mandel, J.C. and Kohane, I.S., 2015. Driving innovation in health systems
through an apps-based information economy. Cell systems, 1(1), pp.8-13.
Zuiderwijk, A., Helbig, N., Gil-García, J.R. and Janssen, M., 2014. Special Issue on
Innovation through Open Data: Guest Editors' Introduction. Journal of theoretical and
applied electronic commerce research, 9(2), pp.i-xiii.

7. Appendices
Appendix 1: Role of MIS in the Business processing system

Appendix 2: Business model for Business Application

Appendix 3: Data Visualisation for Business Reports