Business models for open government data

Abstract

The commercial re-use of open government data is broadly expected to generate economic value. However, the practice and study of this trend is still in its infancy. In particular, the issue of value creation in the commercial re-use open government data remains largely unknown. This study aims to further understand how open government data is used to develop commercial products and services. Grounded in the comprehensive data obtained from a sample of 500 US firms that use open government data as part of their business model, we propose a taxonomy that encompasses three business model archetypes (enablers, facilitators, and integrators). Furthermore, we discuss the value proposition of each business model archetype, and subsequently present a framework that describes the value created in the context of the open government data ecosystem. Our framework can be used by both scholars and practitioners in the field of open government data to effectively frame the debate of the value created by the commercial re-use of open government data. Simultaneously, our work can be of benefit to entrepreneurs as it provides a systematic overview, as well as practical insights, of the growing use of open government data in the private sector.