A ‘quick’ guide to business modeling and how open efforts can boost the Belgian start up scene.

Making Money with

@PJPauwels & @tthoeye

Thimo Thoeye@tthoeye

Pieter-Jan Pauwels@PJPauwels

Open Data?Open definition!

“Open data and content can be freely used, modified, and shared byanyone for any purpose”

-- opendefinition.org

Let’s break it down

open access basically means you can download it from the internet, for free, without registration, …

open formats mean you can read the data in any free text editor (sublime or notepad)

open license means you redistribute and make money using the data

Source: http://ec.europa.eu/commission_2010-2014/kroes/en/blog/opendata

Source: http://ec.europa.eu/commission_2010-2014/kroes/en/blog/opendata

€ 70.000.000.000ORBEF 2.823.800.000.000like my granny would convert it to

Source: http://www.mckinsey.com/insights/business_technology/open_data_unlocking_innovation_and_performance_with_liquid_information

CC-BY Fufu Wolf

1. Government process optimisation and cost reduction 2. New economic opportunities

1. More transparent government

2. Improved public services

3. Economic and social value

Objectives of open data

CC-BY - Sebastiaan ter Burg

In almost all the application competitions, mostly innovative applications are rewarded.

But on the other hand, the result shows that the most innovative applications won’t necessarily be the successful one in future business practice.

On one hand, a lot of creativity and know-how exists in Europe to develop smart applications based on open data sets.

On the other hand, solid business models to bring these apps to the market and make them viable are often lacking.

- Raf Buyle

How does support ‘turning data into business’?

- European support network of organisation and individuals

- Tools for data based business

- 19 partners in 10 different countries

Do you have:

- A Start-Up using Open Data as a resource? - An idea for a start-up using Open data as a resource? - Ambition to start an Open Source / Open Data Start Up

And you want to become a participant during the international business lounge.

You need:

- To win the online competition on http://www.appsforeurope.eu/

- Win one of the local business lounges in Europe.

5 minute pitch5 minute Q&A

5 Jurymembers± 5 teams

Even smart citizens can use a good headstart.

Why do we want a Belgian (team) to win (again)?

Open Data reuse and economic

value

Open Data Publishing

CC-BY Images Money

CC-BY-SA Bambosz

We scratch but a small surface in the galaxy of business models

- Afuah and Tucci (2000)

Business model details how a firm captures monetary value now and how it plans to do so in the long-term

Business models are the relationships between different participants in a commercial venture, the benefits and costs to each and the flows of revenue.

-- Electronic Commerce: B2C strategies and models”, Elliot (2002)

- Electronic Commerce: B2C strategies and models”, Elliot (2002)

Regardless of complexity Profits = revenue – costs

CC-BY-SA Bambosz

- Electronic Commerce: B2C strategies and models”, Elliot (2002)

Regardless of complexity

Profits = revenue – costs

CC-BY Allan Ajifo

CC-BY Images Money

The big three

1. Freemium

Free Amount 1 Amount 2 Amount 3

Feature 1 x x x x

Feature 2 x x x

Feature 3 x x x

Feature 4 x x

Feature 5 x

Semi

Open

Source

Friendly

Freemium Features could be...- availability of different machine-readable formats

- unconstrained numbers of API calls

- more sophisticated querying

- access to data dumps rather than through an API (or vice

versa)

- provision of feeds of changes to the data

- enhancement of the data with additional information

- early access to data

And freemium is flexible

Subscription model“Every month I pay 10 dollars”

One-time-payment model“I pay 10 dollars for access”

Usage modelPaying per use or # API calls

1. Freemium

Subscription model“Every month I pay 10 dollars”

One-time-payment model“I pay 10 dollars for access”

Usage modelPaying per use or # API calls

www.enigma.io

The Climate Corporation

www.climate.com

CC-BY Images Money

2. Support and Services (SLA) Model

Core=

Open Source

Support Integrations Hosted service Custom add-ons ...

Paid

Open

Source

Friendly

2. Support and Services (SLA) Model

Open Bank Project

2. Support and Services (SLA) Model

3. Marketplace model

Hosts / Merchants / Suppliers

End-usersYOU

3. Marketplace model

3. Marketplace model

CC-BY Images Money

Other models and Examples

Crowdsourcing Data - Network Model

Application Developer

Using crowdsourcing data to create your desired application

Community

Can use data without restrictions and expensive fees.

Release data for

free

EXTRA

Multi product model

Product 1

Open

Product 2

Product 3 Closed

EXTRA

Freelance / Agency model

GovernmentsCompanies

HackathonsAgency

working with

participating in

EXTRA

‘White label’-model

GovernmentsCompanies

Application using open data

Sell it to

EXTRA

Organisations

Source: Opendata500.com

CC-BY-SA AMBERBUNTING

And you should have a nice head start at the Local Business Lounge next month.

5 minute business pitch - your idea or business- your product(s)- value

And now a real life example

And now a real life example

Thanks for listening!Now let us act