DATA
DISTRIBUTORS

Data distributors make third-party data available to third parties and thereby bring together data holders and data users to capture and extract value from data. Data holders can make their data available to third parties, which may be data users, through data distributors or directly. Data distributors typically use data distribution technologies and services provided by solution providers. Moreover, it is not unlikely that they also use technologies and services focusing on data processing or aggregation.

ARTEFACTS

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DATA

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TOOLS
TECH

Organizational assets are those resources from which future economic benefit is expected. Data is such an asset of the data economy’s actors. Data can be described along six dimensions, which are source, content, format, terms of use, purpose and position in the data value chain. Data has features that evoke certain behaviour from the data economy’s actors but it usually does not have purposes of its own or powers of reproduction.

  • Content

    Concerning content, three different types of data were identified. Actor data includes person data (e.g., address, medical details, transactions, communications) and organisation data (e.g., address, business facts, position, transactions, communications). Device/service data contains among others usage, configuration and status data. Environment data refers, for instance, to nature (e.g., trees in a forest), public infrastructure (e.g., streets in a city) or economic data.

  • Format

    With respect to the format of data, a very general differentiation is made between structured and unstructured data. However, a more thorough understanding of the format is essential to allow the exploitation of data. The interpretation of data is only possible for an entity if it is known how the data was encoded for storage or transmission. XML, CSV, JSON and RDF are data formats often used to exchange data.

  • Terms of use

    Terms of use describe under what circumstances data can be used. Open data is freely available to everyone to use and republish without restrictions from copyright, patens of other mechanisms of control – i.e., there are no specific terms of use. Use of data, however, may be restricted by making data available for charge or restricting access to registered members or customers. The terms of use of data made available to third parties are determined by the respective data holder’s or distributor’s business strategy and model.

  • Prupose

    Purpose refers to the main goal for which data is intended to be used. Audience data is an example for data described with respect to its purpose dimension. In terms of content, audience data is actor or device/service data. Its purpose is to provide insight into the audience of some activity.

  • Position in the data value chain

    The position in the value chain of data indicates what has happened with the data so far as well as what are likely steps to follow to exploit the data. Terms used to describe data based on this dimension include raw data, for instance.

Technologies are key assets of data economy’s actors as they are the resources from which future economic benefit is expected. Technologies contribute to the economic value generation by exploiting the potentials of the data available. Tools are considered as compositions of technologies that serve a specific purpose.

  • Purpose

    The purpose identifies the main goal of a technology. For example, data storage solutions usually help to preserve and manage data and its lifecycle. Other purposes include to provide security (e.g., AES, TLS) or to allow data exchange (e.g., JSON, XML) or notifications (push, pull solutions). Data economy actors usually combine multiple technologies.

  • Openness

    Openness describes the possibility to access and extend technologies. Technologies may be fully proprietary, commercial and closed, or follow an open-source approach or be positioned somewhere in between those extremes.

  • Usage

    Usage reflects the distribution of technologies, which is often represented by the number of users. Technologies may be standardised but still barely used in practice, while others may be de-facto standards. Examples are XML and JSON, which are used by most data economy actors these days and thus have a large usage within the market.

  • Simplicity

    Although simplicity is hard to measure and partially subjective, it has been found that technologies that are usable in an easy way are typically used more often. For example, a major success factor of REST services has been their simplicity in contrast with other formats.

  • Trend factor

    Trends and new approaches play a key role in the data economy. Modern and trendy technologies are often quickly taken up and used in contrast to old and sometimes more mature technologies. In data storage, for instance, NoSQL solutions such as MongoDB have gained popularity over traditional storages over the last couple of years. However, trends can also be identified in newer fields such as virtualisation.

STRATEGIES

Strategies describe how agents react to their surroundings and pursue goals. They include deliberate choice but also patterns of response that pursue goals with little or no deliberation. Assessment of the success of own actions and the actions and success of other actors influence the change of strategies. Processes of reproduction and copying play an important role in the context of strategies. In the context of the data economy, strategies of actors are closely related to their business models.

  • Data acquisition

    Actors focusing on data acquisition typically address very specific data in terms of content and their value propositions emphasise the access to this data. They publish raw data or interpretations of data, provide better access to or search engines for data or run platforms for data exchange. Demand-oriented pricing strategies are typically used for revenue generation, where the fee is sometimes linked to specific indicators. It also happens that data holders must pay actors to make their data available.

  • Data manipulation

    Actors using data manipulation as core of their business model typically provide technologies or services for generating, analysing, visualising, managing or enriching data. In terms of value proposition, they predominately stress the performance, design or usability of their offers. With respect to revenue generation, subscription fees are typically charged. Implementing a premium model is quite common, while some actors implement a freemium model.

  • Data exploitation

    Actors focusing on data exploitation do not only manipulate third-party data or provide technologies to do so but also exploit data themselves. They typically use data to create new products and services, improve existing ones, add data to non-data products or produce market analyses, surveys, plans and reports. Most actors charge their customers subscription fees. Actors usually highlight the newness of their offers, their experience in the field or performance aspects in their value proposition.

  • Technology provision

    Actors using technology provision as basis of their business model typically provide technology-based services (e.g., a cloud-based analytics service) or technologies (e.g., a NoSQL storage solution). For technology-based services, subscription fees are typically charged, while in case of technology the products themselves are often made available free of charge and fee-based services are offered related to them. Nevertheless, there are also quite some technologies or tools that need to be licensed or bought.

  • Consultation

    Actors focusing on consultation typically provide consulting on how to benefit from data, how to build a successful data-based business model or how to use data technology, data-related trainings or courses, or data skill management. The value propositions are usually focused on the experience the respective actor has. Consulting companies typically charge a fee for their services. The amount of the fee is usually fixed individually.

Brokerage fee
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ATTITUDE

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SOCIO-ECONOMIC

  • Data distributors tend to benefit from defining the lifecycle of data

    An important quality criteria of data is its timeliness (in the big data context: volatility). It describes the length of time until the data is available to users. If a data is outdated it can still be used for history analysis but not for decision making. Timeliness is affected by how fast the ICT updates the data after an event happened and in which interval it makes updates. Providing a “best before date” or a best before condition to a data set would help data users to assess the quality of the data.

  • Data distributors tend to benefit from the use of data quality certificates

    The use and reuse of data could be increased if certifications provided guarantee for data consumers regarding the quality of the data, which could lead to trust regarding the source and platforms, the data suppliers and the quality of the data itself. Research organisations need to meet several ISO standards regarding data management and security but other organisations don’t. Establishing trust regarding a company or its data-based product by using a certified product label could supplement it.

  • Data distributors tend to be increasingly aware of security and privacy risks

    The lack of trust in big data technologies and data reuse is often linked to data protection and privacy related fears. Making all citizens aware of privacy and security rules would fill this gap but is not realistic. However, making companies that earn money with data-based services responsible for security and privacy might be a working solution. A seal of quality could offer a guarantee for privacy and protection of data. This may, however, increase the hesitation of companies to share data.

  • Data distributors tend to use customer-centric pricing

    Purchase decisions are typically made through an assessment of a myriad of factors balancing perceptions of value components against price in a subtle, complex, and often sub-conscious decision matrix. This equally applies for data processors, users, holders and distributors. In the data economy, customer-centric pricing leads, for instance, to the implementation of the premium model as well as to dual pricing, which are both used due to the difficulty to determine a fair price for data.

  • Data distributors tend to take specific measures to establish trust

    Trust should not be underestimated as a social factor affecting data reuse. Certifications, stamps or seals might promote the trustworthiness of data. In Europe, the French DPA Commission has established a procedure for certifying industrial processes to make it easier to access and use data without impinging on civil liberties. Such a certification system is supposed to help data processors, users and distributors to achieve a common understanding of the data and thereby fostering trust.

  • Data distributors tend to restrict their activities to national markets

    The focus of actors on national markets is the result of lacking integration of the European market, despite of all the serious efforts made by EU policy makers. There are many differences between EU Member States that affect the general opportunities and dangers relevant for the day-to-day operations of data economy actors. Legal, socio-economic and technological differences increase the costs and complexity for an actor that is active on more than one European national market.

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ENVIRONMENT

STRATEGIES

CONTACT

Project coordinator

Mr Daniel Bachlechner

Fraunhofer ISI

E-mail: daniel.bachlechner@isi.fraunhofer.de

 

Communication leader and liaison manager

Ms Klara Süveges-Heilingbrunner

ICT Association of Hungary

E-mail: hklara@ivsz.hu