More thoughts of urban data platform

In my last blog, I presented the concept of smart city and exploitation of public data in developing smart city system. Through my thesis work, I explored supply chain mechanisms and its possible applicability into urban data platform operation. I also shared my suggestion on usability of urban data platform operation for public or private practitioners. In continuation from the last blog, in this final part of the blog, I will share my findings of business modality of urban data platforms.

My objective of work was to identify in general whether there are similarities exist between urban data platform business model to that of multisided platform business model. I have found that business model of urban data platform is quite similar to multisided platform business model. Here are some findings that are presented below:

1. In urban data platform, “Business customers” are the target customer/user group:

The utility of raw data brings more value to specific businesses rather than to an individual, since the business has the monetary power to analyze the data and convert it into meaningful product or service in smart city ecosystem, so, businesses are more emphasized to join such platform earlier rather than the consumers.

2. Should the data in the platform be free or priced?

Even though open data means data for free for all from public authority, however valuable data or a service delivered using the data can be charged. During my thesis work, I found that data platform of city of Turku were contemplating on putting price on domain specific services that are being provided using available data in the platform. However urban data platform, as a public institution, should consider opening data for free for all. Because government does not aim for profit making and rather should encourage private organizations to produce innovative citizen centric services using data, which in return will bring value to the city administration.

3. Consider your platforms value creation strategy at early stage:

Most close multisided platforms practice competitive, and open platforms practice co-creation and co - opetitive value creation environment. Benefits of the latter is that it fosters user (consumer) interaction, feedback and etc while the former does not. Maturity of the platform is also an important factor in platforms value creation. Based on my study on several urban data platforms, it’s better for new platforms to start as a close system and should incrementally enable co-opetitive or co-creation environment as it becomes more experienced.

4. What should be the value offering of an urban data platform?

Consider Facebook as multisided platform, where millions of users are the reason for many businesses to post their product advertisements. Therefore, consumers’ critical mass is the value offering for businesses in Facebook. Unlike that businesses are more interested in joining an urban data platform to exploit open data to innovate product and service. These innovations are ultimately the value offering for consumer group in the platform.

5. Collaborate with stakeholders to minimize operational cost

Not all the tasks of the platform should be performed by the platform owner itself, unless the task is the core competency of the platform. Partnering with multiple stakeholders through “Value adding partnership” will significantly decrease operational cost, enhance efficiency and organic growth of the platform. For example, to validate the truthfulness of open data or to remove clutter from datasets, the platform can work with analytics company who would serve the purpose in a more professional manner.

I speculate though, two points that are not given enough consideration within the landscape of urban data platform operation. First one is data usage for cities internal operation. To achieve city centric vision, data driven performance and service from city in future is imperative. The second one is the realization of data usage or the actual value of having raw data at hand.

Even after getting access to (open) data, many are uncertain of its proper valuation and utility due to limited number of use cases. How can we connect these missing elements to establish singularity? Using the concept “circular economy of data” facilitators can create such environment. Below I have presented my view on circular economy of data:

Figure 6: An ecosystem of circular economy of data in urban data platform

My take of circular economy of data considers key supply and demand pillars and revolves around suggested business modality. The complete research paper can be found in the library of Åbo Akademi university.