This document discusses four business models for open data: citizen funded, city funded, infrastructure service, and public open source service (POSS). The citizen funded model relies on marketing but does not require a sales team, while the city funded model requires a sales team to sell to municipalities. The infrastructure service model markets to developers without a sales team. The POSS model relies on citizen donations to collectively cover hosting costs, with no profit incentive to expand.
2. Open Data Biz Model
Ways to think about possible
businesses that use open data.
See also: Business Model Generation
(Pro-tip: youre actually just building a
company, the open data is just one of
many inputs.)
5. Citizen Funded
Requires marketing strength
Doesnt require a sales team
Hard to market to target customers
(Non-techie citizens)
Few barriers to get started
6. City Funded
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Sell to municipal decision makers
Requires sales team
Typically looooong sloooow sale
City handles marketing
Administration features, cost reduction
Cant be too cheap, or too expensive!
7. Infrastructure Service
Market to developers, no sales team.
Make it easy for hackers to use in their
town.
Create new innovations on the service
Too niche?
9. POSS
Idea by @Progrium - bit.ly/VJU1Mg
Citizens collectively pitch in to cover
costs
Donations => Bank account => Hosting fees
$$ / burn rate = months of service.
No profit incentive to expand, enhance
Good for small, very cheap services