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Sustaining Open Data
     Innovation
             Luke Closs
  Founder & CTO, OpenWest Systems

      @lukec - http://openwe.st
Speaker Background
 Based in Vancouver, BC
 Telecomm, Anti-spam, Collaboration
 Long walks, HTTP, Open Web
 Co-founder of Vancouver Hack Space
   VanTrash, Budget visualization, gut, Parliament scrapers, Corporate
    registry tools, Election 鍖nance tools, Recollect, Open Data
    catalogues, Marine AIS Tra鍖c, CKAN, datadotgc.ca, sidewalk chalk
    dataviz, hackathons, Open Data Day,
Goals of this Talk
 Inspire
 Visualize
 Realistic
 Tools
Part 1: VanTrash
The Beginning
Sustaining open data innovations
A few months 鉛温岳艶姻
There is something
       here!
How can we bring
this to more people?
Problem:

Cities dont embrace
        hacks.
Ideas &
          Projects Products   Services   Infrastructure
 Hacks
Ideas &
          Projects Products     Services    Infrastructure
 Hacks




             Many of these ideas will fail.
                      Thats okay.
Ideas &
          Projects Products   Services   Infrastructure
 Hacks




             The good innovations typically
                  move to the right.
Ideas &
          Projects Products   Services   Infrastructure
 Hacks




  Citizens                         Established Vendors
Realization:

Cities are missing out.
Ideas &
          Projects Products    Services   Infrastructure
 Hacks




     Cities miss out, these solutions are too cheap!
Sustaining open data innovations
Nobody will use this!
 City wont use it.
 City wont link to it.
 City would need a SLA.
 No business to provide a SLA.
 Cost would be too low.
 Project will probably die out.
Why is that bad?
 The city cant do cheap things
 The city cant collaborate with citizens
 This limits opportunity for new vendors
  to provide greatly cheaper services.
Realization:

Only way to achieve
 goals: Charge $$$
Part 2:
Business Models
Tangent: Org Hacks
 Co-operatives
 For-pro鍖t
 Non-pro鍖t
 Use the right type(s)!
So you want to build
    a business!
Business Model Canvas
Use it to:
Describe / Discuss / Create / Invent / Improve
        your business model
Cost   Value
My BM Gen Process
 Brainstorm every possible idea / detail
 Stare at it & Discuss
 Split into distinct business models
 Compare / Contrast
 Will it blend!?
 Try, learn, iterate!
4 Business Models
Citizen Funded
Citizen Funded
 Requires marketing strength
  Doesnt require a sales team
 Hard to market to target customers
  (Non-techie citizens)
 Few barriers to get started
City Funded
City Funded
 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!
Infrastructure Service
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?
Public Open Source
  Service (POSS)
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 pro鍖t incentive to expand, enhance

   Good for small, very cheap services
Part 3:
Building Recollect
Step 1:
 Re-design
 Re-brand
Re-architect
  Re-build
Initial thought:
Cities are too much work!
   Lets sell to citizens!
Pivot #1
Customer Development
 Get out of the building
 Learn current pains
 Talk in their language
 Understand the buyers & their process
 Experiment with pricing
Funding?
 Finding money for civic startups is hard
 VCs dont like selling to governments!
  Cool, but whats your plan B?
 We said no (so far!):
  Cant get o鍖 the treadmill
  No masters
So... dont quit your
       day job!
Building a
 open data
company is
hard work.
It helps to have a
solid background
   & experience.
Dont call yourself a
      startup!
Its not about
  open data!
Scraping data
doesnt always make
      friends!
When your hobby
  becomes your
business, priorities
     change!
Part 4:
Recollect Today
Product that is
 truly unique
in the market.
Truly amazing
collaboration with
 City of Ottawa
(~60% of Ottawa
households have
 used Recollect!)
> 100,000 Garbage
day reminders sent!
     (Already!)
~40,000 Calendars
 printed at home.
Growing our
   customer base,
across North America
International
Distribution Partners!
Building a business.
In Summary
 Open data + Ideas + Hacks Innovation
 Innovations + Time + E鍖ort  Products
 Building a open data company is:
  fucking hard
  fucking stressful
  fucking awesome

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