Matti Rossi, Aalto University School of Business

Open Data Value NetworksCBS 25.4.2014

Contents

Open Data Research in Aalto

Definitions of Open Data

Two studies:• Open Data Ecosystem• Open Data in Healthcare

Future research opportunities

Bio excerpts

Professor of information systems at Aalto University School of Business

https://people.aalto.fi/index.html#matti_rossi

Winner of the Millennium Distinction Award 2013 for Open Source and Data Research

One year visits to Georgia State Univ., RSM Erasmus and Claremont Graduate College

Minority owner and former board member of MetaCase Consulting (www.metacase.com)

Information Systems Science at Aalto: Key personnel

Professors (Virpi Tuunainen, Matti Rossi, Hannu Kivijärvi, Timo Saarinen)

Lecturers and post docs (Johanna Bragge, Riitta Hekkala, Antti Salovaara, Merja Mattila, Jani Merikivi)

Permanent visitors (Suprateek Sarker, Maung Sein, Björn Niehaves)

ISS Research Activities In co-operation with ASF and a number of Finnish and international researcher partners, as well as with company partners

• ICT enabled / supported services, e.g.– OSIO: open data and service innovations

(with Hanken)– IISIn : smart phone diffusion and users’

switching behavior (with Oulu and Missouri)

– RTE: efficiency of financial service processes in companies and public organizations (with Tieto)

– Service co-creation with social media technologies (with University of Texas)

– Consumer use of ICT and information search (Academy of Finland)

• Business models for digital services, e.g.– OSIO: Open data and open source (with

Hanken)– Digital service platforms and many-sided

markets (with Oulu)

• IS and Service Development, e.g.– ENACT: ERP development

networks(with WBS, TUT, LUT, Adacemy of Finland)

– Service design methods– ADR: Action Design Research as

a methodical approach to both service and IS design studies (with Penn State and Chalmers)

Open Service Innovation Observatory

A platform for discussions and exchange between research and practice on open data and open innovation:

http://www.servicefactory.aalto.fi/fi/research/thematicgroups/open-service-innovation-observatory-osio

Yearly seminars with high level keynotes, some topics:• Open Data and Media, keynotes Johanna Vehkoo, co-founder of

Longplay (http://longplay.fi) and Sami Kallinen (head of Yle internet development)

• Openness in healthcare• Open Data in Business Research track at Open Knowledge Festival• HICSS Mini-track on Open Data Services again in 2015

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OSIO People

Matti Rossi, Yulia Tammisto, Aalto School of Business

Juho Lindman, Hanken School of Economics

Teemu Leinonen, Aalto School of Arts, http://legroup.aalto.fi

Ville Oksanen, Aalto School of Science

Some research topics on open data and service innovation

We have worked several years on open source and open data as innovation drivers• EU project Manetei ->

http://lubswww.leeds.ac.uk/manetei/home/ • Tekes project NextMedia -> http://www.nextmedia.fi

Now developing new ideas for research on several related areas• Open data business models• Data quality• Open data based new services development• Retail as a service

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Source: http://www.chydenius.net/historia/lyhyesti_vuodet/e_lyhyesti.asp

Openness and freedom by Anders Chydenius

Anders Chydenius, a Finnish enlightenment thinker and politician (1729-1803) was a defender of open economy and open governance in the 18th century.

He played a crucial role in creating the world"s first Freedom of Information Act in the Diet of Sweden-Finland in 1766.

According to Chydenius, economics exists for the benefit of "the little people" - and not the other way round.

Open Data 1/2

Some commonly applied definitions• Wikipd: “The idea that certain data should be freely

available to everyone to use and republish as they wish, without restrictions from copyright, patents or other mechanisms of control”

• Open Knowledge Foundation: “A piece of content or data is open if anyone is free to use, reuse, and redistribute it — subject only, at most, to the requirement to attribute and/or share-alike.”

Open Data 2/2

» Data which is made available for legal and technical re-use» Interest in US, UK, Europe (varies)» Policy push

» Related concepts» Open licensing» Open Government Data (OGD)» Scientific data» Public domain» Big data / Open big data» Semantic web» Open source, Open content, Open innovation, Data

journalism etc.

Openness

1. Technical openness• Interfaces and standards

2. Legal openness• Contracts, copyright, privacy, data protection, national

security etc

3. Commercial openness• Price of access (?) and service design

4. Societal openness• Transparency of society

Open Source and Open Data

» Difference to Open Source» source code vs. data

» Many similarities » Service business» Services built on, private-collective (?), goods» Large incumbent vs. small new software companies

» Small ones often hacker driven

Study 1: Emerging Open Data EcosystemTomi Kinnari, Aalto University School of BusinessJuho Lindman, Hanken Matti Rossi, Aalto University School of Business

Where are we now?

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Photo taken from a presentation in Apps4Finland, 4.12.2012

Open Data Business models and emerging ecosystem

• Business model elements as a foundation for analysis

• We have studied this in media business for two years together with Hanken School of Economics

• Potential research questions:- What kind of ecosystems are

needed for sustainable service development?

- What organizations and processes are involved in standard setting data availability, and service development?

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Five value network profiles were identified

• Companies with similar offering were grouped together under same value network profile

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Five value network profiles were identified

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2. Extract & transform

(All companies / 1 organization)

I. All companies performed E&T as a part of their data analysis process

II. One organization released source code to extract and transform open data with free to use license

Five value network profiles were identified

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3. Data analyser

(3 companies)

I. Create valuable content, such as visualizations, from open data

II. Gather data from several sources and perform algorithm-based analysis to create new knowledge

Five value network profiles were identified

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4. User experience provider

(7 companies)

I. Utilize open data to create attractive websites or mobile clients

II. Revenue model as with any other web-based company: adds, subscription, freemium or donations

Five value network profiles were identified

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5. Support services and consultancy

(2 companies)

I. Consulting on open data issues

II. Create analyses or applications as a subcontractor

What kind of networks are emerging: crowdsourced environmental impact measurement

Connecting and visualizing data from different sources

Display on map, Windshield display, or dashboards

Sources: Open Data, Commercial databases, Crowd sourced measuring devices

Syncron Tech Oy

23

Own sensorsCell phone…….Water meteringEnergy consumption

Lake water temperatures Water quality

Weather

Air quality

Factory pollution

Energy production

Traffic

Statistics

Source: Syncron Tech Oy white paper

Summary

User experience provider was the most popular value network profile, perhaps because they have lower entry barrier and more versatile revenue model possibilities

Only one entity in extract and transform, even when all companies need to perform this task

The study shows the need for further analysis of business models to develop viable open data ecosystems

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OPEN DATA

Critical Capability in Healthcare Information Production Processes

Sami Laine, Doctoral StudentDepartment of Computer Science and EngineeringEmail: sami.k.laine@aalto.fi

Five value network profiles were identified

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1. Commercial open data publisher

(1 organization)

I. Save costs by crowd-sourcing client development

II. Save costs by crowd-sourcing data analysis (tää ois case HS Open, voidaanko tätä mainia?)

Benchmarking claimed significant productivity differences in neurology specialty

Pirkanmaa Hospital District

Hospital District of Southwest

Finland

1,120,71

Inconsistent figures have been produced about the same issue at the same time…

Ambulatory Procedures in

Administrative Reports

Ambulatory Procedures in

Operation Room Reports

1568710726Which one is

correct?

Inaccuracies and semantic mismatches exist in healthcare data

“Patient bills”

“Manually duplicated codes”

“Planned procedures”

1568710726

Both are more accurate than

expected but only for a specific &

primary purpose.

”Actually PerformedAmbulatory Procedures”

- X % + Y %

There exists semantic mismatches

and error rates between contexts for

good reasons.

You can not trust or use Open Data unless you know where the data comes from and how it is actually created!

All Ambulatory Procedures Planned or Billed

Patient Bills or Municipality Invoices?

Detailed level in actual socio-technical reality!

Processes and Work Practices

User Interfaces and Data Entry Protocols

Data Models and Application Structures

One must also describe the Data Production Process behind the interface to avoid black boxes

Open Information Production brings Transparency and Interoperability to Software Systems and Healthcare

Prevents Vendor-lock-in• Open standards and Application Interfaces• Open collaboration between stakeholders and use cases

Improves Transparency• To own healthcare service production• To own information management and software systems

Supports Quality Control• Own internal activity (patient services or medical device maintenance)• Service providers (e.g. software or logistics)• External Benchmarking (e.g. international productivity benchmarking)

Medical Imaging System

Electronic Patient Record

Scriptscollect data

Scriptscollect data

Management Reports

Scripts produce

internal reports

Research Results

DATA SUPPLY DATA MANUFACTURING DATA CONSUMPTION

Quality of Open Data and Data Extraction Processes

Local Data Warehouse

National Hospital

Benchmarking

Scripts produce

external data sets

National Data

Registry

Scripts produce public

reports

DATA METHODSOPEN DATA

Scripts produce

external data sets

Scientific Data Set

Scripts produce external analysis

PROCESS

Information Production Process of Researchers

Information Production Process of Health Service Providers

Information Production Process of National OrganizationsThe problem is

often the obscurity of actual data

creation situations

Another problem is earlier information

production processes

Summary

Open data gaining momentum, but little commercial activity

Hype is gone

Huge opportunities in Nordic countries with good quality data

Hybrids of open and closed data are probably where most of the action will be

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Open data business benefits are often realized through cost savings

1. Publish data and allow the community to re-use it

2. Analysis made by the community might provide new insight and new opinions

3. Leveraging data extracted and transformed by someone else could save resources

4. Events, such as competitions or hackathons, draw attention of open data community

5. Long-term availability and continuance of the data is important for business use

CfP: HICSS Open Data Services mini-track

January 5-8, 2015, Grand Hyatt, Kauai, www.hicss.hawaii.edu

Deadline for submitting full manuscripts: June 15

Relevant topics:• Business value of open data services• Open data service ecosystems• Mydata and similar personal data management approaches• Open data infrastructures• Privacy issues related to open data and open data services• Aggregation of open and proprietary data

MT Chairs:  Juho Lindman, juho lindman@hanken.fiMatti Rossi, Virpi Tuunainen

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References

Tammisto, Y., and Lindman, J. (2011). Open Data Business Models. The 34th Information Systems Seminar in Scandinavia, Turku, Finland.

Rapeli, M. (2013). Data journalism: An overview of the future processes. Master’s Thesis. Aalto school of business, Finland.

Lindman, Juho, Rossi, Matti, & Tuunainen, Virpi Kristiina. (2013). Open Data Services: Research Agenda. Paper presented at the 46th Hawaii International Conference on System Sciences (HICSS).

Kinnari, Tomi, Lindman, Juho, & Rossi, Matti. (2014). Industrial open data: Case studies of the early open data entrepreneurs. Paper presented at the 47th Hawaii International Conference on System Sciences (HICSS).

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Contact

Matti RossiAalto University School of BusinessEmail: matti.rossi@aalto.fiPhone: +358-9-43138996Fax : +358-9-43138777IM: Matti_Rossi@msn.com Skype: motrossi