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Value of Information
Assessing Social and Economic Benefits in the Context of SDI and PSI
Morten Lind, Senior Advisor (mli@ebst.dk)
Danish Enterprise and Construction Authority (www.ebst.dk)
Ministry of Economic and Business Affairs
2INSPIRE Conference 2011 Value of Information - M. Lind
“Knowing what the Earth will do next? – Priceless …”
� William Hooke, posted 18-08-2010 www.livingontherealworld.org
3INSPIRE Conference 2011 Value of Information - M. Lind
US Midwest Deluge spring 2011
4INSPIRE Conference 2011 Value of Information - M. Lind
Agenda
� Three perspectives on wider access to information
� The challenges of INSPIRE and the PSI directive
� Value of Information – the business case
� Some Danish case studies
� A new agenda – perspectives?
5INSPIRE Conference 2011 Value of Information - M. Lind
It’s all about information
� INSPIRE:
� Framework for spatial information and (Info) services, metadata, licensing etc.
� PSI:
� Legal framework for improved re-use of Public Sector Information (PSI) on equal conditions for commercial purposes etc.
6INSPIRE Conference 2011 Value of Information - M. Lind
The challenge of INSPIRE
� Making spatial data sets and services
� Interoperable, available and fit for use
� This requires a sustainable, long term funding
� Which is not easy to get in years where public budgets are tight.
7INSPIRE Conference 2011 Value of Information - M. Lind
The challenge of PSI
� Making existing public sector information
� Available on equal conditions for commercial and non commercial purposes,
� Using the ideas of “open data” PSI re-use
� This requires acknowledgement of the idea and funding of the necessary marginal costs
8INSPIRE Conference 2011 Value of Information - M. Lind
The Business Case
“A business case captures the reasoning for initiating a project or task.”
� Wikipedia
9INSPIRE Conference 2011 Value of Information - M. Lind
The business case
’Zero’Benefits (of being there)
Time
Improvement
Costs (of getting there)
Generic model
As is
To be
10INSPIRE Conference 2011 Value of Information - M. Lind
Cost/benefits of Information
� Cost-side:
� E.g. of data collection or it-development
� Often short term and simple to quantify
� Based on well known budget tools
� Benefit-side:
� E.g. reduced expenses or improved turnover
� Often long term and difficult to quantify
� Few of tools and immature methodology
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Value of Information
“Value of information is the amount a decision maker would be willing to pay for information prior to making a decision”
� Wikipedia
12INSPIRE Conference 2011 Value of Information - M. Lind
Value of Information in a SDI/PSI
� How can we categorize and quantify the benefits of
� Providing geo-information in a comprehensive Spatial Data Infrastructure (INSPIRE)
� Providing Public Sector Information for re-use on adequate and equal conditions (PSI)
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Some Excellent Titles
Meteorology makes value, DMI-DK
A quantification of the value of open public
data. Min. of Science-DK
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Then why is it so hard?
� Since the ‘decision maker’ who must ‘pay for’ the information, often is the Ministry of Finance, benefits will be most convincing if they:
� are concrete and short-term (1-3 years perspective)
� can be quantified (typically by reduced expenses)
� are for the benefit of a few, clearly identified public bodies (with a budget!)
or, eventually
� within short-term can create new jobs (tax revenue)
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Benefit schema: Public Sector
Category / Type Examples Value
Reduce expenses
Improve data management
Avoid duplicated data collection or acquisition
Simplify data management (standards, infrastructure
Reduce IT costsReduce IT acquisition costs
Reduce IT operation costs
Reduce cost of workload (time, employees)
Optimize work flow and processes
Improve citizens’ self-service
Reduce errors and fault management
Improve
services
Improve safety and services
Avoid loss of assets and lives (emergency, health)
Provide better quality of public service
16INSPIRE Conference 2011 Value of Information - M. Lind
Benefit schema Society at Large
Category / Type Examples Value
Reduce cost o
f operatio
n
Reduce IT and data costs
Avoid data purchase and subscription
Reduce IT acquisition and operation costs
Optimize business processes
Reduce time spending and staff
Avoid errors, fault management
Reduce energy consumption, CO2 emissions and loss of assets
Optimize logistics and ‘time to market’
Improve business
opportu
nitie
s and
competitiv
eness
Improve customer relations
Find new customers (e.g. geomarketing)
Improve customers’ satisfaction/fidelity
Develop or improve products
Reduce prices, improve sales
Develop new products, services or markets
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Case 1: Unambiguous Road Names
� Problem 2006: 0,9% of all road names are not unambiguous within the post code
� Solution: Change 500 road names
� Costs: 2.5-3 M€ in public sector (10-12 M€ in total)
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Case 1: Unambiguous Road Names
Public sector Value M€ / Yr
Reduce expenses
Improve data managementA unified address data model will simplify data management
N/A
Reduce IT costsUnambiguous road names will simplify development of it-applications
Difficult to assess
Reduce cost of workload (time, employees)
N/A -
Improve services
Improve safety and servicesLack of unambiguousness create high risk of errors in dispatch of ambulance 2.0
Society at large Value M€ / Yr
Reduce cost of operation
Reduce IT and data costsA unified address data model will simplify data management
N/A
Optimize business processesPostal service estimate 15 % error rate where road names not unambiguous 0.3
Business opportuni-ties & competiti-veness
Improve customer relationsMany examples of problems and errors without unambiguous road names
N/A
Develop or improve products N/A -
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Case 2: Geo-code buildings
� Problem 2009: Building register is not linked to the topographic base map
� Solution: Create common infrastructure and link all buildings to map
� Costs: Infrastructure: 0.8 M€Links (geo-coding): 3-6 M€
Building Register
BuildingObject
(Register)
Joint Base MapBuilding theme
Buildingfeature
(geospatial)
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Case 2: Geo-code buildings
Public sector Value M€ / Yr
Reduce expenses
Improve data managementInfrastructure and standardization will reduce costs for data provider
2.0 (one time)
Reduce IT costsInfrastructure and standardization will reduce costs for users of data 0.3
Reduce cost of workload (time, employees)
More efficient management of building applications with geo-coded buildings
N/A
Improve services
Improve safety and servicesMore efficient emergency services (fire dept.) when buildings are geo-coded
N/A
Society at large Value M€ / Yr
Reduce cost of operation
Reduce IT and data costsInfrastructure and standardization will reduce costs for users of data 0.3
Optimize business processesImproved facilities management, property insurance, finance etc.
N/A
Business opportuni-ties & competiti-veness
Improve customer relations N/A -
Develop or improve products N/A -
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Case 3: Free-of-Charge Address Data
� A “backwards” business case
� Question: Did the 2002 free-of-charge address data agreement create value for money?
� Method: Make a survey on the dissemination of address data 2005-2009
� Costs of agreement: 2005-2009: 2 M€; 2010: 0.2 M€
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Case 3: Free-of-Charge Address Data
Public sector Value M€ / Yr
Reduce expenses
Improve data managementReduced cost of contract management, data delivery, etc. in municipalities 1.0
Reduce IT costsReduced cost of applications that depend on HQ address data 4.0 *)
Reduce cost of workload (time, employees)
More efficient public administration when HQ address data is available
N/A
Improve services
Improve safety and servicesImproved emergency services (112, police) with geo coded address data
N/A
Society at large Value M€ / Yr
Reduce cost of operation
Reduce IT and data costsNo charging/license for HQ address data (except marginal cost of delivery) 10.0 *)
Optimize business processesImproved business operations (e.g. route planning) w/geo-coded addresses
N/A
Business opportuni-ties & competiti-veness
Improve customer relationsImproved customers relations with geo coded addresses (geo marketing)
N/A
Develop or improve productsHQ address data is the basis of a series of location based services
50-100 FTE’s
*) From value assessment published by DECA 7. July 2010
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Case 4: Systematic Address Data Reuse
� Interim business case
� Problem 2010: Address data re-use has not reached its potential; Quality of data must be improved
� Solution: 5 initiatives under the new e-Government Strategy framework
� Costs: 2.8 M€ investment;0.7 M€ /year (operation)
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Case 4: Systematic Address Data Reuse
Public sector Value M€ / Yr
Reduce expenses
Improve data managementImproved street name and address management 0.6
Reduce IT costsReduced costs of address dependent it-applications with address-services 5.0
Reduce cost of workload (time, employees)
Avoid manual ‘key-in’ of address info; reduce fault/omissions management 2.2
Improve services
Improve safety and servicesAvoid delays/mistakes in areas without addresses (e.g. industrial areas)
N/A
Society at large Value M€ / Yr
Reduce cost of operation
Reduce IT and data costsReduce data management cost when addresses are available as a service 2.0
Optimize business processesReduce special management of areas without addresses (e.g. industrial) 2.0
Business opportuni-ties & competiti-veness
Improve customer relations N/A -
Develop or improve productsNew business opportunities in LBS with improved addresses/services
N/A
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Conclusion: The present challenge
� Financial and dept crisis
� Demand to cut public spending
� Demand to release the digital potential
� Climate and energy challenge
� Strive to create new jobs and innovation
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Conclusion: A Trend
This is the agenda the spatial data community
should join 3
“What you should do, is to make public data public”
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Conclusion: A new agenda for SDI/PSI
“The effective use of PSI, especially during a period of austerity, is increasingly viewed as a key driver for stimulating economic growth and promoting social engagement.”
� National Archives, UK 2010
This is the agenda the spatial data community
should join 3
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Morten Lind - mli@ebst.dk
Danish Enterprise and Construction Agency (DECA)
www.ebst.dk
Danish Address Information Website: www.adresse-info.dk
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References/Acknowledgements
Danish:
Meteorologi skaber værdi (En: Meteorology makes value) – Kortlægning af meteorologiske services med samfundsøkonomisk vurdering af
udvalgte cases, Danish Ministry of Transport, Copenhagen, March 2006. http://www.dmi.dk/dmi/meteorologi_skaber_vaerdi.pdf
Konsekvensvurdering, Flertydige vejnavne (En: Impact analysis of non- unambiguous road names) Konsekvensvurdering af forslag til løsning på
problemet med flertydige vejnavne inden for postnumre, Danish Enterprise and Construction Authority, Copenhagen, 4. September 2006.
http://www.adresse-info.dk/Portals/2/Dok/35879-v1-Konsekvensvurdering_Flertydige_vejnavne.pdf
The value of Danish address data – Social benefits from the 2002 agreement on procuring address data etc. free of charge; Danish Enterprise
and Construction Authority, Copenhagen, 7. July 2010. http://www.adresse-
info.dk/Portals/2/Benefit/Value_Assessment_Danish_Address_Data_UK_2010-07-07b.pdf
Samfundsgevinster ved ”geokodning” af bygninger i Bygnings- og Boligregisteret, BBR (En: Social and Economic benefits of ”geo-coding”
buildings in the Building and Dwelling Register). Results of business case analysis. Danish Enterprise and Construction Authority and National
Survey and Cadastre, Denmark, Copenhagen, 2. February 2011
Genbrug af adressedata (En: Re-use of address data). Proposal for initiative in Danish Joint Public e-Government Strategy 2011-2015, Ministry
of Economic and Business Affairs, Copenhagen, 17. May 2011
International:
The Socio-Economic Impact of the Spatial Data Infrastructure of Catalonia. M. Craglia (Ed), European Commission, Joint Research Centre,
Ispra 2008. http://inspire.jrc.ec.europa.eu/reports/Study_reports/catalonia_impact_study_report.pdf
The Value of Geospatial Information to Local Public Service Delivery in England and Wales. Executive Summary, Local Government Association
(LGA) and Improvement and Development Agency (IDeA), UK, July 2010. http://www.lga.gov.uk/lga/aio/12080636
Assessment of the Re-use of PSI in the Geographical Information, Meteorological Information, and Legal Information Sectors, MICUS,
December 2008, available at http://ec.europa.eu/information_society/policy/psi/docs/pdfs/micus_report_december2008.pdf.
The Value of Information: A Background Paper on Measuring the Contribution of Space-Derived Earth Science Data to National Resource
Management, Molly K. Macauley, Washington, D.C., May 2005 http://www.rff.org/documents/RFF-DP-05-26.pdf
The Value of Information: Methodological Frontiers and New Applications for Realizing Social Benefit. Molly Macauley and Ramanan
Laxminarayan, Washington, D.C. June 28–29, 2010 http://www.rff.org/RFF/Documents/rff-confsum-info-aug10.pdf
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