Value of Informationinspire.ec.europa.eu/events/conferences/inspire... · INSPIRE Conference 2011 Value of Information -M. Lind 22 Case 3: Free-of-Charge Address Data Public sector

Value of Information

Assessing Social and Economic Benefits in the Context of SDI and PSI

Morten Lind, Senior Advisor ([email protected])

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


US Midwest Deluge spring 2011


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?


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.


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.


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


The Business Case

“A business case captures the reasoning for initiating a project or task.”

� Wikipedia


The business case

’Zero’Benefits (of being there)

Time

Improvement

Costs (of getting there)

Generic model

As is

To be


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


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


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)


Some Excellent Titles

Meteorology makes value, DMI-DK

A quantification of the value of open public

data. Min. of Science-DK


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)


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


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


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)


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


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 -


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)


Case 2: Geo-code buildings


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


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



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


Improve customer relations N/A -

Develop or improve products N/A -


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€


Case 3: Free-of-Charge Address Data


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 *)


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



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


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


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)


Case 4: Systematic Address Data Reuse


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


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



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


Improve customer relations N/A -

Develop or improve productsNew business opportunities in LBS with improved addresses/services

N/A


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


Conclusion: A Trend

This is the agenda the spatial data community

should join 3

“What you should do, is to make public data public”


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


Morten Lind - [email protected]

Danish Enterprise and Construction Agency (DECA)

www.ebst.dk

Danish Address Information Website: www.adresse-info.dk


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