Tremendous growth potential has been identified for more than $3 trillion in terms of economic value annually by using open data globally according to McKinsey.
The open data universe comprises standardized information at no cost available to the public, which is easily accessible, visualised, and can be shared or distributed freely. In general, it helps in democratizing the stored information for better planning of the economy. Open data can not only come from the Government but also individuals and corporates.
To support an initiative of open data, the UK government has developed data dashboards on multiple parameters such as the UK economy, constituency, population, housing, benefits and credits, electoral and parliamentary activities, finances, accidents, health, education, schools, and many others. The information owned by various Government departments is now accessible to everyone which is user-friendly and easy to visualise.
The UK government has been supporting the open data initiative by touching almost every sector of government, however, a lot needs to be done in the private sector across industries in collaboration with the Companies House. The information available currently is a bare minimum and does not suffice for industry and cross-sector analysis in comparison to the newly developed data dashboards.
There are opportunities in the open data programs and the Government plays a vital role in the value creation and delivery through multiple stakeholder engagement and risk management. An effective engagement with consumers, citizens, industries, media, and NGOs for such initiatives will facilitate value creation, help in developing new capabilities, and bring in transparency for effective decision making. There are risks in utilising open data in terms of data privacy & security but can be managed through government intervention and policies.
One of the most recent initiatives funded by the European Union’s Horizon 2020 research and innovation program is Oasis Loss Modelling Framework, where insurance companies and research groups from the UK Universities and private companies have come together to develop an open-source platform for catastrophe modeling. Using Open Data Standards (ODS) will bring transparency and standardise choices in deploying catastrophe models across insurance companies. This reduces the risks and thereby charging an appropriate premium to the customers increases overall market efficiency.
Looking at the bigger picture, there is still a lot to be done considering not much information is available across industries and the private sector. Globally, countries are interested in open data but not everyone is considering it a high priority as the success of open-data programs is not guaranteed. Irrespective of their capabilities, all governments should come together to develop a clear strategy for making it happen for harnessing the value of open data sharing economy.
Written by the Lancaster University MBA Consultancy Team 2022:
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