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Identifying business models of applications developed using civic open data

: Lee, Melissa; Almirall, Esteve; Brunswicker, Sabine

Fraunhofer-Institut für Arbeitswirtschaft und Organisation -IAO-, Stuttgart; Univ. Stuttgart:
The R and D Management Conference 2014 : Management of Applied R and D: Connecting high value solutions with future markets; Stuttgart, Germany; June 3 to 6, 2014
Stuttgart: Fraunhofer Verlag, 2014
ISBN: 3-8396-0746-9
ISBN: 978-3-8396-0746-6
R&D Management Conference <2014, Stuttgart>
Fraunhofer IAO ()

As open strategies have gained traction in private business, scholars have researched and identified the corresponding open business models that those companies use to create and capture value (Chesbrough, 2006; Zott et al., 2011). A similar trend towards openness in the public sector has also begun, with particular focus on open data and application development as the catalysts for collaboration between citizens and the government. However, these open civic initiatives have failed to garner the amount of impact or to maintain the level of sustainability that was anticipated (Majchrzak et al., forthcoming). Some of these failures can be attributed to the lack of successful business models based on the use of civic open data. We investigate the business models of applications util izing civic open data by the considering the development of the industry architecture surrounding public open data and its influence on the developers business models (Jacobides et al., 2006). Developers and organizers in seven cities in Europe and the United States were interviewed regarding their participation in civic application development. As few applications developed on the backbone of civic open data realized profitable value creation, the paper concludes with insights into alternate sources of value creation that maintain developers involvement in the sector.