26 February 2014 English summary of Danish report to the Danish Geodata Agency

Transcription

1 The impact of the open geographical data 26 February 2014 English summary of Danish report to the Danish Geodata Agency

2 From 1 January 2013, a range of geographic data, so-called geodata, that the Danish Geodata Agency and the municipalities are producing, has been made open free of charge. This has taken place as part of the Government s and Local Government Denmark s basic data programme where also CBR and company data has become open. The release of geodata and company data is taking place in continuation of other data, e.g. property and address data, being released earlier and made open on the public information server. In continuation of the basic data programme on e.g. geodata, an agreement on maintenance of data and distribution of data has been made accordingly. The release of geodata, among other things, comprises the Danish Geodata Agency s topographic maps, the Danish Elevation Model and the cadastral maps as well as the common public geographic administrative framework, the so-called FOT data, which have been developed and produced by the Danish Geodata Agency and the municipalities in concert since The release of public basic data is an international trend. With the release, Denmark is one of the countries in the world that has taken the biggest step in making data open. The release of geodata will have the immediate largest importance for citizens and companies, as up to now, geodata has been subject to payment for these users. For public users, the release will not be equally important as the users in central, regional and local government have had access to the Danish Geodata Agency s geodata via agreements. The municipalities will furthermore, as before the release, contribute to financing and producing, e.g. FOT data. For the public users, the most significant difference is that they can now freely exchange data with private players. Today, geodata is used extensively in the public sector, and geodata is a tool in many administrative tasks, e.g. in technical administration units for planning tasks and tasks related to roads, nature, environment and climate adaption, but also to an increasing extent in other administrative areas, e.g. when school districts are to be determined, and new institutions are to be located. Geodata is also an essential tool for emergency management, police and in nature protection tasks. Geodata is furthermore used by line owners and other utility companies that are to lay and maintain distribution networks. For a large number of private companies, among others consulting companies and land surveyors, geodata is an important tool, e.g. in connection with design engineering, construction, consulting and inspection tasks. A number of private companies have thus also developed a market for different geodata, among others aerial photos. As public data has been made open, companies that utilise and refine as well as develop new commercial products have emerged. It is expected that the release of geodata as of 1 January 2013 will have a positive effect on the national economy, and that it will create growth and a 1 The impact of the open geographical data

3 more efficient public sector. Private companies are no longer to pay for geodata. The result is that an essential barrier for acquiring data has been removed. Companies can subsequently freely exchange data and develop new products and solutions containing geodata. Public authorities are expected to be able to reduce expenses related to updating and maintaining own geodata and IT systems, and common data sets can furthermore promote collaboration across authorities. It will also be possible for public authorities to exchange the open geodata with private companies and citizens. The open geodata will furthermore contribute to determine common data standards in other areas. A business case forming the basis for the release of geodata indicates that the public sector as well as the private sector will profit from the release. The total assessment is that the annual average net earnings will be approximately DKK 100m per year up until The public sector, including public enterprises, will have positive net earnings up until 2020 in spite of the revenue loss being the result of the Danish Geodata Agency and the municipalities losing the historic revenue from the sale of geodata. According to the business case, the private sector will have considerable earnings up until 2020 of a total of DKK 822m. As soon as year 1, i.e. in 2013, the earnings related to the release are estimated to DKK 75m. The Danish Geodata Agency has asked Deloitte to develop an analytical design and estimate the value of the Danish Geodata Agency s geographic data in 2012, i.e. before the release, and assess the potential in using the open geographic data as well as barriers for using the data. The estimate is to comprise the Danish Geodata Agency s own data as well as the FOT data that the Danish Geodata Agency is producing in collaboration with the municipalities. The estimate of the value of the Danish Geodata Agency s geodata is to constitute a so-called pre-measurement of geodata before the release as of 1 January The purpose of the pre-measurement is to have a reference point and a basis for comparison related to a post-measurement of the release that is to be conducted in 2016, where it is to be assessed whether the expected growth and efficiency gains from the release that the release has been based on seem to be realised. In connection with the estimate of the value of the Danish Geodata Agency s geodata in 2013, Deloitte has made a preliminary assessment of the potential of the open geodata based on the preliminary experiences in 2013 as well as the barriers that public and private users experience in connection with utilising the data. With this, there is a preliminary assessment of which effects the release will bring about. Below you will find a summary of the analysis design and subsequently a presentation of the main results of the pre-measurement listed in seven points. 2 The impact of the open geographical data

4 1. Analytical design The purpose of the analytical design is to show an approach to conduct a pre-measurement in which it will at the same time be taken into account that a post-measurement is to be made in 2016 that will document the effect of the release of geodata, see figure 1. The analytical design consists of a change theory, a methodical basis as well as a data strategy. The change theory In order to make sure that Deloitte s analysis design is able to capture the effects of the release in 2016, a change theory has been developed as a basis for the design and the actual measurements. The change theory is a description of the Figure 1. The analytical design is to show how the pre- and post-measurements can be conducted Content: Change theory basis Value chains Methodical basis Data strategy The analysis design is to take into account that in 2016, a postmeasurement is to be made that documents the effects of free geodata. Post-measurement Analysis design expected effect chain that the release of geodata may bring about link by link from the supply of geodata to the societal level, see figure 2. At the same time, the change theory can indicate which indicators are actually being measured on in order to demonstrate the effect from the release of geodata. Figure 2. The change theory behind the analysis design The analysis design will be used as a basis for the pre-measurement, especially with respect to estimating the value of geodata in Pre-measurement The results of the post-measurement are to be strictly comparable with the pre-measurement Effects at Utilisation of Supply of Demand for company geodata geodata geodata and authority refinement level Prices of geodata Number of requisitioners Integration of geodata in existing products and services Turnover from existing and new products and services with geodata 5 Societal effect Production (GDP) Geodata services and products Type of requisitioners according to industry Integration of geodata in existing processes Efficiency in processes and internal tasks Lower prices and increased purchasing power Extent of downloads Development of new products and services with geodata Service and communication Welfare gains (savings in time, less pollution and improved health) Source: Deloitte. Based on the change theory, it is expected that a change in price of geodata that is a consequence of the release will influence the demand for geodata. The increased demand is expected to result in a higher degree of use of geodata, i.e. geodata being integrated in existing products and services or included in new products and services being developed. It may, furthermore, result in a higher degree of use of geodata in, e.g., internal processes and tasks. The new products, services and processes may result in increased turnover and efficiency in the handling of tasks. It may also result in better service, better basis for decisions and improved communication to citizens 3 The impact of the open geographical data

5 and companies. In theory, the use of geodata may, e.g., mean quicker decision-making because a more complete data basis is available. At a societal level, it may be expected that the release of geodata will contribute to increased production, lower prices and increased purchasing power. The welfare gains may, e.g., be reflected in savings in time, improved environment and improved health. In chapter 2 of the Danish report, it has been elaborated which mechanisms form the basis for the effects that geodata brings about link by link in the effect chain. In order to strengthen and test the change theory, Deloitte has examined a number of value chains for the use of geodata. With the value chains it has been examined how geodata is included in different stages of production at data wholesalers, in companies producing solutions where geodata is included and with end users in different industries. Hereby a large number of industry-specific indicators of the effect from and value of geodata, so-called KPIs, have been covered. Among others, indicators of the effect from geodata within public administration, distribution, building and construction, education and dissemination of culture as well as a number of other industries such as the financial industry and retailing have been covered. The KPIs have been compared against the overall, central indicators in the change theory in order to support that the central indicators in the change theory are able to capture the effect at the level of companies and industries. A description of a number of these value chains and specific KPIs are shown in appendix 1 to the Danish report. The mapping of value chains has confirmed that there are market effects from geodata as well as efficiency effects from geodata. The value chain mapping has also uncovered that there are certain welfare gains from geodata, but as we will come back to, it has not been empirically possible to document these effects. Method for estimating and calculating the value of geodata Based on the change theory and interviews, a method has been developed to be used to map, estimate and calculate the value of geodata. The method is applicable for the pre-measurement of the level of value of geodata as well as for the post-measurement in It is furthermore recommended to supplement the method with an ADAM calculation of the effect from the release of geodata in connection with the post-measurement in The methodical basis for estimating the value of geodata in 2012 can be seen in figure 3. The method includes mapping, estimation and calculation of effects of three central user groups use and utilisation of geodata. 4 The impact of the open geographical data

6 Figure 3. Method for calculating the socioeconomic value of geodata The effect through private companies refinement of geodata in products and services and through own use of geodata The effect through the utility companies own use of geodata The effect through public authorities and institutions own use of geodata First link: mapping and estimation Based on collecteddata on turnover from Danish Geodata Agency-based services, the total market size will be estimatedas an expression of the market effect of the Danish Geodata Agency s geodata. The Danish Geodata Agency s geodata The efficiency gains will be estimated on the basis of the cost savings that the private companies obtain as a result of the use of geodata for own use in working processes and the management of internal tasks. The Danish Geodata Agency s geodata The efficiencygains will be estimated on the basis of the cost savings that utility companies obtain as a result of the use of geodata for own use in working processes and internal tasks. The production effect in the public sector will be estimated on the basis of the number of FTEs who are critically dependent on the Danish Geodata Agency s data and geosolutions. The Danish Geodata Agency s geodata The efficiency gains will be estimatedon the basis of the cost reductions that publicauthorities obtain as a result of the use of geodata for own use in working processes and internaltasks. Market effect Efficiency effect Efficiency effect Production effect Efficiency effect Second link: Estimation of effect The production effect made up as value added is calculated on the basis of the market effect given that turnover is set equal to production value. Based on that, the production effect made up as gross value added can then be calculated using the relation between productionvalue and gross value added in the national accounts. Production effect (gross value added) The efficiencyeffect is an expression of a productivity effect and is assumedto provide a basis for lower prices resulting in higher income and increasedproduction in society. Therefore, the efficiencyeffect is equal to a production effect. Production effect (gross value added) The efficiencyeffect is an expression of a productivity effect and is assumedto provide a basis for lower prices resulting in higher income and increasedproduction in society. Therefore, the efficiencyeffect is equal to a production effect. The production effect made up as value added will be calculated on the basis of the average value added per employee. Production effect (gross value added) The efficiencyeffect either provides a basis for other public production or increased private consumption and is therefore assumed to be equal to a production effect. Source: Deloitte. In the first link, see figure 3, it has been mapped and estimated how important geodata is for private companies turnover and for efficiency gains in private companies, utility companies and public authorities. The turnover that private companies create with products and services, where geodata are included, is an expression of the size of the market that geodata contributes to create. The turnover is therefore designated as a market effect. Furthermore, the production taking place in the public sector using geodata is estimated. For this, the number of employees being critically dependent on geodata in their job functions is used as an indicator for volume of production as we do not have a market price or turnover for the public users services based on geodata. The calculation of these first-link effects on central user groups is thus made in different ways. In the second link, see the figure, the enumeration to a societal production effect from geodata is made that may be expressed by gross value added. The size of the turnover or the market effect can be converted into a societal production effect made up as gross value added. The efficiency effect for the three user groups can also be converted into a societal production effect. In the case of private companies and utility companies, it is assumed that gains are the same as savings that will result in low prices and consequently higher income that in turn will result in increased demand and increased production. The efficiency effects of private companies and utility companies are thus assumed to be equal to a production effect. As for the efficiency gains for public authorities, it is assumed to result in either lower taxes (and thereby higher income and increased production) or in other government spending and consequently societal production. 5 The impact of the open geographical data

7 The production effect from geodata in public authorities can also be converted into a societal production effect on the basis of the average value added per employee. By means of the different mechanisms described here, an estimation of the societal production effect from geodata stated as gross value added is obtained in overall terms. This production effect is an element of the socioeconomic value of geodata. Based on the change theory, welfare gains from geodata have also been expected, as mentioned. As such, welfare gains constitute another element of the overall socioeconomic value of geodata. Welfare gains may, e.g., be savings in time and an improved environment as well as improved health for private citizens. The analysis of the value chains has confirmed that there may be certain welfare effects from geodata. The subsequent empiric data collection has, however, not made it possible to document the welfare gains because the respondents have had difficulties assessing the possible size of such gains. In connection with the post-measurement it is Deloitte s recommendation, as mentioned, to make a macroeconomic model calculation, e.g. by using the ADAM model, with a view to calculating the effect from the release of geodata. It makes sense to use a formalised model calculation in 2016 as the release can be considered a change in economy, a punch that according to the change theory will have a number of derived socioeconomic effects. This is not the case in connection with the pre-measurement for 2012 where the estimate of the value focuses on estimating the level of the value of geodata and not an effect from the release of geodata. The post-measurement in 2016 will thus illustrate the immediate effects from the release in the shape of increased market turnover as well as efficiency and price effects for the end users that may be included as input in an overall model calculation. Data strategy The analysis design is furthermore put into practice via a specific data strategy. The data strategy is the selection of and the approach to obtaining empirical knowledge to be used in the calculation with the method described. Besides the value chain analyses, Deloitte has used two sources of data. One of the sources is data traffic, i.e. the users withdrawal from the Danish Geodata Agency s data services. The other source is surveys used to gather data on the primary user groups use of geodata and the importance of geodata. A number of the methodical considerations concerning the data strategy used are elaborated in chapter 2 of the Danish report. 6 The impact of the open geographical data

8 2. Main results from the premeasurement 1. The socioeconomic value of the Danish Geodata Agency s geodata is estimated to DKK 1.6bn in In the public sector as well as in the private sector, there is a production effect from the Danish Geodata Agency s geodata. That there is a production effect from geodata means that a production is taking place, which is based on and critically dependent on geodata. The Danish Geodata Agency s geodata also contributes to increased efficiency in working processes and in the performance of tasks in the private sector, the utilities sector and the public sector where geodata is used. This efficiency effect gives rise to cost savings resulting in higher real income and improved competitiveness and thereby larger production in other sectors. This derived production is also brought about by geodata. In overall terms, the value of the production brought about by geodata as well as the contribution to efficiency from geodata make up a total socioeconomic value of geodata in Based on data from the surveys, Deloitte has calculated the socioeconomic value of the Danish Geodata Agency s geodata to make up approximately DKK 1.6bn in Of this, the production effect from the Danish Geodata Agency s data, stated as value added, makes up approximately DKK 1.4bn, while the efficiency effect is calculated to make up approximately DKK 190m. The efficiency effect is detailed below under point 3. The greater part of the estimated production value based on the Danish Geodata Agency s data of DKK 1.4bn derives from the public sector, see table 1. Table 1. Socioeconomic value of the Danish Geodata Agency s geodata in 2012 DKK million Production effect from geodata 1,402 Private companies 116 Municipalities and regions 965 Public authorities 321 Efficiency effect from geodata 190 Private companies, municipalities, regions and public authorities 190 Total socioeconomic value of the Danish Geodata Agency s geodata 1,592 Source: Deloitte. The size of the estimated production effect and the efficiency effect in particular is estimated to be at the low end. However, the estimations are subject to some uncertainty because the geodata users have found it difficult to assess the value of geodata. In particular, the estimations of the efficiency effect in public institutions are subject to 7 The impact of the open geographical data

9 some uncertainty because the estimations are based on a relatively low number of survey responses. Besides the socioeconomic value that can be made up with a production value in the national economy, geodata-based solutions also result in welfare gains that cannot be sold in a market. The welfare gains may be savings in time for private citizens and improved environment or health. Based on surveys and interviews that Deloitte has conducted, there are indications that there are certain welfare gains, e.g. as a result of faster case management and reduced search costs as well as improved resource utilisation. The responses, however, also indicate that the gains are more limited. In general, the respondents have difficulties in quantifying these effects and as a consequence hereof, there is no strong empirical basis to base an estimate of welfare gains from geodata on. This does, however, not mean that there are no welfare gains from the Danish Geodata Agency s geodata, but they are at least for the time being presumably rather small. 2. The market effect from the Danish Geodata Agency s geodata is estimated to just under DKK 240m in The calculated private market size of the Danish Geodata Agency s geodata that we designate the market effect, see the analysis design, is estimated to DKK 237m in This is the size of the turnover that can be ascribed to the Danish Geodata Agency s data in the products and services where the Danish Geodata Agency s geodata is included. It has, furthermore, been calculated that in this connection, there is an approximate private employment of 840 FTEs, see table 2. Table 2. Market and employment effect from the Danish Geodata Agency s geodata 2012 Market effect, DKK million Employment effect, FTEs Private companies Total Source: Deloitte. The Danish Geodata Agency probably only has a minor share of the total geodata market. It is, however, not possible to estimate the size of the total market as it will require knowledge of the turnover that other suppliers of other geodata products create. The surveys that have been conducted with participation from private and public users of the Danish Geodata Agency s data indicate that there is a great extent of use of other geodata suppliers among the users. E.g., there are private producers and suppliers of different geodata, e.g. aerial photos. Part of this market has presumably been or will be reduced after the release. Furthermore, there are a number of private suppliers of geodata, e.g. Google, Microsoft, OpenStreetMap, TomTom and Garmin that are utilised by private companies for commercial purposes. Finally, municipalities and a few government institutions produce their own maps, which they use themselves and sell to private users who use them for 8 The impact of the open geographical data

10 commercial purposes. In some cases, it is about derived products where FOT or the Danish Geodata Agency s screen maps are used as background maps. It is possible that the market effect from the Danish Geodata Agency s data will be increased as a result of the release because it will change the market situation. Other products that are not based on the open geodata will meet tougher competition if royalties have to be paid for the use of data. 3. The use of geodata contains efficiency effects of a total of DKK 190m. There is an efficiency effect associated with the use of the Danish Geodata Agency s geodata. This is the case for private companies, utility companies as well as public authorities. The efficiency effect in 2012 is estimated to a total of DKK 190m with the largest gain being in the utility companies, see table 3. Table 3. Efficiency effect from the Danish Geodata Agency s geodata in 2012 Efficiency effect, DKK million Private companies 40 Utility companies 100 Public authorities 50 Total 190 Source: Deloitte. The efficiency effect is an expression of the cost savings that private companies, utility companies and public units obtain as a result of the use of geodata in their internal processes and tasks. The analysis shows that geodata can contribute to more efficient operations and that there are potentially large savings to be obtained by using geodata, e.g. in connection with route planning of transportation tasks (meal delivery, eldercare), supervision and control tasks, maintenance of roads etc. The possibility of digital on-site registration and geographic localisation of tasks and integration of this information in workflow systems form the basis for a more efficient organisation of work in the administrative units. Efficiency improvement by means of geodata is thus an important element in the overall digitisation of administrative tasks. On average, public survey respondents assess the Danish Geodata Agency s geodata to be important in relation to efficiency improvement of internal administrative processes. In case of providing a basis for administration, decision-making and establishment of efficient administrative procedures, the Danish Geodata Agency s data is stated to be important. In figure 4 below, it has been illustrated how public users, on average, assess the importance of the Danish Geodata Agency s geodata compared to a number of internal processes on a scale from -1 to +1. On average, the Danish Geodata Agency s geodata is assessed to be of close to great importance for most internal 9 The impact of the open geographical data

11 processes, especially regarding basis for decisions, administrative basis, security in decisions and visualisation. Figure 4. Weighted importance of the Danish Geodata Agency s geodata in order to ensure better internal processes in public authorities in Source: Deloitte s survey among public authorities. N: Note: The weighted importance of the Danish Geodata Agency s geodata for the internal processes has been calculated by giving each reply a numeric value and then calculating the average of the replies. The following numeric values have been used: no importance: -1, less importance: -0.5, some importance: 0, great importance: 0.5 and very great importance: The geodata market is historically driven by traditional fields of use, but new markets in other administrative areas and in other industries are maturing. The geodata market is to a great extent driven by the demand for providing an administrative framework within environment and construction (e.g. planning, public roads and parks, nature management, climate adaption etc.), within construction and design engineering as well as within utility companies. There are considerable activities in, e.g., consulting firms that support these areas. In the municipalities it is also in these areas that the municipalities own geodata and GIS competences are typically anchored. But at the same time, it is clear that deployment of the use of geodata is increasing in other administrative areas in the public sector and new industries in the private sector. It is a development that has taken place for a number of years. In public administration, deployment is taking place rather slowly, and a dramatic deployment is yet to be seen among the municipalities, but the release may contribute to accelerate the development because sharing of data provides the opportunity for collaborating with third parties and for knowledge sharing across municipalities. 10 The impact of the open geographical data

12 Geodata is, e.g., used within schools, healthcare and social welfare as well as culture. Building of institutions and planning of school districts are taking place by means of geodata; priority areas in municipal dental care are defined by means of geodata; cultural heritage institutions make it possible that off-duty archaeologists can report finds and make registrations by means of open geodata. In the private sector, the deployment of the use of geodata in other than the traditional industries is emerging, and a market for geodata is under development that is characterised by innovation. It is the case for, e.g., retailing and the financial industry (bank, insurance, finance). In these industries, there is a demand for solutions for, e.g., modelling customer trading areas in connection with decisions on locating stores and branches; assessing risks related to insurance of homes in areas being at risk of flooding; conducting targeted marketing campaigns; making profiles of customer groups etc. Geodata is included in connection with a number of other data, e.g. socioeconomic data, as a tool to provide a basis for decisions for the companies. On an overall basis, these markets are considered small for the time being, but it is, among others, in these markets that new market players have gained a foothold. 5. The potential of geodata is assessed to be large in the private sector as well as in the public sector, but so far, the market is, however, in a watch-and-wait mode regarding the release, and the growth potential towards 2015 is so far assessed to be modest by the market players. Deloitte s survey documents that in the private sector, in utility companies as well as in the public sector, it is assessed that there are considerable possibilities in utilising geodata, and that the release may represent a positive contribution. 40 per cent of the public users indicate that the Danish Geodata Agency s data will be of importance for the efficiency in the performance of tasks in 4 to 5 years. 80 per cent indicate that there is a savings potential in using geodata. These savings are to be seen against the background that in general, it is assessed that there are great opportunities in utilising geodata and digitising administrative processes to a higher degree than today. The respondents have noted that some companies with products that have competed with the released geodata have had their market reduced. But the preliminary effect from the release of geodata in the market is, however, assessed to be modest, and the market players are expecting a modest growth towards The market players have a large focus on the release and are currently assessing, which new possibilities might emerge, but so far, there is a certain 11 The impact of the open geographical data

13 restraint in the market, and it is stated that the large change in demand from the public side is yet to be seen. The larger market players have a wait-andsee approach to development for the time being. They have noted that there are new, smaller players who try to develop a market characterised by innovation and who try to get a share of, among others, a municipal market. A few data wholesalers also indicate insecurity related to the content of a future data distributor and thereby related to how far the public sector will go into the market for distribution of data. It may contribute to the fact that for the time being, companies are less willing to take a risk by investing in new products if a future public initiative will change the market opportunities. Some consider it a barrier for developing the potential of geodata, see point 7 below. The public players are divided in the assessment of whether the release will make any immediate difference. Many public players note that the release will not fundamentally change the public authorities access to geodata even though it is recognised that the release will improve the possibilities for collaboration with third parties and other authorities. A rather unambiguous result of the survey is that the public sector does not expect to increase the purchase of geo-related solutions, which might also contribute to explain certain sluggishness in the market. A calculation of the growth potential based on the companies own growth estimates reflects the watch-and-wait approach that many have expressed. The calculation of the growth potential shows that the market is expected to grow by 5.5 per cent towards 2015 compared to the market size in It may be considered a modest growth potential that is also lower than measurement of potential in other countries. The calculated growth potential, however, does not take into consideration that there may be new players in the market with new products and solutions that might extend the market. There is, thus, a schism between the potential that both private and public players see in geodata, and specifically in the release, on the one hand and on the other hand, the specific growth estimates up until The schism may be due to the insecurity that is yet related to how big new markets can be developed and how strong competition new and smaller market players can create in the existing market. For the moment, the development in the market in 2013 has not provided a clear answer to base more optimistic estimates on. 6. The central driving forces behind the importance of the release in the market are innovation and competition in the market. The analysis indicates that the release despite a minor effect in the market for the time being has strongly pushed the innovation activities in the existing companies in the market and resulted in the formation of new companies and business units. This might sharpen competition in the market. Open ge- 12 The impact of the open geographical data

14 odata has gone from being an element that in itself was not driving innovation, but a cost factor, to become an actual factor that drives development of new products and services. Thus a basis for more growth and productivity is created though the effect has yet only materialised to a limited extent. 35 per cent of the companies indicate that they have enhanced existing products and services. 15 per cent have developed new products and introduced them to the market in 2013, and 15 per cent have developed products that are expected to be introduced to the market within a short period of time. Furthermore, 25 per cent indicate that they have changed or developed internal processes and working procedures because geodata can now become part of the business base, e.g. in all utility companies in the country. Finally, there are examples of new companies being established or existing companies establishing new business areas where the new market opportunities being a result of the release can be cultivated. There are, thus, indications of apparently rather extensive innovation activities. This has been confirmed by a number of in-depth interviews. Furthermore, 40 per cent of the companies assess that they experience a price pressure, or that they have already reduced prices of products or services, either as a direct consequence of the release of geodata or indirectly as a consequence of the release as the release has created increased competition among suppliers of solutions. Something, however, indicates that the large market areas being dominated by the large market players within technical and environmental services, engineering and construction design have not yet been challenged. This is primarily due to the fact that a very important market for the large market players the public market has not been changed as a consequence of the release. Their customers, e.g. the municipal administration units, have the same access to geodata as earlier. The decisive factor related to market development will be whether new market players can challenge the traditional markets and whether new products and services may emerge that can increase the use of geodata in new public administrative areas or in new industries. In this case, the public authorities improved opportunities for collaborating with third parties contribute to creating the basis for more innovation and providing better opportunities for new market players to become suppliers and compete with the traditional suppliers to public clients. 7. Relatively few barriers related to the utilisation of geodata, and they can primarily be addressed by the Danish Geodata Agency. Other barriers exist for realising the potential in the public sector. A number of barriers have been uncovered for the utilisation of geodata. Some have to do with the distribution of data with the Danish Geodata Agency, others with the prerequisites for utilising geodata with the users them- 13 The impact of the open geographical data

15 selves. Furthermore, some respondents have indicated the insecurity about the market development as a consequence of the fact that it has not yet been clarified how far the public sector will go with the announced data distributor. Finally, it has been pointed out that the lack of release of other data may prevent utilisation of geodata. Barriers in connection with the distribution of data Among companies, utility companies and public users, there is a wide perception of lacking system stability with the Danish Geodata Agency as a barrier for optimal use of geodata. 30 per cent of the private companies and 50 per cent of the utility companies indicate this as a barrier. In personal interviews, especially uptime has been pointed out as being a problem. Among companies and utility companies, also lack of user friendliness is considered a barrier. These are barriers that can be addressed by the Danish Geodata Agency. Other barriers for the users have also been pointed out that have to do with the distribution of data. Some private companies thus mention that they lack access to information about dating of surveying, flight photography and data editing as well as year/version of scanned historical maps. It has been noticed that the problem is increasing proportionally with the amount of data. It has also been mentioned that certain data from the Danish Geodata Agency s side is insufficiently documented so that the use of it is not as simple as it could be. One company, e.g., points out that the lack of description of conceptual models (tables and relations) and keys that can be used crosswise makes it troublesome, defective and time-consuming to combine data from the public authorities. Barriers with the users A few companies point out that their own lack of experience and competences may, in a transitional phase after the release, constitute a barrier. The use of open geodata is at a very early stage, and some might lack the right competences in order to be able to manage the new types of data at their disposal. There might thus be a certain competence gap in especially some small companies that might go beyond any lack of user friendliness in the Digital Map Supply. It is, however, not assessed to be a barrier for many companies utilising geodata. The public users point out that there are competence barriers for utilising the potential of geodata. 75 per cent of the respondents indicate in the survey for the public users that insufficient competences related to using geodata in other administrative areas than the typical user areas is a barrier for optimal utilisation of open geodata. Barriers as a consequence of market insecurity In interviews, it has been pointed out that there is a certain restraint related to base too much of the business on the new data as initiatives such as the 14 The impact of the open geographical data

16 future data distributor might cause insecurity in relation to how far-reaching the public sector s role will be. For certain companies this is a grey area lacking inclination to develop certain solutions fearing that the public sector will in the near future pull away the business base by offering a similar service itself. It is decisive to some companies that they know the framework for themselves as well as the Danish Geodata Agency in advance, or it will be too risky to make an actual strategy for the area. The barrier is generally referred to as a kind of risk aversion that results in the fact that most companies partly await each other, partly await future initiatives in connection with the basic data programme. In interviews and in comments in the survey, some respondents talk about the data distributor becoming a bottleneck. For some companies it is not about technical barriers restraining them, but instead there is a demand for clearer communication of which products and services will be part of the basic data programme in the short as well as in the long run. Barriers from lacking release of other data and harmonisation It is thus pointed out that the possibility of obtaining positive effects from the release will firstly depend on more data being included in the release, secondly on data harmonisation being carried through so that there will be fewer areas where, e.g., municipalities maintain their own maps. A number of companies and public authorities focus on the fact that some basic data is still not freely available, and that this limits the utilisation of geodata. A majority of the public users indicate the lack of release of other public data and the lack of system solutions to be barriers for fully utilising geodata. In interviews, the lack of open access to socioeconomic data from Statistics Denmark and to health data has especially been emphasised. It has, furthermore, been experienced as a barrier for the potential of utilising geodata that a harmonisation of the data basis has not been ensured. A strong demand for extending the number of common themes in the maps has been pointed out in order to establish common data-bearing objects, e.g. regarding waterways, roads and buildings. In interviews, it has been emphasised that there is still some distance to go before a common basis between the municipalities has been established. 15 The impact of the open geographical data

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