The Innovation Radar is a DG Connect support initiative which focuses on the identification of high potential innovations and the key innovators behind them in FP7, CIP and H2020 projects. The Radar supports the innovators by suggesting a range of targeted actions that can assist them in fulfilling their potential in the market place. The first Innovation Radar Report reviews the innovation potential of ICT projects funded under 7th Framework Programme and the Competitiveness and Innovation Framework Programme. Between May 2014 and January 2015, the Commission reviewed 279 ICT projects, which had resulted in a total of 517 innovations, delivered by 544 organisations in 291 European cities. Continue reading
With the increasing availability of semantic data on the World Wide Web and its reutilization for commercial purposes, questions arise about the economic value of interlinked data and business models that can be built on top of it. The Linked Data Business Cube provides a systematic approach to conceptualize business models for Linked Data assets. Similar to an OLAP Cube, the Linked Data Business Cube provides an integrated view on stakeholders (x-axis), revenue models (y-axis) and Linked Data assets (z-axis), thus allowing to systematically investigate the specificities of various Linked Data business models.
Mapping Revenue Models to Linked Data Assets
By mapping revenue models to Linked Data assets we can modify the Linked Data Business Cube as illustrated in the figure below.
The figure indicates that with increasing business value of a resource the opportunities to derive direct revenues rise. Assets that are easily substitutable generate little incentives for direct revenues but can be used to trigger indirect revenues. This basically applies to instance data and metadata. On the other side, assets that are unique and difficult to imitate and substitute, i.e. in terms of competence and investments necessary to provide the service, carry the highest potential for direct revenues. This applies to assets like content, service and technology. Generally speaking, the higher the value proposition of an asset – in terms of added value – the higher the willingness to pay.
Ontologies seem to function as a “mediating layer” between “low-incentive assets” and “high-incentive assets”. This means that ontologies as a precondition for the provision and utilization of Linked Data can be capitalized in a variety of ways, depending on the business strategy of the Linked Data provider.
It is important to note that each revenue model has specific merits and flaws and requires certain preconditions to work properly. Additionally they often occur in combination as they are functionally complementary.
Mapping Revenue Models to Stakeholders
A Linked Data ecosystem is usually comprised of several stakeholders that engage in the value creation process. The cube can help us to elaborate the most reasonable business model for each stakeholder.
Summing up, Linked Data generates new business opportunities, but the commercialization of Linked Data is very context specific. Revenue models change in accordance to the various assets involved and the stakeholders who take use of them. Knowing these circumstances is crucial in establishing successful business models, but to do so it requires a holistic and interconnected understanding of the value creation process and the specific benefits and limitations Linked Data generates at each step of the value chain.
Invited by Helmut von Berg, Director at Klopotek & Partner (Klopotek is THE European vendor for publishing production software) I had the chance to participate and speak at this years Publishers’ Forum 2013 at the Concorde Hotel in Berlin on 22nd to 23rd of April 2013.
Coming from the semantic web / linked (open) data community to this publishing industry event with about 320 participants (mainly decision makers) from small to huge publishers all across Europe made me really curious in the forefront of the Forum – what would be the most important issues for innovative publishing processes, what would be the hypes and hopes of a sector that is in the middle of a big change: coming from paper publishing straight into the world of our todays’ data economy?
And then in Berlin, Monday morning – the big surprise: already the opening keynotes by David Worlock, Outsell, UK (Title of Talk: The Atomization of Everything) and Dan Pollock, Nature Publishing Group, UK (Title of Talk: Networked Publishing is Open for Business) mentioned topics as the Semantic Web, Linked (Open) Data and even RDF and Triple Stores – last but not least pointing out that the content of publishers needs to be atomized down to the ‘data level’ and then can to be used successfully for new and innovative business models to serve existing and future customers…
As I participated in the European Data Forum 2013 (EDF2013) just a few days before the Publishers’ Forum my first thought was: WOW – publishers today have arrived in modern data economy (following already the data value chain)! And I enjoyed talking to David Worlock in the coffee break telling him my thoughts and that I will manage a workshop about ‘Enterprise Terminology as a basis for powerful semantic services for publishers’ in the afternoon that day (see slides on slideshare) and his answer was ‘Yes Martin, it seems that I was singing your song’.
The following 1.5 days of the Publishers’ Forum 2013 were full of presentations, workshops and discussions about innovative publishing processes, new business models for publishers and innovative approaches and services – full of terms that are well known by myself like: meta data management, semantics, contextualisation and very very often: Big Data and Linked (Open) Data…..and I listened very carefully to all of this – and at some point it was clear: this discussion needs to be evaluated more carefully – because many of talks and presentations were using the above mentioned terms, principles and technologies only as marketing buzz words – but taking a deeper look showed: there is no semantic web technology in place?!
Hey, Linked Data does NOT mean to establish something like a relation / a link between ‘an Author and a publication’ inside of a repository / a database – Linked (Open) Data is a well established and specified methodology using W3C semantic web standards:
Tim Berners-Lee outlined four principles of linked data in his Design Issues: Linked Data as follows:
- Use URIs to denote things.
- Use HTTP URIs so that these things can be referred to and looked up (“dereferenced”) by people and user agents.
- Provide useful information about the thing when its URI is dereferenced, leveraging standards such as RDF*, SPARQL.
- Include links to other related things (using their URIs) when publishing data on the Web.
Please read in more detail here:
- W3C Wiki
- Linked Open Data – The Essentials – a quick start guide for decision makers
- Or the FP7 project working on Linked Open Data: LOD2
As being a bit like an evangelist for Linked (Open) Data I think such a hype can be very dangerous for the publishing industry – because I see a very strong need for these companies to go for innovative content- and data management approaches very quickly to ensure competitiveness today as well as competitive advantage tomorrow – but not using the respective standards (means: only having the packaging and marketing brochures branded with it) cannot fulfill the hopes in the mid- and the long term!
Thereby I would like to point out here that ‘Linked Data’ seems not always to be ‘Linked Data’ – and I would like to strongly recommend to take a look at the well proven standards – and when selecting IT consultants and IT vendors (means: your IT partners – also a very interesting message taken home from the Forum: that publishers and IT vendors should co-operate more closely in the future in the form of sustainable partnerships) to ensure that these partners really have worked already and are working continuously with these standards and mechanisms!
Christian Dirschl (Wolters Kluwer) presenting the
WKD Use Case on Enterprise Terminologies
Btw. I had a great workshop on Monday afternoon together with Christian Dirschl from Wolters Kluwer Germany (WKD) discussing applications on top of enterprise terminologies (controlled vocabularies using real linked (open) data principles). And: The Semantic Web Company (SWC) is already a partner of the publisher WKD – and this partnership seems to become a more and more fruitful and sustainable one every day – using real linked (open) data…
How a business-related application that exploits open-data may look like is presented to the Semantic Web Challenge 2012 by Amar-Djalil Mezaour, Julien Law-To, Robert Isele, Thomas Schandl (SWC) and Gerd Zechmeister (SWC). The paper describes a prototypic linked data application for the Online Hiring Market.
”Active Hiring” is a search based application providing analytics on on-line job posts. This application uses services from the LOD cloud to disambiguate, geotag and interlink data entities acquired from on-line job boards web sites and provides a demonstration of the usefulness of linked open data in business setting.
The search based application that combines semantic technologies and services to produce Human Resources (HR) analytics and highlight major trends on online hiring market. So Active Hiring is a demonstration of the benefit of combining open data sets and services with semantic tools as a support technology for increasing the accuracy of business applications. The Active Hiring demonstrator has been developed within the activities of the European project LOD2.