Put simply, data is facts or statistics collected together for reference and analysis. It can be numbers, text or a combination of both. Data is normally gathered to enable analysis or decision-making of some sort. This could be simple, such as counting the number of sales of a particular product, taking an electricity meter reading, or recording the names of employees. Alternatively it could be more complex, such as showing product sales by location or profitability of particular services.
This is where embracing open data unlocks the full potential of data. Open data is data which is openly accessible to all, including companies, citizens, the media, and consumers. Here are some popular open data definitions:
Data is considered open if it meets three key criteria:
Data must be easily available, such as online through an open data portal, in a convenient form, and in its entirety. It should make datasets free to access, with organizations only charging if they incur any reproduction costs (printing and posting information).
People accessing the data must be permitted to reuse and redistribute it, including combining it with other datasets. Depending on how it is licenced, there may be the obligation to attribute data to its source, and share any new datasets produced.
Open datasets must be equally available to all groups, whether private sector companies, individuals, researchers or public organizations. Everyone must be able to use, reuse and redistribute it, in easily understandable formats, for whatever purpose.
Clearly access to accurate, up-to-date data is vital to understanding what is happening within an organization, and for individuals looking to manage their daily lives. However, often this data is siloed and can only be accessed by specific groups within an organization. This means it doesn’t deliver its true value to all which is why they need to open it.
The term open data first appeared in 1995, related to the sharing of geophysical and environmental data. The concept was then codified in 2007, at a meeting of internet activists and thinkers in Sebastopol, California. It was based on principles from the open source movement and focused on the sharing of open data by public institutions. As the open data movement grew, countries around the world introduced legislation that mandated that data from public institutions (such as government departments, agencies, municipalities and other local government bodies) should be made available as open data. Examples of open data include:
This first wave of open data was followed by further rules and guidelines that extended open data requirements to other sectors, such as energy and utilities and public transport operators. We are now seeing an increasing number of private sector organizations, from banks and telecoms companies to industrial players making data open, due to the benefits it brings to their business, ecosystems and relationships with customers.
The public sector is mandated to share much of its data, either through regulations or because it is essential to democratic government and oversight. This is shared as open data, through channels such as websites, portals and apps.
However, open data can also be published and shared by private sector organizations, to increase engagement with stakeholders and to be transparent. An increasing number of companies, across multiple sectors are now sharing information as open data.
Therefore public sector data is always open data, but open data doesn’t have to be from the public sector.
Initially, the move to open data was driven by government legislation, and covered making data created by public bodies available to all. The rationale was clear. As taxpayers citizens funded these bodies, whether local municipalities or central government departments, they had the right to understand how they were performing through greater transparency. Regulations have now increased to cover other industries, particularly around areas such as meeting decarbonization and sustainability targets, especially in the energy and utility sectors.
From the 1970s, many European countries introduced Freedom of Information Acts, mandating that public sector bodies should both provide answers to questions submitted by citizens or organizations, and that people should be able to access the information held on them by public bodies. In France, the 1978 CADA law ensures public access to data and specifies the conditions for exercising these rights, while the UK Freedom of Information Act came into force on 1 January 2005.
The European Union first passed legislation on the reuse of public sector information in 2003, through Directive 2003/98/EC of the European Parliament. This set minimum requirements for EU member states regarding making public sector information available for reuse. It was subsequently revised to form the Public Sector Information (PSI) Directive in 2013 and then replaced by the Open Data Directive in 2019. This extended regulations to cover relevant data in the utility and transport sectors and research data resulting from public funding. Member states had until 16 July 2021 to transpose the new directive into national law.
Further relevant European legislation includes The Data Governance Act, published in 2020 and The Data Act, published in 2022. These acts aim to facilitate the access and reuse of industrial data, extending open data and positioning Europe at the forefront of a data-driven society. Thanks to this set of rules, the volume of data available for reuse will increase significantly and is expected to generate €270 billion in additional GDP by 2028.
One of the aims of the original 2007 Sebastopol meeting was to lobby for US federal legislation on open data. This came into force as the Open Government Directive in 2009. This mandated that federal agencies open their data, sharing it through the Data.gov portal. It was extended through the Open, Public, Electronic and Necessary (OPEN) Government Data Act, passed in 2019.
Legislation at a state level varies but all states now have their own open data portals, as well as Freedom of Information laws mandating transparency and information sharing. This means that there are a wide range of government open datasets available across the USA.
We live in a world powered by data. It is vital to how we live and work. By sharing vital information, open data empowers citizens, employees and organizations. It provides them with insight to make better, data-driven decisions while ensuring that they are fully-informed about the actions and activities of public and private sector organizations.
Open data delivers specific benefits in four key ways:
Sharing open data helps citizens and consumers better understand the workings and performance of public sector bodies and private companies. This increases engagement and drives greater trust. Making information available helps citizens to monitor public sector performance and provides consumers with data on areas such as company sustainability efforts, quality, and diversity in their workforce, for example.
Harnessing open data helps organizations become more innovative and data-driven. They can create completely new services and businesses, either to increase revenues or drive societal change. Additionally, organizations can improve decision-making by supplementing their own information to gain deeper insights. This improves efficiency, drives innovation and improves overall operations.
Sharing data across the public sector enables more joined-up, integrated government. It removes silos between organizations and ensures that decisions are made based on a complete picture of available information. It means that different parts of government do not have to collect their own data, improving their efficiency. And by making performance transparent and showing progress against objectives, organizations will be able to measure their success and focus their efforts on hitting targets.
Today people want to transparency, and open data helps give a complete picture. For example, by combining open data from different organizations municipalities can provide visitors with all the cultural information they need plan a trip. Bringing together data on environmental performance from different sources (such as air quality, transport emissions and energy efficiency) allows towns to measure their environmental impact. They can then take targeted actions to drive improvements.
Explore a range of compelling use cases around open data in our blog.
While the open data movement began in the public sector, and was initially driven by open government data acts, organizations in every sector can benefit by opening their data. In both regulated and non-regulated industries, sharing drives improved efficiency, better engagement with customers, citizens and employees, greater innovation through sharing new ideas/creating new services and increased collaboration between different players.
What types of data are different sectors sharing and what is the purpose behind their open data strategies? Looking at individual sectors, here are some examples of how open data is delivering benefits for organizations and their stakeholders
Municipalities face a number of challenges to create cost effective smart cities. They need to become more efficient operationally, improve their sustainability and above all provide the services and experiences that their increasingly tech-savvy citizens demand. Open data is vital to meeting all of these needs.
It is the fuel for smart city projects, with data sharing at the heart of new applications such as: