Value of Information

Transcription

1 Value of Information Assessing Social and Economic Benefits in the Context of SDI and PSI Morten Lind, Senior Advisor Danish Enterprise and Construction Authority ( Ministry of Economic and Business Affairs

2 Knowing what the Earth will do next? Priceless William Hooke, posted

3 US Midwest Deluge spring

4 Agenda Three perspectives on wider access to information The challenges of INSPIRE and the PSI directive Value of Information the business case Some Danish case studies A new agenda perspectives? 4

5 It s all about information INSPIRE: Framework for spatial information and (Info) services, metadata, licensing etc. PSI: Legal framework for improved re-use of Public Sector Information (PSI) on equal conditions for commercial purposes etc. 5

6 The challenge of INSPIRE Making spatial data sets and services Interoperable, available and fit for use This requires a sustainable, long term funding Which is not easy to get in years where public budgets are tight. 6

7 The challenge of PSI Making existing public sector information Available on equal conditions for commercial and non commercial purposes, Using the ideas of open data PSI re-use This requires acknowledgement of the idea and funding of the necessary marginal costs 7

8 The Business Case A business case captures the reasoning for initiating a project or task. Wikipedia 8

9 The business case Generic model Costs (of getting there) Improvement As is To be Zero Benefits (of being there) Time 9

10 Cost/benefits of Information Cost-side: E.g. of data collection or it-development Often short term and simple to quantify Based on well known budget tools Benefit-side: E.g. reduced expenses or improved turnover Often long term and difficult to quantify Few of tools and immature methodology 10

11 Value of Information Value of information is the amount a decision maker would be willing to pay for information prior to making a decision Wikipedia 11

12 Value of Information in a SDI/PSI How can we categorize and quantify the benefits of Providing geo-information in a comprehensive Spatial Data Infrastructure (INSPIRE) Providing Public Sector Information for re-use on adequate and equal conditions (PSI) 12

13 Some Excellent Titles Meteorology makes value, DMI-DK A quantification of the value of open public data. Min. of Science-DK 13

14 Then why is it so hard? Since the decision maker who must pay for the information, often is the Ministry of Finance, benefits will be most convincing if they: are concrete and short-term (1-3 years perspective) can be quantified (typically by reduced expenses) are for the benefit of a few, clearly identified public bodies (with a budget!) or, eventually within short-term can create new jobs (tax revenue) 14

15 Benefit schema: Public Sector Category / Type Examples Value Reduce expenses Improve data management Reduce IT costs Avoid duplicated data collection or acquisition Simplify data management (standards, infrastructure Reduce IT acquisition costs Reduce IT operation costs Reduce cost of workload (time, employees) Optimize work flow and processes Improve citizens self-service Reduce errors and fault management Improve services Improve safety and services Avoid loss of assets and lives (emergency, health) Provide better quality of public service 15

16 Benefit schema Society at Large Category / Type Examples Value Reduce cost of operation Improve business opportunities and competitiveness Reduce IT and data costs Optimize business processes Improve customer relations Develop or improve products Avoid data purchase and subscription Reduce IT acquisition and operation costs Reduce time spending and staff Avoid errors, fault management Reduce energy consumption, CO2 emissions and loss of assets Optimize logistics and time to market Find new customers (e.g. geomarketing) Improve customers satisfaction/fidelity Reduce prices, improve sales Develop new products, services or markets 16

17 Case 1: Unambiguous Road Names Problem 2006: 0,9% of all road names are not unambiguous within the post code Solution: Change 500 road names Costs: M in public sector (10-12 M in total) 17

18 Case 1: Unambiguous Road Names Public sector Improve data management A unified address data model will simplify data management Value M / Yr N/A Reduce expenses Reduce IT costs Unambiguous road names will simplify development of it-applications Difficult to assess Improve services Reduce cost of workload (time, employees) Improve safety and services N/A - Lack of unambiguousness create high risk of errors in dispatch of ambulance 2.0 Society at large Value M / Yr Reduce cost of operation Reduce IT and data costs Optimize business processes A unified address data model will simplify data management N/A Postal service estimate 15 % error rate where road names not unambiguous 0.3 Business opportunities & competitiveness Improve customer relations Many examples of problems and errors without unambiguous road names Develop or improve products N/A - N/A 18

19 Case 2: Geo-code buildings Problem 2009: Building register is not linked to the topographic base map Solution: Create common infrastructure and link all buildings to map Costs: Infrastructure: 0.8 M Links (geo-coding): 3-6 M Building Register Building Object (Register) Joint Base Map Building theme Building feature (geospatial) 19

20 Case 2: Geo-code buildings Public sector Improve data management Infrastructure and standardization will reduce costs for data provider Value M / Yr 2.0 (one time) Reduce expenses Reduce IT costs Infrastructure and standardization will reduce costs for users of data 0.3 Reduce cost of workload (time, employees) More efficient management of building applications with geo-coded buildings N/A Improve services Improve safety and services More efficient emergency services (fire dept.) when buildings are geo-coded N/A Society at large Value M / Yr Reduce cost of operation Reduce IT and data costs Optimize business processes Infrastructure and standardization will reduce costs for users of data 0.3 Improved facilities management, property insurance, finance etc. N/A Business opportunities & competitiveness Improve customer relations N/A - Develop or improve products N/A - 20

21 Case 3: Free-of-Charge Address Data A backwards business case Question: Did the 2002 free-ofcharge address data agreement create value for money? Method: Make a survey on the dissemination of address data Costs of agreement: : 2 M ; 2010: 0.2 M 21

22 Case 3: Free-of-Charge Address Data Public sector Improve data management Value M / Yr Reduced cost of contract management, data delivery, etc. in municipalities 1.0 Reduce expenses Reduce IT costs Reduced cost of applications that depend on HQ address data 4.0 *) Reduce cost of workload (time, employees) More efficient public administration when HQ address data is available N/A Improve services Society at large Reduce cost of operation Business opportunities & competitiveness Improve safety and services Reduce IT and data costs Optimize business processes Improve customer relations Develop or improve products Improved emergency services (112, police) with geo coded address data N/A Value M / Yr No charging/license for HQ address data (except marginal cost of delivery) 10.0 *) Improved business operations (e.g. route planning) w/geo-coded addresses Improved customers relations with geo coded addresses (geo marketing) HQ address data is the basis of a series of location based services N/A N/A FTE s 22 *) From value assessment published by DECA 7. July 2010

23 Case 4: Systematic Address Data Reuse Interim business case Problem 2010: Address data re-use has not reached its potential; Quality of data must be improved Solution: 5 initiatives under the new e-government Strategy framework Costs: 2.8 M investment; 0.7 M /year (operation) 23

24 Case 4: Systematic Address Data Reuse Public sector Value M / Yr Reduce expenses Improve data management Reduce IT costs Reduce cost of workload (time, employees) Improved street name and address management 0.6 Reduced costs of address dependent itapplications with address-services 5.0 Avoid manual key-in of address info; reduce fault/omissions management 2.2 Improve services Improve safety and services Avoid delays/mistakes in areas without addresses (e.g. industrial areas) N/A Society at large Value M / Yr Reduce cost of operation Reduce IT and data costs Optimize business processes Reduce data management cost when addresses are available as a service 2.0 Reduce special management of areas without addresses (e.g. industrial) 2.0 Business opportunities & competitiveness Improve customer relations N/A - Develop or improve products New business opportunities in LBS with improved addresses/services N/A 24

25 Conclusion: The present challenge Financial and dept crisis Demand to cut public spending Demand to release the digital potential Climate and energy challenge Strive to create new jobs and innovation 25

26 Conclusion: A Trend What you should do, is to make public data public This is the agenda the spatial data community should join 26

27 Conclusion: A new agenda for SDI/PSI The effective use of PSI, especially during a period of austerity, is increasingly viewed as a key driver for stimulating economic growth and promoting social engagement. National Archives, UK 2010 This is the agenda the spatial data community should join 27

28 Morten Lind - mli@ebst.dk Danish Enterprise and Construction Agency (DECA) Danish Address Information Website: 28

29 References/Acknowledgements Danish: Meteorologi skaber værdi (En: Meteorology makes value) Kortlægning af meteorologiske services med samfundsøkonomisk vurdering af udvalgte cases, Danish Ministry of Transport, Copenhagen, March Konsekvensvurdering, Flertydige vejnavne (En: Impact analysis of non- unambiguous road names) Konsekvensvurdering af forslag til løsning på problemet med flertydige vejnavne inden for postnumre, Danish Enterprise and Construction Authority, Copenhagen, 4. September The value of Danish address data Social benefits from the 2002 agreement on procuring address data etc. free of charge; Danish Enterprise and Construction Authority, Copenhagen, 7. July Samfundsgevinster ved geokodning af bygninger i Bygnings- og Boligregisteret, BBR (En: Social and Economic benefits of geo-coding buildings in the Building and Dwelling Register). Results of business case analysis. Danish Enterprise and Construction Authority and National Survey and Cadastre, Denmark, Copenhagen, 2. February 2011 Genbrug af adressedata (En: Re-use of address data). Proposal for initiative in Danish Joint Public e-government Strategy , Ministry of Economic and Business Affairs, Copenhagen, 17. May 2011 International: The Socio-Economic Impact of the Spatial Data Infrastructure of Catalonia. M. Craglia (Ed), European Commission, Joint Research Centre, Ispra The Value of Geospatial Information to Local Public Service Delivery in England and Wales. Executive Summary, Local Government Association (LGA) and Improvement and Development Agency (IDeA), UK, July Assessment of the Re-use of PSI in the Geographical Information, Meteorological Information, and Legal Information Sectors, MICUS, December 2008, available at The Value of Information: A Background Paper on Measuring the Contribution of Space-Derived Earth Science Data to National Resource Management, Molly K. Macauley, Washington, D.C., May The Value of Information: Methodological Frontiers and New Applications for Realizing Social Benefit. Molly Macauley and Ramanan Laxminarayan, Washington, D.C. June 28 29,