The Business of Open Data
The following was originally posted as a guest post on the Open Knowledge Foundation Blog.
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The rise of Open Data in the last 3-4 years is no news to anybody reading this blog. More and more public organizations are buying into the idea, governments are running each other over in setting up data portals and leading intellectual magazines and newspapers have devoted special reports to this rising trend.
However, we still do not have a lot to show for it. Yes, there has been some innovation. Yes, corruption has been discovered. Yes, there are examples of data journalism where improved access to data has brought new insights. But nowhere near as much as the most prominent advocates promised us.
As Gartner analyst Andrea Di Malio recently put it “It is time to move open government from being good to being useful.“
Unleashing the Value of Open Data
When I arrived back home from O’Reilly’s Gov 2.0 Expo in Washington last month, I felt very similar to Di Malio. I actually jotted some of my thoughts down in a blog post I called The Commercial Opportunities in Open Data:
The revolution here is that an enormous amount of valuable data is becoming easily and freely available all over the world. Some of this data has never been made public before and certainly not this accessible. In gathering this data lie thousands – no – probably hundreds of thousands of man-years, whose output has until now only been used to a fraction of its potential. Imagine the value in all that work, in all that data!
And this data has real, practical, monetary value to virtually every business, household and individual. But only a tiny fraction of them know that yet.
The real commercial opportunity in Open Data lies in helping people discover all this data, see its potential and realize how they can make use of it to run their businesses better, make better decisions and identify new opportunities.
Now, if you can spark this – if you can help businesses and society in general releasing value, there will be ways for you to be a part of that value chain.
The Business End of Open Data
My company – DataMarket – is working on exactly this. We’ve integrated to a lot of open, public data sources to our data portal and our approach is this: data that is open and free to begin with will still be open and free on DataMarket, just easier to find and use.
We only launched, here in Iceland, about six weeks ago. But I know for a fact that we’re already releasing value for businesses and individuals that otherwise hadn’t been.
The business model we’re imposing on top of this two-fold:
- Some features of the system, such as personal dashboards, scheduled email reports and API access is only available to paying subscribers.
- Access to premium data, such as market research, financial market data and analyst forecasts is sold for a fee. As the company name implies, this is a market for data, even though a lot of the “merchandise” is free of charge.
Keeping Open Data open and free of charge is an important part of this model:
- It brings a user base to the site that may at some point turn into subscribers, either to the pro account or some of the premium data;
- It means that users have plenty of free content to realize the value of our tool and know what to expect if they buy into it; and last but not least…
- …it makes the public sector data providers far more positive to our approach than if we’d be hiding their data behind a paywall.
I’ll tell anybody, and in fact I’ve told our investors repeatedly that I’m not sure if we’ve yet found exactly the right model. But what I do know is that if we – as an “industry” – cannot soon prove to governments and the fantastic people working on this in the public sector that their Open Data efforts are worth while, there will be a backlash in both funding and interest.
The field of Open Data and data markets is taking off and the promised revolution will come, but it may be delayed a few years if we don’t take “The Business End of Open Data” seriously.
The Commercial Opportunities in Open Data
Last week I attended O’Reilly’s Gov 2.0 Expo in Washington, DC. All in all a pretty good event (few organizers run conferences as smoothly as UBM/O’Reilly).
For obvious reasons I was there mainly to get the heads up on any Open Data efforts that I might not know about yet and to meet with like-minded people from all over the world.
Not surprisingly, the attendees were largely from the public sector, but there were also several suppliers and a few start-up companies that are working in this space – signs that the private sector is starting to realize that something big is about to happen here.
In one of the better sessions, Clay Johnson from the Sunlight Foundation talked about Truly Open Data. During Q&A there were several questions about how the private sector could be a part of the whole Open Data thing. Where the commercial opportunities were?
In the discussion that followed, the theme – and in fact this was the gist I got from most of the private sector people I met there – was that the opportunities somehow lie in assisting the public sector in opening their data. To be a supplier or consultant to government agencies, municipalities and other public entities as they open their data.
Sure, there will be projects. Sure, there is room for some new products to facilitate that. But I think this is really missing the point.
The real opportunity
The revolution here is that an enormous amount of valuable data is becoming easily and freely available all over the world. Some of this data has never been made public before and certainly not this accessible. In gathering this data lie thousands – no – probably hundreds of thousands of man-years, whose output has until now only been used to a fraction of its potential. Imagine the value in all that work, in all that data!
And this data has real, practical, monetary value to virtually every business, household and individual. But only a tiny fraction of them know that yet.
The real commercial opportunity in Open Data lies in helping people discover all this data, see its potential and realize how they can make use of it to run their businesses better, make better decisions and identify new opportunities.
DataMarket.com is now live!
Wednesday May 12th was a big day for us. After 18 months of development, it was finally launch day!
We are proud to present our new web site: DataMarket.com
In short, DataMarket is a data portal that gives access to statistics and structured data from various public and private sector organizations. This makes the data accessible in a single place enabling users to search and compare, link time series to news events and download any selected data in a format suitable for use elsewhere, e.g. in Excel.
Currently, DataMarket only holds data on Iceland, but as the name and domain imply, that is just our starting point.
Our current data sources include:
- Statistics Iceland
- Central Bank of Iceland
- Directorate of Labour
- Icelandic Property Registry
- Icelandic Tourist Board; and
- National Energy Authority of Iceland
As of now, you have unlimited access to all this data through DataMarket. You will be able to browse and search more than 2.500 data sets, holding a total of more than 7 million time series on a wide range of issues, such as: the average temperature in Reykjavik, births by months since 1853, unemployment rates, geothermal electricity production, the penetration of VCRs and DVD-players and the retail price of oranges to name a few.
Unfortunately some of the data on DataMarket is only available in Icelandic, as some of the data providers don’t publish their data in any other language. If you’re interested in something particular and can’t find it, just let us know and we’ll do our best to help you.
How can I make use of DataMarket?
That depends entirely on your profession, your interests, and the decisions you are facing, but we are confident that anybody with interests related to Iceland will be able to use DataMarket to learn new things and gain new insights about the country.
Here are a few more examples that might inspire your use:
- Comparison of the price of bread, sugar and soft drinks
- Total turnover in credit card usage
- Imports of new and used tires
- Release of greenhouse gases
- Protected areas and national parks
- Overnight stays of Dutch and British citizens in Icelandic hotels
- The history of music sales
This video will give you a quick introduction to the basic functionality of DataMarket:
Stay in touch!
As we have just launched DataMarket, we know you will encounter some bugs and quirks and get some ideas on things we could do better, data that you’d like to see added and so on. Whatever it is, we want to hear from you, so please participate in the online discussions or drop us a line: help@datamarket.com.
If you’re interested in knowing more about DataMarket, partnership opportunities or in fact anything else just contact us.
Thanks for being a part of our history. Please forward this mail to anybody you think might be interested.
Enjoy DataMarket!
Open Data in Iceland: Financial Meltdown, Open Data and Transparency
The following was originally posted as a guest post on the Open Knowledge Foundation Blog.
The Wave of Open Data
Open access to public sector information, or simply “Open Data” is gathering a lot of momentum these days. High profile initiatives such as the Obama administration’s Data.gov; and UK’s Data.gov.uk; whose main advisor is none other than Sir Tim Berners-Lee are leading the way towards the more transparent and open governments of the future. Fantastic examples of data journalism by leading newspapers such as the New York Times and The Guardian show us how the power of turning data into information can be put into the hands of readers themselves. And nobody has better demonstrated the power of Open Data than statistics super hero Hans Rosling in his famous TED-talks.
The trend is obvious, and even though its still early days, there is no doubt in my mind that this trend will spread from these few prime examples to the rest of the world. I’m pretty confident that a decade from now, any self-respecting government and multi-national organization in the world will have established an Open Data policy. To me, the rules are quite straightforward: “Any government data should be open unless other, higher priorities – such as privacy or national security – indicate otherwise”. There are obviously gray areas, but governments must flip around the ruling mind-set of “keeping data closed unless there are good reasons to open it” and instead “make data open, unless there are good reasons to close it”. This will make governments more accountable, leave less room for corruption, heighten the quality of any debate and empower societies and their respective economies.
In this piece I will try to explain the status of open data in my home country of Iceland.
Early days

The first hints of a real Open Data mindset within the government probably dates back to the late 1990s, when Statistics Iceland – the local Statistics Office – concluded that their work was more valuable with open access to anybody, than in their then current model of selling access to their individual publications. This was made possible with the new delivery channel that was the internet, bringing down the cost of publication and distribution. This change was a success and today, many Icelanders, ranging from students to business leaders use data from Statistics Iceland to solve their everyday tasks and assignments.
Since, the topic has occasionally surfaced around limited topics of data, such as geospatial and mapping data, held by The National Land Survey of Iceland, fishing data held by the Marine Research Institute and weather data held by the Icelandic Met Office.
In 2006 the Icelandic “information act” was reevaluated and an updated legislation passed. In that process the reuse, redistribution and use of data by 3rd parties was openly discussed, but no major steps were taken.
In late 2007, an informal lobby group “Opin gögn” – which literally translates “Open Data” – was formed (full disclosure: I was a part of this initial group, and I may overestimate its importance in this story). Its purpose was to educate the Icelandic public sector and Icelanders in general about the Open Data movement, which was becoming quite visible in the “nerd” media at the time. In the spring of 2008, the group opened a Wiki-site – opingogn.net; (Icelandic only) with a reference to OKFN’s Open Knowledge Definition, and later a translation;. The site also listed various public and private sector entities that held important and interesting data, listed their databases / data sets and if and how that data could be accessed. An organization called Félag um stafrænt frelsi á Íslandi (meaning “The Foundation for Digital Freedom in Iceland”) or FSFÍ for short also started actively lobbying on similar notes. These ideas got some media attention and sporadic interest by different organizations and groups, but that interest can hardly be described as widespread.
The financial collapse
In October 2008 the Icelandic financial system imploded. A banking system that was more than 10 times larger than the nation’s GDP all but vanished in 3 days. The currency devalued roughly 50% to our most common trading currencies, inflation went into the double digits, strict currency restrictions were put in place, the stock market lost over 90% of its value and foreign debt increased dramatically. All in all – rather a mess!
On top of this, investigations of the crash have continued to reveal negligence by regulators, mistakes in governance, failure by government institutions to take action, incredibly unfortunate series of events, miscommunication and seemingly fraudulent and criminal actions by key players in the Icelandic finance sector.
Not surprisingly, this has led to a demand for more transparency, more access to public data and more effective communication by the government. All of a sudden Open Data is seen as a high priority among various lobby groups, branches of government and in restoration planning. Non-governmental think-tank Ministry of Ideas – founded last year by a group of local entrepreneurs – currently lists Open access to public sector data as its #1 priority. Government and opposition politicians have learned the basic reasoning for Open Data and regularly refer to it in speeches. In December a rare cross-party parliamentary proposal (the first step in passing new legislation) was made, proposing a “default open” strategy for any public sector data. The Prime Minister’s Office has formed a committee that is to propose changes and improvements in legislation and suggest how to define the boundaries between data that is to be open and data that shall remain closed.
On a related note, a new initiative – the Icelandic Modern Media Initiative (IMMI) – has emerged. Involving prominent figures from the Wikileaks-project; and members of aforementioned FSFÍ, this initiative proposes to change Iceland into a sort of “Journalistic free state”, where the legal environment would be perfect for investigative journalism, whistleblowers and protection of journalists’ sources, to name a few characteristics. Not surprisingly, this initiative has received a fair amount of media attention (BBC, NY Times, The Guardian, GigaOM, …) and these main ideas have also been passed as a parliamentary proposal. Needless to say it is likely to seriously boost any Open Data initiatives were it to pass as legislation.
Meanwhile…
But there are also Open Data sprouts out there that have nothing to do with the top-down actions of the government or parliament. More and more organizations and private sector companies are buying into the ideology of open data and have started their own efforts. A recent example includes cooperation between the leading yellow pages company – Já; – and The Árni Magnússon Institute for Icelandic Studies, Iceland University’s research center for the Icelandic language. Sponsored by Já, the institute has made openly available (not fully Open as per the Open Knowledge Definition, at least not yet) a valuable language database that is a crucial ingredient for various language technology software such as spell-checkers, automated translation software and even Icelandic language word-games. Já also sponsored a prize competition to encourage developers to make use of this data. The response has been great, and the results of the competition are to be announced this Tuesday.
Even the private sector has started opening data. Some financial institutions – not the public’s favorite at the moment – have started publishing far more detailed information about their actions in order to regain trust and show that they have nothing to hide. Examples include pension fund Frjálsi lífeyrissjóðurinn, operated by one of the fallen (and now restored) banks. The fund is now publishing a detailed account of their assets online available to anybody.
All in all, Iceland is not that far down the Open Data path – yet – but it seems like the extraordinary events of the financial collapse may push us fast towards the forefront of the Open Data tidal wave. There probably be dragons on the way, but we also have a lot to gain!
Iceland: Restoring trust through open data and “brutal transparency”
Foreigners used to know one thing about Iceland. Since last autumn, they tend to know two:
- Iceland is green and Greenland is ice
- Iceland is bankrupt
Neither is fully accurate. In fact:
- Iceland is greener than Greenland, but the dominant colors are black and gray of volcanic origin
- Iceland is not bankrupt, but experienced one of the most spectacular economic crashes any Western country has since the second World War.
The Crash
A banking system that was more than 10 times larger than the nation’s GDP all but vanished in 3 days in early October. The currency has devalued roughly 50% to our most common trading currencies, inflation has been in the double digits for over a year, serious currency restrictions have been put in place, the stock market has lost over 90% of its value, housing prices are falling rapidly and foreign debt has increased dramatically.
I guess you could call it “rather a mess”.
On top of this, investigations of the crash continue to reveal negligence by regulators, mistakes in governance, failure by government institutions to take action, incredibly unfortunate series of events, miscommunication and seemingly fraudulent and criminal actions by key players in the Icelandic finance sector. And the investigations have barely begun!
As you can imagine, following such a catastrophe we have a serious trust issue.
The public hardly trusts the government (one has already fallen in public protest), let alone the semi-resurrected financial sector. In fact, most commercial activity is seen as highly suspicious and any sign of wealth is seen as a clear indication of wrong-doing.
This trust issue reaches abroad. Many Icelandic businesses are met with suspicion judged on origin alone and it is easy to get the feeling from recent developments that foreign governments don’t fully trust ours.
This level of distrust will destroy any rebuilding efforts. Restoring trust is the single most crucial thing for us to be able to move forward.
Brutal Transparency
Sometimes people talk about “brutal honesty”. I believe that the way to restore trust lies in “brutal transparency”. Iceland, more than any other nation needs to reinvent the way the government operates and the way business is done.
The public sure is ready for it. Many of us feel ashamed and to an extent responsible for what has happened as we failed to keep a watchful eye out and voice our concerns.
Earlier this month our company – DataMarket – together with the leading local news portal mbl.is launched an interactive model (unfortunately Icelandic only) of a giant loan agreement the parliament is debating. Almost 25 thousand people dug in. A nation where 10% of the population is eager to explore and experiment with a financial model of an international loan agreement, is a nation that is clearly on its toes about current affairs and will not be betrayed again. People crave data and understanding.
We need to show that we have nothing to hide – neither to each other nor to the rest of the world. Luckily we are extremely well equipped to do so. I’m pretty sure this is one of the best-measured economies in the world. For another project, we’re monitoring over 7 million variables measured as time series and recorded by the various government institutions. Almost all transactions, even at the retail level are real-time (transactions between banks happen instantly) and electronic making it a virtually cash-free economy for the last decade or so. Businesses as well as the infamous banking sector are running state-of-the-art IT systems and could easily meet the demands of such an arrangement.
“Brutal transparency” is – in other words – a low hanging fruit for us. The hard bit is introducing this new way of thinking.
A few days after the crash I outlined on my personal blog a few ideas about how total transparency was the future of finance. I believe this now more than ever, but I also believe it should reach all branches of the government and business in general. For example:
- Publicly traded companies should not file quarterly reports, they should file every day.
- Company ownership should not be a secret, it should be publicly available information.
- Every bill that the government pays should be open data.
- Composition of managed funds should be available in real-time to any customer.
- Retailers should be required to publish their prices online in real-time allowing for meaningful price comparison.
- Any data gathered or recorded by the government should be open data, unless privacy or other higher-order priorities prevent it.
- Every single national budget item should be tracked in real time demanding explanations if they are significantly off-target.
- …this list could go on.
And efforts should be made to make all of this easily available and understandable to locals and foreigners alike.
The Icelandic Model
I have met with government officials and public sector management that truly get the concept of transparency and open data, believe in its power and want to make it happen. But further education is needed. The sprouts are there but the field is not blooming.
Businesses also need to understand that in the current climate transparency is a competitive edge making them more desirable to do business with, invest in and trust their services.
A serious effort in open data and transparency could not only restore the trust that has been ruined, but also make the “Icelandic method” a model for others to follow.
Iceland’s Urbanization (1901-2009)
As a part of our development efforts we’re experimenting with different types of data and ways to represent them.
Currently we’re mainly working with Icelandic economy and society data. We decided to try to put the urbanization that happened over the last century or so in perspective by creating an animation of municipalities and their population. The animation also happens to show activity in municipalities’ splitting and merging, especially in recent years.
Each bubble represents a single municipality and the size of the bubble (its area to be exact) represents the population.
Click the video to play the animation. I recommend full screen viewing for all the details:
About the project
The population data we’re using comes from Iceland Statistics. Location data comes mainly from Geonames, with a few additions and corrections of our own. Data about mergers and splits of municipalities comes from Iceland Statistics and Wikipedia.
As municipalities’ population data was only gathered once per decade until 1980, we’ve had to extrapolate some values to fill the gaps, so the map should not be seen as scientifically accurate. The idea is to show the big picture in the urbanization process.
Thanks to Samsýn for the map we used to make the background, and to Gísli Sverrisson (also known as “dad”) for help with the map projection algorithms.
The coding was done in Processing.
Representing the population of – what may be a relatively large – municipality as a single point is not entirely accurate, but will nevertheless give a decent picture of the development in the country as a whole. A more fine grained (and fully accurate) population projection would involve plotting single farms and addresses, will involve a lot more data and preparation work and will await another day … maybe.
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For other DataMarket projects, see our portfolio.
Iceland & Energy – presentation w. John Perkins
Just finished my previously mentioned presentation on Icelandic energy data. Some 250-300 people showed up – mostly to listen to John Perkins obviously.
Interesting audience to say the least, but a lot of fun!
My DataMarket piece went well – and putting it together at least helped me put some things in perspective. The slides are included below. As before, full screen viewing is recommended. Enjoy:
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Previously posted here
Iceland & Energy: Upcoming presentation
I have been invited – on behalf of DataMarket – to give a presentation at the University of Iceland on April 6th.
The occasion is a small conference due to the visit of “Economic Hit Man” John Perkins to Iceland. Perkins is here to attend the premiere of “Dreamland“, a documentary on the effects that large-scale energy projects – especially for aluminum smelting – have had on the Icelandic economy and society in general.
My role will be to present data on the Icelandic energy sector and try to visualize some of the developments that can be seen in this data. I’ll try to cover some of the developments the film talks about, but also the obvious benefits that an abundance of renewable energy brings. I’ve already seen several data sets that give us laymen an interesting perspective on these things.
As a teaser I include below a few slides on the history of electricity generation in Iceland associated with key milestones in the building of our power plants. Be there on April 6th for more
(Full screen viewing recommended)
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Previously posted here
Icesave and Icelandic deposits
As DataMarket‘s Money:Tech gig (see previous entry) approaches, we’re starting to see all sorts of interesting data coming together to form our “DataMarket on the Icelandic Economy”.
Some graphs just speak for themselves. Here’s one that caught my eye today:
The numbers are millions ISK.
Note that these are only deposits in Icelandic banks and their immediate branch offices, not the subsidiaries of Icelandic banks registered elsewhere. It therefore only includes Icesave (UK and Netherlands) and a minority of Kaupthing Edge’s operations (Finland, Norway, Germany and Austria). See here.
We’ve marked the month Icesave is opened (UK branch). Another interesting breaking point in the graph is in early 2008. Guess what? Icesave Netherlands was started in May 2008. So, just before the crash – foreign depositors held more than half of “Icelandic” deposits (1,710 billion ISK out of a total of 3,123 billion)!
In our upcoming tool, users will be able to view and correlate a wealth of Icelandic economy time series and mark them with events and news headlines interactively. It will be a pretty powerful tool!
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Previously posted here
DataMarket at Money:Tech 2009

DataMarket will be doing a presentation at O’Reilly’s Money:Tech conference in New York in February.
I attended the first Money:Tech conference earlier this year, and I must say it’s one of my favorite conferences ever, so I’m greatly honored to be speaking there.
The topic of my presentation is “What an Economic Collapse Looks Like: The Icelandic Economy Visualized“.
As you’ve probably heard, Iceland suffered a near-total collapse of the banking system in October. Such a collapse would have been bad enough under normal circumstances, but with banks whose assets are 10x the GDP and directly account for almost a quarter of a country’s economy, the consequences are rather dramatic.
At DataMarket, we’ve been up to our necks gathering and visualizing Icelandic statistics and economical indicators, so I think we can tell a pretty interesting story. I really look forward to showing the elite of money-techies our work!
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Previously posted here

