Tag Archives: innovation

Established Businesses Can’t Innovate

Last week I co-hosted a session between a number of public sector data holders and a handful of the biggest existing players in the market re-using that same type of data. I’m deliberately vague about who those market parties were, and what type of data is involved, as it is not really relevant to my observation, and there is a still ongoing conversation with those organisations.

The session started from the idea that the public sector data holders could provide a much richer and real-time form of data on top of the usual stuff already available to third party re-users. We thought to discuss how that richer data should be shared to be easily used by the existing market.

As it turns out Christensen’s innovation theory seems to apply here: big vested interests are not in a position to innovate, as all their processes and resource allocation is geared to doing well or better what they are already doing well. Even if all people involved want it to be different, the existing structures will usually dictate otherwise. Case in point here was that the existing re-users currently have a lead-time of at least 6 months to incorporate new data in their products, and are not at all ready to handle real-time info (unless that real-time info is merely an overlay on their existing data). Also the users of their products may have up-date cycles of 2 years, rendering any real-time updates to their data useless.

The only third party in the room that seemed to say ‘bring it on’ was an open source community initiative. They however, as Christensen also predicts, will not be perceived as any threat to existing up-market players. At least not until it’s too late for them. It is this open source alternative that is also most likely to reach whole groups of new types of users of the data.

It’s interesting as well to see again that ‘release it and they will come’ is not a viable way to open government data. Releasing it needs to be accompanied by these type of conversations, and capacity building by (new) market players and citizens, so that the potential of open data can be realized.