Why Should I Share? Exploring Benefits of Open Data For Private Sector Organizations

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Why Should I Share? Exploring Beneﬁts of Open Data for Private Sector
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Benefits of Open Data
This is the author’s version of a work that is published through the following outlet:
Enders, T.; Satzger, G.; Fassnacht, M.; Wolff, C. (2022): Why Should I Share? Exploring Benefits
of Open Data for Private Sector Organizations. PACIS 2022 Proceedings. 75.
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Why Should I Share? Exploring Benefits of

Open Data for Private Sector Organizations
Completed Research Paper
Tobias Enders Gerhard Satzger

Karlsruhe, Germany Karlsruhe, Germany
tobias.enders@kit.edu gerhard.satzger@kit.edu
Marcel Fassnacht Clemens Wolff

Karlsruhe, Germany Karlsruhe, Germany
marcel.fassnacht@kit.edu clemens.wolff@kit.edu
Abstract
Increasing competitive pressure and digitalization demand organizations to rethink their
approaches to collaboration and innovation. By permitting organizational boundaries to
become permeable, firms have started to allow the in- and outflow of knowledge to enable
new forms of value creation. This also applies to data as a form of knowledge. Yet, firms
still struggle to systematically evaluate the benefits of engaging in open data initiatives.
Hence, a comprehensive and empirically grounded model is needed. Therefore, we apply
an exploratory research approach by triangulating insights from a literature review,
expert interviews, and multiple case studies to derive three clusters of benefit concepts:
internal improvements, innovation driver, and visibility & participation. Our work
contributes to a better understanding of open data and lays the foundation for
quantitative empirical studies. For practitioners, we outline a novel path to extract value
from data and, hence, call for additional investments into open data initiatives.
Keywords: Open Data, Benefits, Data Value, Data Monetization, Private Sector
Introduction
For many decades, incumbent firms exploited their competitive advantage in existing markets. With
globalization penetrating virtually every industry sector, leading to an increased level of competition,
organizations have to rethink their approaches to innovation and collaboration. The first decade of this
century marked the starting point of firms letting their organizational boundaries become permeable. To
boost a company's innovation capabilities, the in- and outflow of knowledge as part of open innovation
initiatives became not only accepted but encouraged by industry leaders (Chesbrough 2017). Open and
sharing initiatives soon extended to other objects such as source code (Henkel 2006), which enabled
collaboration in digital ecosystems and led to new forms of value creation (Schlagwein et al. 2017).
With the era of digitalization in full swing, companies create and store vast amounts of data (Yang et al.
2017). While firms pursue various short-term strategies to capture the value hidden in their data assets
(Wixom 2014), long-term strategies to monetize data have received only little attention. We observe across

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industry sectors that companies have started to engage in open data activities by making part of their data
assets available to the public at no charge. Current examples include German airline group Lufthansa
(2020), British retailer Tesco (2020) and Swiss telecommunications provider Swisscom (2020).
While open data in private sector organizations is slowly gaining momentum, the level of investments
remains low. Organizations struggle to understand and evaluate potential benefits of open data as these are
not as obvious as in traditional data monetization strategies (Enders et al. 2021). This struggle is further
driven by a lack of evidence of open data's value-in-use, which is expressed in the open data value paradox
(Jetzek,2017). This phenomenon describes a fundamental predicament between the data provider and the
data consumer where data providers hesitate to invest in technology and people given a lack of evidence of
value created through open data. At the same time, entrepreneurs as data consumers, such as start-ups or
freelance developers, hesitate to use open data for new services or entire business models given the
uncertain data perpetuity (Jetzek 2017).
This paradoxical situation calls for additional transparency of the benefits that may be derived from
engaging in open data. We argue that the development of an understanding of the value created for the data
provider is a crucial step to resolve the paradox and to enable value co-creation in a digital ecosystem. We,
therefore, aim to disentangle the open data value paradox by providing evidence of the potential value
created that accrues to the data provider when engaging in open data. Accordingly, this work is guided by
the following research question:
What are potential benefits for the data provider from engaging in open data?
Given the novelty of the phenomenon in the private sector, we opt for a model on potential open data
benefits. Due to the explorative nature of the topic, we apply qualitative research methods by combining
three distinct data sources, a structured literature review, semi-structured expert interviews and multiple
case studies, in order to derive a theoretical model on potential open data benefits. We thereby aim to
contribute to the body of knowledge on open data by deepening the understanding of how providing assets
free of charge contributes to value creation. From the empirical data, we identify nine concepts grouped
into three clusters that represent the benefits a data provider may experience. In particular, we find that
open data (1) contributes to internal improvements, (2) acts as an innovation driver and (3) enhances the
firm's visibility towards external stakeholders. For practitioners, we provide concrete evidence of the
potential of open data to create value for the firm and, hence, offer an additional path to monetize data
assets.
The remainder of the paper is structured as follows: We first introduce the fundamentals of open data as
the foundation for our work. An introduction into the research design is provided in the research approach
section followed by the results of the study. Afterwards, we elaborate on a real-world use case to illustrate
benefits of open data followed by a discussion. We conclude the paper with managerial implications,
limitations and a research outlook.
Fundamentals of Open Data

The notion of organizations opening up their boundaries to allow the in- and outflow of data, information
and knowledge has received a growing amount of attention in the past two decades (Schlagwein et al. 2017).
Several new research fields have emerged that focus on exploring the phenomenon of “openness”. In an
attempt to structure the various research streams and to provide guidance to researchers, Schlagwein et al.
(2017) propose a framework for openness that also allows to position open data. The framework groups
extant literature into four distinct clusters: Open resources, open processes, opening effects, openness as a
higher order concept. Open resources act as input to open processes such as open innovation and
crowdsourcing. While open data is considered a (static) resource in the context of this framework, it
requires a dynamic (open) process and opening effects (e.g., open government, open science) to exploit its
value.
Over the years, a multitude of definitions of open data have emerged. While each definition comprises
elements that are specific to their application domain, they share certain characteristics. At its core, open
data should be available to anyone for use and redistribution at no charge (Kassen 2013). To allow for easier
consumption of the data offered, some argue that the data must be available in a structured format (Link et
al. 2017). Other authors additionally require the data to be available in a machine-readable format (Zotano

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and Bersini 2017). Reflecting that open data has originated in the public domain, initial definitions show
strong references to the characteristics of open government data. As open data spreads to the private sector,
later definitions reflect the potential for new use cases. For instance, Jetzek et al. (2013, p. 2) suggest that
open data must enable the use “across different fields of endeavor (e.g., commercial and non-commercial)”.
For the purpose of this paper, we follow a widely accepted concept that describes open data as a form of
content that can be freely used, modified, and shared by anyone and for any purpose (Open Knowledge
Foundation, 2020). While there is a general consensus that the unlimited use and redistribution of open
data should be allowed, we observe that a growing number of private sector organizations force license
restrictions onto the data consumer. By that, commercial reuse of the data is often prohibited, which dilutes
the meaning of data being truly open.
The origin of open data traces back to the public sector. Driven by changes in legislature (e.g., European
Parliament 2003; Obama 2009), public authorities started to make information available to the general
public. The motivation for governments to engage in open data are manifold and so are their expected
outcomes. An overarching objective is the increase in the level of transparency, which may lead to less
corruption (Bertot et al. 2010) and foster a culture of openness across various levels of government
(McDermott 2010). Also, open data may bring attention to local political issues (Kassen 2013) and offer a
way to foster the democratic participation of citizens through new models of collaboration (Johnson and
Robinson 2014). Revealing public information may even shape the foundation of new business models that
connect the public and private sector (Janssen and Zuiderwijk 2014). Despite the opportunities arising from
engaging in open data, there are also barriers that slow down or prevent the implementation process. For
instance, the level of task complexity, poor information quality and technical limitations may impact the
release process (Janssen et al. 2012). Data consumers of open government data perceive the unknown data
quality and unclear licensing guidelines as major obstacles (Martin et al. 2013).
For open data to unfold its full potential, a digital ecosystem must emerge (Enders, et al. 2020). The
ecosystem defines the space in which data provider and data consumer can interact. By integrating their
resources, such as data, skills, and ideas, value is co-created (Vargo and Lusch 2008). As a result, open data
may not only contribute to economic (Janssen et al. 2012) but also societal value creation (Cabitza et al.
2020).
Research Approach
To develop a comprehensive model on open data benefits, the combination of extant scientific literature
with practical knowledge is of particular importance. To that end, we follow a qualitative research approach,
which is built upon three distinct pillars; each representing a separate research method. An overview of the
research approach is illustrated in Figure 1.
Figure 1. Research Approach

Within the first pillar, we conduct a structured literature review to capture existing knowledge on open data
benefits across domains. Given that open data has its roots in the public sector, the majority of the potential
benefits identified may be attributed to open government data. Since we are especially interested in benefits
of open data for private sector organizations, we enrich those findings with two additional sources of data,
namely an expert interview study and multiple case studies. Evidently, the interview and multiple case
studies focus on private-sector organizations. Since interviews and case studies allow gaining first-hand

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insights into emerging phenomena, they are well suited to expand our knowledge on open data in private
sector organizations. We extract insights from these two data sources by conducting a qualitative content
analysis. In particular, an initial set of codes, representing the benefits, are derived through the literature
review. Subsequently, the list of codes is further refined and extended as new insights from the interviews
and multiple case studies emerge. Hence, the final comprehensive model reflects the results of a qualitative
content analysis based on three data sources. In the following, we describe the research design for each of
the three data sources individually.
Literature Review
We conduct a structured literature review (Webster and Watson 2002) as the first pillar of developing a
comprehensive model on open data benefits. Whilst exhaustiveness cannot be guaranteed for a literature
review, the filter criteria have been chosen to ensure coverage of extant literature in the field (vom Brocke
et al. 2015). Given the interdisciplinary nature of open data with its roots being in government research,
we conduct our search in interdisciplinary databases in addition to outlets with an IS focus. In particular,
we select ScienceDirect and Scopus as interdisciplinary databases and complement the search results with
articles from AISeL and the Senior Scholars' Basket of Journals. The search fields include the title, abstract
and key words without limiting the search results to a particular time span. The following search string is
applied:
("open data") AND (benefit* OR profit* OR gain*)
To account for the contemporary nature of open data, we also include conference proceedings in addition
to journal articles and books. We further limit the search results to articles published in English and exclude
articles which only provide access to the abstract. The search yields 1,231 papers; a manual review of the
paper titles and abstracts reduces the number to 27 relevant papers. The significant reduction of papers
included can be further traced back to excluding the extensive number of articles with a focus on domains
like open government, open education, open data usage for research space exploration and exclusion of
papers with a deep technical focus on open data. After fully analyzing the remaining papers and after
removing duplicates, 19 papers remain. A forward and backward search adds three additional relevant
papers, completing our literature base of 22 articles. Of those, 77% have a focus on open government data,
indicating that a particular focus of open data research has been in this domain. A summary of the papers
found by database is provided in Table 1.
To further process and analyze the papers, we conduct two coding cycles (Saldaña 2009) while initially
taking an author-centric approach (Webster & Watson 2002). The first cycle is characterized by an open
coding approach to account for the explorative nature of the study. Starting without a pre-defined list of
codes, we extract the benefits towards open data from each paper. Initially, 22 codes are derived. During
the second coding cycle, we apply axial coding; codes are aggregated into categories and the relationship
between categories and individual codes are defined. Two researchers independently conduct the first and
second coding cycle to ensure consistency of the results. Discrepancies in assigned codes are discussed and
mutually resolved.
Science Direct Scopus AISeL Basket
Journals
Total Papers 105 1,107 13 6
Selected Papers 8 12 6 1
w/o Duplicates 19
Fwd/Bwd 3
Search
Total Papers 22
Table 1. Literature Search
The codes derived through the structured literature review represent the foundation of the data analysis for
the second and third pillar of the data sources – expert interviews and case studies. In the following, we
discuss the process of data collection and data analysis.

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Expert Interviews
Given our research objective to derive a comprehensive model on open data benefits, we must cover the
various domains where the open data phenomenon emerges. While the literature review primarily provides
input on open government data benefits, little is known about benefits in private sector organizations.
Hence, we conduct a series of expert interviews to obtain first-hand knowledge from organizations that
have been engaging in open data.
We chose a semi-structured interview approach since this method combines structure with flexibility in the
process (King 2004). For the selection of the interview participants, we follow a criterion-i purposeful
sampling approach (Palinkas et al. 2015). The criteria are defined such as that the experts must have direct
knowledge of working with open data in either private sector organizations or related associations.
Technical as well as business roles are in focus of our interview study to reflect on multiple perspectives
towards open data benefits. The interviews are either conducted in-person or via phone call and last
between 45 minutes and one hour. All interviews are recorded and transcribed for further analysis. An
overview of the interviewees, their roles,industry designation and supplemental information on the
organization itself is provided in Table 2.
# Job Role Industry Annual revenue Employees

(USD in 2021)
1 Team Lead IT Chemicals 50-100 bn >100,000
2 Chief Data Officer Energy 10-50 bn 10,000-50,000
3 Head of Big Data Strategy Energy 50-100 bn 50,000-100,000
4 Chief Data Officer Banking 10-50 bn <10,000
5 Head of Data-Based Automotive 100-150 bn >100,000
Business Models
6 Head of Data Strategy Automotive 50-100 bn 50,000-100,000
7 Business Data Manager Logistics 1-10 bn 10,000-50,000
8 Head of Software Inter-Trade NA <10,000
Applications Organization
9 Head of Data Consulting Non-Governmental NA <10,000
Organization
Table 2. Overview of Interviewees
Each interview is structured into three parts: First, we collect general information on the interviewees and
their tasks and responsibilities within the organizations. In the second part, we ask questions on what
motivated the organization to engage in open data in the first place and how they approached the
implementation of such a strategy. The third part of the interview is dedicated to the benefits that have been
derived through open data and how the organization leverages those in day-to-day operations. To account
for the explorative nature and to engage the interviewees to reveal their experiences, knowledge, and
insights without limiting boundaries, we particularly applied rather open questions within these three parts
of each interview.
The interviews are analyzed in an iterative manner. The benefit codes derived during the structured
literature review shape the foundation for the initial structural coding cycle of the expert interviews
(Saldaña 2009). As we identify new benefits in the empirical data, new codes are derived and added to the
coding tree. We apply axial coding for the second iteration to resemble identified codes and to relate
categories and sub-categories accordingly. Glaser (1978) emphasizes the importance of the axial coding
since it ensures the sharpening of the codes to achieve the best fit towards the research objective. To ensure
consistency in the coding process, a second independent researcher also codes all of the interviews.
Discrepancies between the researchers are discussed and mutually resolved. The software MAXQDA is used
to support the interview coding process.

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Case Studies
To further complement the results derived from the literature review and expert interviews, we conduct
multiple case studies. A case study research design is in particular suitable to observe a contemporary
phenomenon such as open data in an explorative setting (Yin 2018). To address criticism that case studies
lack generalizability (Dubé and Paré 2003), we derive our findings from multiple case studies instead of
from a single case study.
To further broaden the view on open data benefits across industry sectors, we select an industry that has
been leading open data initiatives. In particular, all three cases chosen operate in the travel and
transportation sector. By analyzing early adopters of open data in the commercial sector, we are able to
observe how benefits have evolved over time. All three companies generate a major part of their revenue by
offering travel and transportation services by utilizing self-owned assets. None of the case companies solely
operates under a business model of being a platform provider nor are the companies considered “digitally
born”. For comparability reasons, we ensure that all cases (1) offer an open data portal to the public, (2)
their open data efforts have moved beyond the experimental stage and (3) the open data initiative has been
underway for at least three years. As researchers, we assume a positivist approach where we take a passive
and neutral perspective (Dubé and Paré 2003).
We chose a theoretical sampling approach as this allows us to gain insights while illustrating the logic of
underlying constructs (Eisenhardt and Graebner 2007). A database is created to collect all data related to
the cases in one place. To ensure the validity of our results, we rely on multiple sources of evidence and
triangulation (Eisenhardt 1989; Yin 2018). A brief overview of the companies' characteristics is provided in
Table 3.
# Type Annual Revenue Employees Subsidiaries
(USD in 2021)
1 Airline Group 10-50 bn 10,000-50,000 >20
2 Rail & Train Operator 10-50 bn >100,000 >500
3 Rail & Train Operator 5-10 bn 10,000-50,000 <10
Table 3. Overview of Cases
The data collection process consists of multiple phases and sources. In addition to collecting publicly
available information such as announcements, press releases, social media appearances from the
company's website and external media, we conduct two rounds of semi-structured interviews. The first
round serves to develop a better understanding of the organization's open data strategy in general and the
reasons that triggered their engagement in open data in the first place. Insights from first-round interviews
inform the second round and allow following-up on open questions and to validate initial assumptions. All
interviewees are directly involved in the open data initiative of their organization either in a business or
technical role. An overview of the interviewees, their roles within the organization, and supplemental
material taken into account is shown in Table 4.
# Case Job Role Supplemental Material
1 1 Senior Development Manager
Blog, Press Releases
2 1 IT Architect
3 2 Software Engineer Blog, Social Media Posts,
4 2 Data Scientist Press Releases
5 3 Data & IT Architect Press Releases, Social Media
6 3 Head of Data Strategy Posts
Table 4. Overview of Cases Interviewees

All interviews are conducted via phone call and last between 30 and 45 minutes. In four cases, the
interviewees allow the interviews to be recorded and later transcribed for further analysis. In the remaining
two cases, the interviewees ask the researchers to take notes. For the analysis of all data collected –

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interview transcripts as well as supplemental documents – we follow a structural coding approach (Saldaña
2009). The benefit codes derived from the literature review and expert interviews serve as a foundation for
the coding process, which is supported by the software MAXQDA. By observing cases over a longer period
of time and triangulation, additional insights of how open data benefits evolve over time are derived and
added to the coding tree. Upon conducting another axial coding cycle to sharpen codes and categories, a
total of nine codes split into three categories remain.
Comprehensive Model of Open Data Benefits

Organizations have to make a strategic decision on how to exploit the value of their data. They may decide
to fully conceal their data assets and only use it for internal purposes or decide to open up their boundaries.
Engaging in open data offers firms an additional option to extract value from data and indirectly monetize
it in the process. However, to arrive at this decision, firms must weight risks and benefits against each other.
Based on the findings from multiple data sources, we derive a comprehensive model on potential benefits
of open data in private sector organizations that affect the firm itself and its surrounding ecosystem. The
benefits can be assigned to three distinct clusters: Internal Improvement, Innovation Driver, and Visibility
and Participation. In the following, we describe for each of the clusters how benefits are derived from
engaging in open data. A summary of the benefits clusters and their subcategories is shown in Figure 2.
Internal Improvement
While extant literature focuses on the external implications of an open data strategy, internal benefits are
oftentimes neglected. We find evidence that by launching an open data initiative, organizations benefit
internally in several ways. As such, we see that the workforce and corporate culture is positively impacted
along with advances in the areas of process and data management. In the following, we elaborate on each
of these and explain how open data helps to strengthen the organization from within.
People and Culture
A rather indirect effect is the way that an open data initiative impacts the way that employees work and
behave. For instance, we observe that the workforce benefits from acquiring new skills in (big) data and
interface management. We find that employees that are intrinsically motivated to engage in an open data
initiative will acquire the required skills quickly and voluntarily contribute their own time. The IT & Data
Architect from a Rail & Train company recalls: “(…) the employees from our department that participated
[in the open data project] learned a lot, especially how to handle the data”. For the employer, there is an
added benefit: Employees that have acquired new skills can support other data-related projects and share
their knowledge with others. In order to realize those benefits, however, the employer must allow employees
to dedicate time to acquire new skills as this is an investment into the future. Evidence shows that a lack of
management support may even bring the entire open data initiative to a standstill.
The notion of data being shared with external parties triggers a shift in the mindset of employees towards
sharing and collaboration. Once people observe that their senior management promotes external data
sharing activities, they start to follow this role model and to adapt their behavior. “(…) this also helps us
internally to amend the thinking and attitude [of employees]. One element of open data certainly is cultural
change that happens in the company” explains a Business Data Manager of a Logistics firm. Evidence shows
that parts of the workforce abandon their siloed thinking and start collaborating with other departments
within the organizations. There is an increase in the awareness that sharing resources, such as data,
contributes more value to the overall organization compared to keeping it to oneself.
The mindset shift even goes beyond sharing and collaboration efforts. We observe that employees start
paying more attention to data as a strategic asset. Especially in historically grown organizations that go
through the process of digital transformation, large parts of the workforce still perceive data as a something
that does not impact their job. With open data strategies being implemented, however, employees start
realizing the role data plays in being innovative and understanding the customer demands. Furthermore,
there is an increased level in appreciation for good data quality since poor quality and unstructured data
oftentimes inhibit use cases proposed by the business. A Business Data Manager explains the importance

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of data quality for internal and external use: “We need to learn in which format to present the data and to
curate it so that the target audience takes notice of it and can do something with it”.
Figure 2. Overview of Open Data Benefits
Process
Organizations tend to define individual processes for every requirement that arises in IT or business
projects. Despite ongoing efforts to standardize and streamline processes across departments, most
organizations still suffer from complex processes that are costly and difficult to manage. With the
introduction of open data, we see evidence that, for instance, software development processes get simplified
and contribute to cost savings. In a concrete case, an airline group setup an application programming
interface (API) for external developers to consume open data. However, not only external developers, but
also internal development teams make use of the interface that provides real-time data in a curated format.
By having access to a data platform that provides high quality data, IT projects were able to shorten their
development cycles for new applications and services by up to 50% and, therefore, to expedite the time to
market. Hence, we observe that the introduction of an open data strategy has triggered a series of events
leading to actual cost savings, underscoring the potential of open data to monetize this strategic asset.
A holistic perspective on data management may be referred to as data governance. While the term “data
governance” is broadly discussed across IT departments, evidence shows that only a few companies have
developed an integrated plan in form of a long-term data strategy. We find that organizations starting to
engage in an open data strategy also start thinking about data from a strategic perspective. In order to reveal
data as open data, certain prerequisites must be met. For instance, the data must meet certain quality
standards, an interface to external developers must be provided and data security measures must be in
place. All of these points require the company to look at data from a holistic standpoint, which may trigger
the creation of a data strategy on a corporate level. With a data strategy in place, data management
processes get streamlined and operational efficiencies can be captured. In multiple instances, we find
evidence that open data merely serves as a trigger for a chain of events that create benefits. The implications
of these events prove to have an impact on driving internal efficiencies and cost savings.

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Data Access
Having unobstructed access to data enables innovation and collaboration across departmental boundaries.
We find that the introduction of an open data strategy promotes simplified access to data in several ways.
For once, organizations start creating central data repositories – oftentimes referred to as data lakes – to
consolidate various data sources in one place. While this is not a prerequisite for open data to work, it is
sought after by companies to consolidate fragmented database landscapes. The benefit becomes obvious:
The entire workforce obtains access to a wide variety of data, enabling collaboration and innovation
between departments. A standardized access management process as part of a data strategy frequently
supports this undertaking. A Data & IT Architect in a Rail & Train firm summarizes this as follows: “We
realized that we are having a problem with the internal data flow. (…) Now I am receiving calls several times
a month saying `Thanks for making the data available through the data portal.' This is incredibly rewarding
to see how many colleagues use the open data portal”.
Creating reports is oftentimes perceived as a time-consuming undertaking and complex. In spite having
access to modern reporting tools with a drag and drop interface, creating reports still demands a foundation
of high-quality curated data. We find evidence that the steps that follow an open data initiative can support
in automating reporting activities and, hence, save time and costs. For instance, central data repositories
allow for tapping into multiple data sources through a standardized process. Furthermore, application
programming interfaces (APIs) serve structured data that can be directly connected to reporting tools. In
another example, we find that open data may serve as a self-service tool for external data requests:
Journalists used to send data requests that had to manually be responded to by the public relations (PR)
department with the support of the IT department. With an open data interface in place, journalists now
retrieve the data themselves, freeing up time for the IT and PR departments to work on other tasks.
In summary of section 4.1, we observe that the implementation of an open data strategy contributes to
several internal improvements and leads to the de-silofication within the organizations; i.e. organizational
silos fade away in favor of shared repositories, processes, and mindsets.
Innovation Driver
By revealing data publicly, organizations contribute a resource to a digital ecosystem. Through the
integration with resources from additional ecosystem participants, value is co-created. We find that
organizations strengthen their innovative capabilities by engaging in open data, leading to new digital
offerings being created and business models being established.
External Resources
One of the major obstacles that slow down innovation in organizations across industry sectors is a lack of
capacity and capabilities. Given a high demand of data science skills in the job market, companies are having
a difficult time to hire and on-board new employees in the quantity and quality needed. Furthermore, time
constraints force organizations to prioritize some project over others, leading to a growing backlog of open
items. Open data has proven to ease some of those capacity and capability constraints: By revealing data, a
broad set of external developers, start-ups and academics has the opportunity to contribute their time,
skills, and ideas to jointly create value. In other words, the company obtains free access to resources to
combat its own resource constraints. Evidence shows that external developers are intrinsically motivated
to explore the data and create services or insights without expecting to receive anything in return.
Companies value creative problem solving and the spirit of the open community. We observe that firms that
release data benefit from outside-the-box thinking of external developers and start-ups. By having a
completely unbiased view, the actors in the open data ecosystem look at the data from a new perspective
and approach solutions differently. The Chief Data Officer of an Energy company describes his experience:
“We can develop new forms of analysis or ideas with people that look at the data from a different perspective
– that do not come from this industry”. In that sense, open data is evolving: To benefit from external
problem-solving capabilities of the community, a growing number of organizations not only reveal data,
but also publish challenges connected to their data. Teams may work on the challenge voluntarily and
submit their results to the data provider. This may turn into a win-win situation: The data provider receives

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a solution to a known problem while the team with the best approach usually receives some kind of reward
and public acknowledgment of their achievement.
Service Offerings
The release of open data enables the development of new service offerings. While the services themselves
are usually created by external developers and start-ups, the data provider benefits from their existence as
several use cases show. Notably, the services that emerge based on open data oftentimes address customer
problems that data providers are not even aware of and, hence, would not address themselves even if they
could. In a concrete case, a developer team built a service that monitored the status of elevators on train
stations based upon open data provided by the rail operator. Through this service, persons with reduced
mobility (e.g., wheelchair users) were able to check if they are able to switch platforms when traveling by
train even before they started their journey. This led to increased customer satisfaction and potentially to
new revenue as travelers would not switch to other means of transport.
While usually there are no contractual obligations between data provider and data consumer, a newly
developed service may lay the foundation for a partnership to form. We find evidence that data providers
recognize the value of independently developed services and decide to strengthen the relationship with the
creator. There are different forms of collaboration: The data provider may buy the service or acquire a
license to use it. In other cases, we observe that the data provider invests into the start-up or acquires it. In
a concrete use case, a start-up uses real-time scheduling information provided by a transportation firm to
design a very intuitive-to-use journey planner interface for mobile devices. Convinced by its added value to
the customer, the transportation company licensed the design and algorithm and added it to its own journey
planner smartphone application.
The availability of open data can extend and enrich existing ecosystems. We find that open data may serve
as a preliminary stage towards industry-wide data platforms. For instance, the automotive industry aims to
establish a standardized data platform for the exchange of data on autonomous driving and e-mobility.
Given the delays in setting up such a platform, individual manufacturers have started to release data as
open data to enable innovation. In a particular case, the anonymized movement data of electric vehicles is
published, enabling providers of a charging infrastructure to make educated decisions on where to position
their charging points.
Business Models
Despite open data being free by definition, it plays a central role in establishing new business models. We
find that organizations leverage an open data strategy as a trigger to directly monetize their data assets. For
instance, a company may offer data on an aggregated level for free while charging customers for more
granular data. The Head of Big Data Strategy of an Energy provider summarizes his experience: “People
call me saying `I now have information A, B and C from your data portal. How about information D and E?'
We respond `Sure, you can have that, but you will have to pay for it.' This would be direct commercialization
of additional information [that we provide]”. This idea of a freemium model is just gaining momentum and
allows open data providers to earn additional revenue by selling data. Nevertheless, setting up a new
business model to directly monetize data assets comes with certain drawbacks: For instance, it creates
overhead costs that need to be covered and raises additional questions around intellectual property
protection and delivery mechanisms. While evidence shows that organizations benefit from this new source
of income, it is rather a strategic decision whether the company intends to engage in data selling activities.
Summarizing the key points for section 4.2 we find that the release of open data enables organizations to
benefit from access to external resources free of charge. Notably, the creation of a wide variety of service
offerings leads to a win-win situation where the developer of the service itself, as well as the data provider,
benefit. This is especially remarkable from a cost perspective: While the data provider only adds data to the
equation, the data consumer contributes several resources such as time, skills, and ideas. The use of open
data as a trigger for direct data monetization has proven to be a path for establishing new business models.
Visibility and Participation

Being engaged in open data initiatives positively impacts an organization's external visibility. While the
categories internal improvements and innovation drivers focus on creating value by integrating open data

11
with adjacent resources, visibility and perception represent a perceived benefit. As such, we find that open
data supports efforts to appear more transparent, to improve the organization's reputation, and to build an
ecosystem that enables participation and collaboration.
Transparency and Accountability
One of the main drivers for organizations to engage in open data in the first place is to achieve transparency.
By revealing data, external stakeholders obtain insights into the operations of the company and can develop
a better understanding of its strategic imperatives. We find that external actors value the efforts of firms to
be more transparent since data published is first-hand, quality-checked and a one-stop shop to obtain
information. Companies also leverage this outlet to showcase that they are aware of their customers' needs
and act accordingly - as the case of a Swiss telecommunications provider shows: Given its geographical
structure with a vast number of mountains and valleys, achieving a high level of network coverage is a
technical challenge. Driven by the demand of its customers to improve network coverage, the provider
published open data in regular intervals on the investments that have been made into the infrastructure
and the improvements that have been achieved. By being transparent in its operations, the company earned
the customer's trust, leading to increased satisfaction.
Striving for transparency may come with an additional benefit: It ensures accountability for decisions made
by the organization. Especially with a focus on the public sector, revealing open data has proven to aid the
justification of political decisions and to hold decision-makers accountable for their actions. Accordingly,
this may lead to less corruption given that it is made public, e.g., what tax money is spent on. Yet,
accountability also plays a role in private sector organizations as an example from the energy sector shows:
Energy providers publish data on the amount of electricity they aim to produce (among others) to ensure
transparency and to prevent manipulation of the energy market. Furthermore, it helps in planning efforts
to avoid energy shortages and blackouts and to hold all players in the market accountable. Hence, open data
supports efforts of accountability through transparency in operations and monetary expenditures.
Brand Reputation
Engaging in open data can positively impact the organization's reputation. We find that the start of an open
data initiative is accompanied by press releases across multiple communication channels. This way, the
company obtains visibility and positions itself as innovative and forward-thinking. In addition to own
releases, the news are spread via online and offline media such as blogs, business journals and newspapers.
We find evidence that business partners, customers, and other external stakeholders perceive the
organization to be transparent and open towards collaboration, leading to increased interest in the company
itself. This has positive implications in several ways. For instance, multiple interviewees noted that after
they had started to launch an open data initiative, they had seen a spike in the number of job applications
submitted to the company. University graduates perceive companies that show open data activities as
innovative and open-minded, leading to an increase in the quantity and quality of applicants. The Chief
Data Officer of an Energy company notes: “(…) it is an opportunity for us to present the company and get
to know university graduates (…) that we might have the opportunity to hire at a later point in time”.
Apart from advances in recruiting, we observe that open data may spark the interest of new investors.
Driven by increased transparency, potential investors develop a better idea of what they buy into. Given
that a growing number of investors is not only interested in short-term profits, but also sustainability and
social responsibility, open data creates an opportunity to underscore such efforts with data. For instance,
an organization may make transparent where raw materials are sourced from and how it supports social
projects in emerging markets. We also find that by revealing data, other organizations signal their interest
in collaborating either on data or business projects, enabling the formation of a broad digital ecosystem for
value co-creation.
Ecosystem Development
For open data to unfold its potential, the communication with the data consumer community plays a critical
role. There is still a strong believe that for open data to work, an organization simply publishes data and
then waits until innovation magically happens. A Software Engineer from a Rail and Train Company
describes this misconception: “And then we realized that there is a lot to do for us towards community

12
management. We didn't know that community management would be such an important aspect when
releasing open data since you do not only lose control over the data but also the communication”. We find
that building a relationship with the community that potentially consumes the data is of utmost importance.
By establishing blogs, online forums or other kinds of feedback mechanisms, the community has a way to
articulate its needs in terms of what data and what format is needed to enable innovation or work on
particular use cases. For the data provider, these challenges also work as a feedback mechanism to learn
about poor data quality or other errors in the data. As a matter of fact, community feedback has helped
organizations to improve their data quality, representing an additional benefit of open data. We also observe
that companies start thinking from a Design Thinking perspective when revealing data: Who is my target
audience and what does it need? A Data Scientist recalls: “I think that the primary success factor was the
data consumer and that we did not say `Here is everything we have' but that we thought about who would
use it [the data]”. While the data provider only represents a single actor in the ecosystem, it carries a
particular responsibility to kick-start the innovation process and engage additional actors.
Summarizing the key elements of section 4.3, we can say that open data has proven to improve visibility of
the organization. We find that driven by the effort to improve transparency, companies perceive
improvements on their brand reputation leading to benefits in their recruiting activities, among others. Yet,
to fully leverage the benefits of open data, organizations must promote the formation of a digital ecosystem
that engages both sides, data provider and data consumer.
Case in Point: SBB and Imagine Cargo

Having built a comprehensive model on benefits of open data, we now aim to illustrate the model and its
derived benefits on a real-world use case. Evidently, this use case has not been used to develop the model
itself and, thus, serves as a first step towards validating the model. Whilst not all identified benefits of open
data apply in this use case, it nevertheless illustrates its suitability. In particular, this case in point shows
how both, data provider and data consumer, benefit from using open data and hence establish a long-term
partnership without entering into contractual obligations.
SBB and Imagine Cargo. The organizations involved in our case are Swiss train and rail operator SBB
and the start-up Imagine Cargo. SBB offers travel and transportation services in its core market Switzerland
and selected routes into adjacent countries. Additional revenue is also generated through real estate and
infrastructure operations. SBB has launched its open data portal more than half a decade ago and offers
data on, e.g., infrastructure, trains, and stations (SBB 2020). Imagine Cargo, a start-up founded in 2014,
started with the objective of being a same-day parcel delivery service with a particular focus on the reduction
of CO2 emissions. As such, the start-up used cargo bikes for the last mile to pick-up and deliver its cargo.
For greater transportation distance between cities, cargo space on long-distance trains is used instead of on
trucks.
The Challenge. In order to offer the intended service, Imagine Cargo had to obtain knowledge as to which
of the long-distance trains actually offer cargo capacity since not all of them do. Additionally, the kind of
available cargo capacity played an important role: While some carriages only offer limited space for smaller
boxes, others offer larger compartments that allow a different kind of cargo to be shipped. Hence, the start-
up had to find a way to determine which train offers which kind of cargo space to transport its parcels
between cities. Given that this information is not available via the regular journey planner on any website
or mobile app, Imagine Cargo reached out to SBB for help.
The Solution. In a first attempt to resolve the issue, SBB sent a spreadsheet with 100,000+ rows to
Imagine Cargo that contained the carriage composition data for the entire year. Given the complexity of the
spreadsheet and to account for changes in schedules and carriage compositions over the year, this approach
was soon discarded. Instead, Imagine Cargo suggested adding this data to the open data portal of SBB to
ensure that up-to-date data can be retrieved in real-time. Soon after, SBB in fact made the needed data
available through the open data portal for anyone to use. Based upon the newly available data and several
other data sources provided by SBB, Imagine Cargo built a software tool within one month that would allow
them to identify the trains with cargo capacity. Given the granularity of the data, Imagine Cargo could even
identify where in the train composition the cargo space is located and what kind of cargo would fit.
Benefits Derived. Making the cargo capacity available as open data created benefits on several levels. For
once, it enabled Imagine Cargo to establish a business model in the first place as co-founder and CFO David

13
Emmerth recalls: "Without this kind of data from SBB, we would simply not have been able to operate and
to provide the shipping service to our customers." By building their own journey planner, Imagine Cargo
was able to better manage the end-to-end delivery process and tell their customers more precisely when
packages arrive. In addition, the start-up contributes to climate protection by using a means of transport
that generates less CO2 compared to road transport. SBB benefits from making their data available as well:
By allowing third parties to plan their cargo shipping more reliably, additional cargo capacities on the trains
are used, leading to an increase in cargo revenue.
This case in point provides evidence of value creation through open data. We observe that not only the data
consumer but also the data provider recaps benefits from revealing data. In this particular use case, we
illustrate four benefits as part of the theoretical model and summarize those in Figure 3. As such, open data
offers a path for monetizing data in a digital ecosystem and lays the foundation for innovation and
collaboration.
Figure 3. Overview of Open Data Use Case Benefits
Discussion
Our work extends the body of knowledge on benefits of open data in private sector organizations. Hence,
given our findings, we must critically reflect on those and contextualize them within previous research.
While there are potential benefits that apply to the public and private sector, our work reveals additional
benefits that are specific for the private sector. For instance, in both the public sector and in the private
sector, organizations seek for a higher level of transparency (Beno et al. 2017) and new forms of
collaboration (Johnson and Robinson 2014). In contrast to the public sector, however, we show that private
sector organizations may also benefit from an improved brand reputation, leading to improvements in
talent and investor acquisition. While extant literature briefly touches on (internal) operational and
technical benefits (Janssen et al. 2012), we deepen the understanding of internal improvements that an
organization may experience. While our work focuses on private sector organizations, these benefits may
also apply to governmental institutions – this, however, needs to be researched further.
Whilst certain benefits could also be achieved independently of engaging in open data, our results suggest
that open data acts as a catalyst for transformational activities within a private sector organization. As such,
the introduction of open data can be understood as a change driver that positively impacts the dimension,
content, and speed of the change process (Akingbola et al. 2019). For instance, firms expedite the setup of
common data repositories and standardized data interfaces as part of an open data implementation, which,
according to the empirical data, would not have been on their radar in the short- or medium-term.

14
Even though we have shown that open data has the potential to create value in a digital ecosystem, a central
criticism remains: Once the data has left the organization's boundaries, the data provider has no control
over the data and no possibility to track what it is used for. Hence, a majority of the use cases remain hidden,
making it almost impossible to estimate the value that is created. This shortcoming further fuels the open
data value paradox (Jetzek 2017): A continued lack of evidence of the value created through open data may
prevent data providers from boosting their investments and sharing more data. Data consumers rely on
assurances on data perpetuity. Hence, to address this issue, we call for more transparency on open data use
cases from the consumer side and re-assurances and investments from the provider side to disentangle the
paradox and allow open data to unfold its full potential.
For private sector organizations, the notion of sharing a strategic asset free of charge while aiming for profit
maximization appears counter-intuitive (Slater 1997). However, we demonstrate that in a digital ecosystem,
which represents a space for actors to integrate their resources (Vargo and Lusch 2008), value is co-created
that benefits not only a single actor, but the ecosystem as a whole. The case in point featuring SBB and
Imagine Cargo shows that data provider and data consumer benefit from shared data. This case also shows
a sweet spot that the data provider may find itself in: Despite only providing a single resource (data), the
provider obtains access to a wealth of ideas, skills, and time at no charge. Especially for organizations that
run short on capacity and skills, open data could offer a way to combat these constraints.
While we advocate for organizations to engage in open data, we acknowledge that it represents a trade-off
when compared to strategic alternatives. For instance, the firm could decide not to share any data at all,
thereby foregoing the potential benefits as we have outlined in this paper. On the plus side, however, risks
are eliminated that the shared data could be used to harm the data provider. A second strategic alternative
to engaging in open data is to sell the data if there is a market for it. While this form of data monetization
has a direct impact on the revenue of the firm, it neglects the opportunities arising from digital ecosystems
and the value that can be created by integrating resources. Hence, open data represents a trade-off that
impacts the firm in one way or another. Finding a level of openness that enables innovation while at the
same time protects the interests of the firms is crucial for long-term success.
Conclusion, Limitations and Research Outlook

In this work, we derive a theoretical model that systematically pinpoints the internal and external benefits
that an organization may experience when engaging in open data. With open data initiatives gaining
momentum across industry sectors, firms allow their organizational boundaries to become permeable to
enable new forms of collaboration and value creation. A lack of understanding of the potential benefits of
such an initiative, however, keeps firms from investing in technology and skills. In an exploratory research
approach, including three qualitative research methods, a structured literature review, expert interviews
and multiple case studies, we derive a comprehensive model on open data benefits. We find that open data
benefits organizations in three distinct ways: it contributes to internal improvements, acts as an innovation
driver, and improves external visibility and participation. Each of the benefit clusters illustrates that data
providers, representing the core of every open data ecosystem, experience monetary and non-monetary
return flows. With our work, we contribute to the literature on the emerging phenomenon of open data in
private sector organizations and reveal a novel way to extract value from data. Furthermore, we
demonstrate that by engaging in open data, organizations open up a new path towards data monetization
in digital ecosystems.
For practitioners, the results of this work increase transparency in terms of potential open data benefits. By
combining insights from extant literature with first-hand insights from expert interviews and case studies,
we provide concrete evidence of the potential for value creation. Hence, we call for investments into open
data initiatives to provide the basis for an ecosystem to emerge. Despite initial efforts that are required to
get open data off the ground, we showcase that benefits touch on a multitude of business operations, adding
value from an internal and an external perspective. For senior management, open data offers a path to foster
collaboration and innovation in digitized and connected world while benefiting from opportunities to
indirectly monetize on existing data assets. By highlighting its benefits, we expect to promote open data in
private sector organizations, thus, increasing the universe of cases for future studies into the field.
Despite applying a high level of analytical rigor, our work is not without limitations, thus offering avenues
for future research. We see certain limitations given the methodological choices we have made. As such, as

15
is the case with any literature review, selecting a different set of key words and outlets for the literature
review may reveal additional results. For the case studies, we set a particular focus on the travel and
transportation industry, which may lead to industry-specific biases. As qualitative data has been collected
in the private sector, a non-response bias due to business confidentiality reasons may have impacted our
results. Furthermore, future work into the field should also consider digitally born companies in addition
to historically grown ones, which have been the focus of this study. Open data in private sector organizations
is still in its infancy. Hence, we call for a second iteration as open data matures, and potential benefits
become visible and measurable. While this study lays the qualitative foundations on open data benefits, we
urge researchers to quantify benefits and assess the model’s generalizability across industry sectors. Finally,
engaging in open data does not come without risk. Whilst we focus on the benefits of open data,
organizations are faced with challenges such as data security and data privacy that cannot be neglected and
shall be addressed in future research. Additionally, future work should also consider drawbacks that could
occur from revealing data. On a general note, the growing number of open data use cases in the private
sector enables further research into the field. While we illustrate that firms may benefit from open data
economically, we also believe that organizations will engage in societal value creation. This form of value
creation in itself calls for additional research to deepen our understanding of the potential impact of open
data as an open resource.
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