HOW GOVERNMENT CAN PROMOTE OPEN DATA AND HELP UNLEASH OVER $3 TRILLION IN ECONOMIC VALUEMcKinsey Global InstituteMGI_51832200-ea70-11e3-bfcc-4bfe3c6c5db6Michael ChuiCo-Author -- partner at the McKinsey Global InstituteDiana FarrellCo-Author -- director in McKinsey’s Washington, DC, officeKate JacksonCo-Author -- consultant.$3 trillion in economic value_51832201-ea70-11e3-bfcc-4bfe3c6c5db6[To outline] the role of government in unlocking the economic value of open data, managing risks, and engaging stakeholders_51832202-ea70-11e3-bfcc-4bfe3c6c5db6Open DataCompanies, governments, and NGOs have begun to release and share vast amounts of information. However, the extent to which information is truly open varies in four ways: accessibility, machine readability, cost, and rights for reuse and redistribution.AccessibilityMachine ReadabilityData are available in formats that can be easily retrieved and processed by computersValue CreationEnable value creation_51832203-ea70-11e3-bfcc-4bfe3c6c5db61GovernmentDecision MakingPromoting better decision making_51832204-ea70-11e3-bfcc-4bfe3c6c5db61.1Open data provides a fact base to make more informed and objective choices using information that is often available in real timeProducts & ServicesStimulating development of new products and services_51832205-ea70-11e3-bfcc-4bfe3c6c5db61.2New offerings -- Open data enables organizations to better understand their customers and context and to design new products and servicesTransparency & AccountabilityIncreasing transparency and improving accountability_51832206-ea70-11e3-bfcc-4bfe3c6c5db61.3Open data reveals issues in behavior, choices, and spending that citizens and leaders can act on to effect changeRisk ManagementManage risks_51832207-ea70-11e3-bfcc-4bfe3c6c5db62Public-Sector LeadersPublic-sector leaders can address data risks that could threaten individuals and organizations or undermine open-data initiatives. Individual risks: * Privacy - Improper sharing of personal information * Security - Inadequate protection of data * Safety - Data made public that could be used to do harm. Organizational risks: Confidentiality - Revealing excess information * Liability - Fines or damages from ineffective data protection * Intellectual property - Lack of ownership standards. Potential mitigation strategies: * Remove identifying information or aggregate data * Invest in technological safeguards and staff training * Engage stakeholders to share concerns and suggestionsPrivacy, Security & SafetyProtecting the privacy, security, and personal safety of individuals_51832208-ea70-11e3-bfcc-4bfe3c6c5db62.1Confidentiality, Liability & Intellectual PropertyHelping organizations manage risks related to confidentiality, liability, and intellectual property_51832209-ea70-11e3-bfcc-4bfe3c6c5db62.2Stakeholder EngagementEngage stakeholders_5183221e-ea70-11e3-bfcc-4bfe3c6c5db63Government* Government can hold public forums to encourage engagement of citizens and consumers * Government can involve the media in publicity efforts and discussions of new initiativesConsumersCitizens and consumers - Citizens and consumers can participate in development of open-data initiativesCitizensBusinesses* Businesses are working to understand and shape government rules, standards, and regulations about data use * They are also creating innovative products and services based on open dataThe Media* Media outlets use and interpret open data in print, online, and TV piecesNongovernmental OrganizationsNongovernmental organizations (NGOs) can help government develop common standards that improve data availabilityFoundationsFoundations can promote and fund education of data specialistsEngaging consumers/citizens, businesses, the media, and nongovernmental organizations in open-data effortsInformationProvide information_5183221f-ea70-11e3-bfcc-4bfe3c6c5db63.1GovernmentProviderCaptureCapture information electronically_5183257a-ea70-11e3-bfcc-4bfe3c6c5db63.1.1ReleaseRelease data publicly and regularly_51832610-ea70-11e3-bfcc-4bfe3c6c5db63.1.2QualityIdentify ways to improve data quality_5183271e-ea70-11e3-bfcc-4bfe3c6c5db63.1.3CatalysisCatalyze open data_51832750-ea70-11e3-bfcc-4bfe3c6c5db63.2GovernmentCatalystCultureBuild an opendata culture_51832751-ea70-11e3-bfcc-4bfe3c6c5db63.2.1ConvenienceConvene stakeholders_51832752-ea70-11e3-bfcc-4bfe3c6c5db63.2.2GovernmentConvenorChampionshipChampion the movement_51832753-ea70-11e3-bfcc-4bfe3c6c5db63.2.3GovernmentChampionUsageUse information [efficiently and effectively]_51832754-ea70-11e3-bfcc-4bfe3c6c5db63.3GovernmentUserAnalysisApply sophisticated analytics to improve decision making, offerings, and accountability_51832755-ea70-11e3-bfcc-4bfe3c6c5db63.3.1InvestmentInvest in people, tools, and systems_51833998-ea70-11e3-bfcc-4bfe3c6c5db63.3.2PolicyEstablish policy_51833999-ea70-11e3-bfcc-4bfe3c6c5db63.4GovernmentPolicy MakerRulesMake rules for internal and external use_5183399a-ea70-11e3-bfcc-4bfe3c6c5db63.4.1StandardsEstablish standards for data quality and format_5183399b-ea70-11e3-bfcc-4bfe3c6c5db63.4.22014-06-02http://www.mckinsey.com/Insights/public_sector/~/media/mckinsey/dotcom/insights/public%20sector/how%20government%20can%20promote%20open%20data/how_govt_can_promote_open_data_and_help_unleash_over_$3_trillion_in_economic_value.ashxOwenAmburOwen.Ambur@verizon.net