The value of PSI: the business sector perspective

1. The value of PSI: the business sector perspective 13th June, 2008 Dr. Gaby Boele-Keimer

2. MICUS – The company MICUS – Business@Government • Management: • Dr. Martin Fornefeld • Jutta Lautenschlager • Clients: • Public Sector • Energy Sector • Service Sector • Sectors of activity: • Management Consultancy • eGovernment • Market Studies • Offices: • Düsseldorf • Berlin • The market for geospatial information:potentials for employment, innovation and value added • For the German Ministry of Economics, 2003 • The Impact of Broadband on Growth and Productivity • For the German Ministry of Economics, 2006

3. MICUS – The company Outlook Market studies to be published in 2008: • Business models for German companiesin international geo-information markets • For the German Ministry of Economics • The Impact of Broadband on Growth and Productivity • For the European Commission, DG Information Society and Media • Assessment of the re-use of Public Sector Information in the Geographical information, meteorological information and legal information sectors • For the European Commission, DG Information Society and Media Available on www.micus.de

4. The Status quo What do we know about the re-use of PSI? 1.51 bn € Geodata in Germany MICUS (2008) 27 bn € Total market size Europe MEPSIR (2006) 68 bn € Economic potential of PSI in Europe ₤ 1 bn Potential net economic value UK OFT (2007) 737 m € Economic value PSI France GFII (2005) PIRA (2000) 52% Share of geodata PIRA (2000) All studies state that the economic potentials of PSI re-use are not realised yet.

5. The Status quo What are the common statements of the stakeholders? PSI holders PSI Directive is implemented Products are available Services are in development Prices and licenses reflect the PSI Directive A stable turnover is necessary to safeguard the sustainability of the system 6. Financial balance depends on turnover  Restrictions due to fiscal restraints PSI holders • PSI re-users • Prices are too high • Licensing is restrictive • Licensing takes too long • PSI holder is an (unfair) • competitor • 5. High value products are not • re-usable • Unrefined products are not • accessible PSI re-users

6. Study on PSI Re-use Aims of the current study • Facts and figures about the current re-use • concerning data delivery from PSI holders • concerning data procurement from PSI re-users • Facts and figures about changes since 2002 • Facts and figures about certain changes due to the PSI Directive •  Case studies • Definition of significant indicators to measure re-use

7. The PSI market – in Germany The shares in the market for geoinformationhave changed since 2000 2000 2007 Planning and maintenance systems Geomarketing Geomarketing 278 m € 200 m € Planning and maintenance systems 500 m € 18% 33% 450 m € 48% Navigation Navigation 728 m € 350 m € Total: 1.0 bn Euro Total: 1.51 bn Euro Source: MICUS Management Consulting, 2001 Source: MICUS Management Consulting, 2008

8. The PSI-market – in Germany Atthe same time there-useofpublicgeographicdatalags - CARTOGRAPHY <1% Public earningsfrom PSI re-use in Germany Total: 164,267 k€ - STATISTICS <1% - Medical information - Geo-information - Nature protection Source: Federal Budget 2007, Juris - Environment LEGAL • Prices for geographic have been stable (a new pricing model was introduced by the AdV in January 2008) • The turnover for geographic information has been stable •  No significant changes in the volume of procured public geographic data VEHICLES METEO

9. The market of geoinformation - in Germany The market value of the private sector develops according to the deregulation scenario, the public sector remains in the status-quo Market value ( bn€) 2008: 2.160 bn€ Scenario 2: Deregulation Growth drivenby the value of content 2007: 1.510 bn€ 2002: 1.220 bn€ Scenario 1: Status-Quo Growth drivenby IT technology year Source: MICUS Management Consulting, 2003/ 2008

10. The PSI market • Recentacquisitionsof private companiesareindicatingthe market potential Mapping applications TomTom 2,9 Mrd. € NOKIA 5,7 Mrd. € Geomarketing,other processed data and maps Pitney Bowes Inc. 408 Mio. $ Microsoft 50 Mio. € Cartographicdata providers Teleatlas 308 Mio. € Navteq 560 Mio.€ MapInfo 165 Mio. $ Multimap 15 Mio. € Acquisition price:2 to 5 times theannual turnover Acquisition price :9 to 10 times theannual turnover !!

11. Business models • Considerthewholevaluechain: • Seeing the value added factors x 10 x 5 Market value x 1 PSI re-user enduser Source data Information systems Information-basedservices Completion of a task Basic data Specificdata Complexcombinationsofdata Mapping Geocoding Analysis tools Planning Analysis Marketing Controlling Routing Location analysis Business strategy Advertising Additional dataandfunctions Service provider PSI holder

12. The Status quo Example for partial substitution The private sector is setting up parallel infrastructures • - Yellowdots: weatherstationsfromthe DWD (Germany‘s • National Meteorological Service) • Reddots: weatherstationsfrom a private meteorologicalinformationprovider The private company‘sownnetworkofweatherstationswerebuilt after negotiationswiththe DWD failed Source: www.wetterstationen.meteomedia.de

13. Recommendations • Raise awareness of the potentialin the reuse of public sector information. • Exploiting the potential in the PSI-marketrequires lower pricing and less restrictive licensing agreements. • There is no such thing as a free lunch!Reusable, high quality information requires investment. • Be aware of substitution.Rethink and review the need for public services.

14. Thankyouforyourattention! Dr. Gaby Boele-Keimer boele-keimer@micus.de http://www.micus.de