Data Spaces Business Models
Creators
Description
A business model explains how an organization creates, delivers, and captures value, always from the perspective of the actor offering the value proposition. This foundational concept becomes more complex in the case of data spaces, which are distributed systems involving various actors. However, it is often unclear whose perspective is considered when discussing the business model of a data space. Generally, a distinction must be made between the overarching business model of the data space itself – such as that of the infrastructure provider or data space authority – and the individual business models of participants and their specific use cases.
The concept of data spaces necessitates re-thinking value generation in data economies. It is essential to include data valuation concepts early to build a solid foundation for engagement among participants. Additionally, the collaborative nature of a data space business model means that the models of the different actors must be aligned for success. Moreover, a data space business model is multi-sided: the value grows as more data providers and consumers join the initiative, creating mutually enforcing benefits (‘positive feedback loops’). Importantly, the model is also evolving, with characteristics like public funding changing over time.
A key insight is that a singular data space business model does not exist. Instead, the business model depends on the perspective being taken. To understand what works in practice, we looked at examples from the real-world. Therefore, three case studies were selected which provide practical insights.
The goal of this paper is to foster a shared understanding that allows all stakeholders to communicate effectively. Value creation is not just about monetization; societal benefits are often a primary goal of many data space initiatives. Furthermore, any effective data space business model must be both collaborative and multi-sided to thrive in complex value networks.
Files
IDSA Position Paper Data Spaces Business Models.pdf
Files
(2.2 MB)
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Additional details
Dates
- Issued
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2024-11-12