introduction to costs/benefits of inspire & possible...

1

Introduction to

costs/benefits of

INSPIRE & possible

opportunities

CATHARINA BAMPS

(SADL KU Leuven)

2 Modules

1. Costs & benefits of implementing INSPIRE

2. Examples of INSPIRE & SDI Business processes

3. Where are the business opportunities?

3 Learning objectives

to identify the main costs and benefits of implementing INSPIRE;

to briefly describe the requirements of the IR for Monitoring and Reporting;

to give examples of business cases of costs and benefits;

to identify possible opportunities to deliver (innovative) products and services to accomplish the benefits

(to know how and where to beat the bushes to find the paths)

4

Module 1: Costs & benefits of implementing INSPIRE

5

Evolution in thinking around SDI* (as a) Business Case (source: Craig Stewart, Geoconnections Canada)

1. - Cost recovery implementation

2. - Fee or free debate

3. - Cost Benefit Analysis

4. - Return on investment

5. - Present: demand-side valuation

* INSPIRE is the SDI for Europe

6

1. Cost recovery implementation (supplier´s perspective)

Assumption: Value = Producer’s Cost

How much should government charge for its services (including the provision of geo info)?

– Cost of production?

– Cost of distribution?

– Revenue maximization?

- Copyright ?

Production costs government passed on to consumers , drop in demand and barrier to industry growth (side-effects: some companies develop their own datasets to avoid copyright issues);

7

2. Fee or free debate Assumption: Value ≠ Producer’s Cost

Given that full production costs cannot be charged, how do we value Geospatial Info/Services?

Shift from supplier’s to consumer’s perspective;

Sliding scale approach:

– How specialized/generalized is the information?

– How often does it change (update)?

– Who is buying it?

– What will the information be used for? (e.g. commericial or non-commercial purpose?)

Simplification use geo-info and sale

8

3. Cost-Benefit analysis Assumption: Value derives from greater operating efficiencies

Costs

• Often front-loaded, tangible

• Include system planning & development, acquisition &

implementation, maintenance & operating

• SDI costs also include standards development, outreach to

and capacity building with new users

Benefits

• Characteristics of the SDI itself

• Quality and scope of datasets

• Applications

9

CBA: Systematic approach that measures total expected cost against total expected benefits (tangible and intangible ) in monetary terms (net present value);

Difficult because asymmetrical aspect of cost benefit analysis:

Costs are

Unconditional: payment for collection, storage, processing of data, distribution of info, evaluation, auditing..

Tangible : can be measured

Immediate: real time (part of pre-project planning)

10

Benefits:

conditional:

depending on (transformation of data into )information

+ depending on using this information in policy and management cycles

intangible: how to valorise the improvements e.g. improved allocation of resources (efficiency), improved decision-making…

scheduled for the future: learning cycles

CBA: it is easier to estimate costs than benefits (often intangible and long term).

11

Quantifying intangible benefits (source: ESRI (UK), building a business case for an SDI)

12

4. Return on investment Assumption: Value derives from the usefulness of data

Ratio or percentage:

(benefits minus costs)/ costs : if positive:benefits outweighs costs, if =0: benefits equal costs

13

Source + own calculations : Angie Schottmuller in Search Engine Watch

C O S T - B E N E F I T R A T I O ( C B R ) R E T U R N O N I N V E S T M E N T ( R O I )

Formula Benefits/Costs ( Benefits minus Costs ) / Costs

Format

Ratio

(if > 1: benefits outweighs costs, if =1 break-even)

Ratio or percentage

(if positive: benefits outweigh costs, if =0 break-even)

Focus Profit

Investment Return

Example

Euro10.000 B / Euro2.000 C

= 5:1 CBR (profit) : 5 euro in benefits for every 1 euro in

costs;

Euro10.000 B/ Euro15.000 C

= 0,66:1 CBR (negative profit: 0,66 in benefits for every 1

euro in costs)

(Euro10.000 B – Euro2.000 C) / Euro2.000 C

= 4:1 or 400% ROI : the investment (i.e., the cost) will

generate a return (i.e., net benefit) that amounts to 400

percent of the cost of the investment.

(Euro 10.000 B- Euro 15.000 C) / Euro 15.000 C

= - 0.33:1 or - 33% ROI: the investment will generate a

negative return (loss) that amounts to 33% of the cost of

the investment

Purpose

Analyze estimated cost impact. e.g. make a profit, break-

even, take a loss.

Analyze investment effectiveness for generating a profit,

the gain from the investment.

14

Source + own calculations : Angie Schottmuller in Search Engine Watch

C O S T - B EN EF I T R A T I O ( C B R ) R ET U R N O N I N V ES T M EN T ( R O I )

Common Use

Compare options using a common currency and justify

bottom-line feasibility of spending.

Relationship between total benefits and total costs (a

relative measurement)

Assess profitability as a basis for continuing and prioritizing

future investments.

Frequently used in financial settings and reports the gain

from the investment (a relative measurement).

Answers… Will we come out ahead?

How effective were we at coming out ahead? What kind of

payback did we get for the investment?

15

4. Return on investment Example: National Aeronautics and Space Administration (NASA) Study of geospatial interoperability return on investment (2004):

- NASA needed to understand the value of geospatial interoperability specifications and standards, used to facilitate the greater use of NASA´s data assets;

- Study : compare and contrast programs with geospatial

applications, one that implemented geospatial standards and specifications and one that did not. Cost figures of each of the projects and an independently developed value matrix to measure the value of geospatial interoperability specifications;

Result: Standards-based projects were shown to have a 119% ROI over

the program that did not implement standards.

16

5. Demand-side valuation Assumption: Value derives from the users´ assessment of the usefulness of data

- Determining value from usefulness of data means understanding users’ needs ;

- The characterization of benefits developed for cost-benefit analysis is a start

- Benefit characteristics can be valued through various ranking schemes

- However, different users (A, B, C) assign different values to the same datasets;

17 Costs & benefits of implementing INSPIRE Which costs/benefits are we talking about?

Main sectors affected:

- public sector (A) (administration)

- private sector (B) (business)

- citizen (C)

18

INSPIRE Implementing rules:

- Monitoring and Reporting

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:148:0018:0026:EN:PDF

http://inspire.jrc.ec.europa.eu/reports/ImplementingRules/monitoring/INSPIRE_DT_MR_DraftImplementingRules_v3_2008_09_19.pdf

a









19

INSPIRE Implementing rules:

- Monitoring and Reporting : country reports

http://inspire.ec.europa.eu/index.cfm/pageid/182

http://inspire.ec.europa.eu/index.cfm/pageid/182

20

INSPIRE IR Monitoring and Reporting

Monitoring and reporting the implementation of

INSPIRE by each Member State

- also useful info for B opportunities!

http://inspire.ec.europa.eu/index.cfm/pageid/182/list/2

“ In order to have a solid basis for decision making

related to the implementation of INSPIRE Directive and

to the future evolution of INSPIRE, continuous

monitoring of the implementation of the Directive and

regular reporting are necessary.”


21


Monitoring and reporting have to cover the 4 main

fields of INSPIRE Directive: 1)metadata, 2)spatial data

sets 3) network services, 4) data and service sharing.

Monitoring follows a quantitative approach (excel

sheet) and takes place every year, while reporting

(word doc) covers more qualitative aspects and takes

place every 3 years.

22


Monitoring : According to Commission Decision

2009/442/EC of 5 June 2009 implementing the

INSPIRE Directive, EU Member States have to report

annually a number of indicators for monitoring the

implementation and use of their infrastructures for

spatial information. The information provided includes

a list of spatial data sets and services belonging to

those infrastructures.

23


Monitoring follows a quantitative approach and is based on a list

of spatial data sets and services of the Member States. The list

should cover already conformant data sets and services as well

as those that still have to be brought into conformity. This list

should basically reflect the Member State's plans for the

implementation of INSPIRE.

34 spatial data themes - http://inspire.ec.europa.eu/index.cfm/pageid/2/list/7

Based on the information collected for all the items of the list,

indicators can be calculated to evaluate:



24


Indicators:

Existence of metadata for spatial data sets and services

Conformity of metadata for spatial data sets and services with the

implementing rules on metadata

Geographical coverage of spatial data sets

Conformity of spatial data sets with the data specifications and of

their metadata with the implementing rules on metadata

Accessibility of metadata for spatial data sets and services

through discovery services

Accessibility of spatial data sets through view and download

services

Use of network services

Conformity of network services to the implementing rules on

network services


25

Examples:

http://inspire.ec.europa.eu/index.cfm/pageid/182/list/indicators



26


Reporting

According to Commission Decision 2009/442/EC of 5

June 2009 , a report including e.g. information on the

coordinating structures, on the use of the infrastructure

for spatial information, on data-sharing agreements

and on the costs and benefits of implementing the

INSPIRE Directive, is prepared and submitted every

three years, starting in 2010.

27


Reporting follows a qualitative approach. Member

states will provide information on 5 main areas:

1. Coordination and quality assurance, including

information on the Member State contact point and the

coordination structure, as well as a description and

evaluation of the quality assurance procedure,

including measures taken to improve it

2. Contribution to the functioning and coordination of

the infrastructure, including an overview of the

stakeholders and of their roles, the measures taken to

facilitate sharing and a description on how they

cooperate

28

3. Use of the infrastructure for spatial information, in

general and by public authorities in particular;

examples of cross border use and efforts made to

improve it

4. Data sharing arrangements between public

authorities of the Member State, between public

authorities and Community institutions and bodies as

well as barriers to sharing

5. Cost and benefit aspects, that is an estimate of the

costs related to INSPIRE Directive and examples of

the observed benefits.

29


“ 17 - Cost and benefit aspects

In accordance with Article 21 (2)(e) of the Directive, Member

States shall report on costs and benefits for the establishment and

maintenance of the infrastructure for spatial information related

directly to the implementation of the Directive. The report shall

comprise:

a) an estimate of costs caused by the implementation of the

Directive;

b) examples of benefits observed, inter alia, examples of the

positive effects on policy preparation,

implementation, evaluation within an administration, examples of

improved service to the citizen as well as examples of cross-

border-cooperation. “




30

Guidelines:

http://inspire.jrc.ec.europa.eu/documents/Monitoring_and_Reporting/INSPIRE_MR_Revised%20Guidelines_Reporting_20130125.pdf

Costs: p34 - 36

Benefits: p36-37

http://inspire.jrc.ec.europa.eu/documents/Monitoring_and_Reporting/INSPIRE_MR_Revised Guidelines_Reporting_20130125.pdf



31

Costs

indicate what is included in the

estimation of costs (e.g. hardware, software, staff time)

and how you have approached the estimation

indicate either monetary costs (e.g. on hardware or

staff) and/or staff time (days, months).

If possible also indicate the geographical scale (e.g.

national, sub-national) and the organisational scale

(e.g. state/regional/provincial level) to which the costs

refer.

32

Costs

IT Infrastructure

Metadata

Data Interoperability/harmonisation

Network services

Monitoring and reporting

Coordination and horizontal measures

33

Costs (detail)

IT Infrastructure: set-up costs and maintenance (yearly

cost)

Metadata: set-up costs, production, maintenance

(yearly cost)

Data Interoperability/harmonisation: set-up,

(development, software, production), maintenance

(yearly cost)

Network services: Set-up, production, maintenance

Monitoring and reporting: development, production,

reporting

Coordination: setting up, activities that relate to the

data and service sharing obligations, supporting

activities)

34

Benefits observed:

- Efficiency

- Effectiveness

- Broader benefits

Include examples:quantitative measures, core benefits or

broader side effects, main beneficiaries, cross-border

examples, undesired side effects;

35

Benefits observed (detail):

Efficiency gains

Time saved in internal queries

Time saved in internal processes

Time saved in serving public

Reduced costs of integrating data

Better re-use of existing data-sets

More motivated employees

Better organisational structures and interoperable IT

architectures

36

Effectiveness

Reduced administrative burden

Increased intra-institutional collaboration

Increased inter-institutional collaboration

Increased awareness in different levels of governments

of the benefits of delivering services on a spatial basis.

Improved policy implementation, monitoring, and

evaluation

37

Broader Benefits

More inclusive services: A2A, A2B, A2C (e.g. on line accessibility of services reduces divide between large/urban and small/rural administrations and improves services to citizens and businesses

Greater transparency and accountability.

Greater participation b y the public.

Greater opportunities for business to innovate and build new services and applications based on INSPIRE data and services;

38

Examples:

Http://inspire.ec.europa.eu/index.cfm/pageid/182/list/indicators

http://inspire.jrc.ec.europa.eu/reports/country_reports_mr2012/DE-INSPIRE-Report-2013_ENV-2013-00433-00-00-EN-TRA-00.pdf

http://inspire.jrc.ec.europa.eu/reports/country_reports_mr2012/EL-INSPIRE-Report-2013_ENV-2013-00460-00-00-EN-TRA-00.pdf















































39

Introduction to

costs/benefits of

INSPIRE & possible

opportunities

CATHARINA BAMPS

(SADL KU Leuven)

40

Module 2: Examples of INSPIRE & SDI Business

processes

41 2. Examples of INSPIRE & SDI Business processes Recall:

INSPIRE aims to create a European Spatial Data

Infrastructure which will enable the sharing of

environmental spatial information among public sector

organisations and better facilitate public access

(business and citizens) to spatial information across

Europe;

- INSPIRE + : MS to answer the requirements of

INSPIRE directive but are encouraged to do more e.g.

other data than 34 spatial data themes, geoportal….

42

- INSPIRE: access to spatial data and services but

data/services that are not accessed or used, have no

value (and thus no benefits)…so value derives from

utility (´consumption´ of the data/services), defined by

the users (A, B, C);

- Use: uptake/consumption of the data and services in

business processes by building applications, invoke

services on top of the provided services to integrate

data/services, link applications…

- Examples of uptake/consumption of data and services

: good practices (EULF)

43

Good practices of integrating location information* :

1. An on-line service to integrate location information for e-government processes (GeGIS) (BE);

2. Location enabled information services for multimodal travel planning integrating reservation and ticketing (IDOS) (CZ);

*source: European Union Location Framework good practices

EULF: aim is to address EU-wide cross-sector interoperability framework for the exchange and

sharing of location data and services; EULF is developed under the ISA programme which supports

interoperability, sharing and re-use between Public Administrations in Europe

http://ec.europa.eu/isa/actions/02-interoperability-architecture/2-13action_en.htm








44

What? An open source GIS environment for delivering online

services to citizens

http://www.gegis.org/content/73

Business process*: registration agricultural parcels by farmers

How? Until 2007: same info to be submitted to 2 different

administrations (Flemish Land Agency and Agency for Agriculture

and Fisheries)

Solution: Agriculture e-portal built with GeGis: farmers can consult

their own data, fill in and submit online forms;

2008: Belgian e-government award category ´improved service

delivery to businesses´ BP: Collection of related events, activities and decisions, that involve a number of actors and resources, and that collectively lead to an outcome that is of value to an organization or its customers – smeSpire seminar BPM

Example: ´A generic GIS for e-government in Flanders´

http://www.gegis.org/content/73

45

GeGIS:

- launched by the Flemish government (Flemish E-

government unit and the Department of Spatial

Planning, Housing and Heritage);

- Developed by a private company in cooperation with a

university;

- Open software solution and supported by an open

source community;

- Open GI-standards

- Generic ICT-internet standards


46

Benefits for (public) A(dministration)

Information easily available

Efficiency gains through cost and time savings

Faster data collection

Improvement data quality

Benefits for Business & Citizen:

Information easily available

Faster and intuitive registration procedure

Reduced response time

Decrease administrative burden

Broader benefits

- economic growth and innovation through creation new

businesses

- Job creation geo-ict sector


47

GeGis solution used to support e-government

processes

The Flemish integration platform (VIP):

a flexible solution for data exchange and application

integration. It ensures that applications that use

databases can exchange information with each other in

spite of the disparate structures of the databases and

different types of applications.

http://www.corve.be/english/vip.php

http://www.corve.be/english/examples.php


http://www.corve.be/english/vip.php

http://www.corve.be/english/examples.php

48

Enablers for multimodal planning and information

Business Process: a traveler wants to plan a journey by multimodal public transport (bus, tram, train)

Solution: on-line location-enabled service to access multimodal public transport information on national, regional and urban public transport connections including bus, tram and train and to make reservations. Traveler can select origin and destination on a map and view the travel route.

A national information system of timetables for pc and mobile phone:

http://jizdnirady.idnes.cz/vlakyautobusymhd/idos/

Example: ´Cross-border journey planner for citizens´

http://jizdnirady.idnes.cz/vlakyautobusymhd/idos/

49

A true Public Private partnership:

- Started as a private initiative collecting and digitizing bus time

tables

- Public Transport operators deliver time table information via

contractual arrangements

- Cooperation with all mobile operators in the Czech Republic

- Use of common standards for service delivery and ICT solutions

- Use of a specific conceptual data model for public transport and

for unique identification of stops

- Standardisation of timetable data


50

Benefits for A

- Costs of the service is covered by internet advertisements

- Multimodal transport is promoted: 51% of the searches is for

multimodal journeys

Benefits for B and C

- One single place to access all public transport information

- High quality and reliable information is available

Broader benefits

- Mobile operators gained new business: 1 mio SMS/month

- Easy-to-use application that brings more citizen on the web


51

http://www.idos.cz/

http://ec.europa.eu/transport/its/multimodal-planners/index_en.htm


http://www.idos.cz/




52

Module 3: Where are the business opportunities?

53 3. Where are the business opportunities? o INSPIRE: business opportunities:

Basically:

1. ´setting up´ INSPIRE: opportunities INSPIRE

establishment activities for SMEs: B2A

! also think about : INSPIRE +

2. ´building upon INSPIRE´: opportunities built upon

the established INSPIRE itself (applications on the

INSPIRE infrastructure=services): B2A, B2B, B2C

E.g. C: What is in my backyard-apps

54

INSPIRE principles INSPIRE is based on a number of common principles:

1. Data should be collected only once and kept where it can be maintained most effectively.

2. It should be possible to combine seamless spatial information from different sources across Europe and share it with many users and applications.

3. It should be possible for information collected at one level/scale to be shared with all levels/scales; detailed for thorough investigations, general for strategic purposes.

4. Geographic information needed for good governance at all levels should be readily and transparently available.

5. Easy to find what geographic information is available, how it can be used to meet a particular need, and under which conditions it can be acquired and used.

56

INSPIRE principles

opportunities B2A, B2B, B2C

smeSpire seminars Programme: basic, advanced, innovation

http://www.sadl.kuleuven.be/sadl/opleidingen.aspx

e.g. smeSpire seminar on Business Process Modelling, innovation cloud computing solutions, Linked based information integration

e.g. good practices integration information: OGC (Open Geospatial Consortium)

http://www.poweredbyinspire.eu//documents/0403-makingbusiness-delathouwer.pdf


http://www.poweredbyinspire.eu/documents/0403-makingbusiness-delathouwer.pdf






58

INSPIRE principles

e.g. Added Value Provided by Interoperable SDI’s (INSPIRE) for Service Providers and Users

http://www.ec-gis.org/Workshops/9ec-gis/papers/tabs_dessard.pdf






59

Setting up INSPIRE (+)

Identifying the business processes (BP)*

The INSPIRE Business Processes are defined using the INSPIRE Directive and Implementing Rules**.

Aim : the list of BPs to cover the activities that Member States (MS) and stakeholders involved need to perform in order to implement INSPIRE.

These activities also imply innovative activities e.g. publishing data as linked data, augmented reality, sensor-data…

*“BP are activities or tasks that produce specific services or products that can help to implement a policy (Anderson,2009)”.

**IR : Metadata, Data Specifications, Network Services, Data and Service Sharing, Monitoring and Reporting

60


BP1: Monitoring and reporting

- reporting of indicators on the implementation and use of the infrastructures for spatial information, on data-sharing agreements, costs and benefits of implementing the INSPIRE Directive;

- monitoring of the implementation of INSPIRE;

M&R reports, INSPIRE SoP reports

Tools: INSPIRE Full Operating Capability Testing: interoperability tests between MS services and the INSPIRE geoportal: state of the art;

Comparison with M&R reports MS;

66

http://inspire-geoportal.ec.europa.eu/

Discovery/view services/download services

Metadata validator

Metadata editor




67


BP2: Data and service sharing

- providing access to spatial data sets and services corresponding to the INSPIRE themes Annex I, II, II in accordance with the harmonized conditions of the Commission Regulation 268/2010;

- validating the compatibility of arrangements concerning access with the requirements of the regulation;

- validating the INSPIRE basic agreement and/or specific agreement (license for spatial data sets, service level agreement for spatial data services);

68


BP3: Metadata modeling, transformation, validation

- creation and maintenance of metadata of spatial data sets, spatial data sets series and spatial data services corresponding to the INSPIRE themes Annex I, II, II compliant with the INSPIRE metadata implementing rules applying the ISO/TS 19139/XML encoding of the INSPIRE metadata elements;

- validating the compliancy (technical requirements, interoperability) of INSPIRE metadata of spatial data;

- validating the compliancy and conformity of the INSPIRE metadata of spatial data services (discovery service, view service, download service, transformation service);

- validating the conformity of the INSPIRE metadata elements of resources in the Network services;

- validating the minimum set of search criteria for the Discovery service;

- validating the interoperability of INSPIRE metadata;

- creating and maintaining metadata of metadata;

- making the metadata available to the INSPIRE geoportal (publishing);

69


BP4: Data modeling, transformation and validation

- creating and maintaining the spatial data sets corresponding to the INSPIRE themes Annex I, II, II compliant with the INSPIRE Data Specifications using the UML INSPIRE profile/GML application schema (encoding);

- validating the conformity of INSPIRE data;

- validating the interoperability of INSPIRE data;

70


BP5: Network Services configuration and deployment

- creating and maintaining the network of services for the spatial data sets and services corresponding to the INSPIRE themes Annex I, II, II compliant with the INSPIRE requirements for Network services and using the SOA Framework for INSPIRE Network Services:

o Discovery services

o View Services

o Download services

o Transformation Network Services

o Coordinate Transformation Services

- validating the conformity of the network services;

- validating the network services performance;

- validating the interoperability of the network services;

- linking the spatial data sets and services to the INSPIRE network services (geoportal)

71

Building upon INSPIRE (+)

Geospatial digital rights management (access control)

Sensor web services

Linked Data

Augmented reality

Indoor 3D data….

http://www.opengeospatial.org/projects/groups/wg

+ smeSpire innovation seminars

http://www.opengeospatial.org/projects/groups/wg

72 Some thoughts and Recommendations:

INSPIRE= Infrastructure : value derives from utility (consumption of the data/services), defined by the users (A, B, C);

Integration information (e.g. invoking spatial data services)

INSPIRE (datasets/services) x INSPIRE/other (datasets/services) = added value

Opportunities also : smeSpire seminars: Programme and material (metadata, webinars, screencasts, ppt) (knowledge base)

- SADL KU Leuven training : http://www.sadl.kuleuven.be/sadl/opleidingen.aspx

can also be found back here:

SmeSpire project website: http://www.smespire.eu/index.php/training-smespire

Inspire forum: http://inspire-forum.jrc.ec.europa.eu/pg/pages/view/239615/smespire-training


http://www.smespire.eu/index.php/training-smespire



http://inspire-forum.jrc.ec.europa.eu/pg/pages/view/239615/smespire-training





73

Recommendation:

SMEs: clue doing business: mindset:

you gain (business) if you support the administration in achieving the benefits of INSPIRE:

- activities to build INSPIRE(+) (B2A)

and

- Activities to build upon INSPIRE (+) (B2A, B2B, B2C);

You as a business can develop activities that show:

- how setting up INSPIRE can be established in a cost-efficient and cost-effective way;

- how INSPIRE can be consumed/used for innovation (building applications on top of the data & services of INSPIRE(+);

74 References • INSPIRE website (www.inspire.jrc.europa.eu)

• 9th EC GI & GIS Workshop, ESDI Serving the User, A Coruña, Spain, 25-27 June 2003

• Geospatial Interoperability Return on Investment Study, NASA (2005)

• OGC - Open Geospatial Consortium

• INSPIRE Workshops JRC e.g. Cost and Benefits of implementing the INSPIRE Directive Workshop (2006)

• EULF

• REFIT

• smeSpire seminars

http://www.inspire.jrc.europa.eu/

75 Discussion time

introduction to costs/benefits of inspire & possible...

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