1. Stadttor 1 · 40219 Düsseldorf Tel. 0049 (0)211 – 3003 420 Fax 0049 (0)211 – 3003 200 www.micus.de · info@micus.de The value of PSI: the business sector perspective 13 th June, 2008 Dr. Gaby Boele-Keimer

2. 2 MICUS – Business@Government MICUS – The company Offices: Düsseldorf Berlin Clients: Public Sector Energy Sector Service Sector Sectors of activity: Management Consultancy eGovernment Market Studies Management: Dr. Martin Fornefeld Jutta Lautenschlager 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. 3 Outlook Business models for German companies in 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 Market studies to be published in 2008: MICUS – The company Available on www.micus.de

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

5. What are the common statements of the stakeholders? The Status quo PSI holders 1.PSI Directive is implemented 2.Products are available 3.Services are in development 4.Prices and licenses reflect the PSI Directive 5.A stable turnover is necessary to safeguard the sustainability of the system 6.Financial balance depends on turnover  Restrictions due to fiscal restraints 5 PSI re-users 1.Prices are too high 2.Licensing is restrictive 3. Licensing takes too long 4. PSI holder is an (unfair) competitor 5. High value products are not re-usable 6. Unrefined products are not accessible PSI holders PSI re-users

6. Aims of the current study 1.Facts and figures about the current re-use concerning data delivery from PSI holders concerning data procurement from PSI re-users 2. Facts and figures about changes since 2002 3. Facts and figures about certain changes due to the PSI Directive  Case studies 4.Definition of significant indicators to measure re-use 1.Facts and figures about the current re-use concerning data delivery from PSI holders concerning data procurement from PSI re-users 2. Facts and figures about changes since 2002 3. Facts and figures about certain changes due to the PSI Directive  Case studies 4.Definition of significant indicators to measure re-use 6 Study on PSI Re-use

7. 7 The shares in the market for geoinformation have changed since 2000 The PSI market – in Germany 20002007 Total: 1.0 bn EuroTotal: 1.51 bn Euro 450 m € 200 m € 350 m € 278 m € 500 m € 728 m € 18% 33% 48% Source: MICUS Management Consulting, 2001Source: MICUS Management Consulting, 2008 Planning and maintenance systems Navigation Geomarketing Navigation Geomarketing Planning and maintenance systems

8. At the same time the re-use of public geographic data lags 8 Source: Federal Budget 2007, Juris -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 LEGAL - STATISTICS <1% - CARTOGRAPHY <1% - Nature protection - Environment - Geo-information - Medical information Public earnings from PSI re-use in Germany Total: 164,267 k€ The PSI-market – in Germany

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

10. 10 Recent acquisitions of private companies are indicating the market potential Teleatlas 308 Mio. € Navteq 560 Mio.€ MapInfo 165 Mio. $ Multimap 15 Mio. € Pitney Bowes Inc. 408 Mio. $ Microsoft 50 Mio. € Cartographic data providers Geomarketing, other processed data and maps TomTom 2,9 Mrd. € NOKIA 5,7 Mrd. € Mapping applications Acquisition price: 2 to 5 times the annual turnover Acquisition price : 9 to 10 times the annual turnover !! The PSI market

11. 11 Source data Information systems Information- based services Basic data Specific data Complex combinations of data Mapping Geocoding Analysis tools Planning Analysis Marketing Controlling Routing Location analysis Business strategy Advertising Completion of a task enduser PSI re-user x 1 x 10 x 5 Market value Consider the whole value chain: Seeing the value added factors Business models PSI holder Service provider Additional data and functions

12. 12 Example for partial substitution The private sector is setting up parallel infrastructures - Yellow dots: weather stations from the DWD (Germany‘s National Meteorological Service) - Red dots: weather stations from a private meteorological information provider The Status quo Source: www.wetterstationen.meteomedia.de The private company‘s own network of weather stations were built after negotiations with the DWD failed

13. 13 Recommendations 1.Raise awareness of the potential in the reuse of public sector information. 2.Exploiting the potential in the PSI-market requires lower pricing and less restrictive licensing agreements. 3.There is no such thing as a free lunch! Reusable, high quality information requires investment. 4.Be aware of substitution. Rethink and review the need for public services.

14. 14 Dr. Gaby Boele-Keimer boele-keimer@micus.de http://www.micus.de Thank you for your attention!