Business model

This topic is not covered in the iSHARE Trust Framework. The data space is free to define agreements or remove this section.

DSSC Description

A data space initiative can benefit from defining and managing its business model because organisations will rely on it. Therefore, it needs to balance its costs and revenues. A data space is generally not seen as for-profit, but it can definitely have a strategy to build up funds for strategic initiatives. An example of such an initiative is to develop a standard for semantic interoperability, a dashboard to monitor the activity in the data space, a marketing campaign, or a support line to help organisations participate.

Generally, a data space's value proposition is to lower the cost of developing new specific interfaces when sharing data. Standardising these interfaces makes reusing data for new purposes easier and less expensive. In addition, value creation in use cases can be enhanced because it is easier to develop innovative services that enrich data, as different data sources can be approached similarly. This is while all owners remain in control of the use of their data.

A data space's business model is unique because it requires aligned activities from different organisations. Together, these organisations aim to establish a platform that connects supply and demand while avoiding too much power and control residing with one party. This is referred to as a collaborative and multi-sided business model. Although related, the data space business model is distinguished from the business model of the individual organisations affiliated with a data space.

The business model development for a data space is complex because of its unique properties. On the one hand, it must be attractive to use cases in which both providers and users of data create value. On the other hand, it must also be attractive for providers of services needed to operate the data space or add value to use cases. Therefore, this building block highlights the key themes the data space initiative should consider. A data space initiative's choices can affect options in other building blocks, such as organisational governance. Therefore, a data space initiative is advised to use the building blocks in coherence.

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