Measuring the economic, social and environmental value of public sector location data (2022)

Overview

Geospatial data, otherwise known as location data, plays a significant role in a diverse range of sectors across the UK economy including the public sector. If used effectively, location data drives economic, social and environmental value.

 

Geospatial data does not always have an established market price: its full value may only be determined after it has been used or applied. This can make it challenging to understand and appraise the value of new or improved geospatial data and can lead to underinvestment in the geospatial data ecosystem. The United Kingdom Geospatial Commission commissioned Frontier Economics to develop a practical framework for appraising benefits in this context.

 

The guidance developed provides a methodical framework for measuring the economic, social and environmental benefits associated with geospatial data investments in the public sector. It is a practical resource to value improvements in location data and can be particularly useful for public sector bodies when building a business case for investment.

 

The framework for appraising geospatial investment contains seven steps:

 

  1. Articulate rationale and strategic fit of investment
  2. Classify type of investment
  3. Set out how the investment will affect data characteristics
  4. Identify data uses or applications
  5. Identify potential benefits
  6. Prioritise high impact benefits for further in-depth analysis
  7. Assess benefits associated with known & unknown uses

 

The first five steps of this seven-step framework involve development of a conceptual theory of change. This theory of change articulates the rationale behind the intervention, classifies the investment, links it to specific data characteristics (if relevant) and identifies use cases and their benefits. In doing so it enables the user to map out the expected pathways to impact and value.

Geographical scope

United Kingdom

Non-quantified impacts

For further details on non-quantified impacts see the Case Studies Annex to the study – a brief summary of two non-quantified case studies is outlined below:

 

His Majesty’s Land Registry

HMLR was considering valuing its existing datasets which will require ongoing maintenance and curation. A valuation model was developed that initially applied to four HMLR datasets and focused on the economic benefits facilitated by that data. The composition of the HMLR model, that provides three outputs, is summarised as:

 

Output – Revenue Generation (RG)

Definition – Estimated revenue generated by UK private sector organisations as a result of dataset(s) usage (private sector only)

Formula – RG = SIC revenue * Revenue related to data * Business relevance factor * Business dependency rating * Adoption rate

 

Output – Approximate Gross Value Added (aGVA) / GVA

Definition – Estimated gross value added by UK private sector organisations as a result of dataset(s) usage

Formula – GVA = Industry aGVA * Revenue potentially related data * Business relevance factor * Business dependency rating * adoption rate

 

Output – Cost savings

Definition – Estimated potential staff cost savings by UK private and public sector organisations as a result of dataset(s) usage

Formula – Cost savings = Staff costs * Staff related to data * Business relevance factor * Business dependency rating * Efficiency rating

 

 

Public Sector Geospatial Agreement (PGSA)

The Public Sector Geospatial Agreement is a collective purchase licensing arrangement that sets out how the OS provides world-leading location expertise to the public sector, developers and OS Partners across Britain to support the delivery of critical infrastructure and services. One of the key improvements introduced by the PSGA is the move away from fixed specification products to the licensing of the individual componentized building bricks of data, with access to the data for PSGA members enabled through the OS Data Hub, Ordnance Survey’s new customer engagement platform.

 

Economic value: Accessing the data building bricks, rather than the fixed specification products, offers the greatest level of flexibility and ease of use for both the public and private sector. It also offers greater opportunities for innovation and increased competition within the market at the end user level, by reducing the costs of access to the private sector by allowing them to access only the data content they require for their particular application rather than having to purchase, store, and manage the elements within the existing products they do not require. The reduction in the data management burden is also replicated within the public sector, thereby delivering efficiencies in terms of reduced storage and processing costs, as well as time savings. Other economic benefits are associated with additional revenue for OS from flexibility to respond to new opportunities.

 

Social value: the new Data Hub will attract analysts who previously avoided using OS products and the increased quality of analysis will have social value via evidence-based policy making.

 

Environmental value: the new data content provided in the contest of PSGA has some indirect environmental benefits such as better reporting on carbon targets and more accurate environmental.

 

Quantifiable impacts

For further details on quantifiable impacts see the Case Studies Annex to the study – a brief summary of two quantified case studies is outlined below:

 

National Underground Asset Register (NUAR)

NUAR is a secure data sharing platform which facilitates shared access to underground asset data. In particular it provides digital records of underground assets (i.e. pipes and cables) in a combined, interactive, and standardised way in order to improve the efficiency and safety of underground works. A use case approach was taken to quantitatively value this intervention (including both direct and indirect impacts). This was accompanied by consideration of wider benefits in a qualitative way. A conservative estimate of the benefits of a national approach to digitalising underground asset data calculates £30 worth of benefits for every £1 invested and the estimated total monetised benefit of the NUAR programme is £3.4bn, which is £347m per year over ten years.

 

TFL Open Data Initiative

TfL decided to release information on timetables, service status, live arrivals, disruptions, air quality and accessibility in an open format, available for use by registered users. Data was made available under a version of the Open Government License so it could be used for commercial and non-commercial purposes. In order to estimate the benefits of TfL’s data, Deloitte considered the cost savings and incremental value to Passengers, London and TfL itself. Their findings include:

  • TfL open data supports 42% of travel apps and real-time alerts used by Londoners is saving £70m-£95m pa in saved time, reduced uncertainty and lower information costs
  • Time savings were estimated at between GBP 70m-£90m pa
  • Savings from moving away from SMS alerts were estimated to worth GBP 2m pa
  • The value of new real time alert services is worth over GBP 3m pa
  • Open data has also unlocked new revenue and saving opportunities for TfL around not having to produce apps in-house and not having to invest in campaigns and systems (estimated to be around GBP 0.75m – £1.5
  • The release of open data by TfL has supported the growth of London’s Tech economy to the value of £14m pa in GVA.
  • TfL open data also generated over 700 direct and indirect jobs.

 

 

Reference

Country

Study type

Case studies, Economic analysis

Economy sector

Water, Infrastructure (Transport), Infrastructure (Energy), Real Estate and Land Administration, Public Sector Local Government, Public Sector Central Government