Business models determine how organizations can create and deliver value, for example, through the provision or use of geographic data. A business model is a conceptual tool that contains
a set of interrelated elements that allow organizations to create and capture value and generate revenues. The development and implementation of an appropriate business model are considered to be a key to the success of the organization and a crucial source for value creation.
Although business models determine how organizations create, deliver, and capture value, they should not be regarded as permanent and invariable structures or settings. Business models are shaped by both internal and external forces, and will only be successful if they are able to adapt to a changing environment. In the GI domain, several technological, regulatory, and societal developments have challenged the existing business models and opened up opportunities for new business models. Among these developments are the establishment of spatial data infrastructures (SDIs) worldwide, the democratization of geographic knowledge, and the move toward open source, open standards, and open data.
Since the development and implementation of SDIs in different parts of the world, much attention has been paid to the need to find appropriate business models for GI, and in particular, for geographic data providers in the public sector. Traditional business models in which public data providers were selling their data to customers in the private industry and other public agencies were questioned, because they restricted the opportunity for data sharing. The concept of SDI is about moving to new business models, where partnerships between GI organizations are promoted to allow access to a much wider scope of geographic data and services. A key challenge in the development of these SDIs was the alignment of different existing business models of the actors in the GI domain. Moreover, the development and implementation of SDIs also led to the emergence of new business models, which was even more the case with the more recent move toward open geographic data.
Organizations can be active in different parts of the geo-information value chain, and can create and offer value in many different ways. As a result, many different GI business models exist. Data providers, data enablers, and data end users could be seen as three main categories of GI business models. Each of these categories consists of many different business models, as different value propositions
will exist, and value can be created and captured in several ways.